BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The cash receipts journal is used to record all receipts of cash for any reason. Anytime money comes into the company, the cash receipts journal should be used.

Detailed explanation-2: -The cash receipts journal is that type of accounting journal that is only used to record all cash receipts during an accounting period and works on the golden rule of accounting – debit what comes in and credits what goes out. Credit sales.

Detailed explanation-3: -The cash receipts journal is the counterpart to the cash disbursement journal. It is where you record payments received by cash or check. Purchase Journal. The purchase journal differs from the cash disbursement journal because it captures information about expenses that are purchased on credit.

Detailed explanation-4: -The receipt of cash from the sale of goods, as payment on accounts receivable or from other transactions, is recorded in a cash receipts journal (Figure 7.12) with a debit to cash and a credit to the source of the cash, whether that is from sales revenue, payment on an account receivable, or some other account.

Detailed explanation-5: -Examples of special journals are the cash receipts journal, cash disbursements journal, payroll journal, purchases journal, and sales journal.