General Ledger Entries- Cash

Cash Accounting

End-Of-Day Report Descriptions

Note: In the system parameters, the program can be set up to provide either CASH, OPEN ACCRUAL, or CLOSED ACCRUAL income accounting. The definitions below apply to CASH ACCOUNTING ONLY. Although there are other minor differences, the major difference between cash and accrual accounting is that for cash accounting, income reporting for contracts is delayed until the contract is paid. Accrual accounting reports the income when the transaction occurs regardless if it is paid or not.

Normally a rental store will begin the workday with money in their cash drawer(s). As time goes on, money is added to the drawer when rentals and/or sales are made. Deposits are added or returned and money is sometimes refunded. In any event, money in the drawer is constantly changing. Of course, your POINT-OF-RENTAL™ System keeps track of this money on a real-time basis but the actual money in the drawer may be different than the computer thinks because of errors in giving change. At the end of the day, the person closing out the computer counts the money and any discrepancy is noted and stored by the system in an over/under the account.

In addition to keeping track of money, the system automatically and interactively computes income and accounts receivable. The following defines the individual entries on the end-of-day report.

Operator Summary

By operator code, this report indicates how many contracts were opened, closed, and modified during the day. It also provides net cash flow by operator broken down by cash, check,s and credit card.

Register Summary

Cash:

The computed amount is the amount of cash the program thinks should be in the drawer(s) at the end of the day. The counted amount is the amount the operator told the computer he had.

Checks:

The computed amount is the number of checks the program thinks should be in the drawer(s) at the end of the day. The counted amount is the amount the operator told the computer he had.

Credit Cards:

The computed amount is the number of credit cards the program thinks should be in the drawer(s) at the end of the day. The counted amount is the amount the operator told the computer he had.

Debit Cards:

The computed amount is the number of debit cards the program thinks should be in the drawer(s) at the end of the day. The counted amount is the amount the operator told the computer he had.

Other Amounts:

The computed amount is the amount of other (safe, IOU, etc.) the program thinks should be in the drawer(s) at the end of the day. The counted amount is the amount the operator told the computer he had.

The net change in the cash drawer:

The total cash flow for the day both computed and counted.

Begin Cash Drawer:

The “carry-over” Cash from the prior day.

End Cash Drawer:

The computed amount is the amount of cash the program thinks should be in the drawer(s) at the end of the day.

NOTE: Cash and checks are all commingled and should be thought of as cash for this report.

The counted amount is the amount of cash counted out by the person closing for the day. The difference in the computed and counted amount is stored in “Cash Over/Under (-)”.

Cash Over/Under (counted-computed):

Cash over/under (-) for the day.

End-of-Day Deposit:

The amount is withdrawn for the bank deposit during the End of Day Processing.

Withdrawn Deposit:

The amount is withdrawn for the bank deposit during the day.

Credit card Payments:

The total amount received in credit card payments for the day.

Debit card Payments:

The total amount received in debit card payments for the day.

Carry-over cash:

End Cash minus bank deposits and credit card. This will be the Begin Drawer for the next business day.

Cash Detail Count:

If you counted your cash and coin, then the numbers you entered for each denomination will be printed.

Notes:

Income is broken down into categories such as “contractors”, “plumbing”, “party”, “painting” etc. on the daily Category Totals Report. Category Income is based on Open Accrual Accounting.

A “Sales Tax Report” may be run any time after the close for the month to provide rental and sales income for up to 999 different sales tax jurisdictions.

Totals Based on Cash Accounting

All the following are provided on a daily, weekly, monthly, quarterly, and yearly basis.

Rentals:

Taxable and non-taxable rentals for the specific periods for all contracts that are FULLY PAID.

Sales:

Taxable and non-taxable sales for the specific periods for all contracts that are FULLY PAID.

Damage Waiver:

Taxable and non-taxable damage waiver for the specific periods for all contracts that are FULLY PAID.

Asset Sales:

Taxable and non-taxable sales of rental assets for the specific periods for all contracts that are FULLY PAID.

Total Rentals + Sales + Dmg Wvr:

The sum of all Rentals, Sales and Damage Waiver

Total Other Income:

Includes any monies rung up on contracts under Other Income.

Total Finance Charges:

Includes finance charges.

Fewer Discounts Taken:

The amount given in prompt pay discounts.

Total Income:

The sum of Total Rentals, Sales and Damage Waiver, and Total Other Income.

Tax Collected:

All tax monies collected for the various periods for all contracts that are FULLY PAID.

Total Income with Tax:

Total Income plus Tax Collected for all contracts that are FULLY PAID.

Bank Deposits:

The sum of Bank Deposits for the various periods.

Credit Card Payments:

The sum of any payment rung up as credit cards.

Debit Card Payments:

The sum of any payment rung up as debit cards.

Account Payments NOT added to drawer:

When account payments have entered the system, the person making the payments has an option to indicate whether these monies will be put in the cash drawer. When making payments if the operator indicated that they would NOT be added to the drawer the sum of these monies is provided here. Since these checks presumably would be banked, accounting wise, this money should be handled as if it were cash going to the bank or part of “bank deposits.”

Cash Added to Drawer:

Any monies that were added to the cash drawer (register) did not affect the income totals. For example, a refund check from an insurance company is thrown in the cash drawer.

Disbursements:

Total petty cash disbursements for the various periods.

Note: You can set up several disbursement items each with a different G/L expense account. Totals for each of these accounts can be obtained from the monthly disbursement report.

Cash Over/Under (-):

The sum for each period of differences between computed and counted cash.

Account Charges:

The sum of accounts receivable charges that were made for each period. Note: This is provided as information only so that you may determine approximately what percentage of your income is derived from A/R customers. These monies are automatically posted and included in the income totals.

Account Payments:

The sum of account payments received for each period.

Receivables Summary

Accounts receivable are divided into CASH and ACCOUNT receivables and then totaled.

Total Contract Amounts:

The total sum of all contracts in accounts receivable including “open”, “closed”, and “reservation” contracts.

Amounts Paid:

The total sum of all partial payments applied to billed accounts receivable contracts.

Amounts Due:

The difference between Contract Amounts and anything paid.

Credit Balance:

Credit balance (overpayments) of charge receivables.

A/R Fund:

Total A/R contract amounts minus any amounts paid and credit balances.

Suspense Fund:

For cash accounting, this should equal the sum of total amounts paid and total credit balance of all receivables contracts including both cash and charge.

Total Reservations Pending:

This is the total value of Reservation contracts currently pending. This is an informational number and does not post to General Ledger.

G/L Journal Entries

For Cash Accounting, Only

EOCM = END OF CURRENT MONTH EOPM = END OF PRIOR MONTH

All debit and credit columns are based on positive numbers in your Totals Report If an amount is a negative place it in the opposite column.

[1] This would be an Asset Account (normally 1000's series) labeled “PETTY CASH”.

[2] This would probably be an Income Account (normally 4000's series) labeled “OTHER INCOME”.

[3] This would be a Liability Account (normally 2000's series) labeled as “SALES TAX PAYABLE”.

[4] This would be an Expense Account (normally 5000's series).

Note: Disbursements for each expense account are listed on the monthly disbursement summary.

[5] This would be an Asset Account (normally 1000's series) labeled “CASH IN BANK”.

[6] This would be an Asset Account (normally 1000's series) labeled “CASH OVER/UNDER”.

[7] This would be a Liability Account (normally 2000's series) labeled “CUSTOMER DEPOSITS”.

[8] This would be a Liability Account (normally 2000's series) labeled “SUSPENSE FUND”

[9] This would be a contra Income Account (normally 4000's series) labeled as “DISCOUNTS GIVEN”.