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.
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:
Page 12 Date Cash Dr.
