MODEL No.

47

Accounting Process of Company Transformation

Limited Liability Company in
Closed Corporation

The company 'Los Rosales S.R.L.', with capital S/. 1,200,000.00 divided among 3 partners, decides on the date 26 of
July, to transform into "Los Rosales S.A.C." (any type of company into another). In such circumstances, it is fulfilled
with the law, the following movements occur:
1. The company's accountant prepared the balance as of the day before the agreement and reopened his books the following day.
2. Every five days and for three times, publications are made in the Official Journal and in another one with greater circulation.
3. Merchandise is bought for S/. 400,000.00 subject to 18% VAT.
4. Merchandise is sold for S/. 240,000.00 subject to 18% VAT, the cost is S/. 102,000.00.
5. Gross salaries are provisioned and paid for S/. 20,000, affecting 80% to Selling Expenses and 20% to Expenses.
Administrative.
6. Fees of S/. 14,000.00 (Administrative Expenses) are paid.
7. Within the legal deadline, Ferretería Valencia S.C. expresses opposition to the transformation claiming that it be
I paid the invoice for S/. 20,000.00. The company agrees to issue a check for 50%; a promissory note is accepted for the balance.
which includes S/. 1,400.00 in interest.
8. It is calculated and made available to the dissenting partner, their share in the profits, S/. 36,000.00. Their part-
participation in the company's capital is assumed by the remaining partners. In the Deed of Transformation,
the transfer is recorded.
9. Depreciation for the period is recorded for S/. 10,000.00 affecting 80% Sales Expenses and 20% Expenses.
of Administration.
10. The Accountant calculates a new Balance on the day before the granting of the Public Deed (at least
40 days have passed) and he closes his books.
11. The corresponding documentation is sent to the Notary to be elevated to a Public Deed.
registered in the Public Relations.

12. Once the legal requirements have been met, the books are reopened and the Assets, Liabilities, and Equity are transferred to the company.
resulting from the transformation: 'Los Rosales S.A.C.'.

Los Rosales S.A.C.

- Open your accounting books with the Assets, Liabilities, and Equity transferred to you by 'Los Rosales S.R.L.', company.
which was dissolved and will no longer be valid as such.
- The share capital in this company will be represented by 12,000 shares of S/. 100.00 each.
 Los Rosales S.R.L.
Statement of Financial Position as of July 30, 2010

Active $ Liabilities and Equity S/.

Current Assets Accounts Payable 400,000
Cash and banks 240,000 Other accounts payable 238,000
Accounts receivable com. 280,000 –––––––––
Stocks 640,000 Total current liabilities 638,000
––––––––– ========
TotalCurrentAssets 1,160,000 Heritage
======== Capital 1,200,000
Real Estate, Machinery and Equipment Accumulated Results 142,000
Net Deprec. Accum. 820,000 –––––––––
––––––––– Total Assets 1,342,000
TotalAssets 1,980,000 –––––––––
======== Total Liabilities and Equity 1,980,000
========

Lima, June 26, 2010.

––––––––––––––––––––––– –––––––––––––––––––––––
Counter Manager

Note: The results obtained in this Balance will be participated in by the partners who withdraw.
not agreeing with the Transformation (it will be the same in the merger).

———————————————1—————————————— MUST NEWS

10 EFFECT. EQUIV. OF EFFECT. 240,000
12 CTAs. To charge commercial. - Third. 280,000
20 MERCHANDISES 640,000
33 INM., MACH. AND EQUIPMENT 1,300,000
39 DEPRECIATION, AMORTIZATION, AND ACCUMULATED EXPIRATION 480,000
42 CTAS. X PAY TRADE. - THIRD. 400,000
46 ACCOUNTS PAYABLE VARIOUS - THIRD PARTY. 238,000
50 CAPITAL 1,200,000
59 CUMULATIVE RESULTS 142,000
Opening of Books to start the transformation process.
Operations:
02/3
60 PURCHASES 400,000
601 Merchandise
40 TRIBUTES, COUNTERPARTS. AND CONTRIBUTIONS TO
SNP AND HEALTH FOR PAYMENT 40,000
401 Central Government
4011 Sales Tax
40111 VAT
42 CTAS. X PAY COMMERCIAL. - THIRD. 440,000
421 Invoices, receipts and other documents to pay
Purchase of Merchandise according to record.
03/3 SHOULD NEWS
20 GOODS 400,000
61 CHANGE IN INVENTORIES 400,000
611 Merchandise
Destination of the previous loads.
—————————————04/4—————————————
12 CTAS. X TO CHARGE MERCHANT. - THIRD. 264,000
121 invoices, receipts, and other documents to collect
40 TRIBUTES, COUNTERPARTS. AND CONTRIBUTIONS TO
SNP AND HEALTH FOR PAYMENT 24,000
401 Central Government
4011 Sales Tax
40111 VAT
70 SALES 240,000
701 Goods
Sales according to record.
————————————— 05/ 4 —————————————
69 COST OF SALES 102,000
691 Merchandise
20 GOODS 102,000
Cost of goods sold.
--------------------------06/5--------------------------

62 EXPENSE PER PERSON, DIRECTORS AND MANAGERS 21,800

621 Salaries 20,000
627 Social Security 1,800
6271 Health Regulation
64 EXPENSE BY TRIBUTE 1,800
647 Cotz. as a matter of tax.
6472 FONAVI
40 TAXES, COUNTERPARTS. AND CONTRIBUTIONS TO
SNP AND HEALTH FOR PAYMENT 5,800
403 Contribution to Public Institution

41 REMUN. AND PARTIC. PAYABLE 17,800

411 Salaries Payable
Provision for payment.
07/5
94 ADMINISTRATIVE EXPENSES 14,200
95 SELLING EXPENSES 9,400
79 CHARGES IMPUTED. ACTS. OF COSTS 23,600
Destination of the previous loads
—————————————07/5—————————————
41 REMUN. AND PARTIC. TO PAY 17,800
411 Remun. Payable
10 EFFECT. EQUIV. OF EFFECT. 17,800
104 Current Accounts
1041 Bank of Labor
Payment of Remunerations.
08/6 MUST NEWS
63 SERVICES PROVIDED BY THIRD PARTIES. 14,000
632 Fees
10 EFFECT. EQUIVALENT OF EFFECT. 14,000
104 Current Accounts in Financial Institutions
1041 Operational Account
1041.1 Labor Bank
Payment with check for fees.
—————————————09/6—————————————
94 ADMINISTRATIVE EXPENSES 14,000
79 Cargo. input. to cost accounts 14,000
Destination of the previous loads
10/7
42 CTAS. X PAY COMM. - THIRD. 10,000
421 Payable Fact.
10 EFFECT. EQUIV. OF EFFECT. 10,000
104 Accounts. Accounts. in Financial Institutions
104.1 Workers' Bank
Payment to suppliers.
November7
42 CTAS. X TO PAY COMERC. - THIRD. 10,000
421 Invoices, receipts and other documents to be collected
67 FINANCIAL CHARGES. 1,400
673 Int. relating to bonds and OT or P
42 CTAS. X PAY COMERC. - THIRD. 11,400
423 Letters (or effects) payable
Exchange with letter

—————————————12/7—————————————
96 FINANCIAL EXPENSES 1,400
71 CHARGES ASSIGNED. MINUTES. OF COSTS 1,400
Destination of the previous charges.
13/8
59 CUMULATED RESULTS 36,000
591 Non-distributed utility.
46 ACCOUNTS PAYABLE - THIRD PARTY. 36,000
469 Other accounts payable
Partner's participation in profits according to agreement.
14/9
68 EVALUATION AND DETERIORATION OF ASSETS AND PROVISIONS
10,800
681 Deprec. of I.M. and E.
39 DEPRECIATION, AMORTIZATION AND ACCUMULATED DRAIN 10,800
393 Accumulated depreciation.
Period depreciation.
15/9 MUST NEWS
94 ADMINISTRATIVE EXPENSES. 8,640
95 SALES EXPENSES 2,160
79 LOADS CHARGED. MINUTES. OF COSTS 10,800
Destination of the previous loads
Now:
1.- Mayorice
2.- Prepare Trial Balance and Distribution of Balances
3.- Balance formulation the day before the granting of the
Public Deed.
16/10
61 CHANGE IN INVENTORIES 102,000
611 Goods
69 COST OF SALES 102,000
691 Merchandise
Closure of Account 69.
17/10
79 CHARGES IMPUTED. ACTS. OF COSTS 49,800
94 ADMINISTRATIVE EXPENSES 33,200
95 SALES EXPENSES 15,200
96 FINANCIAL EXPENSES 1,400
Closing of Class 9.
October18
89 DETERMINATION OF THE EXERCISE RESULT 449,800
60 PURCHASES 400,000
62 STAFF LOADS 21,800
63 SERVICES PROVIDED BY THIRD PARTIES 14,000
64 TRIBUTES 1,800
67 FINANCIAL CHARGES 1,400
68 PROVISIONS OF THE EXERCISE 10,800
Transfer of the debtor balance of accounts in class 6.
————————————— 19/10 —————————————
61 VARIATION OF EXISTENCES 298,000
70 SALES 240,000
89 DETERMINATION OF THE EXERCISE RESULT 538,000
Closing of accounts with credit balances, Class 6 and 7.
20/10
89 DETERMINATION OF THE RESULT OF THE EXERCISE 88,200
59 CUMULATED RESULTS 88,200
591 Non-distributed utility.
Transfer of net balance
21/10 MUST NEWS
39 DEPRECIATION, AMORTIZATION, AND ACCUMULATED EXHAUSTION 490,800
42 CTAS. TO PAY COMMERC. - THIRD. 831,400
46 CTAS. TO PAY DIV. 274,000
50 CAPITAL 1,200,000
59 CUMULATIVE RESULTS. 194,200
10 CASH AND CASH EQUIVALENTS 198,200
104 Accounts. Accounts. in Financial Institutions
104.1 Bank
12 CTAS. TO BE COLLECTED COMMERCIAL. - THIRD PARTY. 544,000
121 Invoices, receipts and other documents to collect
20 MERCHANDISES 938,000
33 INM., MACH. AND EQUIPMENT 1,300,000
40 TRIBUTES, COUNTERPARTS AND CONTRIBUTIONS TO
SNP AND HEALTH FOR PAYMENT 10,200
Closing of books
Formulate your Balance
22/10
10 CASH AND CASH EQUIVALENTS 198,200
12 CTAS. TO BE COLLECTED COMMER. - THIRD PARTY. 544,000
121 Accounts Receivable
20 MERCHANDISES 938,000
33 INM., MACH. AND EQUIPMENT 1,300,000
40 TRIBUTES, COUNTERPARTS. AND CONTRIBUTIONS TO
SNP AND HEALTH BY PAYMENT 10,200
39 DEPRECIATION, AMORTIZATION, AND ACCUMULATED EXPIRATION 490,800
42 CTAS. TO PAY COMMERCIAL - THIRD. 831,400
46 CTAS. TO PAY VARIOUS - THIRD PARTY. 274,000
50 CAPITAL 1,200,000
59 CUMULATIVE RESULTS 194,200
Reopening of books to initiate the transformation process.
23/10
THE ROSES S.R.L. S.A. 2,489,400
39 DEPRECIATION, AMORTIZATION, AND ACCUMULATED EXHAUSTION 490,800
10 CASH AND CASH EQUIVALENTS 198,200
12 ACCOUNTS RECEIVABLE COMMERCE - THIRD PARTY. 544,000
20 GOODS 938,000
33 INM., MACHINERY AND EQUIPMENT 1,300,000
Transfer of the Asset by transformation to Los Rosales S.A.C.
24/10
42 CTAS. TO BE PAID COMMERCE. - THIRD. 831,400
46 PAYABLE ACCOUNTS. VARIOUS - THIRD PARTY. 274,000
50 CAPITAL 1,200,000
59 ACCUMULATED RESULTS 194,200
40 TRIBUTES, COUNTERPART. AND CONTRIBUTIONS TO
SNP AND HEALTH TO PAY 10,200
2,489,400
Transfer of Liabilities and Equity by transfer to LOS ROSALES S.A.C.
Note
1. With these entries, the books are closed for Los Rosales S.R.L.
2. This is the sequence for closing the books in any type of company.
3. The books thus closed must be kept as long as the taxes do not expire.
4. In the Inventory and Financial Statements book, record your Closing Balance.

Los Rosales S.R.L.

Statement of Financial Position
As of July 30, 2010

Active S/ Liabilities and Equity S/.

Current Asset Current Liabilities
Effect and Equiv. of Effect. 198,200 Accounts payable com. - third party. 831,400
Accounts receivable with third parties. 544,000 Other accounts payable - third parties. 274,000
Other receivables - third parties. 10,200 –––––––––
Stocks 938,000 Total Current Liabilities 1,105,400
––––––––– ========
TotalCurrentAssets 1,690,400 Heritage
======== Capital 1,200,000
Real Estate, Machinery and Equipment Accumulated Results. 194,200
Net of accumulated depreciation. 809,200 –––––––––
––––––––– Total Assets 1,394,200
TotalAsset 2,499,600 ========
======== [Link]. 2,499,600
========

Lima, July 26, 2010

––––––––––––––––––––––– –––––––––––––––––––––––
Accountant Manager

THE BOOKS IN THE ROSEBUSH S.A.C., the new type of company will start its accounting activities, with the
entries for the reception of the Assets, Liabilities, and Equity of the company that is left after being elevated to Deed
Publish the agreement.
IMPORTANT.- If you choose to continue using the previous accounting books and sheets, inform the SUNAT.
within 5 days following the date of registration in the Commercial Registry of the change of company name or of
corporate transformation.
In the book of INVENTORIES AND BALANCES
If you choose to continue using the previous society's books, draft a summary of the transformation agreement.
action, highlighting the most important points, such as: capital formation, variation in the
participation, number of shares or stakes, change in the responsibility of the partners, etc., as well as the
registration in the Public Records.
If you choose to use new books, they should be opened as if they were the constitution of a company,
even though we must understand that it is not about a new one but simply about the change from one type to another
society.
You must then:
1. Draft the Minutes in a summarized form, as applied in the previous point.
2. Register the detailed Inventory of Assets, Liabilities, and Equity of the company, as is done at the close of
each exercise.
3. Record the Balance that results as 'Initial' just because the books are new.
In the JOURNAL, record the receipt of Assets, Liabilities, and Equity as follows:

-----------------------------1----------------------------- MUST NEWS

10 EFFECT. EQUIV. OF EFFECT. 198,200
104 Checking Accounts in Financial Institutions
1041 Operational Headquarters
1041.1 Workers' Bank
12 CTAS. TO CHARGE COMERC. THIRD. 544,000
121 Invoices, receipts and other documents to be collected
20 GOODS 938,000
33 INM., MACH. AND EQUIPMENT 1,300,000
336 Various Equipment
39 DEPRECIATION, AMORTIZATION AND ACCUMULATED DRAIN 490,800
393 Accumulated depreciation.

Los Rosales S.R.L. 2,489,400

Reception of the Asset, by transformation of AlHuCo S.C. according to
agreements, elevated to Public Deed by the Notary
Dr. ........................ your registration No. 1245, Reg. of Soc.
Merchant. Card No. 455896
———————————————2——————————————
AlHuCo S.C.
40 TRIBUTES, COUNTERBALANCE. AND CONTRIBUTIONS TO
SNP AND HEALTH FOR PAYMENT 2,499,600
401 Central Government
4011 Sales Tax
42 CTAS. TO PAY COMMERCIAL THIRD PARTIES. 831,400
421 Invoices, receipts, and other documents to collect
46 ACCOUNTS. TO PAY DIV. - THIRD PARTY. 274,000
469 Other accounts payable div.
50 CAPITAL 1,200,000
501 Social Capital
59 accumulated results. 194,200
591 Retained earnings
Reception of Liabilities and Equity of Los Rosales S.R.L.
result of transformation agreement.

Continue with the record of the operations that took place in the company.
Notes. The process is the same for any type of company. If the share capital is increased due to the transformation,
Separate the entries by the corresponding commitment and payment, including if a new partner joins.