What happens to accounts with an amount entered in the General column of the cash receipts journal?

In accounting, the General column of the cash receipts journal is typically used to record all cash transactions that do not fit into more specific categories. When an amount is entered in the General column, it represents an increase in cash, which signifies a credit entry to the cash account. This is because cash receipts increase the cash balance of the company, reflecting a credit to the cash account, as per the double-entry accounting system.

In this system, every debit must have a corresponding credit, and when cash is received, it is recorded as a credit in the cash account to indicate that the company's cash resources have increased. Hence, when an entry is made to the General column in the cash receipts journal, it correctly indicates a credit to the cash account, supporting the understanding that it reflects the movement of cash into the business.

Understanding this relationship is essential for accurate financial reporting and analysis.