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Questions and Answers
What is the first step in the daily closing of a treasury?
What is the first step in the daily closing of a treasury?
Who is responsible for checking the cash book against vouchers?
Who is responsible for checking the cash book against vouchers?
What document does the treasurer create after totaling both sides of the cash book?
What document does the treasurer create after totaling both sides of the cash book?
What happens after the results of the balance sheet agree?
What happens after the results of the balance sheet agree?
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What action is taken to secure the strong room at the end of the day?
What action is taken to secure the strong room at the end of the day?
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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.
