Our Lady of Good and Perpetual Help

Economics and Administration Orientation

ACCOUNTING INFORMATION SYSTEMS

Theoretical - Practical Booklet

Year 2021
4th Year ECO

Professor: Dr. Ivana Elizabeth Baratta

CONTENT PROGRAM

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2021 SCHOOL CYCLE

UNIT 1: “Accounting as an Information System”

➢ Introduction: Production factors; What are economic agents? Sectors of the economy;
Business concept; Types of companies; Capital of a company; Resources of a company.
➢ What is a system?
➢ What is an information system?
➢ What does an information system do?
➢ Information as a resource.
➢ Minimum requirements for good information.
➢ Phases prior to the formation of an information system.
➢ Elements of the Information System.
➢ Concept and purpose of Accounting.
➢ Basic functions of accounting.
➢ New conceptual framework of Accounting.
➢ Basic components of an Accounting System.

UNIT 2: “Registration Sources – Commercial Documents”

➢ Concept.
➢ Importance.
➢ Archive and conservation.
➢ Parts of a receipt.
➢ Invoice, Remittance, Purchase Order, Ticket, Debit Note, Credit Note, Receipt, Account
Summary, Promissory Note, Check, Deposit Slip, Plastic Cards, Automatic Debit,
Other forms of payment.

UNIT 3: “Heritage and Results”

➢ Concept of Heritage.
➢ Parts of the Heritage.
➢ Equity Equation.
➢ Concept of Accounting Account.
➢ Identification of the name of an account.
➢ Classification of Accounts.
➢ Parts of an account.
➢ Origin, movement and balance of accounts.
➢ Asset variations.
➢ Double Game.
➢ Account analysis.

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UNIT 4: “Accounting Records”

➢ Trade Books: concept and purposes.

➢ Daily Book.
➢ Inventories and Balances Book.
➢ General Ledger.
➢ Trial Balance of Sums and Balances.
➢ Simple seats.
➢ Composite seats.

UNIT 5: “Basic Financial Statements”

➢ Financial Statements.
➢ Financial Year.
➢ Statement of Asset Situation.
➢ Income Statement.
➢ Status of Evolution of Net Assets.
➢ Balance Sheet.

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UNIT 1: ACCOUNTING AS AN INFORMATION SYSTEM.

Introduction

Before addressing the topic of information, it is necessary to remember some concepts that
are related to this subject, especially if we take into account that we are going to consider
the importance that it has within the life of an organization.
A) Production factors.
There are four factors of production:
1) Nature: the set of pre-existing goods in the universe (water, land, air, minerals, etc.)
2) Work: man's effort aimed at obtaining or modifying goods.
3) Capital: goods used to produce other goods. It can be physical (use and capital
goods); financial (capital contributions and credits); or human (knowledge and skills of
staff).
4) The business attitude.

B) What are economic agents?

The company, within the economy of a country, is part of the economic agents, along with
families and the public sector. Economic agents are responsible for carrying out economic
activity, that is, activity whose purpose is to produce goods and services intended for
exchange.

C) Sectors of the economy.

There are three sectors in the economy that represent different economic activities:
1) Primary activities: groups extractive activities (agriculture, fishing and mining).
2) Secondary activities: include industry and construction.
3) Tertiary activities: representative of services, commerce and the financial sector.

D) Company concept.

From an economic point of view, a company is called an organization made up of people and
capital that coordinate the factors of production for profit. The main objective of a company

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is to obtain a profit, by satisfying the needs of goods and/or services of the demanders.
Any organization must constantly resolve problematic situations that arise and therefore the
people who manage them must continually make decisions. The problems to be solved may
come from the organization itself or from the external environment, because organizations
constitute an open system by interacting with the context that surrounds them and are
strongly influenced by it.
E) Types of companies.
According to the activity they carry out, companies can be classified into:
1) Productive companies: they are subdivided into extractive, rural and industrial.
2) Commercial Companies: Wholesale, retail (supermarkets, shops).
3) Service Companies: they provide services of different kinds (tourism, advertising,
telephony, transportation, etc.)

F) Capital of a company.
The capital of a company is made up of all the economic goods that are used for the
production of other goods, whether things or services. Capital, in combination with labor,
produces goods and services.
Production is the economic process that allows us to obtain goods and services.

G) Resources of a company.
The main resources of a company are:
1) Capital contributions made by partners.
2) Loans obtained from third parties.
3) State subsidies.
4) Company income: sales. This is considered the most important resource.

…And now, let's start developing the topic of Information Systems…

But first of all: What is a system?

A system is a set of interrelated elements that functions as a whole.
The word system comes from the Latin systēma, and this from the Greek σύστημα (systema)
, identified in Spanish as “union of things in an organized manner . ” Other words such as
antisystem or ecosystem are derived from this word.
The elements that make up a system can be varied, such as a series of principles or rules

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structured on a subject or theory. For example: a political system, an economic system or an
information system.

What is an information system?

An information system is a set of people, data and procedures that work together. Emphasis
is placed on the word system because the various components that make it up seek a
common objective to support the activities of the organization. These include the daily
operations of the company, the communication of data and reports, the administration of
activities and decision making.
Nearly 80% of a typical executive's day is dedicated to information (receiving it,
communicating it, and using it in a wide variety of tasks). Since information is the basis of
all the organization's activities, systems must be developed to produce and manage it. The
objective of such systems is to ensure that accurate and reliable information is available
effectively and efficiently.
Nowadays, technology has strongly impacted all aspects of our lives. And of course, it has
also done so with regard to the way in which information is prepared and communicated
within an organization. Therefore, it is a challenge to know how to make productive use of
the technological advances we have at our disposal.

What does an Information System do?

An information system performs three general activities:
- ) Receives data from internal and/or external sources of the company as input elements;
- ) It acts on the data to produce information, which means that it is a System that
generates information from different procedures that will determine how it is
prepared;
- ) Produces the information for the future user, who may be a manager, an
administrator, a member of the governing body or an external organization that
requires it.

Information as a resource.
Information is recognized as a resource for the organization. It has value because it
influences the way the company operates. Lacking vital information can cause managers to
make mistakes, miss opportunities, and face serious performance problems. Information
systems are also a resource. They increase the capacity of managers and workers, and make
it possible to achieve new levels of effectiveness and efficiency.
It is pertinent to keep in mind that information and information systems also produce costs.
That is, its development and use demand other resources.

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Because of the essential importance of information, steps must be taken to manage it in the
same sense that other resources must be controlled. This includes ensuring that information
is available when required, is reliable and accurate, and is developed economically, without
unnecessary repetition.
In a general sense, we can say that information is an organized set of data, which
constitutes a message about a certain entity or phenomenon that modifies the state of
knowledge of the subject or system that receives said message.

Minimum requirements for good information.

- It must be timely: it must be available at the time it must be used to solve a problem.
The information that arrives after the situation has occurred is NO longer useful to us.
- It must be true and approximate to reality: it must be true and reasonably represent the
phenomena that must be described.
- It must be useful: it must have the degree of analysis required by each level of the
organization.
- It must be complete: it must meet the needs of the users.
- There must be reliability in the system that generates it: from the collection of data, its
effective processing and the output of reports in a timely manner.

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 Information

Requires

Capture Process — Transmission Interpretation

Phases prior to the creation of an Information System.

From a specific activity, such as purchases, sales, production, etc., questions are raised that
facilitate the construction of the system, its previous phases being the following:
- Definition of information needs.
- Analysis of the data to be used.
- Data processing.
- Preparation of reports.

Elements of the Information System.

There are four elements that make up an Information System:
1) Personnel responsible for the collection, processing and storage of data.
2) Equipment that facilitates the collection, processing and storage of data.
3) Forms, records, disks, etc. that save the information.
4) Communication channels that carry information from the issuer to users.

Concept and purpose of accounting.

Accounting is a part of the company's Information System.

Accounting is a technique that records the commercial operations carried out by a company,
allowing it to know its assets and results.
The accounting information system allows knowing the assets of an organization and its
variations, controlling the development of the activity and measuring its results. It provides
information about the past, what is happening at this precise moment and what is projected
for the future.
The purposes of accounting then are:
1) Provide information and control regarding the company's operations for better
decision making.

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 2) Provide information to third parties that carry out operations with the company
(Clients, Suppliers, Banks, etc.).
Accounting records historically, accurately and faithfully all the commercial operations
carried out by the organization, classifying them correctly and recording them in a
methodical and justified manner in special books called "accounting books" and in
accordance with current laws, allowing in turn to obtain summaries of figures through
which, once analyzed, we will be able to appreciate the company's results in reports called
"Financial Statements" or "Accounting Statements".

accounting is

— > the classification

—> registration L,,
? of data
— > the benefit
— > the interpretation

and aims to:

z•
obtain provide

for _____________l
—> decision making
—> control
—> manage efficiently

Basic functions of Accounting

They are three:
- Arrangement of the data of the commercial operations carried out.
- Analysis and interpretation.
- Preparation of reports for internal use and for external users.
But what would be the reports for internal use?: The accounting system will provide
administrators with historical information, that is, from previously recorded operations and
also information about the future based on budgets, projection of operations, analysis and
interpretation of the statements. accountants, etc.
And the reports for external users?: Accounting reports (called financial statements) are
provided, respecting current exposure standards and valuation criteria.

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New conceptual framework of accounting.
Accounting is not only the recording of operations and economic facts. As a system, it also
includes:
- The methodology for data collection (recognition, classification and identification).
- Bookkeeping.
- The analysis and interpretation of information to plan the progress of the company
and control the proper execution of decisions.
The information gathered facilitates decision making and informs the choice you make.
implied the same.

Basic components of an Accounting System

The basic components of an Accounting System are:

1) Current Legal and Professional Standards: provide guidelines regarding the valuation
of assets components and results; and regarding the presentation of accounting reports
for use by third parties.
2) Resources: are the elements that are used to capture and process data. Among them
are: commercial documents, Accounting Books, new technologies and information
from the context.
3) Method: accounting uses the Double Entry method. It is the procedure used for the
registration of commercial operations.
4) Means: are the instruments chosen for recording operations (manual, semi-
mechanical, mechanical, electromechanical).
UNIT 2: REGISTRATION SOURCES – COMMERCIAL DOCUMENTS.

Concept.
Commercial documents are written records of commercial operations carried out.
Importance.
1) They leave a record of the operations carried out.
2) They individualize the people who intervene.
3) They are a means of proof against any problem that arises between the parties.
4) They support the accuracy of the operations recorded in the accounting books.
Archive and conservation.
5) People must request or retain proof corresponding to each operation they carry
out.
6) They must be accounted for and then filed in order of issue date.
7) By law, they must be kept for 10 years from the date of issue.

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Parts of a voucher.
1) Header
➢ Place, date and personal information of the buyer and seller.
➢ Name and receipt number.
➢ CUIT of the buyer and seller.
➢ Seller's Gross Income Number.
➢ Condition against VAT of the buyer and the seller.

2) Detail
➢ Literal and numerical description of the operation.

3) Delimitation of responsibility
➢ Signatures or initials of the people involved.
➢ Name of the printing company and CUIT of the same.
➢ Issue date and municipal authorization number of the company.
➢ From and until what No. the document was printed.
➢ Expiration date and print authorization code (CAI) for type A and B receipts.
Bill.
It is the document that the seller delivers to the buyer for the goods sold or provision of
services. It is issued in duplicate (at least). The original is for the buyer and the duplicate is
for the seller.
I refer.
It is the document prepared by the seller and accompanies the delivery of the goods sold. It
is issued in triplicate (at least). The original is for the buyer, the duplicate for the seller and
the triplicate for the carrier. This receipt shows that the merchandise was delivered and
received in accordance.
Purchase order.
It is the receipt issued by the buyer to order goods from the seller, indicating quantity,
details, price, payment conditions and delivery method. It is also known as Order Note. It is
issued in duplicate. The original is for the seller and the duplicate is for the buyer.
Ticket.
It fulfills the same function as the Invoice and is generally used in operations of small
amounts. It is issued by the seller through register machines and delivered to the buyer,
remaining in the machine's memory.
Debit note.
It is the receipt that the seller sends to the buyer to inform him that his debt has increased for
reasons such as: pricing error on the original invoice; interest for late payment, etc. It is
always related to a previous invoice.

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Credit note.
It is the receipt that the seller sends to the buyer informing him that his debt has been
reduced for reasons such as: pricing error on the original invoice; return of merchandise, etc.
It is always related to a previously issued invoice.
Receipt.
It is the proof that the seller sends to the buyer as proof of having received money, checks,
promissory notes or other securities. It is issued in duplicate (at least). The original is for the
buyer (the one who pays) and the duplicate for the seller (the one who collects).
Account summary.
It is a document sent periodically (monthly) by the seller to the buyer detailing the
operations carried out in a current account during the period.
If the account summary is issued by the bank regarding the operations carried out in the bank
account, it is also called a bank statement. It details deposits, withdrawals, expenses, and all
movements carried out.
I will pay.
It is the voucher by which one person undertakes to pay another a sum of money, within a
specified period. The person who agrees to pay is called the drawer, payer or signatory and
the person who will receive the money is called the beneficiary. It has a stipulated
expiration.
Check.
It is a payment order issued against a bank in which the drawer (who issues it) has funds
deposited in his or her bank checking account, from which the amount detailed in the check
will be deducted. The check authorizes the withdrawal of an amount of money stated in
writing.
Bank credit note or deposit slip.
It is the document that the bank delivers to its clients declaring that it has received money
(pesos or dollars), checks, money orders or other values as a deposit in a checking or savings
account.
Plastic cards.
The card is a non-transferable personal means of payment that can be used in the same way
as cash in stores participating in the service.
Automatic debit.
It is an operation that allows, with prior authorization from the client, for their invoices to be
automatically debited (collected) on the day they expire from their checking account, savings
account or credit card.

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Other forms of payment.
➢ Payment by ATM: this system allows a person who has a checking account, savings
account or credit card at a Bank to pay for their services from any ATM with their
debit card. As proof of payment, the cashier will issue the corresponding ticket.
➢ Internet payment: it is operated directly from a PC through the Internet, by entering the
homebanking system of your bank account.

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UNIT 3: HERITAGE AND RESULTS.

Heritage concept.
Equity is the set of economic assets, rights to collect and obligations to pay that a company
has.
➢ Economic goods: these are material or immaterial objects that have a monetary value
(cash, houses, cars, chairs, machinery, business keys, etc.).
➢ Rights to collect: are the credits in favor of the company expressed in money.
➢ Obligations to pay: these are the debts that the company must pay.

Parts of the Heritage.

➢ ASSETS: is the set of economic assets and collection rights that the company has.
➢ LIABILITIES: are the debts that the company must pay.
➢ NET EQUITY: is what arises from the difference (subtraction) between the ASSETS
and LIABILITIES of the company.

Equity equation.
CAPITAL or NET EQUITY = ASSETS - LIABILITIES
From the Net Equity formula, the ASSET AND LIABILITY formulas are derived, by
deduction:
ASSETS = LIABILITIES + NET EQUITY

LIABILITIES = ASSETS – NET EQUITY

Abbreviations:
➢ ACTIVE: A
➢ PASSIVE: P
➢ NET WORTH: PN
Concept of Accounting Account.
NO registration can be made in the Accounting Books without the fundamental element
that is the Account.

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An account is called the grouping of concepts with similar characteristics that make up the
assets and results of a company.
Identification of the name of an account.
Concept Account name
Cash Box
Checks received from third parties Values to deposit
Goods intended for the manufacture of Raw Materials
merchandise
Chairs, desks, machines of Furniture and supplies
writing, counters, photocopiers,
telephones, faxes, cell phones, etc.
Money deposited in bank checking Bank “x” Current Account
account
Vehicles, automobiles, trucks Rolled
People who owe us money in a Debtors for sale
checking account for sales of
merchandise or services that we made
People who owe us money in a Several debtors
checking account, except for sales of
merchandise or services
Promissory notes signed by third Documents to be collected
parties in our favor
Facilities
Shelves, illuminated signs, air
conditioning, ceiling fans, stoves,
doors, gates, telephone exchanges, etc.
Houses, local, land, Estate
departments, etc.
Machines in a workshop or factory Machineries
Goods intended for sale Merchandise
Computing team
Computers, scanners, printers, modem,
monitor, mouse, notebook, etc.
Promissory notes signed by us in favor Documents to pay
of third parties
People to whom we owe money in Various creditors
account current by loans
received or other reasons, except for
the purchase of goods or services
People to whom we owe money in a Suppliers
checking account for the purchase of
merchandise or services

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 Deferred checks to pay
Checks signed by us for third parties
Initial contribution from partners Capital
Revenue achieved by tasks Commissions Earned
commercials made for third parties
Low-cost expenses for stationery, General expenses
cleaning supplies, etc.
Amount that the merchandise he sold Cost of Goods Sold
cost the merchant
Earned interests
Interest that we charge to our clients for
late payments
Interest charged to us for our delays in Lost Interest
payments
Amount of the sale of merchandise or Sales
services that we carry out
Discount obtained on the purchase Discounts Obtained
price or on payments made
Reduction made to our clients in the Discounts assigned
sales price or in the payments they
make to us
Amount paid to third parties for Lost Commissions
commercial tasks they perform for us
Earned Rentals
Profit obtained from renting third-party
properties that we own
Expense paid to use and rent properties Lost Rentals
owned by third parties
Expenses paid for the transportation of Freight and haulage
merchandise or other goods, carried out
by a third party
Expenses for taxes paid to the state Paid taxes
(AFIP, Rents)
Amounts paid for electricity, gas, General services
water, etc. services
Salaries paid to employees of our Salaries and wages
company

Expenses paid for promotion and Lost Advertising

advertising of our products
Insurance subscribers by our Lost Insurance
company
Profit or Loss for the Annual Fiscal Result of the excersice
Year

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Classification of accounts.
Accounting accounts are classified into two large groups:
1) EQUITY ACCOUNTS: Within this group are the ASSET, LIABILITY and
NET EQUITY accounts.
2) INCOME ACCOUNTS: There are the Positive Results (Profits) and Negative
Results (Losses) accounts.
According to their classification, the accounts are grouped by item (Assets, Liabilities, Net
Equity, Positive Results and Negative Results) as indicated below:
ASSET EQUITY ACCOUNTS:
Box
Securities to Deposit
Bank “x” Current Account
Debtors for sale
Several debtors
Documents to be collected
Raw Materials
Merchandise
Furniture and supplies
Facilities
Machineries
Computing team
Rolled
Estate

PASSIVE
Various creditors
Suppliers
Deferred Checks to Pay
Documents to Pay

NET WORTH
Capital
Fiscal Year Results (Profit or Loss)

POSITIVE RESULTS (Profits)

Sales
Earned Rentals
Earned interests
Discounts Obtained
Commissions Earned
NEGATIVE RESULTS (Losses)

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 Cost of Goods Sold
Lost Rentals
Salaries and wages
Freight and haulage
Assigned Discounts
Lost Insurance
Paid taxes
Lost Interest
General expenses
Lost Commissions
Lost Advertising

Parts of an Account.
The parts of an account are:
3) Name: It is the element that allows each group of concepts to be identified.
4) Debit: It is the part of the account where the debits or items entered are
recorded.
5) Credit: It is the part of the account where the credits or items paid are
recorded.
6) Balance: It is the difference between the total Debit and the total Credit or vice
versa.
Origin, Movement and Balance of accounts.
1) ASSET Patrimonial Accounts:
➢ They are debited (DEBT) when they are born and when there is an increase in
ASSETS.
➢ They are credited (CREDIT) when there is a decrease in ASSETS.
➢ They have a DEBT balance

2) LIABILITIES Patrimonial Accounts:

➢ They are credited (CREDIT) when they are born and when there is an increase in the
LIABILITIES.
➢ They are debited (DEBT) when there is a decrease in the LIABILITIES.
➢ They have a CREDIT balance (CREDIT).

3) PN Patrimonial Accounts:
➢ They are credited (CREDIT) when they are created and when there is an increase in
the company's capital.
➢ They are debited (DEBT) when there is a decrease in Capital.
➢ They have a CREDIT balance (CREDIT).

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 4) NEGATIVE RESULT Accounts (Losses): ➢ They are debited (DEBT) when a loss
occurs. ➢ They have a DEBT balance.

5) POSITIVE RESULT (Profit) Accounts:

➢ They are credited (CREDIT) when a profit is produced.
➢ They have a CREDIT balance (CREDIT).

Heritage variations.
The different operations that produce changes in the composition of the Net Assets are
called Equity Variations.
The variations can be:
1) Permutative: These are commercial operations that DO NOT increase or decrease the
amount of Net Assets. In these operations, only A and P accounts are involved.
2) Modifying: These are commercial operations that increase or decrease the Net Asset
Value, caused by Profits or Losses, respectively.

Double match.
It is an accounting recording method that is based on the following principles:
➢ The total of the DEBT must be equal to the total of the CREDITS.
➢ Any concept that is debited (DEBT) for an account must be credited (CREDIT) for
the same account.

Account analysis.
See ANNEX I

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UNIT 4: ACCOUNTING RECORDS.

Trade Books: Concept and purposes.

They are special lined books that companies use to record their business operations,
allowing them to keep accounting in a uniform and organized manner. Their purpose is:
1) Written record of the operations carried out.
2) Record and control the increases, decreases and balances of the elements that make
up the assets.
3) Prepare the General Balance Sheet every year.
4) Be a means of information for third parties.
5) Allow correct compliance with tax obligations.

Diary book.
In this book all commercial operations will be recorded, day by day, in chronological order.
The accounting entries are recorded in it. They must be bound, numbered and initialed.
They are mandatory for regularly constituted companies.

Inventories and Balances Book.

In this book it is transcribed:
➢ The initial inventory.
➢ The financial statements carried out.
➢ The reports on the Financial Statements issued by the oversight body and the
accountant.
➢ The analytical details or inventories of the composition of the assets and liabilities
items, corresponding to the transcribed financial statements.
➢ The special information imposed by current laws.

Ledger.
It is the auxiliary book in which the debits, credits and balances of each accounting account
are passed according to the records in the Journal. This book provides complementary
information that allows us to know the movement of each of the accounts and their
balance.

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Balance check sums and balances.
It is an accounting statement where all the General Ledger accounts are recorded, with the
total sum of all their debits, credits and balances corresponding to each of them. It is the
starting point for preparing the General Balance Sheet.

Simple seats.
These are those entries in which two accounts are involved, one debited and the other
credited.

Composite seats.
They are those in which more than two accounts are involved, one or more debited and/or
one or more credited.

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UNIT 5: BASIC FINANCIAL STATEMENTS.

Financial Statements.
Financial Statements are a type of accounting report, intended mainly for external users,
through which the company makes its situation publicly known.
The Financial Statements show the patrimonial, economic and financial aspects of the
organization. There is a legal obligation to issue Financial Statements periodically and
there are special rules regarding the form of their presentation and the veracity of their
content.
The Financial Statements are also used by internal users in making decisions about the
course to follow and to control the management of the company.

Financial year.
The period of time for which the information is presented in the Financial Statements is
called a financial year. It has a start date and an end or close date. The duration of this
period and the start and closing dates will be determined by the social contract or statute of
the company.
Thus, the Patrimonial, Economic and Financial information of the company shown in its
Financial Statements will be limited to this period of time.

Statement of Asset Situation.

It exposes the financial situation of the company, that is, it shows the composition of the
company's assets at a given time: the closing date of the financial year.
For its exhibition, the heritage is arranged in a special way to facilitate its understanding.
This arrangement is done by grouping accounting accounts for a similar purpose, thus
creating functional groups of accounts (Cash and Banks, Exchange Assets, Credits, Fixed
Assets, etc.).

Statement of income.
Explains the economic situation of the company. It reflects the results obtained during a
certain period and the causes that generated that result.

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State of Evolution of Net Assets.
It allows you to see in more detail a portion of the company's financial situation: the
composition and evolution of the Net Worth accounts.

Balance sheet.
The Balance Sheet is an Accounting Statement that allows us to know the financial
situation of a company and its results.
➢ Asset Situation: shows the formation of Assets, Liabilities and Net Equity at the
closing date of the year.
➢ Economic Situation: shows the result of the year (loss or profit), allowing for its
correct distribution.
➢ Financial Situation: shows the solvency of the company and allows better decision
making.

CURRENT and NON-CURRENT

Current active
Cash and similar money, and assets that are converted into cash within 12 months of
closing. Includes:
1. Cash and Banks
2. Assets that are consumed within 12 months of closing.
3. Assets that will be converted to cash in 12 months.
4. Current assets that by contract law are intended to pay off current liabilities.
Non-current asset
The standard establishes it as everything that is not a current asset.
Current liabilities
That payable on the closing date, 12 months after closing and the provisions that become
certain liabilities within 12 months.
Non-current liabilities
The standard establishes it as everything that is not a current liability.
ASSET ITEMS
➢ CASH AND BANKS: includes cash accounts, banks, securities to be deposited,
foreign currency, etc. (the assets with the greatest liquidity).

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 ➢ INVESTMENTS: those placements that have the purpose of obtaining a profit at the
end of a specific period of time, such as, for example, Fixed Terms, Public
Securities, Foreign Currency (when they are conceptualized as an investment).
➢ CREDITS FOR SALES: those rights to collect, originated by sales made, such as,
Debtors for sales, Documents receivable, Delinquent debtors, Debtors in judicial
management.
➢ OTHER CREDITS: includes the rights to collect not incurred in sales, tax advances
and advance payments.
➢ EXCHANGE GOODS: Raw Materials, Merchandise, Products in Process, Finished
Products, Advances to Suppliers.
➢ USED GOODS: Real Estate, Vehicles, Machinery, Computer Equipment, Furniture
and Supplies, Facilities.
➢ INTANGIBLE ASSETS: Trademarks and Patents, Business Key, etc.
LIABILITIES ITEMS
➢ COMMERCIAL DEBTS: includes debts related to our suppliers, such as Suppliers,
Documents payable (for purchases from suppliers).
➢ FINANCIAL DEBT: These are related to debts incurred to obtain funds, such as
Loans obtained, Mortgage Loans, etc.
➢ SOCIAL DEBTS: includes those accounts payable related to the existence of
personnel in a dependency relationship, such as, for example, salaries to be paid,
social charges to be paid, etc.
➢ TAX DEBTS: includes those accounts payable for taxes and tributes, such as VAT
Payable, Income Tax Payable, Gross Income payable, etc.
➢ OTHER DEBTS: here those obligations to pay that CANNOT be classified within
the previous items are recorded.

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 UNIT 3 – ANNEX I
ACCOUNT ANALYSIS
Account It represents Classification - Movement
BOX The cash
Asset Asset
It is debited when cash is deposited.
It is credited when cash is withdrawn.
Debtor Balance : represents the money in
Cash.
VALUES TO Represents the Asset Asset
DEPOSIT checks we have in It is debited when we receive checks.
our portfolio It is credited when we deliver or deposit
checks.
Debtor Balance : represents the value of the
checks we have in our portfolio.
BANK “X” Asset Asset
CHECKING It is debited when we deposit in the Bank.
ACCOUNT It represents the It is credited when we issue checks with our
amount we have own signature.
deposited in our Debit Balance : represents the balance in our
bank account. bank account.
DEBTORS FOR Represents people
SALES or clients who owe Asset Asset
us verbally for term It is debited when we sell merchandise in
sales. installments.
It is credited when we collect all or part of
what we were owed for forward sales.
Debtor Balance : represents the amount owed
to us for forward sales.
DEBTORS It represents the Asset Asset
SEVERAL people who owe us It is debited when we are owed verbally (for
verbally and is not example, if we lend money).
for sales. It is credited when we collect all or part of
what they owed us.
Debtor Balance : represents the amount owed
to us verbally.
DOCUMENTS TO Represents Asset Asset
COLLECT promissory notes It is debited when we receive a promissory
signed by third note signed by third parties.
parties that have not It is credited when we fully or partially
yet been due for collect the promissory note or when we deliver
payment. it to another as part of payment. Debtor
Balance : represents the amount of promissory
notes receivable that have not yet expired.

RAW MATERIALS Represents goods Asset Asset

intended for It is debited when raw materials are
manufacturing. purchased.

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 It is credited when they are used for
production.
Debit Balance : represents the amount of raw
materials in stock.
GOODS It represents the Asset Asset
goods that are It is debited when merchandise is purchased.
intended for sale. It is credited when the cost of sales entry is
made.
Debtor Balance : represents the amount of
merchandise in stock.
FURNITURE AND It represents the Asset Asset
UTILITY furniture and goods It is debited when furniture is purchased.
we use for our It is credited when we sell them or they wear
company. out due to use.
Debtor Balance : represents the value of the
assets in existence.
FACILITIES It represents the Asset Asset
assets attached to It is debited when said goods are purchased.
the property and It is credited when we sell them or they wear
that we use for our out due to use.
company. Debtor Balance : represents the value of the
assets in existence.
MACHINERY They represent the Asset Asset
company's It is debited when said goods are purchased.
machines. It is credited when we sell them or they wear
out due to use.
Debit Balance : represents the value of the
machines in stock.
TEAMS OF Represents the Asset Asset
COMPUTING company's It is debited when said goods are purchased.
computers, It is credited when we sell them or they wear
hardware and out due to use.
software. Debit Balance : represents the value of the
equipment in stock.
ROLLING Represents Asset Asset
automobiles owned It is debited when said goods are purchased.
by our company. It is credited when we sell them or they wear
out due to use.
Debit Balance : represents the value of the
vehicles in existence.
ESTATE It represents the Asset Asset
properties of our It is debited when said goods are purchased.
company (land, It is credited when we sell them or they wear
premises, buildings, out due to use.
etc.). Debit Balance : represents the value of the
properties owned by our company.

CREDITORS It represents the Patrimonial of Liabilities.

SEVERAL people to whom we It is credited when we owe.
owe our word. It is debited when we fully or partially pay
what we owed.
Credit Balance : represents the amount of our
verbal debts.

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SUPPLIERS It represents the Patrimonial of Liabilities.
people we owe for It is credited when we purchase merchandise
purchases of or raw materials on term.
merchandise or raw It is debited when we fully or partially pay
materials. what we owed.
Credit Balance : represents the amount of our
debts for forward purchases of merchandise or
raw materials.
DEFERRED
CHECKS TO PAY Represents checks Patrimonial of Liabilities.
issued by our own It is credited when we issue the checks. It is
signature but with a debited we pay or cover the check. Credit
deferred payment Balance : represents the amount of deferred
date. checks issued from our own signature.
DOCUMENTS TO It represents the Patrimonial of Liabilities.
PAY promissory notes It is credited when we sign and deliver the
signed by us. promissory notes to third parties.
It is debited that we fully or partially pay the
promissory note when it matures.
Credit Balance : represents the amount of
debts with promissory notes not yet due.
CAPITAL It represents the Net Worth.
initial net worth of It is credited for the amount of A minus P or
the company and when capital contributions are made.
arises from the It is debited due to a decrease in capital.
subtraction between Credit Balance : represents the net worth of
Assets and the company at the beginning.
RESULTS It represents the
THE EXERCISE company's profits
and/or losses during Net Worth.
the year. It is credited when the exercise yields a profit.
It is debited when the year results in a loss.
Balance: it can be a debtor if the result was a
loss and a creditor if it was a profit.
SALES It represents the Of Positive Result.
amount of what we It is credited when sales are made.
sold. It is debited when merchandise is returned to
us or with the recast entry at the end of the
year.
Credit balance : represents the value of sales
made during the year.

RENTS EARNED Of Positive Result.

Represents the It is credited when the rent is collected.
amount we charge It is debited when the recast entry is recorded
third parties for the at the end of the year.
use of our Credit balance : represents the profit from
properties. rentals in our favor.
DISCOUNTS It represents the
OBTAINED reductions they give Of Positive Result.
us in the price It is credited when they give us the discount.

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 when we buy. It is debited when the recast entry is recorded
at the end of the year.
Credit balance : represents the gain from
discounts obtained in our favor.
COMMISSIONS Of Positive Result.
EARNED It represents the It is credited when the commission is
remuneration paid collected.
to us for services It is debited when the recast entry is recorded
provided in at the end of the year.
purchase and sale Credit balance : represents the profit from
operations. commissions in our favor.
COST OF It represents what
GOODS the merchandise we Of Negative Result.
SOLD already sold cost us. It is debited for the cost of goods sold.
It is credited when the recast entry is recorded
at the end of the fiscal year.
Debit Balance : represents the loss due to the
cost of the merchandise that was sold.
LOST RENTALS Of Negative Result.
It is debited when the rent is paid.
It represents the It is credited when the recast entry is recorded
value we pay for the at the end of the fiscal year.
use of goods owned Debit Balance : represents the loss from rent
by others. paid.
SALARIES AND It represents the Of Negative Result.
WAGES wages paid to our It is debited when salaries are settled.
employees for their It is credited when the recast entry is recorded
work. at the end of the fiscal year.
Debit Balance : represents the loss from staff
salaries.
FREIGHT AND It represents the Of Negative Result.
HAULAGE amount we pay for It is debited when freight is paid to third
transportation of parties.
goods. It is credited when the recast entry is recorded
at the end of the fiscal year.
Debit Balance : represents the loss from staff
salaries.

DISCOUNTS It represents the Of Negative Result.

ASSIGNED price reduction thatIt is debited when discounts are made to our
we make when clients.
selling. It is credited when the recast entry is recorded
at the end of the fiscal year.
Debit Balance : represents the loss due to
discounts granted.
INSURANCE Of Negative Result.
LOST It is debited when insurance expenses are
It represents the paid.
amount paid for It is credited when the recast entry is recorded
insurance policies. at the end of the fiscal year.

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 Debit Balance : represents the loss due to
insurance policy expenses.
BILLS Of Negative Result.
GENERAL It is debited when expenses are paid.
It represents low- It is credited when the recast entry is recorded
cost expenses for at the end of the fiscal year.
cleaning, Debtor Balance : represents the loss for
paperwork, utilities, expenses paid.
etc.
LOST It represents the Of Negative Result.
COMMISSIONS remuneration paid It is debited when commissions are paid.
to commission It is credited when the recast entry is recorded
agents or sellers. at the end of the fiscal year.
Debit Balance : represents the loss from
commissions paid.
LOST It represents the Of Negative Result.
ADVERTISING amount paid for the It is debited when advertising expenses are
promotion of our paid.
company and It is credited when the recast entry is recorded
products. at the end of the fiscal year.
Debit Balance : represents the loss from paid
advertising expenses.

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 EXERCITATIONS and PRACTICAL EXERCISES
1) According to what has been seen so far in Unit 1, summarize in three lines maximum
why the information is important.
2) List the minimum requirements for good information.
3) Briefly indicate what the concept of the company is.
4) It exemplifies five for-profit organizations and five non-profit organizations.
5) Mention three examples of internal users of accounting information and three external
ones.
6) What and what are the economic agents?
7) Complete the following sentence: Accounting is………
8) Explain in your own words the expression “information as a resource”.
9) Indicate whether the following statement is T or F and justify your answer: “Data and
information are synonyms.”
10)According to the activities mentioned, mark with an X as appropriate to the type of
company detailed:
ACTIVITIES INDUSTRIAL COMMERCIAL SERVICES

Churros for sale

Paper making

Dealership

Passenger transfer

ice cream factory

Computer repair

Language Institute

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 ❖ Exercise on Incorporation of Contents – Assets - Accounting Entries
Complete the following table, as appropriate:
Concept Accounting Category Has to To have
Cash Account
Box ASSET +A -TO
Goods for sale
Debts with Promissory
Checks received

Money deposited in
Bco. City in Cta.Cte.
Computers
Desks

Current account debts

Member contributions
Chairs and armchairs

Debts in Account Cte.

for purchasing shelves
Fabrics for the
manufacture of
merchandise

Machines for the factory

Rights to collect in
current account for sales
made
Printers and scanners
Stoves
Own truck
Own premises
Rights to collect with
promissory note
Debts on account Cte.
for purchase of
merchandise

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 ❖ Exercise on Incorporation of Contents – Accounting Entries

Accounting records the following operations:

1) The company begins its activities with the following: Efvo $ 100,000.-; Merchandise
$250,000.-; Promissory note debts $150,000.-; a truck $120,000.-; building
$350,000.
2) A cash sale is made for $80,000.- Cost of the operation $40,000.
3) A checking account is opened at Bco Río by depositing $10,000 in cash.
4) It is canceled with efvo. half of the initial debt.
5) The monthly rent of the premises for $4,000 is paid by check from our bank
account.
6) We sell merchandise on a current account for $250,000.-. Cost of the operation
$130,000.
7) Merchandise is sold for $90,000, half in a current account and for the other half they
sign a promissory note. Cost of the operation $55,000.
8) We bought 5 desks for $2,000 each, paying half in cash. and the other half signing a
promissory note.
9) We purchased merchandise in a checking account for $270,000.- In addition, we
paid $1,000.- in freight charges with a check from our bank c/c.
10) They pay us with third party checks the pending amount of the sale operation
of point 6).

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 ❖ TP Entries and Commercial Documents II Quarter

Accounting records the following operations:

1) The company begins its activities with the following: Efvo $ 200,000.-; Merchandise
$150,000.-; Bco Río Current Account $ 50,000.-; a truck $90,000.
2) Cash FD for $230,000.- Cost of sales of the operation $180,000.
3) RO for cash payment. of the monthly rent of the premises for $3,000.
4) For merchandise $250,000, paying half in cash. and the other half signing a
promissory note. Freight for the operation $600.- paying with a check from our
current bank account.
5) FD for $160,000.- in checking account. Cost of sales of the operation $95,000.
6) Original BD for opening a current account at Bco Galicia depositing $4,000.- in
cash.
7) Cash FD for $200,000.- Cost of sales of the op. $ 150.000.
8) RO for payment with efvo. the startup debt.
9) FO Goods in current account for $200,000.- In addition, we paid $700.- in freight
charges by check from our current bank account.
10) FO cashed Edenor service $ 850.-

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 ❖ TP Entries and Commercial Documents II Quarter

Accounting records the following operations:

1) The company begins its activities with the following: Efvo $ 50,000.-; Goods for
sale $150,000.-; Shelves $50,000.-; Debts in current account for the purchase of
Merchandise $ 100,000.
2) Cash FD for $180,000.- Cost of sales of the operation $145,000.
3) RO for cash payment. of the monthly rent of the premises for $4,500.
4) FO computer equipment $5,000, paying half in cash. and the other half signing a
promissory note.
5) FD for $145,000.- in checking account. Cost of sales of the operation $ 105,000.
6) Original BD for opening a current account at Bco Galicia depositing $5,000.- in
cash.
7) Cash FD with Promissory Note for $108,000.- Cost of sales of the op. $ 75.000.
8) RO for payment with efvo. the startup debt.
9) FO Goods for sale in current account for $180,000.- In addition, we paid $1,000.- in
freight charges by check from our current bank account.
10) FO cashed Telefónica service for the two-month period $ 1,550.-

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 ❖ Exercise Seats and majorization

Record the following operations in accounting and majorize each of the accounts,
determining its balance:
1) The company begins its activities with the following: Efvo $ 100,000.-; Merchandise
$150,000.-; Bco Río Current Account $ 20,000.-; a truck $70,000.-; Doc. to Pay
$50,000.
2) Cash FD for $120,000.- Cost of sales of the operation $80,000.
3) RO for cash payment. of the monthly rent of the premises for $2,000.
4) FO merchandise $150,000, paying half in cash. and the other half signing a
promissory note.
5) FO shelves $65,000.-, half in cash. and half with promissory note. Freight with
check from our account. Cte. Banking $500.-

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 ❖ Exercise on Content Incorporation – Majorization
From the following Daily Book, majorize each of the accounting accounts and determine
their balance:
Seat 1 HAS TO TO HAVE
100.000
Box (+A) 150.000
Goods (+A) 5.000
Banco Río Cta. Cte. (+A)
Doc. Payable (+P) Capital (+PN) S/ 50.000
Initial Inventory 205.000
Seat 2
80.000
50.000
80.000
50.000
Cash (+A) CMV (RN) Sales (RP)
Merchandise (-A) S/ FD
Seat 3
130.000
500
500
100.000
30.000
Goods (+A) Freight (RN) Box (-A)
Suppliers (+P) Doc. to Pay (+P) S/ FO
Seat 4
50.000
Doc. to Pay (-P) 50.000
Box (-A) S/ RO
Seat 5
Furniture and Supplies (+A) 30.000
Doc. to Pay (+P) 15.000
Box (-A) 15.000
S/FO
Seat 6
Box (+A) 120.000
Debtors for sales (+A) 80.000
CMV (RN) 100.000
Sales (PR)
Goods (-A) 200.000
S/FD 100.000
Seat 7
50.000
Suppliers (-P) Doc. Payable (-P) Cash (- 15.000
65.000
A) S/ RO

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 ❖ Exercise on Content Incorporation – Majorization
From the following Daily Book, majorize each of the accounting accounts and determine
their balance:
Seat 1 HAS TO TO HAVE
Box (+A) 150.000
Goods (+A) 250.000
Banco Río Cta. Cte. (+A) 5.000
Rolled (+A) 130.000
Doc. To Pay (+P)
Capital (+PN) 150.000
S/ Initial Inventory 385.000
Seat 2
180.000
150.000
180.000
150.000
Cash (+A) CMV (RN) Sales (RP)
Merchandise (-A) S/ FD
Seat 3
Goods (+A) 130.000
Freight (RN) 1.500
1.500
Banco Río Cta. Cte. (-TO)
80.000
Suppliers (+P)
50.000
Doc. to Pay (+P)
S/FO
Seat 4
Doc. to Pay (-P) 50.000
Box (-A) 50.000
S/ RO
Seat 5
25.000
Furniture and Supplies (+A) Doc. to Pay 20.000
(+P) Cash (-A) 5.000
S/FO
Seat 6
Box (+A) 150.000
Debtors for sales (+A) 100.000
CMV (RN) 150.000
Sales (PR)
Goods (-A) 250.000
S/FD 150.000
Seat 7
80.000
Suppliers (-P) Doc. Payable (-P) Cash (- 50.000
130.000
A) S/ RO

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ASSET
CURRENT ACTIVE
BOX AND BANKS
Cash, Bank x Cta Cte, Bank x Savings Bank, Securities to be deposited.
INVESTMENTS:
Fixed Terms, Public Securities, Foreign Currency (when they mature within the next
12 months).
CREDITS BY SELLS
Sales debtors, Documents receivable, Delinquent debtors, Debtors in judicial
management (when they can be collected within the next 12 months).
OTHER CREDITS
Tax advances and prepayments (when they can be collected within the next 12
months).
EXCHANGE REALTY
Raw Materials, Merchandise, Products in Process, Finished Products, Advances to
Suppliers.

NON-CURRENT ASSET
INVESTMENTS:
Fixed Terms, Public Securities, Foreign Currency (when they mature after the next
12 months).
CREDITS BY SELLS
Sales debtors, Documents receivable, Delinquent debtors, Debtors in judicial
management (when they can be collected after the next 12 months).
OTHER CREDITS
Tax advances and prepayments (when they can be collected after the next 12
months).
FIXED ASSETS
Properties, Vehicles, Machinery, Computer Equipment, Furniture and Supplies,
Installations.
INTANGIBLE GOODS
Trademarks and Patents, Business Key, etc.

PASSIVE
CURRENT LIABILITIES
COMMERCIAL DEBTS
Suppliers, Documents payable (due within the next 12 months).
FINANCIAL DEBTS
Loans obtained, Mortgage Loans, Bank loans (due within the next 12 months).
SOCIAL DEBT

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 Salaries to pay, Social Security contributions to pay, Unions to Pay (due within the
next 12 months).
TAX DEBTS
VAT Payable, Income Tax Payable, Gross Income payable (due within the next 12
months).
OTHER DEBTS
Miscellaneous Debts to Pay, Members to Pay (due within the next 12 months).

NON-CURRENT LIABILITIES
COMMERCIAL DEBTS
Suppliers, Notes payable (due after the next 12 months).
FINANCIAL DEBTS
Loans obtained, Mortgage Loans, Bank loans (due after the next 12 months).
SOCIAL DEBT
Salaries to pay, Social Security contributions to pay, Unions to Pay (due after the
next 12 months).
TAX DEBTS
VAT Payable, Income Tax Payable, Gross Income Payable (due after the next 12
months).
OTHER DEBTS
Miscellaneous Debts to Pay, Members to Pay (due after the next 12 months).

NET WORTH
Capital, Result for the Year (obtained from the difference between the profits and
losses for the year)

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