ENTRY NO. A–1, GENERAL CASH IS ADJUSTED FOR UNDEPOSITED RECEIPTS - 10600
Nature of Transaction:
The General Cash account is adjusted for undeposited receipts as of June 30 so the actual amount of general cash will be shown in the department’s centralized State Treasury (CTS) account with the State Treasurer. (This entry is made as of June 30 and reversed as of July 1.)
Journal Entry for General Ledger Accounts:
Debit:
1190 Cash on Hand
Credit:
1110 General Cash
Source Document:
Analysis of General Cash Receipts Register at June 30.
Explanation:
During the fiscal year Account No. 1110, General Cash, shows all cash receipts deposited and to be deposited in the General Cash account. This adjusting entry is made in the General Ledger as of June 30 each year to reduce, for year-end financial report purposes, the balance of the General Cash account to the cash (including deposits in transit) in the department’s CTS account with the State Treasurer.
The General Cash Receipts Register will be analyzed to determine the amount of general cash received by June 30 but not deposited as of that date.