Elements to check on a balance

What should we check on a balance sheet before submitting half-yearly accounting reports?

Companies that in the previous financial year had a turnover exceeding 220.000 lei are obliged to prepare accounting reports on 30 June 2018.

Elements you should check on a check balance sheet before making half-yearly accounting reports:

1. Closure of incomes and expense accounts - must not have final balances;

2. The closing of account 121 "Profit or loss" as the difference between Class 7 "Revenue Accounts" and Class 6 "Expenditure Accounts";

3. The balance of bank loans must correspond to credit maturities;

4. The balance of leases in leasing must correspond to the lease maturities;

5. The debit balance of Class 2 "Assets Accounts" shall correspond to the value of the Fixed Asset Register assets;

6. The credit balance in Class 2 "Assets Accounts" shall coincide with the cumulative depreciation in the Fixed Assets Register;

7. The balance of inventory accounts shall be equal to the value of inventories in management (balance of stocks);

8. Account balances 4111 "Clients" and 401 "Suppliers" must correspond to the non-invoiced / unpaid invoice;

9. The balance of account 421 "Personal-wages due" must be equal to the salary to be paid the next month (from salary state);

10. The balance of wage bill accounts must be equal to the value in the Declaration 112 or 100 (if the company paid all the salary contributions on time);

11. Closure of VAT accounts: Accounts 4426 "Deductible VAT" and 4427 "VAT collected" must have a balance of 0, and the difference between the two accounts results in the payment of VAT (account 4423) or to be recovered (account 4424);

12. Verify that all transactions between affiliated parties (financial / trade receivables / debts) have been recorded in account 451 "Disposals between Affiliated Entities";

13. The balance of account 471 "Advance Expenditures" must correspond to the amount in the detailed ratio of the expenses the company has made in advance;

14. Account balance 473 "Disposals of operations under clarification" - is an account in which amounts are provisionally recorded. The amounts must be clarified within a maximum of three months from the date of the finding;

15. The account balance 581 "Internal Payments" must be equal to 0;

16. The account balance 531 "Petty cash" must correspond to the amount in the cash register and in the cash register and have no creditor balance;

17. The balance of accounts 5121 "Accounts with banks in lei" and 5124 "Accounts with banks in foreign currency" must correspond to the balance on the bank statements on 30.06.2018;

18. Revaluation of foreign currency balances;

19. The calculation of the profit / income tax on microenterprises was calculated and recorded in the accounting.

Check if the balance is complete and all the documents have been recorded during the reference period.

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