Custom Search

Translate

Wednesday, 21 September 2011

Describe the internal control system in the following cases, 1. Petty cash transaction 2. Postal sales 3. Sales over the counter

PETTY CASH TRANSACTION :-
Following system of internal check for petty cash transaction is very useful :

1. Immediate Recording Of Entries :-
Entries from the vouchers should be recorded immediately in the cash books. The petty cashier must be a person different from the cashier.

2. Use For Small Expenses :-
Petty cash should be used for small expenses and not for bigger payments. It may not be used for the payment of wages or to suppliers.

3. Support Of Vouchers :-
Vouchers must be supported by external documentary evidence. While obtaining payments from the petty cash.

4. Checking & Initials Of Cashier :-
Every month the cashier should check and initial the petty cash book when the petty cash is reimbursed or cash book postage is examined.

5. System Of Vouchers :-
All the system of petty cash book should be upto date. All the voucher should be numbered consecutively. All the vouches should be properly filed.

6. Use Of Imprest System :-
Petty cash system should be used under the imprest system. Column petty cash book is very useful and it should be maintained by the petty cashier.

7. Surprise Checking :-
A responsible officer should do the surprise checking of the petty cash in hand.

8. Payments By Authorized Person :-
A responsible person who is authorized to make the payment should allow the payment on vouchers.

9. Use Of Sup or Docket :-
If voucher system is not possible in some case then slip system can be introduced. Slip of particular amount will be issued by the officer who has spent the money. In this way proper record will be available for checking.

10. Employees Not Allowed :-
Workers should not be allowed to borrow the money from the petty cash.


POSTAL SALE :-
For the postal sale following system of internal check is very suitable.

1. V.P.P Record :-
Record of those goods should be maintained in the V.P.P. Register which are being sent by post. The amount of those goods should be also written against their column.

2. Receipt Of Cash :-
The amount of cash received through the post office should be recorded in the V.P.P register against the goods.

3. Deposit Of Daily Cash in Bank :-
Received cash should be deposited daily in the bank. If it is not possible on that day then next day must be deposited.

4. Recording In Cash Book :-
All the cash which is received in one month should be posted from the V.P.P. Register to main cash book and sales account.

5. Recording Of Returned V.P.P. :-
Those which were sent to the customers but they refused to accept them, these will be returned. Such returned items must be recorded in the V.P.P.Register.

6. Checking Of Register :-
There should be a frequent checking of V.P.P. Register by responsible official. Such checking will also clear the position of payment made by the customers.


SALES OVER THE COUNTER :-
Following system can be recommended for the sales over the counter :

1. Duties Of Salesman :-
i. The salesman should only make the sale.
ii. He should not receive the cash from the customer.
iii. The sales man should prepare the duplicate copy of cash memo. He should give both copies to customer for payment to the cashier.

2. Duties Of Cashier :-
i. Cashier will only receive the payment and sign on both the copies of the memo.
ii. He will return the original copy to the customer and retain the carbon copy.
iii. He will not make the sale.

3. Checking Of Cash :-
A responsible official will daily check the amount of cash sales over counter. He will also compare with the summaries of said prepared by salesman and cashier.

4. Cash Deposit :-
All the cash received daily must be deposited in the bank on the same day or next morning.

5. Entry In Cash Book :-
All the cash received over the sales counter must be entered in the cash book.

6. Use Of Cash Register :-
To record the daily cash sales over the counter, cash register can also be maintained. It will be very useful, for effective internal control.

0 comments:

Post a Comment

Google+ Followers

Best Song of the Year Baar Baar by Fysul Mirza

  © Blogger template Blue Surfing by Trade Cycle 2014

Back to TOP