Accounts Receivable and Payable Management
Added on 2020-06-05
7 Pages1153 Words110 Views
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Accounting certificate 4
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1Question 1 Summary of steps to prepare bank reconciliation................................................1Question 2 Use of excel spreadsheet......................................................................................1Question 3 Outlining cause of discrepancy............................................................................1Question 4 Broad categories of conduct.................................................................................2Question 5 Producing journal entries ....................................................................................2Question 6 Recommendation to customers............................................................................3A) Table..................................................................................................................................3B) Attached in separate document..........................................................................................3C) Journal entry......................................................................................................................3Question 7 Accounts Receivables account.............................................................................3CONCLUSION................................................................................................................................4REFERENCES................................................................................................................................5
INTRODUCTIONAccounting is quite essential for the business to prepare accounting statements ineffective manner. Present report deals with preparation of subsidiary ledgers, passing journalentries for transactions. Moreover, bank reconciliation steps are also explained. Discrepancieshave been resolved in effective way to rectify mistakes and prepare accurate accounting records. Question 1 Summary of steps to prepare bank reconciliationBank reconciliation statement is quite useful for balancing accounts for attainingtransparency of total cash balance in effective way. There are five steps of completing bankreconciliation, they are listed below-1. First step is to enter date of bank statement and ending balances of both bank and book ofcompany in template.2. Next step is to scrutinise all outstanding checks that are already been recorded but not clearedby bank in the account.3. Outstanding deposits should be recorded for adjusting variance in bank and book balances.4. Outstanding adjustments shall also be recorded if cash account has been credited but bankbalance does not reflect the same (Fujimoto).5. Last step is to balance accounts and identify if discrepancy still occurs. If it prevails, then,accounting registers should be checked for analysing and correcting the balance.Question 2 Use of excel spreadsheetExcel spreadsheet is important for accounts receivable clerk. This is essential asoutstanding amount from debtors are required to be recovered. Accounting clerk analyses byentering data in excel and assess outstanding payment to be paid by customers. Credit sales canbe analysed in one row and adjacent to that money outstanding can be entered. Thus,organisation comes to know about amount and may easily collect from clients. Furthermore,excel can be used for preparation of graphs for assessing payment in pictorial representation. Question 3 Outlining cause of discrepancyThere is a discrepancy between bank statement and accounts payables subsidiary ledgerof Trusty Traders. There is a posting mistake as balance in bank statement was prepared up to 251
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