●Which of the following transactions is not recorded in the cash receipts journal?
(a) expensing prepaid rent
(b) receipt of customer payments
(c) borrowing money from a bank
(d) sale of equipment for cash
Answers
Answer:
I think so option (d)....
Answer:
The transaction that is not recorded in the cash receipts journal is (c) borrowing money from a bank
Explanation:
The cash receipts journal is used to record all transactions where cash is received, such as customer payments, cash sales, and other sources of cash inflow. However, borrowing money from a bank does not result in cash receipts but rather an increase in liabilities, which is recorded in the general journal.
Expensing prepaid rent is not recorded in the cash receipts journal as it does not involve any cash inflow. Instead, it is recorded as an expense in the general journal as it reduces the company's assets.
Receipt of customer payments is recorded in the cash receipts journal as it involves cash inflow from customers. It is important to keep track of all incoming cash from customers to ensu re that the company is receiving payments in a timely manner and to monitor outstanding balances.
Sale of equipment for cash is recorded in the cash receipts journal as it involves cash inflow from the sale of equipment. This transaction is important to track as it affects the company's cash balance and can impact future financial decisions.
In conclusion, the cash receipts journal is used to record all transactions involving cash inflows, and borro wing money from a bank does not involve cash inflows, so it is not recorded in the cash receipts journal.
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