How to Post a Cash Receipt in Accounting

Documenting and accounting for your business's income is an important part of protecting it from fraud or theft, and that's especially true when a business receives a cash payment. Cash can be easily pocketed and diverted without the paper trail that a business check or other financial instrument creates. Fortunately for business owners, posting a cash receipt in their accounting each time a cash payment is received creates a permanent record of the payment, helping to ensure that the cash is properly handled.

Instructions

1. Count the amount of cash received and verify that it matches the cash receipt issued when the payment was received.

2. Record the amount of cash received in the Cash Debit column in the Cash Receipts Journal maintained in the accounting system. Balance the transaction by posting a credit to either the Sales column, the Accounts Receivable column or another account column in use by the business.

3. Post the amount of cash received as a debit in the General Ledger of the accounting system. Offset the debit by posting a corresponding credit in the General Ledger under "Sales Credit" or "Other Accounts." If the cash payment is to be applied to Accounts Receivable, post the credit instead to the customer's account in the Accounts Receivable Ledger.

References

• San Antonio College: Accounting Review: Cash Receipts Journal
• College Cram: Cash Receipts Journal