Can Anyone Explain Different Rules For Internal Check Over Cash Payment?


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Amen Bukhari Profile
Amen Bukhari answered
All payments can be made through cheque beyond certain limit. For example the limit may be rupees twenty. Any payment over these figures requires the use of cheque under proper authority. The cash in hand can be verified at nay time in order to test the work of cashier. The cash book shows the balance on hand. The cashier may be asked to hand over the cash for counting. The wages can be paid through cheque. The wages record should be prepared by wages clerk. The payment can be made by cashier. Register cab be used as voucher for making entries in accounting book.

All vouchers must be numbered. These numbers can be recorded in the books of accounts. The vouchers can be filed date wise. The serial numbers are helpful to keep up to date record. The bank reconciliation statement can be prepared at the end of every month. In this way errors and frauds can be located and corrected in time for effective working of business.

The blank cheques can not be issued at all. The cheque can be issued for definite amount. The purchase of goods and service can determine the amount of cheque. There is a need of monthly accounts from creditors. After receipt of such accounts the payment should be made on due date. The monthly accounts can be compared with the accounts maintained by accountant.

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