The following cash receipts journal headings have been suggested for a small service firm. List the errors you find in the headings

The following cash receipts journal headings have been suggested for a small service firm. List the errors you find in the headings.


Cash Receipts Journal Page 12
Date
Account
Credited
Post.
Ref.
Fees
Earned
Cr.
Accts.
Rec.
Cr.
Cash
Cr.
Other
Accounts
Dr.


Answer:
1. The Cash column is for debits (not credits).
2. The Other Accounts column is for credits (not debits).
3. A better order of columns would be to place the Other Accounts Cr. column to the left of the Fees Earned Cr. column.

A recommended and corrected cash receipts journal is as follows:


CASH RECEIPTS JOURNAL Page 12
Date
Account
Credited
Post.
Ref.
Other
Accounts
Cr.
Fees
Earned
Cr.
Accts.
Rec.
Cr.
Cash
Dr.