Re: [SL] AR balance sheet vs trial balance vs outstanding

[Paul T. <pt...@wa...>]

>  Regards,
>  Chris
>  
>  [1] Why is AR shown on the balance sheet for cash accounting? 
>
>  		
>   
Chris, this is the crucial question I think.
Answer: All accounts with a non-zero amount are shown, because they have 
an influence on the figures.

As I see it, or should I say in my experience with SQL-Ledger, it works 
like this:
The CASH sales (cash register) are invoiced to and sold to ONE virtual 
customer, named CASH SALES.
We do not enter names, adresses and what not for cash sales, we just 
record them, close the bill and re-use for the next cash customer.
So, when the  customer pays,  the existing bill  is closed and  the cash 
amount in the cash-drawer  goes up with the same amount.
At the end of the day, you count the cash, maybe take some overfluous 
money to the bank, and close and reconcile the Cash-register.

The effects you mention suggest to me that you may not have recorded the 
cash receipts for one or more cash transactions.
Leaving the AR customer CASH SALES with an outstanding amount.
This, as you mentioned yourself, is not logic, nor is it correct. Cash 
customers have a zero credit limit.
And because we do not record adresses and whatnot, there is no money to 
be collected from return to sender, adress unknown.

So either you forgot to record the receipt, or (worse) you did not 
receive the money.
In both cases you should have had a cash difference at the end of the 
day during the daily cash count and reconciliation.

Hth,
Paul