Chapter 9 Recording Receipts and Payments

Jul 17, 2026

Uploaded by Violet

Chapter 9 explains how businesses record receipts and payments within accounting systems, emphasizing accurate treatment of money received from customers. It distinguishes payments from credit customers—recorded in both the nominal ledger and the customer receivables ledger—from receipts from customers without credit accounts, treated as cash sales requiring separate recording. The chapter also details checking received amounts against supporting documents using three receipt totals, plus the preparation of remittance lists that compile receipt-by-receipt details for entry into the cash book, including practical examples and batching guidance.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages20

Reading Time50 min

AccessFree to download

Chapter 9 RECORDING RECEIPTSAND PAYMENTS When payments are received from customers, the money has to be banked. The procedures for banking money were explained in an earlier chapter. In addition, a record of the receipts has to be made in the accounting system. The same is true also for payments made by the business. This chapter explains how receipts and payments are recorded. It focuses on the syllabus areas recording payments and monies received and authorising and making payments. | CONTENTS
1 Recording payments and monies received
2 The cash book
3 Manual nominal (general) ledger and receivables ledger
4 Posting receipts and payments from the cash book to the main ledger
5 Computerised records
6 Authorising and making payments | | --- | | LEARNING OUTCOMES
At the end of this chapter, you should be able to:
identify the documentation accompanying payments and receipts recognise the importance of accurately recording all payments and receipts identify the main ways to ensure that only authorised payments are made
record payments and receipts in the cash book, nominal (general) ledger, payablesand receivables ledger (manual or computerised) . | 1 RECORDING PAYMENTS AND MONIES RECEIVED 1.1 RECEIPTS FROM CREDIT CUSTOMERS AND FROM CUSTOMERS WITHOUT CREDIT ACCOUNTS Businesses receive money from credit customers who are paying invoices and from customers who do not have a credit account. From an accounting perspective, there isan important difference between receipts from credit customers and receipts from customers without a credit account. • Receipts from credit customers have to be recorded, not just in the nominal (general) ledger, but also in the individual account of the customer in the receivables ledger, so that the account is kept up to date. • Receipts from customers without a credit account are treated as cash sales. These receipts might come through takings in a cash register or through orders by post, telephone or e-mail, where payment is by cheque or credit card. Credit sales have already been recorded in the main ledger. When a credit customer eventually pays, the accounting records have to be updated to show that the customer has paid the money owed. Cash sales have not been recorded in the main ledger yet, and when money is received for cash sales, both the sale and the receipt have to be recorded. 1.2 CHECKING RECEIPTS AGAINST RELEVANT SUPPORTING INFORMATION When a business receives money for cash sales, the amount received has to be checked to make sure that all the money is there. The total value of receipts in notes and coins, cheques, and credit and debit cards should be calculated separately, to get three separate totals. The total value of receipts by cheque and by credit and debit cards is found by going through the cheques and credit/debit card vouchers one by one and adding up their total value. Some calculators produce a printed list of the individual cheque or credit/deb

Jul 17, 2026

Uploaded by Violet