Accounting for Enterprises

Author: Liu Aidong (Editor)
Publisher:
Publish Date: 2003-08-01
Features: This book combines practical accounting to systematically explain the meaning, functions, and objectives of enterprises, as well as monetary funds, inventory, investments, fixed assets, intangible assets, and other assets, owner's equity, and other content.
(1) Check Settlement Method
A check is a payment instrument issued by a payer to a payee or to a designated bank to transfer funds to the payee. Check settlement is applicable for settlements between entities within the same city and for cash withdrawals by the issuing entity. Checks are divided into cash checks and transfer checks. Cash checks are used for cash withdrawals, while transfer checks can only be used for transfers and cannot be cashed. Checks are always negotiable (i.e., the payee must be specified). In regions approved by the People's Bank of China, transfer checks can be transferred by endorsement. The payment period is 10 days. Checks must be filled out in black or carbon ink. If a check is improperly filled out and altered or fraudulently cashed, the issuer is responsible. The amount of a check issued must not exceed the bank balance, and no "" (checks with a face value exceeding the bank balance) are allowed. When an enterprise issues a check, it retains the check stub as evidence for the accounting department to prepare journal vouchers. When the payee cashes a cash check, they must endorse the back of the check, present it to the issuing bank, and submit valid identification as required by the bank before cashing it. For transfer checks received by the payee, they should be submitted to the bank along with a remittance slip (also known as a cash deposit slip) filled out by the receiving entity to complete the transfer and obtain the remittance slip as evidence for preparing journal vouchers.
(2) Bank Draft Settlement Method
A bank draft is a negotiable instrument issued by a bank upon receipt of funds from an applicant, allowing the holder to make transfers or cash withdrawals. It is convenient to use and has high creditworthiness. It can be used for transactions, services, or other payments between enterprises or between enterprises and other entities within designated cities. Bank drafts are divided into fixed-amount and non-fixed-amount types, are always negotiable, and can be transferred by endorsement. The minimum amount for non-fixed-amount bank drafts is 100 yuan, while fixed-amount bank drafts come in denominations of 1,000 yuan, 5,000 yuan, 10,000 yuan, and 50,000 yuan. The payment period for bank drafts generally does not exceed two months (calculated uniformly by the next day of the following month, with holidays extended accordingly), and overdue drafts are not accepted by the bank. When an enterprise or individual needs to pay using a bank draft, they should fill out a "Bank Draft Application Form," specifying the payee's name and "cash" if cash withdrawal is required, and then transfer funds to the bank or pay in cash. If a refund is requested due to an overdue bank draft or other reasons, the remittance slip (in duplicate) should be submitted along with the bank draft to the bank. The payee should then prepare a receiving voucher based on the bank-stamped remittance slip as evidence for recording the transaction. For the receiving entity, after verifying the bank draft, they should fill out a remittance slip (in duplicate) and submit it along with the bank draft to the bank for settlement. The receiving entity should then record the transaction based on the remittance slip. At this point, note that when the receiving entity accepts a bank draft, it only processes the full amount of the settlement, and any excess funds can be returned via check or cash.
(3) Bank Transfer Draft Settlement Method
A bank transfer draft is a negotiable instrument issued by a bank upon receipt of funds from a remitter, allowing the holder to make transfers or cash withdrawals in a different location. Bank transfer drafts have a wide range of applications, whether for payments by entities or individuals across regions.