Assets - GL reconciliation

Transcription

1 Another Company Ltd Assets - GL reconciliation Assets values are calculated based on: Control group Cost Accumulated depreciation Closing WDV Account GL balance Asset balance Variance Account GL balance Asset balance Variance GL balance Asset balance Variance Depreciation expense Account Asset balance Ledger Variance ed account 1

2 Another Company Ltd Carried Forward Issues No. Issue Action ed account 2

3 Another Company Ltd Foreign Currency Asset or Liability valuation Foreign currency used: Exchange rate at period end date Details Foreign currency amount Local currency amount Is amount a liability (balance is a credit)? Balance to reconcile to GL Balance as per Variance ed account 3

4 Another Company Ltd General ed account 4

5 Another Company Ltd Issues for Client Attention No. Issue Action ed account 5

6 Another Company Ltd Issues for Partner Attention No. Issue Action ed account 6

7 Another Company Ltd Job Review Checklist Quality matters Yes No N/A Comments Do all balance sheet items have supporting WP (incl balances with no movement)? Are you able to explain: Variations in gross profit ratios? Material variations in profit and loss items? Has imputation credit account been reconciled to tax paid and to retained earnings? Do attribution rules apply? Is a FBT adjustment required (e.g. for loans to shareholders)? Have correct adjustments been made for private use of business assets? Have you correctly analysed non-deductible items (e.g. entertainment, penalties)? Have queries been neatly and adequately recorded and cleared? Are all accounting policies correct? Is compilation report correct? Does it refer to all statements in the financial report? Is client eligible for Working for families tax credits? Updating documents Is there an engagement letter on file? If not, prepare one or advise how terms have been recorded. If yes, what is date of last update? Does engagement letter need updating? Are statutory records up to date and correct, and agree with our database? Companies office? Charities register? Share register? Other registers? Are minutes/resolutions up to date? Are any additional forms or documents required? Dividend withholding tax? LTC election? Tax purchase (tax pooling)? Other? Feedback to client Have adjusting journal entries been forwarded to client? Have GST adjustments been documented and advised to client? Are there areas with client accounting procedures that can be improved? Any tax planning suggestions/recommendations? Any other action for client? Partner to complete: Yes No N/A Comments 7

8 Another Company Ltd Job Review Checklist Other services client could benefit from? (eg. Cashflow, budgeting, business plan) Are the client s insurance/licencing requirements adequate? Property Consequential loss/business interruption insurance Indemnity insurance Life insurance Income protection Should the client s financing arrangements be restructured? Is investment advice required? Retirement/succession planning does client have a will? Client visit? Other issues ed account 8 Page 2

9 Another Company Ltd Ratio Analysis Ratio type Value Calculation Liquidity Current ratio times Current assets / current liabilities Quick ratio times (Current assets - inventory) / current liabilities Efficiency Average collection period days 365 X average trade debtors / sales Inventory turnover times COGS / average inventory Total asset turnover times Sales / average assets Leverage Debt ratio times Total liabilities / total assets Debt to equity ratio times Total liabilities / equity Times interest earned times EBIT / interest expense Profitability Gross profit margin % (Sales - COGS) / sales Net profit margin % (Sales - COGS - operating expenses ) / sales Return on investment % (Sales - COGS - operating expenses ) / average assets Return on equity % (Sales - COGS - operating expenses ) / average equity Assets / equity Times Total assets / equity Account data This year balances Last year balances Fields in blue are derived from the ledger. These values can be manually updated. Profit and loss information: Sales Total sales COGS Total COGS Operating expenses Total operating expenses EBIT (Calculation: EBIT = Sales - COGS - operating expenses) Interest expense 9

10 Another Company Ltd Ratio Analysis Total interest expense Assets information: Trade debtors Total trade debtors Inventory Total inventory Current assets Total current assets Total assets Total assets Liabilities information: Current liabilities Total current liabilities Total liabilities Equity information: Total liabilities Equity (calculation: equity = total assets - total liabilities) Page 2 10

11 Another Company Ltd Ratio Analysis ed account Page 3 11

12 Another Company Ltd Review Points No. Account Issue Action Cleared ed account 12

13 Another Company Ltd Tax integration (IR10) Fields in blue are derived from the ledger. These values can be manually updated. Profit and loss statement Gross income from Sales and/or services 2 0 Cost of goods sold Opening stock (include work in progress) 3 0 Purchases 4 0 Closing stock (include work in progress) 5 0 Gross profit 6 0 Other gross income Interest received 7 0 Dividends received 8 0 Rental, lease and license income 9 0 Other income 10 0 Total income 11 0 Expenses Bad debts 12 0 Accounting depreciation and amortisation 13 0 Insurance (exclude ACC levies) 14 0 Interest expense 15 0 Professional and consulting fees 16 0 Rates 17 0 Rental, lease and license payments 18 0 Repairs and maintenance 19 0 Research and development 20 0 Associated persons' remuneration 21 0 Salaries and wages paid to employees 22 0 Contractor and sub-contractor payments 23 0 Other expenses 24 0 Total expenses 25 0 Exceptional items 26 0 Net profit/loss before tax 27 0 Tax adjustments 28 0 Current year taxable profit/loss

14 Another Company Ltd Tax integration (IR10) Balance sheet Current assets (as at balance date) Accounts receivable (debtors) 30 0 Cash and deposits 31 0 Other current assets 32 0 Fixed assets (closing accounting value) Vehicles 33 0 Plant and machinery 34 0 Furniture and fittings 35 0 Land 36 0 Buildings 37 0 Other fixed assets 38 0 Other non-current assets (as at balance date) Intangibles 39 0 Shares/ownership interests 40 0 Term deposits 41 0 Other non-current assets 42 0 Total assets 43 0 Current liabilities (as at balance date) Provisions 44 0 Accounts payable (creditors) 45 0 Current loans 46 0 Other current liabilities 47 0 Total current liabilities 48 0 Non-current liabilities (as at balance date) 49 0 Total liabilities 50 0 Owners' equity Equity 0 Net profit(loss) before tax (from keypoint 27) 0 Total equity 51 0 Variance Total assets - Total liabilities - Owners' equity 0 Other information Tax depreciation 52 0 Untaxed realised gains/receipts 53 0 Additions to fixed assets 54 0 Disposals of fixed assets 55 0 Dividends paid 56 0 Drawings 57 0 Current account year-end balances 58 0 Tax-deductible loss on disposal of fixed assets 59 0 ed account 14 Page 2

15 Another Company Ltd Livestock calculation - closing stock As per stock take: General journals: Opening stock Ledger Ledger balance Quantity Valuation Balance Quantity Balance quantity method 130/ / / Purchases Ledger quantity Ledger balance Quantity Average cost Balance Quantity Balance

16 Another Company Ltd Livestock calculation - closing stock Sales Ledger Ledger balance Quantity Average cost Balance Quantity Balance quantity 160/ Natural increase Ledger Quantity Quantity quantity Killed for rations Ledger Quantity Quantity quantity Deaths Ledger Quantity Quantity quantity Page 2

17 Another Company Ltd Livestock calculation - closing stock Closing stock Ledger Ledger balance Quantity Valuation Balance Quantity Balance quantity method 160/ / / Stock on hand Balance Closing stock reconciliation: Opening stock 0 Purchases 0 Sales 0 Natural increase 0 Killed for rations 0 Deaths 0 Closing stock 0 Variance 0 Page 3 17

18 Another Company Ltd Livestock calculation - closing stock ed account Page 4 18

19 Another Company Ltd Generic Income Template (multiple GL codes) Date Gross amount GST % GST Net amount Drinks Food hireage Amount to reconcile to ledger (credit balance) 200 Sales -14, Variance -14, , ed account 19

20 Another Company Ltd Generic Expense Template Date Gross amount GST % GST Net amount Rego Service Oil Balance as per 240 Motor Vehicle expenses Variance ed account 20

21 Another Company Ltd Work in Progress Details Ref Valuation method Amount Balance as per 261 Closing Work In Progress Variance Checklist Does work in progress include overhead amount? ed account 21

22 Practice Name: ABC Consulting Client Name: Another Company Ltd Period End: 31/03/2017 Prepared By: McCormack,Anna Prepared Date: 11/04/2018 Approved By: Approved Date: Dividends Received Date Gross Dividend Imputation Credits Net Dividend Withholding Tax Net Amount Received Total Credit Balance Total as per 272 Dividends Received Variance Document s 22

23 Another Company Ltd Dividends Received - Gross Date Gross dividend Imputation credits Net dividend Withholding tax Net amount received Dividend from XXX Dividend from YYY Total gross dividends (credit is -ve) Total as per 272 Dividends Received Variance ed account 23

24 Another Company Ltd Dividends Received - Net Date Gross dividend Imputation credits Net dividend Withholding tax Net amount received dividend from XXX Dividend from YYY Total to reconcile (credit blance) Total as per 272 Dividends Received Variance ed account 24

25 Another Company Ltd Generic Income Template Date Gross amount GST % GST Net amount Amount to reconcile to ledger (credit balance) Balance as per 273 Grants Received Variance ed account 25

26 Another Company Ltd Interest Received Name of payer Gross interest Withholding tax Net interest Resident withholding tax (%) Received from ASB Total gross interest (credit balance) Balance as per 274 Interest Received Variance ed account 26

27 Another Company Ltd Rent Received reconciliation GST rate: % Details No payments Rate Gross amount GST? GST Net amount 0 Total rent received (credit is negative) Balance as per 277 Rent Received Variance Document s Account s ed account 27

28 Another Company Ltd Schedular Income with GST reconciliation GST rate: % Details Gross amount (ex GST) W/tax rate Withholding tax GST Payment received Total gross schedular income (credit is negative) Balance as per 279 Sundry Income Variance ed account 28

29 Another Company Ltd Donations Name Deductible Non-deductible Donation given to XXXX Total Balance as per 326 Donations Variance ed account 29

30 Another Company Ltd Entertainment Gross paid Deductible % Non-deductible Deductible 5 Less : GST 15.00% Net deductible entertainment Balance as per 327 Entertainment Non-deductible portion Calculated above Variance: Immaterial rounding Adjusted variance ed account Variance 30

31 Another Company Ltd Entertainment - 50% GST claimed This workpaper is for when at the original coding of the transaction only 50% of the GST was claimed on entertainment. Gross paid Deductible % Non-deductible Deductible Less : GST 15.00% Net deductible entertainment Balance as per 327 Entertainment Non-deductible portion Calculated above Variance: Immaterial rounding Adjusted variance ed account Variance 31

32 Another Company Ltd Entertainment - Adjustment required This workpaper is for when at the original coding of the transaction 100% of the GST was claimed on entertainment and an adjustment is required GST Rate: Gross paid GST rate Net paid Deductible % Net deductible Balance as per 327 Entertainment Variance Non-deductible portion Non-deductible net per above GST adjustment for box 9 Total non-deductible entertainment Check balance coded to non-deductible: Variance: Immaterial rounding Adjusted variance Document s ed account 32

33 Another Company Ltd Generic Template Date Amount Balance as per 335 General Expenses Variance ed account 33

34 Another Company Ltd Interest Paid Amount paid Private % Amount claimed Plus accrual Less reversal Total interest expense General ledger accounts Amount Variance ed account 34

35 Another Company Ltd FBT Contribution on Motor Vehicles of vehicle Cost (ex GST) GST % Cost (incl GST) Fringe benefit value % Days not available for private use Net amount Contribution by employee Contribution required Mazda , , Nissan , Amount to reconcile to ledger (credit balance) 3, Balance as per 410 Motor Vehicle Expenses 7, Variance -3, Is the client GST registered Total for shareholder to contribute: Contribution required per above: -3, GST on contribution Total shareholder contribution: -4, Check balance coded to current account: 501/05 Cash Deposits Total: Variance: -4, ADD A COMMENT ed account 35

36 Another Company Ltd Home office percentage calculation Area of office 1 Total area of house 18 Business use percentage 5.56 % Total home office expenses claimed $ Home Office Expenses Expenses - business use %: Claimable Gross Gross claimable GST claimable Net amount % amount amount GST rate Amount claimed Insurance Rates Mortgage interest 5.56 Utility Repairs and maintenance Rent 5.56 Other Items Expenses - specific rate %: Claimable Gross Gross claimable GST claimable Net amount % amount amount GST rate Amount claimed Depreciation Total home office claim $ Balance from account 425 Office Expenses 5, , leave notes that are printed with workpapers ed account 36

37 Another Company Ltd Generic Expense Template (multiple GL codes) Date Gross amount GST % GST Net amount Rent Paid Rent - Carparking 443 Rent - Conference Facility 444 Rent - Office 445 Rent - Plant & Equipment Variance ed account 37

38 Another Company Ltd Wages Reconciliation Gross wages per IRD employer returns Gross earnings PAYE Kiwisaver employer ESCT April May June July August September October November December January February March Total wages per IRD Total wages per payroll Variance Gross wages Employers' kiwisaver contributions ESCT Total wages to reconcile with general ledger General ledger reconcilation Gross wages per payroll records Non-taxable amounts paid, and recorded as wages in general ledger Holiday pay accrual at end of year Holiday pay accrual at beginning of year (enter as a negative number) Other adjustments: Reconcile to: Account Amount 475 Wages & Salaries Total wages Total wages per general ledger accounts Variance 38

39 Another Company Ltd ed account Wages Reconciliation 39 Page 2

40 Another Company Ltd Provision for Income Tax Opening balance per last year's workpaper (negative number = tax to pay, positive number = refund due) Add: Prior year income tax refunds received Less: Prior year income tax paid Balance of prior year income tax Add: Current year income tax expense Other Net tax payable Less: Overseas tax paid claimable Imputation credits received Note: The amount of Overseas Tax paid and / or Imputation Credits received that is claimable will be limited to a maximum of the amount of net tax payable. Interest withholding tax paid (linked from Interest received) Dividend withholding tax paid (linked from Dividends received - gross) Provisional tax instalment 1 - Provisional tax instalment 2 - Provisional tax instalment 3 - Other Closing balance Closing balance per 480/01 Tax Provision Variance (negative number = tax to pay, positive number = refund due) Closing balance represented by: Tax year Amount outstanding Total Variance Checklist Agreed to trial balance Agreed to income tax return 40

41 Another Company Ltd Provision for Income Tax ed account 41 Page 2

42 Another Company Ltd Prepared by McCormack,Anna Prepared date 02/07/2018 Carried Forward Losses Carry forward revenue account losses Income year Opening balance Recouped Current year loss Closing balance Carry forward capital account losses Income year Opening balance Recouped Current year loss Closing balance ed account 42

43 Another Company Ltd Current Account - interest on overdrawn Tick to compound interest monthly Name of person: Date Details Drawings Other Contributions Balance Interest Credit/(debit) Debit Rate % * Credit Rate % * 01-Apr Opening bal Salary Other opening adjustments Interest 30-Apr 31-May 30-Jun 31-Jul 31-Aug 30-Sep 31-Oct 30-Nov 31-Dec 31-Jan 29-Feb 31-Mar * Check that the interest rates are those prescribed by Inland Revenue for the current year. Tick YES if workpaper linked to equity code, cross NO if linked to revenue code Amount to reconcile to ledger Interest per linked account (credit)/debit 501 John Smith 36, Variance -36, Loan summary Opening (debit)/credit Salary Other opening adjustments Drawings Other Contributions Interest Closing Loan account (credit)/debit: Variance 43

44 Another Company Ltd Current Account - interest on overdrawn Interest for linking ed account 44 Page 2

45 Another Company Ltd Name of account holder: (eg. Partner/beneficiary name) Current Account Rec - non-company Opening balance Add: Share of income/loss Funds introduced Other: Less: Regular drawings Other drawings Income tax paid Other: Closing balance Ledger balance should be (Debit +ve, Credit -ve) Balance as per 501 John Smith 36, Variance -36, ed account 45

46 Another Company Ltd Name of shareholder: Current Account Rec - shareholders Opening balance Add: Shareholder salary Dividend credited Interest credited Funds introduced Other: Less: Regular drawings Other drawings Adjustment for personal use of company assets Interest charged (linked from Current account - interest on overdrawn) Income tax paid FBT contributions (linked from FBT contribution on motor vehicles) Other: Closing balance Ledger balance should be (debit +ve, credit -ve) Balance as per 501 John Smith 36, Variance -36, ed account 46

47 Another Company Ltd Current Account Rec - shareholders (multiple GL codes) Name of shareholder: Opening balance Add: Shareholder salary Dividend credited Interest credited Funds introduced Other: Less: Regular drawings Other drawings Adjustment for personal use of company assets Interest charged (linked from Current account - interest on overdrawn) Income tax paid FBT contribution (linked from FBT contribution on motor vehicles) Other: Closing balance Ledger balance should be (debit +ve, credit -ve) Variance ed account 47

48 Another Company Ltd Intercompany Loans Intercompany loan balances Entity name Entity A Entity B Entity C Entity D Entity E Entity F Entity G Entity H Entity I Entity J Total Entity A Entity B Entity C Entity D Entity E Entity F Entity G Entity H Entity I Entity J Total Variance for entity Variance for loans Entity A Entity B Entity C Entity D Entity E Entity F Entity G Entity H Entity I Entity J ed account 48

49 Another Company Ltd Bank account 600 Bank - Cheque Account Bank Reconciliation Closing balance 145, Bank reconciliation statement Balance per bank statement Add: Undeposited funds Date Amount Less: Outstanding cheques Date Cheque No. Amount Closing balance Variance -145, Checklist Verified closing bank balance on bank statement. Copy of balance date bank statement on file. Reviewed outstanding deposits for reasonableness. Reviewed outstanding cheques for stale cheques. Balance agreed to trial balance. ed account 49

50 Another Company Ltd Bank account 600 Bank - Cheque Account Bank Reconciliation (simple) Balance per ledger 145, Bank reconciliation statement Balance per attached bank reconciliation Variance -145, Checklist Verified closing bank balance on bank statement. Copy of balance date bank statement on file. Reviewed outstanding deposits for reasonableness. Reviewed outstanding cheques for stale cheques. Balance agreed to trial balance. ed account 50

51 Another Company Ltd Bank Reconciliation Foreign Currency Bank account 600 Bank - Cheque Account Balance per ledger NZD 145, Bank reconciliation statement Foreign currency Balance per attached bank statement/(reconciliation) in foreign currency Add: Undeposited funds Date Amount Less: Outstanding cheques Date Cheque No. Amount Closing balance Exchange rate as at year end - expressed as cents/nzd NZD closing balance per bank statement Variance -145, Checklist Verified closing bank balance on bank statement. Copy of balance date bank statement on file. Reviewed outstanding deposits for reasonableness. Reviewed outstanding cheques for stale cheques. Balance agreed to trial balance. ed account 51

52 Another Company Ltd Investments - interest bearing Principal sum Interest rate % Maturity date. Opening balance Interest received Additional investment Funds withdrawn RWT on interest Closing balance Balance as per 601 Bank - Savings account Variance ed account 52

53 Another Company Ltd Term Deposit Term deposit details details go here Reconciliation Closing balance per bank Closing balance per ledger 601 Bank - Savings account Variance Calculation of interest accrual Interest rate for next 12 months 6.05 % Last date interest was paid Balance date 31/03/2017 Number of days to accrue notes to be included on the WorkSheet go here ed account Interest accrued to balance date 53

54 Another Company Ltd GST Reconciliation GST returns outstanding at balance date: Details Period ended GST collected GST paid Net GST due Feb-March GST collected / paid since last return to balance date: Total GST outstanding at balance date Timing adjustment (use for payment basis only): GST on accounts receivable (linked from Trade debtors listing (simple)) GST on accounts receivable (if other workpaper used) GST on cash on hand GST on accounts payable (linked from Trade creditors) GST on unpresented cheques (if not included in last return) Other timing adjustments Total timing adjustments Net GST due before other adjustments Other adjustments: GST on expenses (linked from Home office expenses - business use %) GST on expenses (linked from Home office expenses - specific rate %) GST on expenses (linked from Entertainment - adjustment required) Total other adjustments Net GST due (negative amount = GST payable) Balance as per 630 GST -20, Other accounts (if not in group) Amount Total other accounts Total balance per ledger -20, Variance 20, ed account 54

55 Another Company Ltd GST Reconciliation 55 Page 2

56 Another Company Ltd Income Tax Calculation Tax rate of 3 % (last year 3 %) This year Last year Profit/(loss) per accounts Add: Non-deductible items Less: Allowable deductions and non-assessable income Taxable profit/loss Tax payable Checklist Agreed to trial balance Agreed to income tax return Reviewed accounts for all non deductible items Reviewed accounts for all allowable deductions & non assessable income Completed "Provision for Income Tax" workpaper ed account 56

57 Another Company Ltd Prepared by McCormack,Anna Prepared date 02/07/2018 Income Tax Expense Income tax rate % Income % Net profit before taxation Deferred tax at beginning of year Deferred tax at end of year Subtotal Add: Non-deductibles Less: Non-assessible income Subtotal Less: Losses brought forward Taxable income Tax on taxable income Plus/minus deferred tax Tax expense per profit and loss Immaterial rounding variance Tax expense per profit and loss - rounded Tax expense per general ledger -25, Variance: 25, Journal to be created Dr/(cr) amount Tax expense breakdown Tax expense Tax effect of permanent differences Tax effect of prior year losses Tax effect of deferred tax Income tax liability Deferred tax liability Provision for tax "Off balance sheet" accounts for tax note Deferred income/expense opening balance Deferred income/expense closing balance Tax losses brought forward Off balance sheet/information account contra 57

58 Another Company Ltd Prepared by McCormack,Anna Prepared date 02/07/2018 ed account Income Tax Expense 58 Page 2

59 Another Company Ltd Other debtors Other Debtors Detail Closing balance Balance per ledger account: 116, Variance -116, Checklist Agreed other debtors to trial balance Compare other debtors to prior year and review for omissions ed Account 59

60 Another Company Ltd Trade Debtors Trade debtors Less provision for doubtful debts Trade debtors per balance sheet Balance as per 635 Accounts Receivable 116, Trade debtors reconciliation Balance per debtors ledger Bad debts written off Credit balances transferred to creditors Credit notes issued after year end Other adjustments Trade debtors per balance sheet Variance -116, Summary of bad debts Name of debtor Amount Checklist Is a debtors ledger maintained? If no debtors ledger maintained, document how debtors calculated (eg. invoices, post balance date bankings) Has a debtors reconciliation been prepared? Have bad debts and credits given subsequent to year end been considered? Has client maintained adequate records to substantiate bad debts written off? Is the provision for doubtful debts adequate? ed account 60

61 Another Company Ltd Trade Debtors Listing (simple) Invoice date Date paid GST % GST Net Gross Balance as per 635 Accounts Receivable 116, Variance -116, Checklist Is a debtors ledger maintainted? If no debtors ledger maintained, document how debtors calculated (eg. invoices, post balance date bankings) Have bad debts and credits given subsequent to year end been considered? Has client maintained adequate records to substantiate bad debts written off? ed account 61

62 Another Company Ltd Prepared by McCormack,Anna Prepared date 02/07/2018 Trade Debtors Reconciliation Balance sheet reconciliation (only required when there is a provision for doubtful debts) Trade debtors Account: 635 Accounts 116, Receivable Less provision for doubtful debts Account: Trade debtors per balance sheet 116, Balance as per 635 Accounts Receivable 116, Trade debtors reconciliation Balance per debtors ledger 110,00 Bad debts written off -5,60 Credit balances transferred to creditors Credit notes issued after year end Other adjustments Adjustments Trade debtors per balance sheet 105, Variance -11,20 Bad debts Account: 300 Bad Debts Summary of bad debts Name of debtor Amount Debtor name 60 Debtor 2 name 5,00 5,60 Variance 5,60 Summary of doubtful debts Name of debtor Amount Variance Checklist Is a debtors ledger maintained? If no debtors ledger maintained, document how debtors calculated (eg. invoices, post balance date bankings) Has a debtors reconciliation been prepared? Have bad debts and credits given subsequent to year end been considered? Has client maintained adequate records to substantiate bad debts written off? Is the provision for doubtful debts adequate? 62

63 Another Company Ltd Prepared by McCormack,Anna Prepared date 02/07/2018 Trade Debtors Reconciliation ed account 63 Page 2

64 Another Company Ltd Prepayments Prepayment details : Prepayment amount Beginning date of prepayment End date of prepayment Days in prepayment 1 Amortisation start date Period end date Days this period 1 Expense this period Prepayment reconciliation per 640 Payments in Advance Opening balance Add: Payments this period Less: Expense this period Total Closing balance Variance ed account 64

65 Another Company Ltd Prepayments with rollover Period start date: Period end date: 01/04/ /03/2017 Cost Start date End date Prepayment period (days) Current year (days) Opening balance Expensed this year Closing balance..insurnace 10 01/11/ /10/ ed account Total closing balance 1 Account value: 640 Payments in Advance Variance: Document 65

66 Another Company Ltd Stock on Hand Details Ref Valuation method Amount Balance as per 720 Stock on Hand - Raw Materials -2, Variance 2, Checklist Consider whether any write-down is justified (eg. obsolete stock) Consider whether valuation method can be changed ed account 66

67 Another Company Ltd Fixed Assets Fields in blue are derived from the ledger. These values can be manually updated. Opening book value 34,50 Add: Purchases (see schedule below) Depreciation recovered Capital gain on disposal of asset Less: Disposals (see schedule below) Depreciation Loss on disposal of assets Closing book value 34,50 Closing book value as per: 734 Motor Vehicles 33, , Immaterial variance Variance 1, Purchases Date Asset Cost (excl) Disposals Date Asset Cost (excl) ed account 67

68 Another Company Ltd Generic Asset Template Date Amount Balance as per 734 Motor Vehicles 33, Variance -33, ed account 68

69 Another Company Ltd Mixed Use Asset Calculation - Days Income earning days 0 Counted days (private) 0 Income earning days + counted days 0? Deductible expenses? Non-deductible - tax adjustment? Expenses to portion and non-deductible codes to reclassify them to: Check balance coded to non-deductible tax adjustment codes: Total: Variance:? ed account 69

70 Another Company Ltd Accounting for Investments Cost summary Opening balance Add: Purchases Cost adjustments Less: Sales Cost adjustments Closing balance Account linked to workpaper (if any): 750 Listed Shares 2,50 or select accounts to reconcile: Variance -2,50 Mark to market profit/(loss) Closing market value Add: Net sale proceeds Cost adjustment (decrease) Less: Opening market vlaue Purchases Cost adjustment (increase) Mark to market profit/(loss) Select accounts to reconcile: Variance Realised profit/(loss) Realised profit/(loss) Select accounts to reconcile: Variance 70

71 Another Company Ltd Accounting for Investments Investment data Investment: Prior year market price at year end Current year market price at year end Opening balance Buy Sell Cost/unit adjustment Closing balance Purchase date Units Cost Value Units Cost Units Cost Units Cost Units Cost Value Sale proceeds Realised profit/loss Investment: Prior year market price at year end Current year market price at year end Opening balance Buy Sell Cost/unit adjustment Closing balance Purchase date Units Cost Value Units Cost Units Cost Units Cost Units Cost Value Sale proceeds Realised profit/loss Investment: Prior year market price at year end Current year market price at year end Opening balance Buy Sell Cost/unit adjustment Closing balance Purchase date Units Cost Value Units Cost Units Cost Units Cost Units Cost Value Sale proceeds Realised profit/loss Investment: Prior year market price at year end Current year market price at year end Opening balance Buy Sell Cost/unit adjustment Closing balance Purchase date Units Cost Value Units Cost Units Cost Units Cost Units Cost Value Sale proceeds Realised profit/loss Investment: Prior year market price at year end Current year market price at year end Opening balance Buy Sell Cost/unit adjustment Closing balance Page 2 71

72 Another Company Ltd Accounting for Investments Purchase date Units Cost Value Units Cost Units Cost Units Cost Units Cost Value Sale proceeds Realised profit/loss Report totals Opening balance Buy Sell Cost/unit adjustment Closing balance Cost Value Cost Cost Cost Cost Value Sale proceeds Realised profit/loss ed account 72 Page 3

73 Another Company Ltd Accounting for Investments (Cost) Cost summary Opening balance Add: Purchases Cost adjustments Less: Sales Cost adjustments Closing balance Account linked to workpaper (if any): 750 Listed Shares 2,50 or select accounts to reconcile: Variance -2,50 Realised profit/(loss) Realised profit/(loss) Select accounts to reconcile: Variance 73

74 Another Company Ltd Accounting for Investments (Cost) Investment data : Opening balance Buy Sell Cost/unit adjustment Closing balance Purchase date Units Cost Units Cost Units Cost Units Cost Units Cost Sale proceeds Realised profit/loss Opening balance Buy Sell Cost/unit adjustment Closing balance Purchase date Units Cost Units Cost Units Cost Units Cost Units Cost Sale proceeds Realised profit/loss Opening balance Buy Sell Cost/unit adjustment Closing balance Purchase date Units Cost Units Cost Units Cost Units Cost Units Cost Sale proceeds Realised profit/loss Opening balance Buy Sell Cost/unit adjustment Closing balance Purchase date Units Cost Units Cost Units Cost Units Cost Units Cost Sale proceeds Realised profit/loss Opening balance Buy Sell Cost/unit adjustment Closing balance Purchase date Units Cost Units Cost Units Cost Units Cost Units Cost Sale proceeds Realised profit/loss Opening balance Buy Sell Cost/unit adjustment Closing balance Purchase date Units Cost Units Cost Units Cost Units Cost Units Cost Sale proceeds Realised profit/loss Opening balance Buy Sell Cost/unit adjustment Closing balance Purchase date Units Cost Units Cost Units Cost Units Cost Units Cost Sale proceeds Realised profit/loss Opening balance Buy Sell Cost/unit adjustment Closing balance Purchase date Units Cost Units Cost Units Cost Units Cost Units Cost Sale proceeds Realised profit/loss Opening balance Buy Sell Cost/unit adjustment Closing balance Page 2 74

75 Another Company Ltd Accounting for Investments (Cost) Purchase date Units Cost Units Cost Units Cost Units Cost Units Cost Sale proceeds Realised profit/loss Opening balance Buy Sell Cost/unit adjustment Closing balance Purchase date Units Cost Units Cost Units Cost Units Cost Units Cost Sale proceeds Realised profit/loss Opening balance Buy Sell Cost/unit adjustment Closing balance Purchase date Units Cost Units Cost Units Cost Units Cost Units Cost Sale proceeds Realised profit/loss Opening balance Buy Sell Cost/unit adjustment Closing balance Purchase date Units Cost Units Cost Units Cost Units Cost Units Cost Sale proceeds Realised profit/loss Opening balance Buy Sell Cost/unit adjustment Closing balance Purchase date Units Cost Units Cost Units Cost Units Cost Units Cost Sale proceeds Realised profit/loss Opening balance Buy Sell Cost/unit adjustment Closing balance Purchase date Units Cost Units Cost Units Cost Units Cost Units Cost Sale proceeds Realised profit/loss Opening balance Buy Sell Cost/unit adjustment Closing balance Purchase date Units Cost Units Cost Units Cost Units Cost Units Cost Sale proceeds Realised profit/loss Opening balance Buy Sell Cost/unit adjustment Closing balance Purchase date Units Cost Units Cost Units Cost Units Cost Units Cost Sale proceeds Realised profit/loss Opening balance Buy Sell Cost/unit adjustment Closing balance Purchase date Units Cost Units Cost Units Cost Units Cost Units Cost Sale proceeds Realised profit/loss 75 Page 3

76 Another Company Ltd Accounting for Investments (Cost) Opening balance Buy Sell Cost/unit adjustment Closing balance Purchase date Units Cost Units Cost Units Cost Units Cost Units Cost Sale proceeds Realised profit/loss Opening balance Buy Sell Cost/unit adjustment Closing balance Purchase date Units Cost Units Cost Units Cost Units Cost Units Cost Sale proceeds Realised profit/loss Opening balance Buy Sell Cost/unit adjustment Closing balance Purchase date Units Cost Units Cost Units Cost Units Cost Units Cost Sale proceeds Realised profit/loss Report totals Opening balance Buy Sell Cost/unit adjustment Closing balance Cost Cost Cost Cost Cost Sale proceeds Realised profit/loss ed account Page 4 76

77 Another Company Ltd Investments - shares Opening number of shares Number of shares added Number of shares sold Closing number of shares Opening value Value of shares added Value of shares sold Gain/loss on sale Closing balance at cost Closin g share price Closing balance at market value Gain/loss at market value Balance as per 750 Listed Shares 2,50 Variance -2,50 ed account 77

78 Another Company Ltd Investments - summary Total from Investments (linked from Investments - interest bearing) Total from Investments (linked from Investments - shares) Other investments: Total investments Balance as per 78+ *** INVESTMENT PROPERTY [ ] *** Variance ed account 78

79 Another Company Ltd Rental Property Property address: Month Gross rent Agent / management fees Cleaning and maintenance Advertising / promotions Repairs Electricity Water Rates and taxes Bank charges Sundry Net rent April May June July August September October November December January February March Less: Additional expenses paid by client: Interest Rates Repairs Other Subtotal Less: Depreciation and write-off Depreciation Building write-off Subtotal Net rental income/(loss) 79

80 Another Company Ltd Rental Property ed account Page 2 80

81 Practice Name: ABC Consulting Client Name: Another Company Ltd Period End: 31/03/2017 Prepared By: McCormack,Anna Prepared Date: 11/04/2018 Approved By: Approved Date: Rental Property analysis Property Address: Month Gross Rent Agent / M'gement Fees Cleaning & Maintenance Advertising / Promotions Repairs Electricity Water Rates & Taxes Bank Charges Sundry Net Rent April May June July August September October November December January February March Less additional expenses paid by client: Interest Rates Repairs Other Subtotal Less depreciation and write-off depreciation building write-off Subtotal Net rental income / (loss) 81

82 Practice Name: ABC Consulting Client Name: Another Company Ltd Period End: 31/03/2017 Prepared By: McCormack,Anna Prepared Date: 11/04/2018 Approved By: Approved Date: Rental Property analysis Document s Page 2 82

83 Another Company Ltd Trade Creditors Client's accounts payable schedule (attached) Other payables: Details Account GST% GST Net amount Gross amount Creditor Total trade creditors Balance as per 800 Accounts Payable -1, Variance 1, ed account 83

84 Another Company Ltd Loan details Bank Loan analysis Reconciliation Closing balance per bank Closing balance per ledger Current portion 849/10 Term Loan No 1 ex 850/05 Non-current portion 850 Term Loan No 1-40,00-40,00 Variance -40,00 Calculation of current/non-current portion Interest rate for next 12 months % Last date interest was paid Monthly repayment amount Balance date 31/03/2017 Number of days to accrue Current portion Non-current portion Interest accrued to balance date Month Interest Principal Balance Flag check Current portion Non-current portion Closing balance per ledger 40,00 Closing balance calculated Variance 40,00 Immaterial rounding Adjusted variance 40,00 Expected ledger balances 84

85 Another Company Ltd Bank Loan analysis ed account 85 Page 2

86 Another Company Ltd Hire purchase information Asset purchased Finance company Date purchased Finance rate % Hire Purchase Amount Cost of asset Term of HP in months 0 Less: Date of first payment Trade-in Deposit Regular instalment amount Others Final instalment amount Add: Others Total repayments Total interest and fees Amount financed Total sum of digits 0 Hire purchase payment analysis No. of payments Sum of digits Interest portion Principal Total payments portion No. of payment in previous period 0 0 No. of payment in current period 0 0 No. of payment in next 12 months 0 0 Outstanding payment Net hire purchase liability Balance as per accounts Balance as per above Variance schedule Total outstanding principle amount HP liability - current < > HP liability - non-current < > Less: HP interest-in-suspense < > N/A N/A ed account 86

87 Another Company Ltd Loan Reconciliation Bank account name and number Closing balance as per statement $64,00 Less: Interest paid Bank charges Loan service fees Refund Sub-total 64,00 Add: Repayments Balance as per accounts $64,00 Loan reconciliation statement Balance as per general ledger account 810 Current Loan 1-64,20 Variance 20 Accounts links ed account 87

88 Another Company Ltd Bank Loans Secured loans Unsecured loans Total bank loans Current Non current Checklist Have reconciliation's been prepared for all balances. Has classification of balances between current and non current been considered. Have loan statements been attached. Have you considered disclosure of security for debts in the financial statements. Have you considered the existence of other loans. Is interest paid in accordance with loan agreement. ed account Total of current and non current Variance 88

89 Another Company Ltd Generic Liability Template Date Amount Amount to reconcile to ledger (credit balance) Balance as per 850 Term Loan No 1-40,00 Variance 40,00 ed account 89

90 Another Company Ltd Intercompany Loans Reconciliation Intercompany loan balances This ledger account Loan amount Other ledger account Loan amount Variance 849/10 Term Loan No 1 ex 850/05 849/11 Term Loan No 2 ex 851/05 ed account 90

91 Another Company Ltd Dividend Paid - Net Date of dividend Total # shares in company * Total gross dividend Total imputation credits Net dividend Withholding tax rate % Withholding tax Net amount paid 0 Total 0 * Enter the number of shares in the the total field. All dividends paid in this workpaper are based on the same shareholding. Shareholder # Shares held Gross dividend Imputation credits Net dividend Withholding tax rate % Withholding tax Net amount paid 0 Total 0 Variance 0 Net dividend Immaterial rounding Rounded payment ed account 91

92 Another Company Ltd Imputation Credit Account This year Last year Opening balance Add: Taxation paid Resident withholding tax Dividend withholding payments Imputation credits received Others Less: Taxation refunded Imputation credits attached to dividends paid Others Closing balance Closing balance as per: Variance Check opening balance Balance per account 996/80 Imputation Credit Account Opening balance (as above) Variance ed account 92