RSM323H1 Lecture Notes - Lecture 11: Purchase Order, Capital Asset, Contingent Liability
Document Summary
Send 1 or 2 copies to receiving department (1 for receiving, the other for accounting department) Accounting department receives purchase order from the purchase department, as well as from the receiving department, and records liability. Control for the raw material in the warehouse (specific person responsible for it, accounting record should not be seen by others) People who in charge with treasury should not involved in the accounting department. Due date for sales invoices, company should not have automatic deduction, deduction must be supported by actual payment (cheque) Reconciliation: inventory, pp&e, a/p, cash should be accurately recorded need reconciliation, inventory: recorded amount is already there, reconcile with buying department and warehouse (less important), inventory count and inventory report (more important, pp&e: Reconcile of total listed assets and actual existence of actual assets. Valuation: balance of pp&e and depreciation of pp&e: cash: Payment recorded by bank and the company: a/p: