Bills payable workshop
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Transcript of Bills payable workshop
BILLSPAYABLE BILLSPAYABLE WORKSHOPWORKSHOP
Workshop outline1. Introduction
2. Bills payable
a) Reports needed to reconcile bill payable suspense account
b) Purpose of Bank Reconciliation
c) ) Accounting Entries
d) Closing
This workshop is mainly to assist the Ministries how to reconcile their Bills payable Suspense Account.
Each Ministry will have the opportunity to do their respective recon and to indentify their error's if any.
Also to understand the importance of Reconciliation.
1.1. INTRODUCTIONINTRODUCTION
Purpose of Bank ReconciliationPurpose of Bank Reconciliation
To ensure that the balance of the outstanding cheques at the end of a month and financial year is the same as the balance in the General Ledger on the Bills Payable Suspense Account. To ensure that all cheque payments have been accountant for in the General Ledger.
REPORTS NEEDEDREPORTS NEEDED
Issued Cheque ListCash Cheque ListWritten Back Cheque List (Voide)Treasury Outstanding Cheque listIFMS Cheque Analysis ReportIFMS Account Analysis Report
ACCOUNTING ENTRIESACCOUNTING ENTRIES
ISSUED CHEQUES
DEBIT - VOTECREDIT- BILLSPAYABLE
SUSPENSE ACCOUNT
ACCOUNTING ENTRIES Cont…ACCOUNTING ENTRIES Cont…
CASH CHEQUE (BANKED)DEBIT - BILLSPAYABLE
SUSPENSE ACCOUNTCREDIT - STATE ACCOUNT (ASSET
ACCOUNT DECREASE WHEN FUNDS FLOWS OUT)
ACCOUNTING ENTRIESACCOUNTING ENTRIES
WRITTEN BACK DT - BILLS PAYABLE
SUSPENSE ACOUNTCREDIT - VOTE (WITHIN THE
SAME FINANCIAL YEAR.
UNCLAIMED CHEQUES (PREVIOUS
FINANCIAL YEAR
BILLS PAYABLEBILLS PAYABLE
It also records all cheques issued by the various cheques generating systems, e.g Payroll, DSA, Accounts Payable, Manual cheques, IRD cheques.
DEFINITIONS Cont…DEFINITIONS Cont…
General LedgerThe government accounting system. All transactions are recorded in the various vote accounts or suspense accounts and reflect the transactions in the bank statement.
Bills Payable Suspense AccountBills Payable Suspense Account
Suspense Account for every Ministry reflecting the movements of cheque. This is the Ministry Bank Account and it prescribe in terms of Treasury Instruction FD0301 (d)
STATE ACCOUNTSTATE ACCOUNT
• The name of the Government’s Bank Account. The suspense account in the General Ledger is also called “State Account” Ministries are not allowed to use this suspense account. All transactions for State Account are recorded and reconciled by the Ministry of Finance (Office of the Accountant General)
Write back of a valid chequeWrite back of a valid cheque
A valid cheque may have been written back due to various reasons such a cheque drawn for a wrong amount, wrong beneficary eg.
Write BackWrite Back
It is the responsibility of the line Ministry to ensure that the correct accounting procedures, as detailed above are followed in respect of cancelled/written back cheques.
Write BackWrite Back
Accounting entries in respect of each such cheque should be verified by a line ministry with the help of monthly General Ledger Statements.
Bank Recon Form Issued cheques Bank Recon Form Issued cheques Payroll(Credits) April 2011Payroll(Credits) April 2011
Issued Cheques Bank Reconciliation List
General Ledger DifferencesIssued Cheques Bank Reconciliation List
General Ledger Differences
Bank Recon Form Issued cheques Bank Recon Form Issued cheques Accounts Payables(Credits) April Accounts Payables(Credits) April
20112011
Issued Cheques Bank Reconciliation List
General Ledger Differences
Bank Recon Form Issued cheques Bank Recon Form Issued cheques Accounts DSA(Credits) April 2011Accounts DSA(Credits) April 2011
Issued Cheques Bank Reconciliation List
General Ledger Differences
Bank Recon Form Cash cheques Bank Recon Form Cash cheques Accounts DSA(Debits) April 2011Accounts DSA(Debits) April 2011
Cashed Cheques Bank Reconciliation List
General Ledger Differences
Bank Recon Form Cash cheques Bank Recon Form Cash cheques Accounts Payroll(Debits) April 201Accounts Payroll(Debits) April 201
Cashed Cheques Bank Reconciliation List
General Ledger Differences
Bank Recon Form Cash cheques Bank Recon Form Cash cheques Accounts Payable(Debits) April 201Accounts Payable(Debits) April 201Cashed Cheques Bank
Reconciliation List
General Ledger Differences