Definition

Cash receipts journal

Cash receipts journal refers to a special journal that records all cash received. The most common types of cash receipts are cash sales of merchandise and collections of accounts receivable. Many other possibilities exist, such as receipt of money from bank loans and cash proceeds from disposal of equipment. A one-or two-column cash receipts journal would not have space enough for all possible cash receipt transactions. Therefore, companies use a multiple-column cash receipts journal.

Share it:  Cite

More from this Section

  • Consistency principle
    Consistency principle dictates that a company uses the same accounting principles and ...
  • Long-range planning
    Long-range planning is a formalized process of selecting strategies to achieve long-term ...
  • Management Auditing
    William P. Leonard defines it: “Management Auditing is a comprehensive ...
  • Outstanding assets
    Outstanding assets are those assets over which the company has no immediate claim but ...
  • Controllable cost
    All costs and revenues are controllable at some level of responsibility within a company. ...