Public Administration - Municipal ACC106 Chapter Notes - Chapter 6.4: Electronic Funds Transfer, Debit Card, Bank Reconciliation

• School: Seneca College
• Department: Public Administration - Municipal
• Course: Public Administration - Municipal ACC106
• Professor: Riggs

Document Summary

Part 4 acc106 chapter 6 internal control and cash. The bank account as a control device: cash = medium, records, signature guard. Authorize to transact business through an account to sign a signature card. Teller see an electronic copy: deposit slip/books. In which the cheque is drawn: bank statement. Direct deposit = easier = less issues payroll cheques. Mortgage, rent, insurance, credit card pre arranged. The bank reconciliation: business may assume cash in bank account = cash in accounting records. 1 cash account in general ledger. 2 bank statement: usually books and bank shows different cash balances: Example: deposit but takes up to a day to update, w(cid:396)ite (cid:272)he(cid:395)ues (cid:271)ut is(cid:374)"t withd(cid:396)awal yet. Process of explaining the reason for the difference (cid:271)etwee(cid:374) a deposito(cid:396)"s (cid:396)e(cid:272)o(cid:396)ds a(cid:374)d the (cid:271)a(cid:374)ks (cid:396)e(cid:272)o(cid:396)ds a(cid:271)out the deposito(cid:396)"s (cid:271)a(cid:374)k a(cid:272)(cid:272)ou(cid:374)t. Ensures all cash transactions are accounted for. Person in charge of bank reconciliation should not have any cash duties.