Cash Receipts Journal - What is Cash Receipts Journal?

[@melomane6460]

Hey, I really wanna know if the cash flow and net cash receipts are the same? I am very confused, really.

[@abdihassan92]

thank you for the explanations but first I would like to know what is the cash receipt, how and when can it be used please ?

[@AccountingInstruction]

Within the context of the cash receipts journal a cash receipt is when the business receives cash, cash coming into the business, cash inflows. The majority of transactions that have cash coming into the business will be sales for cash and collections of accounts receivable. For example, we could make a sale and receive cash at the same point in time, or we may make a sale, bill the client, and receive payment sometime in the future. If we are doing our bookkeeping by hand, it may take too long to record every cash receipt with a journal entry and post every journal entry to the general ledger. It may be faster to use a special journal, a cash receipts journal, where we can accumulate all transactions that involve the company receiving cash and then post this information to the general ledger in one lump sum journal entry periodically, daily, weekly, or monthly. Please let us know if this helps or not.

[@moheuddin_sehab]

@@AccountingInstruction thanks for explaining why cash journal can be efficient