Cash received Journal Entry
Cash received Journal Entry is passed, when a business or person, receives cash from the following : –
- Debtor
- Sale of Asset or Goods for Cash
- Withdrawal of funds from the Bank
Cash received Journal Entry – Debtor
Question 1 : –
What would be the Journal Entry for receipt of Rs. 10,000 in Cash from a Debtor, Ram ?
Explanation:
Since Ram is a Debtor, on receipt of cash from Ram, Ram’s A/c would be credited, as there is a decrease in Debtors which is an asset . According to the Rules of Debit and Credit, when an asset is decreased, the asset account is credited .
Further , receipt of money from Ram in Cash , results in increase of Cash, which is an Asset. When an asset is increased, the asset account is debited according to the Rules of Debit and Credit. So Cash A/c would be debited.
Hence the entry would be : –
Cash A/c Dr. 10,000
ToRam’s A/c 10,000
Cash received Journal Entry – Sales of goods
Question 2 : –
What would be the Journal Entry for Sale of goods amounting to Rs. 10,000 in Cash ?
Explanation:
Since Sale of goods is an income, so, Sales A/c would be credited, because according to the Rules of Debit and Credit, an income A/c is credited .
Further , receipt of money for Sales of goods in Cash , results in increase of Cash, which is an Asset. When an asset is increased, the asset account is debited according to the Rules of Debit and Credit. So Cash A/c would be debited, as a increase in an Asset account is debited.
Hence the entry would be : –
Cash A/c Dr. 10,000
To Sales A/c 10,000
Cash received Journal Entry – Sale of Asset in Cash
Question 3 :
What would be the Journal Entry for Sale of Furniture amounting to Rs. 10,000 in Cash ?
Explanation:
Since Sale of Furniture results in an decrease in the value of furniture, Furniture A/c would be credited, because according to the Rules of Debit and Credit, an decrease in an asset A/c is credited .
Further , on Sales of Furniture in Cash , there is an in increase of Cash, which is an Asset. When an asset is increase, the asset account is debited according to the Rules of Debit and Credit. . So Cash A/c would debited.
Hence the correct entry is:
Cash A/c Dr. 10,000
To Furniture A/c 10,000
Cash received Journal Entry – Withdrawal from Bank
Question 4 : –
What would be the Journal Entry for withdrawal of Rs. 10,000 in Cash from Bank ?
Explanation:
Since Bank is an Asset, on receipt of cash from Bank,Bank’s A/c would be credited, as there is a decrease inBank Balance, which is an asset . According to the Rules of Debit and Credit, when an asset is decreased, the asset account is credited .
Further , receipt of money from Bank in Cash , it results in increase of Cash, which is an Asset. When an asset is increased, the asset account is debited according to the Rules of Debit and Credit. So Cash A/c would be debited.
Hence the entry would be : –
Cash A/c Dr. 10,000
To Bank A/c 10,000
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1 thought on “Cash received Journal Entry – Accounts”
Explanations good.very easy
Many thanks. I am very new . Just learning.