Module-c community Based Financial Management

 Operation and Maintenance Management Manual 
Training Module - D 
Community Based Financial 
Management 
 
DEMEWOZ CONSULTANCY 
48
Date 
Description PV/R 
No. 
Receipt (Birr) 
Payment (Birr) 
Cash 
Bank 
Cheque Cash Bank Cheque 
1/12/14 
Share 
RI 
800.00
5/12/14 
Donation 
2,000 0040 
7/12/14 
Materials 
300 
9/12/14 
Share 
200.00
600 
04324 
10/12/14 Salary 
Total 
1000 
200 
300 
600 
Ledger: The ledger is a summary of all transactions in a business. It is a 
document of secondary entries. Final accounts are drafted from the accounts in 
the ledgers. When writing a ledger one should: 
Identify the account then use the Rule of: 
 
Value Received “IN” 
 
Value Given “OUT” 
Step 5: Bank 
Reconciliatio
n
 
 
 Bank reconciliation (See sample Attachment ): 
Bank reconciliation is a very important procedure for a WASHCO as it is a way of 
checking that the books of accounts tally with what is in the bank and/or petty cash 
box. 
Bank reconciliation is the process of harmonizing the balances of money at the 
bank and in petty cash against all recorded income and expenditures. Bank 
reconciliation is done by taking the current bank statement and checking all the 
entries 
– receipts and withdrawals - to see if all the cheques issued have been 
presented and cleared. At the same time it is also helpful to confirm if all the 
cheques issued to the organization have been cleared before making a decision to 
pay from the account. 
The Bank Reconciliation Statements is a tool to ensure that the accounts balance. 
Principally the question being asked is: 
 Does the money you started with (A) 
 Plus the additional money received (B) 
 Less the amount expended (C) 
 Less the amount you remain with (D) 
 
Equal zero?