What is a C.R.V or Cash Receipt Voucher?
A cash receipt voucher is a document which is prepared when the money is received from a customer or from a different source. The cash receipt voucher is the evidence that the money has been received from a specific customer.
We can prepare a cash receipt voucher, if one of the following forms of payments is used to pay:
- Cash
- Check
- Money Order
- Debit Card
- Electronic Transfer
- Digital Currency
How does payment received from a customer is recorded in the ledger?
Cash is increased, whereas sales or the other relevant account is decreased to balance the ledger as below. We will share two different examples for a better understanding.
Example Number One:
Debit: Bank $xxx.xx (Part of the Balance Sheet)
Credit: Sales $xxx.xx (Part of the income Statement)
_________________________________________________________
Example Number Two:
Debit to Cash by $xxx.xx (Part of the Balance Sheet)
Credit to Deferred Income by $xxx.xx (Part of the Balance Sheet)
___________________________________________________________
Generally, following information requires to prepare a cash receipt voucher:
- Date when the money was received
- Email address for contact purpose
- Complete person or the entity’s name
- Complete address
- Telephone number
What is recorded in the Cash Receipt Voucher?
- Date is mentioned when the money was received.
- The customer invoice reference is mentioned for reference.
- If, the customer invoice was earlier created to balance ledgers.
- Customer name is mentioned.
- Account is classified such as sales or deferred income.
- Amount of the payment is mentioned.
- Detailed description is mentioned.
- Bank name is mentioned where the money was deposited.
- Bank is reconciled to confirm money has been deposited in bank.
