1. BILLSPAYABLE
WORKSHOP
Workshop outline
1. Introduction
2. Bills payable
a) Reports needed to reconcile bill
payable suspense account
b) Purpose of Bank Reconciliation
c) ) Accounting Entries
d) Closing
2. 1. INTRODUCTION
This workshop is mainly to assist the
Ministries how to reconcile their Bills
payable Suspense Account.
Each Ministry will have the opportunity
to do their respective recon and to
indentify their error's if any.
Also to understand the importance of
Reconciliation.
3. Purpose of Bank Reconciliation
To 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. 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
7. ACCOUNTING ENTRIES
WRITTEN BACK
DT - BILLS PAYABLE
SUSPENSE ACOUNT
CREDIT - VOTE (WITHIN THE
SAME FINANCIAL
YEAR.
UNCLAIMED
CHEQUES (PREVIOUS
FINANCIAL YEAR
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. DEFINITIONS Cont…
General Ledger
The government
accounting system. All
transactions are
recorded in the various
vote accounts or
suspense accounts and
reflect the transactions
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. 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. Write back of a valid cheque
A valid cheque may
have been written back
due to various reasons
such a cheque drawn
for a wrong amount,
wrong beneficary eg.
13. Write Back
It 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. 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. Bank Recon Form Issued cheques
Payroll(Credits) April 2011
Issued Cheques Bank General Ledger Differences
Reconciliation
List
16. Bank Recon Form Issued cheques
Accounts Payables(Credits) April
2011
Issued Cheques Bank General Ledger Differences
Reconciliation
List
17. Bank Recon Form Issued cheques
Accounts DSA(Credits) April 2011
Issued Cheques Bank General Ledger Differences
Reconciliation
List
18. Bank Recon Form Cash cheques
Accounts DSA(Debits) April 2011
Cashed Cheques Bank General Ledger Differences
Reconciliation
List
19. Bank Recon Form Cash cheques
Accounts Payroll(Debits) April 201
Cashed Cheques Bank General Ledger Differences
Reconciliation
List
20. Bank Recon Form Cash cheques
Accounts Payable(Debits) April 201
Cashed Cheques Bank General Ledger Differences
Reconciliation
List