Cash receipt definition
/What is a Cash Receipt?
A cash receipt is a printed statement of the amount of cash received in a cash sale transaction. A copy of this receipt is given to the customer , while another copy is retained for accounting purposes. A cash receipt contains the following information:
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The date of the transaction
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A unique number that identifies the document
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The name of the payer
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The amount of cash received
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The payment method (such as by cash or check )
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The signature of the receiving person
Accounting for a Cash Receipt
The receipt of cash triggers an accounting entry, so that the transaction is recorded in your accounting records. The standard cash receipt journal entry for a sale transaction is a debit to the cash account and a credit to the sales account. Or, if the cash receipt is related to the sale of a company asset, such as machinery, then the credit part of the journal entry is an offset to the relevant asset account.