Cash Received From Customers Journal Entry

 

Cash received or collected from customers, debtors or accounts receivable is recorded when the company received cash from customers for goods sold to them on account or credit. This transaction is recorded in Cash Book and Sundry Debtors or Accounts Receivable Ledger’s Account.

The effect of Cash collected from customers on accounting equation is that cash account is added to asset side and accounts receivable is deducted from asset side by equal amount and accounting equation remains in balance in quantity.

The journal entry to record cash received or check received from customers is shown below:

                              Cash a/c / Bank a/c  XXX

 

                                                             Accounts Receivable a/c  XXX

 

                                    (Cash / Check or Cheque Collected From Customers)