JOURNAL

SUBJECT

DEBIT

DATE

ENTRY

march 1

26

Payment of building's rent

621

Renting expenses

10,000.00

572

march 5

27

Purchase of merchandise (prepay)

600

Purchase of merchandise

54,000.00

572

ACC.

ACCOUNT TITLE

AMOUNT

ACC.

400
march 15

28

Sale of appliances

572

Bank current account

15,200.00

4310

Drafts in portfolio

60,800.00
15,000.00

572

9,344.00

490

25,000.00

4751

march 18

29

Advertising campaign

627

Advertising expenses

march 18

30

Provision for doubtful receivables

694

Provisions for doubtful clients

march 31

31

Payment of payroll

640

Salary expenses

700

476
572
march 31

32

Company's Social Security

642

Company's Social Security

6,250.00

572

march 31

33

Monthly payment of leasing

660

Financial expenses

1,523.00

572

173

L/T suppliers of fixed assets

3,141.00
1,000.00

5200

500.00

740

3,472.22

282

march 31

34

Adjusting entry (loan's interest)

660

Financial expenses

march 31

35

Adjusting entry (grant)

130

Capital grants

march 31

36

Adjusting entry (leasing depreciation)

681

Depreciation of tangible assets

march 31

37

Adjusting entry (regulariz. of invent.)

300

Inventory of merchandises

march 31

38

Closing entry (expenses)

129

Profit and loss account

27,000.00

610

245,274.33

600
610
621
627
628
640
642
660
680
681
693
694
706

march 31

39

Closing entry (revenues)

TOTAL

606

Discount on purch. prompt paym.

610

Variation of merchandise stock

700

Sale of merchandise

740

Income of grants

129
27,000.00
146,000.00
1,500.00

652,004.56

652,004.56

MONTH:

March

CREDIT
ACCOUNT TITLE

AMOUNT

Bank, current account

10,000.00

Bank, current account

5,400.00

Suppliers of merchandises

48,600.00

Sale of merchandise

76,000.00

Bank, current account

15,000.00

Deterioration in the value of A/R

9,344.00

Public Treas, creditor (withh. tax)

3,750.00

Social Security, creditor

2,000.00

Bank, current account

19,250.00

Bank, current account

6,250.00

Bank, current account

4,664.00

Short-term debt with banks

1,000.00

Income from grants

Accum. deprec. tang. assets

500.00
3,472.22

Variation of merchandise stock

Purchase of materials

27,000.00
114,000.00

Variation of merchandise stock

Renting expenses

25,000.00

Advertising expenses

15,000.00

Other supplies
Salary expenses

50,000.00

Company's Social Security

12,500.00

Financial expenses

9,013.67

Depreciation intangible assets

Depreciation tangible assets

10,416.67

Provisions for stock's depreciat.

Provisions for doubtful clients

9,344.00

Discounts on sale prompt paym.

Profit and loss account

174,500.00

652,004.56

0.00

652,004.56

LEDGER

MONTH:
121. Accumulated losses

100. Capital stock

40,000.00
100,000.00

1
3

140,000.00

38

129. Profit and Loss

245,274.33

174,500.00

245,274.33

174,500.00

0.00

39

10
21
35

130. Capital grants

500.00
500.00
500.00

1,500.00

140. Provisions for L/T liabilities

170. L/T debt with banks

0.00

8
19
33

173. L/T suppliers of fixed assets

3,102.00
250,000.00
3,102.00
3,141.00

9,345.00

250,000.00

204. Goodwill
2

0.00

212. Fixed assets in leasing

250,000.00

281. Accum. Deprec. Intang. A

250,000.00

0.00

300. Inventory of merchandis

282. Accum. Deprec. Tang. Assets

3,472.22
3,472.22
3,472.22

11
22
36

37

10,416.67

27,000.00

400. Suppliers of merchandises

410. Suppliers of services

54,000.00
48,600.00

0.00

27,000.00

14
27

102,600.00

0.00

4311. Discounted drafts

16
28

4310. Drafts in portfolio

56,000.00
60,800.00

0.00

116,800.00
432. Due from factor

0.00

436. Doubtful customers

0.00

4751. Public Treas. creditor (withholding tax)

3,750.00
3,750.00

17
31

7,500.00

476. Social Security creditor

2,000.00
2,000.00

17
31

4,000.00

30,000.00

485. Anticipated revenue

0.00

480. Prepaid expense

30,000.00

490, Deterioration in the value o

0.00

5200. Short-term debt with banks

5208. Debt for discounted dra

866.67
1,000.00
1,000.00

9
20
34

5209. Debt for factoring opera

0.00

1
3
4
5
16
28

572. Bank, current accounts

40,000.00
100,000.00
148,500.00
30,000.00
14,000.00
15,200.00

2,866.67

30,000.00
5,000.00
4,664.00
6,000.00
19,250.00
6,250.00
10,000.00
4,664.00
5,400.00
10,000.00
15,000.00
19,250.00
6,250.00
4,664.00

6
7
8
14
17
18
15
19
27
26
29
31
32
33

14
27

600. Purchase of merchandis

60,000.00
54,000.00

114,000.00

606. Discounts on purch. for promp

0.00

610. Variation of stock of mercha

39

27,000.00

27,000.00

7
15
26
347,700.00

146,392.00

621. Renting expenses

5,000.00
10,000.00
10,000.00

29

627. Advertising expenses

15,000.00
15,000.00

15,000.00

38

15,000.00

25,000.00

628. Other supplies

17
31

640. Salary expenses

25,000.00
25,000.00

0.00
50,000.00

18
32

642. Company's Social Security

6,250.00
6,250.00
12,500.00

12,500.00

38

4
8
9
19
20
33
34

12,500.00

9,013.67

680. Depreciation of intang. assets

11
22
36

0.00

660. Financial expenses

1,500.00
1,562.00
866.67
1,562.00
1,000.00
1,523.00
1,000.00

681. Depreciation of tangible a

3,472.22
3,472.22
3,472.22

10,416.67

693. Provisions for stocks' depreciation

30

0.00

0.00

9,344.00

700. Sale of merchandise

706. Discounts on sales for promp

70,000.00
76,000.00

39

694. Provisions for doubtful cli

9,344.00

16
28

146,000.00
0.00
740. Income of grants

39
146,000.00

1,500.00

146,000.00

1,500.00

1,025,819.33

1,011,775.33

421,574.33

1,447,393.67

1,447,393.67
0.00

March
121. Accumulated losses

0.00
130. Capital grants
30,000.00

30,000.00

170. L/T debt with banks

150,000.00

150,000.00
204. Goodwill

281. Accum. Deprec. Intang. Assets

0.00
300. Inventory of merchandises

0.00
410. Suppliers of services

0.00
4310. Drafts in portfolio

436. Doubtful customers

480. Prepaid expense

0.00
490, Deterioration in the value of A/R
9,344.00

9,344.00
5208. Debt for discounted drafts

0.00

5209. Debt for factoring operations

0.00

30

600. Purchase of merchandises

114,000.00

38

114,000.00

606. Discounts on purch. for prompt paym.

610. Variation of stock of merchandises

27,000.00

37

27,000.00
621. Renting expenses

25,000.00

38

25,000.00
640. Salary expenses

50,000.00

38

50,000.00
660. Financial expenses

9,013.67

38

9,013.67
681. Depreciation of tangible assets

10,416.67

10,416.67

38

694. Provisions for doubtful clients

9,344.00

38

9,344.00
706. Discounts on sales for prompt paym.

740. Income of grants

500.00
500.00
500.00

1,500.00

435,618.33
1,447,393.67

10
21
35

TRIAL BALANCE (Before regularisation)

ACC.
100
130
170
173
204
212
281
282
300
400
410
4310
4311
432
4751
476
480
485
490
5200
5208
5209
572
600
606
610
621
627
628
640
642
660
680
681
693
694
700
706
740

CONCEPT
Capital stock
Capital grants
Long-term debt with banks
L/T suppliers of fixed assets
Goodwill
Fixed assets in leasing
Accum. Deprec. Intang. Assets
Accum. Deprec. Tang. Assets
Inventory of merchandises
Suppliers of merchandises
Suppliers of services
Drafts in portfolio
Discounted drafts
Due from factor
Public Treasury, creditor (withholding tax)
Social Security, creditor
Prepaid expenses
Anticipated revenue
Deterioration in the value of receivables
Short-term debt with banks
Debt for discounted drafts
Debt for factoring operations
Bank, current account
Purchase of merchandise
Discount on purch. for prompt paym.
Variation of merchandise stock
Renting expenses
Advertising expenses
Other supplies
Salary expenses
Company's Social Security
Financial expenses
Depreciation intangible assets
Depreciation tangible assets
Provisions for stock's depreciation
Provisions for doubtful clients
Sale of merchandise
Discounts on sale for prompt payment
Income of grants
TOTAL

SUM
DEBIT

CREDIT

1,500.00
9,345.00
0.00
250,000.00

140,000.00
30,000.00
150,000.00
250,000.00

0.00
10,416.67
27,000.00
102,600.00
0.00
116,800.00
0.00
0.00
7,500.00
4,000.00
30,000.00

347,700.00
114,000.00

0.00
9,344.00
2,866.67
0.00
0.00
146,392.00
0.00
27,000.00

25,000.00
15,000.00
0.00
50,000.00
12,500.00
9,013.67
0.00
10,416.67
0.00
9,344.00
146,000.00
0.00
1,027,619.33

1,500.00
1,027,619.33
0.00

MONTH:

March
BALANCE

DEBIT
0.00
Err:518
Err:518
Err:518
Err:518
250,000.00
Err:518
Err:518
27,000.00
Err:518
Err:518
116,800.00
Err:518
Err:518
Err:518
Err:518
30,000.00
Err:518
Err:518
Err:518
0.00
0.00
201,308.00
114,000.00
Err:518
Err:518
25,000.00
15,000.00
Err:518
50,000.00
12,500.00
9,013.67
0.00
10,416.67
Err:518
9,344.00
Err:518
Err:518
Err:518
870,382.33

CREDIT
140,000.00
28,500.00
150,000.00
240,655.00
Err:518
Err:518
Err:518
10,416.67
Err:518
102,600.00
Err:518
Err:518
Err:518
Err:518
7,500.00
4,000.00
Err:518
Err:518
9,344.00
2,866.67
0.00
0.00
Err:518
Err:518
Err:518
27,000.00
Err:518
Err:518
Err:518
Err:518
Err:518
Err:518
0.00
Err:518
Err:518
Err:518
146,000.00
Err:518
1,500.00
870,382.33
0.00

TRIAL BALANCE After regularisation)

ACC.

CONCEPT

SUM
DEBIT

CREDIT

100

Capital stock

140,000.00

129

Profit and loss account

130

Capital grants

170

Long-term debt with banks

173

L/T suppliers of fixed assets

204

Goodwill

212

Fixed assets in leasing

281

Accum. Deprec. Intang. Assets

282

Accum. Deprec. Tang. Assets

300

Inventory of merchandises

400

Suppliers of merchandises

410

Suppliers of services

4310

Drafts in portfolio

116,800.00

4311

Discounted drafts

0.00

432

Due from factor

0.00

4751

Public Treasury, creditor (withholding tax)

7,500.00

476

Social Security, creditor

4,000.00

480

Prepaid expenses

485

Anticipated revenue

490

Deterioration in the value of receivables

9,344.00

5200

Short-term debt with banks

2,866.67

5208

Debt for discounted drafts

0.00

5209

Debt for factoring operations

0.00

572

Bank, current account

245,274.33

174,500.00

1,500.00

30,000.00
150,000.00

9,345.00

250,000.00

0.00
250,000.00
0.00
10,416.67
27,000.00
102,600.00
0.00

30,000.00
0.00

TOTAL

347,700.00

146,392.00

1,027,619.33

1,027,619.33
0.00

MONTH:

March

BALANCE
DEBIT

CREDIT
0.00

140,000.00

70,774.33

0.00

0.00

28,500.00

0.00

150,000.00

0.00

240,655.00

0.00

0.00

250,000.00

0.00

0.00

0.00

0.00

10,416.67

27,000.00

0.00

0.00

102,600.00

0.00

0.00

116,800.00

0.00

0.00

0.00

0.00

0.00

0.00

7,500.00

0.00

4,000.00

30,000.00

0.00

0.00

0.00

0.00

9,344.00

0.00

2,866.67

0.00

0.00

0.00

0.00

201,308.00

0.00

695,882.33

695,882.33
0.00

PROFIT AND LOSS ACCOUNT

70

Sales

74

Other income

MONTH:

March

AMOUNT

146,000.00
1,500.00

JANUARY

TOTAL INCOME

147,500.00

100.0

Cost of materials

87,000.00

59.0

600

- Purchases

114,000.00

610

- Variation of merchandise stock

-27,000.00
60,500.00

41.0

Personal expenses

62,500.00

42.4

640

- Salaries (gross)

50,000.00

642

- Social Security (company)

12,500.00

Other operational expenses

EBITDA (*)

40,000.00
-42,000.00

68

Depreciation of fixed assets

69

Provisions for stocks and clients

9,344.00

66

Financial expenses

9,013.67

PROFIT BEFORE TAX

-28.5

10,416.67

-70,774.33

FEBRUARY

MARCH

GROSS MARGIN

62

PROFIT BEFORE TAX

-48.0

(*) EBITDA = Earnings before interest, taxes, depreciation and amortization.

PROFIT BEFORE TAX

(Aggregate)

-11,900.89

-30,685.11

-70,774.33

BALANCE SHEET
ACC.

AMOUNT

ACC.

FIXED ASSETS
20+21

Property, plant and equipment

250,000.00

100

28

Less: Accumulated depretiation

-10,416.67

129

TOTAL FIXED ASSETS

239,583.33

CURRENT ASSETS
300

Inventories of merchandise
Receivables

130
27,000.00
116,800.00

17

(4310)

- Drafts in portfolio

116,800.00

(4311)

- Discounted drafts

0.00

520

(432)

- Due from factor

0.00

400

490

Deterioration in the value of A/R

-9,344.00

410

480

Prepaid expenses

30,000.00

4751

572

Bank accounts

201,308.00

476

TOTAL CURRENT ASSETS

365,764.00

485

TOTAL ASSETS

605,347.33

(*) Positive or negative sign, depending on the account's balance.

MONTH:

March
AMOUNT

OWNERSHIP INTEREST (O/I)

Capital stock

140,000.00

Profit and loss (*)

-70,774.33
TOTAL O/I

Capital grants

69,225.67
28,500.00

LIABILITIES
Long term debt

390,655.00

TOTAL NON-CURRENT LIABILITIES

Short-term debt with banks
Suppliers of merchandise

390,655.00
2,866.67
102,600.00

Suppliers of services

0.00

Public Treasury, creditor (withholding tax)

7,500.00

Social Security, creditor

4,000.00

Anticipated revenue

0.00

TOTAL CURRENT LIABILITIES

116,966.67

TOTAL LIABILITIES

507,621.67

TOTAL O/I + LIABILITIES

605,347.33
0.00

FINANCIAL ANALYSIS
RATIO

MONTH:

March

DEFINITION

VALUE

(Profit before tax / Ownership interest) x 100

(Gross profit / Sales) x 100
(Sales / Total assets)

-102.24
0.41
0.24

Current assets / Current liabilities

(Average inventories held / Cost of sales ) x 365
(Average receivables / Credit sales) x 365 (*)
(Average payables / Credit purchases) x 365 (**)

3.13
29.46
116.80
147.83

(Long-term liabilities / Ownership interest)

EBITDA / Interest expense

5.64
-4.66

MANAGEMENT PERFORMANCE
-Return on shareholders' equity
-Gross profit
-Total assets usage
LIQUIDITY AND WORKING CAPITAL
-Current ratio
-Stock holding period
-Customers' collection period
-Suppliers' payment period
GEARING
-Debt / equity ratio
-Interest cover

(*) Percentage of credit sales:

(**) Percentage of credit purchases:

80
90

DRAFTS' MATURITIES CONTROL

(March)

February

March

RECEIVABLES (Drafts in portfolio)

RECEIVABLES (Drafts in portfolio)

Date of issue

Amount

Maturity date

Date of issue

Amount

Maturity date

February

56,000.00

May

February

56,000.00

May

March

60,800.00

June

RECEIVABLES (Drafts discounted)

RECEIVABLES (Drafts discounted)

RECEIVABLES (Drafts in factoring)

RECEIVABLES (Drafts in factoring)

PAYABLES (Drafts accepted)

PAYABLES (Drafts accepted)

Date of issue

Amount

Maturity date

Date of issue

Amount

Maturity date

February

54,000.00

April

February

54,000.00

April

March

48,600.00

May

INVENTORY OF MERCHANDISES

(March)
January

February

March

Initial inventory (units)

30

Purchases (units)

100

100

600

540

Cost per unit

Initial inventory (euros)

18,000

Sales (units)

70

80

Ending inventory (units)

30

50

Ending inventory (euros)

18,000

27,000

Note: Valuation criteria: FIFO