INDEX

Particulars Page #

1. List of Books and Registers Required to be Maintained 1-1

2. List of Statements to be Prepared 1-1
3. Proposed Organization Chart 1-1
4. Cash Receipts and Payments 2-2
5. Procurement 3-3
6. Store Keeping 4-4
7. Production 4-4
8. Sales and Collections 5-5
9. Accounts 6-6
10. Reconciliation Statements 7-7
11. Bank Account 7-7
12. Format – Purchase Register 8-8
13. Format – Store Register 8-8
14. Format – Production Register 8-8
15. Format – Sales Register 8-8
16. Format - Debtors Register(Individual) 8-8
17. Format – Creditors Register(Individual) 8-8
18. Format – Purchase Statement 9-9
19. Format – Production Statement 9-9
20. Format – Sales Statement 9-9
21. Format - Cash Collection Report (Daily) 9-9
22. Format – Material Receiving Report 10-10
23. Format – Store Requisition Slip 11-11
24. Format – Monthly Accounts 12-16

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 ACCOUNTING AND INTERNAL CONTROL MANUAL
For
SANGKALPA BAKERY

(An Income Generating Project of Ananda)

House # 88/A, Road # 23, Banani, Dhaka.

A. LIST OF BOOKS AND REGISTERS REQUIRED TO BE MAINTAINED:

(i) Cash Book

(ii) General Ledger
(iii) Purchase Register
(iv) Store Register
(v) Production Register
(vi) Sales Register
(vii) Debtors’ Register
(viii) Creditors’ Register

B. LIST OF STATEMENTS TO BE PREPARED:

(i) Purchase Statement

(ii) Production Statement
(iii) Sales Statement
(iv) Cash Collection Report
(v) Salary Statement

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C. PROPOSED ORGANIZATION CHART ( FOR THIS IGP ONLY)

PROJECT CO-ORDINATOR

Factory Manager Procurement Marketing Store Keeper Accountant

Personnel Executive

Production Head Distributors

Workers

D. CASH RECEIPTS AND PAYMENTS:

(i) General:

All the receipts and payments will be dealt with centrally. That is, the Accountant should
receive all the sale proceeds and pay all the expenses. No cash transaction should be made by
any person other than the Accountant. The Accountant should make necessary entries in the
Cash Book, prepare vouchers in accordance with nature of receipts and payments on daily
basis. The amount of cash in hand should be kept in the volt placed in the Accountant’s office.
The key of such volt should remain with the Accountant so that he / she can be held
responsible for any deficit. The amount of cash in hand should be counted by the Project
Coordinator or any person authorized by him on a random basis to confirm the correctness by
comparing with the balance appearing in the cash book.

(ii) Receipts:

The Accountant should receive the sale proceeds collected by the Marketing Executive or any
amount from any other person and acknowledge the receipts by giving appropriate receipts or
by putting signature on the Daily Collection Statement prepared by the Marketing Executive.

(iii) Payments:

The Accountant should pay any amount against any document if it is properly approved by the
Project Coordinator or any other person authorized in this connection. Without any prior
approval no payment should be made by the Accountant.

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Flow Chart of Cash Transactions:

Documents Project Coordinator

checks and approves

Pays Accountant
/adjusts
And
Records on
the basis of
approved
documents.

Receives
sale
proceeds
and
records

E. PROCUREMENT:

Raw Materials should be purchased by the Procurement Personnel. Being requested by the
concerned person he/she should give requisition for such purchase to the Project Coordinator
by a Purchase Requisition Slip (PRS) which should contain the description of the items and
expected amount required. The Accountant should pay the requisite amount if and only if it is
approved by the Project Coordinator. The amount paid should be booked against the Personal
Account of the concerned person and remain as advance until vouchers have been submitted
along with the Material Receiving Report (MRR) given by the Store Keeper.

The Procurement Officer should maintain a Purchase Register containing the date, quantity,
price, etc.

For purchase of basic raw materials some reputed Suppliers may be enlisted to supply those as
and when required. In this case payment should be made directly to the Supplier provided that
the bill is accompanied by the MRR and approved by the Project Coordinator or any other
person authorized in this behalf.

Purchase in small lots should be reduced as much as possible to curtail the associated costs.

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Flow Chart for Procurement:

Concerned Requisition slip Project

persons request prepared by Coordinator
Procurement Procurement checks and
Personnel for Personnel. approves
items

Accountant pays Procurement Store Keeper

and records as Personnel procures Receives and
advance against. and records in the Records in the
Personal A/C Purchase Register. Store Ledger.
Prepares MRR

Procurement
Personnel submits
vouchers with MRR to
Project Coordinator
for approval.
Accountant adjusts
Approved documents the advance and
submitted to the records in General
Accountant for Ledger in appropriate
adjustment/ heads.
payment.

F. STORE KEEPING:

The Store Keeper should maintain a Store Register. He/she should make entries for every
single purchase in the store register even if it is immediately required by the production
section. He/she should check the materials against the invoice in terms of quantity and quality
and prepare a Material Receiving Report (MRR) as per the prescribed format. The key of the
Store should be held by the Store Keeper. He/she should issue the materials against the Store
Requisition Slip (SRS) signed by the Factory Manager or any other person and make necessary
entries in the Store Register. Physical Stock Taking should be conducted by the Project
Coordinator or by any other person authorized by him on a random basis.

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Flow Chart for Store Keeping:

Store Keeper Prepares MRR in Receives SRS

Receives two folds and from concerned
materials from records in Store Persons, issues
Procurement Ledger. and records.
Personnel

Store Register is updated

and balance of every item
must balance with the
physical stock given that
there is no wastage.

G. PRODUCTION:

A Production Register ( or Finished Goods Register) should be maintained by the Factory

Manager. This Register should also contain the information about the products taken out from
the factory premises for sale or otherwise.

At the end of every working day the Factory Manger should prepare a Production Statement
and a statement of Materials-in Process the copies of which should be given to the Project
Coordinator on the subsequent day.

The Factory Manager should maintain an Attendance Register for the production workers.

H. SALES AND COLLECTIONS:

A Sales Register should be maintained by the Factory Manager which should contain the
name of the buyer, particulars of products supplied, quantity and price and amount received.

A sales statement should be prepared on a daily basis the copy of which should be given to the
Production Coordinator on the subsequent day.

Pre-numbered invoices should be raised in triplicate for every customer by the Factory
Manager. The Customer should acknowledge the receipt by putting signature on these when
the products are distributed to them by the distributors.

Persons responsible for distributions should not collect the sales proceeds.

Retail sales from factory should be strictly prohibited. A separate system for retail sale may be
introduced. For example, a retail shop may be set up or mobile cars may be used for retail
sales. In this case the person responsible for such shop or such car should be treated as the
customer whose name also should be included in the debtors’ register.

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The Accountant should account for the sales as per the sale proceeds receipts on a daily basis.
At the end of the each month the amount of credit sales should be accounted for with the help
of Sales Register so that total sales during the month can be arrived at. The month’s total of
the Sales Register must balance with the amount of cash sales plus the debtors given that
there is no discount or rebate on sales.

With the help of Sales Register, Invoice and Debtors’ Ledger the Marketing Executive should
raise cash memo in triplicate (one for customer, one for accounts and the other for himself) for
collection of sales proceeds. He should maintain a Debtors’ Register for every individual
customer which should contain the details of credit sales and recovery thereof.

At the end of each month the Accountant should examine the Sales Register, Debtors’ Register
and the Sales A/C in the General Ledger to confirm that all the sales and recovery thereof
have been properly accounted for.

Flow Chart for Sales and Collections:

FM records all sales in

Production FM records in the the Sales Register as
completed Production register in the soon as it is out of
(Finished IN or Production column. factory premises and
goods.) raises invoices in
triplicate for sales. Also
records in the Production
Register on the OUT
column.

Salesmen distributes ME collects sales

to the customers with
the invoices and get
signed these by the
customers.
proceeds from the ME deposits money
customers with memo with the cash memo to
prepared by him and Accountant and
records in the Accountant
Customers’ Register. Acknowledge the
receipts. ME retains
the third copy of
memo.

Accountant records sales in

the Cash Book and at the
end of each month pass a
journal entry for
outstanding sales and
reverses it at the beginning
of the next month. Total
sales balance with the total
of sales register.

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I. ACCOUNTS:

The Accountant should prepare monthly Accounts, e.g. Receipts and Payments Accounts,
Manufacturing Account, Trading Account, Profit and loss Account and Balance Sheet.

J. RECONCILIATION STATEMENTS:

The Accountant should prepare the following reconciliation statement at the end of the each
month:

(i) Quantity Reconciliation Statement for Raw Materials, Production and Sales.
(ii) Debtors, Creditors and IGP Current Account reconciliation statement.

K. BANK ACCOUNT:

Taking into consideration the size and volume of transactions of the Organization it is
recommended that no bank account for individual project should be opened rather a mother
bank account should be opened for all the Income Generating Projects (IGP). Each individual
project should maintain a IGP Current Account for all the bank transactions.

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A. PURCHASE REGISTER

Date Item name Name of the Qnty. Rate Amount Mode of Remarks
supplier Purchase

B. STORE REGISTER

Date Particulars RECEIPT ISSUE BALANCE

Qnty. Rate Amount Qnty. Rate Amount Qnty. Rate Amount

C. PRODUCTION REGISTER

Date Item name Qnty.

D. SALES REGISTER

Date Buyer's Name Invoice no. Amount Remarks

E. DEBTORS REGISTER(individual)

Date Invoice no./Money Receipt # Debit Credit Balance

F. CREDITORS REGISTER(individual)

Date Item name Debit Credit Balance

G. PURCHASE STATEMENT: DATE……………………

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 Item name Name of the Qnty. Rate Amount Mode of Remarks
supplier Purchase

H. PRODUCTION STATEMENT DATE……………………

Item name Qnty.

I. SALES STATEMENT DATE ………….……………

Buyer's Name Invoice no. Amount Remarks

J. CASH COLLECTION REPORT (Daily) : DATE …………………………

Name of the Party Ledger Folio # Money Receipt # Amount Remarks

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 SANGKALPA BAKERY
House # 16/B, Road # 23, Banani, Dhaka – 1213.
Tel: 606425, 9885018, Fax: 883907

MRR No. ……….. Date ………………………

MATERIAL RECEIVING REPORT

Sl. No. Name of the Item Qnty. Rate Value

Total Value

Total (in word): Taka……………………………………………………………………………………………..…

Signature of Store Keeper

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 SANGKALPA BAKERY
House # 16/B, Road # 23, Banani, Dhaka – 1213.
Tel: 606425, 9885018, Fax: 883907

SRS No. ……….. Date ………………………

From: …………………………..
…………………………..
…………………………..
STORE REQUISITION SLIP
Sl. No. Name of the Item Quantity

Received by Requisitioned by Recommended by Approved by

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 S A N G K A L P A B A K E R Y
BALANCE SHEET
as on ……………………..
End date of End date of last
Particulars present month month

SOURCE OF FUND :
Loan from ANANDO
Sundry Creditors
Accrued Expenses
Profit & Loss Account

Total

APPLICATION OF FUND :

Cash in Hand
IGP Current Account
Closing Stock:
Finished Goods
Work - in - progress
Raw Materials
Accounts Receivable
Advance & Prepayments
Investment

Total

Accountant IGP Co-ordinator

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 S A N G K A L P A B A K E R Y
MANUFACTURING, TRADING & PROFIT & LOSS ACCOUNT
FOR THE MONTH OF ……

Current Up to Current
Particulars Note Ref. Month Last Month Month
Sales 1.00
Less: Cost of Goods Sold
Opening Stock
Add: Purchase 2.00

Less: Closing Stock

Add: Direct Overhead 3.00
Add: Office and Administrative
Overhead 4.00

Profit and Loss Account-trf. To

Balancs Sheet

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NOTES:
Current Up to Current
1.00 SALES : Month Last Month Month

Cash Received
Accounts Receivable
Total

Current Up to Current
2.00 PURCHASE : Month Last Month Month

Flour
Eggs
Oil
Milk
Kismis
Murubba
Chicken
Beef
Charry
Cinamon
Mayonis
Nut
Gur
Yeast
Vanela
Baking Powder
Gralic
Onion
Vegetables
Fruits
Printing & Stationery
Salt
Black Paper
Sugar
Butter
Chocolate
Fooding
Gengar
Tea
Others (Fooding Chemicals)
Total

Accountant IGP Co-ordinator

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 Current Up to Current
3.00 DIRECT OVERHEAD: Month Last Month Month

Salary to Factory Workers

Carriage Inward
Repairs & Maintenance
Overtime Bill
Washing Charges
Chemist
Total

Current Up to Current
4.00 OFFICE & ADMINISTRATIVE OVERHEAD: Month Last Month Month

Printing & Stationery

Telephone Bill
Conveyance
Carriage Outward
Salesman's Commission
Van Driver's Salary
Total

Accountant IGP Co-ordinator

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 S A N G K A L P A B A K E R Y
RECEIPT & PAYMENT ACCOUNT
FOR THE MONTH OF ……

Up to Current
RECEIPTS: Current Month Last Month Month
Opening balance
Sales
Sundry Debtors

Total Receipts - - -

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 Up to Current
PAYMENTS Current Month Last Month Month
Revenue Items:
Flour
Eggs
Oil
Milk
Kismis
Murubba
Chicken
Beef
Charry
Cinamon
Mayonis
Nut
Gur
Yeast
Vanela
Baking Powder
Gralic
Onion
Vegetables
Fruits
Printing & Stationery
Salt
Black Paper
Sugar
Butter
Chocolate
Fooding
Gengar
Tea
Telephone Bill
Others (fooding chemicals)
Conveyance
Carriage Inward
Carriage outward
Repair & Maintenance
Salary & Allowances
Salesman's Commission
Overtime Bill
Van Driver Salary
Washing Charges
Chemist
Capital Items:
Loan A/C-ANANDO
Cooking Materials
Kitchen's Materials
Investment
Total Payments - - -
Closing Balance
Total - - -
Accountant IGP Co-ordinator

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