The Main objectives of payroll section is to ensure proper checking, verifying and correcting of monthly salary bills and bills of daily workers and employees. Moreover, timely payment of such approved bills is likely to be assured by this section.
In order to ensure the objectives the following controls are established.
- Salaries and wages sheets are checked with the present and absentee statement received from the establishment section.
- Arithmetical calculation of salary sheet is ensured.
- Various deductions made from salaries against provident fund contribution house rent, provident fund loan, use of vehicles are properly recorded. Through the use of provident fund register, provident fund loan register etc.
Source Documents are:
i) Demand Bill (DB) (ii) Official Receipt (OR) (iii) Cheque voucher (CV) (iv) Journal voucher (v) and (vi) Credit Memo (CM).
- Demand Bill (DB) : This is the basic document to record all demands in a special multi column journal called demand bill book.
- Official Receipt (OR) : This is the basic document required to record all cash receipts in special multi column journal called cash receipts book.
- Cheque Voucher (CV) : This is the basic document required to record all cheque disbursements in a multi column journal called cheque Disbursements Book.
- Journal Voucher (JV) : This is the basic document required to record all non-cash transactions in the Journal Voucher Book.
- Credit Memo (CM) : This is the basic document required to record all remission/concession in a special multi column Journal called credit Memo Book.