Cahier duty

The cashier should count the cash and compare the total with the cash book balance. It is useful to
record the cash count so that if a difference arises in the future.

=VLOOKUP(L22:L38,'[Payroll Worksheet Jun20.xlsm]Main Payroll'!

$C$14:$J$350,8,)
 Daily Cash Payments
 Preparing of cash payment voucher
 Daily and weekly Cash count
 Submission of transfer letters to bank
 Withdrawal of Cash from bank through cheque for office petty cash payments
 Providing requested payment vouchers for Auditors and other finance staff when needed
 Receiving of field monthly documents and filling.
 Arrangement of finance filing system
 Cash journal maintenance
 Communication with banks and other organization for official issues when needed
 Documents copying for finance
 Any other duty assigned by supervisor or senior staff

Tax definition:
Tax is a compulsory payment collected from natural and legal persons in accordance with the
previsions of this low for purpose of financing of government and social welfare without
taxpayer receiving any direct goods or services from the government.

Tax conclusion:

a) Tax on income (Article4)

1) Tax on Income in foreign currency shall be converted to Afghanis for the purpose of taxation.

2) Tax on income (Salary) for legal persons:

1 0-5000 AFN 0% 0

2 5001-12500 AFN 2% 150 AFN

3 12501- 100,000 AFN 10% add (150AFN) 8750+150 =8900AFN

 4 Above 100,001 AFN 20% add(8900AFN) 20%+8900=

Example: 255000

255000-100,000=155000*20%=31000 step 1

100,000-12500=87500*10%=8750 step 2

12500-5000=7500*2%=150 step 3

Total tax= 39900

3) Tax on natural persons: the income tax of legal person= 20%

b) Tax on rent: (Article59)

1 10,000 - 100,000 AFN 10%

2 Above 100,000 AFN 15%

c) Tax on contractors: a person who has without business license they have to paid7% tax but
who has business license they have to paid2% tax.

Daily tax wages:

164 AFN – 411 AFN= 2%

Above 411=10%

Example 2000

Step 1) 2000-411=1589 *10%=158.9

Step 2) 411-164=247*2%=4.94

Step 3) 158.9+4.94=163.84

Voucher: it is a documentary evidence for a transaction

A document which serves as an evidence of the disbursement of cash or of the authority to
disburse cash is known as voucher.
Trail Balance: it is a statement of all ledger accounts taken together with their respective debit or
credit balance on a particular date to check the arithmetical accuracy of the books of accounts.
Transaction: it is dealing between two or more persons involving exchange of goods or services
for cash of credit
Trade discount: it is an allowance given on catalogue price of goods by the wholesaler to the
retailer and is deducted from the price of goods which is not recorded in the books of accounts.
Sundry debtor: to all customer goods sold and cash is still due
Pass book: a book maintained by the banker to record banking transactions between the banker
and the customer
Petty cash book: an account book in which records of small payment transaction large in
number are maintained.
Posting: it is the process of transferring entries from journal into ledger.
Historical cost principle: an asset is ordinarily recorded in the accounting records at the price
paid to acquire it at the time of acquisition and the cost becomes the basis for the accounts during
the period of acquisition and subsequent accounting periods.
INVOICE: a business document sent by a seller to a purchase giving details of goods supplied
as to their price, quantity, weight total, and value etc.
Journal entry: summarized records of business transaction.
Ledger folio: a serially arranged page number of ledger.
DOUBLE ENTRY SYSTEM: it refers to a system of accounting under which two-fold aspect
i.e. Debit or credit there must be a corresponding credit of equal amount. Or have both effect
debit and credit.

Asset: An asset is a resource with economic value that an individual, corporation or country

owns or controls with the expectation that it will provide a future benefit. We have different kind
of assets:

Tangible Asset
A tangible asset is an asset that has a physical form, and includes both fixed and current assets.

Intangible Assets
Intangible assets are economic resources that have no physical form. They include patents,
trademarks, copyrights and goodwill.
Current asset: Is short term economic resource which can convert in to cash during one year
Current assets include cash and cash equivalents.
Fixed Assets: A fixed asset is a long-term tangible piece of property that a firm owns and uses in
the production of its income and is not expected to be consumed or converted into cash any
sooner than at least one year's time, such as plants, equipment, and buildings. An adjustment for
the aging of fixed assets is made based on periodic charges called depreciation,

Financial Assets:
Financial assets represent investments in the assets and securities of other institutions.

Financial assets include stocks, sovereign and corporate bonds, preferred equity, and other
hybrid securities. ‫ ارزش سهام ترجیحی و سایر اوراق‬،‫ اوراق قرضه دولتی و شرکتی‬،‫دارایی های مالی شامل سهام‬
‫بهادار ترکیبی می باشد‬.

Account receivable (AR): Accounts Receivable (AR) is the proceeds or payment which the company
will receive from its customers who have purchased its goods & services on credit. It appears on the
income statement under the current assets.

Accounts payable (AP): is an accounting entry that represents a company's obligation to pay off
a short-term debt to its creditors or suppliers. It appears on the balance sheet under the current
liabilities.

Prepaid

Step 1) copy last month’s folder move them to the next month and rename extract data from
system, then we update the main sheet then keep separate excel sheet. We have three sub sheets
in main sheet: reconciliation, GH rent and internet, offices rent and internet.
Step 2) open reconciliation sheet and extract data from the system from chart of account.

Step 3) update the reconciliation sheet as per the data we extract from the system like
1500.USD.02..

Step 4) add all new lines and payments as per their codes then we have total column make the
total and then move to right side of sheet there is another total column that’s reconciliation make
them subtotal.

Step 5) every subtotal must match the system amount if everything is ok move to the GH, rent
and internet we can update GH rent and internet sheet.
Step 6) move to the office rent and internet update: date (end of month), compare one by one
with reconciliation sheet if not available update with description amount document number, total
amount must be zero. All office must be shared for the month of Dec-18.

Step 6) preparing for uploading.

How to upload:

Journal entries, select Amortization, select AM number from the system then upload.

-Uploading prepaid rent- internet and UNHAS – home-journal-ok-select amortization-chose-

excel important.

Bank reconciliation

1) Bank account – select All, number as per bank statement (hard document)
2) Bank reconciliation – click
3) New (put the amount balance on statement manually from – B.S
4) Put date from statement in to the system (end of every month)
5) Compare the statement ending balance with the system.
6) After checking when everything is ok.
7) Action menu.
8) Suggested line – ok
9) Test report.

Top up card
A) Field top up card
We should check top up cards when we receive excel sheet along with distribution list
from field offices, thus we have deferent such steps:
1) At first step we open the system find field connection option then find cash batch &
external document No according to excel sheet and click.
Open system – field connection – cash bath (external document No) – click

2) After we should find 2310(account No).

After click – 2310 - compare codes - date - voucher No - with received list –
signature

3) We compare amount, codes, voucher No, date with excel sheet that they send us.
Example JAA
Open excel sheet – C13-00036 – go to excel sheet- field connection- find C13-0036 –
click- 2310- check amount- date……VLOOKUP(
 B) KBL top up card
1) We should update last month sheet according to received codes sheet and hard list, we have
to delete old codes sheet and bring new cods sheet in previous excel sheet ex Nov in Dec.
2) This sheet has Four sheets (phone, summery, codes sheet, details) the new excel sheet that
we receive from Admin we should delete some extra head row.
3) Start to check hard list signatures and compare total amount along with total amount of
received codes sheet.
4) After that we should vlookup amount in both(codes sheet and details) perhaps we will find
some error and can find the new hire and leave, hence if we have new hire we Can add at the
end details or if we have leave we can delete from details.
5) Then we can calculate this changes in summary, we put ending balance of last month as
beginning balance of new month, purchase is empty (if Admin do not purchase in current
amount). We should write total amount of details at Dist then we have new end balance.

Note:

6) Then we have to update followed things as per new changes: Date, document number ex
AM000, drug all raw up to end in case of new hire.

Cash Flow

A statement with shows the in and Out Flow of Cash is called the Cash Flow Statement. For
making this statement we have to pass some steps first we should collect our data from different
sources, our data is including 1) occurred expenses 2) forecasts (projection)

We can obtain occurred expenses from different sources 1) system 2) form operational team
like hr, admin

And for taking forecast amount we should obtain from each program director trough excel sheet
that finance already assign.

Questions and Answer

What is a Journal?
Ans: Journal is the original book of entry OR Simply says the accounting process is started with
journal. As soon as a transaction occurred it is directly recorded into journal.

What is Ledger?

Ledger is the Classification Phase of accounting. We keep separate record for each head of
account and then balance it. It is the summary of all amounts which entered in journal and show
the beginning/ending balance of account.

We have two kind of ledger 1) purchase ledger 2) sales ledger

What is a Cash Count?

Cash Count is simply to check out the net Cash in Safe and Compare it with the Cash Book
Ending Balance.

1) What do you mean by an accounting Cycle?

Ans: An accounting Cycle shows the whole accounting processes which are started With
Transaction then Journal, Ledger, trail balance and the final accounts.

2) What is reconciliation? Give comments in light of bank reconciliation statement.

ANS: Reconciliation means to tele two books with each other for the same nature transactions
and remove the differences. Bank Reconciliation statement is the comparison of bank book with
the bank statement. We just tele the bank book with Bank statement and find out the differences
such sometimes we issue cheques which are not paid, sometimes we deposits cheques which are
not cleared on time. So due to these cases the balances of bank book and bank statement are not
seemed to tele each other. So to remove and justify these differences between bank book and
bank statement is known by the name of bank reconciliation statement.

3) How many Book Keeping Errors do we have?

Ans: We have mainly four Types of Book keeping errors which are as under,

a)- Errors of omission

b) - Errors of commission

C-Errors of Principles

d) - Compensating Errors

4) How many financial Statement do we have? Enlist Please.

ANS: We have four kinds of financial statements which are enlisted as under.
A) - Income Statement

b) - Cash Flow Statement

c) - Balance Sheet

d) - Statement of Retained Earnings

5) What is a chart of account and what is its importance in an accounting System?

A Chart of account is the basic thing in financial system, chart of account is included accounts
for using of different expenses, and chart of account is linked to budget and financial software.
Chart of account is the conversion of descriptions to numbers.

ANS: A chart of account shows all the heads of ledger accounts. Mostly Chart of account is
coded with figures in order to have easy access to each account. A Chart of account has got a
dynamic role in accounting system. Because gives you the complete structure of accounting
system in connection with each head of account.

6) How do you differ income statement from balance sheet?

Ans: Income statement and balance sheet are differed according to their nature and accounts. All
Expenses and revenues are recorded in Income statement and it shows the Profit or loss and
Balance sheet shows all the details of Assets and Liabilities and it shows the financial position of
the business.

7) What do you mean by an Accrual Base accounting system?

Ans: In a Cash Base System we record the transaction when we make or receive the final
statement in shape Payment. While in accrual base system we record the transaction as soon as
the transaction occurred.

OR

Accrual Base System mentions that you should record the transaction when you make the deal.
Example: when we purchased some good on credit then we record the transaction in journal in
Case of accrual base system but in Cash Base system we cannot record this transaction until we
pay money for it.

8) What is a Cash Flow Statement and How many activities do we have in Cash Flow
Statement?

Ans: A statement with shows the in and Out Flow of Cash is called the Cash Flow Statement.
There are mainly three activities in Cash Flow Statement which are as under,

1)-Financing Activity
2) - Operating Activity

3) Investing Activity

9)-What is a Budget and how many types of budgets do we have?

Ans: Budget is actually a plan to spend a certain sum of money on a certain Task/Project in a
specific period of time.

In NGO we have two types of Budgets which are:

1)-Operating Budget

2) - Program Budget

IN profitable Organization we also have two types of budgets which are:

1) - Operating Budgets

2) - Capital Budgets

10) What is petty cash book?

Ans: is record of small value purchases before they are transferred to the ledger and final
accounts like stationary, travel and it’s paid by cash money.

11) What is bookkeeping and how many type of it do we have?

Ans: is the recording of financial transaction and it’s the part of accounting process in business.

We have two kind of bookkeeping (Entry system) method:

1) Single entry: it’s for small business, only for income and expenses which record at income
and expenses journal.
2) Double entry: in this entry transaction should have two effects (debit, credit) it means we
should have two accounting entries for each financial transaction, this kind of entry is for
assets, liability equity and etc.

Steps to Prepare a Journal Entry

Journalizing is the process of recording a business transaction in the accounting records

(Journal Book).We has two kind of entry:
1) Simple journal entry – There will be 2 accounts involved, one for debit and the other for
credit.
2) Compound journal entry - There will be more than 2 accounts involved all of which are
required to be identified.

The process to prepare a journal entry or in other words make a journal entry from scratch is
divided into 4 different steps

Steps to prepare a journal entry

1) Identify the accounts involved in transaction.

2) Determine the type of accounts involved.
3) Apply appropriate rules of accounting.
4) Record the transaction along with narration or a short description.

Example and Explanation – Steps to Prepare a Journal Entry

Example – Unreal Corp. is a local business that decides to buy furniture for 5,000 in cash.
Prepare a journal entry to be noted in the journal book.

Furniture Account 5000

To cash Account 5000

Step I) Identify the accounts involved in the transaction – there will be a minimum of two
such accounts. Going back to the above example the accounts identified in this case are
“Furniture A/C” & “Cash A/C”.
Step 2) – Determine the type of accounts involved – The approach to determine the type of an
account may either be traditional or modern.
Traditional Classification of Accounts – Real, Personal & Nominal. In the above example
“Furniture A/C is real” & “Cash A/C is real”.

Modern Classification of Accounts – Asset, Liability, Capital, Revenue, Expense & Drawings. In
the above example “Furniture A/C is Asset” & “Cash A/C is Asset”.

Once the type of account is identified the next step is to apply the proper rule(s) of accounting.
Step 3) after identifying the accounts & correctly determining their types the next step is
to apply appropriate rules of accounting to either debit or credit the respective accounts with
the currency value.
Modern Rules of Accounting  In the very same example the modern rule applied will be for Asset
accounts i.e. “Debit” the increase in assets and “Credit” the decrease in assets.

Step 4) inside the journal book records the transaction along with narration or a short
description which depicts purpose of the transaction.
Journal book of unreal corps
Date Particulars Dr Cr

Furniture A/C 5000

To cash A/C 5000

Furniture purchased for cash

Three Golden Rules of Accounting

These rules are used to prepare an accurate journal entry which forms the very basis of
accounting and act as a cornerstone for all bookkeeping. They are also known as the traditional
rules of accounting or the rules of debit and credit.
 3 Golden rules of Real Account Personal Account Nominal Account
accounting
Debit What comes in The receiver Expenses and loses

Credit What goes out The giver Incomes and Gains

Real Account

If the item (real account) is coming into the business then – Debit

If the item (real account) is going out of the business then – Credit

Personal Account

If the person (or) legal body (or) group is receiving something – Debit

If the person (or) legal body (or) group is giving something – Credit

Nominal Account

If it’s an expense or loss for the business – Debit

If it’s an income or gain for the business – Credit

Examples – Three Golden Rules of Accounting

1) Purchased furniture for 10,000 in cash.

Account involved Debit Credit Rule Applied

Furniture A/C 10,000 Real A/C what comes in Debit

To Cash A/C 10,000 Real A/C what goes out Credit

2) Paid 15,000 cash to Unreal Pvt ltd.
Account involved Debit Credit Rule Applied

Unreal Pvt ltd. A/C 15000 Personal A/C the receiver Debit

To Cash A/C 15,000 Real A/C what goes out Credit

3)  Paid 18,000 from the bank for rent.

Accounts involved Debit Credit Rule Applied

Rent A/C 18000 Nominal A/C all expenses Debit

To bank A/C 18,000 Real A/C the giver Credit

3) Depreciation charged for 100,000 on the machine.

Accounts involved Debit Credit Rule Applied

Depreciation A/C 100,000 Nominal A/C all expenses Debit

To machine A/C 100,000 Real A/C what goes out Credit

4) Goods sold for 5,000 on credit to Mr. Ahmad.

Accounts involved Debit Credit Rule Applied

Mr. Ahmad A/C 5000 Personal A/C the receiver Debit

To Sales A/C 5000 Nominal A/C all incomes Credit

Rules of Debit and Credit According to Modern Approach

If you are posting an entry in the journal, you may use the Modern Accounting Approach instead of
three golden rules of accounting. You should try to use the American or modern rules
of accounting to compare and find out which one suits your learning style and is easy to apply.
It is true that some people find the modern approach easier than the traditionally used three
golden rules of accounting.

Asset, Expenses and drawing are the same.

Asset:

Increase on asset (Debit)

Decrease on asset (credit)

Expense:

Increase on expense (Debit)

Decrease on expense (credit)

Drawings:

Increase on drawing (Debit)

Decrease on drawing (credit)

Liabilities, Capital and Revenue are the same because they are in come.

Liabilities:

Increase on liabilities (credit)

Decrease on liabilities (Debit)

Capital:

Increase on capital (credit)

Decrease on capital (Debit)

Revenue:

Increase on revenue (credit)

Decrease on revenue (Debit)

Ex
ample – Modern Rules of Accounting

1) Received cash 3000 as rent from Unreal Pvt Ltd.

Accounts involved Debit Credit Modern Rule Applied

cash A/C 3000 Asset A/C increase Debit

To rent A/C 3000 revenue A/C increases Credit

Compound Journal Entry

One of the meanings that the word compound has is “a thing that is composed of two or more separate
components“. Similarly, when used in accounting, a compound journal entry means a journal entry which
includes multiple accounts that are either debited or credited, unlike a simple journal entry which only
includes 1 debit and 1 credit.

In other words, an entry which has more than one account in debit or credit or both is termed as a
compound journal entry.  
Example of a Compound Journal Entry

1) On January 7, 2014, 9,500 received in cash from Unreal Pvt Ltd. as the full and final
settlement of their account worth 10,000. (Allowed a discount of 500)
Date Particulars LF. Debit Credit Type of Account* Rule Applied*

7 Jan 2014 Cash A/C   9500   Real A/C Dr. What comes in 

  Discount Allowed   500   Nominal A/C Dr. All losses 

  To Unreal Pvt Ltd.         10,000 Personal A/C Cr. The giver  

*Used for the explanation purposes.

In the above example of a compound journal entry, there are 2 accounts being debited and
1 account being credited. There are other examples of a compound journal entry where you will
find more debits than credits or multiple accounts being credited and debited at the same time
and so on. It all depends on the complexity of a transaction. Bochler

Question 1) Journalize the below transaction:

 1 Jan 2018 mercy corps received 1,000,000 AFN from donor in bank.

Date Account Dr Cr

1 Jan bank A/C 1,000,000

capital 1,000,000

 2 Jan 2018 purchased of motor vehicle AFN 350,000 by cheque

Date Account Dr Cr

2 Jan Motor vehicle 350,000

To bank 350,000

 5 Jan 2018 purchased of laptops AFN 120,000 by cheque.

Date Account Dr Cr
5 Jan Laptops 120,000

To bank 120,000

 10 Jan 2018 Ahmad took advance of AFN 5000 by CASH.

Date Account Dr Cr

10 Jan Advance 5000

To cash 5000

 11 Jan 2018 Ahmad returned advance with 3000 AFN expense and return the remain
amount
Its compound (double entry)

Date Account Dr Cr

11 Jan Cs AD for Ahmad 2000

Expenses 3000

CLR AD for Ahmad 5000

 15 Jan 2018 office rent payment AFN 55000 by cheque

Date Account Dr Cr

15 Jan rent 55000

To bank 55000

 17 Jan 2018 project materials purchase AFN 620,000 by cheque

Date Account Dr Cr

17 Jan purchase materials 620,000

To bank 620,000

 18 Jan 2018 stationary and office supplies payment AFN18000 BY cash

Date Account Dr Cr

18 Jan office supplies 18000

 To cash 18000

 25 Jan 2018 office furniture purchase AFN 235000 BY cheque

Date Account Dr Cr

25 Jan furniture 235000

To bank 235000

30 Jan 2018 Received cash 3000 as rent from Unreal Pvt Ltd

. Date Account Dr Cr

Cash 3000

Rent 3000

1 Feb 2018 Goods sold for 5,000 on credit to Mr. Ahmad.

. Date Account Dr Cr

To Ahmad 5000

To sales 5000

1) Journal Entry for Cash Withdrawn by Owner is?

Capital A/C Dr

Cash A/C Cr

2) Journal Entry for Depreciation is?

Depreciation A/C Dr

To asset A/C Cr
2) Journal Entry for Accrued Income is?

Income Cr

To sales Dr

5) Paid Salary to Staff via Bank Transfer 100,000.

Salary A/C Dr

To bank A/C Cr

6) Made Payment to a Debtor (Kumar) via Cheque.

Kumar A/C Dr

To bank Cr

7) Journal Entry for Introduction of Capital is?

Cash A/C Dr

Capital Cr

8) Deposited 10,000 in Bank.

Bank A/C Dr

To cash A/C Cr

Deprecation: is gradually decrease in value of assets.

Type of deprecation: 1) straight line deprecation:  the simplest and most commonly used
depreciation method. It is calculated by subtracting the ‘salvage/scrap value’ (the price it can be
sold at when it is no longer of use to the company) of an asset from the original purchase price
and then dividing it by the total number of years it is expected to be a useful asset for the
company – it’s ‘useful life’. This method results in the same depreciation amount being spread
evenly over the course of the asset’s useful life.

3 Reducing balance depreciation:

4 Units of Production Depreciation:

Method of accounting: 1) accrual base accounting 2) cash base accounting

Cash book: a book which we record all cash in (cash receipt) cash out (cash payment)
transaction.

We have four kind of cash book: single column cash book

Double column cash book, three column cash book, petty cash book

 Kind of cash count: daily, weekly, monthly, surprise

 Long term and short term liabilities.
