Chapter 3

Case Study
3.1. Monograph accounting
Monograph accounting from April 2011 at S.C. Pasmatex S.A., with the accounting
documents used for there operations:
1) 06.04.2011

Recording in accounting the process of obtaining finished products (2.000 straps x 10

lei/piece and 300 printed articles x 5 lei/piece: 2.000 x 10 + 300 x 5 = 20.000 + 1.500 = 21.500 lei)
in value of 21.500 lei:
345

711

21.500

lei

2) 08.04.2011

Recording the selling of a part from the obtained finished products, in value of 5.000 lei,
VAT 24%, according to the Invoice No. 2537346/13.04.2011:
4111

%
701
4427

6.200
5.000
1.200

lei

3) 10.04.2011

On the same day, recording the withdrawn from the evidence of the sold finished goods:
711

345

5.000

lei

4) 13.04.2011

Recording the payment from the customer in cash (according to Receipt no.
93752/17.04.2011):
5311

4111

6.200

lei

5) 16.04.2011
Recording the buying of a new knitting equipment in value of 7.000 lei, VAT 24% , used in
the Knitting Department, from the supplier Jacob Mueller, the well known Swiss Company,
using the Invoice No. 132424/06.04.2011:
%
303
4426

401

8.680
7.000
1.680

lei

21

6) 17.04.2011
Recording the payment to the supplier Jacob Mueller according to the Invoice No.
132424/06.04.2011, using the bank account; the value of the debt being 8.680 lei:
401

5121

8.680

lei

7) 18.04.2011
Recording the wages for the companys employees, in value of 4.970 lei (according to the
Payment Statement):
641

421

4.970

lei

8) 18.04.2011

On the same day, recording all the contributions owed by the company and its employees
to the Social Security System (according to the Payment Statement):

Payd by the company:

Social Insurance (20,8% of the wage: 20,8% x 4.970 = 1.034 lei)

6451
=
4311
1034
lei
Health (5,2% of the wage: 5,2% x 4.970 = 258 lei)

6453
=
4313
258
lei
Unemployment (0,5% of the wage: 0,5% x 4.970 = 25 lei)
6452

4371

25

lei

Paid by the employee:

Social Insurance (10,5% of the wage: 10,5% x 4.970 = 522 lei)

421
=
4312
522
lei
Health (5,5% of the wage: 5,5% x 4.970 = 273 lei)

421
=
4314
273
lei
Unemployment (0,5% of the wage: 0,5% x 4.970 = 25 lei)
421

4372

25

lei

Payroll (Salary) Tax (16% of the taxable salary: 16% x 2.850 = 456 lei)
421

444

456

lei

9) 22.04.2011
Recording the payment to the Social Security System (all the contributions owed by the
company and its employees) using the bank account (Bank Statement No. 836523/22.04.2011):
%
4311

5121

2.593
1034

lei

22

4313
4371
4312
4314
4372
444

258
25
522
273
25
456

10) 28.04.2011
Recording the paying of wages to the companys employees, in value of

3.694 lei

(according to the Payment Statement):

421

5121

3.694

lei

11)30.04.2011

Regulating the Value Added Tax (VAT): 4427 < 4426 (1.200 lei < 1.680 lei) 4424 (480
lei):
%
4424
4427

4426

1.680
480
1.200

lei

12)30.04.2011

Closing the revenues and expenses accounts, using the account 121 Profit / Loss:
121

%
711
701

%
641
6451
6453
6452
121

6.287
4.970
1.034
258
25
21.500
16.500
5.000

lei

lei

3.2. Taxes and fees

Calculations and recordings in accounting of the taxes and fees paid by the company during
the month of April 2011 (direct and indirect taxes)

a.

Payment Statement for April 2011

23

Name
Grigore Mihai
Petre Andreea
Iftimie Radu
Irimia Alina
Total

Gross
Salary
1.400
1.290
1.300
980
4.970

CAS
147
135
137
103
522

CASS
77
71
72
54
273
421
444

CFS
7
6
7
5
25
=
=

Net
Salary
1169
1077
1086
818
4.150

444
5121

Deductions
250
350
450
250

456
456

Taxable
Salary
919
727
636
568

Payroll
Tax
147
116
102
91
456

lei
lei

b. Value Added Tax regulation:

Collected Value Added Tax (4427) < Deductible Value Added Tax (4426) Receivable
Value Added Tax (4424):
%
4424
4427

4426

1.680
480
1.200

lei

c. Profit tax:
Profit = Total Revenues Total Expenses = 21.500 6.287 = 15.213 lei
Profit Tax = 16% * Profit = 16% * 15.213 lei = 2434 lei
691
441

=
=

441
5121

2434
2434

lei
lei

24

Salary
received
1022
961
984
727
3.694

3.3. Trial balance

Account
Symbol
1012
106
121
301
303
345
401
4111
421
4311
4312
4313
4314
4371
4372
4424
4426
4427
444
5121
5311
641

Account
Capital (subsribed and paid)
Reserves
Profit (loss) for the period
Raw materials
Inventory items
Finished goods
Suppliers
Customers
Salaries payable
Company CAS
Employees CAS
Company CASS
Employees CASS
Company CFS
Employees CFS
Receivable VAT
Deductible VAT
Collected VAT
Payroll tax
Cash at bank (in lei)
Petty cash (cash in hand)
Expenses with salaries

Initial Balance
Debit
Credit
0
20000
0
4000
0
0
2000
0
800
0
1000
0
0
7000
200
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
20000
0
7000
0
0
0

Monthly Movements
Debit
Credit
0
0
0
0
6287
21500
0
0
7000
0
21500
5000
8680
8680
6200
6200
4970
4970
1034
1034
522
522
258
258
273
273
25
25
25
25
480
0
1680
1680
1200
1200
456
456
0
14967
6200
0
4970
4970

Total Sums
Debit
Credit
0
20000
0
4000
6287
21500
2000
0
7800
0
22500
5000
8680
15680
6400
6200
4970
4970
1034
1034
522
522
258
258
273
273
25
25
25
25
480
0
1680
1680
1200
1200
456
456
20000
14967
13200
0
4970
4970

Final Balance
Debit
Credit
0
20000
0
4000
0
15213
2000
0
7800
0
17500
0
0
7000
200
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
480
0
0
0
0
0
0
0
5033
0
13200
0
0
0

25

Account
Symbol
Account
6451 Expenses with company CAS
6452 Expenses with company' CFS
6453 Expenses with company CASS
701 Revenues from sold finished goods
711 Stocks variation
TOTAL

Initial Balance
Debit
Credit
0
0
0
0
0
0
0
0
0
0
31000
31000

Monthly Movements
Debit
Credit
1034
1034
25
25
258
258
5000
5000
21500
21500
99577
99577

Total Sums
Debit
Credit
1034
1034
25
25
258
258
5000
5000
21500
21500
130577
130577

Final Balance
Debit
Credit
0
0
0
0
0
0
0
0
0
0
46213
46213

3.4. Abridged balance sheet

Assets
Raw materials
Inventory items
Finished goods
Customers
Receivable VAT
Cash at bank

Amounts
2000
7800
17500
200
480
5033

Liabilities & Owner's Equity

Subscribed and paid capital
Reserves
Profit / loss
Suppliers

Cash in hand

13200

TOTAL

46213 TOTAL

Amounts
20000
4000
15213
7000

46213

26