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    Cash and Internal Control: Cash Account Cash Book

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    shaban
    This document discusses merchandising operations and accounts. It explains that merchandising involves purchasing inventory to sell for a profit. Merchandising accounts track inventory, cost of goods sold, expenses and are used to determine profit or loss. The value of unsold inventory at the end of the year is the closing stock. Strong internal controls over cash are important since cash is liquid and prone to going missing. There are different types of cash books that record cash and bank transactions. Steps for opening an account include providing valid photo identification or other documents.

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    Cash and Internal Control: Cash Account Cash Book

    Uploaded by

    shaban
    26 views3 pages
    This document discusses merchandising operations and accounts. It explains that merchandising involves purchasing inventory to sell for a profit. Merchandising accounts track inventory, cost of goods sold, expenses and are used to determine profit or loss. The value of unsold inventory at the end of the year is the closing stock. Strong internal controls over cash are important since cash is liquid and prone to going missing. There are different types of cash books that record cash and bank transactions. Steps for opening an account include providing valid photo identification or other documents.

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    This document discusses merchandising operations and accounts. It explains that merchandising involves purchasing inventory to sell for a profit. Merchandising accounts track inventory, cost of goods sold, expenses and are used to determine profit or loss. The value of unsold inventory at the end of the year is the closing stock. Strong internal controls over cash are important since cash is liquid and prone to going missing. There are different types of cash books that record cash and bank transactions. Steps for opening an account include providing valid photo identification or other documents.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    26 views3 pages

    Cash and Internal Control: Cash Account Cash Book

    Uploaded by

    shaban
    This document discusses merchandising operations and accounts. It explains that merchandising involves purchasing inventory to sell for a profit. Merchandising accounts track inventory, cost of goods sold, expenses and are used to determine profit or loss. The value of unsold inventory at the end of the year is the closing stock. Strong internal controls over cash are important since cash is liquid and prone to going missing. There are different types of cash books that record cash and bank transactions. Steps for opening an account include providing valid photo identification or other documents.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

     Merchandises

    Merchandise is an object that is produced or purchased in quantity to be sold publicly for a


    reasonable profit.
     Merchandising operations
    Merchandising operations are your purchasing, selling, collecting and payment activities.
    These are ongoing operations to improve your cash flow.
     Merchandising Account
     Merchandising accounts often include the accounts of inventory, other supplies, cost of
    goods sold and supplies expense, and are subject to adjustments and closing.
     Why we prepare merchandising account?
    Because we want to know the correct or current financial positive of a business concern. We
    have to prepare merchandising account. At the end of each financial year. The result can be in
    the form of profit or loss so we can decide about the business for its future operations
    obliviously the profit of the business can increase the life of the business so finally all these
    activities can be possible for the result of the business.
     Valuation of closing stock
    The value of goods remain unsold and available in the stock room at the end of financial year
    is called closing stock

     Cash and Internal Control

    Since cash is the most liquid of all assets, a business cannot survive and prosper if it does not
    have adequate control over its cash.  Cash is the asset that has the greatest chance of “going
    missing” and this is why we must ensure that we have strong internal controls build around
    the cash process. 

     Difference b/w cash and cash book?

    Cash account Cash book

    1. Cash account is a part of ledger in which 1. Cash book is a book of original entry in
    entries related to cash are recorded. which entries relating to cash are recorded.
    2. Cash account is a principal book that forms 2. Cash book is a subsidiary book as well
    part of ledger. as principal book and forms part of
    original entries.
    3. Entries in the cash account are recorded 3. Cash book records all entries related to
    from the journal, the book of original entry. cash directly as it is also a book of original
    entry.
    4. Cash book contains columns for ‘L.F.’
    4. Cash account contains columns for ‘J.F.’ in in which page numbers of ledgers are
    recorded
    which page numbers of journal are recorded

     Types of cash book


    There are three types of cash book.
    Single column cash book; A single column cash book to record only cash transactions.
    Double column cash book; A double/two column cash book to record cash as well as bank
    transactions.
    Triple column cash book; A triple/three column cash book to record cash, bank and
    purchase discount and sales discount.

     Steps of opening account


    1. Identity Documents
    2. A photocopy of any one of the following valid identity documents duly attested by
    Gazetted Officer/ Nazim /Administrator or an Officer of the Bank
    3. CNIC without Photograph
    4. CNIC/SNIC with Thumb Impression
    5. Expired CNIC/SNIC
    6. Shaky/Immature Signatures
    7. Salaried Persons
    Attested copy of Service Card/Salary Slip
    A Certificate from the Employer
    8. Students
    Attested Copy of latest & valid identity card of Educational Institute or Letter from the
    Educational Institute.
    Proof of earning of father/ mother / guardian of student

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