201 Cash on Hand

Assets

Cash and Contracts

Synopsis

Account 201 is established to record the Cash receipts at the dealership.

Debits

Credits

  1. The amount of Cash received

 

  1. The amount of Cash deposited in the bank

 

Example 1

Record the payment of $375 from a wholesale parts customer on their account.

Journal: Cash Receipts

Entry:

 

Debit

Credit

Account 201

Cash on Hand

$375

 

Account 220B

Accounts receivables – Customers – Service and Parts

 

$375

Example 2

Record the receipt from customer for a down payment of $1,500 on a purchase of a vehicle.

Journal: Cash Receipts

Entry:

 

Debit

Credit

Account 201

Cash on Hand

$1,500

 

Account 220A

Accounts receivables – Customers – Vehicles

 

$1,500

Example 3

Record the income of $85 from vending machines.

Journal: Cash Receipts

Entry:

 

Debit

Credit

Account 201

Cash on Hand

$85

 

Account 905

Other Income

 

$85

Example 4

Record daily bank deposit of $1,960 for the above cash receipts.

Journal: Cash Receipts

Entry:

 

Debit

Credit

Account 202

Cash in Bank

$1,960

 

Account 201

Cash on Hand

 

$1,960

Comments

A debit balance represents undeposited receipts.

Note:

Bank deposits should be made daily.