This routine will prepare a report to give to the accountant for any accounting period.
Accounting for Layaways Paid and Dropped (pulled)
The following sample will show the transactions and report printouts of the various layaway transactions. Accounting for income received from layaways is done after the layaway sale is paid in full or is dropped. On a dropped layaway there is no sales tax due. The item remains as part of inventory and any payments made, are reported as income. Two reports are printed:
D -> J. Store Activity Recap.
D -> G -> C. General Ledger Transfer
Note that only line items that have values are listed in the samples below.
The account numbers for the chart of account entries are:
1000's Assets
2000's Liabilities
3000's Income or Revenue
The four transactions are:
1.An initial layaway sale of $100.00, sales tax of $8.25, and down payment of $40, cost of goods $70.00.
2.A payment is made of $25.00.
3.A final payment is made for the balance remaining of $43.25
4.The layaway is dropped with only $65.00 in payments made.
Layaway sale price $100.00, tax $8.25, down payment of $40.00
The Activity Recapitulation Report shows:
Description Amount Audit Code
---------------------------------- ---------- ----------
Layaways
Layaways made 100.00 34
Layaways made, tax on sale amount 8.25 37
Other Audit Totals
Layaway payments,taxable 40.00 26
Layaways made, cost of goods 70.00 35
The General Ledger Transfer report shows:
Description Audit Account No Debit Credit
-------------------- ----- ---------- ------ -------
New Layaways Made, and Sales Tax Receivable
LAYAWAYS RECEIVABLE 34 1080 100.00
LAYAWAYS PENDING 34 2015 -100.00
LAYAWAYS RECEIVABLE 37 1080 8.25
LAYAWAYS PENDING 37 2015 -8.25
Layaway Payments, taxable and non-taxable
CASH IN STORE 1040 40.00
LAYAWAYS RECEIVABLE 26 1080 -40.00
------- -------
Total Debits and Credits 148.25 -148.25
========================================= ======= =======
A payment is made of $25.00.
The Activity Recapitulation Report shows:
Description Amount Audit Code
---------------------------------- ---------- ----------
Other Audit Totals
Layaway payments,taxable 5.00 26
Description Audit Account No Debit Credit
---------------------------- ----- ---------- ------ -------
Layaway Payments, taxable and non-taxable
CASH IN STORE 1040 25.00
LAYAWAYS RECEIVABLE 26 1080 -25.00
------- -------
Total Debits and Credits 25.00 -25.00
=================================== ======= =======
A final payment is made for the balance remaining of $43.25
The Activity Recapitulation Report shows:
Description mount Audit Code
---------------------------------- ---------- ----------
Sales
+ Layaways, paid taxable 100.00 30
__________
Total Sales 100.00
__________
Taxable Sales 100.00
Sales tax
+ Layaways, paid sales tax due 8.25 32
__________
Sales Tax for period 8.25
Other Audit Totals
Layaways paid, cost of goods 70.00 36
Layaway payments, taxable 43.25 26
The General Ledger Transfer report shows:
Description Audit Account No Debit Credit
------------------------- ----- ---------- ------ -------
Income from Layaway Sales Paid in Full
LAYAWAYS PENDING 2015 108.25
LAYAWAYS PAID IN FULL 30 3015 -100.00
SALES TAX PAYABLE 32 2020 -8.25
Cost of Goods for Sales and Paid Layaways
LAYAWAYS COST-OF-GOODS 36 3020 70.00
INVENTORY FOR SALE IN STORE 1100 -70.00
Layaway Payments, taxable and nontaxable
CASH IN STORE 1040 43.25
LAYAWAYS RECEIVABLE 26 1080 -43.25
------- -------
Total Debits and Credits 221.50 -221.50
========================================= ======= =======
The layaway is dropped with only $65.00 in payments made.
The Activity Recapitulation Report shows:
Description Amount Audit Code
---------------------------------- ---------- ----------
Income: Loans, Finance Charges, Layaway Drops
Layaway payments total dropped 65.00 33
Layaways dropped, total sale amount 108.25 38
The General Ledger Transfer report shows:
Description Audit Account No Debit Credit
------------------------- ----- ---------- ------ -------
Income from Layaways Dropped / Pulled
LAYAWAYS RECEIVABLE 33 1080 65.00
LAYAWAYS PULLED OR DROPPED 33 3050 -65.00
LAYAWAYS PENDING 38 2015 108.25
LAYAWAYS RECEIVABLE 38 1080 -108.25
------ -------
Total Debits and Credits 173.25 -173.25
========================================= ======= =======
