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The deposit slip for the bank was prepared correctly as $ One Hundred Fifty Six. What adjustment is needed to the Cash balance per books?
From accounting point of view
Dr Sales $10
Cr Cash $10
Note: Your trial balance will not be balance if entires are not recorded properly
From Internal Control Point of View
there are lack of internal controls which caused such issue as sales is not being properly recorded, if sales is overstated by $10 and actual receipt are less tby $10 it means some suspicious activities are going on to overstate the sales receipt other account such as purchases may have the same error as well.
Note: A proper accounting software need to be used by accountant to quickly analysis the difference and recording
From Audit point of view
there can be fraudulent activities going on to prevent the fraud by overstating the sales receipt by $10
Note: Internal audit procedure should be conducted to analysis the accounts, physical documents as well external documents and proper entries of accounts.
The error will be discovered once bank reconciliation is prepared. For such error, there should be a adjusting entry, a deduction (credit entry) in cash account and a debit entry to sales.
Thank you for your kindness invitation anil bay.
I agree with all previous answers.
Regards
