OBJECTIVES:

a) Check Entries
b) Explain theoretical or practical misunderstandings
c) Check paper flow
d) Balance first Cash Book page

PROCEDURE:

Visit the company as needed. Every other day at first.

1.

Check entries... at first read every one

1.1 If error is found,
a. Ask why entry was made as it was.
b. Repeat theoretical argument behind the omission
c. Have him correct error and explain what he has done and why.

1.2 Common errors include ...
a. Entering payments from clients in the sales column,
b. Entering payments to suppliers in the raw materials column.
c. Addition and substraction in balances and summaries
d. Entering transportation, discount or commission expenses among "general expenses".
e. Forgetting to make all three entries on a credit transaction
f. Not entering a sale at time of delivery,
g. Entering either sales or purchases in the payments columns of the credit books.
NOTE In the Credit Books the second column is always for payments.

2.

Check Paper Flow

3.

Help Balance the first Cash Bock page ... he should do the rest.