Sendayu Senja Supplies Sdn Bhd is a printing supplies company, which located in Penang. The company supplies printing materials to the printing companies around Penang, Kedah and Perlis. As an internal audit executive, you have been instructed by the manager of the company to prepare a documentation for an existing company’s cash receipt procedure. At present, all the processes and accounting records maintained are fully in manual mode. Narrative of the procedure is described as follow:
Para 1:
A company secretary receives mails from customers which contains cheque and remittance advice. She compares the amount stated on the cheque and the remittance advice to ensure the accuracy of the payment made. She then completes a cheque receipt listing in duplicate copies. The first copy of the cheque receipt listing and cheques (in batch) are forwarded to cashier for deposit. Another copy of the cheque receipt listing together with the remittance advices (in batch), are taken to the accounts receivable department.
Para 2:
Cashier calculates to ensure total of the cheque amount agrees with cheque receipt listing. When the cheque amount agrees with the listing amount, the cashier prepares duplicate copies of deposit slips. The cheques and deposit slips will be taken to bank for deposit.
Para 3:
A validated deposit slip from bank is later used by cashier to update cash receipt journal and prepares a cash receipt summary. Finally, the cashier chronologically filed validated deposit slip and cheque receipt listing and forwards the cash receipt summary to general ledger department.
Para 4:
Accounts receivable clerk updates accounts receivable subsidiary ledger based on the amount stated in remittance advice and cheques receipt listing. Then, accounts receivable summary is prepared and forwarded to general ledger department. Finally, the accounts receivable clerk attaches cheque receipt listing to the remittance advice and filed by customer number.
Para 5:
At the end of each month, accounts receivable clerk prepares a customer’s monthly statement and accounts receivable aging report. The monthly statement is mailed directly to the respective customer while the aging report is forwarded to financial controller.
REQUIRED:
Prepare the following documentations to describe cash receipt processes applicable for Sendayu Senja Supplies Sdn Bhd.
(a) Table of Entities and Activities
(b) Context Diagram
(c) Physical DFD
(d) Logical DFD
(e) Document flowchart
(a) Table of entities and activities
|
Entity |
paragraph | Activities |
|
Secretary |
1 | Receive cheque and remittance advice from Customer |
