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Which of the following items must be examined by the controller or t

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Which of the following items must be examined by the
controller or treasurer before signing a check?
a. ledger
b. the purchase order
c. the confirmation report
d. the journal entry
Solution
Controlller or treasurer before signing of check must
consider the item on the basis of which he can be sure that
amount and other information on the check are correct. Let
us consider each option of the problem one by one.
A. Ledger: It is a secondary record book. In a company
immediately after happening of a transaction, it is first
recorded in primary book. From primary book it is recorded
in secondary book known as ledger. Thus entry in ledger
will be found only the transaction has happened and entry
has been made in primary book. Here transaction will
mean issue of check to supplier. It will take place only
after signing of check. Thus transaction is not yet
completed. So no entry will be available in ledger book.
Hence controller will not examine ledger before signing of

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check.
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b. Second item is purchase order. It is a document which
contains detailed terms and conditions of agreement
between supplier and company. It will indicate items to be
supplied, quantity to be supplied, price and other terms
and condition including payment terms. Thus whatever
information are required to ensure that check has been
correctly written are available in this purchase order.
Hence controller must see the purchase order to ensure
that everything written on the check are correct.
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c. confirmation report is a report which confirms that
payment has been made. Payment cannot be made without
signing of the check. So confirmation report cannot be
prepared before signing of check. Thus controller cannot
see this report before signing the check.
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d. Journal entry: It is primary books of records. After
happening of a transaction it is immediately recorded in
the Journal. But without occurance of transaction you

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Which of the following items must be examined by the controller or treasurer before signing a check? a. ledger b. the purchase order c. the confirmation report d. the journal entry Solution Controlller or treasurer before signing of check must consider the item on the basis of which he can be sure that amount and other information on the check are correct. Let us consider each option of the problem one by one. A. Ledger: It is a secondary record book. In a company immediately after happening of a transaction, it is first recorded in primary book. From primary book it is recorded in secondary book known as ledger. Thus entry in ledger will be found only the transaction has happened and entry has been made in primary book. Here transaction will mean issue of check to supplier. It will take place only after signing of check. Thus transaction is not yet completed. So no entry will be avail ...
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