Financial Accounting Journal Entries and Adjustments
Accounting Journal Entries and Adjustments
Sales Returns and Transport Claims
- 9. A discount of 400 euros was granted to a customer following a claim for damages during the transport of supplied products. The payment was made by check.
| 400.00 64.00 | 708 477 | Returns of sales and similar operations HP Output VAT | to | Banks, current account (EUR) | 572 | 464.00 |
Fixed Asset Acquisition: Delivery Truck
- 10. On December 1, a delivery truck was purchased for 30,000 euros. Half of the amount was paid via bank transfer, and the remainder was split into two promissory notes of equal amounts due in 12 and 24 months.
| 30,000.00 4,800.00 | 218 472 | Transport elements HP VAT | to to to | Banks, current account (EUR) (34,800 / 2) Long-term Payables (17,400 / 2) Short-term Payables | 572 175 525 | 17,400.00 8,700.00 8,700.00 |
Year-End Adjustments and Income Calculation (2008)
Payroll and Social Security Obligations
- A. Outstanding staff payroll for the month of December is broken down as follows:
Gross salary: 10,500 euros
Social Security (Company): 3,400 euros
Social Security (Employee): 600 euros
Personal Income Tax (IRPF) Deductions: 1,500 euros
Advances on pay: 640 euros
| 10,500.00 3,400.00 | 640 642 | Wages and salaries Social Security (Company) | to to to to | Social Security Agencies, Creditors (3,400 + 600) HP Credit for Deductions Advances on Pay Unpaid Salaries (10,500 - 600 - 1,500 - 640) | 476 4751 460 465 | 4,000.00 1,500.00 640.00 7,760.00 |
Inventory Valuation and Impairment Losses
- B. The value of ending stocks is as follows:
Goods: 20,000 euros (Market value: 18,000 euros)
Packaging: 3,500 euros (Market value: 4,000 euros)
| 15,200.00 | 610 | Changes in inventories of goods | to | Goods | 300 | 15,200.00 |
| 20,000.00 | 300 | Goods | to | Changes in inventories of goods | 610 | 20,000.00 |
| 2,000.00 | 612 | Changes in inventories of other supplies | to | Packaging | 327 | 2,000.00 |
| 3,500.00 | 327 | Packaging | to | Changes in inventories of other supplies | 612 | 3,500.00 |
| 2,000.00 | 693 | Impairment losses on inventories (20,000 - 18,000) | to | Impairment of goods | 390 | 2,000.00 |
Accrual of Rental Income
- C. Account 752, 'Rental Income', reflects the amount charged for the rental of a property owned by ARTESANA. The current balance covers December 2008 and the first half of 2009, which the tenant has paid in advance.
| 6,000.00 | 752 | Income from leases (7,000 * 6/7) | to | Anticipated revenue | 485 | 6,000.00 |