 | Accounting for the Microbusiness - A Teaching Manual (Peace Corps, 1975, 105 p.) |
 |  | Information |
| | Acknowledgement |
| | Introduction |
|  | The system |
| | (introduction...) |
| | The preliminary interview |
| | Lesson # 1 |
| | Lesson # 2 |
| | Lesson # 3 |
| | Lesson # 4 |
| | Installation of the system |
| | Follow-up visits |
| | Month end financial statements |
| | Analysis |
| | The financial statements |
| | Additional controls |
| | Odd entries |
| | Aids |
| | Accounting interview |
| | The object of accounting |
| | Balance statement |
| | Assets = Capital |
| | Assets - Liabilities = Capital |
| | Profit and loss statement |
| | Cost of goods sold |
| | Trial balance |
| | Initiation sheet |
| | Definition of debit and credit |
| | The evolution of debit and credit |
| | Transactions |
| | Cash voucher |
| | Sales voucher |
| | Receipt |
| | Diagram of the system |
| | Cash book |
| | Guide to accounting entries |
| | Cash transactions |
| | Credit sales book |
| | Credit purchases book |
| | Credit sales |
| | Credit purchases |
| | Payments |
| | Loans to employees section |
| | Loans to employees list |
| | Book of accounts: Title of account pages |
| | Monthly inventory listing |
| | Guide to financial statement elaboration |
| | Uniterrupted working capital flow |
| | Interrupted working capital flow |
| | Inventory control - page examples |
| | Control of postdated checks |
| | Auxiliary cash on hand sheet |
| | Credit payments with merchandise |
| | Alternative Acc/Rec section |
The financial statements
To Accompany the System's Entries
1. Beginning Balance Statement
2. Trial Balance
3. Income
Statement
4. Ending Balance Statement
BALANCE STATEMENT
|
Company: Colombian Industries | |
Date: June 30 | |
|
Assets |
| | |
|
Current |
| | |
|
Cash on hand |
250 | | |
|
Banks |
2,500 | | |
|
Loans to Employees |
180 | | |
|
Receivables |
5,600 | | |
|
Inventory |
10, 000 | |
|
|
Short- term investments |
- 0 - | | |
|
Total Current Assets |
|
18, 530 (a) |
|
|
Fixed Assets |
| | |
|
Investments |
- 0 - | | |
|
Machinery, equipment, tools, etc. |
30,000 | | |
|
TOTAL ASSETS |
| |
48, 530 (1) |
|
Liabilities |
| | |
|
Current |
| | |
|
Accounts Payable |
5, 400 | | |
|
Current Obligations |
12,000 | | |
|
Total Current Liabilities | |
17,400(b) | |
|
Long Term |
| | |
|
Accumulated Social Benefits |
3,100 | | |
|
Bank Obligations |
- 0 - | | |
|
Finance Obligations |
20,000 | | |
|
Others |
- 0 - | | |
|
TOTAL LIABILITIES | | |
40, 500 (2) |
|
Capital |
| | |
|
Beginning Capital |
8,030 | | |
|
Profit/Loss previous years | | | |
|
Profit/Loss this year (P&L) | | | |
|
TOTAL CAPITAL |
| |
8,030 (3) |
|
Working Capital |
|
1,130 (c) | |
| |
1 - 2 = 3 = CAPITAL | | |
| |
a - b = c = WORKING CAPITAL | | |
TRIAL BALANCE
|
Company: Colombian Industries | |
Date: July 31 | |
| |
COLUMN I | |
COLUMN II |
|
Cash on hand |
290 | | |
|
Banks |
833 | | |
|
Loans to Employees |
110 | | |
|
Receivables |
19, 600 | |
|
|
Inventory (previous month) |
10,000 | | |
|
Investments |
- 0 - | | |
|
Fixed Assets |
30,000 | | |
|
Depreciation |
| |
- 0 - |
|
Accounts payable |
| |
15,783 |
|
Current Obligations |
| |
12,000 |
|
Accumulated Social Benefits | | |
3,100 |
|
Bank Obligations |
| |
- 0 - |
|
Finance Obligations |
| |
19,000 |
|
Other Obligations |
| |
- 0 - |
|
Beginning Capital |
| |
8,030 |
|
Profit/Loss previous years |
(Lose) | |
(Profit) |
|
Profit/Loss this year |
(Lose) | |
(Profit) |
|
Sales | | |
30,000 |
|
Coat of Sales |
- 0 - | | |
|
Purchases of Raw materials |
16,000 | | |
|
Labor |
3,800 | | |
|
Social Benefits |
447 | | |
|
Personal Expenses |
4,700 | | |
|
Other Expenses |
1,800 | | |
|
Interest |
333 | | |
|
Other Revenue or Expenses |
- 0 - | | |
|
TOTALS (Must be equal) |
87,913 | |
87,913 |
PROFIT AND LOSS STATEMENT
|
Company: Colombian Industries | |
Period: 1 - 31 of July | |
|
SALES |
| |
30 000 |
|
Less Coat of Sales |
| |
- - 0 - |
|
NET SALES |
| |
30, 000 (1) |
|
Coat of Goods Sold | | | |
|
Initial Inventory |
10, 000 | |
|
|
Plus: Purchases of Raw materials |
+ 16,000 | |
|
|
Subtotal |
26, 000 | |
|
|
Less: Final Inventory |
- 6,000 | |
|
|
Cost of Goods Sold |
20,000 | |
- 20,000(2) |
|
+Marginal Utility [(1)-(2)] | | |
10, 000(3) |
|
Other Revenues & Expenses | |
| |
|
Labor |
3, 8 00 | |
|
|
Social Benefits |
447 | | |
|
Personal Expenses |
4. 700 | | |
|
Other Expenses |
1, 800 | | |
|
Interest |
333 | | |
|
Other Revenue or expenses |
- 0 - | | |
|
Total Costs |
11,080 | |
- 11,080 (4) |
|
++Profit |
| |
= = = = = |
|
+++Loss |
| |
(1,080) |
|
+ Net Sales less Coat of Goods Sold | |
| |
|
(1) - (2) = Marginal Utility (3) | | | |
|
++ If marginal utility is greater than expenses | | | |
|
(3)- (4) = Profit |
| | |
|
+++ If marginal utility is less than expenses | | | |
|
(4) - (3) = Loss |
| | |
BALANCE SHEET
|
Company: Colombian Industries | |
Date: July 31 | |
|
Assets |
| | |
|
Current |
| | |
|
Cash on hand |
290 | | |
|
Banks |
833 | | |
|
Loans to employees |
110 | | |
|
Receivables |
19, 600 | |
|
|
Inventory |
6,000 | | |
|
Short-term investments |
- 0 - | | |
|
Total Current Assets |
|
26,833 (a) | |
|
Fixed Assets |
| | |
|
Investments |
- 0 - | | |
|
Machinery, equipment, tools, etc. |
30,000 | | |
|
TOTAL ASSETS |
| |
56,833(1) |
|
Liabilities |
| | |
|
Current |
| | |
|
Accounts Payable |
15,783 | | |
|
Current Obligations |
12,000 | | |
|
Total Current Liabilities | |
27,783(b) | |
|
Long Term |
| | |
|
Accumulated Social Benefits |
3,100 | | |
|
Bank Obligations |
- 0 - | | |
|
Finance Obligations |
19,000 | | |
|
Others |
- 0 - | | |
|
TOTAL LIABILITIES | | |
49,883 (2) |
|
Capital |
| | |
|
Beginning Capital |
8,030 | | |
|
Profit/Loss previous years | | | |
|
Profit/Loss this year (P&L). |
(1,080) | |
|
|
TOTAL CAPITAL |
| |
6,950(3) |
|
Working Capital |
|
(950) (c) | |
| |
1 - 2 = 3 = CAPITAL | | |
| |
a - b = c = WORKING CAPITAL | | |
|
|