I’ve been really really really busy with my work. Typical Malaysians and their last minute tax submission.
I always feel like writing about my life at work, but I think some stuff are better not to be on the internet to protect, well, privacy of some people, since the Miri is seriously small, and I think it’s not right to share some really shaddy business practice here in Miri.
BUT! This thing I am going to write must be written! To all those studying accountancy, PLEASE DO NOT MAKE THIS SILLY MISTAKE! The irony is that, this silly mistake is done by our very own bookeeping department.
I was assigned to prepare financial statement for this alcohol retailer. And the bookeeping is apparently, done by one of my colleagues from the bookeeping department. After looking through her bookeeping records and double entries, here’s the few things that I see strange:
- There’s no sales account.
- The cash in hand account is deficit. Negative. Imagine having negative amount of money in your wallet, which is pretty much impossible.
After inspecting the transactions in the accounts, I found out that she’s been:
- Crediting cash in hand on every “deposits” transaction that she sees in the bank statement.
- And on every cheque drawn out from the bank, it is debited back to the cash in hand accounts.
That’s the technical part. Right, now I am going to simplified this into layman terms. Basically it goes like this. I deposit RM100 everyday to my bank accounts for 15 days. After that, I withdraw RM1,500 in one lump sum. Then, I deposit RM100 for 15 days again. Then I withdraw RM1,500 in one lump sum. And I do this for one whole year.
Seriously. How do I prepare a financial statement from this accounts?