Q:

What are cash receipt forms used for?

A:

Quick Answer

Cash receipts are used for recording sales; this type of receipt provides both the seller and the buyer with a receipt for a sale's transaction and is useful in keeping records of sales made for tax reporting purposes. Cash receipts are typically completed when a sale of products or services is made in cash.

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Full Answer

Most cash receipts include standard information. Most include the name of the business or person selling the item or items, the price of the items, the date of the transaction, and a description of the services or goods that were sold. The amount paid, including any sales tax, is also recorded on the cash receipt.

Some businesses use a cash receipts journal to keep track of cash receipts. This type of journal is a specialized accounting journal that is integrated into a business' accounting system and used for keeping track of sales of items or services rendered when customers pay for the items or services in cash. Journal entries are made by crediting sales and debiting cash to the journal. A cash receipts journal is not to be confused with a sales journal, which is a type of journal that is used for recording sales on account.

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