INTERNAL CHECK AS REGARDS MAIL ORDER AND SALES RETURNS
Que 1: Describe the Internal Check as Regards Mail Order Business.
Ans: In case of mail order business the internal check may
be deployed effectively on the following lines. This type of business is
usually found with journalism. Subscription to journalism is being done through
postal service.
1. In case of mail order business, a separate section in
charge of independent officer takes care of mail order business.
2. Postal Sales Register: Separate sales register is
maintained for postal sales.
3. V.P P. Register: Every detail like dates, name and
address of customer, dates of goods dispatched, quantity, quality, price and
value of goods dispatched is to be recorded in this register.
4. Returns: Any good returned back is to be recorded in the
same register.
5 Advance Received: Any amount of advance received and the
amount received on delivery of goods is to be recorded in the same register as
well as in the cashbook.
6. Bank Deposits: All the cash received on V.P.P. sales is
to be deposited into bank account every day.
7. Periodical Checking: V.P.P. registers and bank deposit of
cash realized is to be verified by responsible officer who is not associated
with postal sales. This prevents the possibility of any errors and frauds.
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Internal Check as Regards Mail Order Business & Sales retuns |
Que 2: Narrate internal check as regard sales returns.
Ans: Internal check as regards sales returns if felt
necessary for reason that actual goods has not been returned but only book
entry has been entered, credit note has been sent without actual receiving
goods and misappropriating the cash for the same amount. Effective internal
check with regards to sales returns may prevent the possibility of misusing the
cash. The following point needs to be taken care in implementing effective internal
check for sales returns.
1. Approval:
All goods returned should be duly approved by responsible officer before they
are accepted.
2. Gatekeeper
Inward Register : Ensure that all goods returned are properly recorded in
gatekeeper's Inward register
3. Dispatch
Section: All goods received back from customers should be sent to dispatch
section. The dispatch section after due verification and taking goods back, the
dispatch department sends a note to accounts department.
4. Credit
note: The accounts department verifies the note from dispatch department and
sales ledger accounts, and then approves for accounting. The accounts
department prepares credit note duly signed by concerned officials in three or
four copies. One copy is sent to customer, one copy is sent to sales
department, one copy is sent to dispatch department and one copy is retained
for future reference.
5. Price
Adjustment: It is only the high level officers are allowed to make any price
adjustment and not the any other persons.
6. Sales
Return book: Sales return book is to be written on the basis credit note sent
to customer. Only responsible officers are authorised to issue credit note
after due verification of goods returned.
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