Pending allocations: The accountant's catch-all
Posted: Sun Dec 15, 2024 6:04 am
According to the RAE, a messy drawer is a set of diverse and disordered things. That is exactly what can be found in many accounting records, if you analyze the book of account 555 of pending items .
With regard to accounting account 555 of pending application items, it is worth highlighting the following:
Good accountants have the magic to make the ledger entries in this accounting account disappear.
In poorly maintained accounting, outstanding items can grow and create significant distortions in a company's accounting.
As far as possible, no entries should be recorded in this account.
If accounting entries are made in account 555, it must be reviewed periodically to assign each accounting item to its correct account.
Before closing the financial year, we must try to ensure that accounting account 555 has a zero balance.
Start of marked textTWEET IT! Learn how to manage pending appropriation items. Don't make the accountant's junk drawer mistake.End of marked text
1) What are pending application items in accounting?
The General Accounting Plan defines them as:
remittances of funds received insurance email list whose cause is not, in principle, identifiable ,
and provided that they do not correspond to operations that by their nature should be included in other subgroups.
The items pending application are recorded in group 5 of the General Accounting Plan:
Within this group, they are classified in subgroup 55 of other non-bank accounts.
Your accounting record must be made in accounting accounts that begin with 555.
This account will appear in the current liabilities section of the balance sheet and will be debited when applying the outstanding items . The credit will be made to the corresponding account.
2) How long can accounting entries remain pending application in account 555?
The PGC specifies that entries in this account should only remain recorded for as long as strictly necessary. Therefore, the periodic review and application of entries in account 555 should be a periodic task for accountants. It is best to apply all accounting entries correctly at the time of accounting and for this account to not reflect any movements.
With regard to accounting account 555 of pending application items, it is worth highlighting the following:
Good accountants have the magic to make the ledger entries in this accounting account disappear.
In poorly maintained accounting, outstanding items can grow and create significant distortions in a company's accounting.
As far as possible, no entries should be recorded in this account.
If accounting entries are made in account 555, it must be reviewed periodically to assign each accounting item to its correct account.
Before closing the financial year, we must try to ensure that accounting account 555 has a zero balance.
Start of marked textTWEET IT! Learn how to manage pending appropriation items. Don't make the accountant's junk drawer mistake.End of marked text
1) What are pending application items in accounting?
The General Accounting Plan defines them as:
remittances of funds received insurance email list whose cause is not, in principle, identifiable ,
and provided that they do not correspond to operations that by their nature should be included in other subgroups.
The items pending application are recorded in group 5 of the General Accounting Plan:
Within this group, they are classified in subgroup 55 of other non-bank accounts.
Your accounting record must be made in accounting accounts that begin with 555.
This account will appear in the current liabilities section of the balance sheet and will be debited when applying the outstanding items . The credit will be made to the corresponding account.
2) How long can accounting entries remain pending application in account 555?
The PGC specifies that entries in this account should only remain recorded for as long as strictly necessary. Therefore, the periodic review and application of entries in account 555 should be a periodic task for accountants. It is best to apply all accounting entries correctly at the time of accounting and for this account to not reflect any movements.