Receipt Register Basics and its importance in Accounting and Bookkeeping
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What is a Receipt Register? Importance of receipt register?
Receipt Register Procedure and Method- How to Maintain Receipt Register?
Author: Ckrishwa
What is a receipt register?
Receipt register is meant for recording the transactions relating to receipts in the organization. It means all the monetary receipts like cash, check, draft to the business or company should be entered in the receipt register. While entering in the receipt register all details of receipts like main head of account, sub-head of account, receipt number, from whom the amount has been received, amount received, the way of amount received whether it has been received as cash or check or draft should also be clearly entered in the receipt register.
Receipt register has to be maintained head of account wise. Every receipts in terms of cash or check or draft should be entered in the receipt register and a printed receipt should be prepared with unique serial number.
At the end of the month, monthly abstract should be drawn head of account wise for all the receipts entered in the Receipt register.
Postings have to be made in the General Ledger from the monthly abstract drawn in the receipt register.
The entire amount received and recorded in the receipt register should be remitted into the bank on the next day of the transaction. The amount thus received and entered in the receipt register should tally with the bank account.
At the time of doing bank reconciliation it should be ensured whether all the amounts recorded and received as per the receipt register has been properly remitted into the bank and find out whether any short credit or short debit has been taken place in the bank records.
