ACCT 001 Lecture Notes - Lecture 10: List Of The Shield Episodes, Internal Control, Bank Reconciliation

• School: College of The Sequoias
• Department: Accounting (ACCT)
• Course: ACCT 001
• Professor: cooper

Document Summary

Internal control of cash: cash is transferred easily from one person to another (liquid, cannot be specifically identified as belonging to one particular person (anonymous, therefore it is most susceptible to theft, misappropriate or fraud. Procedures for internal control of cash: separation of duties for. Despite the small amounts involved, increased control is necessary. Establishing a petty cash fund: dr petty cash , cr cash at bank . Disbursements give an indication of where the money put aside in the petty cash fund is going toward: we need to replenish the petty cash funds regularly according to the amount we spend. Replenishing petty cash funds: dr expense 1, dr expense 2, dr expense 3, cr cash at bank (1 + 2 + 3) Additional internal control can be achieved by comparing the bank statement with the cash account in the general ledger. This is achieved with a bank reconciliation statement: reconciliation process mainly involves the explanation of why differences exist.