Bills payable workshop

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Bills payable workshop

  1. 1. BILLSPAYABLEWORKSHOP Workshop outline1. Introduction2. Bills payable a) Reports needed to reconcile bill payable suspense account b) Purpose of Bank Reconciliation c) ) Accounting Entries d) Closing
  2. 2. 1. INTRODUCTIONThis workshop is mainly to assist theMinistries how to reconcile their Billspayable Suspense Account.Each Ministry will have the opportunityto do their respective recon and toindentify their errors if any.Also to understand the importance ofReconciliation.
  3. 3. Purpose of Bank ReconciliationTo ensure that the balance of the outstanding cheques at the end of a month and financial year is the same as the balance in the General Ledger on the Bills Payable Suspense Account. To ensure that all cheque payments have been accountant for in the General Ledger.
  4. 4. REPORTS NEEDEDIssued Cheque ListCash Cheque ListWritten Back Cheque List (Voide)Treasury Outstanding Cheque listIFMS Cheque Analysis ReportIFMS Account Analysis Report
  5. 5. ACCOUNTING ENTRIES ISSUED CHEQUES DEBIT - VOTE CREDIT- BILLSPAYABLE SUSPENSE ACCOUNT
  6. 6. ACCOUNTING ENTRIES Cont… CASH CHEQUE (BANKED) DEBIT - BILLSPAYABLE SUSPENSE ACCOUNT CREDIT - STATE ACCOUNT (ASSET ACCOUNT DECREASE WHEN FUNDS FLOWS OUT)
  7. 7. ACCOUNTING ENTRIES WRITTEN BACK DT - BILLS PAYABLE SUSPENSE ACOUNT CREDIT - VOTE (WITHIN THE SAME FINANCIAL YEAR. UNCLAIMED CHEQUES (PREVIOUS FINANCIAL YEAR
  8. 8. BILLS PAYABLE It also records all cheques issued by the various cheques generating systems, e.g Payroll, DSA, Accounts Payable, Manual cheques, IRD cheques.
  9. 9. DEFINITIONS Cont…General LedgerThe government accounting system. All transactions are recorded in the various vote accounts or suspense accounts and reflect the transactions
  10. 10. Bills Payable Suspense Account Suspense Account for every Ministry reflecting the movements of cheque. This is the Ministry Bank Account and it prescribe in terms of Treasury Instruction FD0301 (d)
  11. 11. STATE ACCOUNT• The name of the Government’s Bank Account. The suspense account in the General Ledger is also called “State Account” Ministries are not allowed to use this suspense account. All transactions for State Account are recorded and reconciled by the Ministry of Finance (Office of the Accountant General)
  12. 12. Write back of a valid cheque A valid cheque mayhave been written backdue to various reasonssuch a cheque drawnfor a wrong amount,wrong beneficary eg.
  13. 13. Write BackIt is the responsibility of the line Ministry to ensure that the correct accounting procedures, as detailed above are followed in respect of cancelled/written back cheques.
  14. 14. Write BackAccounting entries in respect of each such cheque should be verified by a line ministry with the help of monthly General Ledger Statements.
  15. 15. Bank Recon Form Issued cheques Payroll(Credits) April 2011Issued Cheques Bank General Ledger Differences Reconciliation List
  16. 16. Bank Recon Form Issued cheques Accounts Payables(Credits) April 2011Issued Cheques Bank General Ledger Differences Reconciliation List
  17. 17. Bank Recon Form Issued cheques Accounts DSA(Credits) April 2011Issued Cheques Bank General Ledger Differences Reconciliation List
  18. 18. Bank Recon Form Cash cheques Accounts DSA(Debits) April 2011Cashed Cheques Bank General Ledger Differences Reconciliation List
  19. 19. Bank Recon Form Cash chequesAccounts Payroll(Debits) April 201Cashed Cheques Bank General Ledger Differences Reconciliation List
  20. 20. Bank Recon Form Cash chequesAccounts Payable(Debits) April 201Cashed Cheques Bank General Ledger Differences Reconciliation List

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