Cash and Account Receivable

1.1 When the bank reconciliation process was carried out on March 31, 20x1, there was a difference between the bank balance according to the books and the bank balance according to the checking account of Rp5,000,000. After checking again by accounting, it is known that the difference is because on March 30, 2021 payment has been received from the customer in the form of a transfer form and has been deposited with the bank, but the funds will only be effective in the company's account as of April 1, 2021. Meanwhile, the bookkeeping has been done on March 30, 20x1 so as not to become outstanding Receivables at the end of the month.

In your opinion, how should the recording of the above transactions be? Are corrections made on the books side, or on the bank balance? Include your reasons

1.2 In your opinion, how important is the cash opname and bank reconciliation process? Include your reasons

Expert Solution

A Transfer Form is an order from the Drawer to the Interested Bank to make a book entry of a specific amount of funds to the Beneficiary's account. The following general principles apply when using Transfer Form: As a method of placing book-entry orders. Any funds deposited in a checking account will be rewarded with interest by the bank. Various methods are used to calculate the amount of interest to be paid on demand deposits. The most common calculation method is to use the lowest balance, which means that interest is calculated from the month's lowest (remaining) balance. Aside from the lowest balance method, some banks use the average balance or daily balance method.

1.1 There is a difference between the bank balance according to the books, and the bank balance according to the current account of IDR 5,000,000. This is because the company has recorded receipt of payment of receivables on March 30, 2021, while the new funds will be effective in the bank on April 1, 2021. Thus, the resulting effect is the balance according to the books, which is higher than the balance according to the bank.

In practice, corrections will be made on the bookkeeping side, because the new company will reduce the value of receivables, when the payment has actually been received by the company, either in cash (cash) or a bank with notes that have been effectively recorded in the company's current account for that month. So, upon closing on March 30, 20x1 and there are no effective funds on that date, the company will not record payment receipts from customers.

In addition, in this example, the customer provides a transfer form that is effective as of April 1, 2021, thus the new bank will carry out the clearing process on that date. It should be considered that there is a potential for the customer's checking account balance to not have sufficient balance when the bank transfer process is carried out, commonly known as Not Sufficient Funds (NSF), if this happens, no money will be received by the company.

Therefore, the recording of receipt of payments on March 30, 20x1 which has been recorded at the company side needs to be corrected and recorded when the funds have been effectively received in the company account.

Correction of Deposit in Transit on the bank side is generally used by companies for recording cash deposit transactions with their own funds. For example, the company uses a cash pick up service to make daily cash deposits to the bank, for example on Friday the cash pick up service only arrives in the afternoon, so that new deposits can be made on Monday, for this transaction, the company will record a Deposit in Transit is debited, and Cash on Hand is credited.

1.2 Cash Taking and Bank Reconciliation are important and need to be carried out regularly by the company. The majority of the answers from colleagues were correct, among others, cash opname was carried out to ensure the balance recorded in the company's books was in accordance with the physical money available, and bank reconciliation in principle was the same, namely ensuring that the balance recorded in the company's books was in accordance with what was stated in the checking account. bank. When a discrepancy is found, it can be traced whether there was a wrong record or even an indication of fraud. We know that in accounting records there must always be a balance for debit and credit balances, if it is known that there is a difference when a cash opname or bank reconciliation is carried out, then surely the difference will also have an impact on other accounts that become counter accounts when the journal process is carried out.

For example, the cashier receives cash from a customer of IDR 300,000 as a down payment. However, when it was recorded, the cashier recorded IDR 3,000,000 with a cash-on-hand debit journal and customer deposit credit. This causes when the cash opname process is carried out, the balance in the books is larger by IDR 2,700,000 and directly causes the customer deposit account balance to be IDR 2,700,000, so corrections are needed

Cinnamon answered 2 years ago

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