PRACTICAL CASES OF

INTRODUCTION TO THE
ACCOUNTING

DIPLOMA IN LABOR RELATIONS.

DEPARTMENT OF ACCOUNTING
PRACTICAL CASE 1

The company CALAIX, dedicated to the commercialization of goods, presents

on 11-10-X3 the following elements of your assets expressed in euros:

Money in the bank 500.00

Buildings owned by you 3,000.00
( ) Vehicles intended for transportation 1,200.00
Pending invoices to customers for whom we have
sold merchandise 1,400.00
Pending invoices to be paid to suppliers that have us
supplied the goods 3,000.00
Goods intended for sale 1,000.00
Machinery used in the production process 1,800.00
Office furniture (tables, filing cabinets,...) 900.00
Computers 200.00
Treasury bills 900.00
( ) Shares of the telephone company 500.00
Debt with the Treasury 600.00

IT IS REQUESTED:

1. Indicate, from the previous list of heritage elements, which ones are goods or
rights (A) and which represent obligations (P).
2.Give an appropriate name to each element.
3. Calculate the value of the asset, the liability in the strict sense, and the net equity.
What does the asset reflect?
What does the strict or enforceable liability reflect?
What does net equity reflect?
4. Express your opinion on how long each element will remain in the company.
indicating their fixed or current nature.
5. Represent the company's equity in balance form as of 11-10-X3.
Group it by asset masses.

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PRACTICAL CASE 2

The company TALLER YY provides the following information regarding the exercise
20X3:

1. Company activity: sale of vehicles and repair service of them

same.
Of the total employees, seven are permanent and eight have a temporary contract.
3. The company operates in a property it owns which is valued at
amounts to 120,000.00 euros.
4.Número de coches en stock para ser vendidos: 28. Importe 320.000,00 euros.
5. The workshop has prepared a total of five hundred quotes. The amount
The total budgeted amount is 208,152.13 euros.
The company has two vehicles of its own that it uses for the
development of its activity and for which it paid a total of 30,000.00 euros.
0855228
Contact has been established with an IT company that has undergone a
budget for 8 computers valued at 16,000.00 euros.
Various clients owe the company a total of 40,000.00 euros.
10. The company owes the supplier for the last batch of cars received.
amount of 75,000.00 euros.
11. A communication has been received from the telephone company announcing a
a 12% increase in their rates starting next month.
12. They are pending payment of the corresponding taxes to the Treasury for the first
semester of the year amounting to 5,750.00 euros.

IT IS REQUESTED:

Determine what information is relevant to be represented in a Balance of

Situation.

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 PRACTICAL CASE 3

The 1-1-X3 three friends decide to establish a company under the name
ORDENATA S.A., dedicated to the sale of computers, contributing for that purpose the
following elements:

Cash: 40,000.00 euros, with which a bank account is opened.

A commercial premises to develop the activity valued at 80,000.00 euros.

A vehicle intended for transport for an amount of 15,000.00 euros, of which remains
payments pending of 5,000.00 euros, which must be paid on 1-2-X5 by the
company.

One of the partners provides the contacts they have with various clients that can
be interested in the purchase of computers, so it will act as
representative.

The other two partners contribute their knowledge as graduates in computer science.

IT IS REQUESTED:

1. Determine the elements that make up the assets of this company.

distinguishing between assets, liabilities, and net equity.

2. Prepare the Balance Sheet as of the date of the company's incorporation.

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PRACTICAL CASE 4

The individual company EL MOBLE is established, with the purpose of

market office furniture At the moment of starting operations (1-1-
X3) The following information is available about the related elements:

1.Cash: 143,000.00 euros, of which 140,000.00 euros were deposited in

a bank account.

2. Furniture for business use for 22,000.00 euros and premises installations
valued at 15,000.00 euros. The amount for the installations is pending
payment of 7,000.00 euros.

3. Office furniture intended for sale, valued at 150,000.00 euros from the
that 100,000.00 euros have been paid, with the rest still pending payment.

4. Vehicle intended for the delivery of goods valued at 47,000.00 euros. No

no amount is owed.

5. Regarding the option of buying a commercial premises to set up the business for
200,000.00 euros or rent it by paying 1,500.00 euros monthly, it
he opted for the first option. An amount of is pending payment.
120,000.00 euros, formalized in a mortgage loan with bank M.

6. An employee has been hired whose monthly salary will amount to 1,200.00
euros.

For the development of this exercise, I used the following denominations,

when deemed necessary:

Box, pesetas. Transport elements

Banks Leases
Furniture Wages and salaries
Facilities Supplies
Merchandise Providers
Suppliers of fixed assets Capital
Commercial effects to collect Financial income
Debts with credit institutions Construction
Losses and Gains

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WORK TO BE DONE:
1. Indicate the value of the elements that make up the company's assets.
2. Indicate the value of the elements that make up the liabilities of the company. Which?
it has been the owner's contribution to this business.
3. Present a Balance Sheet grouped by asset categories.
4. Do you consider it more appropriate to present the entire investment in furniture?
together in a game or do you think it should be expressed separately the
furniture intended for use and the furniture intended to be sold? Why?
5. If there has been information that has not been used to present the financial situation.
of this company, justify it.

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PRACTICAL CASE 5

The company EL MOBLE (from the previous practice) during the month of January has
carried out the following operations:

On January 5th, 2,000.00 euros are paid for the debts incurred by the acquisitions of
furniture intended for sale, by bank check.

On January 10th, merchandise is sold on credit for an amount of 45,000.00

euros.

On January 23rd, a batch of furniture is purchased for its later

marketing valued at 10,000.00 euros, paying 1,250.00 euros by
bank check, and leaving the rest pending payment.

On January 25, 250.00 euros are paid in cash for water and
electricity.

On January 26, part of the furniture for personal use in the business is burned.
valued at 7,250.00 euros.

On January 28, the employee, who also performs cashier duties, after
Upon conducting a cash count, it is observed that 200.00 euros are missing.
remember that said amount must be assumed by the employee as a debt to
deduct from your salary.

On January 29, the company's vehicle has a breakdown.

On January 29, the roof of the premises is repaired for an amount of 3,250.00 euros.
payable by bank check drawn against the checking account.

On January 30th, the vehicle is repaired, with a payment of 500.00 euros made in cash.

On January 30, a payment of 125.00 euros is received for the assistance.

provided in the loading and unloading of a truck, amount that is deposited into the account
banking.

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The amount corresponding to the month of January of the first installment has been satisfied.
of the mortgage loan, amounting to the repayment of 5,000.00 euros and to
1,000.00 euros the interests. Likewise, and also by bank check, it
has satisfied the salary of the employee, to whom the charge has not yet been assigned
discrepancy detected in the cash register. (Note: According to the information from the supposed
previously, the salary amounted to 1,200.00 euros.

WORK TO BE DONE:

1. Formulate the previous facts indicating their nature.

2. Record the previous transactions in the Journal and in the Ledger.
3. Present a Trial Balance as of January 31.
4. Calculate the magnitude of the accounting result obtained in this first month of
activity, knowing that the value of the ending inventory amounts to 130,000.00 euros.
5. Prepare the Profit and Loss Statement.
6. Prepare the balance sheet as of January 31.

For the development of this exercise, use the following denominations when you
considered necessary:

Box, pesetas Transport elements

Banks c/c Leases
Furniture Salaries and wages
Facilities Supplies
Merchandise Suppliers
Suppliers of fixed assets Capital
Clients, commercial effects to collect Financial income
Income from various services Long-term debt interest
Extraordinary expenses Repairs and maintenance
Construction Debts with credit entities
Debtors Losses and Gains

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PRACTICAL CASE 6

The company ORDENATA S.A. (Practical Case 3) conducted during the first month,
after its constitution, the following operations:

On January 3, he hired a decorator to oversee the setup of the venue.

paying 800.00 euros and leaving 1,200.00 euros pending payment.

On January 3, he purchased a batch of 10 computers for a total amount of

10,000.00 euros paying half and deferring the payment of the rest for two months.
He also purchased a computer outright to install it in the office of the
company for which he paid 1,500.00 euros.

On January 5th, he sold his first computer for cash for an amount of 2,000.00.
euros. The money was deposited into the bank account.

On January 8, he paid 1,200.00 euros for municipal taxes.

On January 10, he purchased various pieces of furniture for the office for
amount of 7,000.00 euros.

On January 15, he prepared a sales estimate for a client for 5 computers.

amount of 9,000.00 euros.

On January 18, the previous client purchased the computers, paying 6,000.00
euros by means of a check and signing for the rest a promissory note at 30 days.

On January 28, he paid the outstanding debt to the decorator.

On January 30, he paid the secretary her salary of 1,000.00 euros.

On January 31, he paid the water bills (60.00 euros) and electricity (130.00 euros).
The telephone line has not yet been installed.

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IT IS REQUESTED:

1. Record the operations carried out in the Journal and in the Ledger (considering the
constitution of the company to carry out the opening entry
Calculate the accounting result obtained during this first month of activity,
knowing that the value of the ending inventory of goods amounts to 4,000.00
euros.
3. Prepare the Income Statement.
4. Prepare the Balance Sheet as of January 31.

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PRACTICAL CASE 7

Two friends decide to partner up to run a gym. Their contributions are:

PARTNER A: 5,000.00 euros in cash.
SOCIO B: Various gym equipment worth 3,500.00 euros, and a team
of music and various furniture valued at 1,500.00 euros.

During the first quarter, the operations detailed below have taken place.
continuation:

The company pays the printing press for the preparation of advertising brochures that it has
distributed, a total of 350.00 euros.
The fees charged to users amount to a total of 7,500.00 euros for this.
first quarter.
For advertising of sports brands, a total of 2,250.00 euros is charged.
4. The payroll of the monitor and the reception manager in the first three months has
assuming a disbursement of 5,200.00 euros.
For the same period, 475.00 euros were paid for electricity and water.

6. Regarding the place where the sports activity takes place, it has been addressed
some payments for rent amounting to 3,000.00 euros.

For the development of this exercise, I used the denominations of the accounts that
you already know, as well as those proposed below:

Treasury Facilities
Service provision Advertising and propaganda
Income from various services

WORK TO BE DONE:

1. Make the opening entry.

2. Record in the Journal and in the Ledger the corresponding transactions.
to this first quarter.
3. Present a Balance of Sums and Balances as of March 31 of the current fiscal year.
4. Calculate the accounting result.
5. Present the Profit and Loss Account and the Final Balance Sheet.

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PRACTICAL CASE 8

The company MERCA S.A. presents the following balance sheet at

beginning of 20X6, in euros:

ACTIVE PASSIVE
Furniture 25,000 Share Capital 176.400
Transport elements 100,000 debts with credit entities 50,000
Merchandise 32,000 Suppliers 25,000
Clients 29.400
Treasury 65,000
251,400 251.400

During the year 20X6, the following operations have been carried out.
continuation (the amounts corresponding to the whole year are indicated):

1. Purchases of goods for an invoiced amount of 150,000.00 euros, from the

80% has been acquired on credit and the rest in cash. The company has
obtained a 2% early payment discount on the amount paid in
cash.

2. The transportation costs of the goods, borne by MERCA, have amounted to

5,000.00 euros, paid in cash.

3. Merchandise sales for 280,000.00 euros, having granted credit to the

clients for 60% of this amount. The transport costs, to be paid by MERCA,
they have risen to 20,000.00 euros and have been paid in cash.

4. Returns of goods already delivered to customers have been accepted.

the value amounts to 20,000.00 euros. Half of this amount has been refunded
cash, and for the other half the customer's debt has been canceled.
corresponding import.

5. The company has obtained a discount for the volume of purchases made.
reminders) of 1,500.00 euros, which has been applied to reduce the debt with the
suppliers.

105,000.00 euros have been paid to suppliers.

7. Customer credits amounting to 150,000.00 euros have been collected.

8. The company has paid in cash for general management expenses for the period.
(personal, supplies, etc....), 80,000.00 euros.

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WORK TO BE DONE:

1. Account for all the previous operations using the procedure that follows.
the General Accounting Plan.
2. Obtain the result of the exercise taking into account that the value of the
Merchandise at the end of the period is 44,900.00 euros.
3. Prepare the Profit and Loss Account.
4. Prepare the Final Balance Sheet.

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PRACTICAL CASE 9

Mr. López, owner of the MERCOWOMAN supermarket, has decided

hire an expert to manage the business's accounting. To this end, he provided the
aspirant the following information:

The initial stock of merchandise is 400 units at 21 euros per unit.

200 units are purchased at 22 euros/unit on credit. The transportation costs

satisfied with the provider amounts to 400 euros, being half of this
import charged to the company.

15-1-X3: Due to being a lower quality merchandise than expected, it

they return 50 units from the previous purchase. The supplier takes responsibility for the
transport expenses.

300 units are sold for cash at 25 euros each, considering that the cost
The amount of merchandise sold amounts to 6,300 euros.

25-1-X3: Taking advantage of an offer made by the supplier, they have purchased
credit 1,000 units at 20 euros/unit additionally obtaining a discount
5% commission on the total of the transaction.

28-1-X3: A sale is made to a restaurant of 1,100 units at 30 euros per unit. (it is estimated
that the cost of this merchandise amounts to 21,700 euros). The payment is made
in cash, for which the supermarket decides to grant a discount
10% finance.

WORK TO BE DONE:

1. Account for the previous operations following the procedure of

splitting in purchases and sales. Determine the result, knowing that the value
The final stock is 2,850 euros.
2. Create the warehouse records corresponding to the operations of this exercise.
applying the FIFO, LIFO and PMP methods successively.
3. Determine and compare the cost of sales and the result of the commercial exploitation.
that are obtained by following each of these valuation procedures.
4. Deduce the procedure used in the exercise to value the inventory.
finals.

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5.Assuming that there had been a significant increase throughout the year in the
supplier prices: What valuation criterion will present a higher value?
of the final inventories?, Which method will show a higher profit?
Justify the answer.
6. Also in reference to the FIFO, LIFO, and PMP criteria, what will happen in the case
in the event of a depletion of goods, that is, if the final stocks
were they null?
7. In which accounting procedures is a physical count necessary?
existences?, Why?

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PRACTICAL CASE 10

The commercial company CICLO, S.A. presents the following balance sheet.
at the beginning of 20X6, in euros.

ACTIVE PASSIVE
Furniture 30,000 Share capital 80,000
Inventory 74,000 Reservations 10,000
Clients 42,000 Long-term debts in contractual 22,000
terms.
Treasury 29,500 debts payable conformed account.
8,000
Suppliers 55.500
175,500 175.500

During the year, the following operations have been carried out:

1. Credit purchases amounting to 250,000.00 euros. The total of the payments to

suppliers during the period have risen to 260,000.00 euros.

2. Credit sales of 400,000.00 euros. The total collections from clients have been
380,000.00 euros

€5,000.00 has been paid in interest on bank loans.

During this exercise, the repayment of short-term bank debt has been carried out.
deadline.

At the beginning of the year, the existing furniture was sold for 17,000.00 euros, which has
were charged in cash. New furniture has been purchased for 50,000.00 euros,
which will be paid within 3 years.

5.Management costs have been paid:

• 20,000.00 euros for personnel expenses.
• 28,000.00 euros for supplies.
• 2,000.00 euros for insurance policies.

Due to the general inventory of the company, carried out at the end of
economic exercise, the following information is made evident:

The value of the final inventory is 51,000.00 euros.

B. Among the bank loans that were classified as long-term, there are
12,000.00 euros which will have a short-term maturity.

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 C. Among the management expenses, 1,200.00 euros have been paid that correspond to the
premium of an insurance policy that covers an annual period that begins on
early December.
The furniture purchased depreciates by 10% annually.

WORK TO BE DONE:

1. Opening of the accounting.

2. Accounting for the operations of the period.
3. Presentation of the Trial Balance of Sums and Balances.
4. Accounting of the regularization operations.
5. Present the Income Statement and the Final Balance Sheet.

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PRACTICAL CASE 11

In the Balance Sheet as of January 1, 20X5 of the company AMORT S.A.

the following information related to fixed assets is presented, among others:

ESTABLISHMENT EXPENSES 16.800

CONSTRUCTIONS. BUILT SOLAR 15,000
CONSTRUCTIONS. BUILDINGS 35,000
MACHINERY 9,500
FURNITURE 8,400
AMORT. ACC. FIXED ASSETS ?
MATERIAL

A) Regarding tangible assets, it is known that:

All the elements were acquired on the date of the company's incorporation.
on 1-1-20X3, at the value shown in the balance sheet. They are amortized by the
linear method according to the following estimates about the residual value and the
years of useful life:

VALUE Lifespan
RESIDUAL
CONSTRUCTIONS. 5,000 15
BUILDINGS
MACHINERY 1.500 8
FURNITURE 0 7

B) Regarding the establishment expenses incurred as a result of the

company creation, it is known that:

8,000 euros correspond to the costs of public deed, taxes, and registration.
in the Mercantile Registry.

20,000 euros correspond to the services of a firm responsible for carrying out a
study on location and hiring personnel.

The company decided to activate the amount of these expenses, amortizing them in the
a period of 5 years.

REGARDING THE FIXED ASSETS, INDICATE:

1. What is the depreciable value of each item? What is the amount of the installment?
annual amortization? Reason each of these concepts. The loss of value.
what is reflected through technical amortization, is it reversible or irreversible, is it
ordinary or extraordinary?

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2. Account for the amortization of an annual economic exercise. What does it mean?
Do they have the accounts 'Depreciation ....' and 'Accumulated Depreciation ....'?

What method of depreciation has the company used, the direct or the indirect?
Indicate the advantages of its use.

4. Discuss the functions that technical depreciation has in the company.

5. Calculate the question that appears in the Initial Balance Sheet.
If at the end of the fiscal year the market price of an item is higher than its
acquisition price, could the company choose to value the items at their
market price? Justify the answer.
7. If at the end of the fiscal year, the market price is temporarily lower than the price
Regarding acquisition, could the company value the items at their market price?
How would it be reflected in accounting?

8. What would happen if the loss of value of an asset were permanent or

irreversible and different from technical amortization? How would I reflect it?
accountably?

REGARDING ESTABLISHMENT EXPENSES INDICATE:

1.Reason why the company may prefer to activate the expenses of

establishment instead of considering them as current expenses.
2. What differences and similarities do you find in the expenses incurred by the company?
consequence of its creation?
3. Record the journal entry for the amortization of establishment expenses.
corresponding to exercise X5.
4. What amortization method has the company used, direct or indirect?
Reason the differences you find with the method used for the elements.
of the fixed assets.
5. What does the balance of the account 'Establishment Expenses' represent that appears in the
balance?. Indicate the amount that will appear in the balance sheet as of 1-1-20X6.

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PRACTICAL CASE 12

The company TRAVEL S.A. presents as of November 30, 20X5 the following
balance of balances:

ACCOUNT NAME DEUDORES

Treasury 138,450.00
Merchandise 57,000.00
Social Capital 139,000.00
Suppliers 65,900.00
Machinery 127,500.00
Reservations 47,800.00
S.S. cargo of the company 27,000.00
Furniture 48,000.00
H.P. creditor C.F. 3,400.00
Leases and fees 21,600.00
Income from various services 16,800.00
Clients 60,000.00
Org. S.S. creditors 2,850.00
Am. Ac. Machinery 57,500.00
Am. Ac. Furniture 28,000.00
Prov. depreciation of goods 700.00
Purchasing of merchandise 466,800.00
Salaries and wages 96,600.00
Sales of goods 686,500.00
Dtos. s/purchases p.payment 4,500.00
Insurance premiums 2,800.00
Supplies 7,200.00
1,052,950.00 1,052,950.00

ADDITIONAL INFORMATION:

1. The account of Income from various services includes the consulting that with
the eventual character has been carried out by the company TRAVEL S.A. to another economic unit.
This advisory service comprises an annual period that runs from the 1st of
from May 20X5 to May 1, 20X6.

The purchase of merchandise for cash is pending accounting.

value of 25,500.00 euros. The suppliers granted a discount for prompt payment.
payment of 5% of the purchase amount. The transportation costs are the responsibility of the
The company TRAVEL raised to 400.00 euros and was paid in cash.

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The amount of the electricity bill for the month is pending accounting.
of December amounting to 400.00 euros. This receipt has not been paid yet.

4. During the month of December, clients are declared in suspension of payments for an amount of
of 6,000.00 euros, considering them as doubtful collection by the company. At the end of the
It is known that half of these clients have been charged, considering the rest.
definitively insolvent. The procedure followed by the company is that of
individualized follow-up.

5. The payrolls for the month of December are paid in cash.

whose breakdown is as follows:
Gross amount of salaries 30,000.00
Social security managed by workers 1,500.00
S. social in charge of the company 9,000.00
Withholding for income tax (IRPF) 3,000.00
(Only workers are paid)

6. Regarding the fixed assets, it is known that they are amortized at a rate of a
20% annual on the cost value.

7. The value of the ending inventory of merchandise based on a conducted inventory

the company's amount is 53,500.00 euros, while its market price is 53,000.00
euros.

IT IS REQUESTED:

Account for the pending operations and determine the result obtained.

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