Cash Payment Receipt Template
Cash payment receipt documents that prove that a payment has been received from a particular entity. An entity can be a person, firm or organization. Different transactions can use cash payment receipt but it totally depends on type of payment. It involves transfer of cash or cash equivalency. Cash payment receipt has two copies each, the original one is given to the customer and the other is kept by the seller for accounting purpose. In other words we can say it is a piece of paper that is accepted by an organization whenever cash is received. Payment can be from anyone, for example, an investment, customer, bank etc. this cash is acknowledged when balancing the account receivable cash whenever a transaction happens. We can also say that it is a balance that increases cash in balance sheet.
This is not only called proof of any payment but can be used in many other purposes like when customer wants to exchange any item a cash receipt is demanded from them as a proof, when a customer complains about any purchased item, when there is any warranty issue or when any other information is needed against that payment then cash payment receipts are used.
Another basic use of cash payment receipt is the balancing of the accounting records. One of the major audit issues is the lack of cash receipts so, it helps to reduce and avoid the audit issues. Without cash receipts the audit is incomplete which results in serious issues.
Another important point of cash receipt is that it is useful for tax purposes where it helps to minimize the tax payable. Cash payment receipts are used as expenses which are deducted to sales. As we know cash receipts are important for both vendor and customer. For vendor because it helps him to know exactly how much of is good are sold and how much of the goods are more needed and for customer because it helps to keep track of the financial records.
There are some important cash payment receipt guidelines which sets a base on which they are built. First of all it includes business name and address which is mentioned at the top of every cash receipt but sometimes it is mentioned somewhere in the end. It is important to have a business name and address so it is easy to go there whenever there is an issue.
Price of the good purchased should also be mentioned there with all other billing details. Cash payment receipts should also mention all the things the customer has bought with the price of each item mentioned. This covers a major area in receipt which clearly tells the customer what was bought and at what price it was bought. It also mentions the services provided to the customers in the form of clauses and also includes some company policies which are linked with the payment like in how many days an item can be exchanged or claimed.
Under the position where price of each item is mention, there is subtotal, taxes and total mentioned. Subtotal is the total of all the goods purchased before taxes are applied to them. Under the subtotal section, there are tax sections which includes tax details. It includes the amount of tax charged on purchases. Under the tax section is the total section which includes total payment after taxes applied. This is the amount that customer pays.
The last and most important is the transaction sections which clearly tell how much the customer paid and what the change is. This section also refers to any inappropriate change given. There is a transaction number in this section which is kept in the record of vendor so that vendor can easily open if there is any issue.