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Accounting for Merchandising Operation

Case Study ICP I: Help Me Please…!!!

For ICP- IPS Tarbiyah Students

Sam is an employee in the accounting department and his boss has asked him to copy the worksheet he has prepared for a meeting that afternoon in order to finalize the company’s financial statements for the period. As Sam is copying the worksheet, he notices that a sale on account has not been correctly recorded. The amount has been transposed from the ledger – it was recorded as $54,000 instead of $45,000. Sam remembers the transaction as the sale was to one of his friends. If Sam says nothing, he will receive a higher bonus because the company pays a bonus to all its employees according to their total sales. The bonus will be very useful as Sam is leaving the company at the end of next week to go on an extended working holiday in Europe.

Required: What would you do if you were Sam?

Submit your answer in “Leave a comment” in this page at the latest of 6th June 2011.

This case study is taken from:

Bazley, M., Hancock , P., Berry, A., and Jarvis, R. 2004. Contemporary Accounting. 5th Edition. Thomson Learning. Australia. Chapter 6, p.141.

About yuniartihidayah

Monash University, Australia, PPAK UB Interests: Listening to music, reading, traveling, eating delicious food, and networking

Discussion

15 thoughts on “Case Study ICP I: Help Me Please…!!!

  1. In my opinion, Sam must report his financial statement with clearly and honestly because in code ethics of accountants must be integrity, objectivity, professional competence and due care, confidentiality and having professional behavior in his work.

    Posted by ika rozy septya dewi 09130022 ICP IPS | June 1, 2011, 12:02 am
  2. if i as sam, I will correct back and fix its financial statements. because the slightest thing wrong against us will affect the company’s reports and decision making process. although we did not get a bonus but we sudahbisa honest it will give pleasure without any guilt because they manipulate the financial statements.

    Posted by Didik Purwanto | June 1, 2011, 3:53 am
  3. I think Sam should immediately report to his boss, for recording errors in worksheet, although the worksheet must be in by late that afternoon. Because the mistake in Account very influential on the fate of the company going forward. And most importantly is the result of worksheet will determine the boss decision.
    The decision of boss not only impact to one aspect only. But will impact to all aspect of company. So if Sam makes a wrong worksheet, Indeed this Would Be good forhim
    But this will give bad impact for other employee.
    If we be Sam , sure we will be hard to choose, because if we choose to not change the worksheet we will easier to do and we will get more wage, let alone we would have a working holiday, the money is certainly very useful. , but we as workers we must have strong principles of honesty, because the value of honesty is much greater than the value of any number of money.

    Posted by soimatul.m | June 1, 2011, 7:00 am
  4. Dear mom.. if I as Sam, the boss has asked me to copy a worksheet and I have been preparing for a meeting that afternoon, I probably would not manipulate the data does not match actual fact it’s listed as $ 54,000 rather than $ 45,000 or in accounting terms is called “Window Dressing”. and accounting rules so that there is such thing as adjusting entries. we can use it with a quick adjustment entries even though the afternoon had to be given to the boss, for the bonus issue will be very useful, leaving the company at the end of next week to join the program extended working holiday in Europe, I think if we can work with a professional and honest definite chance and profits as it will not be away from us:-)

    Posted by GIAN RESTIN (09130003)-ICP IPS | June 1, 2011, 8:07 am
  5. bissmilah..
    if i as sam, i will do it to copy worksheet but if there is wrong transaction i going to tell to my boss the true transaction to correct it. i know that it is will be impact to other employees (in short term) but also we must know it will have bigger impact in the next period (bad impact not only to employees and firm but also the point of view another competitors or the investor. alhamdulillah

    Posted by mirza nurul laili | June 1, 2011, 10:38 am
  6. First, I must fix the financial statements that suitable with the process of accounting. If I haven’t time to fix it, I will report it in a meeting with clear and honest because it is my responsibility and I must professional, don’t afraid to admid our wrongness although it difficult because financial statements is important thing that influence of company’s decision. And then, say sorry to the boss and audience and I will fix it as soon as possible.

    Sometimes, there is thought to lie and get what I want like Sam, but first I must think with my action, it is good or bad, because our decision will be impact to many field. If I choose to make lie, in fact I wil get many money and can make reality my desire. But in one side, I will feel wrong and sin in my long life because my decision will make problems in my company and it is possible to make me always lie and become my habitual, Naudzubillahi min dzalik… ^_^

    Posted by dewi rossilia- 09130024 | June 1, 2011, 6:13 pm
  7. okay, if i was Sam, i think i should and i must repair and fix it one more as fast and as good as it must be. because if i don’t do it, then i have to sacrifice the other employees welfare cause of the untrue report related by the income of company and the wages. also it will give a negative impact for the continuity of the company, related with it client.

    Posted by hayyun lathifaty yasri (09130109) ICP IPS | June 2, 2011, 12:36 am
  8. in my opinion, made ​​by sam action less true, because not in accordance with the principle of an accountant that is honest, and responsible. In this case, if I became sam I will justify the financial statements which have been one I did earlier. So if the later will get a vacation I will enjoy my vacation in peace. In addition, I have had some of the principles contained in the accountant so that there will be a separate sense of pride within

    Posted by rista khusniawati_09130002 | June 2, 2011, 12:02 pm
  9. If I as Sam, I will tell the truth if the listing has been experiencing a change and I will replace with the correct record of $ 45,000 rather than $ 54,000, I have worked professionally as an accountant, honesty is the key to success and the currency accepted everywhere. Although if I had not said anything I would get a big bonus that I can use to cost holidays to Europe, but I was a Muslim and in this case is not justified in my religion, and as a devout Muslim in my religion would not be doing things that are prohibited and violate religious rules, and my parents have also been taught honesty to me since childhood and GOD really likes honesty made by creatures. And aphorism also said “let’s say the truth even if it bitter. “

    Posted by HASNA RUFAIDA (09130122) ICP IPS | June 3, 2011, 1:58 am
  10. if I become sam, I will correct these mistakes, but if time is not sufficient, I’ll make a note that explaining about the mistake.

    I better be honest, rather than lying to get bonuses. maybe with honesty, my effort is more appreciated 🙂

    Posted by Meytha Sari. A (09130004) ICP-IPS | June 3, 2011, 3:01 am
  11. Assalamualaikum mom,
    if i become Sam i will copy the worksheet because it dateline for meeting this afternoon but he must confident and honest said to the Boss if there is a sale on account has not been correctly recorded. Although he get big bonus it make happy for the life but I think money is not forever for his life but honest and responsible to his profession as accounting is good for his professional.

    Posted by Wahyu Furqondari (09130072) ICP IPS | June 3, 2011, 4:59 am
  12. assalamu’alaikum,,
    if I as “sam”, I will copy the worksheet before i go further, but there are not constraints due to time , but if I were not a major obstacle “sam” time, the importance of honesty, and not to harm other employees

    Posted by ninda yuni a | June 3, 2011, 9:03 am
  13. If I as Sam, I will create and improve financial reporting honestly and correctly in accordance with reality. Because we do with honesty will lead to confidence from the boss to us and not pursued by guilt. If we are wrong in making financial statements will have a negative impact to other employees and the company’s future.

    Posted by Jafar Shodiq | June 5, 2011, 1:11 pm
  14. I think,if i were as Sam,i’ll tell the truth to my boss. Because if i’m not honest that can make my character be wrong and i can’t do that. If we’re become a employee we must have the attitude,so that’s the ethic code which can be our guide in job life’s. And not only make my attitude be bad,but also make my company was false to report the financial statement.
    And i’ll learning anymore for this,if i don’t wanna make mistake again in another time.

    Posted by Rukhilla Nur A | June 6, 2011, 12:36 pm
  15. in my opinion should, sam declared in accordance with reality, what actually happened, including mistakes in recording, as if seen from one side of the sam will get the benefits without reporting the real situation, but on the other hand it will impact the company will incur a loss , except that if sam did not report the actual situation means sam has violated the ethical code of honesty and accuracy of accounting,
    Syukron Katheer ……..

    Posted by agus budi utomo | June 7, 2011, 2:40 am

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