Proli Footwear Repairs and Maintenance Analysis December 31, 2014 Date Amount 01

Question

Proli Footwear Repairs and Maintenance Analysis December 31, 2014 Date Amount 01/31/12 31,250 02/28/12 31,250 03/31/12 89,950 04/30/12 39,250 05/31/12 257,960 06/30/12 158,700 07/31/12 109,880 08/31/12 65,400 09/30/12 31,250 10/31/12 48,970 11/30/12 31,604 12/31/12 35,000 Balance per trial balance 930,464 Audit adjustments: Balance per audit Analysis of entries: Janitorial service: ($8,250/month)             See note 90,750 Trash removal service: (23,000/month)   See note 253,000 Paint president's office 8,000 Purchase and install new X machine on production line 453,000 Repairs to roof 8,000 Repair rain damaged offices 35,800 Plumbing repairs 11,200 Computer repairs 17,014 Misc: none over $500 53,700 Total 930,464 Note: This represents only 11 months expense.   RP Proli Footwear Repairs and Maintenance Analysis December 31, 2014 Date Amount 01/31/12 31,250 02/28/12 31,250 03/31/12 89,950 04/30/12 39,250 05/31/12 257,960 06/30/12 158,700 07/31/12 109,880 08/31/12 65,400 09/30/12 31,250 10/31/12 48,970 11/30/12 31,604 12/31/12 35,000 Balance per trial balance 930,464 Audit adjustments: Balance per audit Analysis of entries: Janitorial service: ($8,250/month)             See note 90,750 Trash removal service: (23,000/month)   See note 253,000 Paint president's office 8,000 Purchase and install new X machine on production line 453,000 Repairs to roof 8,000 Repair rain damaged offices 35,800 Plumbing repairs 11,200 Computer repairs 17,014 Misc: none over $500 53,700 Total 930,464 Note: This represents only 11 months expense.   RP

Explanation / Answer

Proli Footwear - Repairs and Maintenance Expenses analysis It is found that the Total amount of Repairs and Maintenance expenses (9,30,464) is matching ie.) the total expenses for the year is matching with the Expensewise breakup. Only thing is that, Janitorial Service and Trash Removal services are accounted for only 11 months in the year. We have to confirm the process and find out why they were not accounted for One month and if the explanation provided is satisfactorily agreed then there is no issue and we can document the reason given by the client in our Workpaper and conclude the same. If the reason is not satisfactory then we have to do substantive procedures and find if any expenses is to be accounted if there are certain things to be accounted then ask the client to account the same under Repairs and Maintenance account. So the Audit Adjustment would be Rs 8250 and Rs 23000 for Janitorial Services and Trash removal services respectively. Hence the Total amount of Expenses would be added by Rs 31,250 ie.) Rs 930,464+Rs31,250 = Rs 961,714

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