ASIENTO DE CIERRE ✅ | Ejercicio [Parte 3] | Curso Contabilidad Básica #9

Liquidation of VAT and Final Balance in Accounting

Overview of the Video Series

• The video is the third and final part of an accounting exercise series, covering initial balance sheets, journal entries, and inventory adjustments.

• It will address VAT liquidation, trial balances, expense and income regularization, closing entries, and the final balance sheet.

• Viewers are encouraged to watch all three videos sequentially for a complete understanding of the accounting cycle.

Liquidation of VAT

• The liquidation process involves calculating the difference between collected VAT (repercutido) and paid VAT (soportado).

• This liquidation occurs quarterly; this video focuses on the fourth quarter's calculations.

• Viewers can request a more detailed video on VAT liquidation through comments.

Journal Entries for VAT

• The account 472 (VAT supported) shows a debtor balance of €866.04; this amount is recorded in the journal entry.

• To settle accounts, this value is placed in credit despite being a debtor balance to clear it out effectively.

Closing Entries for VAT

• For collected VAT (repercutido), a creditor balance of €10,710.53 is also recorded in credit during liquidation.

• The difference between collected and paid VAT results in an amount (€800.44.49), which is noted as payable to tax authorities under account 4.750.

Finalizing Accounts

• After completing these entries, both supported and collected VAT accounts should show zero balances when preparing the final situation balance sheet.

• Only account 4.750 remains open as a current liability reflecting what needs to be paid within one year.

Trial Balance Verification

Purpose of Trial Balance

• The trial balance checks for errors in journal entries or data transfers to the ledger by calculating account balances.

Important Considerations

• Accounts with zero balances will not be included in the final balance sheet since they are considered settled.

Regularization of Expenses and Income

Process Overview

• Regularization involves transferring balances from expense (group six) and income accounts (group seven) into account 129 (result from operations).

Determining Financial Outcome

• This process helps determine if there were losses or profits during the period based on whether expenses exceeded income or vice versa.

Journal Entry Mechanics

• All creditor balances from expense/income accounts are recorded as debits while account 129 receives corresponding credits summing up those amounts.

Additional Steps

• A separate entry records all debtor balances similarly but reverses their placement: they go into credits while still affecting account 129’s total outcome.

Understanding the Allocation of Benefits in Accounting

Allocation of Benefits to Equity Accounts

• The process involves transferring a creditor balance to account 112, which reflects benefits in equity. This is necessary as exercise results cannot directly appear on the final balance sheet; they must be allocated based on their intended use.

Legal Reserves and Their Importance

• The benefits are placed into account 112, designated as legal reserves. These reserves are set aside for future exercises and are reflected in the net equity section of the final balance sheet.

Closing Remaining Accounts

• After closing accounts from groups six and seven, attention shifts to balance accounts (groups 1 to 5). The next step is executing the closing entry to finalize all remaining accounts in the ledger.

Finalizing Balance Sheet Entries

• In preparing the final balance sheet, debtor accounts are recorded on one side while creditor accounts, including account 112 with a creditor balance, are noted on the opposite side. This ensures all accounts reflect a zero balance post-closing.

Structure of Final Balance Sheet

• The final balance sheet will categorize assets into current and non-current sections. Similarly, liabilities will be divided into current and non-current categories within net equity and liabilities sections.

Engagement with Viewers and Community Feedback

Encouragement for Viewer Interaction

• The speaker invites viewers to leave comments regarding any questions or doubts they may have. This interaction not only aids individual understanding but also helps others who might share similar queries.

Appreciation for Subscriber Support

• Acknowledgment is given for reaching 300 subscribers, highlighting how viewer feedback motivates continued content creation. Each comment contributes positively towards producing more diverse and useful accounting material.

Looking Forward to Future Content