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3. Finished products

3.1. Read the text.

Accounts in this section summarize data on the presence and movement of

finished products and goods for resale, as well as on the process of sale of these and other assets of the enterprise. Account 40 "finished products" summarizes data on the presence and movement of finished products. This account is used by enterprises in manufacturing industries.

Finished products acquired as completed items (which cost is not included in the cost of production of the enterprise), or as goods for resale are recorded in account 41 "goods for resale". Works done and services rendered for other entities are not recorded in account 40 "finished products". Actual expenditures in this case are written off from accounts of production expenditures directly to account 46 "sale of products (works and services)". Products subject to acceptance by the customer on site and not certified by an acceptance document, remain in work in process (unfinished production) and are not recorded in account 40 "finished products".

Finished products shipped or accepted by the customer on site are recorded as sold by writing them off from account 40 "finished products" to the debit of account 46 "sale of products (works and services)", provided the documents for these products have been received by the buyer (customer).

If the sales agreement stipulates that title and risks for goods sold will be transferred to the buyer at a point in time different from the time of shipment, the delivered products are recorded in account 45 "goods shipped". At the time of shipment, a credit entry is made in the credit of account 40 "finished products" and a debit in account 45 "goods shipped".

4. Production output (works and services)

4.1. Read the text.

Account 37 "production output (works and services)" summarizes data on articles produced, works accepted by the customer, and services rendered during the reporting period, and also deviations of actual production costs of such articles (works and services) from standard (planned) cost. This account is used when necessary.

The debit of account 37 "production output (works and services)" records the actual production cost of articles, works accepted by the customer, and services rendered (in correspondence with accounts 20 "basic production", 23 auxiliary production", 29 "subsidiary services").

5. Shipment of goods

5.1. Read the text.

Upon shipment of goods and presentation of collection documents to the buyer (customer), industrial enterprises make a credit entry in account 46 "sale of products (works and services)" and a debit entry in account 62 "settlements with buyers and customers" for the amounts invoiced. At the same time, the cost of the shipped goods, works and services are written off by crediting accounts 40 "finished products", 45 "goods shippod", 20 "basic production", 37 "production output (works and services)" and debiting account 46 "sale of products (works and services)".

Construction companies credit account 46 "sale of products (works and services)" to record the cost of completed construction or works fulfilled according to contracts and subcontracts. This cost is determined by documents which serve as a basis for payments to contractors or subcontractors (in conjunction with account 62 "settlements with buyers and customers"). The debit to account 46 "sale of products (works and services)" records the actual cost of delivered construction in conjunction with account 20 "basic production".

Design and research organizations credit account 46 "sale of products (works and services)" to record the contract (estimated) cost of preliminary estimate documents for fully completed operations accepted by customers (in conjunction with account 62 "settlements with buyers and customers"). The debit records the actual cost of such operations (in conjunction with account 20 "basic production").

Transportation and communication agencies credit account 46 "sale of products (works and services)" to reflect the sums accrued for services rendered (together with account 62 "settlements with buyers and customers" or 76 "settlements with various debtors and creditors"). The debits to this account record the actual expenditures for transportation and communication, and also expenses on dispatch and handling operations (in conjunction with account 20 "basic production").

The net amount from sales of products (works, goods for resale, services) is transferred monthly from account 46 "sale of products (works and services)" to account 80 ‘profit and loss’.