Journal Entry and Ledger Posting for Cash Receipts from Sundry Debtors.

Sundry Debtors are those persons, to whom Goods or Services are sold on Credit basis.

Payment against that Goods or Services sold are received from Debtors after the date of Sale Proceeds.

Payments are received through Cash or Bank Account.

Let's discuss when payments are received through Cash from Sundry Debtors.

When payments are received through Cash from Debtors,

• Cash Account shows Debit effect and,

• Sundry Debtors Account shows Credit effect.

Journal Entry

Ledger Posting

In Cash Account

In Sundry Debtors Account.

Example : 

In the Books of M/s.Swastik Store, amount received from Arjun Singh(Sundry Debtor) vide Cash for ₹8,750/- on dt.17/09/2023 as per Money Receipt No.1011.

Pass necessary Journal Entry and post them into their respective Ledger Accounts for the above transaction.

In this transaction.

Debit Ledger is :

• Cash Account

Credit Ledger is :

• Arjun Singh Account.

Journal Entry

Ledger Posting

In Cash Account.

In Arjun Singh Account.