question archive As the Accounts Receivable Technician, you have received a deposit correction notification from the City’s bank stating the deposit from 7/9/2020 was short by $5
As the Accounts Receivable Technician, you have received a deposit correction notification from the City’s bank stating the deposit from 7/9/2020 was short by $5
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As the Accounts Receivable Technician, you have received a deposit correction notification from the City’s bank stating the deposit from 7/9/2020 was short by $5.25. The deposit included the following items:
OVERALL TOTAL
This deposit has been reduced by $5.25, you account deposit will reflect a corrected deposit of $18,461.27 If you require more information regarding this notification, please contact your bank representative.
Utilizing this information,
1.) How would you identify how the error occurred and,
2.) What are two possible errors what could have occurred?
3.) Based on the two identified errors, how would you correct these errors, if a correction is possible?
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Answer 1:
For Checks:
Draw a list of cheque numbers that were deposited on 7/9/2020.
Trace these cheques to respective Customers.
Cross check the amount of check from the Customers.
(Assuming that since these are paid in cheque Customer details are in my system and traceable and it is a valid assumption or else in case of a cheque bounce how will the liability be fixed)
For Cash and Coins:
Days cash book transactions will have to be audited determining total cash.This will highlight on a total comparison level if there is a mismatch between the Cash collected and as shown deposited.
Answer 2
Prima facie in all likelihood there looks following two issues that might have caused the error on the deposit slip
a) Error in recording of $ 5 bill
b) Error in recording of $ 0.25 coins
Answer 3
Cash sales will have to be reversed to the extent of $ 5.25
