Edition No.

1
Place of Editing
INACAP Training
Review No. 0
Fecha de Revisión
May 2001
Serial Number
MAT-0300-00-002
 INDEX
CONTENTS
PAGE

INTRODUCTION3

CHAPTER I ACCOUNTING 4

ACCOUNTING AS A SYSTEM 5
CHARACTERISTICS OF ACCOUNTING INFORMATION 6
BASIC ACCOUNTING PRINCIPLES 7

CHAPTER II VOUCHERS AND

MERCHANT DOCUMENTATION 8

MAIN CHARACTERISTICS OF DOCUMENTS 8

MAIN DOCUMENTS 9
INVOICE 9
DISPATCH GUIDE 10
DEBIT NOTE 11
CREDIT NOTE 11

CHAPTER III BANK DOCUMENTATION 13

MAIN DOCUMENTS 13
CHEQUES 13
BILLS OF EXCHANGE 15

CHAPTER IV INVENTORIES 16

INVENTORY EQUATION 16
CAPITAL INVARIABILITY THEORY 18
EQUALITY OF THE INITIAL INVENTORY 19
Variation of Inventory Equality 20

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 CONTENTS
PÁGINA

CHAPTER V THE ACCOUNT 22

ACCOUNTING TREATMENT OF ACCOUNTS 22

CONCEPTS 23
TECHNICALITY AND CLASSIFICATION OF ACCOUNTS 24
TYPES OF ACCOUNTS 25
ANALYSIS OF THE ACCOUNTS 27
CHART OF ACCOUNTS 28
TRANSACTION ANALYSIS TABLE 29

CHAPTER VI ACCOUNTING SYSTEM

JOURNALIST 30

JOURNAL 31
LEDGER OR ACCOUNT BOOK 34
FUNCTION 34
Trial Balance and Balances 36
BALANCE SHEET 38
FORMS OF PRESENTATION OF THE BALANCE SHEET 38

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INTRODUCTION

Considering that Accounting is a technical field that has as

the purpose of supporting and optimizing the processes of Administration and
Economics in a business organization, its teaching requires
clearly defined objectives and practical, feasible to apply with
exact precision.

It is for this reason that this Manual aims to provide

Basic contents of accounting, it is oriented towards participation.
of the student in the development of situations and practical cases that must be
to resolve, those that will logically be coordinated with the contents
expressed in the curriculum presented previously.

This will present a brief overview of the Objectives, function and

purpose of Accounting, before then taking a brief step through the
commercial and banking documentation that are the documents that record economic events
historical events that occurred in the company and that become the basis of the accounting records
subsequently developed in the accounting systems that the institution will maintain.

Subsequently, the Concepts of Accounting and their essential operations will be delivered.
finally developing records of basic accounting processes that lead to the preparation,
analysis and interpretation of Financial Statements, final, such as the Income Statements of a
company.

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CHAPTER I / ACCOUNTING

Concept

Accounting is an auxiliary technique of Economics, whose purpose is to support processes in the

Management of a company in a way that provides efficiency. The information provided serves to the
Executives to guide decision-making regarding the future of the organization.

Function

Register, accurately, chronologically (day by day), the economic events that make up the
economic activity of the company.

Objective

Inform clearly and precisely about the economic and financial results, as well as
control the development of these processes within the institution.

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 ACCOUNTING AS A SYSTEM

Within the macro-system 'company' there exists a variety of Administrative Information Subsystems,
among which we find the Accounting Information Subsystem.

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 CHARACTERISTICS OF ACCOUNTING INFORMATION

A) Exact

Respond accurately to the data

recorded in the original documents
(invoices, checks, and others).

b) True and reliable

The records and reports must express the

real situation of the facts.

C) Clara

The information must be presented in such a way

in a way that its content does not lead to error
and understood by the common people of the
members of the company.

D) Referring to a level

Elaborated according to the recipient.

Economic

With a cost lower than the benefit that

report.

F) Timely

Be available at the moment when their information is required.

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 BASIC ACCOUNTING PRINCIPLES

These are not absolute in accounting processes, they will be applied according to reality and nature of
the activity of each company.

La Moneda: Common denominator: (In Chile we only record in pesos.)

The commercial entity: Accounting is for the company, not for its owner.

The company in operation: It is presumed to be a company operating for a long time.

Double entry: Every transaction records entries in Debit and Credit.

The time: Reports specific periods: Normal cycle and legal requirements.

Accrued: Considers all resources and obligations in a period, even if they have not been...
charged or paid.

Consistency or uniformity: The books used in a period must be the same as the period.
previous

Conservative Criterion: Losses are recognized when they are known; revenues, when
have occurred.

Economic facts: Only economic facts are recorded, not social or political.

Objectivity: Records economic facts that have already occurred, not hypotheticals.

Realization: Economic results are only counted when they have been realized and within
a legal framework, without inherent risks.

Materiality: Accounting will only activate those assets whose cost is material or significant.
in relation to its context.

Exhibition: You must periodically present a report with the results of the operations and the
assets owned by the company.

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Accumulation: The assets and liabilities that accounting records from the birth of the entity.
until its conclusion.

CHAPTER II / RECEIPTS AND DOCUMENTATION

MERCHANT

Commercial documentation is the foundation of Accounting, as it records the events.

historical economic events that have occurred in the company, and it is with them that the annotations are made.
in the accounting books.

These are required by Decree Law No. 825, article 52, which establishes that, to be legal,
they must be stamped by the Internal Revenue Service.

Basically, the legal documents required are those used in the business operation.
called PURCHASE - SALE, and they are called:

Main characteristics of the documents

They do not accept any type of amendments, scratches, or smudges.

They are numbered consecutively, so when canceling them, the stamped copy by the S.I.I. must
stay on the pad.

3. They should not be torn or thrown into the trash.

4. They must fully identify the Seller Merchant and the Buyer.

5. Provide detailed information about the merchandise in question.

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Remember

Except for the Purchase-Sale Receipt, which includes VAT in its value, the other documents.
They must include the Value Added Tax (VAT) broken down from the value of the merchandise.

Excluding VAT

PLUS VAT

MAIN DOCUMENTS

Invoice
Shipping guide
Credit note
Debit note

Invoice

Its purpose is to guarantee the buyer

the property of an acquired good.

Conditions:

It should be extended, at least by three.

specimens.

Its size and color are of free choice.

Consecutive numbering printed on the document, with its name and VAT.
broken down.

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Exercise No. 1

With the following information, extend Invoice No. 027.

Comerciante Vendedor : González y Pérez Ltda. Rut. 7.456.345-K

Address: J.J.Pérez 1056, Quinta Normal, Stgo.
Buyer: You.
Sales Conditions 50% cash, 50% credit with 12% surcharge
Detail of the merchandise:
A dining table..........$ 235,000.-
Six dining chairs...........$32,000 each.

Dispatch guide
It is extended when sending the merchandise to its destination.

It has the same format as the invoice, but it does not include VAT. Only unit prices are shown. It is stamped by the S.I.I.
for this reason, in case of loss of the invoice, it can be replaced.

Exercise No. 2

Extend the corresponding document.

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Debit Note

It is extended when the invoice, due to error or omission, was charged less.

It is used to account for VAT, it increases the VAT on the invoice.

Same characteristics as the previous documents.

It is legal with S.I.I. stamp, printed consecutive numbering, document name and itemized VAT.

Exercise No. 3

Al revisar la factura, González y Pérez LTDA. Detecta no haber cobrado por concepto de “Conducción” la
sum of $5,600.

Credit Note

It extends, when billing, due to error or omission, an amount has been overcharged. The VAT decreases.
invoice.

It has similar characteristics to the previous documents.

It includes VAT broken down, that is, separated from the Net Price.

Exercise No. 4

Ten days after issuing the invoice, a 12% surcharge is detected to have been charged.
committed 8%.

Extend the corresponding document.

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Group Exercise No. 5

Sales Merchant: You.

Buyer Your companion

Sales Conditions: 35% Cash with 10% Discount.

Credit balance with 12% surcharge.
Goods Detail :

12 double bed covers $28,500 each.

12 double bed sheet sets $19,200 each.
24 double bed blankets $12,400 each.
24 double bed blankets $12,400 each.
Transport $4,200

A week later, it is detected that 12 bedcovers have been charged instead of 15 purchased.
that must be paid at the moment.

IT IS REQUESTED

Extender: Dispatch Guide, Invoice No. 035 and Note of ....

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CHAPTER III / BANK DOCUMENTATION

MAIN DOCUMENTS

Check
Bill of exchange

Check

It is a written order directed against a Bank to pay its bearer all or part of the money.
existing in a Checking Account.

Types of checks

Bearer check: No phrase is crossed out. It can be cashed by anyone.

person who presents it at the bank.

Check to the order: The phrase 'or to the bearer' is crossed out. It must be cashed by its owner, without
embargo, this can be sold and transferred to another so that it can be presented to the bank.

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Special Crossed Check: It is the one that has two parallel lines on its front.
crossed. It should only be deposited. It can be: to the bearer, to the order or nominative.

With the same characteristics as the previous one, it carries the name of the Bank among the parallel lines where
must be deposited.

Crossed General Check: The phrases "or bearer" and "the order" must be crossed out. It can only be
Charge it to its owner. It is not endorsed.

Nominal Cheque: The phrases 'or bearer' and 'to order' are crossed out. It can only be
charged to its owner. It is not endorsed.

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 Group activity in classes

For each type of check, issue one in the name of

companion. Subsequently, collect, endorse, cross,
between groups the documents, supervised by the
teacher.

Exercises No. 6

a) For the cash payment of Invoice No. 027, issue a

nominative check

b) Extend check by Debit Note and Credit Note

Exercise No. 1.

c) For the cash payment of Exercise No. 2, Invoice No. 035, issue a check 'To the order', cross it.

d) Bearer cheque for Note ............. of exercise No. 2

Bill of exchange

It is a credit document.

Carries: merchant seller name; name of the person assuming the debt; payment due date;
Número de cuotas, valor cuota. Firmas: aceptación deuda y comerciante vendedor.

Exercises in classes

From Invoice No. 027, the credit accepted 2 promissory notes for 30 consecutive days each. Extend the first one.

From Invoice No. 035, the credit with three promissory notes at 35 consecutive days. Extend the second note.

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CHAPTER IV / INVENTORIES

INVENTORY EQUATION

Every company starts with an inventory, called INITIAL INVENTORY:

It is a detailed list of the assets and debts that the merchant has, and with which they start.
its commercial activity.

It is composed of ASSETS, LIABILITIES, and EQUITY.

THE FORMULA FOR THE EQUALITY OF INVENTORY IS:

Formula to calculate capital:

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Debts or LIABILITIES can be classified into:

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 THEORY OF CAPITAL INVARIABILITY

According to this theory, Capital must remain unchanged in order to determine its increase or decrease.
during an operational period of the company.

In this way, a company will be able to compare its Initial Capital with the Final Capital and determine if:

That is to say: Capital increases with profits; decreases with losses.

Since the Capital cannot vary, two types of accounts are enabled:

Of losses.
Of earnings.

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Exercise

Determine the equation of the

inventory of a company

2-Agosto-2000:
A merchant begins activities with the following
contributions:
Dinero en efectivo................................$ 4.500.000
A commercial property valued at ....... $3,200,000
A truck valued at............ $ 5,650,000

Letters for 50% debt truck

Three Letters in your favor, for $75,000 each

EQUALITY OF INITIAL INVENTORY

$ $

(Don't forget: Capital is Assets - Liabilities)

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 VARIATION OF INVENTORY EQUALITY

Exercise regarding the previous situation

Open a checking account at Banco de Chile with 75% of the cash.

Purchase goods for $1,870,000. Pays 50% with a check and the difference with promissory notes.
Pay a letter for the 25% truck debt, with a check.
They cancel a bill.
Sells goods for $370,000 in cash.
Deposit the cash from the sale plus 60% of the money that you have left in the cash register.

Development of the exercise

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By experiencing variations in the equality of inventory, we can observe that:

Every operation modifies, at least, two components of the equality.

When two asset values are involved, one increases, the other decreases.
When an asset value and a liability value intervene, both increase or decrease.
Capital experiences a change when there is a profit or an expense.

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CHAPTER V / THE ACCOUNT
It is a systematic grouping of credits and debits
related to a person or situation of the same
nature, which is recorded under a heading or title
that identifies them.

Example:
Income and cash outflows will be recorded in the
account called "Box". The funds that are deposited in
the Bank will be registered in Bank Account.

ACCOUNTING TREATMENT OF ACCOUNTS

It is represented by a schematic T that has two parts:

DEBE y HABER
Those are just conventional names to identify left and right.

must Bank of Chile NEWS

Positions 620 Fertilizers 85

180 120
60 114

Debits..... 860 Credits.... 319

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Concepts

a) The annotations recorded to the account are called charges.

b) The recorded annotations in the account are called credits.

c) The sum of the charges is called: debits

d) The sum of the payments is called: credits

e) The difference between debits and credits is called balance.

f) When the debits are greater, it is called a debtor balance.

g) When the credits are greater, it is called a creditor balance.

h) When debits and credits are equal, it is said that the account is balanced.

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 TECHNICALITY AND CLASSIFICATION OF ACCOUNTS

Asset Accounts
When they increase, they charge.
When they decrease, they are fertilized.

Liability Accounts
When they decrease, they charge.
When they increase, they are fertilized.

Income Statements
When there are losses, they are charged.
When there are profits, they are credited.

GAINS > LOSSES = EXERCISE PROFIT

GAINS <LOSSES = LOSSES OF THE EXERCISE

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 TYPES OF ACCOUNTS

Asset accounts Liability accounts

Box Suppliers
Bank (Current Account) Creditors
Accounts Receivable Letters Payable
Land Accounts Payable
Real Estate Social Security Institutions to be paid
Tools Bank Loan
Furniture and Utensils Taxes Payable
Machinery Single Tax
Facilities Withholding Tax
Goods Capital
Clients Salaries payable
Debtors Rentals to be paid
Personal Withdrawals VAT Tax Debit
Staff Advances
Letters in Collection
Actions
VAT Tax Credit

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 RESULTS ACCOUNTS

Loss Results Profit Results

General Expenses Sales

Salaries paid Interest charged
Social Laws Discounts Obtained
Taxes Paid Surcharges applied
Granted discounts Rents charged
Interest paid Salaries received
Cost of sales Fees charged
Paid rentals Rents collected
Surcharges Paid

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Asset accounts, if they have a balance, will always be Debit.

Liability accounts, if they have a balance, will always be Credit.

The Loss accounts will have a debit balance.

The profit accounts will have a credit balance.

ANALYSIS OF THE ACCOUNTS

Asset Accounts:

Box Cash
Bank Deposits and Transfers
Goods Items intended solely for sale
Customers They acquire merchandise on 'Simple Credit, without promissory notes.'
Personal Account Withdrawals in cash, check, or merchandise made by the owner.
VAT Tax Credit It is VAT. Paid on purchases for the business. It is recovered, as the Tax Authority
returns it.
Debtors They acquire other goods, not merchandise, on credit, without promissory notes.

Liability accounts:

Suppliers To those of us who buy merchandise, to the Simple Credit, without notes.

Creditors To those of us who buy other goods, with Simple Credit, without bills.

VAT. Tax Debit The VAT. Which is charged upon selling and must be returned to the Treasury.

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 CHART OF ACCOUNTS

It is the list of Accounts that a company has determined to use for the development of its processes.
countable, which will depend on the nature of the economic activities carried out." (E.g. It is not the
the accounting of a hospital is the same as that of a supermarket.

Requirements of the Chart of Accounts

1) It should be broad, in order to cover all the activities of the company.

2) It must be flexible, so that it can adapt to the evolution of the company.

3) From a formal point of view, it must have a numerical coding system for the accounts,
so that their identification by groups is easy.

Example:

1.000 ACTIVE (The account class)

1.100 Current Assets (The group)
1.110 Box (The account)
A sub-account

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 TRANSACTION ANALYSIS FRAME

NOTE: THERE MUST be EQUALS, they must add up to the same.

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CHAPTER VI / ACCOUNTING SYSTEM 'JOURNALIZER'
You must use the required Accounting Books or Records
by the Code in its Article 25, which says

Every merchant is required to keep, for their

accounting and correspondence

1.- JOURNAL BOOK

2.- GENERAL LEDGER OR CURRENT ACCOUNTS
3.- BOOK OF BALANCES
4.- LETTER COPYING BOOK (is located
currently out of use).

For them to have legal validity, these books must be

stamped by the Internal Revenue Service.

It is prohibited

Alterar el orden y fecha de las operaciones descritas, dejar espacios en blanco, hacer raspaduras o
amend, erase, tear pages or alter the binding.

The Book of Balances is called the BOOK OF INVENTORIES AND BALANCES:

The first accounting entry will be recorded here, which is the 'Initial Inventory of the Merchant, with its'
Assets and their Liabilities.

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 THE DIARY BOOK

It consists of two columns: DEBIT and CREDIT, which when summed, should always total the same.
responding to the accounting principle of DOUBLE ENTRY.

The entries recorded in this are called ENTRIES or ACCOUNTING ENTRIES.

Accounting entries

It is defined as the graphical representation of "Double Entry".

Characteristics:

a) Consecutive numbering; chronological date.

b) Debtor accounts (they are the ones that record "charges").
c) Creditor accounts (those that record "credits").
d) Cargos valorizados (Debe); Abonos valorizados (Haber).
e) Gloss: brief explanation of the commercial operation that is recorded.

Types of Seats

Simple entry: It consists of one debit account and one credit account.

Compound entry: One or more debit and credit accounts.

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Exercise

With the following information, record "Journal Entry"

The
trader starts activities with $1,570,000
in cash; furniture for $520,000; a
debt with letters for $250,000.

Open
a checking account with 80% of the cash

Purchase
goods for $1,680,000.- Cancels the
30% in cash with a check, the balance on Simple Credit, with a 7% surcharge.

Rent a commercial space, $300,000.- pay with check

Sells merchandise for $560,000.- cost price, with a 35% profit. They pay 20% at the
counted, the balance on simple credit with 8% surcharge.

Cancellation, electricity, water, telephone, $115,500.- with a check.

Sells merchandise for $618,000 at cost price, with a 40% profit. They pay 35% of it.
accounted, the balance with 10% surcharge in words.

Deposit the cash from the two sales.

Pay 25% of the initial debt with a check

Pay 30% of the debt for merchandise with a check.

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JOURNAL BOOK: AUGUST - 2000

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 GENERAL LEDGER

The transactions recorded in the Journal are

they transfer to the General Ledger.

This book is represented by a schematic.

each account has its Debit and Credit.

Function
Group the information and synthesize it, in such a way that
provide the necessary data for the preparation of the
Balance.

Operator

For each account:

What is recorded on the Debit side of the Journal is
record in the Debit of the Ledger.

What is in the Debit of the Daily Ledger is recorded at

News from the Mayor.

Once the transfers are made, the debits and credits are added up.

Then the balances are determined.

With this information, the Trial Balance and Balances will be prepared next.

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 BALANCE OF RECEIPTS AND BALANCES

It is also called, Trial Balance or Draft Balance. It is not required by the Service of
Internal Revenue.

Operational

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As we mentioned earlier, it is prepared with the information provided by the General Ledger, with the
Debits and Credits of each account and their respective balances.

When summing: The Debit and Credit columns will total the same.

The Debtor Balance and Creditor Balance columns will sum equally.

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Page 1 of 40
 BALANCE SHEET

It is a final financial statement that shows as of a certain date

determined the economic and financial situation of a
company.

Economic situation: The capacity that the company has

to generate profits.

Financial situation, understanding the capacity of the

company to timely settle its debts.

Forms of presentation of the Balance Sheet:

It is prepared on December 31 of each year. It is presented in two ways:

a) Tax Balance Sheet, known as 'Tabular' or '8-column'.

It is an Income Statement. Required by the Internal Revenue Service for payment purposes.
taxpayers. (Annual Income Tax Declaration).

Operatoria
It consists of eight columns:

The first four, valued, correspond to the Trial Balance and Balances (debits,
credits, debtor balance and creditor balance). ADD UP EQUALS TWO BY TWO.

The two following columns correspond to the Inventory, which are: ASSET and LIABILITY. These are recorded in them.
the corresponding balances depending on the type of account. THEY ADD UP TO UNEQUALS.

The last two columns correspond to RESULTS: LOSSES or GAINS. They are recorded
here are the corresponding balances. THEY DO NOT ADD UP.

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Se cuadra éste, determinando la diferencia entre ACTIVO y PASIVO y entre PÉRDIDAS y GANANCIAS,
the one that must be the same.

Finally, the result of this will be either Loss or Profit.

Exercise in classes

With the information provided in the Trial Balance and Balances, prepare the Balance Sheet.
General Tax Law

CLASSIFIED BALANCE SHEET

This is required by Circular No. 0239 of the Superintendence of Public Companies. This Balance
supports the accounting of societies.

Operator

Utiliza sólo dos columnas: ACTIVO y PASIVO

Asset Classification

Box.
Bank.
Merchandise.
VAT. Tax Credit.
Clients. Includes available accounts
Letters to Collect, others. immediate
Furniture and utensils.
Vehicles.
Facilities.
Machinery.
Tools. Accounts that record assets in use
Real Estate. administrative
Right of Keys.
Trademarks.
Patents, etc.

Intangible assets are registered

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Liability Classification

Suppliers.
Notes Payable.
Creditors.
VAT. Tax Debit.

Current Liabilities: Records debts due within one year from the date of Financial Statements.

Long-term liabilities: Includes debts with a maturity of more than one year from the date of the financial statements.
Financial

Assets: Records the capital, the reserves, plus-minus (+ -) results of the fiscal year: P.

Exercise:

Using the information from the Tax General Balance, prepare a classified balance.

CURRENT ASSET: CURRENT LIABILITIES

Box .................... $¨ Suppliers...........................$

Total Act. Circ. Total Current Liabilities

FIXED ASSET: LONG-TERM LIABILITIES

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