Receiving money and checking

Receiving money

Here is the 4th post for FA1 paper “Receiving money and checking”.

Control over receipts is the function of ensuring a good cash flow in the business. features of control over receipts are

  1. Instant deposit in bank
  2. Security
  3. documentation such as remittance advice

Remittance advice: It is sent to a customer by a supplier to show payment made for goods.

Look how to compare receipts with remittance advice.

1Make sure the values on the remittance advice equal the total.
2Match the sum to the receipt’s value (often a cheque).
3When there is a discrepancy in between two values, write the receiving money on the remittance advice and compute the discrepancy.
4Make the payment to be deposited, and then keep track of the receipt.
5Provide the remittance advice that has been marked up to the credit control department.

Till and written receipts

Cash registers, sometimes known as ’tills,’ are mostly utilize in small stores where the receiving money by consumer in cash, cheques, or card vouchers at the time of the sale or events.

A written receipt may be required if a till is not utilized. Although it is generally easier to include more extensive knowledge about the product sold on a paper receipt, the content should be the same as on the till receipt.
Some items have a specific identification or code number that allows them to identifies. When things are offered with a promise, they are frequently granted a specific code number (the supplier will repair or change the item for no charge within the time period specified in the guarantee). The supplier uses the unique code to ensure the right goods are being serviced or changed, rather than something that was purchased elsewhere. Electronic items and smartphones are examples of such items. The shop will normally preserve a copy of the contract by writing through it on a separate piece of paper with carbon paper.

Payment methods

Credit card: A duplicate of the credit card coupon will be mailed to the user, and the event will appear on the client’s monthly or annually credit card report (which is needful when a credit card has been utilized to purchase things over the phone or internet)

Debit card: The consumer gets a copy of the debit card voucher, much like with credit cards, and a record appears on the customer’s bank account.

Banker’s draft: Records of the products issued will be kept by the providing bank or post office. Most secure payment method.

Cheque: The clients bank report  will show the payment. After the customer’s checks have passed through the banking system, they may be returned to them.

Electronic payment method: For in-person sales, the consumer will obtain a till receipt, and the transaction will reflect on their bank statement. Customers who make purchases online will receive a confirmation email of their purchase, and the event will display on their bank report statement.

The process of the seller taking payment, as well as the payment itself, is referred to as a receipt.

Physical security

1 protective glass: To protect against theft and secure the safety of the cashiers, some businesses put protective glass in between consumer and the cashier. After dark, this measure is used at banks and building societies, as well as at petrol stations and numerous off-licenses.

2 Theft: Theft by employees. This issue can be mitigated by being cautious about who the company hires; their sources should be thoroughly examined, and they should be regularly observed through their first few months on the job.

3 Strong box: A strong box is used at every cash register in so many retail establishments. When a cashier receives a huge bank note, they will place it down a drain or slot that leads to a sturdy box, rather than in the cash register. Under the cash register, a heavy box will be built into the counter. The cashier can put cash in but not take it out, and customers, of course, are unable to access it. At the end of the day, the money in the safe can be taken.

4 Forgery: Larger value bills ($5 and $10) are frequently counterfeited. It is recommended that all notes be thoroughly examined before being accepted, as the metal thread integrated into all of these notes is impossible to duplicate. Even small banknotes and coins are counterfeited. Bank notes can now be checked with special marker pens and ultraviolet light detecting equipment.

5 safes:

If at all possible, cash should be taken out of the till on a regular basis (so that there is only a little quantity in the till) and placed in a secure location. A safe would be the ideal location.
The numbers of safe keys must be kept to a bare minimum, and key access should be limited.

Other such as frequent banking (after receiving money deposit as soon as possible) and night safes

EFTPOS (electronic fund transfer at the point of sale)

provides an opportunity for monies to transfer automatically from a client’s bank account to a company or stores when the customer buys items (or assistance) from it.

Hopefully you like our guide notes, it will help you a lot in passing your exam.

Must read and share with your friends and classmates.

Business transaction and documentation-FA1(ACCA)

Asset and liability (Accounting Equations)

Recording, summarizing and posting transaction

Double entries for sales, sales tax (FA1 pending topics)

About Author

Naveen Rajput

Leave a Reply

Your email address will not be published. Required fields are marked *