CHAPTER 8

Recording monies
received
Contents

Controls over recording receipts

Cash registers

Cash received sheets (remittance lists)

Posting cash receipts to the general

ledger
Controls over recording
receipts

Receiving and the

recording functions are
kept separate

One person ill receive!

count and perhaps "ank
the mone#

Another person ill

record the mone#
received$

%hat for&

Avoiding theft

Collusion

E'am focus

&
(egregation of duties )ank reconciliations
Cash registers

To check the
amount of mone#
in the cash
register at the end
of the da# against
the summar#

To record receipts
in the cash "ook

%ho can access

Training

%ork o"servation

The ma'imum
possi"le amount of
preset information

Periodic info
anal#sis
%hat is it& (ecurit# and controls
Cash received sheets
(remittance lists)
*anuall# Pre+printed
Check it out
(olution
Three errors$
(a) ,t is incorrect to tr# to "alance the to discount
columns$

The discounts alloed- an e'pense of the

"usiness

.iscounts received a "enefit to the "usiness

(hould "e treated separatel# and not /netted off0

(") The cash "alance "rought don should "e
1223$42 and not 1225$42$
(c) The "ank "alance "rought don should "e
12!672$88 .R and not 12!672$88 CR! ie it is on
the rong side of the cash "ook$ The added up
Posting from cash "ook

(uppose e ished to post %arren *iles/s

cash received for 2 (eptem"er 739: to
his general ledger$ The relevant general
ledger accounts are as follos
Posting results
;ui<
2 %hat is /segregation of
duties/ hen dealing ith
cash receipts&
7 The cash "ook reflects the
movement of notes and
coins through the "usiness$
True or false&
4 %h# is a discount alloed
column re=uired in the cash
"ook&
8 ,s it easier for the operator
if the computeri<ed
receiva"les ledger and
general ledger are
interfaced&
2 The receiving and recording
functions are kept separate
to avoid theft$
7 >alse$ The cash "ook
records movements
through the "usiness "ank
account$ ?otes and coins
are recorded in the pett#
cash "ook$
4 The discount alloed
column shos h# the full
amount of a de"t has not
"een received! for clearing
the total amount in the
receiva"les ledger$
8 @es! "ecause Aournals
updating the general
ledger do not have to "e
;) 26
Cash received sheets (remittance lists) are
"est descri"ed as
A .ocuments used to record mone# received
from sales made
) .ocuments used to record customer
discounts
C .ocuments used to reconcile the "ank
"alance ith the cash "ook
. .ocuments used to record refunds from
suppliers
Answer: A