Question

Gloria's Fabrics is a large fabric provider to the general public. The accounting office has three employees: accounts receivable clerk, accounts payable clerk, and full charge bookkeeper. The accounts receivable clerk creates the sales invoices and records the cash receipts, the accounts payable clerk creates and pays the purchase orders, and the full charge bookkeeper reconciles the checking account.

Choose one of the three jobs. Identify the accounts and describe the transactions that would be recorded by that assigned job. What effect would each transaction have on each account? How would each member of the accounting department work together to present accurate information for the decision makers?

Answer 1

I am Going to tell about the payable clerk

Which he is responsible for choosing Vendor who can supply the products at cheaper Price and Provide discount for early payment and Ensure the payments are made in time with the intention to avail the discounts provided by the seller. and also taking decision if there is any quantity or turnover discount which may be provided by the Seller on reaching specified Target.

Impact on each Account:

1.Tax payment on sales ,Ensure the avail the tax credits and benefits as soon as it is available and ensure required tax returns have been submitted on time without any penalty or fees for delaying the returns or payment of tax . And Avail tax credits on due time.So that Tax payments can be managed

2.Inform the Managers earlier regarding Funds needed to place orders and Specify the time and amount required and send a statement to senior manager regarding funds needed.

3.Choose the buyer who can responsible for orders placed at him with respect to ,, Damages in transit , sent unusable or spoiled Products, For this the buyer have to replace the product without incurring any penny towards transportations and so

4.The clerk should check any of items got damaged on receipt of goods and Intimate the same to the seller immediately and make sure that ,the seller has taken appropriate action and Follow up the seller on their actions till reach the Recoverability.

5.Ensure the payments to different suppliers have been made on time with terms of sale

6.Clerk Must make all accounting entries pertaining to transactions and ensure it is reflected on appropriate statements on time including the tax payments thereon.,,

7.He is responsible to keep the details pertaining to supplier and any agreement or contract have been entered ,,Keep observe the documents, Agreements, contract, and their terms before placing the orders with supplier and ensure the terms are met on time. And He also responsible to maintain any of goods issued to any of the departments he should maintain issues with the same.

8.Inform to all suppliers whenever the payments have been made and update the same on their books and Keep the invoices securely and Ensure Update the Information in the books by end of day.

9.Follow the rules which is required to follow as per Federal Laws or State Laws and Ensure relevant laws are complied with while placing the orders with the vendors and ensure they have all appropriate permissions to sell the same

10.Finally Report the all the data to senior Manager of accounts, wherever appropriate to all other entitled persons regarding the purchases and Represent the graph and their issues with the departments.

For Decision Makers

He should mention all Purchases happened and the amount of purchases , Cost of good sold or utilised in the business and Trends and ratios of each month and quarter or year with respect to the last year Purchases .So that they will help in analysing with the company turnover whether such purchases increases the corresponding sales.and also relevant tax payments.