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Submitted By frieslang
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Cash Receipts Cycle
Upon the due date, the company collects payment from its clients usually they pick-up the payment every Friday. However, there are instances of special arrangements for collection for specified day of the week. The collector or messenger collects the payment from its clients and issues a duplicated copy of official receipts. The original is given to the clients as its copy. Before the end of the same banking day, the collector/messenger goes to their depository bank, prepares a deposit slip and deposits their collection.
The authorized duplicate copy of the deposit slip is then attached to the copy of the duplicate official receipt and turned over to the accounting department. The accounts receivable clerk will reconcile the payment transaction. She checks if the validated duplicate copy of the deposit slips corresponds to the duplicate official receipt. If it matched, this will trigger the posting of payment of the client in the official receipts and updates the invoicing book and accounts receivable ledger. At the end of each week, the collector and the accounting staff prepares a weekly collection report and summary of accounts receivable aging report respectively that will be given to the accounting manager. The aging reports are for internal purposes and to see how many collection the company made.
At the end of each month, the accounting manager does bank reconciliation to update the company’s book. She reconciles the passbook with the cash in bank account in the system of the company. Cash Disbursement Cycle
Being a service company, RCS Logistics (Phils.) Inc. incurs no purchases; rather the major cash disbursements include the payments to the prime and secondary contractors such as their agents and suppliers and primarily for operating costs. –meron na ako nito
The receipts of the statement of accounts (SOA), cash payment request…...

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