Cash in hand journal entry

Answer 1

A cash in hand journal entry records the physical cash a business has available at a given time. The typical journal entry for cash received would debit the Cash account, increasing its balance, and credit the corresponding account, such as Sales Revenue or Accounts Receivable, depending on the source of the cash. For example, if a business receives $1,000 in cash from a sale, the entry would be: Debit Cash $1,000 and Credit Sales Revenue $1,000. This entry reflects an increase in assets and recognizes the income earned.