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. As can be seen in the above example, 550 is posted to the ledger account […]
Monthly Archives: January 2021
The purchasing of new equipment shows that the company has the cash to invest in inventory for growth. Finally, the amount of cash available to the company should ease investors’ minds regarding the notes payable, as cash is plentiful to cover that future loan expense. Changes in cash from financing are “cash in” when capital […]