Cash Account

Hi Ellis
Your question is about the cash account.
Sorry for the previous email. I miss-understood.

To try to answer your question properly. do you mean a cash Account in the chart of account. Like this.

chart of account cash account

and here is an entry that is affecting the cash account.

Sales journal cash payment


Ok, if this is what is happening? A transaction bas been posted to cash Account.

Credit Sales and Debit Cash Account.

Question is: did the money received from the customer be deposited into the actual company bank account? if it did.

Than the entry you need to make is:

Credit Cash Account and Debit Bank Account.

if the cash received by the customer did not end up as a deposit into the bank account. than you need to find out what happened to it.

Maybe the cash was used to purchase shop supplies or office supplies. you need to investigate what happened to the cash and make appropriate entry.

Credit Cash Account and Debit supplies or office or…. another expense account.

Hope this helped