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    Internal Control

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    yvanciel.diano

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    © All Rights Reserved
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    Internal Control

    Uploaded by

    yvanciel.diano
    8 views3 pages

    Copyright

    © © All Rights Reserved

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    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    8 views3 pages

    Internal Control

    Uploaded by

    yvanciel.diano

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    Internal Control b.

    Making Payments from the


    fund
    - The planning, methods and
    c. Replenishment of petty cash
    measures used by the
    payments
    business organization to:
    1. Safeguard assets Expenses xxxx
    2. Promote efficiency
    Cash in Bank
    3. .
    xxxx
    4. –
    To replenish petty cash
    Two types of Internal Control
    fund
    1. Accounting Controls
    d. At the end of the accounting
    2. Administrative or Managerial
    period, you adjust the
    Controls -
    unreplenished expenses

    Expenses

    Petty Cash Fund


    Cash –
    To adjust the
    unreplenished expenses

    Petty Cash fund – Money set aside The adjustment is to be reversed at


    for emergencies etc. the beginning of the next
    accounting period.
    1. Imprest Fund System –
    (Usually a fixed amount) e. An increase
    2. Fluctuating Fund System –
    Petty Cash Fund 9000
    (Can increase or decrease)
    Cash in Bank
    9000
    Imprest Fund System
    To increase Petty Cash
    a. Check is drawn to establish Fund
    the fund
    Fluctuating Fund System
    Petty Cash Fund xxxx
    a. Establishment of petty cash
    Cash in Bank fund is the same as Imprest
    xxxx Fund System.
    b. Payments are recorded right
    To establish a petty cash
    away
    fund
    Expenses Payable to cashier
    xxxx

    Petty Cash Fund xxxx


    BANK RECONCILIATION
    c. Replenishment same as
    - Done monthly, a statement
    imprest
    showing the cash balance per
    d. No adjustment is necessary
    book and cash balance per
    because the petty cash
    bank.
    expenses are recorded
    - Related to bank deposits.
    outright.
    Types of Deposits:
    ACCOUNTING FOR CASH
    SHORTAGE 1. Demand Deposit – covered
    by deposit slips, funds are
    Cash short or over
    withdrawable.
    xxxx
    2. Saving Deposit – depositor is
    Cash xxxx given a passbook. Can be
    withdrawn anytime but
    Only a temporary or suspense
    sometimes require notice of
    account.
    withdrawal
    a. If cashier or cash custodian is 3. Time Deposit –
    responsible for cash
    Bank Reconciliation is
    shortage:
    necessary only for a checking
    Due from cashier xxxx account.

    Cash short or over a. The cash balance per bank


    xxxx b. Deposits made,
    awknowledged by bank.
    b. If you fail to disclose who is
    c. Checks drawn
    responsible, you journalize
    d. Daily cash balance per bank
    as: (Under Miscellaneous
    during the month
    Income)

    Loss from cash shortage


    xxxx Cancelled Checks – cancelled by
    stamping.
    Cash Short or over
    xxxx Bank Reconciliation – Done
    monthly, a statement showing the
    c. If cash is found to belong to
    cash balance per book and cash
    the cashier:
    balance per bank.
    Cash short or over
    a. Company ABC paid Bank
    XYZ:

    Cash xxxx

    Accounts Receivable xxxx

    b. On the books of XYZ bank,


    the journal entry is:

    Cash xxxx

    Company ABC xxxx

    I. Book Reconciling Items


    a. Credit Memos
    b. Debit Memos
    c. Errors
    II. Bank Reconciling Items
    a. Deposit in transit
    b. Outstanding checks
    c. errors

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