10.0 FINAL ACCOUNTS/END OF PERIOD OR YEAR ACCOUNTING This chapter is introducing with the focus that the organization will grow larger in scope, that activities initially carried out by single officers may grow into sections and departments headed by well-trained and experienced officers. Secondly, the Final Accounts Process in any organization is an essential co-ordinating and consolidation function, which summarized all the company ‟ s operations in financial terms, showing the true face and health of the company. therefore, the function of the Final Accounts Section whether manned by a single officer or a group, are: 65 - Collating all relevant daybooks, summarizing them into journal before passing into the general or Expenses Ledgers. - Posting the General and Expenses Ledgers monthly from the daybook summary. - Extraction of monthly Trial Balance. - Preparation of Final Accounts with supporting schedules - Keeping and updating the Fixed Assets Register and preparation of monthly additions and disposal ‟ s schedule. - Initiation of journal adjustments and posting same into the Ledger. 10.2 BOOKS TO BE MAINTAINED - General and Expenses Ledgers, - Fixed Assets Registers, - Journal Book 10.3 FINAL ACCOUNTS PROCEDURES The various transactions of the company shall be recorded in the primary books on a daily basis, or as close to the transaction date as possible. These books of primary entry ‟ form the first point for transaction from the originating documents such as receipts, bill and invoices to the main accounting books, the Ledgers. Other primary books maintained by the company apart from Cash Books and Cheque Summary Register includes the Revenue Register, Purchases daybook which record particulars of goods and services acquired on credit, to facilitate the recognition of the liabilities for them and the Return Outwards Register which collate the values of goods returned suppliers to enable the recovery of prices paid or reversal of liabilities taken on them. Other transactions, which do not fall into any of the above, are entered through the journal may be possible for any of the mentioned transaction to be entered through the Journal but in order to economize labour, ensure consistency and facilitate analysis of figures, the above books are used for the collation of the particular types of transactions while the journal vouchers are used for miscellaneous transactions such as transfer from one account to another, reversal,
66 correction or adjustment of previous accounting entries and other transactions of a special nature. 10.3.2 Authorization Of Journal All Journals Vouchers should be raised from one central point, that is, the Final Accounts Section and must be authorized/approved by the Head of Finance before they are entered in the Ledger Accounts.
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- Fall '19
- Balance Sheet, Credit card, Cheque