Lesson 53: Recording the receipt of money from debtors
You have already learnt how the receipt of cash is recorded in the Cash Receipts Journal and the posting of the CRJ to the General ledger. The receipts from Debtors are recorded in the same way, and a business that sells on credit usually has a column in the CRJ for Receipts from Debtors.
When a debtor is granted a discount for paying his/her account before the credit term, it is important to record this at the same time as the payment is received. To accommodate this, an extra column is added to the CRJ to show not only the amount received from debtors but also any discount that they have been allowed.
When a debtor is granted a discount for paying his/her account before the credit term, it is important to record this at the same time as the payment is received. To accommodate this, an extra column is added to the CRJ to show not only the amount received from debtors but also any discount that they have been allowed.