Author: Ramon B. Nosce
This Article will teach you how to manage your accounts receivable records and to keep it updated all the time. Below are guidelines and presentations of Cash Sales, Account Receivables, and Accounts Receivable Individual Ledger Account.
Transaction is an exchange of goods or services in exchange for a certain sum of money. In every transaction there are only two thing that may happen. Either goods or services is sold on cash or on account. Goods or services sold on account is called, Accounts Receivable. Cash sales and sales on account incurred for the day is recorded separately. Henceforth, it is imperative to maintain a separate account. Cash sales to record and see the sales incurred for the period and the total sales made. Either daily, monthly, quarterly or annually. In accounts receivable you need to visualized the total sales incurred on account as well as the individual balances of creditors.Your Accounting Software Store
Cash Sales
DATE I T E M S SALES INVOICE NO. AMOUNT
11/11/12 John Park # 000123 $ 150.00
11/12/12 Dave Rooth 000124 50.00
11/13/12 Angela Hunts 000125 80.00
T O T A L C A S H S A L E S...................................................................... $ 280.00
+ Detailed information are shown in this illustration above.The date of sales incurred, the name of customers or perhaps the name of company who bought, the sale invoice number issued and the amount of sales.
Accounts Receivable
DATE ITEMS DELIVERY RECEIPT NO. AMOUNT
11//11/12 Tom Tauz # 000501 $ 140.00
11/12/12 Andrew Jones #000502 50.00
11/13/12 Rebecca Gradel #000503 60.00
T O T A L A C C O U N T S R E C E I V A B L E......................................... $ 250.00
+ In this illustration above, the following are shown. The date sales on account incurred, the name of customers who bought on account, delivery receipt number used and issued, then the amount of sales on account. The illustration above shows only the the total sales on account for a certain period. Maintaining a ledger account for individual customer is a must to see their individual balances and when future accounts receivable reconciliation arises.
Individual Ledger
Tom Tauz
_________________________________________________________________________________
Date Items Debit Credit Balance Remarks
11/11/12 DR# 000501 $ 140.00 $ 140.00 Sales On Account
11/20/12 OR# 000234 $ 100.00 40.00 Partial Payment
12/11.12 OR# 000259 40.00 - Full Payment
The illustration above shows Tom Tauz ledger account. The goods sold on account to Tom Tauz was debited. The partial and full payment of Tom Taus was credited and deducted to Tom Tauz debited amount to see the accounts receivable balance. In short, To increase Tom Taus Accounts Receivable Account we Debit and to Decrease Tom Tauz Accounts Receivable Account we credit. Deducting the Debited amount from the credited amount will result to see the accounts receivable balance.
Other Task Handling Accounts Receivable
- Updating Of Accounts Receivable Ledgers
- Confirmation Of Accounts Receivable
- Execution Of Affidavit On Denied Balances
- Collection
- Billing
- Recording In The Ledger
This Article will teach you how to manage your accounts receivable records and to keep it updated all the time. Below are guidelines and presentations of Cash Sales, Account Receivables, and Accounts Receivable Individual Ledger Account.
Transaction is an exchange of goods or services in exchange for a certain sum of money. In every transaction there are only two thing that may happen. Either goods or services is sold on cash or on account. Goods or services sold on account is called, Accounts Receivable. Cash sales and sales on account incurred for the day is recorded separately. Henceforth, it is imperative to maintain a separate account. Cash sales to record and see the sales incurred for the period and the total sales made. Either daily, monthly, quarterly or annually. In accounts receivable you need to visualized the total sales incurred on account as well as the individual balances of creditors.Your Accounting Software Store
Cash Sales
DATE I T E M S SALES INVOICE NO. AMOUNT
11/11/12 John Park # 000123 $ 150.00
11/12/12 Dave Rooth 000124 50.00
11/13/12 Angela Hunts 000125 80.00
T O T A L C A S H S A L E S...................................................................... $ 280.00
+ Detailed information are shown in this illustration above.The date of sales incurred, the name of customers or perhaps the name of company who bought, the sale invoice number issued and the amount of sales.
Accounts Receivable
DATE ITEMS DELIVERY RECEIPT NO. AMOUNT
11//11/12 Tom Tauz # 000501 $ 140.00
11/12/12 Andrew Jones #000502 50.00
11/13/12 Rebecca Gradel #000503 60.00
T O T A L A C C O U N T S R E C E I V A B L E......................................... $ 250.00
+ In this illustration above, the following are shown. The date sales on account incurred, the name of customers who bought on account, delivery receipt number used and issued, then the amount of sales on account. The illustration above shows only the the total sales on account for a certain period. Maintaining a ledger account for individual customer is a must to see their individual balances and when future accounts receivable reconciliation arises.
Individual Ledger
Tom Tauz
_________________________________________________________________________________
Date Items Debit Credit Balance Remarks
11/11/12 DR# 000501 $ 140.00 $ 140.00 Sales On Account
11/20/12 OR# 000234 $ 100.00 40.00 Partial Payment
12/11.12 OR# 000259 40.00 - Full Payment
The illustration above shows Tom Tauz ledger account. The goods sold on account to Tom Tauz was debited. The partial and full payment of Tom Taus was credited and deducted to Tom Tauz debited amount to see the accounts receivable balance. In short, To increase Tom Taus Accounts Receivable Account we Debit and to Decrease Tom Tauz Accounts Receivable Account we credit. Deducting the Debited amount from the credited amount will result to see the accounts receivable balance.
Other Task Handling Accounts Receivable
- Updating Of Accounts Receivable Ledgers
- Confirmation Of Accounts Receivable
- Execution Of Affidavit On Denied Balances
- Collection
- Billing
- Recording In The Ledger
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