We cannot resort to always use General Journal because we issued an official receipt for a cash received. How do you show the Cash Receipt? The business has a cash receipt of 500 from a customer relating to a sales invoice already posted to the sales ledger and accounts receivable (trade debtors) control account. You pass the entry: Creditor's Account …Dr. Whenever cash is received, debit Cash. Hello Friends Can anyone tell me the account treatment for excess payment received from a debtor The journal entry to be passed for the same Ex Receivable from Debotr A is Rs 5000 But actual amount received is Rs 5500 with no intention of returning the excess Rs 500 - Audit Stat Audit Let's take an example to learn about passing receipt entries in Tally ERP9ExampleSuppose Rs 10000 Cash received from RK Trading Company (a Sundry Debtor) on 1 JuneEntry will beCash Dr 10000To RK Trading Company 10000This is a Receipt Voucher Entry in Tally as Cash is DebitedHow to Pass EntryAccoun We usually receive cash from customer that is not payment for service or item received, but for an advancement made by our Administration. The following journal entry is made when cash is received from recovered or reinstated account: For more clarification of the procedure, consider the three journal entries included in the following example: Example: The Fine company writes off a $450 account receivable from Weak trader on March 12, 2015. When cash is collected on account of a receivable that was previously written-off, it is recorded by reversing the write-off and debiting cash or bank. The interest portion got accrued in accounting year ending in 2018 but not received. This credit to the accounts receivable asset account reduces the accounts receivable balance. The following journal entries shall be passed: ILLUSTRATION. Let's assume that a company receives $500 on June 3, 2019 from a customer who was given 30 days in which to pay. Customers may either pay cash at the point of sale or deposit the cash to your bank account. The total of sales column is posted as a credit to the sales account in general ledger. The following journal entry shall be passed: Cash/Bank A/c Dr. To Bad Debts Recovered A/c The amounts in the accounts receivable (A/C R.A) column represent cash received from debtors. The Effect of a Cash Receipt in a General Ledger. Solution: In the present case, the employee was not able to pay the loan principal amount as well as the interest portion on the due date. To Bank Account When your cheque is dishonoured, you reverse the transaction with the following entry: Bank Account …Dr To Creditor's Account When you write a cheque, its for payment of goods. The exact journal entries that need to be passed however, depend on how the write-off of the receivable was recorded in the first place. The entry would be debit cash and credit A/P - Person (who made the advance). The procedure of posting the cash receipt journal is described below: The total of cash column is posted as a debit to the cash account in general ledger. Journal Entry 2 shows a $1,000 debit to cash, which is the $1,000 increase in the cash account that occurs because the customer has just paid you $1,000. Analyze the treatment of the interest received by the company and pass the necessary journal entries in the books of the bank. Whenever cash is paid out, credit Cash. 8 (Recording bad-debts) Journalis the following transaction (IX) Bad Debts Recovered: It may happen that an amount which is written off as bad debt in the previous year(s) is subsequently recovered. A cash receipt is the amount of money that your business receives from a cash sale, advance payment or debtor’s remittance. Journal Entry 2 also shows a $1,000 credit to accounts receivable. With the knowledge of what happens to the Cash account, the journal entry to record the debits and credits is easier. 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