Mr. Jamshed Khan is a sole owner of Gory Bakers, a single member company (SMC) operating a chain of 30 stores of bakery products. Each store is run by a regular Store manager and adequate numbers of Assistants hired on daily wages. To supervise the operations, Mr. Jamshed spends sometime of a week in each store.
Each store is working as an independent unit in its operation and production. Store manager is a key person in the bakery who performs dual duty of cashier and manager. Most of the data copied from vu solutions dot com sales are made to local retailers on cash. The receipts over Rs. 25,000 are paid directly to the store manager and remaining receipts on the cash counter of the store. The Store manager records and deposits the cash in the bank on availability of the company’s vehicle provided for safety of the cash during transit.
Based on the information provided, discuss the weaknesses in the area of cash of Gorey Bakers and also give recommendations for improvement to Mr. Jamshed.