A small medical supply company sells cash only the cash sale procedure involves several steps • The sales clerk prepares a pre-numbered sales invoice in triplicate. The sales clerk takes copy 1 and 2 together with the payment and present them to the cashier • The cashier validates the original copy and gives it to the customer • The third copy of the sales invoice stays in the invoice book when the invoice book has been depleted all 3rd copy of the invoices is filed in the sales office. “by invoice books” • At the end of each day the cashier prepares a Sales summary, a deposit slip in duplicate and counts the cash. He or she takes the cash to the Bank and deposit it. The cashier retains a copy of the deposit slip the other copy is validated by the bank. • The cashier then gives the accountant the sales summary, the 2nd copy of the invoices and the validated deposit slip. • The accountant agrees the numbers prepare the journal entry Files the documents as follows Sales summaries by date Invoices by number Deposit slip by date Journal vouchers by number Required 1. Prepare a document flowchart for the processe 2. What weakness in the controls do you see? List them 3. Suggest enhancements to the internal control
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
A small medical supply company sells cash only the cash sale procedure involves several steps
• The sales clerk prepares a pre-numbered sales invoice in triplicate. The sales clerk takes copy 1 and 2 together with the payment and present them to the cashier
• The cashier validates the original copy and gives it to the customer
• The third copy of the sales invoice stays in the invoice book when the invoice book has been depleted all 3rd copy of the invoices is filed in the sales office. “by invoice books”
• At the end of each day the cashier prepares a Sales summary, a deposit slip in duplicate and counts the cash. He or she takes the cash to the Bank and deposit it. The cashier retains a copy of the deposit slip the other copy is validated by the bank.
• The cashier then gives the accountant the sales summary, the 2nd copy of the invoices and the validated deposit slip.
• The accountant agrees the numbers prepare the
Files the documents as follows
Sales summaries by date
Invoices by number
Deposit slip by date
Journal vouchers by number
Required
1. Prepare a document flowchart for the processe
2. What weakness in the controls do you see? List them
3. Suggest enhancements to the internal control
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
