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Entries of Receipt and Payments

This chapter covers

  • What is the use of "Receipt Entry" & How to make this Entry
  • What is the use of "Payment Entry" & How to make this Entry.

A] Receipt Entry



Q. What is Receipt Entry ?

Receipt entry is used to make the entries of the received amount from any party. for ex. If a Customer is paying us his previous pending amount to us, if he returns the cash borrowed by him from us, If we receive some amount from any party in the bank , If we receive some amount in cheque from any party then we make such Entries of Received Money in Receipt Entry.


Q. How to make Receipt Entry ?

While making entry of received amount, selection of the Type of the received amount is mandatory. for ex. whether we have received the amount in Cash in Hand or Through Bank.


1) If Amount is received By Cash

  • Then we have to select as "By Cash" option. we can make this entry in Simple form or in Detail form.
  • In simple form, we simply have to enter the party name and received amount and we can also add the details (if any) and save it.
  • But if we are making entry in Detail form, in Received Cash To, we will Select the Cash in Hand account and add the received Amount with Narration. and in other side, we will select the Incomes/Party name and the received Amount will appear then add it.
  • You can also add any details if you want to or you can also mention the employees name if the amount received through any of your Employee.


  • 2) If Amount is received through Bank ( Cheque, DD, A/C Transfer )

  • Then we have to select the option as " By Cheque" or "D.D" or A/C Transfer.
  • if we are making entry in Detail form, in Received Cash To, we will Select the Bank account and add the received Amount with Narration. and in other side, we will select the Incomes/Party name and the recieved Amount will appear then add it.
  • The rest entry is as same as By cash entry.
  • In this, only we have to select the option likewise.

  • B] Payment Entry



    Q. What is Payment Entry ?

    Payment entry is used to make the entries of Paid amount to any party, or to make entries of Expenditure. for ex. If we pay some pending amount to our Supplier, we give some amount on credit, Payment of Salary, Payment of Electricity bill, Office Rent, Payment of Phone Bill, Stationary Expenses, Transportation Expenses, Audit fees, OR we pay some amount to someone in Cheque then we can make such entries in Payment Type.


    Q. How to make Payment Entry ?

    While making entry of paid amount, selection of the Type of the paid amount is mandatory. for ex. whether we have paid the amount in Cash in Hand or Through Bank.

    1) If the Amount is paid By Cash

  • Then we have to select as "By Cash" option. we can make this entry in Simple form or in Detail form
  • In simple form, we simply have to enter the Party name or Account name and Paid amount and we can also add the details (if any) and save it.
  • But if we are making entry in Detail form, in select Expenses/Party name Paid To, we will Select the Party name or the Account to whom we are paying and add the paid Amount with Narration. and in other side, we will select By Cash in hand account and the paid Amount will appear then add it.
  • You can also add details if you want to or you can also mention the employees name if the amount you paid to any of your Employee.
  • After filling all the details you have to save this.


  • 2) If the Amount is paid through Bank ( Cheque, DD, A/C Transfer ) :

  • Then we have to select the option as " By Cheque" or "D.D" or A/C Transfer.
  • But if we are making entry in Detail form, in select Expenses/Party name Paid To, we will Select the Party name or the Account to whom we are paying and add the paid Amount with Narration. and in other side, we will select Bank account name and the paid Amount will appear then add it.
  • The rest entry is as same as By cash entry.
  • By selecting the likewise options we can make this entry.
  • We can also add the payment details or add if the payment is done by employee.


  • 3) If the Bank has taken Commission charges while making Payment by cheque or RTGS.

  • Then in Payment entry , In paid to column, we will select "Bank Commission"Account and in By, we will select our Bank Account. and enter the total amount deducted from our Bank Account and add.


  • Tips:If you have not created the Bank account, then you can also create the new Bank account from here. while creating this account, you must select its Account Group as "Bank Account" or "Bank Loan Account" Likewise.

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