There are two ways to correct a mistake in the current year: (1).Write-offError entries are re-compiledCorrectAccounting entries;(2) Prepare a lump sum directly on the basis of error entriesAdjust entries, there are: error entry+Adjust entries= Correct accounting entries.
None of the following examples take into account other factors such as VAT.
Sample questions: On January 1 of the first year, A and B sign a contract for each productMeta sells products to it;If B's purchase volume exceeds 300,000 pieces in the first half of the year, the sales of the product** will:Retrospectively downgradedto $15 per piece. Contract commencement date, AEstimatedB. Purchases in the first half of the yearIt can be achieved300,000 pieces. At the end of February of the first year, Company A delivered the first batch of 100,000 products, each costing 12 yuan. At the end of February of the first year, Company A recognized the main business income when the product was delivered10) million yuan, carry-over of the main operating cost of 120 (12 10) yuan.
Analytics: A's accounting treatment is incorrect. Reason: Obtained when the product was delivered to BUnconditional right to receive money, i.e. A has the right to follow each productYuan ** collects payment from the customer until the customer's purchase volume reaches 300,000 pieces. Due to Company AEstimatedThe customer's purchase volume is able to reach 300,000 pieces, therefore, according to the willVariable considerationLimit requirements to count towards transactions**, AYesDetermine the transaction for each productyuan (the contract stipulates that B's purchase volume reaches 300,000 pieces, ** becomes 15 yuan), and A still recognizes the income according to the ** of 20 yuan per product, so the accounting processing is wrong.
aWrongThe accounting entries for recognizing revenue are:
Debit: Accounts receivable 200
Credit: main business income
The two methods of error correction are as follows:
Write off the error entries and prepare the correct accounting entries.
Write off error entries.
Borrow:The main business income is 200
Credit: Accounts receivable 200
Prepare correct entries.
Debit: Accounts receivable 200
Credit:Main business income 150
Projected liability 50
Interpretation: Write off the wrong accounting entries first, and then prepare the correct accounting entries. The erroneous main business income of 2 million yuan is written off in the first entry, and the correct main business income of 1.5 million yuan is confirmed in the first entry, and it is recognized at the same time".Projected liabilities"500,000 yuan, because it is now estimated that it is likely to be settled according to the ** of 15 yuan per piece in the future, so the amount that is likely to be returned in the future = (20-15) 10 = 500,000 yuan, this kind of consideration that is likely to be paid in the future is a contingency, and when the conditions for liability recognition are met, it is generally included".Projected liabilities”。In addition, there are no errors in the measurement of the cost of the main business and there is no need to adjust.
Direct preparation of adjusting entries.
Borrow: 50 of the main business income
Credit: Projected liabilities 50
InterpretationThe reason why the original accounting entries were wrong was that the "main business income" was overcounted by 500,000 yuan and the "estimated liabilities" were undercounted by 500,000 yuanReduction"Main business income" is 500,000 yuanRetroactiveThe "estimated debt" of 500,000 yuan is enough.
Additional note: The specific way to correct the error still depends on the specific requirements of the topic.
Sample questions: On December 1 of the first year, A is BSell and installOne piece of equipment, the contract period is 2 months, and the transaction is 4 million yuan. The parties agree that the full amount of payment can only be collected after the performance of the contract obligations are completed. The equipment is sold separately for 3 million yuan, and the installation labor service is sold for 2 million yuan. On December 6, A purchased the equipment for 1.8 million yuan, and started the installation according to the contract on the same day, and B accepted it and obtained control, at which time A asked BSalesequipmentPerformance ObligationsDone. As of December 31 of the first year, A actually incurred installation costs of 600,000 yuan, and it is estimated that installation costs will also incur 400,000 yuan. A confirms the deviceSalesMain business income10,000 yuan, and confirmed accounts receivable of 3 million yuan. A is confirmed at the end of the yearInstall revenueAmount10,000 yuan, and confirmed accounts receivable of 2 million yuan.
Analytics: A's accounting treatment is incorrect. Rationale: A should trade **(Apportionmentto the amount of equipment sold and installed. Equipment salesTransactions that should be apportioned**10,000 yuan [(400Equipment installationTransactions that should be apportioned**10,000 yuan [(400/（300＋200）]；Therefore, the main business income of equipment sales should be recognized as 2.4 million yuan;The contract stipulates that it should be AFulfillment completed, the full contract amount can be collected from B, so it should be confirmed when the sale of equipment is completedContract Assets2.4 million yuan (.)No, you can'tConfirm accounts receivable). Installation performance progress = 60 (60 40) 100 = 60, the amount of installation revenue of 960,000 yuan (160 60) should be recognized, and confirmed at the same timeContract Assets960,000 yuan (No, you can'tConfirm accounts receivable).
The two methods of error correction are as follows:
Write off the error entries and prepare the correct accounting entries.
Write off error entries.
Borrow:Main business income - equipment sales 300
Credit: Accounts receivable 300
Borrow:Main business income - equipment installation 200
Credit: Accounts receivable 200
Interpretation: A to the sales of equipment recognized by the main business income and accounts receivable to be all written off, the installation of equipment recognized the main business income and accounts receivable to be all written off, when the reversal, the reverse preparation of accounting entries can be.
Prepare correct entries.
Debit: Contract asset 240
Credit:Main business income - equipment sales 240
Borrow: Contract Asset 96
Credit:Main business income - equipment installation 96
InterpretationThe correct accounting entry should be to recognize the main business income and contract assets of 2.4 million yuan for equipment sales, and the main business income and contract assets of 960,000 yuan for equipment installation.
Direct preparation of adjusting entries.
Debit: Contract asset 240
Main business income - equipment sales 60
Credit: Accounts receivable 300
Borrow: Contract Asset 96
Main business income - equipment installation 104
Credit: Accounts receivable 200
Interpretation: The error in the accounting entries related to the revenue from the sale of equipment is that the accounts receivable are overrecognized by 3 million yuan, the revenue is overrecognized by 60 (300-2.40) yuan, and the contract assets are underrecognized by 2.4 million yuan, which can be directly corrected in the adjustment entries. The error in the accounting entries related to the equipment installation income is that the accounts receivable are overrecognized by 2 million yuan, the revenue is overrecognized by 104 (200-96) yuan, and the contract assets are underrecognized by 960,000 yuan, which can be directly corrected in the adjustment entries.
Sample questions: With the approval of the Board of Directors, with effect from January 1 of the third year, A will change the depreciation period of the equipment used for management fromyear changed toYear. The equipment was put into use in December of the first year, the original price was 6 million yuan, the expected service life was 10 years, the net residual value was expected to be zero, the depreciation was calculated by the average method of the years, and no impairment provision was made as of December 31 of the third year. Company A in the 3rd year of the equipmentStillDepreciation is calculated for the original 10 years.
Analytics: A's accounting treatment is incorrect. Rationale: The change of depreciation period (10 years to 5 years) belongsChanges in accounting estimates, should be adoptedApplicable Law for the FutureCarry out accounting treatment. Since the equipment was purchased in December of the first year, depreciation began on January 1 of the second year, and when it was changed on January 1 of the third year, it was depreciated for 1 year, and the depreciation was still calculated according to 10 years in the third year (depreciation amount = 600 10 = 600,000 yuan), obviously the depreciation was less, and the third yearYesProvision for depreciation = (600 600 10).= 1,350,000 yuan, so neededSupplements=135-60=750,000 yuan.
The two methods of error correction are as follows:
Write off the error entries and prepare the correct accounting entries.
Write off error entries.
Borrow:Accumulated depreciation 60
Credit: Administrative Fee 60
Prepare correct entries.
Borrow: Administrative Expenses 135
Credit: Accumulated depreciation 135
Direct compilationAdjust entries
Borrow: Administrative Fee 75
Credit: Accumulated depreciation 75
The principle of error correction is the same as the previous example and will not be repeated.
Sample questionsOn December 31, the first year, Company A received a notice from the court, and was told that Company B sued Company A for infringement of patented technology and demanded compensation of 3.6 million yuan from Company A. Company A believes that the probability of compensating the plaintiff is more than 90, and the most likely amount of compensation to occur is between 2.8 million and 3.2 million yuan, and the probability of each amount in this range is about the same, and at the same time bear the litigation costs of 10,000 yuan. Accounting treatment of Company A:
Borrow: Non-operating expenses 321
Credit: Projected Liabilities 321
Analytics: Company A's accounting treatment is incorrect. Reason: If there is a continuous range of the amount of compensation to be paid, and the probability of the occurrence of various outcomes within the range is the same, the best estimate should be determined according to the median value of the range, that is, the average of the upper and lower limit amounts, and its amount = (280 320) 2 = 3 million yuan.
The two methods of error correction are as follows:
1) Write off the error entries and then prepare the correct accounting entries.
Write off error entries.
Borrow: Projected liability 321
Credit: Non-operating expenses 321
PreparationCorrect entries
Borrow:Management fees
Non-operating expenses
Credit: Projected Liabilities 301
2) Direct compilationAdjust entries
Borrow: Overhead 1
Projected liability 20
Credit: Non-operating expenses 21
The principle of error correction is the same as the previous example and will not be repeated.