The Cash Receipts Journal Will Be Used To Record For What?

What is Cash Receipts Journal In Accounting?

The Cash Receipts Journal will be used for recording Cash Receipts and Cash Sales Transactions and it is the main purpose of Cash Receipts Journal for which it is prepared. When goods sold or services rendered to customers or fixed assets are sold in the market or cash received from customers, then the seller receives the cash against selling goods, services or fixed assets,  then we debited Cash Receipts on the Cash Receipts Journal.

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Cash Receipts is a Special Journal as it records only cash receipts transactions.

The Journal Entry for Cash Receipts is recorded when we received cash from customers against sales on account or when we made cash sales. In cash collections, we debited cash account and credited the Accounts Receivable account and for cash sales, we debit cash account and credit sales account in cash receipts journal.

So, cash receipts journal is used only for recording cash receipts transactions