Quintana Roo Polytechnic University

Goods
General
Financial Accounting
Nahuat Chimal Francisco Javier &
Sierra Llanes Oscar

12
 OBJECTIVE

Provide students with knowledge for the correct use of techniques.

Exposed as well as promoting the proper education so that in the future

The student can perform these skills with dexterity and ease.

In a work environment
 General Merchandise
This method consists of recording all operations.
of goods in a single account
Which opens under the name of General Goods

General Merchandise
At the beginning of the exercise:
Sales
Initial Inventory
(At sale price)
(At cost price)
Returns about
Purchases
purchases
(At acquisition cost)
(At Acquisition Price)
Purchase Expenses
Discounts on
Returns on purchases
sale
Discounts on sales
 General Merchandise
The movement of this account is Heterogeneous because it records concepts at price of
cost and at selling price, so it has no significance, as it does not represent the cost
of the final inventory nor the gross profit or loss; the movement of the account is heterogeneous due to
that your balance does not represent any significance; it is said that your balance is mixed, that is to say of Asset and
Results
At the end of the exercise, it is it is necessary to separate from the general merchandise account
the movement of Assets in the Income Statement for its balance to show the Gross Profit and Loss

Disadvantages of Global Procedure

The amount of sales, purchases, and purchase expenses cannot be known separately.
the Returns and Discounts on purchases and sales; for being in the same
account
This makes it difficult to prepare the Profit and Loss Statement.
The value of the final inventory of goods cannot be known.
It is not possible to discover if there have been thefts, losses, or errors in the handling of
the goods
A physical count must be carried out, which generates losses because the company has to
close to carry out an inventory
The cost of goods sold and the gross profit or loss cannot be quickly determined.
as long as the final value of the inventory is not known.

General merchandise account movements

Initial inventory. The initial inventory is loaded because it represents an Asset and, according to the rules
Established, every asset must begin with a debit.

Purchases. Purchases are charged because when buying goods, the Asset increases and, according to the
rules, every increase in Assets is charged.

Gastos [Link] gastos de compra se cargan, porque los gastos disminuyen el Capital y, de acuerdo
According to the rules, any decrease in capital is charged.

Returns on sales. Returns on sales are charged, because when merchandise is returned to us,
The Asset increases and, according to the rules, any increase in the Asset is charged.

Sales discounts are charged to reduce Capital and, accordingly

With the rules, any reduction of Capital is charged.

Sales. The sales are credited, because when selling goods, the Assets decrease, and according to
The rules, any decrease in Assets is credited.

Returns on purchases are credited because, when returning

Merchandise decreases the Asset and, according to the rules, any decrease in the Asset is credited.

Discounts on purchases are credited because they increase capital and,

Agreement with the rules, all increases in Capital are settled.
Example of the practice of a Merchandise account
Generals
The entity started a business with $200,000 in cash and $800,000 in merchandise.
# Concept Cargo Fertilizer
1 Box $200000

Initial Inventory 800000

M.G (Initial Inventory) $1000000

The company sold merchandise for $700,000 of which half was paid in cash and the
the rest they owed him
# Concept Cargo Fertilizer
2 Box 350000
Clients 350000
M.G (Sales) 630630.64
VAT payable 69369.36

Customers returned merchandise worth $50,000

# Concept Cargo Fertilizer
3 M.G (Returns on sales) 45045.04
VAT payable 4954.96
Customers 50000

The company granted discounts on sales to customers for $5,000

# Concept Cargo Fertilizer
4 M.G (Discounts on sales) 4504.5
VAT payable 495.5
Clients 5000

The company purchased goods on credit for $150,000

# Concept Cargo Fertilizer
5 M.G (Purchases) 135136.13
Creditable VAT 14864.87
Suppliers 150000

The purchases incurred expenses of $20,000 that we paid in cash.

# Concept Cargo Fertilizer
6 M.G (Purchase Expenses) 18018.01
Creditable VAT 1981.91
Box 20000

The company returned merchandise worth $70,000 to the suppliers.

# Concept Cargo Fertilizer
7 Suppliers 70000
M.G (Returns on purchase) 63063.06
Tax creditable VAT 6936.94

The suppliers granted us discounts on purchases amounting to $15,000.

# Concept Cargo Fertilizer
8 Suppliers 15000
M.G (Discounts on purchases) 63063.06
Creditable VAT 6936.94

Inventario Final: Según el recuento de las mercancías practicado hasta la fecha es de: $550000
# Concept Cargo Fertilizer
9 Inventories 550000
M.G (Final Inventory) 550000
 Box Clients
1) $200,000 6) $20,000 2) $350,000 $50,000

2) $350,000 4) $50,000

Capital Suppliers
1,000,000 7) $70,000 5) 150,000

8) $15,000

General Merchandise
Initial Inventory:
$800,000 Ventas: $700,000
Returns on sales:
50,000 Devoluciones sobre ventas: 70,000
Sales Discounts:
5,000 Discounts on purchases 15,000
Purchases:
150,000 Final Inventory 550,000
Purchase expenses:
20,000
1,025,000 1,335,000

Until after the adjustment with the final inventory

We can see that;

Our net sales are: $645,000

Compras totales: $170,000
Mercancías Totales: $885,000
Cost of goods sold: $335,000
Utilidad Bruta: $310,000

(Net sales = Sales - Returns and Discounts on sales)

Compras Totales= Compras + Gastos de compras
Compras netas= Compras totales–Devoluciones y Rebajas sobre compras
Total de mercancías= Compras netas + inventario inicial
Cost of goods sold = Total merchandise - Ending inventory
Gross Profit or Loss = Net Sales - Cost of Goods Sold
As can be seen, all the concepts that appear in the Merchandise account
General, correspond exactly to those that appear in the first
part of the income statement,
The General Merchandise account, after being adjusted, becomes
in the income statement, as its balance reflects profit or loss
The balance of the General Merchandise account represents profit when its balance
it is creditor and loss when its balance is debtor
The entry we must make to transfer the balance of the Merchandise account.
The following is the General to Losses and Gains:

10 General Merchandise (Gross Profit) $310,000

Profits and losses $310,000

After this entry, the General Merchandise account and the Losses account
profits must appear in this way:

General Goods
Initial Inventory:
$800,000 Ventas: $700,000
Returns on sales:
50,000 Devoluciones sobre ventas: 70,000
Discounts on sales:
5,000 Discounts on purchases 15,000
Compras:
150,000 Final Inventory 550,000
Purchase expenses:
20,000 1,335,000

Gross Profit 310,000

1,335,000

Losses and Gains

10) Utilidad Bruta 310,000