Solution manual for the final activities

Page 278 1·· Record the following operations in the Journal made by
the company CRISCAR, SA. VAT 21 %:
1. Issue an invoice for the amount of €1400, plus VAT, for the rental of
one of the warehouses owned by you. The payment will be made within
10 days. Withholding for IRPF 19%.
Charge the outstanding debt from the previous point to the bank.
3. Purchase various office supplies for consumption for the amount of 50 €.
The payment is made in cash.
4. Cash payment of €160 for cafeteria services provided to the
employees of the company.
5. The amount of the phone bill amounts to 160 €, plus VAT.
will pay within 10 days.
6. Pay the debt from the previous point through the bank current account.
7. For advertising expenses for ads published in the press, they invoice
to the company 900 €, plus VAT.
8. Accepts a promissory note for the debt from the previous point due
in 30 days.
9. Pay the promissory note from the previous point through the bank.
10. The staff payroll presents the following details:
– Total devengado: 3000 €
Total amount of the Contributions Settlement Receipt:
1303,75€
Total contributions to Social Security from workers:
222,25€
Withholdings for IRPF: 300 €
Pay the amount by bank. The salary of a is pending payment.
worker, amounting to 800 €.
11. Days later, pay the outstanding payroll by check at the point
previous.
12. Pay off the debts with the Public Administrations through the bank.
point 10.
13. Pay the theft insurance premium by bank transfer.
company, which amounts to 380 €.
14. The invoice for the rent of the building where the
offices. The amount is 900 €, plus VAT. Withholding for IRPF 19%.
15. Pay the debt from the previous point by bank transfer.

Ledger
1
266,00 (473) HP, withholdings and payments to
count
(19% of 1400.00)
1428,00 (440) Debtors
a (752) Revenues from 1400,00
leases
(477) HP, VAT passed on 294.00
(21 % of 1400.00)
2
1428,00 Banks c/c
 Unit 13 – Current Management Expenses and Income 2

a (440) Debtors 1428,00

3
50.00 Other services
10.50 (472) HP, supported VAT
(21% of 50.00)
a (570) Box, € 60.50
4
160.00 (570) Box, €
a (755) Income from services to 160,00
personal
5
160,00 Other services
33.60 (472) HP, VAT supported
(21% of 160.00)
a (410) Creditors for 193.60
service provisions
6
193.60 (410) Creditors for
provision of services
a Banks current account 193.60
7
900,00 (627) Advertising, propaganda and
public relations
189.00 (472) HP, supported VAT
(21 % of 900.00)
a (410) Creditors for 1089,00
service benefits
8
1089.00 (410) Creditors for
service provisions
a (411) Creditors, effects 1089.00
commercials payable
9
1089.00 (411) Creditors, effects
accounts payable
a Bank accounts 1089,00
x
 Unit 13 - Current Management Expenses and Income 3

10
3000,00 Salaries and wages
1081,50 Social Security at charge
from the company
(1303.75–222.25)
a (4751) HP, creditor for 300.00
withholdings applied
(476) Organisms of the 1303.75
Social Security
creditors
Remunerations 800,00
pending payment
Banks c/c 1677.75
11
800.00 (465) Remunerations
pending payment
a Banks c/c 800.00
12
300,00 (4751) HP, creditor for
withholdings made
1303.75 (476) Organisms of the
Social Security
creditors
a (572) Bank current accounts 1603.75
13
380,00 Insurance premiums
a Banks c/c 380,00
14
900.00 Leases and fees
189.00 (472) HP, supported VAT
(21% of 900.00)
a (4751) HP, creditor for 171.00
withholdings made
(19% of 900.00)
(410) Creditors for 918,00
service provisions
15
918.00 (410) Creditors for
service provisions
a (572) Bank accounts 918,00
X

2·· Record in the Journal the following operations carried out by

the company LEOVIC, SA. VAT 21 %:

For the advisory services provided by a lawyer, he/she receives

invoice for an amount of 430 €, plus VAT, which remains unpaid.
Withholding for IRPF 15%.
2. Pay the invoice from the previous point by check.
3. A transport company that has carried out the transfer of the
goods that the company has sold presents an invoice for an amount
270 €, plus VAT. Payment will be made within 30 days.
4. Pay the debt from the previous point using the bank checking account.
5. An employee of the company requests an advance of 300 €. The company grants it.
granting by sending a bank transfer for the requested amount.
 Unit 13 - Current management expenses and income 4

6. Pay the payroll of the month through the bank, which presents the following breakdown:
– Total devengado: 2000 €
Total liquid amount of the Settlement Receipt of Contributions: €869.17
Total contributions to the Social Security of workers: €148.17
- Withholdings for income tax: 160 €
Recover the advance.
7. Make a bank transfer for the amount of 1250 € to a
provider. The bank charges €5 for that transfer.
8. Receive the invoice for the repair carried out on one of the machines.
the company. The amount comes to 560 €, plus VAT, which remains
pending payment.
9. Pay the invoice from the previous point by bank transfer.
10. Pay through the current bank account 80 €, plus 10% VAT,
for the water supply.
11. Pay the outstanding debts with the Public Administrations of
point 6 by bank transfer.
12. Pay the electricity bill through the bank current account that
rises to 240 €, plus VAT.
Pay by bank €400 for canteen assistance and €1900 as a concept of
compensations.
14. For the provision of transportation services, without this being its
regular activity, invoice 260 €, plus VAT, which remains pending of
charge.
15. Draft a bill of exchange with a due date of 30 days, which is accepted.
16. Collect from the bank the outstanding debt from the previous point.

Diary Book
1
430.00 (623) Professional services
independents
90.30 (472) HP, VAT supported
(21% of 430.00)
a (4571) HP, creditor for 64.50
withholdings performed
(15% of 430.00)
(410) Creditors for 455.80
service provisions
2
455.80 (410) Creditors for
service provisions
a (572) Banks c/c 455.80
3
270,00 (624) Transport
56.70 (472) HP, VAT supported
(21 % of 270.00)
a (410) Creditors for 326,70
services provision
4
326.70 (410) Creditors for
service provisions
a Banks c/c 326.70
x
 Unit 13 - Current Management Expenses and Income 5

5
300.00 (460) Advances of
remunerations
a (572) Banks c/c 300,00
6
2000,00 Salaries and wages
721.00 Social Security charge
from the company
(869,17–148,17)
a (4751) HP, creditor for 160,00
withholdings made
(476) Organisms of the 869,17
Social Security
creditors
(460) Advances of 300.00
remunerations
(572) Banks c/c 1391.83
7
1250.00 (400) Suppliers
5.00 (626) Banking services and
similar
a (572) Banks c/c 1255,00
8
560,00 (622) Repairs and
conservation
117,60 (472) HP, VAT supported
(21% of 560.00)
a (410) Creditors for 677,60
service provision
9
677.60 (410) Creditors for
service provision
a Bank accounts 677,60
10
80,00 (628) Supplies
8.00 (472) HP, supported VAT
(10 % of 80.00)
a (572) Banks c/c 88.00
11
160.00 (4751) HP, entitled to
withholdings made
869.17 (476) Organisms of the
Social Security
creditors
a Bank current accounts 1029.17
12
240,00 Supplies
50,40 (472) HP, VAT paid
(21 % s/ 240.00)
a Bank accounts 290.40
13
400,00 (649) Other social expenses
1900.00 Compensations
a (572) Bank current accounts 2300,00
x
 Unit 13 - Current Management Expenses and Income 6

14
314.60 Debtors
a Income from services 260.00
various
(477) HP, VAT passed on 54.60
(21% of 260.00)
15
314.60 Debtors, effects
commercials to be charged
a Debtors 314.60
16
314,60 (572) Bank accounts
a Debtors, effects 314.60
commercials to be collected
x
 Unit 13 - Current Management Expenses and Income 7

Page 280 Solution to the Evaluation

The operations carried out by companies 7. Premiums for life insurance contracts
related to management expenses and income the workers will be accounted for in the account:
current should be accounted for in the period a) (625) Primas de seguros.
economic in which they occur. This is an application b) (649) Other social expenses.
del: c) (640) Salaries and wages.
a) Going concern principle. (649) Indemnities.
b) Principle of caution. 8. They are subject to withholding:
c) Principle of relative importance.
d) Accrual principle. a) The occasional remuneration to the staff.
b) The company's contributions to the organizations
2. The account (620) Research expenses and of the Social Security.
development of the exercise: c) The outstanding debts with organizations of the
At the end of the exercise, your balance will be charged with a credit. Social Security.
to account (129) Result of the exercise. d) No answer is correct.
b) It will present a debit balance.
9. Account (759) Income from various services:
c) Born by the Credit.
d) All answers are correct. a) Al final del ejercicio su saldo se abonará con cargo
to the account (129) Result of the exercise.
3. When an entry is recorded in the b) It belongs to current assets.
Should the account (627) Advertising, propaganda and It will present a debit balance.
public relations and in the Credit account (410) d) No answer is correct.
Creditors for services rendered, in this
operation is recorded: 10. When in an entry it is recorded in the
Account (440) Debtors and on the Debit side the
An investment and a payment. account (572) Banks checking account, in this operation it is
b) An investment, but not a payment. register
c) An expense and a payment.
An expense, but not a payment. an income and a collection.
b) An investment and a collection.
4. The travel expenses of the company's staff are an income, but not a collection.
will be accounted for in the account: d) No income is recorded, but a payment is received.
(624) Transport. 11. The fixed amounts received for the assignment
b) (649) Other social expenses. in the exploitation of industrial property
(629) Other services. will be accounted for in the account:
d) (623) Independent professional services.
(203) Industrial property.
5. They are subject to withholding: b) (753) Income from industrial property assigned in
a) The commissions that are paid to agents exploitation.
independent mediators. (621) Leases and royalties.
b) The expenses incurred for the advertising carried out (759) Other service income.
for the company. 12. The fixed or variable amounts perceived as
c) The maintenance expenses of the goods consideration for mediation services provided
understood in group 2. they will be regularly recorded in the account:
d) The amounts paid as premiums
of insurance. (754) Commission income.
b) (759) Income from various services.
6. The account (476) Social Security Bodies, c) (705) Service provisions.
acreedores: d) (755) Income from services to personnel.
a) Belongs to current liabilities. 13. The account (473) HP, withholdings and payments on account:
It originates from the Debit.
c) At the end of the exercise, your balance will be credited with charge a) It belongs to non-current liabilities.
b) It arises on the Debit side.
to account (129) Result of the exercise.
d) No answer is correct. c) It belongs to current assets.
d) No answer is correct.