Running Head: AUDIT TRIAL REPORT

Decision Making in Accounting Assignment

Audit Trial Report

Name.

Institutional Affiliation.

Date.
AUDIT TRIAL REPORT 2

Table of Contents

Introduction......................................................................................................................................3

Adjusted Accounts Receivable....................................................................................................3

Adjusted Accounts Payables........................................................................................................4

Adjusted Trial Balance.................................................................................................................4

Discussions......................................................................................................................................5

Conclusion.......................................................................................................................................7
AUDIT TRIAL REPORT 3

Introduction

The major role of audit trial reports is to decentralize in the accounting workflow of

various transactions that have occurred in a firm. The assessment gives the reader various

transactions that have occurred during the 31st July 2020 period in the Metro Mapping Pty Ltd.

The company specialises in high resolutions aerial imagery and also aerial photography, site

surveying, mast photography and architectural visualisation. Its accounts receivables, the main

debtors of the company include: Belle Rural Property Pty Ltd, Dalby Site Surveying Pty Ltd and

Skymax Tour Pty Ltd whose totals amounts to $ 8,520 as at 31st July 2020. However, various

transactions occurred during the end year affecting the account receivables. Trade payables,

otherwise known as creditors, amount to $ 7,704 whose accounts payable were, AutoPilot

Services Pty Ltd, Fastcraft Technology Pty Ltd as well as Mission Visuals Pty Ltd.

I used Excel worksheet to account for every transaction that occurred during the day.

This affected the trial balance as well as the both the Account Receivables and Payables. Let us

have a look of the tables below showing the adjusted A/c Receivables and Payables as well as

the trial balance. The discussion showing the effect are further discussed below.

Adjusted Accounts Receivable.

Accounts Receivables
Belle Rural Property Pty Ltd 11,300.00
Dalby Site Surveying Pty Ltd 1,500.00
Client Aerial Photography 2,000.00
Skymax Tour Pty Ltd 2,220.00
Total 17,020.00
AUDIT TRIAL REPORT 4

Adjusted Accounts Payables.

Accounts Payable
AutoPilot Services Pty Ltd 3,590.00
Fastcraft Technology Pty Ltd 2,000.00
Mission Visuals Pty Ltd 2,352.00
Total 7,942.00

Adjusted Trial Balance.

  Debit Credit
Cash at Bank 19,233.00  
Accounts Receivable 17,020.00  
Prepaid Insurance 1,800.00  
Aerial Photography Supplies 4,125.00  
Aerial Photography Equipment: Original Cost 21,750.00  
Accumulated Depreciation – Aerial Photography Equipment   4,350.00
Accounts Payable   7,942.00
Wages Payable   2600
PAYG Withholding*   2,025.00
Loan Payable – Current   1,947.00
Tax Payable (GST Clearing) **   2,745.00
Loan Payable - Non Current   4,025.00
Share Capital   21,000.00
Retained Earnings   4,554.00
Service Revenue   18,840.00
Aerial Photography Supplies Expense 2125  
Depreciation Expense – Aerial Photography Equipment 35  
Insurance Expense 300  
Interest Expense 114  
Office Cleaning Expense 400  
Rent Expense 2,200.00  
Repair Expense 1,200.00  
Staff Training Expense   10,034
Utilities Expense 3,560.00  
Wages Expense 6,200.00  
  80,062.00 80,062.00
AUDIT TRIAL REPORT 5

Discussions

On the discussion part, I will majorly focus on each and every transaction that occurred

during the day. First and foremost, on 31st July Received cash of $1,500 as part payment on

account from Dalby Site Surveying Pty Ltd. This shows that the company received cash from one

of its trade receivables. The outward effect on trade receivables that one will less $ 1,500 from $

3,000 that had been recorded. ¿ 3,000−1,500. This gives the balance $ 1,500. To the Cash

Account on the trial balance, one should add the $ 1,500 showing an increase in cash balance.

On 31 July Received an invoice from AutoPilot Services Pty Ltd for $946 (including GST

$86) in relation to staff training expenses during July. The accounts payable on this day sent an

invoice to the company. An invoice is simple a statement from the creditor demanding for

payment. Therefore, we should add the $ 946 and less $ 86 for GST to the previous account

balance, since the GST tax was not affecting Metro Mapping Pty Ltd. That is:

¿ 2730+946−86

¿ $ 3,590

In regard to this, there is also an effect to the GST Account as the tax increased by $ 86.

On 31 July the manager of Highland Resort Groups advised by email that they wish to go

ahead with the quote from Metro Mapping Pty Ltd to undertake site mapping for its holiday

resorts. This is expected to generate approximately $22,000 (including GST $2,000) of annual

services. The effective date for services to start is 1 September, 2020. The transaction had no

effect on the trial balance as this was an advice. In assumption to this, no further details were

given whether Metro Mapping took the advice or not. Addition to this, The effective date for the

service was to start on September hence the transaction did not happen on July.
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On 31 July Paid Fastcraft Technology Pty Ltd $622 with cheque number 264. This had

an effect on the Account Payable. The company paid the creditor $ 622 hence we less the amount

to the original account balance. We also less the amount to the cash account in the trial balance.

On 31 July Prepared a quote for Skymax Tour Pty Ltd for $3,300 (including GST $300) for

outback photography services to be completed in Mission Beach in October 2020. The

transaction has no effect on the account receivable. This is because the company prepared a

quote notifying the debtor that there will be outback photography services on October. Therefore

there was no effect to the accounts.

On 31 July Invoiced Belle Rural Property Pty Ltd for aerial property photography

services, Invoice number BD48 for $8,800 (including GST $800).The effect on this transaction is

that the trade receivable increased by $ 8,800 les $ 800 for GST. The GST Tax account increased

by $ 800 as well. On 31 July Paid the monthly office cleaning expense with cheque number 265

for $440 (including GST $40). On this day, the office cleaning expense increased by $ 440,

hence we add the expense with this amount less the GST $ 40 amount. That is:

¿=440−40

We then add $ 40 amount to the GST Tax account.

On 31 July hired a new intern technician whose annual salary is $30,000 and who will

commence work on 15 September, 2020. This transaction affects no account. Since the hired

intern will commence work on September, the transaction will not occur on July hence will have

no effect. Aerial Photography Supplies on hand at 31 July total $2,125. This transaction affects

Aerial Photography Supplies hence the amount is added on the trial balance on account.

Depreciation on Aerial Photography Equipment is calculated using the Straight Line Method
AUDIT TRIAL REPORT 7

over 5 years with $0 estimated residual value. Round the amount of depreciation up to the

nearest whole dollar. Note that the calculation is for 1 month only (i.e. July depreciation). This

transaction affects depreciation for the equipment on the trial balance. Since the depreciation is

on straight line basis, the amount is obtained by subtracting the cost to the estimated residual

value and the amount divided by its useful life. That is:

2,215−0
¿
5

Since depreciation is focused on one month alone, the value is divided by 12 months. However,

the assignment allows us to round off the depreciation value to a whole dollar, hence we use the

ROUNDDOWN function in excel. The overall equation shall be:

¿ ROUNDDOWN (((D 21−0) /5)/12,0)

Conclusion

This paper has an extremely flexible standard log format that is portable and extensible.

By applying it to different formats of transactions involved, we have demonstrated its use.