FLOWCHART OF CASH RECEIPT SYSTEM

Mail Room Cash Receipts

Customer

Check
Check
Remittance List
Remittance
Advice

Process
Reconcile Cash
Checks with Receipt
RA and Cash
Prepare Receipts
Remittance Journal
List
Deposit Slip
Deposit Slip

Remittance List Deposit Slip

Remittance List

Remittance
List
Check

Remittance List
Check

Remittance
Advice

File

Bank
sh Receipts Accounts Receivable General Ledger

Check Remittance List Account

Summary
Remittance
ance List Advice Journal
Voucher

ocess Update
Cash AR Sub Update
eceipt Ledger General
Cash Ledger
Receipts AR Sub
Journal Ledger

Journal Account Account

Voucher Remittance List Summary Summary
Remittance
Advice Journal
Voucher

File File

Bank
 General Ledger Controller

Bank

Remittance List

al
er

Deposit Slip

date
neral
dger
General Account
Ledger Summary

Journal
Voucher
nal
her

Reconcile Deposit Slip

from Bank with Batch
Totals from Accounts
Receivable and Cash
Receipts and
Remittance List
 Cash Receipts Journal
Date Account Credited Ref Explanation Cash Dr. Sales Discount Dr. Accounts Receivable Cr.

The cash receipts journal is that type of accounting journal which is only used to record all receipts of cash during an accou
works on the golden rule of accounting – debit what comes in and credits what goes out.

Credit Sales are not at all recorded in this accounting journal because there isn’t any cash collected in those credit sales tr
sales work on the cash basis of accounting and credit sales on the accrual basis of accounting.

Explanation of Columns Used in Cash Receipts Journal

Date (Column 1): The date on which the cash is received is entered in the date column.
Account Credited (Column 2): This is the account name which is credited as a result of the receipt of cash in the books of a
Ref (Column 3): The reference column is used to enter the internal reference number of the account to which the journal e
Explanation (Column 4): The explanation or narration of the cash receipt is briefly explained in this column.
Cash Dr(Column 5): In this column, the amount of cash received is entered. The cash account in general ledger account i
amount coming in this total.
Sales Discount Dr(Column 6): Sellers allow a discount to buyers that make payment within credit period allowed to
amount of discount allowed to buyers is entered in this column.
Accounts Receivable Cr (Column 7): When a credit customer/buyer makes the payment, his account is credited in acc
ledger. The amount by which a customer’s/buyer’s account is credited is filled in this column.
Sales Cr (Column 8): This column is used to record cash sales. Every time a cash sale is made to a customer, the amount rec
in this particular column
Other Accounts Cr (Column 9): This column is used to record the receipt of cash from other sources which include the re
interest, rent and the sale of fixed assets, etc.
Other Accounts Cr (Column 9): This column is used to record the receipt of cash from other sources which include the re
interest, rent and the sale of fixed assets, etc.
 Sales Cr. Other Accounts Cr.

ipts of cash during an accounting period and

ected in those credit sales transactions. Cash

eipt of cash in the books of accounts.

count to which the journal entry belongs.
this column.
t in general ledger account is debited by the

in credit period allowed to them. The total

s account is credited in accounts receivable

o a customer, the amount received is entered

sources which include the receipt of cash for

sources which include the receipt of cash for
 Deposit Slip
Date Cash
Name Checks
Account Number

(Bank's Name)
(Bank's Address)
Subtotal
Less Cash
Total

The clerk fills out a bank deposit slip with the total amount of the day's receipts and
sends it to the bank with the checks. The bank teller validates the deposit slip and
returns it to the company for reconciliation after the funds are deposited. The cashier
enters the checks into the cash receipts journal and sends them to the bank with two
copies of the deposit slip. The cash receipts clerk prepares the deposit slips and
reconciles the checks and remittance list. The clerk creates a journal voucher record
of total cash received via terminal.

Steps on How to Fill Out a Bank Deposit Slip:

1. Provide personal information, including your name and your account number.
2. Fill in additional details such as the date.
3. If you are cashing the check or any part of the check, it is also required you sign
the signature line.
4. List the cash amount of your deposit, if any. This is the total amount of currency
(paper bills and coins) that you’ve brought for depositing into your account. You’ll
notice separate boxes for each entry. The box on the far right is for the decimal
(or “cents”) portion, and the next box to the left is for the full dollar amount. If
you don’t have any checks to deposit, leave this section blank.
5. List checks individually, including the check number and amount of each check. 
Each individual check gets its own line. There’s space for you to enter the check
number next to the dollar amount of each check, which helps you and your bank
keep track of each item.  (If you need additional room or have several checks, you
can continue this on the section on the back of the slip).  If you don’t have any
cash to deposit, leave this section blank.
6. If you are depositing money but also would like some of the cashback, list the
amount of cashback you want to receive in the Less Cash Received section.
7. Add up deposits for a subtotal. This is the total amount of cash and checks that
you want to deposit.
 ACCOUNT NO. ACCOUNT NAME CHECK NO.

DATE:

PAY TO
THE
ORDER
OF ₱

PESOS

(Bank's Name)
(Bank's Address)

The mail room clerk sorting checks and remittance advices into a remittance list. The mail room clerk feeds batches
envelopes into a machine, which opens them and separates the contents into remittance advices and checks autom
cash receipts department receives these checks as well as a copy of the remittance list. The system checks that the
the remittance advices and checks are equal and that the checks are signed. The cash receipts clerk prepares the
and reconciles the checks and remittance list.
 CHECK NO.

mail room clerk feeds batches of unopened

ance advices and checks automatically. The
st. The system checks that the amounts on
sh receipts clerk prepares the deposit slips
st.
 Send to: (Name of the Company) Page No.
(Address)
(Phone No.)

Remittance Advice:
Date Customer Amount PdCheck No.

Please Return the upper portion with your payment - Thank you

To: (Name)
(Address)
(Phone Number)
Due DateCustomer No.
Amount Due

Date Invoice Number Description Amount Due

Previous Bal.
Payments
Sales
Late Fees
Tax
Ending Bal.

A cash receipts employee checks the checks for accuracy and completeness against the prelist.
This identifies any checks that may have been lost or misdirected between the mail room and
this function. The employee records the check in the cash receipts journal after reconciling the
prelist to the checks. The cash receipts journal records all cash receipts transactions, including
cash sales, miscellaneous cash receipts, and cash received on account. It's worth noting that
each customer check is listed as a separate line item.
cash sales, miscellaneous cash receipts, and cash received on account. It's worth noting that
each customer check is listed as a separate line item.
 he prelist.
oom and
nciling the
including
ting that
ting that