Figure 22.

1 : Payroll Cycle
 Issue
Appointment
Letter

Employee
report for duty

Set up
Personal File
pay
allowances
deductions

Personnel File Establish

Employee
Earnings
Record

A
Employe
e
Earnings
Record

Figure 22.2 : Human Resource Department

Collect
Time Cards
 Time Cards

Prepare a
summary of hours
worked and
separate between
normal hours and
overtimes

Obtain
approval
from
officer

Time Cards
Summary
of Hours
Worked

To Human Resource Department

Figure 22.3 : Morning Hours Worked

From
various
department
 Time Cards
Summary of
Hours
Worked

Confirm the
accuracy of
the
Summary of
Hours

Record rate of
pay
Employee allowances,
Earnings deductions
Record from the
Employee

Prepare
Payroll
Register

Time Cards
S/Hours
Worked
Payroll Reg.
3 Reg.
Payroll
2

1 A
Payroll
Register
To Accounting
Department

D
To Cashier

Figure 22.4 : Computing the Payroll

From
Human
Resource
Departme
 1
Payroll Register

Prepare
Cheques and
obtain
approval
from officer

Payroll Register

Cheques

To Accounting Department

Figure 22.5 : Disbursement of Payroll

From From
Cashie Human
r Resource
Departme
 S/Hours
Cheques Worked
3
Payroll

Match
documen
ts

Distribute
cheques and
personnel
acknowledged
receipts on

S/Hourly
Worked
Payroll Reg.
3

Cheques

To Human Resources Department

To Personnel

Figure 22.6 : Distributing Payroll

From
Human
Resource
Departme
 3
Payroll Register

Bookkeeper Bookkeeper
records the records the
total basic total net pay
pay in Cash Book
allowances
and
deductions
in general

General Cash
Ledger Book

Figure 22.7 : Journalising the basic pay

General Cash
Journal Book
Bookkee
per posts Bookkeep
the total er posts
basic pay the total
allowanc net pay
es and
deductio
ns

General
Ledger

Figure 22.8 : Summarising the Journal