Case 1] In 2020, a manufacturing enterprise had an additional depreciation of a fixed asset, which should have been depreciated by 1 million, but as a result, a zero was added, and 9 million was added, and the management expenses were 9 million more, and the profit of the year was 9 million less. In 2021, this error was discovered, and the amount of money was huge, and of course the error was corrected in the early stage.
1) Accounting processing.
Entry 1 - Depreciation reversed to Duoti.
Borrow: accumulated depreciation of 9 million.
Credit: Prior year profit and loss adjustment (2020 administrative expenses) 9 million.
Entry 2 – Adjustment of income tax payable.
Borrow: Profit and loss adjustment for previous years (income tax in 2020) 2.25 million.
Credit: Taxes payable - Income tax payable 2.25 million.
Entry 3 - Carry forward the balance of profit or loss adjustments for prior years to undistributed profits.
Borrow: Profit and loss adjustment for previous years was 6.75 million.
Credit: Profit distribution - undistributed profit 6.75 million.
Entry 4 - If there is a recognized surplus reserve in the previous year, we also need to adjust the surplus reserve.
Debit: Profit distribution – undistributed profit 6750 thousand.
Credit: Surplus Reserve - Statutory Surplus Reserve 6750 thousand.
2) Presentation of statements.
Assets: Fixed assets increased by 9 million.
Liabilities: Taxes payable increased by 2.25 million.
Owners' equity: Undistributed profit increased by 60750 thousand.
The surplus reserve increased by 6750 thousand.
Income statement: increase the amount of management expenses in the previous year by 9 million;The income tax expense was increased by 2.25 million yuan in the previous year, and the profit was increased by 6.75 million yuan in the previous year.
Case 2] When the auditors reviewed the increase in fixed assets of Company A in 2 15 years, they found that the cost statement and budget table of the fixed assets completed by the company in June 2 20 were 150,000 yuan, and they found that the production and operation expenses incurred during the construction of the project were high. Therefore, the auditors suspected that Company A's cost measurement of the construction in progress and the cost measurement during the construction period were incorrect, so they checked the relevant accounts of Company A.
Verification: The auditors flipped through the detailed accounts and accounting vouchers related to management expenses in April 2 20, and found that the amount of expenditure for the installation of fixed assets of Company A was 50,000 yuan, and the relevant entries were as follows:
Borrow: 50000 for administrative expenses
Credit: Bank deposit 50000
So how should this business be adjusted?
1] Borrow: fixed assets 50,000.
Credit: Profit and loss adjustment of 50,000 yuan for previous years.
2] Borrow: Profit and loss adjustment for previous years 1250,000.
Credit: Tax Payable - Income Tax Payable 1250,000.
3] Borrow: Profit and loss adjustment for previous years 3750,000.
Credit: Profit Distribution - Undistributed Profit 3750,000.
Assets: Fixed assets increased by 50,000 yuan.
Liabilities: Tax payable increased by 1250,000.
Owners' equity: Undistributed profit increased by 3750,000.
1] Account adjustment is not arbitrary, and account adjustment is not unauthorized account reversal, it must be well-founded, reasonable and legal.
2] Before adjusting each account, it is necessary to trace back to the source, find out the reason for the occurrence of the account, and clarify the true face of the business.
3] The adjustment of each account must not be for the purpose of tax evasion, but on the premise of restoring the truth of the matter and returning to the actual business for the purpose.
4] Accountants should remember: the adjustment must be cautious, the adjustment is risky, the adjustment must be legal, and the adjustment must be skillful.
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