DIVINE WORD COLLEGE OF BANGUED

DWCB HIGH SCHOOL

AUDITORS REPORT ON THE FINANCIAL STATEMENT

I have audited the Balance Sheet of our Student Retail Cooperative as of June 2013 and the
related Statement of Income and Expenses for the period ended. These financial statements are the
responsibility of our management. My responsibility is to express an opinion on these financial statements
based on my audit.
Except as discussed in the succeeding paragraph, I have conducted my audit in accordance with
generally accepted auditing standards. These standards require that we plan and perform the audit to
obtain reasonable assurance that the financial statements are free from material misstatements. My audit
included examining evidences supporting the amount and disclosures in the financial statements. I have
also assured the access of accounting principles used and significant estimate made by management as
well as evaluating the overall financial presentation. I believe that my audit provide reasonable assurance
based on my opinion.
Accordingly, discussing the findings and recommendations, I have noticed that the cash balance
in the amount of P13.300.00 is understated by P1,500.00 and should be adjusted to its accurate amount of
P14,800.00 as of June 30, 2013. Moreover, the reflected inventory of P83,500.00, could not be
ascertained due to non maintenance of subsidiary ledgers and non conduct of physical inventory. Base on
my assessment, the amount should be adjusted to P98,000.00.
In my opinion, with these material effects of the matters discussed in the preceding paragraph, the
financial statements are not presented fairly and should be adjusted as reflected to reflect the financial
statement for the period ended in accordance with applicable laws and regulations and in conformity with
the generally accepted accounting principles.

KYAN CARLO B. BELENO

Resident Auditor

DIVINE WORD COLLEGE OF BANGUED

DWCB - HIGH SCHOOL
BALANCE SHEET
As of June 30, 2013
ASSETS
Cash
Cash In Treasury
Cash In Bank
Accounts Receivable
Inventories
Inventory
Fixed Assets
Fixed Assets - Land & land Improvements
Fixed Assets - Building & Structures
Fixed Assets - Furniture, Fixtures and Equipment

13,300.00
15,000.00
1,000.00
83,500.00
20,000.00
150,000.00
30,000.00
312,800.00

LIABILITIES AND SHARE CAPITAL

LIABILITIES
Payables
Accounts Payable
Total Liabilities

15,000.00
15,000.00

RESIDUAL EQUITY
Share Premium
Invested Capital
Share Capital
TOTAL LIABILITIES AND RESIDUAL EQUITY

75,000.00
222,800.00
297,800.00
312,800.00

DIVINE WORD COLLEGE OF BANGUED

DWCB - HIGH SCHOOL
STATEMENT OF INCOME AND EXPENSES
For the period ended June 30, 2013
GROSS INCOME
Sales
Cost of Goods Sold
Inventory, Beginning
Purchases
Freight In
Total
Inventory End
Total Cost of Goods Sold
TOTAL GROSS INCOME

268,000.00
80,000.00
120,000.00
18,000.00
218,000.00
83,500.00
134,500.00
133,500.00

OTHER EXPENSES
Depreciation - Building & Structures
Depreciation - Furniture & Fixtures
Miscellaneous Expenses
TOTAL EXPENDITURES

18,000.00
3,600.00
36,900.00
58,500.00

NET INCOME

75,000.00