Cash Receipts questions
What documents are used to record inwards cash?
Cash Book, individual receipts of EFTPOS transactions and Daily summary printouts of EFTPOS transactions. Bank reconciliation statements are prepared using these information. Please note, the business does not accept cheques and credit cards
Why does the business not accept cheques and credit cards? The Cheques could get dishonoured and hence it is not reliable. The business has also required to bear the bank charges to clear it. Moreover, if a cheque gets dishonoured, the bank levies heavy penalty. Further, Cheque payments take more time to get credited to the account. The Credit cards also attract more bank charges.
What essential information do these documents contain?
Cash Book - Date, Particulars and amount.
EFTPOS – Date, Time, amount, card details, Terminal Number and
Do you keep a copy of all your sales receipts?
How is cash that is received recorded into the accounting system? Cash received is entered on the Cash Receipts Journal and Ledger automatically by the computer software on a daily basis.
Who records inwards cash and what is their position in the business?
Proprietor who has accounts background
How is cash checked at the end of the day?
Counted manually by the Store Manager / Proprietor and tallied with the Till
print out. It will then be reconciled with the Bank Statement.
How often do deposit your cash from the sales to the bank?
Every alternative day
How do you ensure the security of the cash till it is deposited in the bank?
It is kept in a safe at the proprietors house which has an alarm system
What controls are there over the cash register?
Key is required to open the Cash Register. Camera focussed on the Till
at the counter gives an added control.
Do you have any minimum and maximum amount limit restrictions for the till?
Yes, a maximum of $250/- and a minimum of $50/- at any given time.
What do you do if cash has reached its maximum or minimum amount? It is kept or taken out of a small safe kept at the back of the shop. It is password protected and only the proprietor and the store manager has access to it.
Are the cash receipts reconciled with the bank statement? How often? How?
Yes. Cash in the Till is counted manually and is tallied with the total of the
Cash Register. Cash reconciliation is done on a daily basis. Opening Cash
Balance + Cash receipts + EFTPOS Sales = Closing Cash balance for the day.
Are the receipts reconciled with the bank statement?
Does an external accountant check the accounts?
What is the main purpose served by the service of the external accountant ?
Double checking of the entire accounts of the business
What type of entity is this company?
What sort of goods do you buy?
Vegetables, fruits, spices and dairy products
Who establishes that stock levels have reached their minimum?
The Store Manager based on the report of the staff
Why is this necessary? What might result if stock levels went below
To prevent the goods getting out of stock.
Fresh Order has to be made when the stock level reaches their minimum as the shipment takes more than 3 weeks. If the goods goes out of stock, it would create unsatisfied customers and result in loss of revenue.
What details does the Order Contain?
Order Number, date, Name and address of the Business (Consignor), Item Code, Quantity, price, total value, name and signature of the authorised person (Proprietor)
Who is given the authority to purchase goods and Credit Purchases?
What are the invoices received from the suppliers are used for and how is this
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