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Gov. Note No.4-Revenues & Exchanged Cash Among Safes
Gov. Note No.4-Revenues & Exchanged Cash Among Safes
Second: Revenues
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b) collection through public cash safe:
In this case, the collection may be through public safe in
central bank, or in ministry of finance, or others.
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2- Revenues collected through cheques :
☺ Note:
When the governmental unit receives cheques, these cheques
named "Financial vouchers under collection".
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4-Deducted at source revenues :
In this case, the governmental unit has amounts due on other
units or persons as revenues, but those units or persons have
accruals on the governmental unit.
Thus, the G. unit is going to deduct its revenues from the
money needed to other units & pay only the differences.
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Example:
These following transactions took place in a governmental unit:
1- Cash collections:
a. Cash revenues through a sub-cash safe 100000, then
deposited in a public cash safes as follows:
Central bank 50000, governorate safe 20000, ministry
of finance safe 25000, post office safe 5000,
Other collections of 41000 for credit current accounts.
b. Collections by public safe 70000 for the sake of the
governmental unit, 50000 for the sake of other entities.
c. Other collections from sub-cash safes 35000, out of which
20000 as revenues, the rest for the sake of other credit
current accounts.
d. Also, there were collections in closed Boxes of 40000 (not
revenues).
2- Collections by cheques:
a. Financial vouchers under collection for 245000 as
revenues, insurances of 15000, 100000 for credit current
accounts.
cheques of 248000 were added in the central bank,
cheques issued for credit current accounts of 100000 &
paid through central bank current account.
b. Cheques of 10000 refused (revenues).
c. Cheques of 2000 refused (insurances).
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Answer
1. Cash collections:
a-1 Cash under adjustment a/c 100000
Revenues a/c 100000
a-2 Debit current accounts under adjust. (C. bank ) a/c 50000
Debit current accounts under adjust. (Governorate) a/c 20000
Debit current accounts under adjust. (M. of finance) a/c 25000
Debit current accounts under adjust. (post office) a/c 5000
Cash under adjustment a/c 100000
a-3 Cash under adjustments a/c 41000
Credit current accounts under adj. a/c 41000
b Cash a/c 120000
Revenues a/c 70000
Credit current accounts under adj. a/c 50000
c Cash a/c 35000
Revenues a/c 20000
Credit current accounts under adj. a/c 15000
d Cash a/c 40000
Inward closed boxes a/c 40000
2. Collections by cheques:
a-1 F. Vouchers under collection a/c 360000
Revenues a/c 245000
Insurances a/c 15000
Credit current accounts under adj. a/c 100000
a-2 Central bank current a/c 348000
F.vouchers under collection a/c 348000
a-3 Credit current accounts under adj. a/c 100000
Cheques a/c 100000
a-4 Cheques a/c 100000
Central bank current a/c 100000
b Revenues (elimination) a/c 10000
F. Vouchers under collection 10000
c Insurances a/c 2000
F. Vouchers under collection 2000
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Third: Exchange cash among safes
Case 1: Exchange money between sub. & Public safes .
Case 2: Exchange money between two public safes.
Case 3: Exchange money from a public safe to central bank.
In books a- At sending:
of sub. safe Debit current accounts under adj. a/c XX
As Cash under adjustment a/c XX
sending b- Receiving F. vouchers (cheques):
of money F. Vouchers under collection a/c XX
Debit current accounts under adj. a/c XX
c- Adding the value of coming cheques:
Central bank current a/c XX
F. Vouchers under collection a/c XX
In books of a- At receiving money:
public safe Cash a/c XX
receiving Credit current accounts under adj. a/c XX
money b- Issuing cheques:
Credit current accounts under adj. a/c XX
Cheques a/c XX
payment of cheques:
c- Cheques a/c XX
Central bank current a/c XX
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Case two: Exchange money between two public safes :
In books of a- At sending:
public safe Debit current accounts under adj. a/c XX
As Cash a/c XX
sending b- Receiving F. vouchers (cheques):
of money F. Vouchers under collection a/c XX
Debit current accounts under adj. a/c XX
c- Adding the value of coming cheques:
Central bank current a/c XX
F. Vouchers under collection a/c XX
In books of a- At receiving money:
public safe Cash a/c XX
receiving Credit current accounts under adj. a/c XX
money b- Issuing cheques:
Credit current accounts under adj. a/c XX
Cheques a/c XX
payment of cheques:
c- Cheques a/c XX
Central bank current a/c XX
Entries in books of both public safe & Central Bank will be as follow:
In books of a- at sending:
public safe Debit current accounts under adj. a/c XX
As Vouchers payable a/c XX
sending b- payment of money from the safe:
of money Vouchers payable a/c XX
cash a/c XX
c- Deposit in central banks:
Central bank current a/c XX
Debit current accounts under adj. a/c XX
In central at receiving:
bank books cash a/c XX
Credit current accounts under adj. a/c XX
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Example:
The following transactions took place at different
Governmental units in exchanging money with other safes.
You are required to make journal entries in both parties’ books in
every case:
▪ Case one : a sub. Safe sent money to a public safe of 80000,
received a cheque and added it in its central bank current
account.
▪ Case two : a Public safe sent money to another public safe of
70000, received a cheque by the amount, the cheque is added
to its current account in central bank.
▪ Case three : a public safe sent money of 93000 to central
bank public safe, using a voucher payable.
Answer::
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Case two: a public safe sent money to another public safe:
1- In sending governmental unit books:
a- At sending:
Debit current accounts under adj. a/c 70000
Cash a/c 70000
b- At receiving a cheque:
Financial vouchers under collection a/c 70000
Debit current accounts under adj. a/c 70000
c- At collecting F.Vouchers (cheque):
Central bank current a/c 70000
F. Vouchers under collection a/c 70000
2-In receiving governmental unit books:
a- At receiving money:
Cash a/c 70000
Credit current account under adj. a/c 70000
b- Issuing a cheque:
Credit current account under adj. a/c 70000
Cheques a/c 70000
c- payment of cheques:
Cheques 70000
Central bank current a/c 70000
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