Financial Management
Single EntryWhere do you find it?
Single Entry• Tracks key items
• cash
• bank
• Assets
• sales
• debtors?
Evolution
Double EntryConcepts
What is double entry?
Recording each voucher twice?
More jobs for
accountants?Backup system
for accounts?
Double EntryIllustration
Adapted from www.principlesofaccounting.com
Click graphic to skip
Adapted from www.principlesofaccounting.com
Click graphic to skip
Advantages
• Reduced errors
• Reduced fraud
AccountingPractice
ProofMemory
DetailsAccount Head
Vouch for
One side of double entryCash Control
AnalysisSecond side
of entry
Accounting Flow
SupportsBills & Cash Memos
Proper Support
• Genuine
• Address / contact information of vendor
• Prepared / signed / dated by vendor
• Clear description of items, rate, value
• No alteration
Taxi Payments• Vehicle number and model
• Driver / owner’s name, phone number, address
• Distance, places travelled
• Time and date
• Odometer reading
Checking Bills• Check…
• Items purchased are clearly shown
• Calculation (Price x Quantity)
• Totals
• Tick off the figures
• Look for Approval
• Mark As Paid after Payment.
Doubt
• Name of Buyer?
• Date of bill / cash memo
Further Reading
• AccountAble 2: Balancing the Accounts
• AccountAble 89: NGO Accounting
• AccountAble 90: Basis of Accounting
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