ENTRY NO. 7 – [GENERAL CASH IS RECEIVED] - 10507-JUN-2020

This entry is made to record general cash received for deposit in the department’s general checking account maintained with the State Treasurer’s Office.

Information:

Receipts consist of abatements, reimbursements and revenue not previously billed; collections applicable to accounts receivable for items previously billed; and items whose identity or accounting cannot readily be determined.

Accounts Receivable—Revenue and Accounts Receivable—Other are deferred when recorded. They must, therefore, be applied as revenue when collected.

Reimbursements may be of one of the following categories depending upon specific laws governing the accounting of such transactions: (1) receipts which accrue to the year in which the transaction occurred, (2) receipts which accrue to the year in which cash is collected by the department, and (3) receipts which accrue to the year in which cash is ordered into the treasury. Transactions in the third category, when collected are credited to a suspense account (Uncleared Collections) pending receipt of notice from the State Controller's Office that cash has been ordered into the treasury, see SAM section 10510. Items in category 1 (if not billed or accrued previously) and in category 2 are applied at the time cash is collected by the department.

 

The General Cash Receipts Register will show both the date of receipt and the date of deposit of all cash receipts. All cash collections must be deposited in approved depositories, see SAM section 8031, and are later either (1) refunded if determined to be unacceptable or

(2) remitted to the State Treasury at least once each month. Current collections are used also to satisfy bank demands for reimbursement for dishonored checks until ultimate collection is made from the drawers or relief from accountability is granted.

 

Source Document:

General Cash Receipt

Register:

General Cash Receipts Register (Continued)

Debit:

1110 General Cash a/

Credit:

1311 Accounts Receivable—Abatements b/

1312 Accounts Receivable—Reimbursements c/

1313 Accounts Receivable—Revenue d/

3110 Due to Other Funds or Appropriations e/

3410 Revenue Collected in Advance f/

3420 Reimbursements Collected in Advance g/

3710 Cash Overages h/

3730 Uncleared Collections i/

8000 Revenue j/

8100 Reimbursements k/

9000 Appropriation Expenditures l/

9892 Prior-Year Revenue Adjustments m/

9893 Prior-Year Appropriation Adjustments n/

 

a/ total cash received for deposit in the General Cash account.

b/ amount of cash receipts applicable to expenditure abatements receivables (excluding collections from employees for salary overpayments).

c/ amount of cash receipts applicable to reimbursement receivables.

d/ amount of cash receipts applicable to revenue receivables.

e/ amount of cash received applicable to revenue collected for other funds earned in the current fiscal year plus cash received applicable to revenue collected for other funds but not identifiable to the fiscal year in which it was earned.

f/ amount of cash received which will be accounted as revenue of a succeeding fiscal year.

g/ amount of cash received which will be accounted as a reimbursement to a current or subsequent fiscal year's appropriation when earned.

h/ amount of cash received representing cash overages.

i/ amount of cash received for items whose identity or accounting cannot be readily determined; amount of cash received applicable to reimbursements (billed or unbilled) which, according to law, can be applied only at the time the cash is ordered into the treasury; or salary overpayments collected from employees by the department.

j/ amount of cash received applicable to revenue earned in the current fiscal year plus cash received applicable to revenue but not identifiable to the fiscal year in which it was earned.

k/ amount of cash received applicable to (1) billed reimbursements which, according to law, can be applied only at the time cash is received and (2) all unbilled reimbursements except those applicable to prior fiscal years and those that can be applied only at the time cash is ordered into the treasury.

l/ amount of cash receipts applicable to current year expenditure abatements not billed or accrued previously.

m/ amount of cash received applicable to revenue (except reimbursements) which was identified as being earned as of the preceding June 30.

n/ amount of cash received in excess of amounts accrued in prior fiscal years as expenditure abatements or reimbursements. If the amount of cash received is less than amounts accrued in prior fiscal years, Account No. 9893 will be debited.

 

Journal Entry for General Cash Received for Deferred Receivables: The Deferred Receivables entry requires a corresponding entry to record the General Cash received for revenue, reimbursement, or appropriation expenditure.

 

Debit:

1600 Provision for Deferred Receivables o/

Credit:

1315 Accounts Receivable—Dishonored Checks p/

1319 Accounts Receivable—Other q/

AND

Debit:

1110 General Cash

Credit:

8000 Revenue

8100 Reimbursements

9000 Appropriation Expenditures

 

o/ amount of cash received applicable to receivables accounted during the year on a fully- reserved basis and applied when collected to the appropriate revenue account.

p/ amount of cash received in payment of dishonored checks (unless alternate procedure is used).

q/ amount of cash received in payment of other accounts receivable.

 

Journal Entry for General Cash Lost/Received for Cash Shortages: The Cash Shortages entry requires a corresponding entry to record the General Cash lost or received for revenue, reimbursement, or appropriation expenditure.