Accounts receivable is an important accounting system in any organization or company. Accounts receivable means amount that are to be received from outside the company or organization. Amounts that are received from outside the organization or company will be from the customers or suppliers etc. Accounts receivable transaction generally occur when there is a sale where no cash involves. In other words if the sales is for credit then accounts receivable transaction occurs. It is common in a all organization or company to adopt or apply accounts receivable transaction.
Maintaining of accounts receivable ledger is also absolute if the company or organization allows credit transactions.While maintaining the accounts receivable ledger the company or organization can effectively watch the credit transactions. It means the company or organization can enable how much amount is due from whom and when from the amount is pending.
Generally accounts receivable ledger has to be maintained date wise containing the details of the name of the company or person from whom the amount is due, date from the due is pending, number of days pending, amount due, amount realized and the balance amount to be received.
Accounts receivable has to be maintained on daily basis and a monthly abstract should be struck containing the details of amount due, amount collected and the balance amount to be received.
An annual abstract have also to be struck up containing the details of the debtors due at the end of the financial year, amount due, amount collected and the balance amount at the end of the year.
