What Are Cash Receipts?

A printed or written document which provides the records of cash sales referred as Cash Receipt.

In cash receipt following are listed:

• Number of item purchased
• The date at which transaction made
• Amount of the sale (in dollars)
• The amount sales tax

Cash receipt can be created by several ways. Like

• Written by hand
• In a printed form by using computer
• Cash register

Purpose of cash receipts for the buyer:

A business transacts with other business, purchases their products and receives a cash price from it for a certain purposes.

• Cash receipt keeps log or a record
• It acts as an accounting book
• In it all items that are purchased written.
• The amount and type of items are mentioned in it.

Cash receipt proves useful for the purchaser as a businessman don’t record when he deals. Later when he needs a proper record for compiling all details then cash receipt helps him to see accounts.

Purpose of cash receipt for the seller:

Sellers keep the copies of cash receipts in the form of:

• Cash register logs
• Database copies generated by computer
• Carbon copies of hand written receipts

These help them in many ways. A seller’s get benefited from cash receipt as:

• Cash receipt is a record of transaction.
• It reports business income.
• During inspection cash receipt is used for verification.
• Seller keeps file of cash receipts so he can check any thing about transaction any time.

Managing cash receipts:

Managing the cash receipts are very important so, you can use them easily when you want. After filling receipts store them. For this follow these steps:

• Arrange receipts chronologically ( by date and time)
• Represent the folder by days, weeks or month in which your are storing the receipts
• Arrange according to the amount of cash
• Keep cash receipts of same manner together in separate folder
• Use receipts that you have been arranged well, while compiling all data.
• Keep record of last five years by storing cash receipts.

Petty cash fund:

Petty cash is a store of money which an organization keeps for spending on small items.

Mostly purchases are come out by petty cashes that a business makes. These are saved in cash boxes and are used when funds decrease. To keep a record of these petty cash, receipt is also needed. So along with petty cash box keep petty cash list to note

•  The date
•  Amount of transaction.
• Money used/spend.
• Remaining fund.

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