Question

Company: Sea Safari Tours

Process Scenario:

Sea Safari Tour’s manager describes the cash receipts process as: Customer payments to Sea Safari Tours include cash received at the time of initial Tour’s purchase and, over time, mailed account payments are sent in by customers with a remittance slip (that are received together in the US Post Office mail delivery). At day's end, the Controller endorses all checks and prepares a deposit slip for the checks and the cash. An accounting supervisor then deposits the checks, cash, and the deposit slip at the 1st National Bank each day. The return with a night deposit receipt that is automatically generated by bank’s night deposit drop-off tracking system. When checks are received as payments for accounts due, a remittance slip is included with the payment. The remittance slips are used to update the accounts receivable file at the end of the day. The remittance slips are scanned into the image database and also stored in a file (paper) drawer ordered by date. Every week, a cash receipts report and an aged trial balance are generated from the data in the accounts receivable ledger. The cash receipts report is sent to the S&S Credit & Collections Dept. and a copy goes to the S&S accounting supervisor for review.

Flowcharting Assignment

For the Sea Safari Tours cash receipts system (described in the above “Process Scenario” above) prepare a document flowchart describing the full cash receipts process (reflecting at least three (3) different Sea Safari Tour’s employee’s area of responsibility (remember, the customer is not an employee, and only diagram actions completed inside the company).

Answer 1

General Payment / Receipt Flow Payment / Direct Debit Procedure Bank Order Cheque Bank Customer Supplier Transaction Advance Receipt Payment Journal Bank Statement Entering Transactions Posting Customer/ Supplier Reconciliation Unallocated Receipt Paym ent