Management accounting adjustments - Management / working papers tutorial

 

Postings which apply only to this period and which are to be reversed next period must be made in the Management option.

Select Management to display a panel, select the first period to 30/06/07.

A further panel asks you to select the entry parameters

 

Stock

The first adjustments to be made are regarding closing stock so document type and double entry account are not required. Leave the panel blank and select OK.

Make the following postings:

 

Nominal Description

A/ c No

Dr £

Cr £

Closing stock P&L

74

 

32,000

Stock BS

569

32,000

 

 

Creditors and accruals

Now you need to start a new batch for the creditors at the year end. Select Input control, to display the entry parameters screen. Complete the panel as follows.

 

Document type

17

Management creditors

Double entry account

737

Trade creditors

 

Note that the management accounts document type numbers may be different depending on the number of new document types you have set up since you installed Accounts Production. However, the descriptions and the double entry accounts should be as shown in this tutorial.

 

Make the following postings for invoices relating to the current period but not yet paid:

 

Nominal Description

A/c No

Dr £

Purchases

71

28,000

Accountancy

285

750

 

Debtors and prepayments

We need to make an adjustment for sales invoices raised before the period end for which cash has not been received.

Select Input control and complete the panel as follows:

 

Document type

15

Management debtors

Double entry account

586

Trade debtors

 

 

Make the sales adjustment:

 

Nominal Description

A/c No

Cr £

Sales

1

60,000

 

Finally select Input control and complete the panel as follows:

 

Document type

16

Management prepayments

Double entry account

614

Prepayments

 

Make the following posting for prepaid rent:

 

Nominal Description

A/c No

Cr £

Rent

227

1,000

 

Once all the postings have been made you can leave the Posting option and prepare the required reports (see - Reporting).