INTRODUCTION

ACCOUNTING ACTIVE is an independent accounting firm, whose partners have

extensive individual experience as accountants or consultants of nationally
recognized

companies.

We

dedicate

to

providing

personalized

auditing,

accounting, and consulting services, providing quality work and efficiency to meet
the needs of our customers and contribute to the generation of added value that
our customers need.
Our primary services include:

Development of their books.

Development of computerized accounting.
Preparation and submission of monthly reports of sales and purchases.
Preparation and submission of monthly reports of the payrolls of their

workers.
Preparation and submission of monthly reports of incomes, deductions and

withdrawals from your sales and purchases.

Preparation and submission of the Annual Tax Statements (Balance Sheet,
Profit and Loss Statements, financial statements ... etc).

Our firm is made up of five members and is located in Machala at Sucre between
Junin and Tarqui streets.

RESPONSIBILITIES FOR EACH MEMBER OF THE ACCOUNTING

OFFICE

MAYRA CARCHE PADILLA

- Gather source documents ( invoice, check, credit card statements and debits and
credits notes)

KREYMER FLORES MRQUEZ

-

Record all the transaction in the accounting journal and close the books at the
end at every fiscal year.

KATHERINE HERNNDEZ LOOR

-

Fill out invoice, general ledger posting and tax forms

SOFA CHALN JUMBO

-

Elaborate balance sheets and income statements

NELLY OCHOA OCHOA

-

Elaborate cash flow statements and adjust errors

WANTED: BOOKKEEPER

SOURCE DOCUMENTS

INVOICE is an administrative document that serves as proof of the sale of a good

or service and also includes all the information of the operation.
TAX PAYER ID: 0706927936001

INVOICE
Series
Sixto Marcelino Ochoa Ochoa
Address: Guayas e/ Sucre and 25 de
Junio
e-mail: ochoa1422@hotmail.com
phone.: 2792331 cell: 0986159323
Sale of toys, jewellery and fashion
Wholesale and retail
Machala- El Oro- Ecuador

CUSTOMER: Zoila Toro

ADRESS: Sauces 1
ID: 0701868406
PLACE: Machala

00-00-00000101
IRS. AUT. 1117551590

DAY

MONTH

YEAR

12

2015

PHONE: 6001544
REFERRAL GUIDE: 001-2115

QUANTITY

DESCRIPTION

UNIT PRICE

TOTAL PRICE

5 DOZEN

Cooking games for girls code

2563

33,20

166,00

8 DOZEN

Set of 6 pieces cars

21,30

170,40

3 DOZEN

Remote control aircraft game

58,00

174,00

SUBTOTAL

510,40

JD MONEY

CUSTOMER

TAX 0%

0,00

TAX 12%

61,25

BALANCE DUE

571,65

TRUJILLO GARCA FERNANDA MATILDE, GRAPHICS IMPRENTTRU RUC: 0704567892001- AUT #1062012BLOCKS (100*3)- DATE OF APPROVAL: 3-11-2015- EXPIRES NOVEMBER 3, 2016

WITHHOLDING: Is the obligation of the purchaser of goods and services, not to deliver the full value of the purchase to the
supplier, but to keep or retain a percentage in taxes. This value must be delivered to the State on behalf of the taxpayer, for whom this
will mean withholding prepayment or advance taxes.

WITHHOLDING
ID:0706927936001

ADDRESS: Guayas e/ Sucre and 25 de Junio

PHONE: 2792331

001-001-000000010

IRS. AUT. N

1117551590

DATE

03/12/2015

CITY:

Machala

TAXPAYER :

Zoila Toro

ID:

701868406

00-00-00000101

TYPE OF PROOF: Invoice

WITHHOLDING OF TAXES
FISCAL

CONCEP
EXERCIS
T
E

TAX
BASE

WITHHOLDING INCOME TAX WING

WITHHO
LDING

FISCAL
EXERCISE

2015
SUBTOT
AL

TOTAL

SUBTOTAL

TAX

CONCEP
T

BASE

Income tax

510,40

WITHHO
LDING

1%

5,10

5,10

5,10

ASIGNATURE AND SEAL WITHHOLDING

AGENT

PAYROLL is the record that makes every company to keep track of payments and discounts to be performed by employees each
month, generally, in this paper considers two sections, one for recording income as salaries, overtime, commissions, bonds, etc. and
another to record the discount as contributions for social insurance fees for loans from the company, advances, etc.

JD MONEY
PAYROLL
FROM 01 JANUARY TO 31 DECEMBER 2015
N

1
2

NAMES

WORK
DAYS

SALARY

MANAGE
R

30

$ 850,00

SELLER

30

$ 450,00

30
30

POSITION

NOEMI FEIJOO
MISHELL
ESPINOZA

EMPLOYE
3 MAYRA BERMEO
E
JHONNY
EMPLOYE
4
GUERRERO
E
TOTAL

TOTAL
INCOME

CONTRIBUTIO
N IESS 9,45%

$ 850,00

$ 85,68

$ 50,00

$ 135,68

$ 714,32

$ 200,00

$ 658,44

$ 43,32

$ 20,00

$ 63,32

$ 595,12

$ 366,00

$ 110,00

$ 476,00

$ 44,98

$ 44,98

$ 431,02

$ 366,00

$ 140,00

$ 506,00

$ 47,82

$ 47,82

$ 458,18

$ 291,80

$
2.198,64

$
2.032,00

MANAGER

OVERTI
ME
COMMISSION

$ 8,44

$ 8,44

$
$ 450,00 2.490,44

$ 221,80

TOTAL
ADVANCE EXPENSES

$ 70,00

ACCOUNTANT

LIQUID TO
RECEIVE

ACCOUNTING JOURNAL

ACCOUNTING JOURNAL it is a ledger where they are collected, every day,

economic events of a business. The annotation of an economic fact in the Daily
book called seat; it all transactions are recorded by a company.
The ENTRIES are notes recorded by the double entry system and contain debit
entries in one or more credit accounts and other (s) account (s) so that the sum of
debits equal the sum of the credits. This ensures that the accounting equation is
maintained.

JD MONEY
ACCOUNTING JOURNAL
FROM 01 JANUARY TO 31 DECEMBER 2015
DATE
01/12/1
5

04/12/1
5

10/12/1
5

19/12/1
5

ACCOUNT TITTLE
- 01Cash
Bank
Merchandise Inventory
Accounts Payable
Capital
T/R Balance Sheet
-02Cash
Sales 12%
VAT sales
T/R Sales according to the invoice 101
-03Purchase of merchandise 12%

REF

DEBIT

CREDIT

250,00
3.000,00
2.000,00
1.000,00
4.250,00
571,65
510,40
61,25
1656,00

VAT Purchase
Banks
Documents to Pay
Source Withholding Income Tax 1%
T/R Purchases according to the invoice 103
-04Cash

198,72

Documents Receivable
Withholding Tax
Sales 12%
VAT sales
T/R Sales according to the invoice 110

209,57
4,72

735,26
1102,90
16,56
314,35

472,00
56,64

22/12/1
5

23/12/1
5

25/12/1
5

30/12/1
5

30/12/1
5

31/12/1
5

-05Cash
Sales 12%
VAT sales
T/R Sales according to the invoice 115
-06-

73,92
66,00
7,92

Purchase of merchandise 12%

VAT Purchases
Banks
Source Withholding Income Tax 1%
T/R Purchases according to the invoice 120
-07-

968,00
116,16

Cash
Documents Receivable
Withholding Tax
Sales 12%
VAT sales
T/R Sales according to the invoice 123
-08-

314,35
209,57
4,72

Cash
Sales 12%
VAT sales
T/R Sales according to the invoice 140

772,80

1074,48
9,68

472,00
56,64

690,00
82,80

-09Equipment the office

VAT Purchases
Banks
Source Withholding Income Tax 1%
T/R Purchases according to the invoice 142
-10Salary
Contribution IESS 9,45%
Banks
T/R payment to employees
TOTAL

300,00
36,00
333,00
3,00

2198,64
221,80
1976.84
13140,59

13140,59

MANAGER

ACCOUNTANT

GENERAL LEDGER POSTING

GENERAL LEDGER POSTING the general ledger posting action is systematically

classified and so move the values found in the journal. Respecting the location of
the figures, so that if a value is in the must, must go to the appropriate account;
well this account to the credit, happen to be.

JD MONEY
GENERAL LEDGER POSTING
FROM 01 JANUARY TO 31 DECEMBER 2015
ACCOUNT TITTLE: CASH
DATE
DESCRIPTION
01-12-15
02-12-15
19-12-15
22-12-15
25-12-15
30-12-15

Balance sheet
Sales according to
the invoice 101
Sales according to
the invoice 110
Sales according to
the invoice 115
Sales according to
the invoice 123
Sales according to
the invoice 140

FOLIO#1

REF

DEBIT

01
02

250,00
571,65

250,00
821,65

04

314,35

1136,00

05

73,92

1209,92

07

314,35

1524,27

08

772,80

2297,07

2297,07

TOTAL

CREDIT

SALDO

0,00

JD MONEY
GENERAL LEDGER POSTING
FROM 01 JANUARY TO 31 DECEMBER 2015
ACCOUNT TITTLE: BANK
DATE
DESCRIPTION
01-12-15
10-12-15
23-12-15
31-12-15

Balance sheet
Purchases according
to the invoice 103
Purchases according
to the invoice 120
payment to
employees

TOTAL

FOLIO# 1

REF

DEBIT

01
03

3000,00

CREDIT

SALDO

735,26

3000,00
2264,74

06

1074,48

1190,26

10

1976.84

-786,58

3000,00

3786,58

JD MONEY
GENERAL LEDGER POSTING
FROM 01 JANUARY TO 31 DECEMBER 2015
ACCOUNT TITTLE: MERCHANDISE INVENTORY FOLIO# 1
DATE
DESCRIPTION
REF
DEBIT
CREDIT
01-12-15

Balance sheet
TOTAL

01

2000,00
2000,00

SALDO
2000,00

JD MONEY
GENERAL LEDGER POSTING
FROM 01 JANUARY TO 31 DECEMBER 2015
ACCOUNT TITTLE: ACCOUNTS PAYABLE
DATE
DESCRIPTION
REF
DEBIT
01-12-15

Balance sheet
TOTAL

01

FOLIO# 1

CREDIT

SALDO

1000,00
1000,00

1000,00

JD MONEY
GENERAL LEDGER POSTING
FROM 01 JANUARY TO 31 DECEMBER 2015
ACCOUNT TITTLE:CAPITAL
DATE
DETALLE
01-12-15

Balance sheet
TOTAL

FOLIO# 1

REF
01

DEBIT

CREDIT

SALDO

4250,00

4250,00

4250,00

JD MONEY
GENERAL LEDGER POSTING
FROM 01 JANUARY TO 31 DECEMBER 2015
ACCOUNT TITTLE: SALES 12%
DATE
DESCRIPTION
REF
04-12-15
19-12-15
22-12-15
25-12-15
30-12-15

Sales according to
the invoice 101
Sales according to
the invoice 110
Sales according to
the invoice 115
Sales according to
the invoice 123
Sales according to
the invoice 140
TOTAL

FOLIO#1

CREDIT

SALDO

02

DEBIT

510,40

510,40

04

472,00

982,40

05

66,00

1048,40

07

472,00

1520,40

08

140,00

1660,40

1660,40

JD MONEY
GENERAL LEDGER POSTING
FROM 01 JANUARY TO 31 DECEMBER 2015
ACCOUNT TITTLE: VAT SALES
DATE
DESCRIPTION
REF
01-12-15
19-12-15
22-12-15
22-12-15
30-12-15

Sales according to
the invoice 101
Sales according to
the invoice 110
Sales according to
the invoice 115
Sales according to
the invoice 123
Sales according to
the invoice 140
TOTAL

FOLIO# 1

DEBIT

CREDIT

SALDO

02

61,25

61,25

04

56,64

117,89

05

7,92

125,81

07

56,64

182,45

08

82,80

265,25

265,25

JD MONEY
GENERAL LEDGER POSTING
FROM 01 JANUARY TO 31 DECEMBER 2015
ACCOUNT TITTLE: VAT PURCHASE
DATE
DETALLE
REF
10-12-15
23-12-15
30-12-15

Purchases according
to the invoice 103
Purchases according
to the invoice 120
Purchases according
to the invoice 142
TOTAL

FOLIO#1

DEBIT

CREDIT

SALDO

03

198,72

198,72

06

116,66

315,38

09

36,00

351,38

351,38

JD MONEY
GENERAL LEDGER POSTING
FROM 01 JANUARY TO 31 DECEMBER 2015
ACCOUNT TITTLE: SOURCE WITHHOLDING
INCOME TAX 1%
DATE
DETALLE
REF
DEBIT
10-122015
23-122015
30-122015

Purchases according
to the invoice 103
Purchases according
to the invoice 120
Purchases according
to the invoice 142
TOTAL

FOLIO#1

CREDIT

SALDO

03

16,56

16,56

06

9,68

26,24

09

3,00

29,24

29,24

JD MONEY
GENERAL LEDGER POSTING
FROM 01 JANUARY TO 31 DECEMBER 2015
ACCOUNT TITTLE: WITHHOLDING TAX
DATE
DETALLE
REF
DEBIT
19-12-15
25-12-15

Sales according to
the invoice 110
Sales according to
the invoice 123
TOTAL

FOLIO# 1

CREDIT

SALDO

04

4,72

4,72

07

4,72

9,44

9,44

JD MONEY
GENERAL LEDGER POSTING
FROM 01 JANUARY TO 31 DECEMBER 2015
ACCOUNT TITTLE: PURCHASE OF
MERCHANDISE 12%
DATE
DETALLE
REF
10-12-15
23-12-15

Purchases according
to the invoice 103
Purchases
according to the
invoice 120
TOTAL

FOLIO#1

DEBIT

CREDIT

SALDO

03

1656,00

1656,00

06

968,00

2624,00

2624,00

JD MONEY
GENERAL LEDGER POSTING
FROM 01 JANUARY TO 31 DECEMBER 2015
ACCOUNT TITTLE: SALARY
DATE
DETALLE
31-12-15

payment to
employees
TOTAL

FOLIO#2

REF

DEBIT

10

2198,64

CREDIT

SALDO
2198,64

2198,64

JD MONEY
GENERAL LEDGER POSTING
FROM 01 JANUARY TO 31 DECEMBER 2015
ACCOUNT TITTLE: CONTRIBUTION IESS 9,45%
DATE
DETALLE
REF
DEBIT
31-12-15

payment to
employees
TOTAL

MANAGER

10

221,80

FOLIO#2

CREDIT

SALDO
221,80

221,80

ACCOUNTANT

SALES REPORT

SALES REPORT: Sales reports provide a record of past performance and can
be used as a tool for predicting the performance of future business.

sales report
60,000.00
50,000.00
40,000.00
30,000.00
20,000.00
10,000.00
0.00

JD MOONEY business made the sales report of the 2015 with the following details
In January sales decreased because of previous festivals. In February and March
we celebrate carnival; therefore the sales of accessories and shoes increased.
In April the classes start, therefore the sales of

school supplies continued to

increase and consequently in May and June sales of products and toys stabilized
due to the celebration of Mother's Day and Children's Day giving a positive effect
on earnings sales.
In July and August sales earnings fell sharply due to retained goods through
customs. In September and October sales declined due to the regeneration of the
local streets where they are located.
In November and December sales increased reasonably because of the Christmas
season.

BALANCE SHEET

BALANCE SHEET is a statement of the assets, liabilities, and capital of a

business or other organization at a particular point in time, detailing the balance of
income and expenditure over the preceding period.

JD MONEY
BALANCE SHEET
FROM 01 DECEMBER 2015
(In dollars)
ASSET
Current Asset
Cash

$ 250,00

LIABILITIES
Current liabilities
Accounts Payable

$ 1000,00

Bank
Merchandise Inventory

$ 3000,00
$ 2000,00

Total Liabilities
Capital

$ 1000,00
$ 4.250,00

TOTAL ASSETS

$ 5.250,00

TOTAL LIABILITIES +
OWNER`S EQUITY

$ 5.250,00

MANAGER

ACCOUNTANT

INCOME STATEMENT

INCOME STATEMENT The income statement, also known as profit and loss is a
financial report that based on a specified period shows in detail the income earned,
expenses when they occur and as a result, the profit or loss the company has
generated in that period of time to analyze this information and on this basis, make
business decisions

JD MONEY
INCOME STATEMENTS / PROFIT & LOSS STATEMENT
FROM 01 JANUARY TO 31 DECEMBER 2015

SALES

5.066,00

(-) SALES COST

3.896,91

= GROSS PROFIT ON SALES

1.169,09

(-) OPERATIONAL EXPENSES

Administrative Expenses
Sales Expenses

169,00
100,00
69,00

(=) OPERATIONAL UTILITY

1000.09

(-) 15% Participation Workers

150,01

(=)INCOME BEFORE TAX

850,00

22 % Income Tax

187,02

NET INCOME

663,06

MANAGER

ACCOUNTANT

CASH FLOW STATEMENT

CASH FLOW STATEMENT It is a basic financial statement that reports on the

variations and movements of cash and cash equivalents in a given period.

JD MONEY
CASH FLOW STATEMENT
FROM 01 JANUARY TO 31 DECEMBER 2015
CASH FLOW FROM OPERATIONS
CASH GENERATED FROM SALES

150.000,00

PAYMENTS TO SUPPLIERS AND EMPLOYEES

(50.000,00)

PAYMENTS ON DEBTS

(10.000,00)

PAYMENT ON TAXES

(7.000,00)

NET CASH FLOW FROM OPERATING ACTIVITIES

87.000,00

CASH FLOW FROM INVESTING

PAYMENTS FOR NEW INVESTMENTS
DIVIDENDS RECEIVED

(5.000,00)
4.000,00

NET CASH FLOW FROM INVESTING

(1.000,00)

CASH FLOW FROM FINANCING

DEBT INCREASES
DIVIDENDS PAID TO STOCKHOLDERS
NET CASH FLOW FROM FINANCING ACTIVITIES
NET CASH FLOW

2.000,00
(6.000,00)
(4.000,00)
2.000,00

CASH BALANCE, BEGINNING OF YEAR

300000,00

CASH BALANCE, END OF YEAR

385000,00

MANAGER

ACCOUNTANT

VOCABULARY

ASSETS: An asset is an asset that the company owns and can converters in cash
or cash equivalents.

Cash: It is the liquid element owned by the company, that is, it is money.
The company uses this cash to meet its immediate obligations

Accounts Receivable: It is where increases and cuts linked to the sale of

different concepts to products or services are recorded. This account
consists of bills of exchange, credit and promissory notes in favor of the
company.

Inventory: They are tangible assets that are held for sale in the ordinary
course of business or to be consumed in the production of goods or services
for further marketing.

Fixed Assets: It is an asset of a company, whether tangible or intangible,

which can not become liquid short-term and are usually necessary for the
operation of the company and not intended for sale.

Accumulated Depreciation: Is the total amount of the devaluation that took

over a business over the life of each asset. Usually, a company must record
depreciation expense each month, then the depreciation expense becomes
part of accumulated depreciation to track the total depreciation.

LIABILITIES: The liability is debt that the company has, as reflected in the balance
sheet comprises the current obligations of the company are rooted in past financial
transactions.

Accounts Payable: Accounts Payable arising on the purchase of material

goods (inventories), services received, expenses incurred and acquisition of
fixed assets or investments in hiring process.

Taxes Payable: Taxes are benefits today usually money, the state and other
public entities, that they claimed, by virtue of its coercive power, in the form
and amount determined unilaterally and without special consideration in
order to meet the needs collective.

Wages Payable: It is the account where the debts incurred by the company
to its employees and should be paid in a stipulated time period is recorded.

Notes Payable: Is the account where the documents certifying transactions

such as buying real estate or equipment, goods, and other documents
replace some of these debts on open account such as letters, notes and
other recorded depending on who is this account should be separated.

STOCKHOLDERS' EQUITY: The set of produced goods used to produce other

goods. Capital in financial sense is all money that was not consumed by its owner,
but has been saved and placed in the financial market, either buying stocks,
bonds, public funds, or making deposits in depository institutions.
Common Stock: Registered common shares, representing the capital of
the true owners of society; because they are the ones with deliberative
power.
Retained Earnings: The balance of this account at the time of the initial
adjustment must be compared with the balance of the account Accumulated
at the same date; the debtor is a restriction on the payment of dividends in
cash and shares.
Revenue: The company receives money or born receivables in its favor, it will
effective on the dates stipulated. Income occurs when business assets increases
and this increase is not due to new members' shares.

Sales returns and allowances: The account records the value of the
returned goods or bonuses given or made by customers; increases by debit,
the record is of the form.

Expenses: In an industrial, commercial or service provision business to function

normally finds it unavoidable to acquire certain goods and services such as: labor,
electricity, telephone, etc.

Cost of Goods Sold: The cost of sales is the cost incurred to sell an asset,
or to provide a service. It is the value that has been incurred to produce or
purchase a commodity to be sold.
Depreciation Expense: Depreciation expenses are periodic savings going
by a company to the end of the life of an asset, the company has a save to
renew the asset (buy one later).
Payroll Tax Expense: These taxes are business expenses and are
recorded as debits to expense account, up to this point the description of
payroll taxes has been linked to taxes that are required to pay employees
and withholding on their wages.
Rent Expense: This account represents the obligation of the company to
pay bills, leases, and other equipment at the time they become due.