How to Post Cash Receipts

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Posting cash receipts is an important part of business cash management.
Posting cash receipts is an important part of business cash management. (Image: stack of cash image by jimcox40 from <a href='http://www.fotolia.com'>Fotolia.com</a>)

The bulk of a business’ cash receipts represent cash collections for sales of goods or services or payments on accounts receivable. All cash receipts should be deposited in the business operating account as soon as possible and accounted for in the accounting general ledger after you make the deposit. The posting methodology differs depending on whether the receipt is for a current sale or a collection on a customer account.

Things You'll Need

  • Deposit slip
  • General ledger

Accounts Receivable Receipts

Prepare the deposit slip for the bank by listing the individual accounts receivable receipts by customer name and/or account number. Identifying the customer directly on the deposit slip simplifies the process of posting the receipts to the customer’s account.

Reduce each customer’s account balance in your accounts receivable tracking system by the amount of cash collected.

Increase the operating general ledger account by the total amount of the cash receipts deposited.

Decrease the accounts receivable general ledger account by the total amount of the cash receipts deposited.

Sales Receipts

Prepare the deposit slip for the bank by listing the individual sales types and the total amount of cash associated with each sales type. For example, you may list purse sales, shoe sales and clothing sales, along with the total amount of cash applicable to each sales item type. Identifying the sales type directly on the deposit slip simplifies the process of posting the receipts to the accounting general ledger.

Increase the operating general ledger account by the total amount of the cash receipts deposited.

Increase the individual sales revenue accounts by the amount of cash receipts deposited for each type of item sold.

Tips & Warnings

  • If you are not certain how to post cash receipts, hire an accounting professional to assist you. If you must maintain cash at your business overnight, invest in a quality safe for storing cash.

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References

  • &ldquo;Principles of Accounting&rdquo;; A. Douglas Hillman, Richard F. Kochanek, Corine T. Norgaard; 1991
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