Gresik
B. Revenue and Expense Accounting Treatment
The problems faced by PT. Indo Zinc Diecasting Gresik is recognizing revenues and expenses that are lower than the revenues that should have been received and the costs that have been incurred, it turns out that there are some costs and revenues that have not been recognized.
To clarify the problem the data are presented as follows:
Revenue data on unrecognized sales for 2019:
No Information Amount
1 Asset Sales 3,932,346.82
Amount 3,932,346.82
Source: PT. Indo Zinc Diecasting
The Role of the Consistency Principle in Recognition of Income Method on the Income Statement at PT. Indo Zinc Diecasting in Gresik
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Page │508 Unrecognized cost data for 2019:
No Information Amount
1 Vehicle maintenance costs 2,350,666.32
Amount 2,350,666.32
Source: PT. Indo Zinc Diecasting
Revenues and expenses that have not been recognized by the company are due to the fact that cash has not been received from the debtor for the sale. This underpayment has also not been included in the accounts receivable account by the company. So that it causes unfairness to the financial statements prepared by the company.
From the data of PT. The Indo Zinc Diecasting mentioned above still cannot be said to be reasonable according to accounting standards, so the researchers conducted an analysis of company data so that they found accounts that had not been recorded by the company.
Recognition of costs on sales that have not been recognized is by making an adjusting entry. The adjusting entries for income and expenses are as follows:
a. Unrecognized sales revenue for 2019 Receivables (Sales) Rp3,932,346.82 2018 Profit Rp3,932,346.82
(to recognize unpaid 2019 revenue) b. Unrecognized expenses for 2019
Debt Rp 2,350,666.32
2018 Profit Rp 2,350,666.32
Table 1
PT.INDO ZINC DIECASTING
PROFIT LOSS STATEMENT WORKING PAPER
Account 2019 Adjustment After Adjustment
Sale Cost of goods sold
Gross profit OPERATING EXPENSES
Selling expenses Wages Sales Commission
Outstation TOTAL
General and Admin Expenses Wages
Delivery of goods
1,426,084,645.00 (839,239,411.56) 586,845,233.44
55,101,850.00 0.00 90,722,610.00 145,824,460.00
317,964,320.00 305,000.00
3,932,346.82
3,932,346.83
-
- - -
1,430,016,991.82 (839,239,411.56) 590,777,580.26
55,101,850.00 0.00 90,722,610.00 145,824,460.00
317,964,320.00 305,000.00
The Role of the Consistency Principle in Recognition of Income Method on the Income Statement at PT. Indo Zinc Diecasting in Gresik
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Page │509 Fuel, Parking, Toll
Kep. Office Vehicle Maintenance
Electricity Consultant Phone Severance pay Fees and Management
Inventory and Office Equipment Depreciation Vehicle Depreciation
Insurance Social Security Allowance Pension Contribution (JHT)
Income Tax Expense Miscellaneous expense
UN
TOTAL ADMIN AND GENERAL FEES TOTAL BUSINESS EXPENSES
OPERATING PROFIT OTHER INCOME (EXPENSES) Current Account Service Income
Rounding Other income Profit on Asset Sales Deposit Interest Income
Mrs. Bank Admin
OTHER INCOME(EXPENSES) – NET Net Profit Before Tax
Income Tax Expense NET PROFIT AFTER TAX
1,261,650.00 321,500.00
0.00 8,776,138.00 11,000,000.00
5,189,490.00 4,932,000.00 6230,500.00
0.00 33,713,094.70
1,064,499.96 9,714,543.40 5,952,782,00 66,000.00 2,103,850.00 5,660,650.00 414,256,018.06 (560,080,478.06)
26,764,755.38
5,421,193.61 (1,010,18)
7,350.00 7,665,338,69 43,320,547.94 (1,815,000.00) 54,598,450.07 81.363.175.45 (4,126,125.00) 77,237,050.46
- - 2,350,666.32
- - - - - - - - - - - - - 2,350,666.32 (2,350,666.32)
- - - - - - - - - (2,350,666.32)
1,261,650.00 321,500.00 2,350,666.32 8,776,138.00 11,000,000.00
5,189,490.00 4,932,000.00 6230,500.00
0.00 33,713,094.70
1,064,499.96 9,714,543.40 5,952,782,00 66,000.00 2,103,850.00 5,660,650.00 416,606,684.38 (562,431,144,38)
28,346,435,88
5,421,193.61 (1,010,18)
7,350.00 7,665,338,69 43,320,547.94 (1,815,000.00) 54,598,450.07 82,944,885.95 (4,126,125.00) 78,818,760.95
The Role of the Consistency Principle in Recognition of Income Method on the Income Statement at PT. Indo Zinc Diecasting in Gresik
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Page │510 Source: Researcher
The following is the income statement and balance sheet after being processed or adjusted by the researcher:
Table 2
PT. INDO ZINC DIECASTING
STATEMENT OF PROFIT LOSS (AFTER ADJUSTMENTS) DESCRIPTION
Net Sales Cost of goods sold
Gross profit OPERATING EXPENSES
Selling expenses Wages Sales Commission
Outstation TOTAL
General and Admin Expenses Wages
Delivery of goods Fuel, Parking, Toll
Kep. Office Vehicle Maintenance
Electricity Consultant Phone Severance pay Fees and Management
Inventory and Office Equipment Depreciation Vehicle Depreciation
Insurance Social Security Allowance
55,101,850.00 0.00 90,722,610.00
317,964,320.00 305,000.00 1,261,650.00
321,500.00 2,350,666.32 8,776,138.00 11,000,000.00
5,189,490.00 4,932,000.00 6230,500.00
0.00 33,713,094.70
1,064,499.96 9,714,543.40
145,824,460.00
1,430,016,991.82 (839,239,411.56) 590,777,580.26
The Role of the Consistency Principle in Recognition of Income Method on the Income Statement at PT. Indo Zinc Diecasting in Gresik
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Page │511 Pension Contribution (JHT)
Income Tax Expense Miscellaneous expense
UN
TOTAL ADMIN AND GENERAL FEES TOTAL BUSINESS EXPENSES
OPERATING PROFIT OTHER INCOME (EXPENSES) Current Account Service Income
Rounding Other income Profit on Asset Sales Deposit Interest Income
Mrs. Bank Admin
OTHER INCOME(EXPENSES) – NET Net Profit Before Tax
Income Tax Expense NET PROFIT AFTER TAX
5,952,782,00 66,000.00 2,103,850.00 5,660,650.00
5,421,193.61 (1,010,18)
7,350.00 7,665,338,69 43,320,547.94 (1,815,000.00)
416,606,684.38
(562,431,144,38) 28,346,435,88
54,598,450.07 82,944,885.95 (4,126,125.00) 78,818,760.95 Source: researcher
Table 3
PT. INDO ZINC DIECASTING BALANCE (AFTER ADJUSTMENT)
The Role of the Consistency Principle in Recognition of Income Method on the Income Statement at PT. Indo Zinc Diecasting in Gresik
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Page │512 FOR YEARS ENDED ON 31 DECEMBER 2019
ASSET CURRENT ASSETS
Cash and bank 1,568,895,044.81
Accounts receivable 78,887,846.33
Receivables employee 7,130,800,000
Supply 1,710,476,895.34
Prepaid expenses 4,272,033.49
Total Current Assets 3,369,662,619.97
NON-CURRENT ASSETS Fixed assets :
Acquisition cost 2,684,248,653.91
Accumulated depreciation (2,362,332,239.64) Book value
Total Non-Current Assets 321,916,414.27
TOTAL ASSETS 3,691,579,034,24
LIABILITY AND EQUITY CURRENT LIABILITIES
The Role of the Consistency Principle in Recognition of Income Method on the Income Statement at PT. Indo Zinc Diecasting in Gresik
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Page │513
Accounts payable 2,350,666.32
Tax payable 12,851,217.41
Accrued cost 10,075,437.00
Total Current Liabilities
EQUITY
Capital stock 3,000,000,000.00
Retained Earnings 664,720.033.01
Total Equity 3,664,720,033.01
TOTAL LIABILITIES AND EQUITY 3,691,579,034,24
Source: Researcher
The following is about the income and expenses received and actually incurred which are recorded. After that, it was analyzed and observed between income and costs, it turned out that there was a difference with the following details:
To clarify any changes after adjustment are presented:
1. Adjustment of accounts receivable balance 2019
Balance before adjustment Rp74,955,499.51
Adjustment Rp3,932,346.82
Balance After Adjustment Rp 78,887,846.33
3. Adjustments to the balance of accounts payable for 2019
Balance before adjustment Rp 0.00
Adjustment Rp2,350,666.32
Balance After Adjustment Rp2,350,666.32
4. Adjustment of 2019 profit account balance
Balance before adjustment Rp 77,237,050.46
Adjustment Rp 1,581,710,49
Balance After Adjustment IDR 78,818,760.95
Fromthe results of the adjustments that have been made, it can be seen the amount of income received and the amount of costs incurred as well as the actual net profit obtained. This is evident after adjusting for the following increases in revenues, costs and profits:
1. General and administrative costs amounted to 414,256,018.06 there was an adjustment of 2,350,666.32 and after adjustment it became 416,606,684.38
2. 2018 net profit
Net profit before adjustment was 77,237,050.46 there was an adjustment of 1,581,710.51 so that the number rose to 78,818,760.95
The Role of the Consistency Principle in Recognition of Income Method on the Income Statement at PT. Indo Zinc Diecasting in Gresik
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Page │514 From the above data, it can be clearly seen that the net profit of the business should be:
Net profit before adjustment Rp 77,237,050.46 Net profit after adjustment IDR 78,818,760.95
Unrecognized net profit Rp 1,581,710,51