Notes On Financial Systems And Auditing

Words: 6680
Pages: 27

|NAME OF STUDENT |Hoang Ngoc Bich |
|UNIT TITLE |Unit 11: Financial Systems and Auditing |
|ASSIGNMENT TITLE |Accounting and Management Control Systems |
|ASSIGNMENT NO |1 of 2 |
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2 Book of Prime Entry

The information from source document will be copied daily into Book of prime entries such as Sales/ Purchase day book, Sales/ Purchase returns day book, Cash book and Petty cash book.

1 Purchase day book

When Millennium received invoices from its suppliers, the invoice will be check with the good receive note (GRN). If they are matched, the details will be recorded in Purchase day book. This book contains information such as name of supplier, date, quantity and amount of invoice. It also includes the purchase ledger folio for each supplier, which is a reference to the purchase ledger.

The detail in Purchase day book will then be posted to Purchase ledged weekly, and the total will be post in Nominal Ledger monthly.

The Sales day book is completed in the same way as Purchase day book. Sales day book is used to record list of all invoices that Millennium sends to customer. The different thing is that information in sales day book contains invoice number of each transaction.

2 Purchase returns day book

In case that Millennium returns certain amount of goods to supplier, the company’s payment made for the supplier will be reduced. The reduction in quantity of inputs, as well as the expense, will be recorded in Purchase returns day book. This book is presented in the same way as in Purchase daybook.

The sales return day book is also similar to purchase returns day book. It records the products which are sent back to