hey could someone plz plz help me. it'll only take a sec....
say if u got a whole lot of transactions for a month, eg u received cash for heaps of things.....
would u add that into bank??(in the general ledger). or would that be added into a/c receivable??
or both??
To determine whether to add cash received for various transactions into the bank account or accounts receivable, you need to understand the purpose and nature of each account.
The bank account in the general ledger represents the actual bank balance of a company. You would typically record cash deposits made into the bank account to reflect the increase in your available cash.
On the other hand, accounts receivable (A/R) represents the amount owed to your company by your customers for goods or services that have been provided on credit. A/R is an asset account that records the receivables owed to you.
Now, based on the scenario you provided, if you received cash for several transactions, it would indicate that you received immediate payment from your customers. In this case, you would typically record the cash received directly into the bank account in the general ledger since the payment was made in cash immediately.
However, if some of the transactions involved extending credit to customers, meaning they will pay you at a later date, then you would record these transactions as accounts receivable in addition to recording the cash received in the bank account. This way, you can track the outstanding payments and reconcile them when received.
In summary, cash received for transactions should generally be recorded in the bank account in the general ledger. However, if any transactions involve extending credit to customers, you would record the cash received in the bank account and also create accounts receivable to track the outstanding payments.