Matakuliah
Tahun
: V0232 – Akuntansi Keuangan Hotel
: 2009
Hospitality Financial Accounting
Week 9
Internal Control and Cash
10-1 Principles of Internal Control
Establishment of responsibility
Segregation of duties
Documentation procedures
Physical, mechanical, and
electronic controls
Independent internal verification
Other controls
10-2 Application of Internal Control to Cash
Receipts
Establishment of
Responsibility
Only designated
personnel are authorized
to handle cash receipts
(cashiers)
Segregation of Duties
Different individuals
receive cash, record cash
receipts, and hold the
cash
Documentation
Procedures
Use remittance advice
(mail receipts), cash
register tapes, and
deposit slips
Physical, Mechanical,
and Electronic
Controls
Store cash in safes and
bank vaults; limit access
to storage areas; use
cash registers
Independent Internal
Verification
Supervisors count cash
receipts daily; treasurer
compares total receipts
to bank deposits daily
Other Controls
Bond personnel who
handle cash; require
employees to take
vacations; deposit all
cash in bank daily
10-3 Application of Internal Control to Cash
Disbursements
Establishment of
Physical, Mechanical,
Responsibility
Only designated
personnel authorized to
sign checks (treasurer)
Segregation of Duties
Different individuals
approve and make
payments; check signers
do not record
disbursements
Documentation
Procedures
Use prenumbered checks
and account for them in
sequence; each check
must have approved
invoice
and Electronic
Controls
Store blank checks in
safes, with limited
access; print check
amounts by machine in
indelible ink
Independent Internal
Verification
Compare checks to
invoices; reconcile bank
statement monthly
Other Controls
Stamp invoices PAID
10-4 Bank Reconciliation Format
Bank Reconciliation
(Date)
Cash balance per bank statement
Balances
Should
Agree
$XXX
Add:
Deposits recorded by business but not by bank (e.g., deposits in transit)
XX
Less:
Charges recorded by business but not by bank (e.g., outstanding checks)
XX
Adjusted cash balance per bank
$XXX
Cash balance per books
$XXX
Add:
Deposits recorded by bank but not by business (e.g., note collection, interest
XX
Less:
Charges recorded by bank but not by business (e.g., service charges, NSF
XX
Adjusted cash balance per books
$XXX
Differences
Caused By
1. Time lags
2. Errors
Prepare
Adjusting
Entries to
Correct Books
10-5 Preparing the Bank Reconciliation
Bank Statement
Bank balance June
Books
$10,000
Deposits and credits
Bank balance June
Checks and debits
June 1
200.00
#209
10.00
June 10
350.00
#210
25.00
June 20
425.00
#211
52.00
June 25
750.00 CM
#213
199.00
June 28
320.00
#216
205.00
#217
650.00
#218
#219
Total credits
$2,045.00
Bank balance June 30
CM – Represents $725 Note
Receivable collection plus
interest revenue of $50 less
bank charges of $25. NSF
represents $125 check from
ABC Company deposited on
6/20.
$10,150
Cash Receipts
Cash Disbursements
June 10
$350.00
#210
$25.00
June 20
425.00
#211
52.00
June 28
320.00
#212
22.00
June 30
275.00
#213
199.00
$1,370.00
#214
Void
#215
29.00
200.00
#216
205.00
125.00
#217
560.00
#220
250.00
#218
200.00
NSF
125.00
#219
125.00
S.C.
6.00
#220
250.00
$1,847.00
#221
60.00
#222
126.00
#223
82.00
Total
$1,935.00
Total debits
Total
$10,198
HINT: One error was made
in recording disbursements.
Procedures for Finding Differences between Bank and Book Balances:
1.
Examine last month’s bank reconciliation and list items that have not
change, i.e., outstanding checks from prior month which have not cleared
(again) or other reconciling items which were not corrected (bank service
charges).
2.
Compare all recorded disbursements per books to bank debits (charges)
and list differences.
3.
Compare all recorded receipts per books to bank credits and list
differences.
4.
Prepare bank reconciliation from data collected.
Book balance June 30
$9,585
May Bank Reconciliation
Balance per bank statement
Add:
Deposits in transit
Less:
Outstanding Checks
$10,000
200
10,200
#201
$40
#209
10
Adjusted balance per bank
50
$10,150
10-5 Preparing the Bank Reconciliation
(continued)
Prepare adjusting entries
to adjust cash balance
per books to adjusted
balance per books.
June Bank Reconciliation
Balance per bank
Add:
Deposit in Transit:
$10,198
June 30
275
10,473
Less:
#201
$40
#212
22
#215
29
#221
60
#222
126
#223
82
Adjusted balance per bank
Less:
NSF (ABC Co.)
359
$10,114
Balance per books
Bank collection of N/R
$9,585
Error: Check #217
Adjusted balance per book
Cash
750
25
Interest Revenue
50
Notes Receivable
725
Book error of $90 resulted from recording check No. 217 as
$560 when actual check amount and invoice amounted to
$650 (XYZ Co. – Accounts Payable).
Accounts Payable – XYZ Co.
90
Cash
90
750
$10,335
Bank service charge
Bank collects a $725 Notes Receivable and $50 Interest
Revenue less $25 for bank charges (net $750).
Miscellaneous Expense
Outstanding checks
Add:
Bank Reconciliation Adjusting Entries
$125
Miscellaneous Expense
6
90
Bank service charges of $6.
6
Cash
6
221
$10,114
NSF check for $125 from ABC Company returned by bank.
Accounts Receivable – ABC Co.
Cash
90
90