Sole Proprietorship Financial Records: 2008
Assumption 19
The sole proprietorship “CRAFTSMAN”, devoted to the purchase and sale of handicrafts, presents the following stocks balance as of November 30, 2008:
Checking Balance as of November 30, 2008
Acct. | Title | Balance | Acct. | Title | Balance |
210 211 216 218 300 327 406 407 430 4310 4311 4315 436 440 460 472 570 572 600 602 621 625 626 628 640 642 694 706 708 709 | Land and Natural Resources Constructions Furniture Transport Elements Goods Packaging Containers to be Returned to Suppliers Advances to Suppliers Customers Commercial Paper in Portfolio Trade Bills Discounted Commercial Paper Outstanding Customers, Doubtful Debts Debtors Advances of Pay HP, VAT Fund EUR Banks c/c, Euros Purchases of Goods Purchases of Other Provisions Rents and Royalties Insurance Premiums Banking and Similar Supplies Wages and Salaries Social Security Charged to the Company Losses to be Determined from Credits by OC Discount on Sales for Prompt Payment Returns on Sales and Similar Operations Sales Rappels | 10,000 40,000 6,000 24,000 15,200 2,000 1,500 2,000 14,160 20,000 12,000 2,960 3,500 5,500 640 3,260 5,000 56,950 40,200 5,400 6,200 3,000 650 2,200 115,500 37,400 3,500 500 1,040 1,320 | 102 112 2811 2816 2818 400 401 437 438 4751 476 477 490 5208 606 608 609 700 704 752 | Capital Legal Reserve Accumulated Amortization of Constructions Accumulated Amortization of Furniture Accumulated Amortization of Transport Elements Suppliers Suppliers, Commercial Effects to Pay Containers to be Returned by Customers Customer Advances HP Retained Credits Practiced Social Security Organizations, Creditors HP, Output VAT Impairment of Credit Value by OC Debts for Discounted Effects Discounts on Purchases for Prompt Payment Returns and Operations on Purchases Discounts Based on Purchases Sales of Merchandise Sales of Packaging Income from Leases | 100,000 20,000 5,000 150 5,000 10,500 15,500 1,800 800 3,150 4,080 12,500 3,500 12,000 3,500 5,500 1,000 225,000 5,600 7,000 |
Total Debit Balances | 441,580 | Total Credits | 441,580 |
During December 2008, the Artisan has done the following:
- 1. Upon the expiration of half the drafts, which had been discounted, the bank announced that all have been processed through their books, except for one whose face value is 1,200 euros. The bank proceeded to charge that amount to the company’s checking account, along with €60 for the return postage of the draft.
1,200.00 | 4315 | Commercial Paper Outstanding | to | Trade Bills Discounted | 4311 | 1,200.00 |
1,200.00 60.00 | 5208 626 | Debts for Discounted Effects Banking and Similar | to | Banks c/c, Euros | 572 | 1,260.00 |
4,800.00 | 5208 | Debts for Discounted Effects (6,000 – 1,200) | to | Trade Bills Discounted | 4311 | 4,800.00 |
- 2. Goods are bought on credit in the amount of 10,200 euros. The bill includes a discount of 200 euros. These goods are contained in returnable containers that are loaded for 400 euros.
10,000.00 400.00 1,664.00 | 600 406 472 | Purchases of Goods (10,200 – 200) Containers and Packaging to be Returned to Suppliers HP VAT [0.16 * (10,200 – 200 + 400)] | to | Suppliers [1.16 * (10,200 – 200 + 400)] | 400 | 12,064.00 |
- 3. A new draft is issued to the customer from operation 1, which includes the nominal amount above plus 60 euros to offset the cost of returning.
1,260.00 | 4310 | Commercial Paper in Portfolio | to to | Commercial Paper Outstanding Other Financial Income | 4315 769 | 1,200.00 60.00 |