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Subsequently on a regular (usually daily) basis, the line items in the cash journal are used to update the subsidiary ledgers. Generally most cash receipts are from credit sale customers, and the subsidiary ledger updated is the accounts receivable ledger.…

All cash transactions made during an accounting period are documented in a cash receipts journal, which is set up as a subsidiary of the general ledger. Chronological entries are made in the cash receipts journal and the balance is continuously…

Credit sales are handled using the accrual basis of accounting, while cash transactions are handled using the cash basis. The credit sales which the busy ones make are not recorded in the cash journal as no cash is received while…