ACCTG311 Lecture Notes - Lecture 6: General Ledger, Cheque, Accounts Receivable
25 Nov 2014
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Kelly thorne has been an employee at discount products inc. for 6 years. Kelly is highly respected by his peers and bosses for an exemplary work ethic. Kelly has not taken a vacation for the last 3 years and is known to arrive early and stay late. His job includes receiving cash and cheques, making bank deposits and recording sales and cash receipt transactions into the accounting system. To help get through a tough time, he. Borrowed ,000 from one of the daily deposits. He recorded the amount in the general ledger as though he had made the deposit so that cash received from sales in the accounting records would match the amount of sales reported through the sales system (ie. cash registers). He had every intention of repaying the amount, however, his situation never improved to the point that he could. At month end, he reported an outstanding deposit of ,000 on the bank reconciliation.
