Cash receipts are prepared for cash, check and credit card transactions and are an important tool to protect people who receive cash and people who pay it, by documenting transactions. They also provide the basis for summarizing the day’s activities and updating general ledger records.
There are several types of cash receipts. Books of cash receipts are available in duplicate and triplicate; you can program your computer to print cash receipts when a transaction occurs; you can use cash register receipts that differentiate between cash, check and credit card transactions; or you can hand-write cash receipts.
Items you will need
Book of cash receipts in duplicate
Computer document formatted for cash receipts
Cash register receipt
During the Day
Record each transaction on a cash receipt, as it represents income in the form of sales, an expense recovery or a deposit amount.
Calculate sales taxes due, if any, and add to the transaction total.
Add the cash transaction plus the sales tax to arrive at the total due from the customer. Receive cash, provide change and place cash received in a secure location.
Provide a copy of the cash receipt to the customer and keep a copy for your records.
End of Day
Add together the cash receipts prepared during the day, providing separate totals for sales, taxes and total cash received.
Count the cash and agree to the total cash received figure.
Prepare a general ledger journal entry for the sales, taxes and cash received amounts. Pass the journal entry to your supervisor for review, approval and posting to the general ledger.
Prepare a bank deposit slip for the total of cash received, less an amount for working cash that you need for the following morning.
Bundle the bank deposit slip and deposit cash together, bundle working cash together, and place both bundles in a secure location such as a safe, locking file cabinet or vault.
Initial each cash receipt, bank deposit slip and general ledger entry that you prepare to indicate your accountability for the transaction. To reduce the potential for fraud, accounting departments should establish segregation of duties relating to cash- handling procedures. In other words, no one person should receive cash, prepare daily summaries, record its receipt in ledgers and deposit cash.
Always keep the cash that you are responsible for under lock and key so that no one else can access it and accuse you of stealing or misplacing it.