Treasury Closing Process

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Questions and Answers

What is the first step in the daily closing of a treasury?

The treasury maintains subsidiary registers. (correct)
The treasury officer draws up a balance memorandum.
The treasury officer checks the cash book with vouchers.
The treasurer makes totals of the cash book.

Who is responsible for checking the cash book against vouchers?

The clerk
The treasury officer (correct)
The treasurer
The Accountant

What document does the treasurer create after totaling both sides of the cash book?

Cash flow statement
Financial report
Balance sheet
Balance memorandum (correct)

What happens after the results of the balance sheet agree?

<p>The Accounts for the day are closed. (A)</p> Signup and view all the answers

What action is taken to secure the strong room at the end of the day?

<p>It is locked, sealed, and guarded. (B)</p> Signup and view all the answers

Study Notes

Treasury Closing Process

Subsidiary registers are maintained for receipts and payments, categorized by Major Head.
Daily totals from subsidiary registers are entered into the cash book by the Accountant.
The Accountant prepares a balance sheet based on the totals in the cash book.
The treasury officer verifies the cash book, comparing it to vouchers and postings in the subsidiary registers.
The treasury officer checks a portion of the totals, with a clerk overseeing the remaining totals.
The treasury officer prepares a balance memorandum, summarizing notes, coins, and comparing it with the actual balance in hand.
Once the balance sheet reflects the actual cash balance, the treasury officer signs the cash book and balance sheet.
After the closing procedures, the strong room containing the cash is double locked, sealed, and entrusted to a guard for the night.

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Description

This quiz covers the detailed procedures involved in the treasury closing process, including the maintenance of subsidiary registers, cash book entries, verification by the treasury officer, and the final locking of cash in the strong room. It is essential for accounting professionals to understand these steps to ensure accurate financial reporting and safeguarding of assets.