When a business receives money from its credit customers that money will be recorded in the “Sales Ledger” or “Trade Receivables” column of the business’ Cash Book. The amounts will then be posted to the credit side of the Sales Ledger Control Account in the General Ledger. As each receipt will affect the amount of money owed to the business by its customers, we will also post the receipts to the credit sides of the relevant customer accounts of the business’ Sales Ledger.
Illustration
A business’ Cash Book receipts for March is shown below:
The receipts to be posted to the Sales Ledger column are highlighted in yellow. The postings list for the above illustration is as follows.
The entries to be made in the customer accounts are shown below (the receipts are in blue). The word “receipt” has been used in these accounts but a bookkeeper might alternatively record a reference for the receipt or “Bank” if the receipt was banked or “Cash” if it was received in notes and coins.
Lastly, note that the postings to the Sales Ledger are the same whether or not the Cash Book is being used as part of the double-entry bookkeeping system.
