reconcilation of day books

hackett

I have a simulation test in this morning and am searching for a module answer for the following;
explain why reconcilations are important?
why do we keep day books?
how to keep authorisation controls in day books?

I am not sure what is meant by the last question can anyone help?

hannahh

1. Reconciliations make sure that all the figures and everything are correct. i.e. no errors or fraud going on.

2. not really sure but maybe so reconciliations can be done.

3. i think that means making sure that all expenditure is authorised again to prevent fraud etc

sorry havnt been much help :crying:



I have a simulation test in this morning and am searching for a module answer for the following;
explain why reconcilations are important?
why do we keep day books?
how to keep authorisation controls in day books?

I am not sure what is meant by the last question can anyone help?

numberjunky

I believe Day Books prevent the Ledgers getting overloaded with detailed information so that's why only the totals are posted

tammyariley

I was taught that we keep Day books so we can record all day to day activities as they happen. Most companies only post to the main ledgers at month end!