Money is a means by which the buying and selling process (commercial exchange) takes place, and it is used as a unit for measuring goods and services, and the money that the establishment obtains is deposited in the fund or in the bank.
Accounting treatment of cash on hand
The fund account is considered an asset account, and it is recorded on the debit side when cash amounts are deposited in it, and it is recorded on the credit side when withdrawals are made from it as follows:
The fund account is considered an asset account, and it is recorded on the debit side when cash amounts are deposited in it, and it is recorded on the credit side when withdrawals are made from it as follows:
Cash sales deposited in the fund
Inventory settlement of the fund
The establishment appoints an employee or a group of employees to supervise the fund (treasurer),
The establishment appoints an employee or a group of employees to supervise the fund (treasurer),
So that the amounts in the fund become in the custody of the treasurer and he is responsible for any shortage that occurs in it.
When inventorying the fund, the actual balance must match the book balance. If the actual balance
Less than the book balance, it means that there is a shortage, and if the actual balance is more than the book balance, this means that there is an increase
In the fund, and whether we have a deficit or an increase in the fund, this requires us to make the necessary inventory settlement.
Inventory settlement in case of deficit in the fund
This deficit occurs when the fund is inventoried and the actual balance is less than the book balance
This deficit occurs when the fund is inventoried and the actual balance is less than the book balance
Work pending settlement
And charging the treasurer with the value of the shortfall as follows:
If the disability is due to theft or another reason that the treasurer has nothing to do with, then in this case an account will be opened
The deficit of the fund is as follows:
Proof of the value of the deficit in the fund
At the end of the year, the deficit account is closed in the profit and loss account (income summary) as a loss as follows:
Charge the income for the period with the resulting disability
Inventory settlement in case of an increase in the fund
This increase occurs when the fund is inventoryed and the actual balance is greater than the book balance. In this case, a settlement entry is made with the value of the increase and considered
This increase occurs when the fund is inventoryed and the actual balance is greater than the book balance. In this case, a settlement entry is made with the value of the increase and considered
The company's revenue is added to the profit and loss account (income summary) as follows:
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