ADJUSTMENTS AND CUT MONTHLY
Adjustment Concept
At the end of the accounting period, the accounts must present actual balance, as these values \u200b\u200bform the basis for preparing financial statements. When account balances are not real need to increase, decrease or corrected by an accounting entry called ajuste.Ajuste seat is the accounting entry required to bring the account balance to its real value.
kinds of settings
ordinariosSon seats Adjustments are made often in the company in a period. This type of settings affect the following accounts: Cash
· Banks
· provisions and bad debts
· Inventory of goods
· Accumulated depreciation
· Expenses Prepaid and deferred charges
· Income received in advance
· Income receivable
· Costs and expenses payable
· provisions for labor obligations
1. Adjustments to the account box, caused by measurement: When verifying the existence of values \u200b\u200bin box, this is to make a tonnage, one must compare its value with the balance books.
2. Adjustments to bank accounts, bank reconciliation caused by: To make this adjustment is necessary to a reconciliation, that is, comparing the balance of the book of Banks of the company with the bank statement balance bancario.Extracto is the document that produced monthly banks to their customers checking or savings account, relating to partial and total movement of the appropriations account, deposits, transfers of checks, withdrawals, debit or credit notes and stocks.
3. Portfolio adjustment provision or estimated doubtful accounts: The value of this portfolio consists of balances due from customers for sale of goods on credit. These balances should appear on the balance sheet at their true worth noting that some debts can not be collected customer death, insolvency, change of address, fires and other acts of God. On the contrary, it is necessary to estimate uncollectible part of the portfolio balance and the Balance Sheet Assets section, make the gross value of customers.
4. Adjustment Inventory of Goods Companies with Perpetual Inventory System: When comparing the total value of the physical inventory of goods in the balance books, can occur when: Physical Inventory greater than the value in the account books of Goods: in this case is a surplus and should be an adjustment for the difference, debiting the account goods not manufactured by the company and crediting the account of cost of sales, for which this occurs, usually for bad records in the books.
5. Adjustment for Depreciation of property, plant and equipment (fixed assets) Depreciation is the expense incurred by an enterprise as tangible fixed assets are worn during life. Can be estimated that the asset is completely consumed during its useful life or residual value can be considered charges for rescue or salvage taking into account the value to be assets at the end of its useful life útil.Vida is the period during which is expected to property, plant and equipment contribute to income generation. For its determination is necessary to consider the legal life regulated by the tax status or technical lifetime fixed taking into account the factory specifications, the obsolescence of technological advances, the wear and tear and time.
6. Deferred Assets Depreciation Adjustment Deferred charges represent materials that the company has purchased for consumption in a future period and paid services in advance, the account recorded in prepaid expenses. Examples: stationery, leases, taxes, interest, advertising, insurance and others. This group includes deferred charges representing the costs and expenses incurred by the company in the early stages of organization, assembly, installation and commissioning, as well as investment costs and project studies.
7. Adjustment for amortization of deferred liabilities, deferred liabilities represent income received in advance. Just as a company can pay in advance, you may also receive money collected in advance for services, rents, commissions and others.
8. Income adjustment cobrarCuando have earned the company an income and has not been charged, must make an adjustment for the value. The value of income and caused it becomes a law firm, which is why debits an asset account called Income Receivable and credits the respective account of income.
9. Adjustment Costs and expenses PagarCuando a company has incurred an expense and is not accounted for, there must be an adjustment for the value. The value of spending and caused entered into in person for the company. Thus the account debits the expense account and credits the account of costs and expenses pagar10. Adjusting for debt laboralesCon to quantify the real value of social benefits by the company, at the end of the accounting period should be seats calculations and adjustments for this item.
1. Settlement of the benefits due each employee, compared to the total value of the settlement of social benefits with the book value
2. It is made by adjusting the value of the difference, crediting or debiting the account for labor obligations, according to increase or decrease the provision, using the expense account item.
Worksheet Worksheet
, also known working state, an accounting document is not mandatory or indispensable, is optional, and also internal in nature, the counter formula prior to the annual closure of the operations and guides you safely make adjusting entries, the income statement and closing the ledger and the financial statements: Situation and Status of results the book of inventories and balances. The state of work is a tabular sheet of 12 columns, which makes the year-end summary of transactions.
adjustment classes.
Depreciation Adjustment
Depreciation is the expense incurred by a company as their tangible fixed assets over the life wear. Can be estimated that the asset is completely consumed lifetime or may be considered residual value charges for rescue or salvage taking into account the value to be assets at the end of its useful life.
useful life is the period during which it is expected that property, plant and equipment contribute to income generation. For its determination is necessary to consider the legal life regulated by the tax status or technical lifetime fixed taking into account the factory specifications, the obsolescence of technological advances, the wear and tear and time.
DEPRECIATION Depreciation is an economic term and accounting referred to the distribution process at the time of lasting value. Additionally it is used as a synonym for depreciation.
is used referring to two areas are nearly the opposite: the depreciation of an asset or cancellation of a liability. In both cases it is a value, usually large, with a duration that extends over several periods or periods, each of which depreciation is calculated, so that value is shared among all the remaining periods .
Deferred Assets Depreciation Adjustment
Deferred charges represent materials that the company has purchased for consumption in a future period and services paid in advance, the account recorded in prepaid expenses. Examples: stationery, leases, taxes, interest, advertising, insurance and others. This group includes deferred charges representing the costs and expenses incurred by the company in the early stages of organization, assembly, installation and commissioning, as well as investment costs and project studies. Provisions
provision means holding the value that the company, according to analysis of the performance of your portfolio, consider that it is not possible to recover, and therefore must be provisioned. Whenever a company makes sales on credit flows the risk that a percentage of customers do not pay their debts to the company becoming a loss, since it will be unable to recover all of it sold on credit. The value of unpaid credit sales from customers is a loss for company will be recognized in profit or exercised, must therefore be carried as an expense. Providing portfolio, after the calculation reduces the value of the portfolio and is recognized as an expense.
WORKSHEET
Concept. The whole process developed from the balance of evidence to the formulation of the financial statements, can be done in a single document called Sheet work. Worksheet, also known working state, is not an accounting document required or indispensable, is optional, and also internal in nature, the counter made prior to the annual closure of operations and serves guide to making safe seats adjustment, income and closing the ledger and the financial statements: Situation and income statement in the book of inventories and balances. The state of work is a tabular sheet of 12 columns, which makes the year-end summary of transactions.
structure. Trial balance. In the first 4 columns record the Trial balance, in the first of these movements are recorded debtor, the second, the creditors in the third
accounts receivable and in the fourth, the creditors.
Adjusting entries. The fifth and sixth columns are intended to record the adjusting entries, the first of them settle the charges and the second fertilizers. Balance Balance
adjusted. The seventh and eighth columns
intended to record the remaining balances in the accounts
after making adjusting entries, in the first of which are recorded in accounts receivable and the second creditors. Seats income. The ninth and tenth columns are used to record entries and loss earnings, also known as
transfers, they are made to transfer the account balances of results to the Profit and Loss in order to know the profit or loss of l year. Balance
prior to balancing. The eleventh and twelfth columns are intended to record the remaining balances of the accounts after making seats or transfer income. Indeed, the balance is taken prior to balance the accounts and balances to make the balance.
There is another way of recording the Worksheet, is called CONCENTRATED WORKSHEET This worksheet form is more practical and simple, it also makes or develops in a tabular sheet of 12 column differs from the previous form is the following: Trial Balance
. After passing the trial balance to the worksheet is not necessary to leave items available on any account. Adjusting entries. The debits and credits to accounts received several adjustments are accumulated separately, and only noted in these columns are the sums of them, preferring instead the number of setting the letter "v", thus the amount Inca corresponds to various adjustments. "
CLOSING SEAT
is that practiced by the end of the operations of an exercise to Achieving a balance sheet. Seat
close: In this seat, credits and debits the balances of all accounts, and ready. This usually does the computer automatically. Beware that when you print the paper, some programs do not print this seat, we do not know why. When you launch the paper for binding, verify that the end is printed in this seat. Eye, with some programs, if we take stock after doing this seat, we will leave all with 0 balance, so if you need a balance sheet to present the annual accounts, the better it before and we print multiple copies.
What is a temporary account? Temporary accounts are personal accounts of limited duration. They have a certain usage period and are used primarily for guest users (attending conferences, courses, exchanges, etc.).
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