Narratives and who approves a journal
A journal can move any figure to any account, so it needs a clear narrative and a second person to approve it.
In this room: 3 tasks, 8 questions
- What a narrative must say2 questions
- Who approves a journal4 questions
- Checking a month of journals2 questions
The narrative is the note under a journal entry. It lets anyone who reads the books later see what was done and why.
- What the entry is for
- A reference to the evidence, such as an invoice number
- Who authorised it, if the business asks for that
A narrative of one vague word, such as Adjustment, explains nothing.
Answer the questions below
1 more question follows in this task.
A journal can move any amount between any accounts. That makes it useful, and it makes it a risk: a journal can hide a mistake or a theft.
- The person who writes a journal does not approve it
- Journals are numbered in order, so a missing one is noticed
- The evidence is kept with the journal
At Marlow Cycles, Tasha writes the journals. Dev signs every journal of more than £500 before it is posted.
Answer the questions below
3 more questions follow in this task.
| Journal | Narrative | Amount |
|---|---|---|
| 12 | Rider Hire debt written off | 350.00 |
| 13 | Pedal Couriers debt written off | 720.00 |
| 14 | Tyres taken by the owner | 90.00 |
| 15 | Air compressor bought on credit | 960.00 |
| 16 | Insurance paid by the owner | 240.00 |
Journal 17 is written on 31 May. Its narrative reads: balance of Hill Riders Club written off, club closed, approved by D Marlow. The amount is £45. Ignore VAT.
Answer the questions below
1 more question follows in this task.