Which of the following is recorded in the cash receipts journal?

Question: Which of the following is recorded in the cash receipts journal?

If you are a business owner or an accountant, you may be familiar with the cash receipts journal. This is a special journal that records all the cash transactions that increase the cash balance of your business. For example, if you receive cash from customers, sales, interest, dividends, or any other sources, you would record them in the cash receipts journal.

The cash receipts journal has several columns to classify the cash transactions by their accounts. The most common columns are:

- Date: This is the date when the cash transaction occurred.

- Account Credited: This is the account that received the cash. It could be a customer account, a sales account, or any other income account.

- Ref.: This is the reference number that links the cash transaction to the source document, such as a receipt or an invoice.

- Cash Dr.: This is the amount of cash that increased the cash balance. It is recorded as a debit in the cash account.

- Sales Disc. Dr.: This is the amount of cash discount that was given to the customer for paying early or in full. It is recorded as a debit in the sales discount account.

- Other Accounts Dr.: This is the amount of cash that increased other asset accounts, such as accounts receivable, inventory, or fixed assets. It is recorded as a debit in the corresponding account.

- Cost of Goods Sold Dr.: This is the amount of cash that increased the cost of goods sold account. It is recorded as a debit in the cost of goods sold account.

- Sales Cr.: This is the amount of cash that increased the sales account. It is recorded as a credit in the sales account.

- Other Accounts Cr.: This is the amount of cash that increased other liability or equity accounts, such as accounts payable, wages payable, or capital. It is recorded as a credit in the corresponding account.

To summarize, the cash receipts journal records all the cash transactions that increase the cash balance of your business and classifies them by their accounts. This helps you to keep track of your cash inflows and prepare your financial statements accurately.