Accounts receivable case
1, the basic case: a business accounts receivable at the end of the year the year-end balance of 4 million yuan, which belongs to the total debit balance of the ledger
for 4.5 million yuan, the credit side of the total number of 500,000 yuan. The enterprise at the end of the year, the credit balance of the general ledger of accounts receivable is 2 million yuan, the total of the credit balance of its sub-ledger is 3 million yuan, and the total debit balance is 1 million yuan. At the end of the year, the amount of provision for bad debts is 4,000,000×0.5%=20,000(yuan)
Analysis point: Audit the above situation and point out the problems.
Answer Hint: (1) The credit balance in the accounts receivable ledger belongs to accounts receivable in advance and cannot be offset against the debit balance in the accounts receivable ledger. (2) The debit balance in the advance receipts ledger is essentially an account receivable and cannot be offset against the credit balance in the other ledgers of advance receipts.
(3) The balance of accounts receivable at the end of the year of the enterprise should be 5,500,000 yuan (450 + 100 = 5,500,000 yuan); the provision for bad debts should be made:
5,500,000 × 0.5% = 27,500 (yuan) (4) The provision for bad debts is under-provided by 7,500 yuan (27,500 - 20,000 = 7,500 yuan), which leads to (4) Underprovision of bad debt provision by $7,500 ($27,500-20,000=7,500), resulting in a false decrease of $7,500 in "Impairment loss on assets", a false decrease of $7,500 in profit before tax, and a false increase of $7,500 in the net amount of "accounts receivable" in the balance sheet. The related accounts should be adjusted and the income tax expense should be adjusted (assuming the corporate income tax rate is 33%). Adjustments are as follows: ① Borrow: Asset impairment loss 7,500 Credit: Provision for bad debts 7,500
② 7,500×33% = 2,475 (yuan) Borrow: Income tax expense 2,475 Credit; Taxes payable - Income tax payable 2,475
2, the basic facts of the case: the CPA review of the 2008 annual accounting statements of the company Hongxing learned that the company's receivable
A provision for bad debts is the largest part of the company's receivable accounts. >
Allowance for bad debts is made using the percentage-of-receivables method. The company has determined the accrual rate to be 5‰, and the balance of accounts receivable for the current year
is $800,000. Review of the "bad debt provision" account, the CPA learned that the bad debt provision account at the beginning of the credit balance
5,300 yuan, the current year's business as follows:
October 15, due to the bankruptcy of the D company, 3,300 yuan of receivables can not be recovered, approved by the leadership of the recognition of bad debt loss
Loss, its accounting for the bad debt loss
Loss, its accounting for the bad debt loss
Loss, the company has established a percentage of receivables method.
Loss, its accounting treatment is: debit: bad debt provision 3 300 credit: accounts receivable 3 300
2007 has been written off bad debt on December 3, 2008 to recover 1 500 yuan, its accounting treatment is:
Borrow: bank deposits 1 500 credit: other receivables 1 500
Accounting staff at the end of the year to make provisions for bad debts, its accounting treatment is. :
Borrow: Asset impairment loss 4,000 Credit: Provision for bad debts 4,000
Analysis point: If you are a certified public accountant, analyze whether there are any problems in the company's accounting treatment. If there are, please
point them out and make adjusting entries.
Answer Hint: 1. The company's accounting treatment of recognizing a bad debt loss of $3,300 on October 15 was correct.
2. The recovery of bad debts written off should increase the balance of bad debt provision, the company recorded in other receivables, both to cause more
bad debt provision in the future, increasing costs, but also for the private coffers or embezzlement and fraud to provide the conditions.
3. At the end of the year, the company made an incorrect provision for bad debts for the current year, which should have been $500, but the company made $4,000
, which inflated the current expense by $3,500.
Adjusting entries: Debit: Other receivables 1 500 Credit: Provision for bad debts 1 500
Debit: Provision for bad debts 3 500 Credit: Loss on impairment of assets 3 500
Case of income from main business
1. Dahua Accounting Firm has been commissioned to audit Kunlun's 2008 annual accounting statements.
When reviewing the "Revenue from Main Business" journal, the CPA found the following:
1. Kunlun Company sold its new product A to Company W. The sales contract stipulated that the selling price of the product was 100,000 yuan, and that the product would be sold on a cash basis.
The contract also stipulated that Company W would not pay for the product if Company W did not pay for the product. At the same time, it is stated that company W can return the product if it is not satisfied with the product. 24 December, Kunlun receives the payment for the business, at the same time, the cost of 50,000 yuan of product A issued. The company can not reasonably estimate the probability of the return of the product, Kunlun recognized revenue on the same day and recorded in the accounts.
Borrow: Issued goods - Product A 50 000 Credit: Inventory goods - Product A 50 000
Borrow: Bank deposits 117 000 Credit: Revenue from principal business - -Product A 100 000
Taxes payable - VAT payable (output tax) 17 000
Borrow: Cost of main business - Product A 50 000
Credit: issued products - Product A 50 000
2. Kunlun company in December 28, 200,000 yuan in advance receipt of product B, the accountant according to a 200,000 yuan of letter remittance
Collection notice to do this accounting treatment:
Borrow: bank deposits 200 000
Credit: Revenue from main business 200,000
Analysis point: If you are the CPA, please analyze whether the accounting treatment of the above business is correct? If it is not correct,
How should it be adjusted?
Answer Tip: 1. In accordance with the provisions of the Accounting System for Business Enterprises (ASBE), for the sale of merchandise with sales return conditions, if the enterprise
can make a reasonable estimate of the likelihood of the return of the goods in accordance with the past manner or experience, the portion of the merchandise that is estimated that the return of the merchandise will not take place
will be recognized as revenue at the time of issuance of the merchandise, and the portion of the merchandise that is estimated to be likely to be returned will not be recognized as revenue. If a company is unable to determine the probability of return
of the merchandise sold, it should recognize revenue when the return period expires or the buyer formally accepts the merchandise. Instead, the company recognizes revenue when it cannot confirm
whether the goods are returned. The CPA should recommend that Kunlun make the following adjustments:
Borrow: Revenue from main business - Product A 100 000
Taxes payable - VAT payable (output tax) 17 000
Credit: Bank deposits 117 000
Borrow: Issued goods--Product A 50 000
Credit: Cost of main business--Product A 50 000
3. The company violated the accounting system on the advance receipt of The company violated the provisions of the accounting system on the time of recording when products are sold by way of sales on account, which inflated the revenue from main business in the current period and affected the authenticity of the accounting statements. The CPA suggested that Kunlun make the following adjustments:
Borrow: Revenue from main business 200,000
Credit: Accounts Received in Advance 200,000
Accounts Payable Case
1. Basic Case: When reviewing the accounts payable ledger of a certain enterprise, the auditor found that July 3, voucher No. 25 recorded accounts payable increased by 50,000 yuan, July 4, voucher No. 36 recorded reimbursement of 50,000 yuan of goods, payment of goods so quickly, suspected that there is a cash discount, decided to track down the relevant documents. Auditors access voucher No. 25, which is recorded as:
Borrow: Material Purchases 50,000 Credit: Accounts Payable - Southern Company 50,000
Attached to the documents for the supply unit invoice, a contract, the payment period of one month, within 10 days of payment, to give a cash discount of 20%.
The other voucher is the payment of 50,000 yuan, which is recorded in the voucher No. 36 on July 4.
Another voucher, No. 36, is recorded as follows:
Borrow: Accounts Payable - Southern Company 50,000
Credit: Bank Deposits 40,000
Cash on hand 10,000
The attached documents are the stubs of transfer cheques and two cash receipts.
Suspicion: a payment for goods using two settlement methods, and the amount of cash discount paid in cash, there must be a problem.
Audit analysis and process: the auditor to the receiving unit correspondence, the receiving unit only income of 40,000 yuan check; ask the
Nana, is the accountant Wang borrowed cash and issue checks for settlement of payments. After checking the loan and receipt of the same handwriting, the receipt
documents are forged. The internal control system of the unit under scrutiny of the purchase and payment of goods is lax, the accountant wang mou take advantage of his position, embezzlement of cash 1
million yuan. Wang confessed and the stolen money was recovered.
When the stolen money is recovered, borrow: cash on hand 10,000 credit: finance costs 10,000
2: Certified Public Accountants Zhang Hong and Li Li audited the "Accounts Payable
" item in the 2008 accounting statements of Xiahua Co. Through checking the detailed accounts, it is found that at the end of 2008, there are debit balances of 600,000 yuan each in accounts payable to Company A and Company B, and 900,000 yuan in accounts payable to Company C, which is a temporary borrowing of funds for the settlement of the project.
Analysis point: If you were a certified public accountant, what would you recommend to the auditee?
Answer Tip: The debit balances of $600,000 in the accounts of Company A and Company B are normal economic transactions. According to the
Enterprise Accounting System, reclassification adjustments should be made. In this regard, the CPA should recommend that XIAHUA make the
following adjusting entries
Borrow: Prepaid Accounts - Company A 600,000
- Company B 600,000
Credit: Accounts Payable - Company A 600 000
-- Company B 600 000
Company C account credit balance of 900,000 yuan, after reviewing the XIAHUA Company Limited temporary borrowing, mainly for the construction project in
The following adjusting entries
Adjustment entries as follows p>
Construction projects to settle the project price. The CPA should recommend that Xiahua make the following audit adjustments:
Borrow: Accounts Payable - Company C 900,000 Credit: Other Accounts Payable - Company C 900,000
Common Accounts Payable Errors:
1. False accounts payable to reconcile costs and expenses. Branches of enterprises in order to control the realization of their profits, often
take the form of false accounts payable, set up false expense items, so as to achieve the purpose of squeezing profits, control the amount of profit realization
. These accounts payable accounts are often linked to some expense accounts.
2. Overstated accounts payable, the excess amount of money for private consumption. Business insiders, such as accountants, can overstate accounts payable
accounts in their books and get a portion of the extra money when the business pays them back. Accountants sometimes make direct changes in the books; sometimes, the
original documents are modified.
3. Hidden sales revenue. Enterprises use products or commodities against accounts payable, concealment of income. In addition, criminals
in order to achieve the purpose of embezzlement, but also the use of "accounts payable" to hide sales revenue, the enterprise's funds transferred out.
4. Purchases returned without offsetting accounts payable, thus embezzlement of goods. Some people take advantage of their positions, without offsetting the corresponding
due to the payment of goods, but also according to the original purchase of goods to pay, from which the embezzlement of the company's money.
5. Accounts payable for a long time. Enterprises will have some accounts payable for a long time, the checking staff should pay attention to.
Accounts payable is usually the amount of money returned in a short period of time, if the long term hanging accounts, may be due to the limited ability to return, or someone to use
this account, false, but because of the failure to find a suitable opportunity, has not been charged to the account.
Fixed Assets Case
1, the CPA in the audit of a company's accounts, found that the cash disbursement journal of a summary column records
"Payment of dismantling equipment labor 600 yuan", in the "cash journal" and "bank journal". "The CPA suspects that the company may be using the cash disbursement journal to pay the labor cost of dismantling the equipment, but there is no corresponding record in the cash journal and the bank deposit journal. The CPA suspects that the company may have transferred the proceeds from the liquidation of the scrapped fixed assets to the "small treasury". The CPA first reviewed the voucher, which was a white slip approved by the leadership, "Payment to Wang Mou for equipment dismantling fee of 600 yuan", which was handled by the company as follows: Debit: Administrative Expenses 600 Credit: Inventory Cash 600
At the same time, the CPA examined the company's fixed asset journal and found that the summary columns of a voucher for the current month were as follows The summary column of a voucher for this month recorded
"One piece of scrap equipment", and the accounting treatment of the voucher was:
Borrow: Accumulated depreciation 80,OOO
Out-of-pocket expenses 20,000
Loan: Fixed Assets 100,000
According to the investigation, the equipment has been shipped to LM and LM has offered $40,000 for the end-of-life equipment,
with a blank receipt from the company.
Analysis point: What does the auditee's accounting treatment above indicate? Indicate how the auditee should make adjustments?
Answer Tip: The above facts show that the company in the process of cleaning up fixed assets, by charging the cleaning up expenses to the management fee
use, and transfer the income from the sale of fixed assets to the "treasury", in the accounting treatment of fixed assets not through the "Fixed Assets Cleaning Up" account, in order to hide the "Fixed Assets Cleaning Up" account. The "Fixed Assets Liquidation" account is not used to conceal the fact that the sale of fixed assets has been transferred to a "petty cash fund".
It is recommended that the audited unit make the following adjusting entries:
(1) Adjust the payment of demolition fees by borrowing: Fixed Assets Liquidation 600 Credit: Administrative Expenses 600
(2) Receive the liquidation income by borrowing: Cash on hand 40,000 Credit: Fixed Assets Liquidation 40,000
(3) Calculate the business tax due (40,000 × 5% = 2000)
(3) Calculate the business tax due (40,000 × 5% = 40,000 × 5% = 40,000 × 5% = 40,000 × 5% = 40,000 × 5% = 40,000 × 5% = 40,000 × 5%) 2000)
Borrow: Fixed Assets Liquidation 2,000 Credit: Taxes Payable - Business Tax Payable 2,000
(4) Adjust Non-Operating Income and Expenditure Borrow: Fixed Assets Liquidation 20,000 Credit: Non-Operating Expenditure 20,000
(5) Carry forward the results of the liquidation Borrow: Fixed Assets Liquidation 17,400 Credit: Non-Operating Income Liquidation 17 400 Credit: Non-operating Income 17 400
2, the auditor in November 2008 to review the basic production workshop equipment depreciation, in the review of fixed
asset ledger and manufacturing overhead ledger found the following:
(1) the end of October workshop depreciation of 14,000 yuan, the annual rate of depreciation of 6 percent;
(2) the end of October purchased a piece of equipment, the original value of 20,000 yuan, has been installed and delivered to use;
(3) October will be unused piece of equipment into the workshop, the original value of 10,000 yuan;
(4) in October handed over to the outside world overhaul of equipment a piece of equipment, the original value of 50,000 yuan;
(5) in October, the technological transformation of equipment a piece of equipment, delivered to use in October, the original value of the equipment was 10,000 yuan. Delivered for use, the original value of the equipment is 200 000 yuan, the technical transformation expenditure
out of 50 000 yuan, the realization of income 20 000 yuan;
(6) November the workshop equipment depreciation of 21 000 yuan.
Analysis point: the enterprise in October depreciation is correct, verify that the November depreciation is correct.
Answer Tip: Auditors based on the scope of depreciation of fixed assets, check the workshop in November 2008 should be depreciated
The amount of depreciation: 14,000 + [20,000 + 10,000 + (200,000 + 50,000 - 20,000)] × 6%/12 = 15,300 (yuan)
The amount of depreciation of the enterprise = 21,000-15,300 = 5,700 (yuan) 000-15,300 = 5,700 (yuan)
The auditor confirmed that the overdrawing of depreciation was due to the calculation error of the accountants after questioning the accountants concerned, and suggested that the enterprise should write back the overdrawing of depreciation, with the following adjustments:
Borrowing: Accumulated depreciation 5,700 Crediting: Manufacturing expenses 5,700
3. Zhang Hong, a certified public accountant, has conducted an investigation on Xiahua's 2008 business, and the company is now in a position to make an adjustment, Li Li audited the item "Fixed Assets and Accumulated Depreciation" in the accounting statements of Xiahua Company in 2008, and carried out necessary spot checks on the increase and decrease of fixed assets in 2008, as well as conducted a spot check on the physical assets of Xiahua Company in 2008. According to the records of physical inventory of fixed assets, there were 20 units of Dongfeng 140 automobiles for non-production use in the books
Actual inventory was 16 units. After checking the relevant information and investigating with the personnel concerned, it was learned that these 4 cars had been sold on June 20, 2008, and the actual collection was 48,000 yuan, and the actual price received was credited to the "other accounts payable" account. The original book value of the four cars sold was 220,000 yuan, accumulated depreciation of 170,000 yuan, the net value of 50,000 yuan, the fixed assets monthly depreciation rate of 10%.
Analysis point: Identify the problems with the above transaction and how it should be adjusted.
Answer Hints: Problems: 1. As a result of the sale of fixed assets did not reduce the book value of fixed assets, resulting in more depreciation of 6 months, 22,000 yuan (220,000 × 10%)
2. 48,000 yuan of proceeds from the sale of fixed assets sold, should be credited to the "Fixed Asset Disposal
3. The sale of fixed assets should be treated as a reduction of fixed assets.
To this end, it should be recommended that XIAHUA firstly write back the over-provision of depreciation, i.e.
Borrow: Accumulated depreciation 22,000Credit: Administrative expenses - depreciation 22,000
Then, according to the above instructions, make the following adjustments:
Borrow: Fixed Assets Liquidation 72,000
Accumulated depreciation 148,000
Credit: Fixed Assets 220,000
Borrow: Other Payables 48,000 Credit: Fixed Assets Cleanup 48,000
Borrow: Non-Operating Expenses 24,000 Credit: Fixed Assets Cleanup 24,000
Case of Inventory
Basic Case: Audit Personnel review the production cost of an enterprise product B, found the following: the enterprise product B according to the approximate
Equivalent production method of calculating the cost of products in the basic production plant at the beginning of the month in the cost of products, the direct material costs 36 000 yuan,
direct labor costs 9 000 yuan, manufacturing costs 13 500 yuan. This month incurred direct material costs 165 600 yuan, direct labor costs 22 500 yuan, manufacturing costs 58 500 yuan. This month's completion of 120 units of products, 60 units of products at the end of the month, 90% of the products in the feeding rate, completion rate of 60%. After verification, the actual cost of products in the book at the end of the month 118 500 yuan, including direct material costs 87 600 yuan, direct labor costs 10 500 yuan, manufacturing costs 20 400 yuan. The cost of completed products has been carried forward this month.
Requirements: (1) check the actual cost of products in process; (2) point out the problems; (3) suggest treatment.
Analysis: (1) Check the actual cost of products in the product:
Direct material costs in the product = [(36,000 + 165,600) / (120 + 60 × 90%)] × 60 × 90% = 62,566 (yuan)
Direct labor costs in the product = [(9,000 + 22,500) / (120 + 60 × 60%)] × 60 × 60% = 7,269 (yuan) 60×60% = 7,269 (yuan)
Manufacturing cost of products in process = [(13,500 + 58,500)/(120 + 60×60%)] × 60×60% = 16,615 (yuan)
Actual cost of products in process = 62,566 + 7,296 + 16,615 = 86,450 (yuan)
Under-conversion of finished product cost = 118 500 - 86 450 = 32 050 (yuan)
(2) The enterprise has under-transferred the cost of finished products by 32 050 yuan.
(3) The under-transferred cost of finished products should be carried forward.