FINANCIAL ACCOUNTING AND

REPORTING

LEARNING MODULE: Reconstruction of Accounts

Judith P. Piamonte
Instructor I/ Designated Accounting Staff for Tax Concerns
Partido State University

2020-2021
LEARNING MODULE: Reconstruction of Accounts 2020-2021

COLLEGE OF BUSINESS AND MANAGEMENT

MODULE 17 - Reconstruction of Accounts
Name Of Student: Week Number: 15-16
Course Code:AEC2 Name of Faculty: Judith P. Piamonte
Course Title: Financial Accounting and Reporting

I. OBJECTIVES:

At the end of this lesson, the students should be able to:

1) Know the different conditions regarding reconstruction of accounts

2) Solve problems for entity with incomplete records

II. LESSON:

If the company is using the single entry method of bookkeeping, there is a need to
reconstruct the incomplete records before the financial statements can be prepared. The
different items in the Statement of Comprehensive Income / Income Statement (Revenue and
costs) can be computed from the incomplete records as follows:

//jppiamonte –Financial
Financial Accounting and Reporting Page 2 of 7
LEARNING MODULE: Reconstruction of Accounts 2020-2021

The Statement of Financial Condition items not determinable from the incomplet
incomplete records may be
computed as follows:

a) CASH – this can be determined through cash count and by looking at the bank statement.
b) NOTES and ACCOUNTS RECEIVABLE – this can be determined by summarizing the uncollected
sales invoices and the confirmed promissory notes of the customers.
c) INVENTORY and SUPPLIES ON HAND at the end – this can be determined by physical count. To
check the accuracy of the count:

Beginning inventory
Beginnin Pxxx
Add: Purchases xxx
Less: Sales (in the case of inventory) or
Used (in the case of supplies) xxx
Ending inventory Pxxx

d) PROPERTY and EQUIPMENT – this can be determined by looking at the deed of ssale ale and other
documents evidencing ownership.
e) NOTES and ACCOUNTS PAYABLE – this can be determined from summarizing the unpaid
invoices and the confirmed promissory notes given to the suppliers.
f) OWNER’S EQUITY OR CAPITAL – this can be determined by subtract
subtracting
ing the assets and liabilities
as of any given date.

Illustration 1:

//jppiamonte –Financial
Financial Accounting and Reporting Page 3 of 7
LEARNING MODULE: Reconstruction of Accounts 2020-2021

Solution 1-a - Net Incom

me Computation

Solution 1-b - Computattion of Gross Sales

//jppiamonte –Financial
Financial Accounting and Reporting Page 4 of 7
LEARNING MODULE: Reconstruction of Accounts 2020-2021

Solution 1c - Computatio
on of Gross Purchases

Solution 1d - Computatiion of Interest Expense

Solution 1e - Computatiion of Rent Income

Solution 1f - Computatio
on of Gain on Sale

Solution 1g - Computatiion of Expenses

Solution 1h - Computatiion of Depreciation Expense

//jppiamonte –Financial
Financial Accounting and Reporting Page 5 of 7
LEARNING MODULE: Reconstruction of Accounts 2020-2021

Solution 1i – Statement of Comprehensive Income (Functional)

Solution 1J – Statementt of Financial Condition

III. ACTIVITIES:

Using any reliable reference materials that you have, practice solving problems related to
Reconstruction of accoounts.

Practice by answering the following problems. You may use MS Word, MS Excel, or a clean
sheet of paper for your answers.

//jppiamonte –Financial
Financial Accounting and Reporting Page 6 of 7
LEARNING MODULE: Reconstruction of Accounts 2020-2021

IV. ASSESSMENT:

If you have your laptop/computer, you may use MS Excel for this part. If you cannot do it in
MS Excel, put your answers on clean sheets of paper, take photos of them, and submit your
output via Google Classroom.

V. REFERENCES:

Ampongan, O. E., Fundamentals of accounting, part 1

Valix, C.T., Peralta,J.F., Valix, C.A.M.(2015). Financial accounting volume 1 & 2 2.GIC Enterprises &
Co., Inc.
Ballda, W., & Ballada, S. (2020). Accounting fundamentals (6th ed.).
Ballada, W., &Ballada,
Ballada, S. (2016). Basic accounting made easy
easy.
Onsay, Emmanuel A., Chavez, Rosalie V., (2019)Fundamentals
(2019)Fundamentals of Accounting for Non Non-Accountancy
Students Instructional Material ParSU
Abner, Rina A., (2020)Financial
(2020)Financial Accounting and Reporting Students Instruction
Instructional Material ParSU

Prepared by: Reviewed by: Approved:

JUDITH P. PIAMONTE ROLAN JON GO BULAO, MA RINA A. ABNER, CPA, MBA, MSA
Faculty Program Director Dean

//jppiamonte –Financial
Financial Accounting and Reporting Page 7 of 7