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Week 9

The Recording Process. Week 9. Cash receipts Internal contol Electronic cash register Receipts Daily banking deposits Daily cash receipts journal Register of Cheques received. Cash.

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Week 9

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  1. The Recording Process Week 9

  2. Cash receipts Internal contol Electronic cash register Receipts Daily banking deposits Daily cash receipts journal Register of Cheques received Cash

  3. A journal is the original book of entry to the accounting process. It records the day to day transactions of a business. Cash Receipts Journal

  4. Were possible payments should be made by cheque or Electronic Funds Transfer. This will ensure a traceable record of the outgoings of cash of the business. The following guidelines should be observed: Supporting documentation (invoice,Statement) Cheques are numbered, reconciled with bank statements and signe by more than one person. Blank cheques should never be signed. Separation of duties between receiving person and payments person. Cash Payments

  5. An example of a Cash Payments Journal Cash Payments Journal

  6. Used for Incidental Payments when drawing a cheque is not feasible. An “imprest system” is used by having a certain amount as a cash float that is reimbursed by cheque when the cash float is exhausted. The amounts taken from the float are supported by documentation of receipts for the purchases made. Petty Cash

  7. A custodian of the funds A predetermined amount as a float. The petty cash float is kept under lock and key. Cash only paid out to authorised people on the presentation of receipts. Use pre-numbered Petty Cash vouchers to summarise the expenditure. The total of vouchers plus the remaining cash should always balance with the total amount of the Petty Cash Float. The float should be balanced on a regular basis. A petty cash journal is used to summaries the expenditure and used for reimbursement of funds. Petty Cash System

  8. Petty Cash Journal

  9. A comparison of the organisations records (Cash Payments Journal, Cash receipts Jouranal) with those of the bank (Bank Statement). Usually done on a monthly basis. • Highlight errors on bank statement or journals. • Highlight fraudulent activity by staff. • Allow an update of internal records. Bank Reconciliation

  10. Bank charges made directly Dishonoured cheques Periodical payments made from account. Direct debits (Deposits)to account Un-presented cheques. Deposits not credited to account. Differences that may occur

  11. Compare Bank statement debits with Cash payments Journal. Compare the Bank Statement Credits with Cash Receipts Journal. Update Journals with items that vary from Bank Statement. Account for Outstanding Deposits and un-presented cheques. Procedure for Bank reconciliation

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