Cash receipts journal

By: Rashid Javed | Updated on: October 21st, 2021

The cash receipts journal manages all cash inflows of a business organization. In other words, this journal is used to record all cash coming into the business. For recording all cash outflows, another journal known as cash disbursements journal or cash payments journal is used.

For making entries in a cash receipts journal, all inflows of cash are can be divided into the following three categories:

  • Receipt of cash from cash sales
  • Receipt of cash from credit customers or receivables and
  • Receipt of cash from other sources


A cash receipts journal usually looks like the following:

Explanation of the columns used in cash receipts journal

The information in ten columns shown in above format of cash receipts journal is entered as follows:

  1. Date: The date at which the cash is received is entered in date column.
  2. Account credited: The account credited column is used to enter the title or name of the account that is credited in ledger as a result of cash inflow. For every inflow of cash, one or more accounts are essentially credited in accounts receivable subsidiary ledger or in general ledger or in both.
  3. Post reference: The post reference column is used to enter the account number of subsidiary or general ledger account to which the entry belongs.
  4. Explanation: The explanation or reason of the cash inflow is briefly explained in this column.
  5. Cash: In cash column the amount of cash received is entered. The cash account in general ledger is debited by the total of this column.
  6. Sales discount: Sellers allow discount to customers that make payment within discount period. The amount of discount allowed to customers is entered in sales discount column. The sales account maintained in general ledger is debited by the total of this column.
  7. Accounts receivable: When a credit customer makes the payment, his account is credited in accounts receivable subsidiary ledger. The amount by which a customer’s account is credited is entered in this column.
  8. Sales: This column is used to record cash sales. Every time a cash sale is made, the amount received is entered in this sales column
  9. Other accounts: This column is used to record the receipt of cash from sources other than cash sales or credit customers. Examples include the receipt of cash for interest, rent and the sale of old assets etc.
  10. Cost of goods sold/inventory: In cash receipt journal, this column is used to record the cost of merchandise sold for cash. This column is also found in sales journal where it is used to enter the cost of goods sold on credit. The total of this column is debited to cost of goods sold account and credited to inventory account in general ledger.


The following example illustrates how a cash receipt journal is written and how entries from this journal are posted to relevant subsidiary and general ledger accounts.

18 Comments on Cash receipts journal
  1. Candy

    I’m very happy with the information I got

  2. Andreas Simbandi

    The information is very helpful

  3. Michael Kyalema


  4. Ajay

    Hi, I’m glad this tool. but I hope there is a sample of very basic regarding CASH RECEIPT AND CASH DISBURSMENT for those are not accounting student but it so happened had small business and for them to understand easily.
    thank you in advance.

  5. Jericho

    This is very helpful!

  6. renny monama

    i think after going through your information, i will pass.

    Thank you

  7. mike

    Received a cheque from D. Lingo for R 18 879.06 (No discount) – Payment on account. (Balance owing at the beginning of the month: R 8 012.00). How do I record this in my Cash Receipts Journal?

  8. Ivan JAFETH

    This information is very useful to me because I did not understand this accounting process of cash receipt so I’m pretty sure after going through this I will understand more abuot it. thank you very much.

  9. Ivan JAFETH

    How do i calculate the cash receipt journal in columns as shown in the above given example of calculating cash receipt journal

  10. Ngwabeni Sanelisekile

    This is Very Helpful

  11. Cornelia idor

    Help me witty Accounting assignment about transactions and journals

  12. Norah

    Very helpful thank very much


    How can I calculate it to get the Cash At Bank… please I need help…

  14. John gahamo

    very helpful to me.. thankyou very much.

  15. Bongekile

    I love this information because it help me to understand

  16. sphokuhle

    thanks. It helps

  17. Vukona

    Thank I appreciate your help👄👄👅

Leave a comment