Cash received Journal Entry – Accounts

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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