Royal Video Shop

Payment policy of Royal Video Shop is  strictly on cash basis on all transactions.  Other payment options such as Credit Card, Debit    card,  cheque payment  or bank transfers will not be accepted. It is the duty of the Customers or  Members to  request for a receipt for all payments which they make to the Royal Video Shop and it is the responsibility of  Shop Assistants to issue a receipt for all payments received  indicating clearly the  services or goods offered  and the amount in  words as well as in figures. Every receipt should have a serial number and such details should be  recorded in  accounts registers on daily basis. Following this process,   it is possible  to maintain  up to date  accounting procedures and also it is possible to avoid any  financial malpractices or  frauds  taking place at the Royal Video  Rental Shop.

Pending  Payments

Subsequent to the payment is made by the Customer or Member   prior to returning the  Membership Card,   Shop Assistant  will  check   to ascertain  whether  there  is any balance or pending  payment due from the  relevant customer or member  for his or her previously rented out videos. Following this  procedure  it will be possible to recover any dues  from  customers or  members  due to the Royal Video Shop and minimize pending payments and reduce the number of debtors to the Royal Video Shop. As a result of reducing the debtors, owner of the  Royal Video Shop  has  relief from the stress and anxiety  he  has been feeling. Debt reduction  is  a great option for a  small institution  because  even some big companies are struggling to  recover their debts.

Updating the Accounting Systems

After the  payment has been made by the Customer or Member, Shop Assistant  is required to  update the payment details  in the daily accounts book or reference book maintained for this purpose  in the Royal Video shop. This  procedure will keep  all the  financial  transactions   recorded and  in any future event  either Shop Assistants or the Owner of the shop can  realize and get  the  exact  financial status of the Royal Video shop. Proper accounting procedures are vital to identify  unprofitable activities, inefficiencies, losses etc.. It is also important to identify  new  methods to  reduce costs  and for fixing  prices. Staying on top of paperwork can prove to be a headache for some business people who would prefer to concentrate on keeping  their business running. However,  keeping good accounting records is vital for  Royal Video shop for a number of reasons. Good financial records give the owner  a picture of how much income the business is generating and how it is being spent. Over a period which can be six months or a year financial statements like  Profit and Loss Account and Balance Sheet can be prepared from these records. It is vital for Royal Video shop to  have accurate and up to date  accounts records  from which the  owner can  identify the strengths and weakness of the  Royal Video  shop and  take steps to improve the efficiency and profitability of the business  or make changes to improve weaker areas.  With the financial records,  budget can be prepared and based on the budget  future income and expenses can be projected to give direction for Royal Video Shop. Royal Video shop owner needs to know if he  has enough cash to meet financial commitments like paying his creditors  or his employees every month.  It is important to prepare a cash flow projection to find out if his outgoing are sufficiently covered by his incomings as that will be the difference between him being  solvent or insolvent.

Initial Payments

When the customer or  member  selected  his  her allotted  one or two videos  whatever the case may be,  and he or she requires  additional  videos,   such member or customer  will have to make an initial   payment to the Royal Video Shop. When they return  the videos, initial payment will  be   subtracted or reduced   from the total amount customer or Member is due to be paid to the Royal Video Shop.

Video  Sales

In the event  a customer or member  purchases  any videos from Royal Video Shop,  Shop Assistant will issue a receipt  indicating the  Video  Identification number clearly  indicated on the  receipt  and  the exact  amount mentioning in the receipt in words as well as in figures. Original of the Receipt should be given to the member or  customer  and  duplicate  should be filed in  methodical manner ( preferably date wise  basis ) in order for anyone to trace  past  receipts without wasting time  and undergoing  much difficulty.