When you pay any amount to your vendors or clients then this amount will be reduced from your cash account. cash flow of this type of transaction is important because you should control cash out from your business. However cash book entry of cash payment in bookkeeping is very important for auditing. here we will show you how to record cash payment in iGreen accounting software.
Cash Book Entry, Cash Payment
When you pay any amount of cash to your clients as vendors or customers then a cash payment has been occurred. if you would like to save it in journal entry then Client account (Account Payable) will be Debit and Cash account will be Credit.
You paid 2500$ to Mr. Jack Smith, then its double-entry in journal book will be as below:
Cash Account Credit (2500$)
Account Payable (Mr. Jack Smith) Debit (2500$)
Record Cash Payment in iGreen Accounting
Please run iGreen accounting and in main screen click on “Cash Payment”
then you will see a cash payment form as below
Quick help of some of data boxes:
- Voucher no: this is a unique number that will be generate by iGreen accounting and you could not to change it
- Reference no: it is your voucher no and you can write any number for your reference in your real vouchers
- Date: It is date of receipt cash not date of entry!
iGreen will saved this voucher on Cash on Hand account as default but your can change it to other cash account easily by click on combo box under comment textbox as below:
Note: when you use Cash payment form in iGreen , please only enter cash paid amount and you should not enter Credit account (Cash account) in the rows of table, iGreen will be record a double-entry automatically after you click on Save button
Example of Paying 2500$ cash to Mr. Jack Smith