The Institute of Chartered Accountants
of Sri Lanka

15.1

 Following books are required to be maintained by an organisation involved in the Tsunami relief work:

• Cash Book - to record all cash and cheque receipts and banking
• Cash (Bank) Book - a separate bank book should be maintained for each bank account
• Petty Cash Book - to record day to day payments of amounts less than a specified limit.
• General Ledger - to be maintained according to double entry book keeping principles.

15.2

 The cash book needs to record:

• All cash and cheques received
• All cash and cheque deposits into the bank

 Since all collections will have to be banked intact, separate cheques should be drawn for any payment.
 The cash book needs to be updated daily to reflect the cash in hand balance at any given time (Refer Annex. 09)

15.3

 A separate bank book should be maintained for each bank current account and updated daily in respect of all  receipts and payments (Refer Annex. 10)

15.4

 The bank book needs to record.

• All cash and cheque deposits into the bank
• All direct receipts into the bank
• All cheque payments
• All standing orders and charges by bank

15.5

 At the time an initial advance is given, an Advanced Payment Voucher should be raised and recorded in the ledger in  the advance account for each recipient. If the actual expenditure is more, a further Advance Payment Voucher  needs to be raised for the shortfall and should be recorded in the advance account. On settlement of advances, a  Settlement Voucher should be raised to transfer the advances from the advance account to the relevant expenditure  or assets accounts. Care needs to be taken to record all payments of programme expenditure in accordance with  activity wise budgeted expenditure classification.

15.6

 If the actual expenditure is less than the advances given, a receipt should be raised for surplus cash returned and  recorded in the advance account.

15.7

 Standing orders and charges by bank should be identified and recorded in the relevant expenditure accounts in the  same month.

15.8

 All direct receipts into the bank should be recorded in the appropriate ledger accounts with the receipt of credit  advice from the bank.

15.9

 The petty cash book (Refer Annex. 11) should record.

• Expenditure incurred analysed in an appropriate manner. At the end of the month analysed expenditure totalsshould be recorded into the ledger accounts.
• Receipt of cash for reimbursement of expenditure

15.10

 The ledger should record.

• All expenditure in accordance with budgeted expenditure classification, and
• All income in accordance with budgeted income classification

15.11

 The recording into the ledger accounts should preferably take place daily. A trial balance needs to be extracted at  the end of each month to check the arithmetical accuracy of book keeping.

15.12

 Use of a recognized computer accounting package is recommended to simplify and expedite the accounting  functions.