Mataracy
VIP Contributor
It is very essential and important for a good set up company to have a cash office. The duties of cash office are receiving and paying cash ,posting cash, transactions in to cash book,opening a bank Account on which cheques are drawn and providing information on the cash position at a given time.
CASH BOOK ENTRIES.
Cash book entries in respect of cash /cheques payments and receipts are to be made and postings should be balance each day. The ruling of the cash book provides volume for cash Bank transactions and total amount on the receipts (or debit)side. Cash balances are to be confirmed on a daily basis.
CHECKING THE CASH BOOK
The regular checking of the cash book is an important exercise in detecting errors and frauds. The physical cash balance has to be verified daily and specification certified in the cash book by close of the office.
CASH WITHDRAWALS FROM BANK
Where cash is to be withdrawn from the bank, a cheque will be issued from the amount after due authorization process, but without raising a payment voucher.
SECURITY AND CUSTODY OF ACCOUNTING BOOK AND DOCUMENT.
Security documents carry monetary values;such documents can be used to defraud company or governments.
If they fall in to unauthorized hands or make government or company suffer loss accidentally destroyed. Example are:
(A) cheque Book(B) Treasury receipt Book(C) cheque summary register(D) Cash book(E) payment voucher(F) Local purchases order(G) poster order(H) Money order.etc.
From here one can see the function of cash office and how sensitive the place is.
CASH BOOK ENTRIES.
Cash book entries in respect of cash /cheques payments and receipts are to be made and postings should be balance each day. The ruling of the cash book provides volume for cash Bank transactions and total amount on the receipts (or debit)side. Cash balances are to be confirmed on a daily basis.
CHECKING THE CASH BOOK
The regular checking of the cash book is an important exercise in detecting errors and frauds. The physical cash balance has to be verified daily and specification certified in the cash book by close of the office.
CASH WITHDRAWALS FROM BANK
Where cash is to be withdrawn from the bank, a cheque will be issued from the amount after due authorization process, but without raising a payment voucher.
SECURITY AND CUSTODY OF ACCOUNTING BOOK AND DOCUMENT.
Security documents carry monetary values;such documents can be used to defraud company or governments.
If they fall in to unauthorized hands or make government or company suffer loss accidentally destroyed. Example are:
(A) cheque Book(B) Treasury receipt Book(C) cheque summary register(D) Cash book(E) payment voucher(F) Local purchases order(G) poster order(H) Money order.etc.
From here one can see the function of cash office and how sensitive the place is.
