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Account No.

101
102
103
104
104-A
105
106
107
108
109
110
111
201
202
202-A
203
203-A
204
204-A
205
205-A
301
1001
1002
1003
1004
1005
1006
1007
1008
2001

2002
2003
2004
2005
3001
3002
3003
3004
3005
4001
4002
4003
4004
4005
4006
4007
4008
4009
4010
4011
4012
4013
4014
4015
4016
4017
4018
4019

GRACE CORPORATION
Working Trial Balance
December 31, 2011
Account Name
Cash in Bank
Petty Cash Fund
Marketable Securities
Accounts Receivable
Acounts Receivable - Others
Allowance for Bad Debts
Notes Receivable
Merchandise Inventory
Accrued Interest Receivable
Prepaid Advertising
Prepaid Insurance
Unused Supplies
Input Tax
Land
Building
Accumulated Depreciation - Building
Furniture and Fixture
Accumulated Depreciation - Furniture and Fixture
Transportation Equipment
Accumulated Depreciation - Transportation Equipment
Office Equipment
Accumulated Depreciation - Office Equipment
Organization Cost
Accounts Payable
Notes Payable
Notes Payable - Non Trade
Notes Payable - Officer
SSS Medicare Premium Payable
Withholding Taxes Payable
HDMF Premiums Payable
Accrued Interest Payable
Output Tax
Ordinary Share Capital

WP Ref
C
C
D
E
E
E
E
F
E
G
G
G
P
K
K
K
K
K
K
K
K
K
M
N
O
O
O
N
N
N
N
P
T

Subscribed Ordinary Share Capital


Subscription Receivable - Ordinary Share Capital
Premium in Excess of Par Value - Ordinary Share Capital
Retained Earnings
Sales
Sales Discount
Sales Returns and Allowances
Interest Income
Purchase Discount
Cost of Sales
Salaries Expense
Supplies Expense
Taxes and Licenses
SSS Premium Expense
HDMF Premium Expense
Gasoline Expense
Light, Water & Telephone
Depreciation Expense - Building
Depreciation Expense - Furniture and Fixture
Depreciation Expense - Transporation Equipment
Depreciation Expense - Office Equipment
Amortization of Organization Cost
Bad Debts Expense
Representation Expense
Advertising Expense
Insurance Expense
Miscellaneous Expenses
Interest Expense
TOTAL

T
T
T
T
UA
UA
UA
UB

VB
VB
VB
VB
VB
VB
VB
VB
VB
VB
VB
VB
VB
VB
VB
VB
VB
VC

December 31, 2009


Debit

December 31, 2010

Credit

Debit

150,000
10,000
1,010,000
4,650,000
4,200,000

1,000,000
100,000
1,150,000
5,850,000
6,400,000

600,000
700,000

1,500,000
900,000

50,000
60,000
200,000
450,000
16,500,000
33,000,000

120,000
80,000
300,000
600,000
16,500,000
33,000,000

3,550,000

3,550,000

6,000,000

6,000,000

2,130,000

2,130,000

1,000,000

1,000,000
900,000
14,000,000
52,000
40,500
21,500
600,000
45,000,000

3,500,000
48,766,000
200,000
650,000

300,000
800,000
80,000

29,085,000
6,253,000
67,000
750,000
210,000
70,000
86,500
184,000

34,785,500
7,000,000
108,000
900,000
270,500
100,000
100,000
210,000

230,000
113,000
207,000
170,000
60,000
364,500

280,000
132,000
318,000
200,000
70,000
445,500

112,960,000

112,960,000

126,199,500

TB

ecember 31, 2010

December 31, 2011

Credit

Debit

Credit

4,709,230
1,700
9,500,000
10,318,635
497,811
2,970,000
4,402,787
38,853
50,000
50,000
300,000
1,556,422
16,500,000
53,000,000
650,000
3,550,000
355,000
6,000,000
1,200,000
2,130,000
426,000
800,000
906,500

5,124,090
3,506,500

21,000,000
62,000
52,500
29,500
1,000,000
45,000,000

1,700,000
144,720
129,600
63,200
66,565
2,470,332
70,000,000

5,000,000
2,625,000
3,500,000

5,250,000
4,481,456
112,152,313

54,539,000
866,435
1,041,475
110,000

248,853
4,520
56,646,887
24,022,840
1,411,862
910,000
1,270,500
1,100,000
1,146,000
1,223,000
650,000
355,000
1,200,000
426,000
200,000
497,811
120,000
820,520
550,000
397,938
112,065

126,199,500

213,470,960

Prepared by:
ILW

Date:
1/8/2012

Reviewed by:

Date:

RIT

1/11/2012

213,470,960

GRACE CORPORATION
Lead Schedule - Financial Assets
December 31, 2011
Account No.

Account Name

WP Ref

103

Marketable Securities

TOTAL

ORATION

l Assets

2009
Debit
1,010,000
1,010,000

2010
Credit
-

Debit
1,150,000
1,150,000

2010

2011
Credit
-

Debit
9,500,000
9,500,000

Credit
-

PAJE
Debit

Audited Balance
Credit
9,500,000
9,500,000

Prepared by:

Reviewed by:

D
Difference
8,350,000
8,350,000

Date:

Date:

Percentage
726.09%
726.09%

GRACE CORPORATION

Lead Schedule - Trade and Other Receivables


December 31, 2011

Account No.

104
0
104-A
105
107

Account Name

Accounts Receivable
Acounts Receivable - Others
Allowance for Bad Debts
Notes Receivable
Accrued Interest Receivable
TOTAL

TION

r Receivables

WP Ref

E
E
E
E
E

2009
Debit
4,650,000.00
4,200,000
600,000
9,450,000

2010
Credit
-

Debit
5,850,000.00
6,400,000
1,500,000
13,750,000

2010

2011
Credit
-

Debit
10,318,635.00
2,970,000
38,853
13,327,488

Credit
497,811
497,811

PAJE
Debit

Audited Balance
Credit
10,318,635.00
(497,811)
2,970,000
38,853
12,829,677

Prepared by:

Reviewed by:

E
Difference

4,468,635.00
(6,400,000)
(497,811)
1,470,000
38,853
(920,323)

Date:

Date:

Percentage

76.39%
-100.00%
0.00%
98.00%
0.00%
-6.69%

GRACE CORPORATION

Lead Schedule - Cash and Cash Equivalents


December 31, 2011
Account No.
101
102

Account Name
Cash in Bank
Petty Cash Fund
TOTAL

WP
Ref
C
C

PORATION

and Cash Equivalents

2009
Debit
150,000
10,000
160,000

2010
Credit
-

Debit
1,000,000
100,000
1,100,000

2010

2011
Credit
-

Debit
4,709,230
1,700
4,710,930

Credit
-

PAJE
Debit

Audited Balance
Credit
4,709,230
1,700
4,710,930

Prepared by:

Reviewed by:

C
Difference
3,709,230
(98,300)
3,610,930

Date:

Date:

Percentage
370.92%
-98.30%
328.27%

GRACE CORPORATION
Lead Schedule - Inventories
December 31, 2011
Account No.

106

Account Name

Merchandise Inventory
TOTAL

WP Ref

ORATION

2009
Debit
700,000
700,000

2010
Credit

Debit
-

900,000
900,000

2010

2011
Credit
-

Debit
4,402,787
4,402,787

Credit
-

PAJE
Debit

Audited Balance
Credit
4,402,787
4,402,787

Prepared by:

Reviewed by:

F
Difference

3,502,787
3,502,787

Date:

Date:

Percentage

389.20%
389.20%

GRACE CORPORATION

Lead Schedule - Prepayments and Other Current A


December 31, 2011

Account No.
108
109
110

Account Name
Prepaid Advertising
Prepaid Insurance
Unused Supplies
TOTAL

WP Ref
G
G
G

ORATION

ments and Other Current Assets

2009
Debit
50,000
60,000
200,000
310,000

2010
Credit

Debit
-

120,000
80,000
300,000
500,000

2010

2011
Credit

Debit
-

50,000
50,000
300,000
400,000

Credit
-

PAJE
Debit

Audited Balance
Credit
50,000
50,000
300,000
400,000

Prepared by:

Reviewed by:

G
Difference
(70,000)
(30,000)
(100,000)

Date:

Date:

Percentage
-58%
-38%
-20%

Account No.
201
202
202-A
203
203-A
204
204-A
205
205-A

GRACE CORPORATION

Lead Schedule - Property, Plant and Equioment


December 31, 2011
Account Name
Land
Building
Accumulated Depreciation - Building
Furniture and Fixture
Accumulated Depreciation - Furniture and Fixture
Transportation Equipment
Accumulated Depreciation - Transportation Equipment
Office Equipment
Accumulated Depreciation - Office Equipment
TOTAL

WP
Ref
K
K
K
K
K
K
K
K
K

2009
Debit
16,500,000
33,000,000
3,550,000
6,000,000
2,130,000
61,180,000

2010
Credit
-

Debit
16,500,000
33,000,000
3,550,000
6,000,000
2,130,000
61,180,000

2010

2011
Credit
-

Debit
16,500,000
53,000,000
3,550,000
6,000,000
2,130,000
78,549,000

Credit
650,000
355,000
1,200,000
426,000

PAJE
Debit

Audited Balance
Credit
16,500,000
53,000,000
650,000
3,550,000
355,000
6,000,000
1,200,000
2,130,000
426,000
78,549,000

Prepared by:

Reviewed by:

K
Difference
20,000,000
650,000
355,000
1,200,000
426,000
17,369,000

Date:

Date:

Percentage
61%
28%

GRACE CORPORATION
Lead Schedule - Intangible Assets
December 31, 2011

Account No.

301

Account Name

Organization Cost
TOTAL

WP
Ref
M

PORATION

gible Assets

2009
Debit
1,000,000
1,000,000

2010
Credit
-

Debit
1,000,000
1,000,000

2010

2011
Credit
-

Debit
800,000
800,000

Credit
-

PAJE
Debit

Audited Balance
Credit
800,000
800,000

Prepared by:

Reviewed by:

M
Difference

(200,000)
(200,000)

Date:

Date:

Percentage

-20%
-20%

GRACE CORPORATION
Lead Schedule - Trade and Other Payables
December 31, 2011

Account No.
1001
1004
1005
1006
1007

Account Name
Accounts Payable
SSS Medicare Premium Payable
Withholding Taxes Payable
HDMF Premiums Payable
Income Tax Payable
Accrued Interest Payable
TOTAL

WP
Ref
N
N
N
N
N
N

RATION

r Payables

2009
Debit
-

2010
Credit
900,000.00
52,000.00
40,500.00
21,500.00
1,014,000.00

Debit
-

2010

2011
Credit
906,500.00
62,000.00
52,500.00
29,500.00
11,769,300.00
12,819,800.00

Debit
-

Credit
5,124,090.00
144,720.00
129,600.00
63,200.00
22,223,916.00
66,565.00
27,752,091.00

PAJE
Debit

Audited Balance
Credit
5,124,090.00
144,720.00
129,600.00
63,200.00
66,565.00
5,528,175.00

Prepared by:

Reviewed by:

N
Difference
4,217,590.00
82,720.00
77,100.00
33,700.00
66,565.00
(7,291,625.00)

Date:

Date:

Percentage
465%
133%
147%
114%
0%
-57%

GRACE CORPORATION
Lead Schedule - Notes Payable
December 31, 2011
Account No.
1002
1002
1003

Account Name
Notes Payable
Notes Payable - Non Trade
Notes Payable - Officer
TOTAL

WP Ref
O
O
O

ORATION

Payable

2009
Debit

2010
Credit

14,000,000
14,000,000

Debit
-

2010

2011
Credit
21,000,000
21,000,000

Debit
-

Credit
3,506,500
1,700,000
5,206,500

PAJE
Debit

Audited Balance
Credit
3,506,500
1,700,000
5,206,500

Prepared by:

Reviewed by:

O
Difference
3,506,500
(21,000,000)
1,700,000
(15,793,500)

Date:

Date:

Percentage
0%
-100%
0%
-75%

GRACE CORP

Working Income Statement - Lead Schedule


For the Years Ended December 31, 2009-2011
Account Name

Unadjusted Balance
2011 Balance
2010 Balance

Sales
Cost of Sales
Gross Profit

110,244,403
0
110,244,403

53,439,000
0
53,439,000

Operating Expenses
Income from Operations

(36,301,471)
73,942,932

(9,688,500)
43,750,500

248,853
(112,065)
74,079,720
(22,223,916)
51,855,804

110,000
(445,500)
43,415,000
(13,024,500)

Other Income
Finance Cost
Taxable Income
Income Tax (30%)
Net Income

30,390,500

Prepared by:
Reviewed by:

ad Schedule
1, 2009-2011

d Balance
2009 Balance
47,916,000
0
47,916,000
(8,400,500)
39,515,500
80,000
(364,500)
39,231,000
(11,769,300)
27,461,700

Date:
Date:

GRACE CORPORATION
Lead Schedule - VAT Payable
December 31, 2011
Account No.

Account Name

WP
Ref

2009
Debit

1008
111

Output Tax
Input Tax
TOTAL

P
P

450,000
450,000

TION

2009

2010
Credit
600,000
600,000

Debit
600,000
600,000

Credit
1,000,000
1,000,000

2011
Debit
1,556,422
1,556,422

PAJE
Credit
2,470,332
2,470,332

Debit

PAJE

Audited Balance

Difference

Credit
2,470,332
(1,556,422)
913,910

1,470,332
(1,556,422)
(86,090)

Prepared by:

Date:

Reviewed by:

Date:

P
Percentage
147.03%
-259.40%
-21.52%

Account No.

2001
2002
2003
2004

2005

GRACE CORPORATION
Lead Schedule - Shareholders' Equity
December 31, 2011

Account Name

Ordinary Share Capital


Subscribed Ordinary Share Capital
Subscription Receivable - Ordinary Share Capital
Premium in Excess of Par Value - Ordinary Share Capital
RE Composition
Previous Balance
Dividends Declared
Net Income
Other Comprehensive Income
Retained Earnings
TOTALS

WP Ref

T
T
T
T

2009
Debit

2010
Credit

Debit

45,000,000
3,500,000

48,500,000

2010

2011
Credit

Debit

45,000,000
3,500,000

48,500,000

Credit

2,625,000
-

70,000,000
5,000,000
5,250,000

4,481,456

4,481,456
82,106,456

PAJE
Debit

Audited Balance
Credit
70,000,000
5,000,000
(2,625,000)
5,250,000

4,481,456
4,481,456
86,587,912

Prepared by:

Reviewed by:

T
Difference

25,000,000
5,000,000
(2,625,000)
1,750,000

4,481,456
4,481,456
38,087,912

Date:

Date:

Percentage

55.56%
50.00%

#DIV/0!
#DIV/0!
78.53%

GRACE CORPORATION
Lead Schedule - Net Sales
December 31, 2011
Account No.

Account Name

WP Ref

2009
Debit

3001
3002
3003

Sales
Sales Discount
Sales Returns and Allowances
TOTAL

UA
UA
UA

200,000
650,000
850,000

2009

2010
Credit
48,766,000
48,766,000

Debit
300,000
800,000
1,100,000

2011
Credit
54,539,000
54,539,000

Debit
866,435
1,041,475
1,907,910

Credit
112,152,313
112,152,313

UA
PAJE
Debit

Audited Balance

Difference

Percentage

Credit
112,152,313
(866,435)
(1,041,475)
110,244,403

57,613,313
566,435
241,475
56,805,403

Prepared by:

Date:

Reviewed by:

Date:

105.64%
188.81%
30.18%
106.30%

GRACE CORPORATION
Lead Schedule - Other Income
December 31, 2011
Account No.

Account Name

WP Ref

2009
Debit

3004

Interest Income
TOTAL

UB

Credit
-

80,000
80,000

2010
Debit

2011
Credit

110,000
110,000

Debit

PAJE
Credit

248,853
248,853

Debit

UB
PAJE

Audited Balance

Difference

Percentage

Credit
248,853
248,853

138,853
138,853

Prepared by:

Date:

Reviewed by:

Date:

126.23%
126.23%

GRACE CORPORATION
Lead Schedule - Cost of Sales
December 31, 2011

Account No.

4001
3005

Account Name

Cost of Sales
Purchase Discount
TOTAL

WP Ref

ORATION

2009
Debit
29,085,000
29,085,000

2010
Credit
-

Debit
34,785,500
34,785,500

2010

2011
Credit
-

Debit
56,646,887
56,642,367

Credit
4,520

PAJE
Debit

Audited Balance
Credit
56,646,887
4,520
56,642,367

Prepared by:

Reviewed by:

VA
Difference

21,861,387
4,520
21,856,867

Date:

Date:

Percentage

63%
0%
63%

Account No.
4002
4003
4004
4005
4006
4007
4008
4009
4010
4011
4012
4013
4014
4015
4016
4017
4018

GRACE CORPORATION
Lead Schedule - Operating Expenses
December 31, 2011
Account Name
Salaries Expense
Supplies Expense
Taxes and Licenses
SSS Premium Expense
HDMF Premium Expense
Gasoline Expense
Light, Water & Telephone
Depreciation Expense - Building
Depreciation Expense - Furniture and Fixture
Depreciation Expense - Transporation Equipment
Depreciation Expense - Office Equipment
Amortization of Organization Cost
Bad Debts Expense
Representation Expense
Advertising Expense
Insurance Expense
Miscellaneous Expenses
TOTAL

WP
Ref
VB
VB
VB
VB
VB
VB
VB
VB
VB
VB
VB
VB
VB
VB
VB
VB
VB

2009
Debit
6,253,000
67,000
750,000
210,000
70,000
86,500
184,000
230,000
113,000
207,000
170,000
60,000
8,400,500

2010
Credit
-

Debit
7,000,000
108,000
900,000
270,500
100,000
100,000
210,000
280,000
132,000
318,000
200,000
70,000
9,688,500

2010

2011
Credit
-

Debit
24,022,840
1,411,862
910,000
1,270,500
1,100,000
1,146,000
1,223,000
650,000
355,000
1,200,000
426,000
200,000
497,811
120,000
820,520
550,000
397,938
36,301,471

Credit
-

PAJE
Debit

Audited Balance
Credit
24,022,840
1,411,862
910,000
1,270,500
1,100,000
1,146,000
1,223,000
650,000
355,000
1,200,000
426,000
200,000
497,811
120,000
820,520
550,000
397,938
36,301,471

Prepared by:

Reviewed by:

VB
Difference
17,022,840
1,303,862
10,000
1,000,000
1,000,000
1,046,000
1,013,000
650,000
355,000
1,200,000
426,000
200,000
217,811
(12,000)
502,520
350,000
327,938
26,612,971

Date:

Date:

Percentage
243.18%
1207.28%
1.11%
369.69%
1000.00%
1046.00%
482.38%
0.00%
0.00%
0.00%
0.00%
0.00%
77.79%
-9.09%
158.03%
175.00%
468.48%

GRACE CORPORATION
Lead Schedule - Finance Cost
December 31, 2011
Account No.
4019

Account Name
Interest Expense
TOTAL

WP Ref
VC

ORATION
2009
Debit
364,500
364,500

2010
Credit

Debit
-

445,500
445,500

2010

2011
Credit

Debit
-

Credit
112,065
112,065

PAJE
Debit

Audited Balance
Credit
112,065
112,065

Prepared by:

Reviewed by:

VC
Difference
(333,435)
(333,435)

Date:

Date:

Percentage
-74.85%

Work

ACCOUNT TITLE

ASSETS
Current Assets
Cash and Cash Equivalents
Financial Assets
Short- term Investments
Trade and Other Receivables (net)
Merchandise Inventory
Prepayments
TOTAL CURRENT ASSETS
Non-current Assets
Property, Plant and Equipment (net)
Intangibles Assets
TOTAL NONCURRENT ASSETS
TOTAL ASSETS
LIABILITIES AND EQUITY
Current Liabilities
Trade and Other Payables
Notes Payable
VAT Payable
TOTAL CURRENT LIABILITIES
TOTAL LIABILITIES
Shareholder's Equity
Share Capital
Subscribed Share Capital
Subscription Receivable
Additional Paid-in Capital
Retained Earnings
TOTAL EQUITY

WP Ref

C
D

TOTAL LIABILITIES AND EQUITY

GRACE CORPORATION

Working Statement of Financial Position- Le


As of December 31, 2011, 2010, 20
Balances (Php) December
31, 2009

Balances (Php) December


31, 2010

160,000
1,010,000

1,100,000
1,150,000

9,450,000
700,000
200,000
11,520,000

13,750,000
900,000
300,000
17,200,000

61,180,000
1,000,000
62,180,000
73,700,000

61,180,000
1,000,000
62,180,000
79,380,000

1,014,000
14,000,000
150,000
15,164,000
15,164,000

12,819,800
21,000,000
400,000
34,219,800
34,219,800

45,000,000
-

45,000,000
-

15,164,000

34,219,800

ACE CORPORATION

nt of Financial Position- Lead Schedule


ecember 31, 2011, 2010, 2009
Unadjusted (Php)
December 31, 2011

Adjustments (Php)
Debit

Credit

4,710,930
9,500,000

12,829,677
4,402,787
300,000
31,743,394

78,549,000
800,000
79,349,000
111,092,394

27,752,091
5,206,500
913,910
33,872,501
33,872,501

5,000,000
5,000,000

38,872,501

Adjusted (Php)
12/31/2011

4,710,930
9,500,000

Increase/Decrease (Php)

3,610,930
8,350,000

Percentage
Change

328.27%
726.09%

12,829,677
4,402,787
300,000
31,743,394

(920,323)
3,502,787
14,543,394

-6.69%
389.20%
0.00%

78,549,000
800,000
79,349,000
111,092,394

17,369,000
(200,000)
17,169,000
31,712,394

28.39%
-20.00%

5,528,175
5,206,500
913,910
11,648,585
11,648,585

(7,291,625)
(15,793,500)
(86,090)
(23,171,215)
(23,171,215)

-56.88%
-75.21%
-21.52%

25,000,000
5,000,000
(2,625,000)
4,481,456

0.00%
55.56%
0.00%
0.00%
0.00%

70,000,000
5,000,000
(2,625,000)
4,481,456

16,130,041

(18,689,759)

Prepared by:

Date:

Reviewed by:

Date:

GRACE CO

Working Cash Flow Statem


December 31 2011
ACCOUNT TITLE
OPERATING ACTIVITIES
Net Income before Tax
Adjustments to reconcile net income to net operating income
before working capital changes
Depreciation
Amortization
Bad Debts Expense
Gain on Sale of Securities
Unrealized Gain/Losses
Loss on Obsolescence
Interest Income
Interest Expense
Operating Income Before Capital Changes

Changes in Operating Assets and Liabilities


(Increase) Decrease in Marketable Securities
(Increase) Decrease in Trade and Other Payables
(Increase) Decrease in Merchadise Inventory
(Increase) Decrease in Prepaid Expenses
Increase (Decrease) in Trade and Other Payables
Increase (Decrease) in Income Tax Payable
Cash Generated from Operations
Accrued Expenses Paid
Income Taxes Paid
Net Cash (used) provided by Operating Activities
INVESTING ACTIVITIES
Acquisition of Property, Plant and Equipment
Recognition of Amortization Cost as an Intangible Asset
Sale of an Intangible Asset
PCIB Time Deposit

Net Cash (used) provided by Investing Activities


FINANCING ACTIVITIES
Due to related party
Payment of Notes Payable
Increase in Notes Payable
Subscription Receivable
Issuance of Shares
Dividends Payable
Net Cash (used) provided by Financing Activities

NET CASH
Add: Beginning Cash Balance
CASH BALANCE: DEC 31

GRACE CORP

Cash Flow Statement - Lead Schedule


ecember 31 2011, 2010, 2009
WP
Ref

IS

Adjusted Balance
2009

Adjusted Balance
2010

(11,769,300)

Adjusted Balance
2011

(22,223,916)

rating income

les

les

VB
VB
VB
UB
UB
VB
UB
VC

WBS
WBS
WBS
WBS
WBS
WBS

es

ible Asset

WBS
WBS

230,000

280,000

2,631,000
200,000
497,811

(80,000)
364,500
514,500

(110,000)
445,500
(11,153,800)

(248,853)
112,065
(19,031,893)

#VALUE!
0
0
0
0
0

#VALUE!
0
(9,450,000)
(700,000)
0
14,000,000

(940,000)
0
(4,300,000)
(200,000)
0
7,000,000

#VALUE!

#VALUE!

(17,471,893)

0
0
0

0
61,180,000
0

0
0
0

es

WBS
WBS
WBS
WBS
WBS
WBS

61,180,000

0
0
0
0

0
1,014,000
0
0

11,805,800
0
0
0

1,014,000

11,805,800

#VALUE!
0
#VALUE!

#VALUE!
0
#VALUE!

(5,666,093)
0
(5,666,093)

Prepared by:

Date:

Reviewed by:

Date:

Adjusted Balance
2011

(22,223,916)

2,631,000
200,000
497,811

(248,853)
112,065
(19,031,893)

(940,000)
0
(4,300,000)
(200,000)
0
7,000,000

(17,471,893)

0
0
0

11,805,800
0
0
0
11,805,800

(5,666,093)
0
(5,666,093)

GRACE CO

Proposed Adju
For the Years Ended
Date

Account Title

2011
31-Dec C-1

C-1

Accounts Receivable

C-1

Petty Cash

C-1

Cash Short and Over

Petty Cash

Cash in Bank
Discount on Notes Payable

Notes Payable

Miscellaneous Expense

Cash in Bank
Miscellaneous Expenses

Accounts Receivable

Accounts Receivable - Gwendo Reyes

10

Accounts Receivable - Sampollo Company

11

Accounts Receivable - J.R. Alano Trading

12

Accounts Receivable - Susan de Leon

13

Sales
Output Tax

14

Cash

15

Accounts Receivable - Chad Acosta

16

Sales

17

Sales
Output VAT

18

Accounts Receivable - Ida Company

19

Accounts Receivable - Benitez Merchandising

20

Cash

21

Accounts Receivable

22

Cash

23

Cash

24

Cash

25

Bad Debts Expense

26

27

28

29

GRACE CORPORATION
Proposed Adjusted Journal Entries
For the Years Ended December 31, 2009-2011
Account Title
Petty Cash
Accrued Expense Payable
To record unreplenished expense.

WP Ref
C
N

Accounts Receivable
Petty Cash Fund
To record Advances or I.O.U.s to employees.
Petty Cash
Cash Short and Over
To record cash overage
Cash Short and Over
Miscellaneous Income
To reclassify cash overage to miscellaneous income.
Cash in Bank
Discount on Notes Payable
To record proceeds of promissory note
Miscellaneous Expense
Cash in Bank
To record bank service charge
Cash in Bank
Miscellaneous Expenses
Notes Receivable
To record collection of notes receivable
Accounts Receivable
Cash in Bank
To reverse entry for the receipt of a postdated check.

VB

Accounts Receivable - Gwendo Reyes


Advances from Customers
To reclassify credit balances of Gwendo Reyes
Accounts Receivable - Sampollo Company
Accounts Receivable - J.R. Alano Trading
To reclassify account balances erroneously recorded in wrong SL
Accounts Receivable - J.R. Alano Trading
Accounts Receivable - Sampollo Company
To reclassify payments made by Sampollo OR #110
Accounts Receivable - Susan de Leon
Accounts Receivable - Chad Acosta
To reclassify account balances erroneously recorded in wrong SL
Sales
Output Tax
Accounts Receivable - Susan de Leon
To record overstatement of SI #1258

Accounts Receivable - Susan de Leon


Advances from Customers
To record payment made by Susan. OR #122
Accounts Receivable - Chad Acosta
Accounts Receivable - Susan de Leon
To reclassify payment made by Susan de Leon, OR #112
Sales
Accounts Receivable - Anna Reyes
To derecognize sales made to Anna due to lack of supporting documents
Sales
Output VAT
Accounts Receivable - Benitez Merchandising
To record overstatement of SI #1255
Accounts Receivable - Ida Company
Sales
Output tax
To record understatement of SI #1256

Accounts Receivable - Benitez Merchandising


Sales
Output Tax
To record SI #1266

Accounts Receivable - Benitez Merchandising


To record payment by Benitez OR # 121
Accounts Receivable
Sales
To record sales to Louie Tan

Accounts Receivable
To record payment made by Louie Tan OR #118
Cash
Output Tax
Sales
To record the unrecorded Sales Invoice No. 1264

Output Tax
Sales
To record unrecorded Sales Invoice No. 1265
Bad Debts Expense
Allowance for Bad Debts
To record adjustments to Allowance for Bad Debts

ORATION

ournal Entries
mber 31, 2009-2011
Debit

Credit

Posting Stat

800.00
800.00

2,800.00
2,800.00

1,704.00
1,704.00

1,704.00
1,704.00

7,900,000
2,100,000
10,000,000

2,500
2,500

490,000
10,000
500,000

85,113
85,113

50,000
50,000

730,350
730,350

580,350
580,350

681,000
681,000

1,364
136
1,500

204,475
202,975
1,500

681,000
681,000

300,000
300,000

68
7
75

10
9
1

232,000
210,909
21,091

93,750
93,750

484,000
484,000

484,000
484,000

165,550
15,050
150,500

186,250

16,932
169,318

2,306
2,306

GRACE CORPORATION
Cash Count
December 31, 2011

I. OBJECTIVES
1
2
3

To verify the existence of cash on hand and petty cash fund at year en
To determine that cash on hand and petty cash fund are properly value
To determine that cash on hand and petty cash fund of the client are r

Existence

II. ASSERTIONS

III. PROCEDURES
1
2
3
4
5
6

Performed surprise cash count


Controlled all cash funds and negotiable instruments held by the clien
Performed cash count in the presence of the Cash Custodian
Listed each item in the fund showing the denominations of bills and co
Obtained Cash Custodian's signature to acknowledge the return of item
Reconciled items counted with general ledger balances

IV. FINDINGS

CASH
DENOMINATION
BILLS

500
200
100
50
20

COINS

10

5
1
1

TOTAL BILLS AND COINS


CASH ITEMS
Check for Deposits
Date
12.28.2011
12.30.2011
12.30.2011
12.31.2011
12.31.2011

Maker
Louie Tan
Eagle Contractor
Dynasty Construction
Benitez Merchandising
Susan de Leon

Unreplenished Vouchers
Date
12.10.11
12.10.11
12.18.11
12.20.11
12.21.11
12.29.11

Payee
Luigi's Deli
Mobilshel Gasoline Station
Mr. Jose Castro
MWSS
Bureau of Posts
Mobilshel Gasoline Station

Advances or I.O.U.s
Date
12.29.11
12.29.11

Payee
Maricel Pastor

Jon Sandoval

Total Amount of Fund per Count


Total Amount of Fund per Books or Receipts
Petty Cash Fund per Ledger
Undeposited Collections
OVERAGE

I hereby certify that the above fund was counted in my presence by Rhena

______________

1
2
3
4
5

A check with OR # 119 is erroneously included as P165,560 in the cas

The list of checks for deposit included PNB Check #203 dated January
The unreplenished vouchers are Petty Cash Voucher Nos. 0801-0806.
The telephone bill to PLDT in the Petty Cash Book of P800 is not suppo
Petty Cash Voucher Nos. 0807 and 0808 are Advances and I.O.U.s

Proposed Adjusting Journal Entries:


Petty Cash Fund
Accrued Expense Payable
To correct entry made in recording telephone bill not supported b
Accounts Receivable
Petty Cash Fund
To record Advances or I.O.U.s to employees.
Petty Cash Fund
Miscelleneous Income
To record overage.

LEGEND:

- Computations Verified
- Footed
- Checked Against General Ledger

V. CONCLUSIONS

The existence of the recorded cash and petty cash fund of the client had been

RATION

on hand and petty cash fund at year end


and petty cash fund are properly valued.
and petty cash fund of the client are reflected on the Statement of Financial Position at year end

egotiable instruments held by the client until all the funds have been counted
esence of the Cash Custodian
owing the denominations of bills and coins
ature to acknowledge the return of items counted
general ledger balances

CASH COUNT SHEET


QUANTITY

AMOUNT
1
1
2
3
5

500
200
200
150
100

9
20
50
20

90
100
50
10

40

C-1.4
C-1.4
C-1.4
C-1.4
C-1.4

484,000
165,550
186,250
93,750
204,475

C1.2
C1.2
C1.2
C1.2
C1.2
C1.2

2,000
2,050
250
500
150
2,550

C-1.3
C-1.3

2,550
250

10,000
1,134,025

Payee
Grace
Grace
Grace
Grace
Grace

Corporation
Corporation
Corporation
Corporation
Corporation

Particulars
Representation Expense
Gasoline
Taxi Fare
Water Bill
Stamps
Gasoline

was counted in my presence by Rhenalyn I. Tarucan of WC & Co., on January 5, 2012 at 8:00 AM and the same w
me intact.
_______________________________________

Cashier

eously included as P165,560 in the cash count made by the client instead of P165,550.

cluded PNB Check #203 dated January 15, 2012 is a post-dated check and is not included in the cash count for t
e Petty Cash Voucher Nos. 0801-0806.
e Petty Cash Book of P800 is not supported by a Petty Cash Voucher.
nd 0808 are Advances and I.O.U.s

800

ecording telephone bill not supported by a PCV.


2,800

U.s to employees.
1,704

d petty cash fund of the client had been verified through the cash count sheet. Adjusting entries are recommend

C-1

t year end

TOTAL

1,150

254

1,404

C4

1,134,025

7,500

2,800

1,145,729

1,144,025
1,704

8:00 AM and the same was returned to

ed in the cash count for the year-ended December 31, 2011.

800

2,800

1,704

g entries are recommended.

Prepared by:
RIT
Reviewed by:
LCC

Date:
2/6/2012
Date:
2/26/2012

CASH
Cash account conducted before the start of business on January 5, 2012 at 8:00 AM yielded the
following
COINS
Denominations
P
10.00
5.00
1.00
0.50
0.10

Qty.
9
20
50
20
40

CHECKS
Date
12.28.2011
12.30.2011
12.30.2011
12.31.2011
12.31.2011
01.03.2012

Number
PCIB Check #2255
FEBTC Check #408
PNB Check #1122
PCIB Check #4425
FEBTC Check #775
PNB Check #203 (dated Jan.
15, 2012)

OR
118
119
120
121
122
123

UNUSED STAMPS
11 pieces @ P 5.50
Vouchers for unreplenished expenses and advances were available on this date and found in order.

C-1.1

uary 5, 2012 at 8:00 AM yielded the

CURENCY
Denominations
P

Qty.
1
1
2
3
5

500.00
200.00
100.00
50.00
20.00

Drawer
Louie Tan
Eagle Contractor
Dynasty Construction
Benitez Merchandising
Susan de Leon
Luli Samson

able on this date and found in order.

C1.4

C1.4

Amount
484,000.00
165,560.00
186,250.00
93,750.00
204,475.00
29,725.00

C1
C1
C1
C1
C1

<traced to C-1.4 OR
<traced to C-1.4 OR
<traced to C-1.4 OR
<traced to C-1.4 OR
<traced to C-1.4 OR

PETTY CASH BOO


PETTY CASH FUND
DATE

PAYEE

EXPLANATION

PCV.
NO.

RECEIPTS

PAYMENTS

2011
Dec.1 Balance
8 Luigi's Deli

10,000.00
Refreshment

0800

C1.3

2,000.00

Gasoline

0801

C1.3

2,050.00

15 PLDT

Telephone Bill

0802

18 Co. Messenger

Taxi Fare

0803

20 MWSS

Water Bill

0804

21 Bureau of Posts

Stamps
Gasoline

10 Mobilshel Gasoline
Station

800.00
250.00

0805

C1.3
C1.3
C1.3

0806

C1.3

2,550.00

500.00
150.00

29 Mobilshel Gasoline
Station

10,000.00

8,300.00

C-1.2

TTY CASH BOOK


DISTRIBUTION OF PAYMENTS
REPRESENTATION

LIGHT, WATER
& TELEPHONE

GASOLINE

SUNDRIES
ACCOUNTS

AMOUNT

2,000.00
2,050.00
800.00
Transpostation Expense

250.00

Supplies - Office

150.00

500.00

2,000.00

###

2,550.00

1,300.00

4,600.00

400.00

PETTY CASH VOUCHER

LUIGI'S DELI

TO:

PARTICULARS

Representation Expense

APPROVED BY:

PAID BY:

__________________________

__________________________

PETTY CASH VOUCHER

MOBILSHEL GASOLINE STATION

TO:

PARTICULARS

Gasoline expense for delivery of merchandise


to Benitez Merchandising

APPROVED BY:

PAID BY:

__________________________

__________________________

PETTY CASH VOUCHER


TO:

MR. JOSE CASTRO


PARTICULARS

Transportation expense
taxi fare

APPROVED BY:

PAID BY:

__________________________

__________________________

PETTY CASH VOUCHER


TO:

MANILA WATER WORKS & SEWERAGE SYSTEM (MWSS)


PARTICULARS

Water Bill

APPROVED BY:

PAID BY:

__________________________

__________________________

PETTY CASH VOUCHER


TO:

BUREAU OF POSTS
PARTICULARS

Stamps

APPROVED BY:

PAID BY:

__________________________

__________________________

PETTY CASH VOUCHER

MOBILSHEL GASOLINE STATION

TO:

PARTICULARS

Gasoline expense
premium gasoline

APPROVED BY:

PAID BY:

__________________________

__________________________

PETTY CASH VOUCHER

JON SANDOVAL

TO:

PARTICULARS

I.O.U.

APPROVED BY:

PAID BY:

__________________________

__________________________

PETTY CASH VOUCHER

MARICEL PASTOR

TO:

PARTICULARS

I.O.U.

APPROVED BY:

PAID BY:

__________________________

__________________________

C-1.3
NO.

DATE

December 10, 2011

AMOUNT

TOTAL

2,000.00

2,000.00 C1.2

RECEIVED BY:

_______________

_______________

0801

__________________________
NO.

DATE

0802

December 10, 2011

AMOUNT

TOTAL

2,050.00

2,050.00 C1.2

RECEIVED BY:
__________________________
NO.

DATE

0803

December 18, 2011

AMOUNT

TOTAL

250.00

250.00 C1.2

RECEIVED BY:

_______________

__________________________

0804

NO.

DATE

December 20, 2011

AMOUNT

TOTAL

500.00

500.00 C1.2

RECEIVED BY:

_______________

_______________

__________________________

0805

NO.

DATE

December 21, 2011

AMOUNT

TOTAL

150.00

150.00 C1.2

RECEIVED BY:
__________________________
NO.

DATE

0806

December 29, 2011

AMOUNT

TOTAL

2,550.00

2,550.00 C1.2

RECEIVED BY:

_______________

__________________________

0808

NO.

DATE

<unr

December 29, 2011

AMOUNT

TOTAL

250.00

250.00

RECEIVED BY:

_______________

__________________________
NO.

DATE

0807

December 29, 2011

AMOUNT

TOTAL

2,550.00

2,550.00

RECEIVED BY:

<unr

_______________

__________________________

Grace

OFFICIAL RECEIPT

CORPORATION

No.

12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8

VAT 2011-002-148 | TIN 4004-009-175

Telefax: 632 843 7690 | Website: www.gracecorporatio

Received from:

Date:

Legarda Company

December 1,2011

The sum of:

Invoice no.

Two hundred twenty four thousand five hundred pesos only

1121

In settlement of:
Invoice # 1121
Cash:

Checks:
PNB 481853

224,500.00

Total

224,500.00

Received by:
TOTAL

Grace

OFFICIAL RECEIPT

CORPORATION

No.

12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8

VAT 2011-002-148 | TIN 4004-009-175

Telefax: 632 843 7690 | Website: www.gracecorporatio

Received from:

Date:

Susan de Leon

December 1,2011

The sum of:

Invoice no.

One million thirty eight thousand eight hundred pesos only


In settlement of:

1125
less:

Invoice # 1125

discount

Cash:

Checks:
RCBC 329864

1,038,800.00

Total

1,038,800.00

Received by:
TOTAL

Grac
e

CORPORATION
VAT 2011-002-148 | TIN 4004-009-175

Received from:

OFFICIAL RECEIPT

No.

12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8

Telefax: 632 843 7690 | Website: www.gracecorporatio

Date:

Benitez Merchandising

December 5,2011

The sum of:

Invoice no.

Three hundred sixty two thousand six hundred pesos only


In settlement of:

1125
discount

Invoice # 1135
Cash:

Checks:
SBTC 928421

362,600.00

Total

362,600.00

Received by:
TOTAL

Grac
e

OFFICIAL RECEIPT

CORPORATION

No.

12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8

VAT 2011-002-148 | TIN 4004-009-175

Telefax: 632 843 7690 | Website: www.gracecorporatio

Received from:

Date:

Johann Morales

December 8,2011

The sum of:

Invoice no.

Five hundred thousand pesos only

1133

In settlement of:
Invoice # 1133
Cash:

Checks:
PCIBank 4825

500,000.00

Total

500,000.00

Received by:
TOTAL

Grace

OFFICIAL RECEIPT

CORPORATION

No.

12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8

VAT 2011-002-148 | TIN 4004-009-175

Telefax: 632 843 7690 | Website: www.gracecorporatio

Received from:

Date:

Solomon Enterprises

December 8,2011

The sum of:

Invoice no.

Four hundred ninety thousand pesos only

1149

In settlement of:

less: returns

Invoice # 1149

discount

Cash:

Checks:
CBC 123498

490,000.00

Total

490,000.00

Received by:
TOTAL

Grace

OFFICIAL RECEIPT

CORPORATION
VAT 2011-002-148 | TIN 4004-009-175

Received from:
Eagle Contractors
The sum of:
Two hundred forty one thousans eight hundred eighty eight pesos only

No.

12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8

Telefax: 632 843 7690 | Website: www.gracecorporatio

Date:
December 11,2011
Invoice no.
1251

In settlement of:

less: discount

Invoice # 1251
Cash:

Checks:
RCBC 728465

241,888.00

Total

241,888.00

Received by:
TOTAL

Grace

OFFICIAL RECEIPT

CORPORATION

No.

12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8

VAT 2011-002-148 | TIN 4004-009-175

Telefax: 632 843 7690 | Website: www.gracecorporatio

Received from:

Date:

Ida Coronel

December 12,2011

The sum of:

Invoice no.

Five hundred twenty eight thousand pesos only

1152

In settlement of:
Invoice # 1152
Cash:

Checks:
BPI 249169

528,000.00

Total

528,000.00

Received by:
TOTAL

Grace

OFFICIAL RECEIPT

CORPORATION

No.

12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8

VAT 2011-002-148 | TIN 4004-009-175

Telefax: 632 843 7690 | Website: www.gracecorporatio

Received from:

Date:

Luli Samson

December 12,2011

The sum of:

Invoice no.

Eight hundred forty five thousand pesos only

1231

In settlement of:
Invoice # 1231
Cash:

Checks:
BPI 249169

845,000.00

Total

845,000.00

Received by:
TOTAL

Grace

OFFICIAL RECEIPT

CORPORATION

No.

12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8

VAT 2011-002-148 | TIN 4004-009-175

Telefax: 632 843 7690 | Website: www.gracecorporatio

Received from:

Date:

Valera Company

December 15,2011

The sum of:

Invoice no.

Four hundred ten thousand pesos only

1070

In settlement of:
Invoice # 1070
Cash:

Checks:
RCBC # 876521

410,000.00

Total

410,000.00

Received by:
TOTAL

Grace

OFFICIAL RECEIPT

CORPORATION

No.

12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8

VAT 2011-002-148 | TIN 4004-009-175

Telefax: 632 843 7690 | Website: www.gracecorporatio

Received from:

Date:

Sampollo Company

December 12,2011

The sum of:

Invoice no.

Fifty six thousand eight hundred seventy four pesos only


In settlement of:

1253
less: discount

Invoice # 1253
Cash:

P 56, 874.00

Checks:
P

Total

56,874.00

Received by:
TOTAL

Grace
CORPORATION

VAT 2011-002-148 | TIN 4004-009-175

Received from:
Cora Tayag

OFFICIAL RECEIPT

No.

12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8

Telefax: 632 843 7690 | Website: www.gracecorporatio

Date:
December 17,2011

The sum of:

Invoice no.

Seven hundred fifty seven thousand five hundred pesos only

1100

In settlement of:
Invoice # 1100
Cash:

Checks:
PCIBank 246810

757,500.00

Total

757,500.00

Received by:
TOTAL

Grace

OFFICIAL RECEIPT

CORPORATION

No.

12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8

VAT 2011-002-148 | TIN 4004-009-175

Telefax: 632 843 7690 | Website: www.gracecorporatio

Received from:

Date:

Susan de Leon

December 1,2011

The sum of:

Invoice no.

Six hundred eighty one thousand pesos only

1242

In settlement of:
Invoice # 1242
Cash:

Checks:
RCBC 369125

681,000.00

Total

681,000.00

Received by:
TOTAL

Grace

OFFICIAL RECEIPT

CORPORATION

12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8

VAT 2011-002-148 | TIN 4004-009-175

Telefax: 632 843 7690 | Website: www.gracecorporatio

Received from:

Date:

Benitez Merchandising

December 20,2011

The sum of:

Invoice no.

Nine hundred eighty thousand pesos only

1254

In settlement of:

1255

Invoice # 1254, 1255


Cash:

No.

total
P

less:

Checks:

returns

PCIBank 481265

980,000.00

Total

980,000.00

discounts

Received by:
TOTAL

Grace

OFFICIAL RECEIPT

CORPORATION

No.

12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8

VAT 2011-002-148 | TIN 4004-009-175

Telefax: 632 843 7690 | Website: www.gracecorporatio

Received from:

Date:

Building Blocks, Inc.

December 23,2011

The sum of:

Invoice no.

One hundred eighty seven thousand two hundred pesos only


In settlement of:

1259
1260

Invoice # 1259, 1260


Cash:

Checks:
PNB 510152

187,200.00

Total

187,200.00

Received by:
TOTAL

Grace

OFFICIAL RECEIPT

CORPORATION

No.

12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8

VAT 2011-002-148 | TIN 4004-009-175

Telefax: 632 843 7690 | Website: www.gracecorporatio

Received from:

Date:

Dynasty Construction
The sum of:

Invoice no.

Four thousand six hundred twenty five pesos only

1252

In settlement of:
Invoice # 1252
Cash:

4,625

Checks:
P

Total

4,625.00

Received by:
TOTAL

Grace
CORPORATION

VAT 2011-002-148 | TIN 4004-009-175

Received from:

OFFICIAL RECEIPT

No.

12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8

Telefax: 632 843 7690 | Website: www.gracecorporatio

Date:

M. Paredes

December 26,2011

The sum of:

Invoice no.

Two million six hundred twenty five thousand pesos only


In settlement of:

Subscription
Payment

Subscription Fee
Cash:

Checks:
RCBC 481216

2,625,000.00

Total

2,625,000.00

Received by:
TOTAL

Grace

OFFICIAL RECEIPT

CORPORATION

No.

12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8

VAT 2011-002-148 | TIN 4004-009-175

Telefax: 632 843 7690 | Website: www.gracecorporatio

Received from:

Date:

Luli Samson

December 26,2011

The sum of:

Invoice no.

Eighty five thousand one hundred thirteen pesos only


In settlement of:

1257
less: discount

Invoice # 1257
Cash:

Checks:

Total

85,113.00

85,113.00

Received by:
TOTAL

Grace

OFFICIAL RECEIPT

CORPORATION

12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8

VAT 2011-002-148 | TIN 4004-009-175

Telefax: 632 843 7690 | Website: www.gracecorporatio

Received from:

Date:

Louie Tan

December 28,2011

The sum of:

Invoice no.

Four hundred eighty four thousand pesos only

1240

In settlement of:
Invoice # 1240
Cash:

Checks:
PCIB 2255

No.

484,000.00

Total

484,000.00

Received by:
TOTAL

Grace

OFFICIAL RECEIPT

CORPORATION

No.

12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8

VAT 2011-002-148 | TIN 4004-009-175

Telefax: 632 843 7690 | Website: www.gracecorporatio

Received from:

Date:

Eagle Contractos

December 30,2011

The sum of:

Invoice no.

One hundred sixty five thousand five hundred fifty pesos only

1264

In settlement of:
Invoice # 1264
Cash:

Checks:
FEBTC 408

165,550.00

Total

165,550.00

Received by:
TOTAL

Grace

OFFICIAL RECEIPT

CORPORATION

No.

12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8

VAT 2011-002-148 | TIN 4004-009-175

Telefax: 632 843 7690 | Website: www.gracecorporatio

Received from:

Date:

Dynasty Construction

December 30,2011

The sum of:

Invoice no.

One hundred eighty six thousand two hundred fifty pesos only

1265

In settlement of:
Invoice # 1265
Cash:

Checks:
PNB 1122

186,250.00

Total

186,250.00

Received by:
TOTAL

Grace

OFFICIAL RECEIPT

CORPORATION

No.

12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8

VAT 2011-002-148 | TIN 4004-009-175

Telefax: 632 843 7690 | Website: www.gracecorporatio

Received from:

Date:

Benitez Merchandising

December 31, 2011

The sum of:

Invoice no.

Ninety three thousand seven hundred fifty pesos only

1266

In settlement of:
Cash:

Checks:
PCIB 4425

93,750.00

Total

93,750.00

Received by:
TOTAL

Grace

OFFICIAL RECEIPT

CORPORATION

No.

12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8

VAT 2011-002-148 | TIN 4004-009-175

Telefax: 632 843 7690 | Website: www.gracecorporatio

Received from:

Date:

Susan de Leon

December 31, 2011

The sum of:

Invoice no.

Two hundred four thousand four hundred seventy five pesos only

1258

In settlement of:
Cash:

Checks:
FEBTC 775

204,475.00

Total

204,475.00

Received by:
TOTAL

Grace
CORPORATION

VAT 2011-002-148 | TIN 4004-009-175

Received from:
Luli Samson

OFFICIAL RECEIPT

No.

12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8

Telefax: 632 843 7690 | Website: www.gracecorporatio

Date:
January 3,2005

The sum of:

Invoice no.

Twenty nine thousand seven hundred twenty five pesos only

1268

In settlement of:
Invoice # 1268
Cash:

Checks:
PCIB 2277

29,725.00

Total

29,725.00

Received by:
TOTAL

C-1.4
101

Aquino Avenue, Paranaque City | Tel: 632 843 7689

2 843 7690 | Website: www.gracecorporation.biz.ph

ecember 1,2011
Amount
224,500.00

224,511.00

102

Aquino Avenue, Paranaque City | Tel: 632 843 7689

2 843 7690 | Website: www.gracecorporation.biz.ph

ecember 1,2011
Amount
1,600,000.00
(21,200.00)

1,578,800.00

103

Aquino Avenue, Paranaque City | Tel: 632 843 7689

2 843 7690 | Website: www.gracecorporation.biz.ph

ecember 5,2011
Amount
370,000.00
(7,400.00)

362,600.00

104

Aquino Avenue, Paranaque City | Tel: 632 843 7689

2 843 7690 | Website: www.gracecorporation.biz.ph

ecember 8,2011
Amount
500,000.00

500,000.00

105

Aquino Avenue, Paranaque City | Tel: 632 843 7689

2 843 7690 | Website: www.gracecorporation.biz.ph

ecember 8,2011
Amount
520,000.00
(20,000.00)
(10,000.00)

490,000.00

106

Aquino Avenue, Paranaque City | Tel: 632 843 7689

2 843 7690 | Website: www.gracecorporation.biz.ph

ecember 11,2011
Amount
246,825.00

(4,937.00)

241,888.00

107

Aquino Avenue, Paranaque City | Tel: 632 843 7689

2 843 7690 | Website: www.gracecorporation.biz.ph

ecember 12,2011
Amount
528,000.00

528,000.00

108

Aquino Avenue, Paranaque City | Tel: 632 843 7689

2 843 7690 | Website: www.gracecorporation.biz.ph

ecember 12,2011
Amount
845,000.00

845,000.00

109

Aquino Avenue, Paranaque City | Tel: 632 843 7689

2 843 7690 | Website: www.gracecorporation.biz.ph

ecember 15,2011
Amount
410,000.00

410,000.00

110

Aquino Avenue, Paranaque City | Tel: 632 843 7689

2 843 7690 | Website: www.gracecorporation.biz.ph

ecember 12,2011
Amount
58,035.00
(1,161.00)

56,874.00

111

Aquino Avenue, Paranaque City | Tel: 632 843 7689

2 843 7690 | Website: www.gracecorporation.biz.ph

ecember 17,2011

Amount
757,500.00

757,500.00

112

Aquino Avenue, Paranaque City | Tel: 632 843 7689

2 843 7690 | Website: www.gracecorporation.biz.ph

ecember 1,2011
Amount
681,000.00

681,000.00

113

Aquino Avenue, Paranaque City | Tel: 632 843 7689

2 843 7690 | Website: www.gracecorporation.biz.ph

ecember 20,2011
Amount
711,950.00
309,525.00
1,021,475.00
(21,475.00)
(20,000.00)

2,001,475.00

114

Aquino Avenue, Paranaque City | Tel: 632 843 7689

2 843 7690 | Website: www.gracecorporation.biz.ph

ecember 23,2011
Amount
75,805.00
111,395.00

187,200.00

115

Aquino Avenue, Paranaque City | Tel: 632 843 7689

2 843 7690 | Website: www.gracecorporation.biz.ph

Amount
4,625.00

4,625.00

116

Aquino Avenue, Paranaque City | Tel: 632 843 7689

2 843 7690 | Website: www.gracecorporation.biz.ph

ecember 26,2011
Amount
2,625,000.00

2,625,000.00

117

Aquino Avenue, Paranaque City | Tel: 632 843 7689

2 843 7690 | Website: www.gracecorporation.biz.ph

ecember 26,2011
Amount
86,850.00
(1,737.00)

85,113.00

118

Aquino Avenue, Paranaque City | Tel: 632 843 7689

2 843 7690 | Website: www.gracecorporation.biz.ph

ecember 28,2011
Amount
484,000.00

484,000.00

119

Aquino Avenue, Paranaque City | Tel: 632 843 7689

2 843 7690 | Website: www.gracecorporation.biz.ph

ecember 30,2011
Amount
165,550.00

165,550.00

120

Aquino Avenue, Paranaque City | Tel: 632 843 7689

2 843 7690 | Website: www.gracecorporation.biz.ph

ecember 30,2011
Amount
186,250.00

186,250.00

121

Aquino Avenue, Paranaque City | Tel: 632 843 7689

2 843 7690 | Website: www.gracecorporation.biz.ph

ecember 31, 2011


Amount
93,750.00

93,750.00

122

Aquino Avenue, Paranaque City | Tel: 632 843 7689

2 843 7690 | Website: www.gracecorporation.biz.ph

ecember 31, 2011


Amount
204,475.00

204,475.00

123

Aquino Avenue, Paranaque City | Tel: 632 843 7689

2 843 7690 | Website: www.gracecorporation.biz.ph

Amount
29,725.00

29,736.00

GRACE CORPORATION
Bank Reconciliation
December 31, 2011

I. OBJECTIVES
1
2
3

To ascertain that all the necessary reconciling items are taken into account
To ascertain the accurary of the recorded cash in bank balance and the reconciling items in the books of the company
To ascertain that all reconciling items are actually exisiting

1
2
3

Completeness
Accuracy
Existence

1
2
3
4

Agreed the amounts to the trial balance and/or general ledger and to supporting documentation.
Tied the balances to the bank statement
Clerically tested the totals and subtotals.
Tested the accuracy and completeness of the reconciling items between the bank balance and the general ledger balance by:

II. ASSERTIONS

III. PROCEDURES

- Determined the disposition of individual reconciling items greater than the amount specified in the work step and any unusual rec

- Examined transactions occurring in the account subsequent to period end to determine that they were properly included or exclud
reconciliation

- Determined significant transactions on the subsequent month bank statement that were dated prior to period end are included on
- Examined whether receipts or disbursements are recorded on a timely basis by reviewing the appropriateness of reconciling items
unusual items.

IV. FINDINGS
Balance per Bank Statement

C-2.3

14,267,272

Total

Outstanding Checks

Adjusted balance

14,267,272

Balance per Book


Note Collected by Bank
Proceeds on Promissory Note

(1,255,655)

Total

13,011,617

Postdated Check
Bank Service Charge
Total
Adjusted Balance

Proposed Adjusting Entries:


Cash in Bank
Discount on Notes Payable
Notes Payable

7,900,000
2,100,000
10,000,000
To record proceeds of promissory note

Miscellaneous Expense
Cash in Bank
To record bank service charge

C-2.1
C-2.4
C-2.4

2,500
2,500

C-2.5
C-2.4

Cash in Bank
Miscellaneous Expenses
Notes Receivable
To record collection of notes receivable

490,000
10,000

Accounts Receivable
85,113
Cash in Bank
To reverse entry for the receipt of a postdated check.

500,000

85,113

LEGEND:
3 Traced to Cash Disbursements Book
Computations Verified
Footed
C Cash Lead Schedule
Checked Against General Ledger

IV.CONCLUSION
With the exceptions of the adjusting entries recommended by the auditor, sufficient and appropriate evidence were gathered to support the
assertions made.

C-2

ger balance by:

p and any unusual reconciling items

erly included or excluded from the

d end are included on the reconciliation.


ss of reconciling items and searching any

4,709,230
490,000
7,900,000
13,099,230

(85,113)
(2,500)
(87,613)
13,011,617

hered to support the

Prepared by:
JGN
Reviewed by:
ILW

Date:
2/1/2012
Date:
2/5/2012

ACCOUNT

Cash in Bank

DATE

2011
Nov. 30 Balance
Dec. 30
Balance

ITEM

DEBIT

P
CR 12

1,000,000.00
10,018,100.00
4,709,230.00

C-2.3
ACCOUNT NO.
DATE

ITEM

4709230
Dec. 31
C2

GJ 12

101
CREDIT

6,308,870.00

C-2.3
PCI Bank

STATEMENT OF ACCOUNT

ACCOUNT NO.:

NO. OF CHECKS

4486-9156-80

PAGE NO.:

18

1/1

DEPOSITS

BALANCE

NAME AND ADDRESS:

GRACE CORPORATION
12 Ninoy Aquino Avenue, Paraaque City
CHECKS
DATE

NO.

AMOUNT

2011
Dec. 1

2
6
6
9
10
13

13
16
17
23
23
23
23
28
29

P
12340
12342
12338
12344
12345
12348

100,000.00
123,500.00
200,000.00
143,000.00
300,000.00

12347
12350
12346

87,500.00
500,000.00
34,200.00
114,900.00
972,750.00

12351
12353

1,554,500.00
1,080,000.00

170,500.00
1,263,300.00
362,600.00
990,000.00

RT

769,888.00
500,000.00

CM

1,255,000.00
1,495,374.00

12355

13,250.00

12356
12354
12357
12359
12358
12360

83,300.00
625,000.00
5,000.00
125,315.00
32,500.00
25,000.00
2,500.00

2005
Jan. 5

12387
12349
12352
12365
12366
12362
12363
12367
12360

980,000.00
191,825.00

SC

7,900,000.00
2,625,000.00

CM

490,000.00

CM

6,122,215.00

18,993,487.00

34,200.00
175,000.00
14,000.00
85,000.00
249,750.00
13,325.00
85,000.00
97,000.00
70,000.00

85,113.00
929,550.00

204,475.00
29,725.00

1,396,000.00
1,466,500.00
1,343,000.00
2,406,300.00
2,263,300.00
2,325,900.00
3,315,900.00
3,228,400.00
3,498,288.00
3,964,088.00
3,849,188.00
2,876,438.00
2,876,438.00
2,576,938.00
1,496,938.00
2,992,312.00
2,992,312.00
2,979,062.00
3,959,062.00
4,067,587.00
3,442,587.00
11,337,587.00
13,837,272.00
13,804,772.00
13,779,772.00
14,267,272.00 C2

PCI Bank
NAME AND ADDRESS:

GRACE CORPORATION
12 Ninoy Aquino Avenue, Paranaque City
We have debited your Current Account
No. 4486-9156-80 for service charges
for December.

DEBIT MEMO

PCI Bank
NAME AND ADDRESS:

GRACE CORPORATION
12 Ninoy Aquino Avenue, Paranaque City
We have debited your Current Account No. 4486-9156-80
for return of PCIB check #4825 for P 500,000.00
drawn against insufficient funds

DEBIT MEMO

PCI Bank
NAME AND ADDRESS:

GRACE CORPORATION
12 Ninoy Aquino Avenue, Paranaque City
We have credited your Current Account
No. 4486-9156-80 for collection of notes
receivable P 500,000.00 proceeds.

CREDIT MEMO

PCI Bank
NAME AND ADDRESS:

GRACE CORPORATION
12 Ninoy Aquino Avenue, Paranaque City
We have credited your Current Account
No. 4486-9156-80 for redeposit of PCIB
check #4825 for P 500,000.00

CREDIT MEMO

PCI Bank
NAME AND ADDRESS:

GRACE CORPORATION

12 Ninoy Aquino Avenue, Paranaque City


We have credited your Current Account
No. 4486-9156-80 proceeds of P 10,000,000.00
promissory note discounted at 12%

CREDIT MEMO

C-2.4

DATE:

December 29, 2011

2,500.00 C2

CA 4486-9156-80

ACCOUNT NO.:

DATE:

December 10, 2011

No. 4486-9156-80
500,000.00

ACCOUNT NO.:

500,000.00 C2

CA 4486-9156-80

DATE:

December 29, 2011

490,000.00 C2
E-5

CA 4486-9156-80

ACCOUNT NO.:

DATE:

December 13, 2011

500,000.00

CA 4486-9156-80

ACCOUNT NO.:

DATE:

December 28, 2011

ACCOUNT NO.:

7,900,000.00 C2

CA 4486-9156-80

Page B71

C-2.5
CURRENT ACCOUNT DEPOSIT SLIP
For Cash Deposits and Regular Clearing
only (On-Us and Other Bank's Checks)

PCI Bank

4 4 8 6

ACCOUNT
NUMBER

9 1 5 6
DATE

ACCOUNT
NUMBER

CURRENT ACCOUNT DEPOSIT SLIP


For Cash Deposits and Regular Clearing
only (On-Us and Other Bank's Checks)

PCI Bank

8 0

ACCOUNT
NUMBER

28 December 2011

ACCOUNT
NUMBER

4 4 8 6

GRACE CORPORATION
TELLER'S VALIDATION:

THIS SERVES YOUR RECEIPT WHEN VALIDATED

THIS SERVES YOUR RECEIPT WHEN VALIDATED

THIS DEPOSIT IS SUBJECT TO THE TERMS AND CONDITION COVERING THE ACCOUNT

THIS DEPOSIT IS SUBJECT TO THE TERMS AND CONDITION COVERING THE ACCOUNT

NO. OF PIECES

PLEASE ENDORSE AND LIST EACH CHECK PROPERLY

DENOMINATION

LOCAL CLEARING CHECKS


NAME OF BANK / BRANCH

CHECK NO.

RCBC

481216

500.00

AMOUNT

AMOUNT

1,000.00

2,625,000.00

200.00
100.00
50.00
20.00

CASH DEPOSIT
PCI BANK CHECKS AND OTHER
BANKS' CHECKS

TOTAL

REGIONAL CLEARING AND


RPTW's AND PMO's

TOTAL

Page B71

2,625,000.00

CURRENT ACCOUNT DEPOSIT SLIP


For Cash Deposits and Regular Clearing
only (On-Us and Other Bank's Checks)

4 4 8 6

ACCOUNT
NUMBER

DRAFT/CASHIER'S CHECK

9 1 5 6
DATE

ACCOUNT
NUMBER

8 0

ACCOUNT
NUMBER

28 December 2011

ACCOUNT
NUMBER

4 4 8 6

85,113.00 C2

9 1 5 6
DATE

8 0

5 January 2012

GRACE CORPORATION
TELLER'S VALIDATION:

THIS IS YOUR RECEIPT WHEN VALIDATED

Page B71

CURRENT ACCOUNT DEPOSIT SLIP


For Cash Deposits and Regular Clearing
only (On-Us and Other Bank's Checks)

PCI Bank

TELLER'S VALIDATION:

Page B72

AMOUNT

TOTAL DEPOSIT

GRACE CORPORATION

RECEIVED BY:

DENOMINATION

CHECK DEPOSIT

PCI Bank

PLEASE ENDORSE AND LIST EACH CHECK PROPERLY

TOTAL DEPOSIT

85,113.00

LOCAL CLEARING CHECKS

2,625,000.00

REGIONAL & INTERNATIONAL CLEARING CHECKS - PMO's / RPTW's

THIS IS YOUR RECEIPT WHEN VALIDATED


RECEIVED BY:

THIS DEPOSIT IS SUBJECT TO THE TERMS


AND CONDITIONS COVERING THE ACCOUNT

THIS DEPOSIT IS SUBJECT TO THE TERMS


AND CONDITIONS COVERING THE ACCOUNT

MACHINE PRINT..

MACHINE PRINT..

PCI

PCI

12.28.04
DATE

TELLER NUMBER

2,625,000.00

RECEIPT NUMBER

PHILIPPINE CURRENCY

01.05.05
DATE

TELLER

TELLER NUMBER

85,113.00

RECEIPT NUMBER

PHILIPPINE CURRENCY

TELLER

CURRENT ACCOUNT DEPOSIT SLIP


For Cash Deposits and Regular Clearing
only (On-Us and Other Bank's Checks)

PCI Bank

4 4 8 6

ACCOUNT
NUMBER

9 1 5 6
DATE

ACCOUNT
NUMBER

CURRENT ACCOUNT DEPOSIT SLIP


For Cash Deposits and Regular Clearing
only (On-Us and Other Bank's Checks)

PCI Bank

8 0

ACCOUNT
NUMBER

23 December 2011

ACCOUNT
NUMBER

4 4 8 6

9 1 5 6
DATE

GRACE CORPORATION

8 0

23 December 2011

GRACE CORPORATION

TELLER'S VALIDATION:

TELLER'S VALIDATION:

THIS SERVES YOUR RECEIPT WHEN VALIDATED

THIS SERVES YOUR RECEIPT WHEN VALIDATED

THIS DEPOSIT IS SUBJECT TO THE TERMS AND CONDITION COVERING THE ACCOUNT

THIS DEPOSIT IS SUBJECT TO THE TERMS AND CONDITION COVERING THE ACCOUNT

NO. OF PIECES

PLEASE ENDORSE AND LIST EACH CHECK PROPERLY

DENOMINATION

LOCAL CLEARING CHECKS

Page B72

8 0

5 January 2012

GRACE CORPORATION

TELLER'S VALIDATION:

Page B71

9 1 5 6
DATE

NAME OF BANK / BRANCH

CHECK NO.

PCIB

481265

500.00

AMOUNT

AMOUNT

1,000.00

980,000.00

200.00
100.00
50.00
20.00

CASH DEPOSIT
PCI BANK CHECKS AND OTHER
BANKS' CHECKS

TOTAL

980,000.00

REGIONAL & INTERNATIONAL CLEARING CHECKS - PMO's / RPTW's

PLEASE ENDORSE AND LIST EACH CHECK PROPERLY

CHECK / DRAFT

PNB

TOTAL

REGIONAL CLEARING AND


RPTW's AND PMO's

Page B72

TOTAL DEPOSIT

PCI Bank

P
P

980,000.00

CURRENT ACCOUNT DEPOSIT SLIP


For Cash Deposits and Regular Clearing

4,625.00

LOCAL CLEARING CHECKS


DENOMINATION

AMOUNT

510152

CHECK DEPOSIT

TOTAL DEPOSIT

PCI Bank

187,200.00

187,200.00

191,825.00

CURRENT ACCOUNT DEPOSIT SLIP


For Cash Deposits and Regular Clearing

Page B72

PCI Bank

PCI Bank

only (On-Us and Other Bank's Checks)

4 4 8 6

ACCOUNT
NUMBER

9 1 5 6
DATE

ACCOUNT
NUMBER

8 0

ACCOUNT
NUMBER

23 December 2011

ACCOUNT
NUMBER

only (On-Us and Other Bank's Checks)

4 4 8 6

GRACE CORPORATION

Page B72
Page B73

23 December 2011

TELLER'S VALIDATION:

THIS IS YOUR RECEIPT WHEN VALIDATED

THIS IS YOUR RECEIPT WHEN VALIDATED


RECEIVED BY:

THIS DEPOSIT IS SUBJECT TO THE TERMS


AND CONDITIONS COVERING THE ACCOUNT

THIS DEPOSIT IS SUBJECT TO THE TERMS


AND CONDITIONS COVERING THE ACCOUNT

MACHINE PRINT..

MACHINE PRINT..

PCI

PCI

12.23.04
DATE

TELLER NUMBER

980,000.00

RECEIPT NUMBER

PHILIPPINE CURRENCY

12.23.04
DATE

TELLER

TELLER NUMBER

191,825.00

RECEIPT NUMBER

PHILIPPINE CURRENCY

TELLER

CURRENT ACCOUNT DEPOSIT SLIP


For Cash Deposits and Regular Clearing
only (On-Us and Other Bank's Checks)

PCI Bank

4 4 8 6

ACCOUNT
NUMBER

9 1 5 6
DATE

ACCOUNT
NUMBER

CURRENT ACCOUNT DEPOSIT SLIP


For Cash Deposits and Regular Clearing
only (On-Us and Other Bank's Checks)

PCI Bank

8 0

ACCOUNT
NUMBER

16 December 2011

ACCOUNT
NUMBER

4 4 8 6

9 1 5 6
DATE

GRACE CORPORATION

8 0

23 December 2011

GRACE CORPORATION

TELLER'S VALIDATION:

TELLER'S VALIDATION:

THIS SERVES YOUR RECEIPT WHEN VALIDATED

THIS SERVES YOUR RECEIPT WHEN VALIDATED

THIS DEPOSIT IS SUBJECT TO THE TERMS AND CONDITION COVERING THE ACCOUNT

THIS DEPOSIT IS SUBJECT TO THE TERMS AND CONDITION COVERING THE ACCOUNT

NO. OF PIECES

PLEASE ENDORSE AND LIST EACH CHECK PROPERLY

DENOMINATION

LOCAL CLEARING CHECKS

Page B73

8 0

GRACE CORPORATION

TELLER'S VALIDATION:

RECEIVED BY:

9 1 5 6
DATE

NAME OF BANK / BRANCH

CHECK NO.

BPI
RCBC

500.00

AMOUNT

249169
876521

AMOUNT

1,000.00

845,000.00
410,000.00

200.00
100.00
50.00
20.00

CASH DEPOSIT
PCI BANK CHECKS AND OTHER
BANKS' CHECKS

TOTAL

PLEASE ENDORSE AND LIST EACH CHECK PROPERLY

REGIONAL & INTERNATIONAL CLEARING CHECKS - PMO's / RPTW's

CHECK / DRAFT

DENOMINATION

RCBC
PCIB
REGIONAL CLEARING AND
RPTW's AND PMO's

TOTAL

Page B73

4 4 8 6

9 1 5 6
DATE

ACCOUNT
NUMBER

8 0

ACCOUNT
NUMBER

16 December 2011

ACCOUNT
NUMBER

4 4 8 6

Page B73
Page B74

1,438,500.00

1,495,374.00

8 0

23 December 2011

GRACE CORPORATION
TELLER'S VALIDATION:

THIS IS YOUR RECEIPT WHEN VALIDATED


RECEIVED BY:

THIS DEPOSIT IS SUBJECT TO THE TERMS


AND CONDITIONS COVERING THE ACCOUNT

THIS DEPOSIT IS SUBJECT TO THE TERMS


AND CONDITIONS COVERING THE ACCOUNT

MACHINE PRINT..

MACHINE PRINT..

PCI

PCI

12.16.04
DATE

TELLER NUMBER

1,255,000.00

RECEIPT NUMBER

PHILIPPINE CURRENCY

12.23.04
DATE

TELLER

TELLER NUMBER

1,495,374.00

RECEIPT NUMBER

PHILIPPINE CURRENCY

TELLER

CURRENT ACCOUNT DEPOSIT SLIP


For Cash Deposits and Regular Clearing
only (On-Us and Other Bank's Checks)

PCI Bank

4 4 8 6

9 1 5 6
DATE

ACCOUNT
NUMBER

CURRENT ACCOUNT DEPOSIT SLIP


For Cash Deposits and Regular Clearing
only (On-Us and Other Bank's Checks)

PCI Bank

8 0

ACCOUNT
NUMBER

4 4 8 6

9 December 2011

9 1 5 6
DATE

ACCOUNT
NUMBER

GRACE CORPORATION

13 December 2011

TELLER'S VALIDATION:

THIS SERVES YOUR RECEIPT WHEN VALIDATED

THIS SERVES YOUR RECEIPT WHEN VALIDATED

THIS DEPOSIT IS SUBJECT TO THE TERMS AND CONDITION COVERING THE ACCOUNT

THIS DEPOSIT IS SUBJECT TO THE TERMS AND CONDITION COVERING THE ACCOUNT

PLEASE ENDORSE AND LIST EACH CHECK PROPERLY

PLEASE ENDORSE AND LIST EACH CHECK PROPERLY

LOCAL CLEARING CHECKS


NAME OF BANK / BRANCH

8 0

GRACE CORPORATION

TELLER'S VALIDATION:

Page B74

9 1 5 6
DATE

THIS IS YOUR RECEIPT WHEN VALIDATED

PCIB
CBC

681,000.00
757,500.00

CURRENT ACCOUNT DEPOSIT SLIP


For Cash Deposits and Regular Clearing
only (On-Us and Other Bank's Checks)

PCI Bank

GRACE CORPORATION

ACCOUNT
NUMBER

CHECK DEPOSIT

TELLER'S VALIDATION:

RECEIVED BY:

AMOUNT

369125
246810

TOTAL DEPOSIT

CURRENT ACCOUNT DEPOSIT SLIP


For Cash Deposits and Regular Clearing
only (On-Us and Other Bank's Checks)

PCI Bank
ACCOUNT
NUMBER

1,255,000.00

TOTAL DEPOSIT

56,874.00

LOCAL CLEARING CHECKS

1,255,000.00

LOCAL CLEARING CHECKS

CHECK NO.

4825
123498

AMOUNT

500,000.00
490,000.00

NAME OF BANK / BRANCH

C2

BPI
RCBC

CHECK NO.

249169
728465

AMOUNT

528,000.00
241,888.00

Page B74

PCI BANK CHECKS AND OTHER


BANKS' CHECKS

TOTAL

990,000.00

REGIONAL CLEARING AND


RPTW's AND PMO's

TOTAL

Page B74

990,000.00

CURRENT ACCOUNT DEPOSIT SLIP


For Cash Deposits and Regular Clearing
only (On-Us and Other Bank's Checks)

PCI Bank

4 4 8 6

ACCOUNT
NUMBER

9 1 5 6
DATE

ACCOUNT
NUMBER

REGIONAL CLEARING AND


RPTW's AND PMO's

TOTAL

8 0

CURRENT ACCOUNT DEPOSIT SLIP


For Cash Deposits and Regular Clearing
only (On-Us and Other Bank's Checks)

9 December 2011

4 4 8 6

ACCOUNT
NUMBER

Page B74
Page B75

THIS IS YOUR RECEIPT WHEN VALIDATED


RECEIVED BY:

AND CONDITIONS COVERING THE ACCOUNT

THIS DEPOSIT IS SUBJECT TO THE TERMS


AND CONDITIONS COVERING THE ACCOUNT

MACHINE PRINT..

MACHINE PRINT..

PCI

PCI

12.09.04

TELLER NUMBER

990,000.00

RECEIPT NUMBER

PHILIPPINE CURRENCY

12.13.04
DATE

TELLER

CURRENT ACCOUNT DEPOSIT SLIP


For Cash Deposits and Regular Clearing
only (On-Us and Other Bank's Checks)

PCI Bank

769,888.00

RECEIPT NUMBER

PHILIPPINE CURRENCY

4 4 8 6

9 1 5 6
DATE

CURRENT ACCOUNT DEPOSIT SLIP


For Cash Deposits and Regular Clearing
only (On-Us and Other Bank's Checks)

PCI Bank

8 0

6 December 2011

4 4 8 6

ACCOUNT
NUMBER

9 1 5 6
DATE

ACCOUNT
NUMBER

GRACE CORPORATION

2 December 2011

TELLER'S VALIDATION:

THIS SERVES YOUR RECEIPT WHEN VALIDATED

THIS SERVES YOUR RECEIPT WHEN VALIDATED

THIS DEPOSIT IS SUBJECT TO THE TERMS AND CONDITION COVERING THE ACCOUNT

THIS DEPOSIT IS SUBJECT TO THE TERMS AND CONDITION COVERING THE ACCOUNT

PLEASE ENDORSE AND LIST EACH CHECK PROPERLY

PLEASE ENDORSE AND LIST EACH CHECK PROPERLY

LOCAL CLEARING CHECKS


NAME OF BANK / BRANCH

LOCAL CLEARING CHECKS

CHECK NO.

SBTC

AMOUNT

928421

PCI BANK CHECKS AND OTHER


BANKS' CHECKS

TOTAL

NAME OF BANK / BRANCH

362,600.00

REGIONAL CLEARING AND


RPTW's AND PMO's

362,600.00

TOTAL DEPOSIT

362,600.00

CURRENT ACCOUNT DEPOSIT SLIP


For Cash Deposits and Regular Clearing
only (On-Us and Other Bank's Checks)

PCI Bank

4 4 8 6

9 1 5 6
DATE

ACCOUNT
NUMBER

AMOUNT

481853
329864

PCI BANK CHECKS AND OTHER


BANKS' CHECKS

TOTAL

224,500.00
1,038,800.00

1,263,300.00

REGIONAL & INTERNATIONAL CLEARING CHECKS - PMO's / RPTW's

P
P

CHECK NO.

PNB
RCBC

REGIONAL & INTERNATIONAL CLEARING CHECKS - PMO's / RPTW's

TOTAL

8 0

GRACE CORPORATION

TELLER'S VALIDATION:

Page B75

TELLER NUMBER

TELLER

ACCOUNT
NUMBER

Page B75

13 December 2011

GRACE CORPORATION

THIS DEPOSIT IS SUBJECT TO THE TERMS

ACCOUNT
NUMBER

REGIONAL CLEARING AND


RPTW's AND PMO's

TOTAL

8 0

6 December 2011

P
P

TOTAL DEPOSIT

ACCOUNT
NUMBER

1,263,300.00

CURRENT ACCOUNT DEPOSIT SLIP


For Cash Deposits and Regular Clearing
only (On-Us and Other Bank's Checks)

PCI Bank

4 4 8 6

9 1 5 6
DATE

ACCOUNT
NUMBER

GRACE CORPORATION

8 0

2 December 2011

GRACE CORPORATION

TELLER'S VALIDATION:

TELLER'S VALIDATION:

THIS IS YOUR RECEIPT WHEN VALIDATED

Page B75

8 0

TELLER'S VALIDATION:

DATE

THIS IS YOUR RECEIPT WHEN VALIDATED


RECEIVED BY:

THIS DEPOSIT IS SUBJECT TO THE TERMS


AND CONDITIONS COVERING THE ACCOUNT

THIS DEPOSIT IS SUBJECT TO THE TERMS


AND CONDITIONS COVERING THE ACCOUNT

MACHINE PRINT..

MACHINE PRINT..

PCI

PCI

12.06.04
DATE

TELLER

9 1 5 6
DATE

ACCOUNT
NUMBER

THIS IS YOUR RECEIPT WHEN VALIDATED

RECEIVED BY:

769,888.00

PCI Bank

TELLER'S VALIDATION:

ACCOUNT
NUMBER

769,888.00

TOTAL DEPOSIT

GRACE CORPORATION

RECEIVED BY:

REGIONAL & INTERNATIONAL CLEARING CHECKS - PMO's / RPTW's

TOTAL DEPOSIT

PCI BANK CHECKS AND OTHER


BANKS' CHECKS

TOTAL

REGIONAL & INTERNATIONAL CLEARING CHECKS - PMO's / RPTW's

TELLER NUMBER

P
RECEIPT NUMBER

362,600.00
PHILIPPINE CURRENCY

12.02.04
DATE

TELLER

TELLER NUMBER

P
RECEIPT NUMBER

1,263,300.00
PHILIPPINE CURRENCY

GRACE CORPORATION
Bank Reconcilliation
November 30, 2011
Balance per Bank
Add Undeposited Collection

Less Outstanding Checks


Date
11/28/2011
11/29/2011
11/25/2011
Balance per Ledger

Check #
12340
12342
12344

Amount
100,000.00 C2.3
123,500.00 C2.3
143,000.00 C2.3

C-2.6
P

1,396,000.00
170,500.00

566,500.00
P

1,000,000.00

GRACE CORPORATION
Bank Confirmation
December 31, 2011

I. OBJECTIVES
1
2
3

To determine whether cash in bank exists at year-end and cash-related transactions occur within the y
To determine that all cash balances of the client are reflected on the balance sheet at year-end.
To determine that cash balances are available for sure without restrictions, if with restrictions,
determine if it is properly indicated in the balance sheet.

1
2

Existence
Rights and Obligations

II. ASSERTIONS

III. PROCEDURES
1
2
3

IV. FINDINGS

Send bank confirmation request to PCI bank where the client has an account.
Obtain the reply from PCI bank.
Reconcile the reply from the bank with bank reconciliation and the bank statement.

V. CONCLUSIONS
No exceptions noted.

occur within the year.


at year-end.
estrictions,

C-3

Prepared by:
LCTC
Reviewed by:

Date:
2/4/2012
Date:

ILW

2/5/2012

Re:

1. We hereby report that at the close of business on

DECEMBER 31, 2011 our records showed the following balances to the

CREDIT

of the abovementioned client:


AMOUNT

DESCRIPTION

INTEREST

ACCOUNT NUMBER

14,267,272 Regular Checking Acct.

RATE (P.A.)

PAID UP TO

775

Regular Checking Acct.


Savings Acct.

1 year%

6,500,000 Time Deposits

18%

2. Direct liabilities, assets and related balances of said clients as at the

5. Other accounts with the bank on that date were:

date above mentioned date were as follows: (attached details by LC)

(details attached)*

a)
b)
c)
d)

AMOUNT

ACCOUNT

maturity

PESO

FOREIGN CURRENCY

Acceptance
Drafts

Securities held for safekeeping


Items held for collection
Trust accounts
Others (specify)

Trust Receipts
Marginal Deposits
Special Time Deposits
Import Letters of Credit
Domestic Letters of Credit
3. We further report that the acove-mentioned client was directly liable to us by way of overdrafts, loans, etc. at the close of business on that date as follows:
AMOUNT

DESCRIPTION OF LIABILITY

10,000,000 Loans
Other (Specify)

DATE GRANTED

DUE DATE

2011

2012

12.28

12.28

INTEREST
RATE (P.A.)

21%

C-3.1
Grace Corporation

ST

RESTRICTION ON WITHDRAWAL OF AMOUNT AND OTHER


REMARKS

PAID UP TO

1 year%
maturity

Due Date: June 30, 2012

>C3

h the bank on that date were:

s held for safekeeping


d for collection

INTEREST
PAID UP TO

DESCRIPTION OF COLLATERALS, LIENS, ENDORSERS, ETC.


OTHER REMARKS

2012
12.28

Land

>C3

GRACE CORPORATION
Analytical Procedures
December 31, 2011

I. OBJECTIVES
1

To be able to evaluate the fluctuations or unusual changes on the balance of cash and cash equivalent account.

2
3

To ensure cash at bank stated on the reconciliation is accurate.


To assess whether amounts and other data relating to recorded transactions and events have been recorded appropriately.

Accuracy

1
2

Compared the difference between the audited balance of cash of the current year from the audited balance of the preceding year (Balance of
2010 from 2009 and Balance of 2011 from 2010).
The differences on the account balances where expressed in percentage by diving the variance from the prior balance of an account.

Journal entries of transactions and supporting documents related to cash such as petty cash voucher and bank reconcillation were reviewed

II. ASSERTIONS

III. PROCEDURES

account balances to evaluate the differences on the

IV. FINDINGS
Cash
This account consists of:

2010

Percentage

2011

Cash in Bank
Petty Cash
Total

1,000,000

1201.16%

C2

13,011,617

100,000

-98.96%

C1

1,040

1,102,010

1081%

13,014,668

The significant increase in the total cash balance from 2010 to 2011 was primarily caused by the proceeds the company received from its borrowing.

V. CONCLUSION
No exceptions noted. Sufficient and appropriate evidence were gathered to support the assertions made.
Prepared by:
MZB
Reviewed by:
ILW

C-4

Date:
2/1/2012
Date:
2/5/2012

GRACE CORPORATION
Accounts Receivable General and Subsidiary Ledger Reconciliation
December 31, 2011

I. OBJECTIVES
1
2
3

To ascertain that all transactions affecting accounts receivable are recorded


To ascertain the accuracy of recording of accounts receivable transactions
To ascertain that accounts receivable transactions are actually existing

1
2
3

Completeness
Accuracy
Existence

1
2
3
4
5
6
7
8
9

Obtained the Accounts Receivable Schedule from the client


Reconciled accounts receivable beginning balance in subsidiary ledger with general ledger
Tested footings and cross footings of sales invoices
Checked accuracy of the accounts receivable general ledger
Vouched and traced sales book to sales invoices, or vice versa
Vouched and traced cash receipts book to official receipts, or vice versa
Vouched the accounts receivable subsidiary ledgers to sales invoices and official receipts
Footed debit and credit columns of subsidiary ledger records.
Reconciled subsidiary ledgers to the general ledger

II. ASSERTIONS

III. PROCEDURES

IV. FINDINGS

WP
Ref
Rex Enterprises
Louie Tan
Eagle Contractors
Valera Company
Ida Coronel
Alberto & Associates, CPAs
Legarda Company
Cora Tayag
Dynasty Construction
Anna Reyes-employee
Gwendo Reyes
Benitez Merchandising
Lighthouse Commercial
Building Blocks, Inc.
Solomon Enterprises
Carlo Santos
Chad Acosta
J.R. Alano
Susan de Leon
Roces, Adriano & Salas, CPAs
R.V. Castro & Co.
Johann Morales
Centeno, Antonio & Tantoco, CPA
Luli Samson

E-1.2
E-1.2
E-1.2
E-1.2
E-1.2
E-1.2
E-1.2
E-1.2
E-1.2
E-1.2
E-1.2
E-1.2
E-1.2
E-1.2
E-1.2
E-1.2
E-1.2
E-1.2
E-1.2
E-1.2
E-1.2
E-1.2
E-1.2
E-1.2

Unadjusted Balances
Dr.
1,700,000
1,284,000
546,825
410,000
666,285
150,000
224,500
1,047,375
54,625
546,825
300,000
1,391,775
186,500
762,200
520,000
264,000
681,000
1,600,000
1,264,475
1,700,000
1,224,500
970,000
736,000
1,713,500

12/31/11
Cr.

246,825
410,000
528,000
224,500
757,500
4,625
246,825
350,000
1,391,775
187,200
520,000
681,000
1,060,000

970,000
1,713,500

Total Balances

Adjustments
Dr.

1,700,000
1,284,000
300,000
138,285
150,000
289,875
50,000
300,000
-50,000
186,500
575,000
264,000
1,600,000
204,475
1,700,000
1,224,500
736,000
-

Cr.
484,000

10

300,000
50,000
232,000

681,000
681,000

93,825

681,000
885,475

J.R. Alano Trading

E-1.2

730,350

580,350

Sampollo Company
Total Balances

150,000
-

20,674,735

9,872,100

Net Accounts Receivable - Subsidiary Ledger

730,350

730,350

580,350

2,954,710

3,755,000

2,954,710

3,755,000

10,802,635

Accounts Receivable - General Ledger


Net Accounts Receivable - General Ledger

10,802,635

580,350

10,318,635

E-1.1

10,318,635

Differences GL to SL
To adjust GL to SL - Unrecorded Sales to Louie Tan

TOTAL ADJUSTED ACCOUNTS RECEIVABLE

ADJUSTING JOURNAL ENTRIES


a.

b.

c.

d.

Accounts Receivable - Gwendo Reyes


Advances from Customers
To reclassify credit balance of Gwendo Reyes

50,000
50,000

Accounts Receivable - Sampollo Company


Accounts Receivable - J.R. Alano Trading
To reclassify account balances erroneously recorded in wrong SL

730,350

Accounts Receivable - J.R. Alano Trading


Accounts Receivable - Sampollo Company
To reclassify payments made by Sampollo OR #110

580,350

Accounts Receivable - Susan de Leon


Accounts Receivable - Chad Acosta
To reclassify account balances erroneously recorded in wrong SL

681,000

730,350

580,350

681,000

e.

Sales
Output Tax

1,364
136
Accounts Receivable - Susan de Leon
To record overstatement of SI #1258

f.

Cash

1,500

204,475
Accounts Receivable - Susan de Leon
Advances from Customers
To record payment made by Susan. OR #122

g.

g.

202,975
1,500

Accounts Receivable - Chad Acosta


Accounts Receivable - Susan de Leon
To reclassify payment made by Susan de Leon, OR #112

681,000

Sales

300,000

681,000

Accounts Receivable - Anna Reyes

300,000

To derecognize sales made to Anna due to lack of supporting documents


h.

Sales
Output VAT

68
7
Accounts Receivable - Benitez Merchandising
To record overstatement of SI #1255

i.

j.

Accounts Receivable - Ida Company


Sales
Output tax
To record understatement of SI #1256
Accounts Receivable - Benitez Merchandising
Sales
Output Tax

75

10
9
1

232,000
210,909
21,091

To record SI #1266
k.

Cash

93,750
Accounts Receivable - Benitez Merchandising
To record payment by Benitez OR # 121

l.

m.

93,750

Accounts Receivable
Sales
To record sales to Louie Tan

484,000

Cash

484,000
Accounts Receivable
To record payment made by Louie Tan OR #118

484,000

484,000

Additionally, the following errors were noted:


1.
An amount of P1,060,000 was erroneously recorded as P1,600,000 in OR #102 but was recorded properly in subsidiary ledger
2.
References to SI #1261 and #1262 in Cora Tayag's subsidiary ledger were erroneously refered to SI #1161 and #1162.
3.
Cross footing and footing was not properly done so a slide error was committed in SI #1252. Total amount of SI should be P4,625 but
reflected as P46.25. The correct amount was properly recorded in subsidiary ledger.

III. CONCLUSION
With the exceptions of the adjusting entries and corrections recommended by the auditor, sufficient and appropriate evidence were gathered to
support the assertions made.
Prepared by:
MGR
Reviewed by:
JGN

E-1

Adjusted Balances
1,700,000
800,000
300,000
138,295
150,000
289,875
50,000
138,175
186,500
575,000
264,000
1,600,000
1,700,000
1,224,500
736,000
-

E-4
E-4
E-4
E-4
E-4
E-4
E-4
E-4
E-4
E-4
E-4
E-4
E-4
E-4
E-4
E-4
E-4
E-4
E-4
E-4
E-4
E-4
E-4
E-4

E-4
150,000 E-4
-

10,002,345
10,002,345
9,518,345
9,518,345
484,000
484,000
0.00
10,002,345 E-4.2

e P4,625 but

e were gathered to
Date:
2/1/2012
Date:
2/5/2012

ACCOUNT

DATE

Accounts Receivable
ITEM

2011
Nov. 30 Balance
Dec. 31

ACCOUNT NO.

DEBIT

P
SJ 12

Balance
- Computations Verified
- Footed and Cross Footed

DATE

15,316,000.00
2,786,445.00

10,318,635.00

E-1

Dec. 5
8
31
13

ITEM

GJ 11
GJ 11
CR 12
GJ 11

104
CREDIT

20,000.00
470,000.00
7,272,335.00
21,475.00

E-1.1

ACCOUNTS RECEIVABLE SUBSIDIARY LEDGERS


NAME:
ADDRESS:

DATE

Rex Enterprises
33 Teresa St., Metro Manila
PARTICULARS

Sept. 15

NAME:
ADDRESS:

DATE

ADDRESS:

DATE

Louie Tan
40 Bambang St., Metro Manila
PARTICULARS

ADDRESS:

DATE

Eagle Contractors
11 Forbes St., Makati
PARTICULARS

ADDRESS:

DATE

PARTICULARS

ADDRESS:

DATE

2011
Sept. 15

DEBIT

PARTICULARS

246,825.00

DEBIT

ACCOUNT NO.:

CREDIT

410,000.00
410,000.00

DEBIT

ACCOUNT NO.:

CREDIT

528,000.00
138,285.00
528,000.00

Alberto & Associates, CPAs


128 Pebble Road, Mandaluyong, MM
PARTICULARS

CREDIT

300,000.00
246,825.00

Ida Coronel
63 Manotoc St., Quezon City

2011
Nov. 30 SI 1152
Dec. 15 SI 1256
12 OR 107

NAME:

CREDIT

ACCOUNT NO.:

Valera Company
705 Aurora Bldg., Cubao, Quezon City

2011
Nov. 18 SI 1070
Dec. 15 OR 109

NAME:

DEBIT

ACCOUNT NO.:

1,284,000.00

2011
Nov. 20
Dec. 1 SI 1251
11 OR 106

NAME:

CREDIT

1,700,000.00

2011
Nov. 30

NAME:

DEBIT

ACCOUNT NO.:

DEBIT

150,000.00

ACCOUNT NO.:

CREDIT

NAME:
ADDRESS:

DATE

Legarda Company
23 Hidalgo, Binondo, Manila
PARTICULARS

DEBIT

2011
Nov. 19 SI 1121
Dec. 1 OR 101

NAME:
ADDRESS:

DATE

224,500.00

DEBIT

2011
Nov. 27 SI 1100
Dec. 17 OR 111
27 SI 1161-1162

NAME:
ADDRESS:

DATE

ADDRESS:

DATE

757,500.00

DEBIT

2011
Nov. 20
Dec. 1 SI 1251
11 OR 106

NAME:
ADDRESS:

DATE

2011
Oct. 30
Nov. 5 OR 86

NAME:
ADDRESS:

DATE

ACCOUNT NO.:

DEBIT

2011
Nov. 28 SI 1135
Dec. 5 OR 103

CREDIT

300,000.00
246,825.00
246,825.00

DEBIT

ACCOUNT NO.:

CREDIT

300,000.00
350,000.00

Benitez Merchandising
582 Kamagong St., Makati City
PARTICULARS

CREDIT

4,625.00

Gwendo Reyes
85 Cantada St., Diliman, Quezon City
PARTICULARS

ACCOUNT NO.:

50,000.00
4,625.00

Anna Reyes - employee


16 Legarda St., Manila
PARTICULARS

CREDIT

289,875.00

2011
Nov. 8
Dec.
3 SI 1252
23 OR 115

NAME:

ACCOUNT NO.:

757,500.00

Dynasty Construction
36 Rizal Avenue, Sta. Cruz, Manila
PARTICULARS

CREDIT

224,500.00

Cora Tayag
1642 Reyes Avenue, Manila
PARTICULARS

ACCOUNT NO.:

DEBIT

ACCOUNT NO.:

CREDIT

370,000.00
370,000.00

10 SI 1254 - 1255
1,021,775.00
13 Sales returns & allowances
OR 113

NAME:
ADDRESS:

DATE

Lighthouse Commercial
785 Ayala Avenue, Makati City
PARTICULARS

2011
Mar. 21
Apr. 19

NAME:
ADDRESS:

DATE

ADDRESS:

DATE

Building Blocks, Inc.


220 Ortigas St., Mandaluyong
PARTICULARS

DEBIT

ADDRESS:

DATE

PARTICULARS

DEBIT

Carlo Santos
25 Lumot St., Tondo, Manila
PARTICULARS

ADDRESS:

DATE

ADDRESS:

DATE

2011
Oct. 5

CREDIT

DEBIT

ACCOUNT NO.:

CREDIT

20,000.00
500,000.00

ACCOUNT NO.:

CREDIT

264,000.00

Chad Acosta
85 Laong-Laan St., Metro Manila
PARTICULARS

2011
Nov. 25 SI 1242
Dec. 18 OR 112

NAME:

ACCOUNT NO.:

187,200.00

Solomon Enterprises
326 Quirino Avenue, Baclaran

2011
June 3

NAME:

CREDIT

575,000.00
75,805.00
111,395.00

2011
Nov. 30 SI 1149
520,000.00
Dec. 5 Sales returns & allowances
8 OR 105

NAME:

ACCOUNT NO.:

100,000.00
86,500.00

2011
Nov. 19
Dec. 23 SI 1259
SI 1260
23 OR 114

NAME:

DEBIT

21,475.00
1,000,000.00

DEBIT

CREDIT

681,000.00
681,000.00

J. R. Alano
162 Laong-Laan St., Metro Manila
PARTICULARS

ACCOUNT NO.:

DEBIT

1,600,000.00

ACCOUNT NO.:

CREDIT

NAME:
ADDRESS:

DATE

Susan de Leon
482 Rizal Avenue, Metro Manila
PARTICULARS

2011
Nov. 27 SI 1125
Dec. 1 OR 102
22 SI 1258

NAME:
ADDRESS:

DATE

ADDRESS:

DATE

PARTICULARS

ADDRESS:

DATE

1,060,000.00
1,060,000.00
204,475.00

DEBIT

R.V. Castro & Co.


1856 Ayala Avenue, Makati City
PARTICULARS

DEBIT

ADDRESS:

DATE

Johann Morales
2000 C.M. Recto Avenue, Manila
PARTICULARS

DEBIT

Centeno, Antonio & Tantoco, CPA


296 Frisco St., Novaliches
PARTICULARS

2011
Dec 29 SI 1263

NAME:
ADDRESS:

DATE

DEBIT

CREDIT

PARTICULARS

J. R. Alano Trading

ACCOUNT NO.:

CREDIT

500,000.00
470,000.00

ACCOUNT NO.:

CREDIT

736,000.00

Luli Samson
852 Buendia Avenue, Makati City

2011
Nov. 29 SI 1231
Dec. 15 OR 108
20 SI 1257
27 OR 117

NAME:

ACCOUNT NO.:

1,000,000.00
224,500.00

2011
Nov. 29 SI 1133
970,000.00
Dec. 8 OR
converted to 60-day 12% note

NAME:

CREDIT

1,700,000.00

2011
Sept. 20
Nov. 30

NAME:

CREDIT

Roces Adriano & Salas, CPAs


ACCOUNT NO.:
Rm. 307 ABC Bldg., Ayala Avenue, Makati City

2011
Nov. 20

NAME:

DEBIT

ACCOUNT NO.:

DEBIT

ACCOUNT NO.:

CREDIT

845,000.00
845,000.00
868,500.00
868,500.00

ACCOUNT NO.:

ADDRESS:

DATE

555 Ilocos St., Metro Manila


PARTICULARS

2011
Nov. 8
Dec. 7 SI 1253
OR 110

LEGEND:
- Footed and Cross Footed

DEBIT

CREDIT

150,000.00
580,350.00
580,350.00

E-1.2

ARY LEDGERS
101

BALANCE

1,700,000.00

102

BALANCE

1,284,000.00

103

BALANCE

300,000.00
546,825.00
300,000.00

104

BALANCE

410,000.00

105

BALANCE

528,000.00
666,285.00
138,285.00

106

BALANCE

150,000.00

107

BALANCE

224,500.00
-

108

BALANCE

757,500.00
289,875.00

109

BALANCE

50,000.00
54,625.00
50,000.00

111

BALANCE

300,000.00
546,825.00
300,000.00

112

BALANCE

300,000.00
(50,000.00)

113

BALANCE

370,000.00

1,021,475.00
1,000,000.00
- -

114

BALANCE

100,000.00
186,500.00

115

BALANCE

675,000.00
650,805.00
762,200.00
575,000.00

117

BALANCE

520,000.00
500,000.00
- -

118

BALANCE

264,000.00

119

BALANCE

681,000.00
-

120

BALANCE

1,600,000.00

121

BALANCE

1,060,000.00
204,475.00

123

BALANCE

1,700,000.00

124

BALANCE

1,000,000.00
1,224,500.00

125

BALANCE

970,000.00
470,000.00
- -

126

BALANCE

736,000.00

127

BALANCE

845,000.00
868,500.00
-

128

BALANCE

150,000.00
208,350.00
150,000.00

SALES BOOK
DEBIT
DATE

SOLD TO

TERMS

INV. NO.

2/10. n/30

1251

246,825.00

224,386.00

3 Dynasty Construction

2/10. n/30

1252

4,625.00

4,205.00

7 Sampollo Company

2/10. n/30

1253

58,035.00

52,759.00

2/10. n/30

1254

711,950.00

647,227.00

1255

309,525.00

281,386.00

ACCOUNTS
RECEIVABLE

CASH SALES

CREDIT SALES

2004
Dec. 1 Eagle Contractors

10 Benitez Merchandising
15 Ida Coronel

2/10. n/30

1256

138,285.00

125,714.00

17 Luli Samson

2/10. n/30

1257

86,850.00

78,955.00

22 Susan de Leon

2/10. n/30

1258

204,475.00

Cash

1259

75,805.00

68,914.00

1260

111,395.00

101,268.00

23 Building Blocks, Inc.


Building Blocks, Inc.
27 Cora Tayag

2/10. n/30

29 Centeno, Antonio & Tantoco

2/10. n/30

1261

185,886.00

208,600.00

189,636.00

1262

81,275.00

73,886.00

1263

736,000.00

669,091.00

2,786,445.00
(104)

187,200.00

2,703,313.00
(3001)

E-1.3
CREDIT
OUTPUT TAX

22,439.00
420.00
5,276.00
64,723.00
28,139.00
12,571.00
7,895.00
18,589.00
6,891.00
10,127.00
18,964.00
7,389.00
66,909.00
270,332.00
(1008)

CASH RECEIPTS BOOK


DATE

RECEIVED FROM

EXPLANATION

OR#

BANK

SALES DISCOUNT

DR.

DR.

ACCOUNTS RECEIVABLE (CR.)

CASH SALES

AMOUNT

CR.

2011
Dec. 1 Legarda

SI

1121

101

224,500.00

Susan de Leon

SI

1125

102

5 Benitez Merch.

SI

1135

103

362,600.00

8 Johann Morales

SI

1133

104

500,000.00

Solomon Ent.

SI

1149

105

490,000.00

11 Eagle Contractors

SI

1251

106

241,888.00

12 Ida Coronel

SI

1152

107

15 Luli Samson

SI

1231

Velera Company

SI

17 Sampollo Company

1,038,800.00 P

224,500.00

21,200.00

1,060,000.00

7,400.00

370,000.00

500,000.00

10,000.00

500,000.00

4,937.00

246,825.00

528,000.00

528,000.00

108

845,000.00

845,000.00

1070

109

410,000.00

410,000.00

SI

1253

110

56,874.00

58,035.00

Cora Tayag

SI

1100

111

757,500.00

757,500.00

18 Susan de Leon

SI

1242

112

681,000.00

681,000.00

20 Benitez Merch.

SI 12541255

113

980,000.00

1,000,000.00

23 Building Blocks, Inc.

SI 1259 &
1260

114

187,200.00

1,161.00

20,000.00

187,200.00

SUNDRY (CR.)
ACCT. NAME

Dynasty Construction
26 M. Paredes
27 Luli Samson

SI

1252

Subs. For 50,000


shares
SI

1257

115

4,625.00

116

2,625,000.00

117

85,113.00

1,737.00

10,018,100.00 P

66,435.00

4,625.00
Subs. Rec'ble
86,850.00

7,272,335.00 P

(101)

(3002)

(104)

187,200.00

E-1.4
SUNDRY (CR.)
F

AMOUNT

2003

2,625,000.00

2,625,000.00

Grace

INVOICE

No.

CORPORATION
VAT 2011-002-148 | TIN 4004-009-175

12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690
Website: www.gracecorporation.biz.ph

Date

1 December 2011

Charged to:
Delivered to:

Eagle Contractors
11 Forbes St., Makati City

Job Order No.


P. O. No.
Terms

Quantity

Unit

Description

1,250
250
10
20
150
200
750
750

box
box
box
box
ream
ream
piece
piece

Plain Pencil - Mongol


Charcoal Pencil - Steadler
Silver Paper Clips
Blackie Carbon Paper
Whitey Bond Paper
Milky Onion Skin
Bic Ballpen - Black
Bic Ballpen - Blue

400

piece

Bic Ballpen - Red

2/10, n/30

Unit Price

101.50
130.50
50.00
145.00
188.50
159.50
12.50
12.50
12.50
TOTAL

12% interest per annum is to be charged on all overdue accounts, plus 23%
on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has
submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked.
legal action arising out of this transaction. Without in any way attempting to
divert on any other court or courts, returned goods will not be accepted
without written authority from our office, the above merchandise have been Received by:
carefully counted, checked and packed, packages delivered by carrier should
be checked with those recorded above.

Customer/Receiver

Grace

INVOICE

No.

CORPORATION

VAT 2011-002-148 | TIN 4004-009-175


12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690
Website: www.gracecorporation.biz.ph

Date

3 December 2011

Dynasty Construction
Delivered to: 36 Rizal Ave., Sta. Crux, Manila
Charged to:

Job Order No.


P. O. No.
Terms

Quantity

350
350
60

Unit

piece
piece
bottle

Description

Fastener
Folder - regular
Elmer's Glue

Unit Price

1.50
4.00
35.00

2/10, n/30

20

box

Roll-O Typewriter Ribbon

30.00
TOTAL

12% interest per annum is to be charged on all overdue accounts, plus 23%
on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has
submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked.
legal action arising out of this transaction. Without in any way attempting to
divert on any other court or courts, returned goods will not be accepted
without written authority from our office, the above merchandise have been Received by:
carefully counted, checked and packed, packages delivered by carrier should
be checked with those recorded above.

Customer/Receiver

Grace

INVOICE

No.

CORPORATION

VAT 2011-002-148 | TIN 4004-009-175


12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690
Website: www.gracecorporation.biz.ph

Date

7 December 2011

Charged to:
Delivered to:

Sampollo Company
312 Arden St., Paranaque City

Job Order No.


P. O. No.
Terms

Quantity

Unit

70
70
100
20
80
50

bottle
piece
ream
box
ream
pads

50

pads

Description

2/10, n/30

Unit Price

Quink Ink
P
Pilot Fountain Pen
Whitey Bond Paper
Blackie Carbon Paper
Milky Onion Skin
10 Column Worksheet - Verna

82.50
150.00
188.50
145.00
159.50
72.50

12 Column Worksheet - Verna

72.50
TOTAL

12% interest per annum is to be charged on all overdue accounts, plus 23%
on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has
submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked.
legal action arising out of this transaction. Without in any way attempting to
divert on any other court or courts, returned goods will not be accepted
without written authority from our office, the above merchandise have been Received by:
carefully counted, checked and packed, packages delivered by carrier should
be checked with those recorded above.

Customer/Receiver

Grace

INVOICE

No.

CORPORATION

VAT 2011-002-148 | TIN 4004-009-175


12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690
Website: www.gracecorporation.biz.ph

Date

10 December 2011

Charged to:
Delivered to:

Benitez Merchandising
582 Kamagong St., Makati City

Job Order No.


P. O. No.
Terms

Quantity

800
700
500
500
500
500
1,500
500
700
300

Unit

box
box
pad
pad
pad
pad
pad
ream
ream
roll

Description

Plain Pencil - Mongol


P
Chrcoal Pencil - Staedler
16 column worksheet - verne
14 column worksheet - verne
12 column worksheet - verne
10 column worksheet - verne
Yello paper - Old Mill
Bond Paper - Whitey
Onion Skin - Milky
Cartolina

Unit Price

101.50
130.50
72.50
72.50
72.50
72.50
43.50
188.50
159.50
12.50

2/10, n/30

2,500
250
500
500

meter
ream
piece
piece

Plastic Cover
Art Paper
Folder - Regular
Folder - Long

25.00
210.00
4.00
5.00
TOTAL

12% interest per annum is to be charged on all overdue accounts, plus 23%
on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has
submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked.
legal action arising out of this transaction. Without in any way attempting to
divert on any other court or courts, returned goods will not be accepted
without written authority from our office, the above merchandise have been Received by:
carefully counted, checked and packed, packages delivered by carrier should
be checked with those recorded above.

Customer/Receiver

Grace

INVOICE

No.

CORPORATION

VAT 2011-002-148 | TIN 4004-009-175


12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690
Website: www.gracecorporation.biz.ph

Date

10 December 2011

Benitez Marchandising
Delivered to: 582 Kamagog St. Makati City
Charged to:

Job Order No.


P. O. No.
Terms

Quantity

100
150
300
150
240
300
1,500
1,000
2,500
2,500
2,500
1,000
1,500
150

Unit

box
box
bottle
box
box
pair
piece
piece
piece
piece
piece
piece
pads
bottle

Description

2/10, n/30

Unit Price

Plain pencil- mongol


thumbtacks - golden
P
Elemer's glue
Carbon paper - blackie
Typewriter Ribbon - Roll-o
scissors
thick notebook
thin notebook
Bic ballpen - black
Bic ballpen - blue
Bic Ballpen - red
Fastener
Intermediate Pad - old mill
Ink - Quink

50.00
58.00
35.00
145.00
30.00
17.50
47.00
40.00
12.50
12.50
12.50
1.50
22.00
82.00
TOTAL

12% interest per annum is to be charged on all overdue accounts, plus 23%
on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has
submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked.
legal action arising out of this transaction. Without in any way attempting to
divert on any other court or courts, returned goods will not be accepted
without written authority from our office, the above merchandise have been Received by:
carefully counted, checked and packed, packages delivered by carrier should
be checked with those recorded above.

Customer/Receiver

Grace

CORPORATION

INVOICE

No.

VAT 2011-002-148 | TIN 4004-009-175


12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690
Website: www.gracecorporation.biz.ph

Date

15 December 2011

Ida Coronel
Delivered to: 63 Manotoc, St., QC
Charged to:

Job Order No.


P. O. No.
Terms

Quantity

200
50
20
20
150
300
500
400
500

Unit

pair
piece
box
box
roll
pad
pad
pad
pad

Description

scissors
Fountain pen - pilot
thumbtacks - golden
paper clips - silver
cartolina
16 column worksheet 17 column worksheet 18 column worksheet 19 column worksheet -

2/10, n/30

Unit Price

17.50
150.00
58.50
50.00
12.50
72.50
72.50
72.50
72.50

verna
verna
verna
verna

TOTAL
12% interest per annum is to be charged on all overdue accounts, plus 23%
on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has
submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked.
legal action arising out of this transaction. Without in any way attempting to
divert on any other court or courts, returned goods will not be accepted
without written authority from our office, the above merchandise have been Received by:
carefully counted, checked and packed, packages delivered by carrier should
be checked with those recorded above.

Customer/Receiver

Grace

INVOICE

No.

CORPORATION

VAT 2011-002-148 | TIN 4004-009-175


12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690
Website: www.gracecorporation.biz.ph

Date

17 December 2011

Luli Samson
Delivered to: 852 Buendia Ave., Makati City
Charged to:

Job Order No.


P. O. No.
Terms

Quantity

250
450
100
100
50
300
300

Unit

Description

pads
pads
ream
ream
pair
piece
piece

Intermediate pad- old mill


yelloe paper - old mill
onion skin - milky
bond paper - whitey
scissors
thick notebook
thin notebook

2/10, n/30

Unit Price

22.00
43.50
159.50
188.50
17.50
47.00
40.00
TOTAL

12% interest per annum is to be charged on all overdue accounts, plus 23%
on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has
submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked.
legal action arising out of this transaction. Without in any way attempting to
divert on any other court or courts, returned goods will not be accepted
without written authority from our office, the above merchandise have been Received by:
carefully counted, checked and packed, packages delivered by carrier should
be checked with those recorded above.

Customer/Receiver

Grace

INVOICE

No.

CORPORATION

VAT 2011-002-148 | TIN 4004-009-175


12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690
Website: www.gracecorporation.biz.ph

Date

23 December 2011

susan de Leon
Delivered to: 482 Rizal Ave., MM
Charged to:

Job Order No.


P. O. No.
Terms

Quantity

1,500
1,250
1,300
450
250
250
300
300
500
150
200
150

Unit

pads
pads
meter
roll
piece
piece
piece
piece
piece
pair
ream
bottle

Description

2/10, n/30

Unit Price

intermediate pad - old mill


yellow paper - old mill
P
plastic cover
cartolina
folder - regular
folder - long
Leaf notebook - thick
bind notebook - thin
fastener
scissors
art paper
Elmer's glue

22.00
43.50
25.00
12.50
4.00
5.00
47.00
40.00
1.50
7.50
210.00
35.00
TOTAL

12% interest per annum is to be charged on all overdue accounts, plus 23%
on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has
submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked.
legal action arising out of this transaction. Without in any way attempting to
divert on any other court or courts, returned goods will not be accepted
without written authority from our office, the above merchandise have been Received by:
carefully counted, checked and packed, packages delivered by carrier should
be checked with those recorded above.

Customer/Receiver

Grace

INVOICE

No.

CORPORATION

VAT 2011-002-148 | TIN 4004-009-175


12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690
Website: www.gracecorporation.biz.ph

Date

23 December 2011

Building blocks, inc


Delivered to: 220 Ortigas, Mandaluyong
Charged to:

Job Order No.


P. O. No.
Terms

Quantity

Unit

240
120

box
box

Description

Plain Pencil - Mongol


Charcoal Pencil - Staedler

Unit Price

###
###

cash

30
20
40
60
250
250
150
600
600
80

box
box
box
box
piece
piece
piece
piece
piece
piece

Silver - Paper Clips


Golden Thumbtacks
Blackie Carbon Paper
Roll-O Typewriter Ribbon
Bic Ballpen - Black
Bic Ballpen - Blue
Bic Ballpen - Red
Folder - Long
Folder - Regular
Pilot Fountain Pen

###
###
###
###
###
###
###
###
###
###
TOTAL

12% interest per annum is to be charged on all overdue accounts, plus 23%
on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has
submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked.
legal action arising out of this transaction. Without in any way attempting to
divert on any other court or courts, returned goods will not be accepted
without written authority from our office, the above merchandise have been Received by:
carefully counted, checked and packed, packages delivered by carrier should
be checked with those recorded above.

Customer/Receiver

Grace

INVOICE

No.

CORPORATION

VAT 2011-002-148 | TIN 4004-009-175


12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690
Website: www.gracecorporation.biz.ph

Date

23 December 2011

building blocks, inc.


Delivered to: 220 Ortigas, Mandaluyong
Charged to:

Job Order No.


P. O. No.
Terms

Quantity

Unit

1200
150
60
200
360

piece
bottle
bottle
ream
ream

Description

cash

Unit Price

Fastener
Quink Ink
Elmer's Glue
Bond Paper - Whitey
Onion Skin - Milky

#
###
###
###
###
TOTAL

12% interest per annum is to be charged on all overdue accounts, plus 23%
on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has
submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked.
legal action arising out of this transaction. Without in any way attempting to
divert on any other court or courts, returned goods will not be accepted
without written authority from our office, the above merchandise have been Received by:
carefully counted, checked and packed, packages delivered by carrier should
be checked with those recorded above.

Customer/Receiver

Grace

INVOICE

No.

CORPORATION

VAT 2011-002-148 | TIN 4004-009-175


12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690

Date

27 December 2011

Website: www.gracecorporation.biz.ph
D

Cora Tayag
Delivered to: 1642 Reyes Avenue, Manila
Charged to:

Job Order No.


P. O. No.
Terms

Quantity

50
100
50
50
500
500
250
120
500
500
500
500

Unit

box
box
box
box
pad
pad
roll
bottle
pad
pad
pad
pad

Description

2/10 n/30

Unit Price

Plain Pencil - Mongol


Charcoal Pencil - Staedler
Silver - Paper Clips
Golden Thumbtacks
Intermediate Pad - Old Mill
Yellow Paper - Old Mill
Cartolina
Elmer's Glue
10 Column Worksheet - Vernal
12 Column Worksheet - Vernal
14 Column Worksheet - Vernal
16 Column Worksheet - Vernal

###
###
###
###
###
###
###
###
###
###
###
###
TOTAL

12% interest per annum is to be charged on all overdue accounts, plus 23%
on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has
submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked.
legal action arising out of this transaction. Without in any way attempting to
divert on any other court or courts, returned goods will not be accepted
without written authority from our office, the above merchandise have been Received by:
carefully counted, checked and packed, packages delivered by carrier should
be checked with those recorded above.

Customer/Receiver

Grace

INVOICE

No.

CORPORATION

VAT 2011-002-148 | TIN 4004-009-175


12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690
Website: www.gracecorporation.biz.ph

Date

27 December 2011

Cora Tayag
Delivered to: 1642 Reyes Avenue, Manila
Charged to:

Job Order No.


P. O. No.
Terms

Quantity

750
750
750
450
800

Unit

piece
piece
piece
piece
piece

Description

Bic Ballpen - Black


Bic Ballpen - Blue
Bic Ballpen - Red
Thick Notebook
Thin Notebook

2/10 n/30

Unit Price

12.50
12.50
12.50
47.00
40.00

TOTAL
12% interest per annum is to be charged on all overdue accounts, plus 23%
on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has
submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked.
legal action arising out of this transaction. Without in any way attempting to
divert on any other court or courts, returned goods will not be accepted
without written authority from our office, the above merchandise have been Received by:
carefully counted, checked and packed, packages delivered by carrier should
be checked with those recorded above.

Customer/Receiver

Grace

INVOICE

No.

CORPORATION

VAT 2011-002-148 | TIN 4004-009-175


12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690
Website: www.gracecorporation.biz.ph

Date

29 December 2011

Centeno, Antonio and Tantoo, CPAs


Delivered to: 296 Frisco St., Novaliches
Charged to:

Job Order No.


P. O. No.
Terms

Quantity

1,500
1,250
2,000
1,250
100
500
250
1,250
1,250
750
1,200
600
60

Unit

pad
pad
pad
pad
box
box
box
piece
piece
piece
pad
ream
box

Description

cash

Unit Price

10-Column Worksheet - Verna P


12 column worksheet - verna
14 column worksheet - verna
16 column worksheet - verne
Typewriter ribbon
Plain pencil- Mongol
Charcoal pencil- Staedler
Bic ballpen- Black
Bic Ballpen- Blue
Bic Ballpen- Red
Yellow paper - Old Mill
Bond Paper - Whitey
Carbon Paper - Blackie

72.50
72.50
72.50
72.50
30.00
101.50
130.50
12.50
12.50
12.50
43.50
188.50
145.00
TOTAL

12% interest per annum is to be charged on all overdue accounts, plus 23%
on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has
submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked.
legal action arising out of this transaction. Without in any way attempting to
divert on any other court or courts, returned goods will not be accepted
without written authority from our office, the above merchandise have been Received by:
carefully counted, checked and packed, packages delivered by carrier should
be checked with those recorded above.

Customer/Receiver

Grace

INVOICE

No.

CORPORATION

VAT 2011-002-148 | TIN 4004-009-175


12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690
Website: www.gracecorporation.biz.ph

Date

30 December 2011

Eagle Contractors
Delivered to: 11 Forbes St., Makati City
Charged to:

Job Order No.


P. O. No.
Terms

Quantity

Unit

Description

Unit Price

2/10, n/30

500
300
1,500
1,500
500

box
ream
piece
piece
piece

Charcoal Pencil - Staedler


Bond Paper- Whitey
Bic Ballpen - Black
Bic Ballpen - Blue
Bic Ballpen - Red

130.50
188.50
12.50
12.50
12.50
TOTAL

12% interest per annum is to be charged on all overdue accounts, plus 23%
on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has
submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked.
legal action arising out of this transaction. Without in any way attempting to
divert on any other court or courts, returned goods will not be accepted
without written authority from our office, the above merchandise have been Received by:
carefully counted, checked and packed, packages delivered by carrier should
be checked with those recorded above.

Customer/Receiver

Grace

INVOICE

No.

CORPORATION

VAT 2011-002-148 | TIN 4004-009-175


12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690
Website: www.gracecorporation.biz.ph

Date

30 December 2011

Dynasty Construction
Delivered to: 30 Rizal Ave., Sta. Cruz, Manila
Charged to:

Job Order No.


P. O. No.
Terms

Quantity

1,600
1,200
500

Unit

bottle
box
realm

Description

cash

Unit Price

elmer's glue
Typewriter Ribbon- Roll-O
Bond Paper- Whitey

35.00
30.00
188.50

TOTAL
12% interest per annum is to be charged on all overdue accounts, plus 23%
on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has
submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked.
legal action arising out of this transaction. Without in any way attempting to
divert on any other court or courts, returned goods will not be accepted
without written authority from our office, the above merchandise have been Received by:
carefully counted, checked and packed, packages delivered by carrier should
be checked with those recorded above.

Customer/Receiver

Grace

INVOICE

No.

CORPORATION

VAT 2011-002-148 | TIN 4004-009-175


12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690
Website: www.gracecorporation.biz.ph

Date

Charged to:

Benitez Merchandising

Job Order No.

30 December 2011

Delivered to:

582 Kamagong St., Makati City

P. O. No.

2/10, n/30

Terms

Quantity

1,000
1,000

Unit

pad
ream

Description

Yellow Paper- Old Mill


Bond Paper - Whitey

Unit Price

43.50
188.50

TOTAL
12% interest per annum is to be charged on all overdue accounts, plus 23%
on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has
submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked.
legal action arising out of this transaction. Without in any way attempting to
divert on any other court or courts, returned goods will not be accepted
without written authority from our office, the above merchandise have been Received by:
carefully counted, checked and packed, packages delivered by carrier should
be checked with those recorded above.

Customer/Receiver

Grace

INVOICE

No.

CORPORATION

VAT 2011-002-148 | TIN 4004-009-175


12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690
Website: www.gracecorporation.biz.ph

Date

3 January 2012

Benitez Marketing
Delivered to: 582 Kamagong St., Makati City
Charged to:

Job Order No.


P. O. No.
Terms

Quantity

2,500
3,000
2,000

Unit

piece
piece
piece

Description

2/10, n/30

Unit Price

Bic Ballpen - black


Bic Ballpen - blue
Bic Ballpen -red

12.50
12.50
12.50
TOTAL

12% interest per annum is to be charged on all overdue accounts, plus 23%
on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has
submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked.
legal action arising out of this transaction. Without in any way attempting to
divert on any other court or courts, returned goods will not be accepted
without written authority from our office, the above merchandise have been Received by:
carefully counted, checked and packed, packages delivered by carrier should
be checked with those recorded above.

Customer/Receiver

Grace

INVOICE

No.

CORPORATION

VAT 2011-002-148 | TIN 4004-009-175


12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690
Website: www.gracecorporation.biz.ph

Date

3 January 2012

Luli Samson
Delivered to: 852 Buendia Ave., Makati City
Charged to:

Job Order No.


P. O. No.
Terms

Quantity

250
100

Unit

pad
ream

Description

yellow paper - old mill


bond paper - whitey

2/10, n/30

Unit Price

43.50
188.50
TOTAL

12% interest per annum is to be charged on all overdue accounts, plus 23%
on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has
submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked.
legal action arising out of this transaction. Without in any way attempting to
divert on any other court or courts, returned goods will not be accepted
without written authority from our office, the above merchandise have been Received by:
carefully counted, checked and packed, packages delivered by carrier should
be checked with those recorded above.

Customer/Receiver

- Footed and Cross Footed

E-1.5
1251
Date

1 December 2011

304
Job Order No.
P. O. No.

2/10, n/30

Terms

Amount

126,875.00
32,625.00
500.00
2,900.00
28,275.00
31,900.00
9,375.00
9,375.00
5,000.00

246,825.00

erchandise covered by this invoice has


inspected, verified and checked.

Customer/Receiver

1252
Date

3 December 2011

305
Job Order No.
P. O. No.
Terms

2/10, n/30

Amount

525.00
1,400.00
2,100.00

600.00
P

erchandise covered by this invoice has


inspected, verified and checked.

Customer/Receiver

4,625.00

1253
Date

7 December 2011

306
Job Order No.
P. O. No.

2/10, n/30

Terms

Amount

5,775.00
10,500.00
18,850.00
2,900.00
12,760.00
3,625.00
3,625.00

58,035.00

erchandise covered by this invoice has


inspected, verified and checked.

Customer/Receiver

1254
Date

10 December 2011

307
Job Order No.
P. O. No.
Terms

2/10, n/30

Amount

81,200.00
91,350.00
36,250.00
36,250.00
36,250.00
36,250.00
65,250.00
94,250.00
111,650.00
3,750.00

62,500.00
52,500.00
2,000.00
2,500.00
P

711,950.00

erchandise covered by this invoice has


inspected, verified and checked.

Customer/Receiver

1255
Date

10 December 2011

308
Job Order No.
P. O. No.
Terms

2/10, n/30

Amount

5,000.00
8,700.00
10,500.00
21,750.00
7,200.00
5,250.00
70,500.00
40,000.00
31,250.00
31,250.00
31,250.00
1,500.00
33,000.00
12,300.00
309,450.00

erchandise covered by this invoice has


inspected, verified and checked.

Customer/Receiver

1256

Date

15 December 2011

309
Job Order No.
P. O. No.

2/10, n/30

Terms

Amount

3,500.00
7,500.00
1,170.00
1,000.00
1,875.00
21,750.00
36,250.00
29,000.00
36,250.00
138,295.00

erchandise covered by this invoice has


inspected, verified and checked.

Customer/Receiver

1257
Date

17 December 2011

310
Job Order No.
P. O. No.
Terms

2/10, n/30

Amount

5,500.00
19,575.00
15,950.00
18,850.00
875.00
14,100.00
12,000.00
P

86,850.00

erchandise covered by this invoice has


inspected, verified and checked.

Customer/Receiver

1258
Date

23 December 2011

311
Job Order No.
P. O. No.

2/10, n/30

Terms

Amount

33,000.00
54,375.00
32,500.00
5,625.00
1,000.00
1,250.00
14,100.00
12,000.00
750.00
1,125.00
42,000.00
5,250.00
P

202,975.00

erchandise covered by this invoice has


inspected, verified and checked.

Customer/Receiver

1259
Date

23 December 2011

312
Job Order No.
P. O. No.
Terms

cash

Amount
24360.00
15660.00

1500.00
1160.00
5800.00
1800.00
3125.00
3125.00
1875.00
3000.00
2400.00
12000.00

75,805.00

erchandise covered by this invoice has


inspected, verified and checked.

Customer/Receiver

1260
Date

23 December 2011

313
Job Order No.
P. O. No.
Terms

cash

Amount

1,800.00
12,375.00
2,100.00
37,700.00
57,420.00
P

111,395.00

erchandise covered by this invoice has


inspected, verified and checked.

Customer/Receiver

1261
Date

27 December 2011

314
Job Order No.
P. O. No.

2/10 n/30

Terms

Amount

5,075.00
13,050.00
2,500.00
2,900.00
11,000.00
21,750.00
3,125.00
4,200.00
36,250.00
36,250.00
36,250.00
36,250.00
P

208,600.00

erchandise covered by this invoice has


inspected, verified and checked.

Customer/Receiver

1262
Date

27 December 2011

315
Job Order No.
P. O. No.
Terms

2/10 n/30

Amount

9,375.00
9,375.00
9,375.00
21,150.00
32,000.00

81,275.00

erchandise covered by this invoice has


inspected, verified and checked.

Customer/Receiver

1263
Date

29 December 2011

316
Job Order No.
P. O. No.

cash

Terms

Amount

108,750.00
90,625.00
145,000.00
90,625.00
3,000.00
50,750.00
32,625.00
15,625.00
15,625.00
9,375.00
52,200.00
113,100.00
8,700.00

736,000.00

erchandise covered by this invoice has


inspected, verified and checked.

Customer/Receiver

1264
Date

30 December 2011

317
Job Order No.
P. O. No.
Terms

2/10, n/30

Amount

65,250.00
56,550.00
18,750.00
18,750.00
6,250.00

165,550.00

erchandise covered by this invoice has


inspected, verified and checked.

Customer/Receiver

1265
Date

30 December 2011

318
Job Order No.
P. O. No.

cash

Terms

Amount

56,000.00
36,000.00
94,250.00
--------------

186,250.00

erchandise covered by this invoice has


inspected, verified and checked.

Customer/Receiver

1266
Date

30 December 2011

319
Job Order No.

P. O. No.

2/10, n/30

Terms

Amount

43,500.00
188,500.00
-------------

232,000.00

erchandise covered by this invoice has


inspected, verified and checked.

Customer/Receiver

1267
Date

3 January 2012

320
Job Order No.
P. O. No.
Terms

2/10, n/30

Amount

31,250.00
37,500.00
25,000.00
P

93,750.00

erchandise covered by this invoice has


inspected, verified and checked.

Customer/Receiver

1268
Date

3 January 2012

321

Job Order No.


P. O. No.
Terms

2/10, n/30

Amount

10,875.00
18,850.00
P

29,725.00

erchandise covered by this invoice has


inspected, verified and checked.

Customer/Receiver

GRACE CORPORATION
Accounts Receivable Confirmation
December 31, 2011

I. OBJECTIVES
1.
2.

To verify the accuracy and existence of the accounts receivable balances


To determine whether the company indeed has the rights over the amounts owed to the company.

1.
2.

Existence
Rights and Obligations

1.
2.
3.
4.
5.

Obtained a list of the company's customers (or check subsidiary ledger for accounts receivable)
Performed sampling from the list, taking into consideration the materiality of the accounts.
Constructed confirmation letter and send it to the selected customers.
Collected the replies from the customers.
Reviewed the accuracy of the account balances based on the customer's replies.

II. ASSERTIONS

III. PROCEDURES

IV. FINDINGS
Customer Name
R.V Castro
Ida Coronel
Alberto & Associates, CPA

Conf #
AR-1 E-1.2
AR-2 E-1.2
AR-3 E-1.2

Balance per SL
1,224,500
138,285
150,000

a
a
a

E-2.1
E-2.1

Correct Balance
1,224,500
150,000

Difference
-

Louie Tan

AR-4

E-1.2

1,284,000

Valera Company

AR-5

E-1.2

Legarda Company

AR-6

E-1.2

Gwendo Reyes
REX Enterprise
J.R. Alano Trading

AR-7
AR-8
AR-9

E-2.1

800,000

484,000

E-1.2
E-1.2
E-1.2

-50,000
1,700,000
1,600,000

a
a
a

E-2.1
E-2.1
E-2.1

-50,000
1,700,000
1,600,000

Roces, Adriano & Salas,


CPAs

AR-10 E-1.2

1,700,000

E-2.1

1,700,000

Cora Tayag

AR-11 E-1.2

289,875

Susan de Leon

AR-12 E-1.2

204,475

E-2.1

204,475

Anna Reyes

AR-13 E-1.2

300,000

E-2.1

300,000

Dynasty Construction

AR-14 E-1.2

50,000

Benitez Merchandising

AR-15 E-1.2

Centeno, Antonio & Tantoco,


CPAs

AR-16 E-1.2

736,000

E-2.1

736,000

Building Blocks Inc


Eagle Contractors

AR-17 E-1.2
AR-18 E-1.2

575,000
300,000

a
a

E-2.1

575,000
-

LEGENDS:
a

Vouched SL balances with the OR and SI balances

V. CONCLUSION
Aside from the necessary adjusting entry and recording of payment suggested, the transactions were properly recorded.

Prepared by:
JGN
Reviewed by:
MGM

E-2

Remarks
Balance is OK.
Returned by Post Office.
Balance is OK.

The 484,000 has been paid per OR


#118 on December 28, 2011+J30.
Necessary adjusting entry must be
made.
No response. (Receivable is fully paid)
No response. (Receivable is fully paid)
Balance is OK.
Balance is OK. (Not yet due)
Balance is OK.
Balance is OK.
Returned by Post Office.
Balance was paid full on Dec 31, 2011
per OR #122. Proper recording of
payment must be made.

Anna Reyes replied to the


confirmation letter sent to her,
confirming her balance. However, the
auditor feels doubtful as to the
authenticity of this transaction.
Therefore, her account was excluded
in the computation of the Account
Receivable balance.
No response.
No response. (Receivable is fully paid)
Recorded balance is correct but
balance reflected in the confirmation
letter was 73,600.
Balance is OK.
No response.

properly recorded.

Date:
2/25/2012
Date:
3/1/2012

THE FOLLOWING BALANCE DUE FROM ME (US) IS CORRECT:


DUE TO:

AS OF:

GRACE CORPORATION

THE FOLLOWING BALANCE DUE FROM ME (US) IS CORREC


AMOUNT:

December 31, 2011

Signature:

DUE TO:

289,975.00

E-2

Conf.No. AR-11

GRACE CORPORATION

Signature:

Position:

Position:

CORA TAYAG

IDA C

1642 Reyes Avenue, Manila

63 Manotoc St

Returned by Post Office

Returned

THE FOLLOWING BALANCE DUE FROM ME (US) IS CORRECT:


DUE TO:

AS OF:

GRACE CORPORATION

THE FOLLOWING BALANCE DUE FROM ME (US) IS CORREC


AMOUNT:

December 31, 2011

Signature:

REX Enterprises

Position:

Chief Accountant

DUE TO:

P
Conf.No. AR-8

1,700,000.00

E-2

GRACE CORPORATION
Signature:

J. R. Alano Trading

Position:

Chief Accountant

Balance is OK but this is not yet due.

THE FOLLOWING BALANCE DUE FROM ME (US) IS CORRECT:

THE FOLLOWING BALANCE DUE FROM ME (US) IS CORREC

DUE TO:

AS OF:

GRACE CORPORATION

AMOUNT:

December 31, 2011

Signature:

Roces, Adriano & Salas, CPAs

Position:

Chief Accountant

DUE TO:

P
Conf.No. AR-10

1,700,000.00

E-2

GRACE CORPORATION
Signature:

Susan de Leon

Position:

This is correct.

The above amou

Dec. 31, 201


Returned by Post Office

Returned

THE FOLLOWING BALANCE DUE FROM ME (US) IS CORRECT:


DUE TO:

AS OF:

GRACE CORPORATION

THE FOLLOWING BALANCE DUE FROM ME (US) IS CORREC


AMOUNT:

December 31, 2011

Signature:

Alberto & Associates, CPAs

Position:

Chief Accountant

DUE TO:

150,000.00

E-2

Conf.No. AR-3

GRACE CORPORATION
Signature:

R.V. Castro & Co.

Position:

Chief Accountant

OK

Balance

Returned by Post Office

Returned

THE FOLLOWING BALANCE DUE FROM ME (US) IS CORRECT:


DUE TO:

AS OF:

GRACE CORPORATION
Signature:

THE FOLLOWING BALANCE DUE FROM ME (US) IS CORREC


AMOUNT:

December 31, 2011

Louie Tan

DUE TO:

1,284,000.00

E-2

Conf.No. AR-4

Position:

GRACE CORPORATION
Signature:

Gwendo Reyes

Position:

Comptroller

P 484,000 has been paid per OR# 118

Bala

on December 28, 2011.


Returned by Post Office

Returned

THE FOLLOWING BALANCE DUE FROM ME (US) IS CORRECT:


DUE TO:

AS OF:

GRACE CORPORATION
Signature:

THE FOLLOWING BALANCE DUE FROM ME (US) IS CORREC


AMOUNT:

December 31, 2011

Centeno, Antonio & Tantoco, CPAs

DUE TO:

P
Conf.No. AR-16

73,600.00

E-2

GRACE CORPORATION
Signature:

Building Blocks, Inc.

Position:

Chief Accountant

Position:

Balance is not correct.

Chief Accountant

Balanc

Iy should be P 736,000.00.
Returned by Post Office

Returned

THE FOLLOWING BALANCE DUE FROM ME (US) IS CORRECT:


DUE TO:

AS OF:

GRACE CORPORATION

AMOUNT:

December 31, 2011

300,000.00

E-2

No Reply:
1. Eagle Contractors

Signature:

Anna Reyes

Conf.No. AR-19

2. Valera Company
3. Legarda Company
4. Dynasty Construction

Position:

5. Benitez Merchandising
6. J. R. Alano
Balance OK.

The company and auditor agreed on 5% Bad Debts Allowance


Returned by Post Office

E-2.1

E FROM ME (US) IS CORRECT:


AS OF:

AMOUNT:

December 31, 2011

138,285.00

E-2

1,600,000.00

E-2

Conf.No. AR-2

IDA CORONEL
63 Manotoc Street, Quezon City
Returned by Post Office

E FROM ME (US) IS CORRECT:


AS OF:

AMOUNT:

December 31, 2011

R. Alano Trading

Conf.No. AR-9

hief Accountant

OK

E FROM ME (US) IS CORRECT:

AS OF:

AMOUNT:

December 31, 2011

P
Conf.No. AR-12

The above amount was paid in ful on


Dec. 31, 2011 per OR # 122.
Returned by Post Office

204,475.00

E-2

E FROM ME (US) IS CORRECT:


AS OF:

AMOUNT:

December 31, 2011

V. Castro & Co.

1,224,500.00

E-2

(50,000.00)

E-2

575,000.00

E-2

Conf.No. AR-1

hief Accountant

Balance is correct.

Returned by Post Office

E FROM ME (US) IS CORRECT:


AS OF:

AMOUNT:

December 31, 2011


Conf.No. AR-7

Balance OK.

Returned by Post Office

E FROM ME (US) IS CORRECT:


AS OF:

uilding Blocks, Inc.

AMOUNT:

December 31, 2011

Conf.No. AR-17

hief Accountant

Balance correct.

Returned by Post Office

Not included in Send Out Confirmation:


1. Lighthouse Commercial
2. Solomon Enterprises
3. Carlo Santos
4. Chad Acosta
5. Johann Morales
6. Luli Samson

on 5% Bad Debts Allowance based on adjusted balance of Accounts Receivables.

GRACE CORPORATION
Sales Cut Off
December 31, 2011

I. OBJECTIVE
1

To determine that all transactions relative to accounts receivables have been recorded in t

Completeness

1
2

Examined sales invoices before and after the reporting period


Traced sales invoices to the sales books to determine whether the transactions are record

II. ASSERTIONS

III. PROCEDURES

IV. FINDINGS

DATE
2011
Dec 1
3
7
10

SALES
INVOICE

TERMS

1251

2/10. n/30

Eagle Contractors

E-1.3

1252

2/10. n/30

Dynasty Construction

1253
1254

2/10. n/30
2/10. n/30

Sampollo Company
Benitez Merchandising

E-1.3
E-1.3
E-1.3

CLIENT

1255

WP REF

15

1256

2/10, n/30

Ida Coronel

E-1.3
E-1.3

17

1257

2/10, n/30

Luli Samson

E-1.3
E-1.3

22

1258

2/10, n/30

Susan de Leon

23

1259

Cash

Buillding Blocks, Inc.

27

1260
1261

Cash
2/10, n/30

Buillding Blocks, Inc.


Cora Tayag

E-1.3
E-1.3
E-1.3

1262

2/10, n/30

Cora Tayag

29

1263

2/10,n/30

Centeno, Antonio & Tantoco

30

1264

C.O.D

Eagle Contractors

1265

C.O.D

Dynasty Construction

1266

2/10,n/30

Benitez Merchandising

E-1.3
E-1.3

E-1.5
E-1.5
E-1.5

CUT-OFF

2012
Jan
3

1267

C.O.D

1268

2/10,n/30

Proposed Adjusting Journal Entries:

Benitez Merchandising

E-1.5

Luli Samson

E-1.5

a.

Cash
Output Tax
Sales
To record the unrecorded Sales Invoice No. 1264

b. Cash
Output Tax
Sales
To record unrecorded Sales Invoice No. 1265
*

c.

Accounts Receivable-Benitez Merchandising


Output Tax
Sales
To record Sales Invoice No. 1266

LEGEND:
* Journal Entry is already made in E-1
r Examined Sales Invoices
q Traced from Sales Invoice to Sales Book

V. CONCLUSIONS

Except for the three unrecorded sales in December, other sales transactions are recorded in the pr
are recommended. No other exceptions are noted.

een recorded in the proper acounting period

ctions are recorded

E-3

PROPERLY
RECORDED

AMOUNT

246,825.00 rq

YES

4,625.00 rq

YES
YES
YES

58,035.00 rq
711,950.00 rq

309,525.00 rq

138,285

YES
YES

REMARKS

No exceptions noted
Total amount of SI should be P4,625 but
recorded as 46.25.
No exceptions noted
No exceptions noted
Correct amount is 309, 450 but recorded as
309250. Corrections made in Procedure E-1
Immaterial difference of 10 exists due to a
mistake in footing the Sales Invoice.
Corrections made in Procedure E-1.

rq

86,850 rq

YES

204,975 rq

YES

75,085 rq

YES

No exceptions noted

111,395 rq
208,600 rq

YES
YES

No exceptions noted
No exceptions noted

No exceptions noted
Correct amount is 202, 975 but recorded as
204, 475 due to a mistake in footing the Sales
Invoice. Corrections made in Procedure E-1.

81,275 rq

rq

YES

No exceptions noted

YES

No exceptions noted

736,000

165,550 rq

NO

Adjusting entries are recommended

186,250 rq

NO

Adjusting entries are recommended

232,000 rq

NO

Adjusting entries are recommended

93,750 rq
29,725 rq

YES

No Exceptions Noted

YES

No Exceptions Noted

CUT-OFF

165,550

15,050
150,500

16,932
169,318

21,091
210,909

186,250

232,000

ecorded in the proper accounting period . Necessary adjusting entries

Prepared by:
RIT
Reviewed by:
BAG

Date:
2/15/2012
Date:
2/25/2012

V. CONCLUSIONS

The above objectives were successfully met. Appropriate balances of the Allowance for Bad Debts
the adjusted Accounts Receivable balance. The Accounts Receivables would now be presented in
as required by the PFRS, that is, Accounts Receivable net of Allowance for Bad Debts.

f the Allowance for Bad Debts were determined using the agreed percentage based on
s would now be presented in the Statement of Financial Position at its net realizable
ce for Bad Debts.

Prepared by:
BAG
Reviewed by:
RIT

Date:
2/21/2012
Date:
2/26/2012

GRACE CORPORATION
Accounts Receivable - Aging Schedule
December 31, 2011

Name of Customer
Rex Enterprises
Louie Tan
Eagle Contractors
Valera Company
Ida Coronel
Alberto & Associates, CPAs
Legarda Company
Cora Tayag
Dynasty Construction
Anna Reyes-employee
Gwendo Reyes
Benitez Merchandising
Lighthouse Commercial
Building Blocks, Inc.
Solomon Enterprises
Carlo Santos
Chad Acosta
J.R. Alano
Susan de Leon

WP Ref
E-1
E-1
E-1
E-1
E-1
E-1
E-1
E-1
E-1
E-1
E-1
E-1
E-1
E-1
E-1
E-1
E-1
E-1
E-1

Audited Balances
1,700,000
800,000
300,000
138,295
150,000
289,875
50,000
138,175
186,500
575,000
264,000
1,600,000
-

Date of Invoice
09/15/11
11/30/11
11/20/11
12/15/11
09/15/11
12/27/11
11/08/11
12/30/11
3/21 and 4/19/11
11/19/11
06/03/11
10/05/11
-

CURRENT

138,295

289,875

138,175

Roces, Adriano & Salas, CPAs


R.V. Castro & Co.
Johann Morales
Centeno, Antonio & Tantoco, CPA
Luli Samson
J.R.
Alano Company
Trading
Sampollo

E-1
E-1
E-1
E-1
E-1
E-1
E-1

Total Accounts Receivable

E-1

1,700,000
1,224,500
736,000
150,000.00-

11/20/11
9/20 and 11/30/11
12/29/11
11/08/11-

10,002,345

Checked against Accounts Receivable Subsidiary Ledger

736,000

1,302,345

E-4.1
1-30

No. of Days Past Due


31-60

Over 60
1,700,000

800,000
300,000

150,000

50,000

186,500
575,000
264,000
1,600,000

1,700,000
224,500

150,000.00
3,799,500

1,000,000

1,600,000

3,300,500

E-4.2

Johann Morales
Centeno, Antonio & Tantoco, CPA
Luli Samson
J.R. Alano Company
Trading
Sampollo

E-1
E-1
E-1
E-1
E-1

Total Accounts Receivable

E-1

736,000
150,000.0010,002,345

Checked against Accounts Receivable Subsidiary Ledger

12/29/11
11/08/11-

736,000

1,302,345

150,000.00
3,799,500

1,600,000

3,300,500

E-4.2

GRACE CORPORATION
Accounts Receivable - Allowance for Doubtful Accounts Schedule
December 31, 2011

CURRENT
1-30
31-60
Over 90
Total

WP
REF
E-4.1
E-4.1
E-4.1
E-4.1
E-1.1

Amount
1,302,345
3,799,500
1,600,000
3,300,500
10,002,345

Unadjusted balances, as of December 31, 2011


Required Allowance for Bad Debts
Total Audit Adjustments
Accounts Receivable, balance per audit
Allowance for Bad Debts, balance per audit
Net Accounts Receivable, December 31, 2011

Expected Percentage of
Uncollectibility
5%
5%
5%
5%

E-4.2

Schedule

cted Percentage of
Uncollectibility
5%
5%
5%
5%

Estimated
Uncollectible
65,117
189,975
80,000
165,025
500,117

497,811
500,117
2,306 E-4
10,002,345
500,117
9,502,228

GRACE CORPORATION
Notes Receivable
December 31, 2011

I. OBJECTIVES
1
2
3

To determine that notes receivables exist as of the balance sheet date.


To determine whether all notes receivables were recorded properly.
To determine whether amounts of notes receivable were accurate.

1
2
3

Existence
Completeness
Valuation

1
2
3
4

Obtained a copy of notes receivable contracts.


Examined the terms of the contract.
Reconciled the amount stated in the contract with the amount recorded in the ledger.
Recalculated interest.

The total notes receivables of Php 2,970,000 is composed of Php 2,500,000 and php 470,0000 notes receivable from Alicia M. David and
Johann Morales respectively.

The correct balance of notes receivable as of the balace sheet date should have been Php 2,470,000.

II. ASSERTIONS

III. PROCEDURES

IV. FINDINGS

Maker
Alicia M. David

Date of Note
11.05.2011

Johann Morales
12.08.2011
Balance per ledger
Add (Deduct) Adjustments:
Note collected by the Bank

Maturity Date
03.04.2012

Interest Rate
24%

02.06.2012

24%

E-5.3
E-5.3
E-5.2
E-5.1

BALANCE PER AUDIT


Proposed Adjusting Journal Entry: (Entry was already made in C2)
Cash
490,000
Miscellaneous Expense
10,000
Notes Receivable
To record Notes Receivable collected by the bank.

Amount
2,500,000 rq
470,000 rq
2,970,000
(500,000)
2,470,000 E-7

500,000

LEGEND:
r
q

Examined Notes Receivable Contracts


Traced from contract to ledger

V. CONCLUSIONS
The difference of Php 500,000 was the unrecorded note collected by the bank.

Prepared by:
MZB
Reviewed by:
LCC

Date:
2/13/2012
Date:
2/15/2012

E-5

ble from Alicia M. David and

Date:
2/13/2012
Date:
2/15/2012

E-5.2
ACCOUNT

Notes Receivable

DATE

2011
Nov. 30 Balance
Dec. 8
Balance

ITEM

ACCOUNT NO.

DEBIT

P
GJ 11

2,500,000.00
470,000.00
2,970,000.00 E-5

DATE

ITEM

105
CREDIT

E-5.
PROMISSORY NOTE
(Note Receivable)
470,000.00 E-5

December 8, 2011

sixty days after date

For value received, I / we jointly and severally promise to pay,


Grace Corporation
thousand
interest rat

24

or order, the sum of


pesos (

470,000.00 ),

% payable at

12 Ninoy Aquino Ave., Paranaque City

Philippine Currency at an annual


.

If this note is placed in the hands of attorney for collection; the makes and endorsers
shall, in addition, pay 25% of the amount due as attorney's fees and costs of collection (aside from
the costs of litigation allowed by the Rules of Court).

Signature

Signature

Sarah B. Tuason
for Grace Corporation

Johann Morales

Name in Print

Name in Print

12 Ninoy Aquino Avenue


Paranaque City

301 Frico Street


Novaliches, Quezon City

Mailing Address

Mailing Address

Res. Cert. No.: AB3486789

Res. Cert. No.: A4882283

Date: January 19, 2011

Date: January 15, 2011

Place of Issue: Paranaque City

Place of Issue: Quezon City

SIGNED IN THE PRESENCE OF:

SIGNED IN THE PRESENCE OF:

PROMISSORY NOTE
(Note Receivable)
2,500,000.00 E-5

December 5, 2011

For value received, I / we jointly and severally promise to pay,


Grace Corporation
thousand
interest rat

24

120

days after date

or order, the sum of


pesos (
% payable at

2,500,000.00 ),

Philippine Currency at an annual

12 Ninoy Aquino Ave., Paranaque City

If this note is placed in the hands of attorney for collection; the makes and endorsers
shall, in addition, pay 25% of the amount due as attorney's fees and costs of collection (aside from

the costs of litigation allowed by the Rules of Court).

Signature

Signature

Sarah B. Tuason
for Grace Corporation

Alicia M David

Name in Print

Name in Print

12 Ninoy Aquino Avenue


Paranaque City

58 Veronica Street
Sta. Mesa, Manila

Mailing Address

Mailing Address

Res. Cert. No.: AB3486789

Res. Cert. No.: 5982283

Date: January 19, 2011

Date: January 17, 2011

Place of Issue: Paranaque City

Place of Issue: Manila

SIGNED IN THE PRESENCE OF:

SIGNED IN THE PRESENCE OF:

E-5.3

GRACE CORPORATION
Accrued Interest Receivable
December 31, 2011

I. OBJECTIVES
1
2
3

To determine that accrued interesr receivables exist as of the balance sheet date.
To determine whether all accrued interest receivables were recorded properly.
To determine whether amounts of accrued interest receivable were accurate.

1
2
3

Existence
Completeness
Valuation

1
2
3
4
5

Obtained a copy of notes receivable contracts.


Examined the terms of the contract.
Determined the amount of accrued interest recorded for the period
Recalculatedinterest.
Noted for differences.

The total accrued interest receivables that exist as of the balance sheet date was understated.

II. ASSERTIONS

III. PROCEDURES

IV. FINDINGS

Maker
Alicia M. David

Principal
2,000,000

Johann Morales
Balance per Audit
Balance per Books

500,000
470,000

Interest Rate
24%
24%
24%

r
r
r

Days Outstanding
56

Interest Earned

54
23

E-6.1

Audit Adjustment
Proposed Adjusting Journal Entry:
Accrued Interest Receivable
59,652
Interest Income
To record accrued interest for the period.

59,652

LEGEND:
r

Examined Notes Receivable Contracts

V. CONCLUSIONS

An understatement of Php 59,652 exist in the Accrued Interest Receivable account and so with the Interest Income recorded.
With the exceptions of the adjusting entries recommended by the auditor, sufficient and appropriate evidence were gathered to
support the assertions
made.

E-6

Interest Earned
73,644
17,753
7,108
98,505
38,853
59,652

est Income recorded.


dence were gathered to

Prepared by:
MZB
Reviewed by:
LCC

Date:
2/16/2012
Date:
3/30/2012

E-6.1
ACCOUNT

DATE

Accrued Interest Receivable


ITEM

2011
Dec. 31 Balance
Balance

ACCOUNT NO.

DEBIT

38,853.00
38,853.00 E-6

DATE

ITEM

107

CREDIT

GRACE CORPORATION

Analytical Procedures - Accounts Receivable


December 31, 2011

I. OBJECTIVES
1

To be able to evaluate the fluctuations or unusual changes on the balance of accounts receivable and notes

receivable account.
To assess whether amounts and other data relating to recorded transactions and events have been recorded
appropriately.

II. ASSERTIONS
1

Accuracy

Compared the difference between the audited balance of cash of the current year from the audited balance of the
preceding year (Balance of 2010 from 2009 and Balance of 2011 from 2010).
The differences on the account balances where expressed in percentage by diving the variance from
the prior balance of an account.
Journal entries of transactions and supporting documents related to cash such as petty cash voucher and bank

III. PROCEDURES

2
3

reconcillation were reviewed to evaluate the differences on the account balances.

IV. FINDINGS

AR Ending Balances

2009
8,850,000

Accounts Receivables
2010
12,250,000
E-4.2

2011
9,502,228

Percent Increase (Decrease)


AR Turnover
Days in AR
NR Ending Balances

600,000

38%
5.07
72.06
1,500,000

Percent Increase (Decrease)

150%

-22%
10.11
36.11
2,470,000

E-5

65%

III. CONCLUSION

In the ratios displayed above, the auditors can infer that credit collecting has improved significantly for Grace Corporation. Their receivables
have an average of 36 in days oustanding, from last years' 72. There is an effective collection policy during the year, considering that
their average credit term is 45 days.
Accounts receivable turnover is the number of times per year that a business collects its average accounts receivable.
The ratio is intended to evaluate the ability of a company to efficiently issue credit to its customers and collect funds from them in a timely
manner. Because Inventory turnover doubled, we can infer that there has been a more conservative credit policy and a
more aggressive collections department, as well as high quality customers.

Prepared by:
ILW
Reviewed by:
LCC

E-7

Date:
1/25/2012
Date:
2/10/2012

GRACE CORPORATION
Reconciliation of Inventory Balances
December 31, 2011

I. OBJECTIVES
1
2
3

To determine whether inventory exists at year-end and that inventory-related transactions occured within the year.
To determine that all inventory balances of the client are reflected on the balance sheet at year-end.
To determine whether all inventory are recorded at their proper amounts with concerns to the
General Ledger (Purchases, Cost of Sales).

1
2

Existence
Rights and Obligations

Completeness

Occurrence

Accuracy

1
2
3
4
5
6
7

Obtained copy of the client's Purchase Book and Purchase Invoices for the month of December.
Reconciled the records in the purchase book to the corresponding Purchase Invoices.
Examined purchase terms and Cash Vouchers and looked for possible purchase discounts.
Obtained copy of the company's Cost of Sales sheet, and Sales Invoices for the month of December.
Traced sales invoices to cost of sales sheet.
Recalculated cost of Sales.
Reconciled recalculated amount to the company's cost of sales sheet.

II. ASSERTIONS

III. PROCEDURES

8
9
10

Reconciled purchase invoices and sales invoices to stock cards.


Traced the reconciled amounts to the General Ledger of Inventory.
Compared adjusted amount as per LCNRV to the computed ending inventory.

IV. FINDINGS

WP
Ref

Unadjusted Balances
Dr.

12/31/11

Total Balances

Adjustments

Cr.

Merchandise Inventory, November 30

F1.1

799,971

Purchases

F1.2

5,464,203

Dr.
799,971
5,464,203 F.4
F1.7

Purchase Discount
Sales (at cost)

F1.4

1,861,387

1,861,387

370,773
2,328 F1.6
F1.7
F1.8

Loss on Inventory
Merchandise Inventory, December 31

6,264,174

1,861,387

4,402,787

Merchandise Inventory, End per LCNRV


Inventory Loss

PROPOSED ADJUSTING JOURNAL ENTRIES


a.

Accounts Payable

4,109

Inventory
To record purchase discount taken.
b.

Inventory
Cost of Sales
To record decrease in Cost of Sales
due to change in cost because of the
purchase discount taken.

4,109

2,328
2,328

373,101

c.

d.

e.

Cost of Sales
Inventory
To record unrecorded Sales.

362,814

Losses in Inventory
Inventory
To record loss of inventory.

191,759

362,814

191,759

Cost of Sales
Inventory
To bring the Inventory account to its audited
balance per LCNRV.

ERRORS NOTED: (to avoid confusion for future references)


Purchase Book
Inventory
PI 1099
PI 127
Date
PI 1095
PI 147
Terms
PI 117
PI 120
PI 145
PI 147
PI 1100

F1.2
F1.2
F1.2
F1.2
F1.2
F1.2
F1.2
F1.2
F1.2

43,009
43,009

Per purchase book


111,136 F1.3
234,009 F1.3
12/18/2011 F1.3
12/15/2011 F1.3
2/10 n/45 F1.3
n/30 F1.3
1/10 n/30 F1.3
2500 down, n/15 F1.3
n/30 F1.3

Per Purchase Invoices


11,136
23,409
12/8/2011
12/26/2011
2/10 n/30
Cash
2/10 n/30
Cash
Cash

All the mentioned errors above are mostly just typing errors. No adjustments were made for them because Grace Corp
accounted for them accurately.

V. CONCLUSION
With the exceptions of the adjusting entries and corrections recommended by the auditor, sufficient and appropriate
evidence were gathered to support the assertions made.

F-1

Adjusted Balances
Cr.
799,971
5,834,976
4,109

1,781

362,814

2,224,201

191,759

191,759

558,682

4,217,206

F3

4,149,747
(67,459)

Prepared by: Date:

ILW
2/15/2012
Reviewed by: Date:
DBM
2/30/2012

F-1.1
ACCOUNT

DATE

Merchandise Inventory
ITEM

2011
Nov. 30 Balance
Dec. 8
Balance

ACCOUNT NO.

DEBIT

P
PB 1

799,971.00
5,464,203.00
4,402,787.00

DATE

2011
Dec. 30

ITEM

GJ 13

106
CREDIT

1,861,387.00

F-1.4
Page 3
Date

Sold To

2011
Dec. 1 Eagle Contractors
3 Dynasty Construction
7 Sampolio Company
10 Benitez Merchandising
15 Ida Coronel
17 Luli Samson
22 Susan de Leon
23 Building Blocks, Inc.
27 Cora Tayag
29 Conteno, Antonio & Tantoco

Invoice #
1251
1252
1253
1254
1255
1256
1257
1258
1259
1260
1261
1262
1263

Amount
154,545.00
2,714.00
36,364.00
639,427.00
86,659.00
54,409.00
127,955.00
117,041.00
181,205.00
461,068.00
1,861,387.00

ACCOUNT NO.

4486-9156-80

ACCOUNT NAME

GRACE CORPORATION

PAY TO THE
ORDER OF

GENIUS PAPER PRODUCTS

PESOS

Three hundred thousand pesos only

PCI Bank

__________________________

SUCAT ROAD BRANCH

Grac
e

CORPORATION
VAT 2011-002-148 | TIN 4004-009-175

Payee:

GENIUS PAPER PRODUCTS

Amount
in words:

Three hundred thousand pesos only

For

Downpayment fot merchandise purchased per


Invoice No. 111

Date of Check:

Check No.:

December 2, 2011
Prepared by:

Checked By:

Approved by:

Received above amount P

by

Date :

ACCOUNT NO.

4486-9156-80

ACCOUNT NAME

PAY TO THE
ORDER OF

SAPPHIRE CORPORATION

GRACE CORPORATION

Nine hundred seventy two thousand seven hundred fifty pesos

PESOS

PCI Bank

__________________________

SUCAT ROAD BRANCH

Grac
e

CORPORATION
VAT 2011-002-148 | TIN 4004-009-175

Payee:

SAPPHIRE CORPORATION

Amount
in words:

Nine hundred seventy two thousand seven hundred fi

For

Partial payment for Invoice No. 920

Date of Check:

Check No.:

December 5, 2011
Prepared by:

Checked By:

Approved by:

Received above amount P

by

Date :

ACCOUNT NO.

4486-9156-80

ACCOUNT NAME

GRACE CORPORATION

PAY TO THE
ORDER OF

BUREAU OF INTERNAL REVENUE

PESOS

Thirty four thousand two hundred pesos only

PCI Bank
SUCAT ROAD BRANCH

Grac
e

CORPORATION

__________________________

Grac
e

VAT 2011-002-148 | TIN 4004-009-175

Payee:

BUREAU OF INTERNAL REVENUE

Amount
in words:

Thirty four thousand two hundred pesos o

For

Remittance of Novenber 2011 taxes withheld on wages

Date of Check:

Check No.:

December 7, 2011
Prepared by:

Checked By:

Approved by:

Received above amount P

by

Date :

ACCOUNT NO.

4486-9156-80

ACCOUNT NAME

GRACE CORPORATION

PAY TO THE
ORDER OF

SOCIAL SECURITY SYSTEM

PESOS

Eighty seven thousand five hundred pesos only

PCI Bank

__________________________

SUCAT ROAD BRANCH

Grac
e

CORPORATION
VAT 2011-002-148 | TIN 4004-009-175

Payee:

Amount
in words:

SOCIAL SECURITY SYSTEM


Eighty seven thousand five hundred pesos

For

Remittance of Medicare, SSS & ECC,


Employer's and Employee's contribution

Date of Check:

Check No.:

December 9, 2011
Prepared by:

Checked By:

Approved by:

Received above amount P

by

Date :

ACCOUNT NO.

4486-9156-80

ACCOUNT NAME

GRACE CORPORATION

PAY TO THE
ORDER OF

ARBOLEDA CO., INC.

PESOS

One hundred seventy five thousand pesos only

PCI Bank

__________________________

SUCAT ROAD BRANCH

Grac
e

CORPORATION
VAT 2011-002-148 | TIN 4004-009-175

Payee:

ARBOLEDA CO., INC.

Amount
in words:

One hundred seventy five thousand pesos

For

Partial paymenr for invoce No. 101

Date of Check:

Check No.:

December 10, 2011


Prepared by:

Checked By:

Approved by:

Received above amount P

by

Date :

ACCOUNT NO.

4486-9156-80

ACCOUNT NAME

GRACE CORPORATION

PAY TO THE
ORDER OF

SAPPHIRE CORPORATION

PESOS

One hundred fourteen thousand nine hundred pesos only

PCI Bank

__________________________

SUCAT ROAD BRANCH

Grac
e

CORPORATION
VAT 2011-002-148 | TIN 4004-009-175

Payee:

SAPPHIRE CORPORATION

Amount
in words:

One hundred fourteen thousand nine hundred p

For

Partial paymenr for invoce No. 1082

Date of Check:

Check No.:

December 10, 2011


Prepared by:

Checked By:

Approved by:

Received above amount P

by

Date :

ACCOUNT NO.

4486-9156-80

ACCOUNT NAME

GRACE CORPORATION

PAY TO THE
ORDER OF

ARBOLEDA CO., INC

PESOS

One million five hundred fifty four thousand five hundred pesos

PCI Bank

__________________________

SUCAT ROAD BRANCH

Grac
e

CORPORATION
VAT 2011-002-148 | TIN 4004-009-175

Payee:

ARBOLEDA CO., INC

Amount
in words:

One million five hundred fifty four thousand five hund

For

Full payment of account with Arboleda Co., Inc.


per Invoice no. 90

Date of Check:

Check No.:

December 10, 2011


Prepared by:

Checked By:

Approved by:

Received above amount P

by

Date :

ACCOUNT NO.

4486-9156-80

ACCOUNT NAME

GRACE CORPORATION

PAY TO THE
ORDER OF

CALTEX GAS

PESOS

Fourteen thousand pesos only

PCI Bank
SUCAT ROAD BRANCH

Grac
e

CORPORATION
VAT 2011-002-148 | TIN 4004-009-175

__________________________

Grac
e
Payee:

CALTEX GAS

Amount
in words:

Fourteen thousand pesos only

For

560 liters gasoline

Date of Check:

Check No.:

December 12, 2011


Prepared by:

Checked By:

Approved by:

Received above amount P

by

Date :

ACCOUNT NO.

4486-9156-80

ACCOUNT NAME

GRACE CORPORATION

PAY TO THE
ORDER OF

PAYMASTER

PESOS

One million eighty thousand pesos only

PCI Bank

__________________________

SUCAT ROAD BRANCH

Grac
e

CORPORATION
VAT 2011-002-148 | TIN 4004-009-175

Payee:

CALTEX GAS

Amount
in words:

One million eighty thousand pesos only

For

Salaries for December 1- 15, 2011


Total
Less:
SSS, Medicare & ECC
HDMF
Withholding taxes

1,238,760.00
(72,360.00)
(21,600.00)
(64,800.00)

Date of Check:

Check No.:

December 14, 2011


Prepared by:

Checked By:

Approved by:

Received above amount P

by

Date :

ACCOUNT NO.

4486-9156-80

ACCOUNT NAME

GRACE CORPORATION

PAY TO THE
ORDER OF

GENIUS PAPER PRODUCTS

PESOS

Six hundred twenty five thousand pesos only

PCI Bank

__________________________

SUCAT ROAD BRANCH

Grac
e

CORPORATION
VAT 2011-002-148 | TIN 4004-009-175

Payee:

GENIUS PAPER PRODUCTS

Amount
in words:

Six hundred twenty five thousand pesos o

For

Partial payment per Invoice No. 130

Date of Check:

Check No.:

December 15, 2011


Prepared by:

Checked By:

Approved by:

Received above amount P

by

Date :

ACCOUNT NO.

4486-9156-80

ACCOUNT NAME

GRACE CORPORATION

PAY TO THE
ORDER OF

MERALCO

PESOS

Thirteen thousand two hundred fifty pesos only

PCI Bank

__________________________

SUCAT ROAD BRANCH

Grac
e

CORPORATION
VAT 2011-002-148 | TIN 4004-009-175

Payee:

MERALCO

Amount
in words:

Thirteen thousand two hundred fifty pesos

For

Additional electric bill for November 2011

Date of Check:

Check No.:

December 15, 2011


Prepared by:

Checked By:

Approved by:

Received above amount P

by

Date :

ACCOUNT NO.

4486-9156-80

ACCOUNT NAME

GRACE CORPORATION

PAY TO THE
ORDER OF

ARBOLEDA CO., INC.

PESOS

Eighty three thousand three hundred pesos only

PCI Bank
SUCAT ROAD BRANCH

__________________________

Grac
e

CORPORATION
VAT 2011-002-148 | TIN 4004-009-175

Payee:

ARBOLEDA CO., INC.

Amount
in words:

Eighty three thousand three hundred pesos

For

Full payment of Invoice No. 117


Invoice Price
Less:

Discount
Balance

Date of Check:

85,000.00

1,700.00
83,300.00

Check No.:

December 20, 2011


Prepared by:

Checked By:

Approved by:

Received above amount P

by

Date :

ACCOUNT NO.

4486-9156-80

ACCOUNT NAME

GRACE CORPORATION

PAY TO THE
ORDER OF

ARCHER SUPPLIES

PESOS

Five thousand pesos only

PCI Bank

__________________________

SUCAT ROAD BRANCH

Grac
e

CORPORATION
VAT 2011-002-148 | TIN 4004-009-175

Payee:

Amount
in words:

ARCHER SUPPLIES
Five thousand pesos only

For

500 pieces plastic bags for store supplies

Date of Check:

Check No.:

December 21, 2011


Prepared by:

Checked By:

Approved by:

Received above amount P


by

Date :

4486-9156-80

ACCOUNT NO.

ACCOUNT NAME

GRACE CORPORATION

PAY TO THE
ORDER OF

GENIUS PAPER PRODUCTS

PESOS

Thirty two thousand five hundred pesos only

PCI Bank

__________________________

SUCAT ROAD BRANCH

Grac
e

CORPORATION
VAT 2011-002-148 | TIN 4004-009-175

Payee:

GENIUS PAPER PRODUCTS

Amount
in words:

Thirty two thousand five hundred pesos o

For

Partial payment of invoice no. 145


Invoice price

130,000.00

25% payment
Balance

32,500.00
97,500.00

Date of Check:

Check No.:

December 26, 2011


Prepared by:

Checked By:

Approved by:

Received above amount P

by

Date :

4486-9156-80

ACCOUNT NO.

ACCOUNT NAME

GRACE CORPORATION

PAY TO THE
ORDER OF

GENIUS PAPER PRODUCTS

PESOS

One hundred twenty five thousand three hundred fifteen pesos

PCI Bank

__________________________

SUCAT ROAD BRANCH

Grac
e

CORPORATION
VAT 2011-002-148 | TIN 4004-009-175

Payee:

GENIUS PAPER PRODUCTS

Amount
in words:

One hundred twenty five thousand three hundred fifte

For

Partial payment of invoice no. 140


Invoice price

127,875.00

Discount
Balance

2,560.00
125,315.00

Date of Check:

Check No.:

December 26, 2011


Prepared by:

Checked By:

Approved by:

Received above amount P


by

Date :

ACCOUNT NO.

PAY TO THE

4486-9156-80

ACCOUNT NAME

GRACE CORPORATION

ORDER OF

GENIUS PAPER PRODUCTS

PESOS

Twenty five thousand pesos only

PCI Bank

__________________________

SUCAT ROAD BRANCH

Grac
e

CORPORATION
VAT 2011-002-148 | TIN 4004-009-175

Payee:

GENIUS PAPER PRODUCTS

Amount
in words:

Twenty five thousand pesos only

For

Full payment of asccount with Arboleda Co., Inc


per Invoice No. 90

Date of Check:

Check No.:

December 26, 2011


Prepared by:

Checked By:

Approved by:

Received above amount P


by

Date :

ACCOUNT NO.

4486-9156-80

ACCOUNT NAME

GRACE CORPORATION

PAY TO THE
ORDER OF

ARBOLEDA CO., INC.

PESOS

Twenty five thousand four hundred ninety pesos only

PCI Bank
SUCAT ROAD BRANCH

Grac

__________________________

Grac
e

CORPORATION
VAT 2011-002-148 | TIN 4004-009-175

Payee:

ARBOLEDA CO., INC.

Amount
in words:

Twenty five thousand four hundred ninety pes

For

Full payment of Invoice No. 127


Invoice price

25,750.00

Discount
Balance

260.00
25,490.00

Date of Check:

Check No.:

December 26, 2011


Prepared by:

Checked By:

Approved by:

Received above amount P


by

Date :

ACCOUNT NO.

4486-9156-80

ACCOUNT NAME

GRACE CORPORATION

PAY TO THE
ORDER OF

XYZ ADS

PESOS

Thirteen thousand three hundred twenty five pesos only

PCI Bank

__________________________

SUCAT ROAD BRANCH

Grac
e

CORPORATION
VAT 2011-002-148 | TIN 4004-009-175

Payee:

Amount
in words:
For

100 pieces brochures

XYZ ADS

Thirteen thousand three hundred twenty five pe

Date of Check:

Check No.:

December 27, 2011


Prepared by:

Checked By:

Approved by:

Received above amount P


by

Date :

ACCOUNT NO.

4486-9156-80

ACCOUNT NAME

GRACE CORPORATION

PAY TO THE
ORDER OF

SAPPHIRE CORPORATION

PESOS

Eighty five thousand pesos only

PCI Bank

__________________________

SUCAT ROAD BRANCH

Grac
e

CORPORATION
VAT 2011-002-148 | TIN 4004-009-175

Payee:

XYZ ADS

Amount
in words:

Eighty five thousand pesos only

For

In payment for Invoice No. 1095

Date of Check:

Check No.:

December 28, 2011


Prepared by:

Checked By:

Approved by:

Received above amount P


by

Date :

ACCOUNT NO.

4486-9156-80

ACCOUNT NAME

GRACE CORPORATION

PAY TO THE
ORDER OF

PAYMASTER

PESOS

Nine hundred forty two thousand eight hundred forty pesos onl

PCI Bank

__________________________

SUCAT ROAD BRANCH

Grac
e

CORPORATION
VAT 2011-002-148 | TIN 4004-009-175

Payee:

PAYMASTER

Amount
in words:

Nine hundred forty two thousand eight hundred fort

For

Payroll for December 16-31


Less: SSS, Medicare & ECC
Withholding Taxes
HDMF

1,101,600.00
(72,360.00)
(64,800.00)
(21,600.00)

Date of Check:

Check No.:

December 30, 2011


Prepared by:

Checked By:

Approved by:

Received above amount P


by

Date :

ACCOUNT NO.

4486-9156-80

ACCOUNT NAME

PAY TO THE
ORDER OF

MERALCO

PESOS

Eighty five thousand pesos only

GRACE CORPORATION

PCI Bank

__________________________

SUCAT ROAD BRANCH

Grac
e

CORPORATION
VAT 2011-002-148 | TIN 4004-009-175

Payee:

MERALCO

Amount
in words:

Eighty five thousand pesos only

For

Meralco bill for the period December 1-31 2011

Date of Check:

Check No.:

January 3, 2012
Prepared by:

Checked By:

Approved by:

Received above amount P


by

Date :

ACCOUNT NO.

4486-9156-80

ACCOUNT NAME

GRACE CORPORATION

PAY TO THE
ORDER OF

GENIUS PAPER PRODUCTS

PESOS

Two hundred forty nine thousand seven hundred fifty pesos only

PCI Bank
SUCAT ROAD BRANCH

Grac
e

CORPORATION
VAT 2011-002-148 | TIN 4004-009-175

__________________________

Grac
e
Payee:

GENIUS PAPER PRODUCTS

Amount
in words:

Two hundred forty nine thousand seven hundred fift

For

In payment of purchases

Date of Check:

Check No.:

January 3, 2012
Prepared by:

Checked By:

Approved by:

Received above amount P


by

Date :

ACCOUNT NO.

4486-9156-80

ACCOUNT NAME

GRACE CORPORATION

PAY TO THE
ORDER OF

PCI BANKARD, INC.

PESOS

Ninety seven thousand pesos only

PCI Bank

__________________________

SUCAT ROAD BRANCH

Grac
e

CORPORATION
VAT 2011-002-148 | TIN 4004-009-175

Payee:

PCI BANKARD, INC.

Amount
in words:
For

Representation expenses of the president


incurred in December 2011

Ninety seven thousand pesos only

Date of Check:

Check No.:

January 3, 2012
Prepared by:

Checked By:

Approved by:

Received above amount P


by

Date :

ACCOUNT NO.

4486-9156-80

ACCOUNT NAME

GRACE CORPORATION

PAY TO THE
ORDER OF

MUNICIPALITY OF MANILA

PESOS

Seventy thousand pesos only

PCI Bank

__________________________

SUCAT ROAD BRANCH

Grac
e

CORPORATION
VAT 2011-002-148 | TIN 4004-009-175

Payee:

MUNICIPALITY OF MANILA

Amount
in words:

Seventy thousand pesos only

For

Property taxes for 2011

Date of Check:

Check No.:

January 4, 2012
Prepared by:

Checked By:

Approved by:

Received above amount P


by

Date :

ACCOUNT NO.

4486-9156-80

ACCOUNT NAME

GRACE CORPORATION

PAY TO THE
ORDER OF

PHILIPPINE LONG DISTANCE COMPANY

PESOS

Fifteen thousand pesos only

PCI Bank

__________________________

SUCAT ROAD BRANCH

Grac
e

CORPORATION
VAT 2011-002-148 | TIN 4004-009-175

Payee:

PHILIPPINE LONG DISTANCE COMPANY

Amount
in words:

Fifteen thousand pesos only

For

Telephone bill for December 2011

Date of Check:

Check No.:

January 4, 2012
Prepared by:

Checked By:

Approved by:

Received above amount P


by

Date :

ACCOUNT NO.

4486-9156-80

ACCOUNT NAME

GRACE CORPORATION

PAY TO THE
ORDER OF

MWSS

PESOS

Forty eight thousand five hundred pesos only

PCI Bank
SUCAT ROAD BRANCH

__________________________

Grace

CORPORATION
VAT 2011-002-148 | TIN 4004-009-175

Payee:

MWSS
Amount
in words:

Forty eight thousand five hundred pesos o

For

Water bill for December 2011

Date of Check:

Check No.:

January 4, 2012
Prepared by:

Checked By:

Approved by:

Received above amount P


by

Date :

ACCOUNT NO.

4486-9156-80

ACCOUNT NAME

GRACE CORPORATION

PAY TO THE
ORDER OF

ARBOLEDA CO., INC

PESOS

One hundred forty three thousand four hundred fifty pesos only

PCI Bank

__________________________

SUCAT ROAD BRANCH

Grac
e

CORPORATION
VAT 2011-002-148 | TIN 4004-009-175

Payee:

Amount
in words:
For

ARBOLEDA CO., INC

One hundred forty three thousand four hundred fift

In payment of purchases

Date of Check:

Check No.:

January 4, 2012
Prepared by:

Checked By:

Approved by:

Received above amount P


by

Date :

F-1.5
12345

CHECK NO.

DATE

December 2, 2011

300,000.00

__________________________

No.

CASH VOUCHER

300

12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689


Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph
Date:

December 2, 2011

usand pesos only

300,000.00

12345

d above amount P

CHECK NO.

DATE

12346

December 5, 2011

972,750.00

ndred fifty pesos only


__________________________

No.

CASH VOUCHER

301

12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689


Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph
Date:

December 5, 2011

d seven hundred fifty pesos only

972,750.00

12346

d above amount P

CHECK NO.

DATE

12347

December 7, 2011

34,200.00

__________________________

CASH VOUCHER

No.

302

12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689

Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph


Date:

December 7, 2011

o hundred pesos only

34,200.00

12347

d above amount P

CHECK NO.

DATE

12348

December 9, 2011

87,500.00

__________________________

CASH VOUCHER

No.

303

12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689


Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph
Date:

December 9, 2011

ve hundred pesos only

87,500.00

12348

d above amount P

12349

CHECK NO.

DATE

December 10, 2011

175,000.00

__________________________

No.

CASH VOUCHER

304

12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689


Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph
Date:

December 10, 2011

e thousand pesos only

d above amount P

175,000.00

12349

12350

CHECK NO.

DATE

December 10, 2011

114,900.00

pesos only
__________________________

No.

CASH VOUCHER

305

12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689


Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph
Date:

December 10, 2011

nd nine hundred pesos only

114,900.00

12350

d above amount P

CHECK NO.

DATE

12351

December 10, 2011

ve hundred pesos only

1,554,500.00

__________________________

No.

CASH VOUCHER

306

12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689


Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph
Date:

December 10, 2011

housand five hundred pesos only

1,554,500.00

12351

d above amount P

CHECK NO.

DATE

12352

December 12, 2011

14,000.00

__________________________

CASH VOUCHER

No.

307

12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689


Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph

Date:

December 12, 2011

nd pesos only

14,000.00

12352

d above amount P

CHECK NO.

DATE

12353

December 14, 2011

1,080,000.00

__________________________

CASH VOUCHER

No.

308

12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689


Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph
Date:

December 14, 2011

ousand pesos only

1,080,000.00

12353

d above amount P

12354

CHECK NO.

DATE

December 15, 2011

625,000.00

__________________________

No.

CASH VOUCHER

309

12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689


Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph
Date:

December 15, 2011


thousand pesos only

d above amount P

625,000.00

12354

12355

CHECK NO.

DATE

December 15, 2011

13,250.00

__________________________

No.

CASH VOUCHER

310

12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689


Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph
Date:

December 15, 2011

undred fifty pesos only

13,250.00

12355

d above amount P

CHECK NO.

DATE

12356

December 20, 2011

83,300.00

__________________________

No.

CASH VOUCHER

311

12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689


Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph
Date:

December 20, 2011

ee hundred pesos only

83,300.00

12356

d above amount P

CHECK NO.

DATE

12357

December 21, 2011

5,000.00

__________________________

CASH VOUCHER

No.

312

12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689


Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph
Date:

December 21, 2011


pesos only

5,000.00

12357

d above amount P

12358

CHECK NO.

DATE

December 26, 2011

32,500.00

__________________________

No.

CASH VOUCHER

313

12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689


Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph
Date:

December 26, 2011

e hundred pesos only

d above amount P

32,500.00

12358

12359

CHECK NO.

DATE

December 26, 2011

125,315.00

red fifteen pesos only


__________________________

No.

CASH VOUCHER

314

12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689


Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph
Date:

December 26, 2011

three hundred fifteen pesos only

125,315.00

12359

d above amount P

CHECK NO.

DATE

12360

December 26, 2011

25,000.00

__________________________

No.

CASH VOUCHER

315

12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689


Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph
Date:

December 26, 2011

and pesos only

25,000.00

12360

d above amount P

CHECK NO.

DATE

12361

December 26, 2011

25,490.00

__________________________

CASH VOUCHER

No.

316

12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689


Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph
Date:

December 26, 2011

undred ninety pesos only

25,490.00

12361

d above amount P

CHECK NO.

DATE

12362

December 27, 2011

13,325.00

pesos only
__________________________

CASH VOUCHER

No.

317

12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689


Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph
Date:

December 27, 2011

dred twenty five pesos only

13,325.00

12362

d above amount P

12363

CHECK NO.

DATE

December 28, 2011

85,000.00

__________________________

No.

CASH VOUCHER

318

12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689


Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph
Date:

December 28, 2011

and pesos only

d above amount P

85,000.00

12363

12364

CHECK NO.

DATE

December 30, 2011

942,840.00

ed forty pesos only


__________________________

No.

CASH VOUCHER

319

12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689


Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph
Date:

December 28, 2011

eight hundred forty pesos only

942,840.00

12364

d above amount P

CHECK NO.

DATE

12365

January 3, 2012

85,000.00

__________________________

No.

CASH VOUCHER

320

12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689


Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph
Date:

January 3, 2012

and pesos only

85,000.00

12365

d above amount P

CHECK NO.

DATE

12366

January 3, 2012

249,750.00

ed fifty pesos only


__________________________

CASH VOUCHER

No.

321

12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689


Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph

Date:

January 3, 2012

seven hundred fifty pesos only

249,750.00

12366

d above amount P

CHECK NO.

DATE

12367

January 3, 2012

97,000.00

__________________________

CASH VOUCHER

No.

322

12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689


Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph
Date:

December 26, 2011

sand pesos only

97,000.00

12367

d above amount P

12368

CHECK NO.

DATE

January 4, 2012

70,000.00

__________________________

No.

CASH VOUCHER

323

12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689


Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph
Date:

January 4, 2012

nd pesos only

70,000.00

12368

d above amount P

CHECK NO.

12369

DATE

January 4, 2012

15,000.00

__________________________

No.

CASH VOUCHER

324

12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689


Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph
Date:

January 4, 2012

d pesos only

15,000.00

12369

d above amount P

CHECK NO.

DATE

12370

January 4, 2012

48,500.00

__________________________

No.

CASH VOUCHER

325

12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689


Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph
Date:

January 4, 2012

e hundred pesos only

48,500.00

12370

d above amount P

12371

CHECK NO.

DATE

January 4, 2012

143,450.00

ed fifty pesos only


__________________________

CASH VOUCHER

No.

326

12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689


Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph
Date:

d four hundred fifty pesos only

January 4, 2012

d above amount P

143,450.00

12371

GRACE CORPORATION

F-1.6

Purchase Discounts
December 31, 2011

Invoice Number
117
140
127

CV Number
311
314
257

Discount Taken
1700
2560
260

Net of Input Tax


1545
2327
236

4520

4109

Due to the Purchase Discount, there was a change in cost per item of the related invoices.
Invoice Number
117
140
140
127

Item
BIC Ballpen - Blue
Cartolina
Art Paper
Pilot Pen

Old Cost
8.5
8.5
145
103

New Cost
8.33
8.33
142.1
101.96

F1

GRACE CORPORATION
Recalculation of Cost of Sales
December 31, 2011

Invoice number

Invoice
Number

Items

Quantity

Cost

Item Total

Invoice Total (Net of Input


Tax)

1251
Plain Pencil - Mongol

1250

70.00

87,500.00

250

90.00

22,500.00

Silver Paper Clips

10

35.00

350.00

Blackie Carbon Paper

20

100.00

2,000.00

Whitey Bond Paper

150

130.00

19,500.00

Milky Onion Skin

200

110.00

22,000.00

Bic Ballpen - Black

750

8.50

6,375.00

Bic Ballpen - Blue

750

8.33

6,247.50

Bic Ballpen - Red

400

8.50

3,400.00

Charcoal Pencil - Steadler

169,872.50

154,430

1252
Fastener

350

1.00

350.00

Folder - regular

350

2.50

875.00

Elmer's Glue

60

22.50

1,350.00

Roll-O Typewriter Ribbon

20

20.50

410.00

2,985.00
1253
Quink Ink

70

57.00

3,990.00

Pilot Fountain Pen

70

101.96

7,137.20

100
20

130.00
100.00

13,000.00
2,000.00

Whitey Bond Paper


Blackie Carbon Paper

1251
1252
1253
1254
1255
1256
1257
1258
1259
1260
1261
1262
1263

2,714

1264
1265
1266

Milky Onion Skin


10 Column Worksheet - Vernal
12 Column Worksheet - Vernal

80
50
50

110.00
50.00
50.00

8,800.00
2,500.00
2,500.00

39,927.20

Difference per discount:


36,297

1254
Plain Pencil - Mongol
Charcoal Pencil - Staedler
16 column worksheet - vernel
14 column worksheet - vernel
12 column worksheet - vernel
10 column worksheet - vernel
Yellow paper - Old Mill
Bond Paper - Whitey
Onion Skin - Milky
Cartolina
Plastic Cover
Art Paper
Folder - Regular
Folder - Long

800.00
700.00
500.00
500.00
500.00
500.00
1500.00

70.00
90.00
50.00
50.00
50.00
50.00
30.00

500.00
700.00
300.00
2500.00
250.00
500.00
500.00

130.00
110.00
8.33
17.50
142.10
2.50
3.50

56000.00
63000.00
25000.00
25000.00
25000.00
25000.00
45000.00
65000.00
77000.00
2499.00
43750.00
35525.00
1250.00
1750.00

490774.00
1255
Plain pencil- mongol
thumbtacks - golden
Elemer's glue
Carbon paper - blackie
Typewriter Ribbon - Roll-o
scissors
thick notebook
thin notebook
Bic ballpen - black
Bic ballpen - blue
Bic Ballpen - red
Fastener

100.00
150.00
300.00
150.00
240.00
300.00
1500.00
1000.00
2500.00
2500.00
2500.00
1000.00

35.00
40.00
22.50
100.00
20.50
12.00
32.50
27.50
8.50
8.33
8.50
1.00

3500.00
6000.00
6750.00
15000.00
4920.00
3600.00
48750.00
27500.00
21250.00
20825.00
21250.00
1000.00

446,158

Difference per error in cost of sales shee

Intermediate Pad - old mill


Ink - Quink

1500.00
150.00

15.00
57.00

22500.00
8550.00

211395.00

192,177

1256
scissors
Fountain pen - pilot
thumbtacks - golden
paper clips - silver
cartolina
16 column worksheet
14 column worksheet
12 column worksheet
10 column worksheet

200
50
20
20
150
300
500
400
500

vernal
vernal
vernal
vernal

12.00
101.96
40.00
35.00
8.33
50.00
50.00
50.00
50.00

2,400.00
5,098.00
800.00
700.00
1,249.50
15,000.00
25,000.00
20,000.00
25,000.00

95,247.50

86,589

1257
Intermediate Pad - Old Mill
Yellow Paper - Old Mill
Onion Skin - milky
Bond Paper - Whitey
Scissors
Thick Notebook
Thin Notebook

250
450
100
100
50
300
300

15
30
110
130
12
32.5
27.5

3750
13500
11000
13000
600
9750
8250
59850

1258
Intermediate Pad - Old Mill
Yellow Paper - Old Mill
Plastic Cover
Cartolina
Folder - regular
Folder - long
Leaf notebook - Thick
Bind Notebook - Thin
Fastener
Scissors

1500
1250
1300
450
250
274
300
300
500
150

15
30
17.5
8.33
2.5
3.5
32.5
27.5
1
12

22500
37500
22750
3748.5
625
959
9750
8250
500
1800

54,409

Art Paper
Elmer's Glue

200
150

142.1
22.5

28420
3375
140177.5

127,434

16800
10800
1050
800
4000
1230
2082.5
2125
1275
2100
1500
8156.8
51919.3

47,199

1200
8550
1350
26000
39600
76700

69,727

1259
Plain Pencil - Mongol
Charcoal Pencil - Staedler
Silver Paper Clips
Golden Thumbstacks
Blackie Carbon Paper
Roll-O Typewriter Ribbon
Bic Ballpen - Blue
Bic Ballpen - Black
Bic Ballpen - Red
Folder - Long
Folder - Regular
Pilot Fountain Pen

240
120
30
20
40
60
250
250
150
600
600
80

70
90
35
40
100
20.5
8.33
8.5
8.5
3.5
2.5
101.96

1260
Fastener
Quick Ink
Elmer's Glue
Bond Paper - Whitey
Onion Skin - Milky

1200
150
60
200
360

1
57
22.5
130
110

1261
Plain Pencil - Mongol
Charcoal Pencil - Staedler
Silver Paper Clips
Golden Thumbstacks
Intermediate pad - old mill
Yellow Paper - Old Mill
Cartolina
Elmer's Glue
10 CW

50
100
50
50
500
500
250
120
500

70
90
35
40
15
30
8.33
22.5
50

3500
9000
1750
2000
7500
15000
2082.5
2700
25000

12 CW
14 CW
16 CW

500
500
500

50
50
50

25000
25000
25000
143532.5

130,484

6375
6247.5
6375
14625
22000
55622.5

50,566

1262
Bic Ballpen - Black
Bic Ballpen - Blue
Bic Ballpen - Red
Thick Notebook
Thin Notebook

750
750
750
450
800

8.5
8.33
8.5
32.5
27.5

1263
10 CW
12 CW
14 CW
16 CW
Type writer Ribbon
Plain Pencil - Mongol
Charcoal Pencil - Staedler
Bic Ballpen - Black
Bic Ballpen - Blue
Bic Ballpen - Red
Yellow Paper - Old Mill
Bond Paper - whitey
Carbon Paper - Blackie

1500
1250
2000
1250
100
500
250
1250
1250
750
1200
600
60

50
50
50
50
20.5
70
90
8.5
8.33
8.5
30
130
100

75000
62500
100000
62500
2050
35000
22500
10625
10412.5
6375
36000
78000
6000
506962.5

460,875
1,859,060

1264
Charcoal Pencil - Staedler
Bond Paper - Whitey
Bic Ballpen - Black
Bic Ballpen - Blue
Bic Ballpen - Red

500
300
1500
1500
500

90
130
8.5
8.33
8.5

45000
39000
12750
12495
4250
113495

103,177

SALES
1265
Elmer's Glue
Typewriter Ribbon - Roll-O
Bond Paper - Whitey

1600
1200
500

22.5
20.5
130

36000
24600
65000
125600

114,182

30000
130000
160000

145,455

1266
Yellow Paper - Old Mill
Bond Paper - Whitey

1000
1000

30
130

F-1.7
Cost of Sales Balances per
sales invoice per Cost of
Sales Sheet (GJ 13)

154,545
2,714
36,364
639,427
86,659
54,409
127,955
117,041
181,205
461,068
1,861,387

Cost of Sales Balances per


Sales invoice per auditors'
recalculation

154,430
2,714
36,297
446,158
192,177
86,589
54,409
127,434
47,199
69,727
130,484
50,566
460,875
1,859,058
103,177
114,182
145,455
2,221,872

ce per discount:

ce per error in cost of sales sheet:

2,328.18 F1
F1
362,814

STOCK CARD
Pencil
Mongol Plain

ITEM
DESCRIPTION

REFERENCE

DATE

PURCHASE INV.

SALES INV.

2011
Nov.
Dec.

30 Balance
1 PI 101
4
12
26
30
31
31
29
31
1/4/2012
final adjustment

RECEIVED

5,000
SI
SI
SI
SI
SI
SI
SI

1251
1254
1259
1261
1265
1265
1255

STOCK CARD
ITEM
DESCRIPTION

DATE

2011
Nov.
Dec.

Pencil
Steadler charcoal
REFERENCE
PURCHASE INV.

30
3 PI 1082
4
12
26
30
31
29 PI 7729
29

SALES INV.

RECEIVED

5,000
SI
SI
SI
SI
SI

1251
1254
1259
1261
1265
500

SI 1263

31
1/4/2012

STOCK CARD
Ballpen
BIC-Red

ITEM
DESCRIPTION

REFERENCE

DATE

PURCHASE INV.

SALES INV.

2011
Nov.
Dec.

30 Balance
1 PI 101
4
12
26
30
31
30
31
29 PI 101
30
31
1/3/2012
1/3/2012 PI 770
1/4/2012
final adjustment

RECEIVED

7,500
SI
SI
SI
SI
SI
SI
SI

1251
1254
1259
1262
1263
1259
1263

90
1,500

SI 1264
SI 1267
2,000

STOCK CARD
ITEM
DESCRIPTION

DATE

2011
Nov.
Dec.

Ballpen
BIC-Blue
REFERENCE
PURCHASE INV.

30 Balance
4
12
16 PI 117
26
30

SALES INV.

RECEIVED

SI 1251
SI 1255
10,000
SI 1259
SI 1262

31
29 PI 7729
30
31
1/3/2012 PI 770
1/3/2012
1/4/2012

SI 1263
1,500
SI 1264
3,000
SI 1267

STOCK CARD
Ballpen
BIC-Black

ITEM
DESCRIPTION

REFERENCE

DATE

PURCHASE INV.

SALES INV.

2011
Nov.
Dec.

30 Balance
4
12
18 PI 1095
26
30
31
29 PI 7729
30
31
1/3/2012 PI 770
1/3/2012
1/4/2012

RECEIVED

SI 1251
SI 1254
10,000
SI 1259
SI 1262
SI 1263
1,500
SI 1264
2,500
SI 1267

STOCK CARD
ITEM
DESCRIPTION

DATE

2011
Nov.
Dec.

Fountain Pen
Pilot
REFERENCE
PURCHASE INV.

30 Balance
7
17
24 PI 127
26

SALES INV.

RECEIVED

SI 1253
SI 1256
250
SI 1259

31
1/4/2012
final djustment

STOCK CARD
ITEM
DESCRIPTION

DATE

Worksheet
Vernal - 16 columns
REFERENCE
PURCHASE INV.

SALES INV.

2011
Nov.
Dec.

30 Balance
2 PI 117
12
17
30
31
31
1/4/2012

RECEIVED

15,000
SI
SI
SI
SI

1254
1256
1261
1263

STOCK CARD
ITEM
DESCRIPTION

DATE

Worksheet
Vernal - 14 columns
REFERENCE
PURCHASE INV.

SALES INV.

2011
Nov.
Dec.

30 Balance
2 PI 111
12
17
30
31
31
1/4/2012

STOCK CARD

RECEIVED

13,500
SI
SI
SI
SI

1254
1256
1261
1263

ITEM
DESCRIPTION

DATE

Worksheet
Vernal - 12 columns
REFERENCE
PURCHASE INV.

SALES INV.

2011
Nov.
Dec.

30 Balance
6 PI 127
10
12
17
30
31
30
31
1/4/2012

RECEIVED

17,000
SI
SI
SI
SI
SI
SI

1253
1254
1256
1261
1263
1261

STOCK CARD
ITEM
DESCRIPTION

DATE

Worksheet
Vernal - 10 columns
REFERENCE
PURCHASE INV.

SALES INV.

2011
Nov. 30 Balance
Dec. 6 PI 127
10
12
17
30
31
31
1/4/2012

RECEIVED

15,000
SI
SI
SI
SI
SI

1253
1254
1256
1261
1263

STOCK CARD
ITEM
DESCRIPTION

DATE

Pad Paper
Old Mill - intermediate
REFERENCE
PURCHASE INV.

SALES INV.

RECEIVED

2011
Nov. 30 Balance
Dec. 10 PI 130
12
19
23
30
31
1/4/2012

7,500
SI
SI
SI
SI

1255
1257
1258
1261

STOCK CARD
Pad Paper
Old Mill - yellow

ITEM
DESCRIPTION

REFERENCE

DATE

PURCHASE INV.

SALES INV.

2011
Nov.
Dec.

30 Balance
10 PI 130
12
19
23
30
31
30
30 PI 825
31
1/3/2012 PI 770
1/3/2012
1/4/2014

RECEIVED

8,500
SI
SI
SI
SI
SI
SI

1254
1257
1258
1261
1263
1266
1,000
250

SI 1268

STOCK CARD
ITEM
DESCRIPTION

DATE

2011
Nov.
Dec.

Bond Paper
Whitey
REFERENCE
PURCHASE INV.

30 Balance
4

SALES INV.

SI 1251

RECEIVED

10 PI 130

4,250
SI
SI
SI
SI
SI

12
17
26
31
29 PI 7729
30 PI 825
30
30
30
31
1/3/2012 PI 770
1/3/2012
1/4/2012

1253
1254
1257
1260
1263
1,300
500

SI 1265
SI 1266
SI 1264
100
SI 1268

STOCK CARD
ITEM
DESCRIPTION

DATE

Onion Skin
Milky
REFERENCE
PURCHASE INV.

SALES INV.

2011
Nov.
Dec.

30 Balance
4
8
10 PI 130
12
19
26
31
1/4/2012
final adjusment

RECEIVED

SI 1251
SI 1253
3,000
SI 1254
SI 1257
SI 1260

100

STOCK CARD
Cartolina

ITEM
DESCRIPTION

DATE

REFERENCE
PURCHASE INV.

SALES INV.

RECEIVED

2011
Nov.
Dec.

30 Balance
12
17
20 PI 130
23
30
20 PI 140
31
1/4/2012
fInal adjustment

SI 1254
SI 1256
2,250
SI 1258
SI 1261
250

STOCK CARD
Plastic Cover

ITEM
DESCRIPTION

REFERENCE

DATE

PURCHASE INV.

SALES INV.

2011
Nov.
Dec.

30 Balance
9 PI 112
12
23
31
1/4/2012

RECEIVED

5,000
SI 1254
SI 1258

STOCK CARD
Art Paper

ITEM
DESCRIPTION

DATE

2011
Nov.
Dec.

REFERENCE
PURCHASE INV.

30 Balance
12
20 PI 140
23
20 PI 140
31

SALES INV.

RECEIVED

SI 1254
750
SI 1258
1,250

1/4/2012
final adjustment

STOCK CARD
ITEM
DESCRIPTION

DATE

Ink
Quink
REFERENCE
PURCHASE INV.

SALES INV.

RECEIVED

2011
Nov.
Dec.

30 Balance
7 PI 107
10
12
26
31
1/4/2012
final adjustment

600
SI 1253
SI 1255
SI 1260

20

STOCK CARD
ITEM
DESCRIPTION

DATE

Folder
Regular
REFERENCE
PURCHASE INV.

2011
Nov.
Dec.

30 Balance
7
12
15 PI 135
23
26
31
1/4/2012
final adjustment

STOCK CARD
ITEM

Folder

SALES INV.

RECEIVED

SI 1252
SI 1254
2,500
SI 1258
SI 1259

100

DESCRIPTION

DATE

Long
REFERENCE
PURCHASE INV.

SALES INV.

2011
Nov.
Dec.

30 Balance
12
15 PI 135
23
26
31
1/4/2012
final adjustment

RECEIVED

SI 1254
2,000
SI 1258
SI 1259

STOCK CARD
ITEM
DESCRIPTION

DATE

Paper Clips
Silver
REFERENCE
PURCHASE INV.

SALES INV.

2011
Nov.
Dec.

30 Balance
4
12
17
23 PI 1099
26
30
23 PI 1099
31
1/4/2012
final adjustment

RECEIVED

SI 1251
SI 1255
SI 1256
250
SI 1259
SI 1261
100

10

STOCK CARD
ITEM
DESCRIPTION

DATE

Thumb Tacks
Golden
REFERENCE
PURCHASE INV.

SALES INV.

RECEIVED

2011
Nov.
Dec.

30 Balance
4
12
17
23 PI 1099
26
30
4
23 PI 1099
12 PI 1090
31
1/4/2012
final adjustment

SI 1251
SI 1255
SI 1256
250
SI 1259
SI 1261
SI 1251
(250)
350

40

STOCK CARD
ITEM
DESCRIPTION

DATE

Glue
Elmer's
REFERENCE
PURCHASE INV.

SALES INV.

2011
Nov.
Dec.

30 Balance
7
12
23
26
29 PI 130
30
30 PI 825
30
31
1/4/2012
final adjustment

SI
SI
SI
SI

RECEIVED

1252
1255
1258
1260
850

SI 1261
1,600
SI 1265

STOCK CARD
ITEM
DESCRIPTION

DATE

Carbon paper
Blackie
REFERENCE

RECEIVED

DATE

PURCHASE INV.

SALES INV.

2011
Nov.
Dec.

30 Balance
4
8
12
26 PI 147
26
30
31
1/4/2012

RECEIVED

SI 1251
SI 1253
SI 1255
450
SI 1259
SI 1263

STOCK CARD
Typewritter Ribbon
Rollo-O

ITEM
DESCRIPTION

REFERENCE

DATE

PURCHASE INV.

SALES INV.

2011
Nov.
Dec.

30 Balance
7
12
26
27 PI 1100
31
30 PI 805
30
31
1/4/2012
final adjustment

RECEIVED

SI 1252
SI 1255
SI 1259
650
SI 1263
1,200
SI 1265

STOCK CARD
Scissors

ITEM
DESCRIPTION

DATE

2011
Nov.

REFERENCE
PURCHASE INV.

30 Balance

SALES INV.

RECEIVED

Dec.

3 PI 1082
12
17
19
23
31
1/4/2012

800
SI
SI
SI
SI

1251
1253
1255
1259

STOCK CARD
Notebook
Leaf Thick

ITEM
DESCRIPTION

REFERENCE

DATE

PURCHASE INV.

SALES INV.

2011
Nov.
Dec.

30 Balance
12
19
22 PI 145
23
31
31
1/4/2012

RECEIVED

SI 1255
SI 1257
4,000
SI 1258
SI 1262

STOCK CARD
ITEM
DESCRIPTION

DATE

2011
Nov.
Dec.

Notebook
Bind Thin
REFERENCE
PURCHASE INV.

30 Balance
12
19
23
28 PI 151
30
12

SALES INV.

RECEIVED

SI 1255
SI 1257
SI 1258
6,000
SI 1262
SI 1255

19
23
30
31
1/4/2012

SI 1257
SI 1258
SI 1262

STOCK CARD
Fastener

ITEM
DESCRIPTION

DATE

2011
Nov.
Dec.

REFERENCE
PURCHASE INV.

30 Balance
12
19
22 PI 120
23
31
31
1/4/2012

SALES INV.

RECEIVED

SI 1252
SI 1255
5,000
SI 1258
SI 1260

F-1.8
1001
box

STOCK NO.
UNIT

ISSUED

BALANCE

200
5,200
3,950
3,150
2,910
2,860
2,360
2,860
2,760
2,760
2,360
2,360

1,250
800
240
50
500
(500)
100

400

1002
box

STOCK NO.
UNIT

ISSUED

BALANCE

250
700
120
100
500
250

100
5,100
4,850
4,150
4,030
3,930
3,430
3,930
3,680

3,680
3,680

1003
piece

STOCK NO.
UNIT

ISSUED

BALANCE

500
8,000
7,600
5,100
4,860
4,710
3,960
4,050
3,450
4,950
4,450
4,450
2,450
4,450
3,450
3,450

400
2,500
240
150
750
600
500
2,000

1,000

1004
piece

STOCK NO.
UNIT

ISSUED

BALANCE

750
2,500
250
750

4,000
3,250
750
10,750
10,500
9,750

1,250

8,500
10,000
8,500
8,500
11,500
8,500
8,500

1,500

3,000

1005
piece

STOCK NO.
UNIT

ISSUED

BALANCE

5,000
4,250
1,750
11,750
11,500
10,750
9,500
11,000
9,500
9,500
12,000
9,500
9,500

750
2,500
250
750
1,250
1,500

2,500

1006
piece

STOCK NO.
UNIT

ISSUED

BALANCE

70
50
80

200
130
80
330
250

250
230
230

20

1007
pads

STOCK NO.
UNIT

ISSUED

BALANCE

100
15,100
14,600
14,300
13,800
12,550
12,550
12,550

500
300
500
1,250

1,008

STOCK NO.

pads

UNIT

ISSUED

BALANCE

500
500
500
2,000

200
13,700
13,200
12,700
12,200
10,200
10,200
10,200

1009
pads

STOCK NO.
UNIT

ISSUED

BALANCE

100
17,100
17,050
16,550
16,150
15,950
14,700
14,400
14,400
14,400

50
500
400
200
1,250
300

1010
pads

STOCK NO.
UNIT

ISSUED

BALANCE

200
15,200
15,150
14,650
14,150
13,650
12,150
12,150
12,150

50
500
500
500
1,500

STOCK NO.
UNIT

ISSUED

1011
pads

BALANCE

100
7,600
6,100
5,850
4,350
3,850
3,850
3,850

1,500
250
1,500
500

1012
pads

STOCK NO.
UNIT

ISSUED

BALANCE

200
8,700
7,200
6,750
5,500
5,000
3,800
2,800
3,800
3,800
4,050
3,800
3,800

1,500
450
1,250
500
1,200
1,000

250

1013
reams

STOCK NO.
UNIT

ISSUED

BALANCE

150

200
50

4,300
4,200
3,700
3,600
3,400
2,800
4,100
4,600
4,100
3,100
2,800
2,800
2,900
2,800
2,800

100
500
100
200
600

500
1,000
300

100

1014
reams

STOCK NO.
UNIT

ISSUED

BALANCE

300
100
20
3,020
2,320
2,220
1,860
1,860
1,960
1,960

200
80
700
100
360

STOCK NO.
UNIT

ISSUED

1015
rolls

BALANCE

500
200
50
2,300
1,850
1,600
1,850
1,850
1,540
1,540

300
150
450
250

310

1,016

STOCK NO.

meters

UNIT

ISSUED

BALANCE

100
5,100
2,600
1,300
1,300
1,300

2,500
1,300

1017
reams

STOCK NO.
UNIT

ISSUED

BALANCE

250
200

300
50
800
600
1,850
1,850

600
600

1,250

1018
bottle

STOCK NO.
UNIT

ISSUED

BALANCE

100
700
630
480
330
330
350
350

70
150
150

1019
piece

STOCK NO.
UNIT

ISSUED

BALANCE

350
500
250
600

STOCK NO.

1,000
650
150
2,650
2,400
1,800
1,800
1,900
1,900

1,020

piece

UNIT

ISSUED

BALANCE

600
100
2,100
1,850
1,250
1,250
1,200
1,200

500
250
600

50

1021
box

STOCK NO.
UNIT

ISSUED

BALANCE

150
140
40
20
270
240
190
290
290
300
300

10
100
20
30
50

STOCK NO.
UNIT

ISSUED

1022
box

BALANCE

200
190
40
20
270
250
200
210
(40)
310
310
350
350

10
150
20
20
50
(10)

1023
bottle

STOCK NO.
UNIT

ISSUED

BALANCE

600
540
240
90
30
880
760
2,360
760
760
660
660

60
300
150
60
120
1,600

100

STOCK NO.
UNIT

ISSUED

1024
bottle

BALANCE

ISSUED

BALANCE

200
180
160
10
460
420
360
360
360

20
20
150
40
60

1025
box

STOCK NO.
UNIT

ISSUED

BALANCE

600
580
340
280
930
830
2,030
830
830
630
630

20
240
60
100
1,200

200

STOCK NO.
UNIT

ISSUED

1026
pair

BALANCE

50

850
550
350
300
150
150
150

300
200
50
150

1027
piece

STOCK NO.
UNIT

ISSUED

BALANCE

2,000
500
200
4,200
3,900
3,450
3,450
3,450

1,500
300
300
450

1028
piece

STOCK NO.
UNIT

ISSUED

BALANCE

4,000
1,200
1,200
3,200
(3,000)

7,000
3,000
1,800
600
6,600
3,400
6,400

(900)
(900)
(2,400)

7,300
8,200
10,600
10,600
10,600

1029
piece

STOCK NO.
UNIT

ISSUED

BALANCE

350
1,000
500
1,200

1,500
1,150
150
5,150
4,650
3,450
3,450
3,450

GRACE CORPORATION
Observation of Physical Count
December 31, 2011

I. OBJECTIVES
1
2
3

To obtain evidence of the existence and condition of the inventory and the security of its storage
To observe how the client company conducts the inventory count
To test the accuracy of the counting

1
2
3

Existence
Completeness
Accuracy

1
2
3
4
5
6

Read inventory count manual


Performed inventory count on selected inventory items
Collected the physical inventory list
Footed and cross footed the recorded quantity per stock cards
Traced transactions recorded on the stock cards with corresponding purchase and sales invoices
Completed the test count sheet

II. ASSERTIONS

III. PROCEDURES

F-2

IV. FINDINGS

INVENTORY COUNT SHEET


DATE OF COUNT:

CLIENT'S NAME

STOCK LOCATION

JANUARY 4, 2012

GRACE CORPORATION

BALANCE SHEET DATE:

STORE

DECEMBER 31, 2011


DESCRIPTION

QUANTITY
AUDITOR'S

BRAND & STOCK

UNIT

STOCK

COUNT

PER CLIENT'S

WP REF

PER COUNT

WP REF

COUNT LIST

DIFFERENCE

REMARKS

Bic Ballpen
- Red

pcs.

3,450

F1.8

###

F2.1

3,450

Sale of 2500 pieces recorded on December


12 was erroneusly referred to IS 1254.
Proper ref - 1255.

- Blue

pcs.

8,500

F1.8

###

F2.1

8,500

Ok.

- Black

pcs.

9,500

F1.8

###

F2.1

9,500

Sale of 2500 pieces recorded on December


12 was erroneusly referred to IS 1254.
Proper ref - 1255.

Charcoal Pencil

box

3,680

F1.8

###

F2.1

3,680

Error in recording a sale of 250 boxes on


December 31 as 500 boxes, and should be
with reference to SI 1263 and not SI 1265.

Plain Pencil

box

2,360

F1.8

###

F2.1

2,360

Error in referring sale of 500 boxes recorded


on December 31 to SI 1265. Proper ref - SI
1263.

Whitey Bond paper


Yellow pad

ream
pad

2,800
3,800

F1.8
F1.8

###
###

F2.1
F2.1

2,800
3,800

0
0

Glue Elmer's

botl.

660

F1.8

F2.1

660

Roll-O Typewiter ribbo

box

630

F1.8

F2.1

630

760
-

Ok.
Ok.
Not recorded in any of the sales invoices.
Possibility of theft.
No stock card.

Calculator
- fx-39
- fx-40
- hl-807
Max Stapler
Worksheet
- 16 columns
- 14 columns

pcs.
pcs.
pcs.
pcs.

0
0
0
5

F1.8
F1.8
F1.8
F1.8

pads
pads

12,550
10,200

F1.8
F1.8

- 12 columns

pads

14,400

- 10 columns

pads

12,150

F2.1
F2.1
F2.1
F2.1

0
0
0
5

No stock card.
No stock card.
No stock card.
No stock card.

12,550
10,200

F2.1
F2.1

12,550
10,200

0
0

Ok.
Ok.

F1.8

14,700

F2.1

14,400

(300)

Sale of 500 pads dated November 30 with


ref to SI 1261 was recorded in the stock
card as 200.

F1.8

12,100

F2.1

12,150

50

Error in footing.

TAKEN BY

SHEET NO. _____ OF _____ SHEETS

AUDITOR'S

CLIENT'S

REPRESENTATIVE

REPRESENTATIVE

COMPLETE CHECK

FOR AUDITOR

TEST CHECK

FOR CLIENT

LEGEND:

V. CONCLUSION

Compared the per-transaction amounts recorded on the stock cards to that of the referred purchase and sales invoices.

The performed inventory counts (by both the auditor and the client) have proven the existence of the different inventory items of the company, and that the quantity as per
auditor's count and as per client's count are accurate. However, some balances that were recorded on the stock cards are either incorrect or referring to the wrong Sales Invoice.
Moreover, the missing inventory of 100 bottles of glue with no record in any of the company's sales invoices for the month is a possible indication of theft. Some stock cards
were not available for audit as well.

Prepared by:
JGN
Reviewed by:
MZB

Date:
1/12/2012
Date:
1/16/2012

per
s Invoice.
ards

GRACE CORPORATION
Physical Inventory List
January 4, 2012
UNIT COST
ITEM

BRAND

(VAT Inclusive)

Plain Pencil
Charcoal Pencil
Red Ballpen
Blue Ballpen
Black Ballpen

Mongol
Staedler
Bic
Bic
Bic

Fountain Pen
Worksheet
16 columns
14 columns
12 columns
10 columns
Intermediate pad
Yello Pad
Bond Paper
Onion Skin
Cartolina
Plastic Cover
Art Paper
Ink
Regular Folder
Long Folder
Paper Clips
Thumbtacks
Glue
Carbon Paper
Typewriter Ribbon
Scissors
Thick Notebook
Thin Notebook
Fastener
Envelope - short
Envelope - long
Calculator
fx-39
fx-40

Pilot

103.50

Vernal
Vernal
Vernal
Vernal
Old Mill
Old Mill
Whitey
Milky

50.00
50.00
50.00
50.00
15.00
30.00
130.00
110.00
9.00
17.50
150.00
57.00
2.50
3.50
30.00
40.00
22.50
100.00
20.50
12.00
32.50
27.50
1.10
2.50
3.50

Quink
Carona
Carona
Silver
Golden
Elmer's
Blackey
Roll-O
Mayon

Carona
Carona
Casio
Casio

70.00
90.00
8.50
8.50
8.50

1,800.00
2,000.00

UNITS

2,360
3,680
3,450
8,500
9,500

boxes
boxes
pieces
pieces
pieces

230 pieces
12,550
10,200
14,400
12,150
3,850
3,800
2,800
1,960
1,540
1,300
600
350
1,900
1,200
300
350
660
360
630
150
3,450
10,600
3,450
0
0

pads
pads
pads
pads
pads
pads
reams
reams
rolls
meters
reams
bottles
pieces
pieces
boxes
boxes
bottles
boxes
boxes
pairs
pieces
pieces
pieces
pieces
pieces

0 pieces
0 pieces

hl-807
Stapler

Casio
Max

1,000.00
152.50

0 pieces
5 pieces

F-2.1
TOTAL

165,200.00
331,200.00
29,325.00
72,250.00
80,750.00
23,690.00
627,500.00
510,000.00
720,000.00
607,500.00
57,750.00
114,000.00
360,000.00
215,600.00
13,500.00
22,750.00
90,000.00
18,240.00
4,750.00
4,200.00
9,000.00
12,800.00
14,850.00
36,000.00
12,915.00
1,800.00
112,125.00
227,900.00
37,950.00

762.50
4,522,787.00

1015
1016
1017
1018
1019
1020
1021
1022
1023
1024
1025
1026
1027
1028
1029
no stock card
no stock card
no stock card
no stock card
no stock card
no stock card

Cartolina
Plastic Cover
Art Paper
Ink
Regular Folder
Long Folder
Paper Clips
Thumbtacks
Glue
Carbon Paper
Typewriter Ribbon
Scissors
Thick Notebook
Thin Notebook
Fastener
Envelope - short
Envelope - long
Calculator
fx-39
fx-40
hl-807
Stapler

TOTAL
Input VAT
Total Ending Inventory, net of tax

Quink
Carona
Carona
Silver
Golden
Elmer's
Blackie
Roll-O
Mayon

F2.1
F2.1
F2.1
F2.1
F2.1
F2.1
F2.1
F2.1
F2.1
F2.1
F2.1
F2.1
F2.1
F2.1
F2.1
F2.1
F2.1
F2.1
F2.1
F2.1
F2.1

We assumed that cost is equal to NRV.


LEGEND:

Footed
Extended

V. CONCLUSIONS

PAS 2 Inventories state that measurement of inventories should be at the lower of cost and net realizable
The objective to determine whether inventories are properly measured in accordance with PAS have been
The inventories are properly valued where we assumed that cost is equal to NRV.

1,540
1,300
600
350
1,900
1,200
300
350
660
360
630
150
3,450
10,600
3,450

F1.6
F1.3
F1.6
F1.3
F1.3
F1.3
F1.6
F1.3
F1.3
F1.3
F1.3
F1.3
F1.3
F1.3

0
0

F1.3
F2.1
F2.1

0
0
0
5

F2.1
F2.1
F2.1
F2.1

8.33
17.50
142.10
57.00
2.50
3.50
35.00
40.00
22.50
100.00
20.50
12.00
32.50
27.50
1.00
2.50
3.50
1,800.00
2,000.00
1,000.00
152.50

12,828.20
22,750.00
85,260.00
19,950.00
4,750.00
4,200.00
10,500.00
14,000.00
14,850.00
36,000.00
12,915.00
1,800.00
112,125.00
291,500.00
3,450.00

8.33
17.50
142.10
57.00
2.50
3.50
35.00
40.00
22.50
100.00
20.50
12.00
32.50
27.50
1.00
2.50
3.50

1,800.00
2,000.00
1,000.00
152.50

762.50

###
###
###
###
###
###
###
###
###
###
###
###
###
###
###

###

4,564,721.50

(414,974.68)
4,149,746.82 F-1

t and net realizable value.


with PAS have been met.

Prepared by:
RIT
Reviewed by:
BAG

Date:
2/23/2012
Date:
2/28/2012

GRACE CORPORATION
Purchase Cut-Off
December 31, 2011

I. OBJECTIVE
1

To determine that all transactions relative to purchases have been recorded in the proper accounting period

To determine that all recorded transactions relative to purchases exist.

Completeness

Cut-off

Existence

Examined all purchase and sales invoices from December 2011 to January 4, 2012.

Traced purchases invoices to the purchase book to determine whether the purchase transactions are recorded in the proper accounting

Traced sales invoices to the sales book to determine whether the sales transactions are recorded in the proper accounting period.

II. ASSERTIONS

III. PROCEDURES

IV. FINDINGS

SALES TRANSACTIONS

Date

SALES
INVOICE

TERMS

1251

2/10. n/30

Eagle Contractors

E-1.3

1252

2/10. n/30

Dynasty
Construction

E-1.3

4,625

1253

2/10. n/30

Sampollo Company

E-1.3

58,035

1254

2/10. n/30

Benitez
Merchandising

E-1.3

711,950

E-1.3

309,525

rc

E-1.3

138,285

rc

CLIENT

AMOUNT

2011
Dec 1

246,825

rc

3
7
10

1255

15
1256

2/10, n/30

Ida Coronel

17

1257

2/10, n/30

Luli Samson

E-1.3

86,850

23

1258

2/10, n/30

Susan de Leon

E-1.3

204,975

23

1259

Cash

E-1.3

75,085

1260

Cash

E-1.3

111,395

1261

2/10, n/30

Buillding Blocks,
Inc.
Buillding Blocks,
Inc.
Cora Tayag

E-1.3

208,600

1262

2/10, n/30

E-1.3

81,275

1263

2/10,n/30

Centeno, Antonio
& Tantoco

E-1.3

736,000

1264

C.O.D

Eagle Contractors

E-1.5

165,550

1265

C.O.D

Dynasty
Construction

E-1.5

186,250

1266

2/10,n/30

Benitez
Merchandising

E-1.5

232,000

27

Cora Tayag

rc

29
30

CUT OFF
2012
Jan

1267

C.O.D

1268

2/10,n/30

Benitez
Merchandising
Luli Samson

E-1.5

93,750

E-1.5

29,725

Adjusting entries already recorded in procedure 1.

PURCHASE TRANSACTIONS

PURCHASE INVOICES

SUPPLIER

DATE

AMOUNT PER
INVOICE

101

Arboleda Co., Inc.

12/1/2011

F-1.2

111

Genius Paper Products

12/2/2011

F-1.2

1082

Sapphire Corporation

12/3/2011

F-1.2

127

Genius Paper Products

12/6/2011

F-1.2

107

Arboleda Co., Inc.

12/7/2011

F-1.2

112

Arboleda Co., Inc.

12/9/2011

F-1.2

130

Genius Paper Products

12/10/2011

F-1.2

1090

Sapphire Corporation

12/12/2011

F-1.2

135

Genius Paper Products

12/15/2011

F-1.2

117

Arboleda Co., Inc.

12/16/2011

F-1.2

1095

Sapphire Corporation

12/8/2011

F-1.2

140

Genius Paper Products

12/20/2011

F-1.2

120

Arboleda Co., Inc.

12/21/2011

F-1.2

145

Genius Paper Products

12/22/2011

F-1.2

1099

Sapphire Corporation

12/23/2011

F-1.2

127

Arboleda Co., Inc.

12/24/2011

F-1.2

147

Genius Paper Products

12/15/2011

F-1.2

1100

Sapphire Corporation

12/27/2011

F-1.2

151

Genius Paper Products

12/28/2011

F-1.2

130

Arboleda Co., Inc.

12/29/2011

F-1.2

Genius Paper Products

12/29/2011

F-1.3

7729

825

Arboleda Co., Inc.

12/30/2011

F-1.3

1/3/2011

F-1.3

CUT OFF

Sapphire Corporation

Proposed Adjusting Entries:

Inventory

229,318
22,932

Input Tax

Accounts Payable- Genius Paper Products

252,250

To record purchase on account made on December 29, 2011.

Inventory

141,455

Input Tax

14,145

Accounts Payable- Arboleda Co., Inc.


To record purchase on account made on December 30, 2011.

Verified computation

Vouched with sales invoice

155,600

Vouched with purchase invoice

V. CONCLUSIONS

Except for the three unrecorded sales in December (Sales Invoice No. 1264, 1265, and 1266) and two unrecorded purchases (Purchase Invoice 77

month, other sales and purchase transactions are recorded in the proper accounting period. Necessary adjusting entries are proposed by the aud
are noted.

ecorded in the proper accounting period.

e proper accounting period.

F-4

PROPERLY
RECORDED

REMARKS

YES

No exceptions noted

YES

Total amount of SI should be P4,625


but recorded as 46.25.

YES

No exceptions noted

YES

No exceptions noted

YES

Correct amount is 309, 450 but


recorded as 309250. Corrections
made in Procedure E-1

YES

Immaterial difference of 10 exists due


to a mistake in footing the Sales
Invoice. Corrections made in
Procedure E-1.

YES

No exceptions noted

YES

Correct amount is 202, 975 but


recorded as 204, 475 due to a mistake
in footing the Sales Invoice.
Corrections made in Procedure E-1.

YES

No exceptions noted

YES

No exceptions noted

YES

No exceptions noted

YES

No exceptions noted

YES

No exceptions noted

NO

Adjusting entries are recommended

*
NO

Adjusting entries are recommended

NO

Adjusting entries are recommended

*
*

YES

No Exceptions Noted

YES

No Exceptions Noted

AMOUNT PER
INVOICE

P
R
O
P
E
R
L
Y

R
E
C
Y
O
376,136 E
R
S
Y
D
1,295,455 E
E
Y
S
D
417,818 E
Y
S
1,454,545 E
S

REMARKS

No Exceptions Noted
No Exceptions Noted
No Exceptions Noted
No Exceptions Noted

31,091
79,545
1,136,364
12,727
12,045
77,273
77,273
116,250
4,545
118,182
11,136
23,409
40,909

Y
E
Y
S
E
Y
S
E
Y
S
E
Y
S
E
Y
S
E
Y
S
E
Y
S
E
Y
S
E
Y
S
E
Y
S
E
Y
S
E
Y
S
E
S

No Exceptions Noted
No Exceptions Noted
No Exceptions Noted
No Exceptions Noted
No Exceptions Noted
No Exceptions Noted
No Exceptions Noted
No Exceptions Noted
No Exceptions Noted
No Exceptions Noted
No Exceptions Noted
No Exceptions Noted
No Exceptions Noted

Amount in the invoice showed a


Ytotal amount of Php 19,125 gross
12,114 Eof input tax but correctly recorded
S by the entity at Php 12,114 net
of input tax.
Y
150,000 E
No Exceptions Noted
Y
S
17,386 E
No Exceptions Noted
S
229,318NOAdjusting entries recommended

141,455NOAdjusting entries recommended

No Exceptions Noted

ed purchases (Purchase Invoice 7729 and 825) on the same

g entries are proposed by the auditor. No other exceptions

Prepared by:

Date:

LCC

2/1/2012

Reviewed by:

Date:

DBM

2/5/2012

GRACE CORPORATION
Analytical Procedures - Inventory
December 31, 2011

I. OBJECTIVES
1
2
3

To determine the validity of inventory account balances.


To determine significant ratios in the accounts related to inventory transactions.
To evaluate fluctuations or unusual changes on the inventory account balances.

Accuracy

Obtained audited financial information from comparable prior periods and audited balances of accounts related
to inventories as of December 31, 2011.
Computed significant financial ratios for both prior and current period audited financial information.
Compared differences between prior and current period ratios.
Evaluated the company's performance based on the financial analysis ratios.

II. ASSERTIONS

III. PROCEDURES

2
3
4

F-5

IV. FINDINGS
Grace Corporation
Analytical Review Ratios
For the Period Ended December 31, 2011
December 31, 2009
700,000 F
-

December 31, 2010


December 31, 2011
900,000 F-3
4,149,747
29%
361%

Inventory, End
Percent Increase (Decrease)

Net Sales
Percent Increase (Decrease)

UA

47,916,000 UA

53,439,000 UA
12%

110,957,707
108%

Cost of Sales
Percent Increase (Decrease)

VA

29,085,000 VA
-

34,785,500 VA
20%

57,050,382
64%

Gross Profit

18,831,000

Inventory Turnover
Days in Inventory

Gross Profit Margin

18,653,500

53,907,325

21.74

11.30

16.79

32.31

39%

35%

49%

It is observed in the ratios displayed above that there is a substantial increase of 361% in the ending balance of inventory
which means that the company has invested in more inventories and thus resulting to an increase in net sales of 108%.
However, there is a signficant decline in the company's inventory turnover this year which could indicate a decrease in the
company's efficiency in inventory management. On the other hand, this could indicate that the company had taken
advantage of the prior year's high turnover by investing in more inventories in order to avoid lost orders.
It is also observed that there is a significant increase in the number of days the company takes in clearing its inventory.
This may be an indication that the company may have invested too much on inventories. But, considering the increase in
the company's gross profit margin, we can infer that the increase in inventory levels had not resulted to an unfavorable
company performance this year.

III. CONCLUSION
The objectives for this procedure were met. Inventory account balances were found to be reasonable based on the evaluation
made on the significant financial ratios above. No exceptions noted.

Prepared by:
BAG
Reviewed by:
RIT

Date:
2/21/2012
Date:
2/26/2012

F-5

Date:
2/21/2012
Date:
2/26/2012

Unadjusted balances
Adjustments:

TOTAL

ADJUSTED BALANCES
Net Sales
COS
110,244,403 Debit
-1363.6363636364
-300000
-68
9
210909
484000
150500
169318.181818182
###

-2,328
362,814
43,009

403,495

GRACE CORPORATION
Inspection of PPE
December 31, 2011

I. OBJECTIVES
1

To determine whether property, plant, and equipment included in

Existence

1
2
3
4

Obtained a list of property, plant and equipment that the compan


Selected certain property, plant and equipment to inspect
Went to the location of the chosen propery, plant and equipment
Inspected the selected property, plant and equipment

II. ASSERTIONS

III. PROCEDURES

IV. FINDINGS

Classification

Type

Land

2,000 square meters more or


less

Building

2,000 square meters

Furniture & Fixture

Air Conditioning System

Delivery Vans

Isuzu Crewcab

Office Equipment

Olympia Electric Typewriter


SN 41226

III. CONCLUSION
No exceptions noted.

K-1

ment included in the statement of financial position physically exist

hat the company owns or leases

and equipment

Inspected

Remarks

Exists

Exists

Exists

Exists

Exists

Prepared by:
MGM
Reviewed by:
JGN

Date:
3/15/2012
Date:
3/17/2012

GRACE CORPORATION
Schedule of Plant, Property & Equipme
December 31, 2011
Ledger
Classification
Land

Description
A parcel of land, Lot 4, Blk 2 of the consolidation-subdivision plan PCS 12456 situated
in Sucat, Municipality of Paraaque, Province
of Rizal containing an area of two thousand
(2,000) square meters more or less

Building

2,000 sq.m. concrete building

Additional improvements

Furniture
& Fixture

80 showcases for the store


@ P 5,000
40 office tables & 40 office
chairs @ P 24,000
10 conference tables with 80
chairs
30 four-drawer steel cabinets

1 office safe fire proof Hobart

50 venetian blinds FineLine

Air-conditioning System

Delivery

6 Isuzu Crewcab

Vans

Model 1993, Motor #123456


Chassis #821618

Office
Equipment

10 Personal Computers
Pentium 6
SN 41226

SN 41231

41227

41232

41228

41233

41229

41234

41230

41235

Olympia Electric Typewriter


SN 41226
18" Carriage. Model 142C
Olympia Electric Typewriter
SN 528376
12" Carriage. Model 215
10 Electric Fans
SN 15381

SN 15386

15382

15387

15383

15388

15384

15389

15385

15390

Footed/Cross-Footed

Extended
Traced to General Ledger

K-1.1

GRACE CORPORATION
e of Plant, Property & Equipment
December 31, 2011
Reference/
Date
CV-11-182

Estimated Life from


Acquisition Date

Cost
P

16,500,000.00

11.02.2010

CV-11-182

33,000,000.00

20 years

11.02.2010
20,000,000.00

CV-1-5
01.05.2011
P

53,000,000.00

CV-6-2
06.01.2010

400,000.00

40 years

CV-6-3
06.02.2010

480,000.00

5 years

CV-8-10
08.20.2010

600,000.00

CV-7-10
07.10.2010

240,000.00

CV-7-11
07.11.2010

280,000.00

CV-8-13
08.15.2010

320,000.00

1,230,000.00

CV-3-16
08.18-2010

CV-12-20
12.20-2010

3,550,000.00

6,000,000.00

10 years

CV-8-01
08.01-2010

2,050,000.00

CV-8-02
08.01-2010

25,000.00

10 years

CV-8-03
08.01-2010

25,000.00

10 years

CV-8-03
08.01-2010

30,000.00

5 years

d/Cross-Footed

d to General Ledger

2,130,000.00

5 years

GRACE CORPORATION
Vouching of Acquisitions and Disposals
December 31, 2011

I. OBJECTIVES
1
2

To determine that all property, plant, and equipment recorded in the


To determine that all property, plant, and equipment are reported at

1
2

Existence
Valuation

1
2
3

Obtained property, plant, and equipment balances as of January 1, 2


Obtained Schedule of Property, Plant, and Equipment accounts.
Verified amounts recorded in general ledger control accounts by exa
a. Investigated amounts of items listed in the Schedule of Pro
b. Checked footings, cross-footings, and extensions.
Noted current year acquisitions and/or additions and disposals.

II. ASSERTIONS

III. PROCEDURES

IV. FINDINGS

Balance per
Ledger, as of
January 1, 2011

PPE Item

Land
Building
Furnitures & Fixtures
Transportation Equipment
Office Equipment
Total PPE

K-2.1
K-2.1
K-2.1
K-2.1
K-2.1

16,500,000
33,000,000 K-1.1
3,550,000
6,000,000
2,130,000
61,180,000

LEGEND:

1
2
3

Vouched to Schedule of PPE

Property, plant, and equipment items are found to be recorded a


Additions in building account of P20,000,000 represent additiona
There are no further acquisitions and disposals this year.

However, certain items are to be noted. The supporting document gi


Furthermore, some items when crossfooted are wrong, but the audit
as it was presented in the 2009, 2010 and 2011 balances.

III. CONCLUSION

The existence of all property, plant, and equipment items recorded in the St
were properly valued at its cost. No adjustments were made. No exceptions

ipment recorded in the Statement of Financial Position exists.


ipment are reported at the appropriate amount.

ances as of January 1, 2011 and as of December 31, 2011


uipment accounts.
ontrol accounts by examining Schedule of Property, Plant, and Equipment accounts.
d in the Schedule of Property, Plant and Equipment.
nd extensions.
ns and disposals.

Acquisitions or
Additions

20,000,000

Balance per
Ledger, as of
Dec 2011

Disposals

K-1.1
K-1.1
K-1.1
K-1.1
K-1.1

Adjustments
Dr.

16,500,000

53,000,000

3,550,000

6,000,000

2,130,000

81,180,000

Cr.

hedule of PPE

found to be recorded at their historical costs as per Schedule of Property, Plant and Equipment.
000 represent additional improvements made this year and was capitalized.
osals this year.

upporting document given indicated the date of the cash voucher and not the acquisition date.
re wrong, but the auditors decide that the item description was at fault so the balance remained correct
11 balances.

tems recorded in the Statement of Financial Position were determined. It was also determined that property, plant, and equ
e made. No exceptions noted.

K-2

Balance per Audit,


as of December 31,
2011
16,500,000
53,000,000
3,550,000
6,000,000
2,130,000
81,180,000

mained correct

ned that property, plant, and equipment items

Prepared by:
BAG
Reviewed by:
JGN

Date:
2/14/2012
Date:
2/16/21012

ACCOUNT

DATE

Land
ITEM

2011
Nov. 30 Balance

ACCOUNT

DATE

DATE

ACCOUNT

DATE

ITEM

DATE

DEBIT

53,000,000.00

Accumulated Depreciation - Building


ITEM

DEBIT

Furniture and Fixture


ITEM

2011
Nov. 30 Balance

ACCOUNT

16,500,000.00

Building

2011
Nov. 30 Balance

ACCOUNT

DEBIT

DEBIT

3,550,000.00

Accumulated Depreciation - Furniture and Fixture


ITEM

DEBIT

ACCOUNT

DATE

Transportation Equipment
ITEM

2011
Nov. 30 Balance

ACCOUNT

DATE

ACCOUNT

DATE

DATE

6,000,000.00

Accumulated Depreciation - Transportation Equipment


ITEM

DEBIT

DEBIT

Office Equipment
ITEM

2011
Nov. 30 Balance

ACCOUNT

DEBIT

2,130,000.00

Accumulated Depreciation - Office Equipment


ITEM

DEBIT

K-2.1
ACCOUNT NO.

DATE

ITEM

CREDIT

ACCOUNT NO.

DATE

ITEM

ITEM

2011
Dec. 31

GJ 14

ITEM

2011
Dec. 31

ITEM

GJ 14

650,000.00

203
CREDIT

ACCOUNT NO.

DATE

202-A
CREDIT

ACCOUNT NO.

DATE

202
CREDIT

ACCOUNT NO.

DATE

201

203-A
CREDIT

355,000.00

Balance

355,000.00

ACCOUNT NO.

DATE

ITEM

quipment

CREDIT

ACCOUNT NO.

DATE

ITEM

2011
Dec. 31

GJ 12

ITEM

2011
Dec. 31

ITEM

GJ 12

1,200,000.00

205
CREDIT

ACCOUNT NO.

DATE

204-A
CREDIT

ACCOUNT NO.

DATE

204

205-A
CREDIT

426,000.00

GRACE CORPORATION
Capitalization of Property, Plant and Equipment
December 31, 2011

I. OBJECTIVES
1
2

To determine that property, plant and equipment transactions a


To determine that capitalizable costs of property, plant and equi

Completeness

1
2
3
4

Obtained Schedule of Plant, Property & Equipment


Selected sample items of property, plant & equipment for tracin
Checked footings and extended the amounts
Traced the property, plant & equipment accounts reflected on th

II. ASSERTIONS

III. PROCEDURES

IV. FINDINGS

Ledger Classification
Land

Building

Furniture & Fixture

Delivery Vans

Office Equipment

LEGEND:

After extending the amounts recorded in the Schedule of PPE, we fo


its total amount. Due to insufficient supporting documents, we ass

III. CONCLUSION

The 2011 additional improvement in Building is capitalized and is n


PPE. Transactions in relation with property, plant and equipement a
the Schedule of PPE, the number of items of office tablets and chai
are noted.

ORPORATION

operty, Plant and Equipment

e that property, plant and equipment transactions are recorded


e that capitalizable costs of property, plant and equipment are included and are not expensed.

hedule of Plant, Property & Equipment


mple items of property, plant & equipment for tracing
tings and extended the amounts
roperty, plant & equipment accounts reflected on the schedule to the General Ledger

Description
A parcel of land, Lot 4, Blk 2 of the consolidation-subdivision plan PCS 12456 situated
in Sucat, Municipality of Paraaque, Province
of Rizal containing an area of two thousand
(2,000) square meters more or less

K-1.1

2,000 sq.m. Concrete building

K-1.1

Additional improvements

K-1.1

80 showcases for the store @ P 5,000


40 Office tablets & 40 office chairs @ P24000
1 office safe fire proof Hobart

K-1.1
K-1.1
K-1.1

Air conditioning System

K-1.1

Isuzu Crewcab
Model 1993, Motor #123456
Chassis #821618

K-1.1

10 Personal Computers Pentium 6


SN 41226
41227
41228
41229
41230

K-1.1
SN 41231
41232
41233
41234
41235
K-1.1

10 Electric Fans
SN 15381
15382
15383
15384
15385

SN 15386
15387
15388
15389
15390

Traced to General Ledger


Extended

amounts recorded in the Schedule of PPE, we found out that the 40 office tablets and 40 office chairs does not c
ue to insufficient supporting documents, we assumed that the amount recorded in the schedule is correct.

improvement in Building is capitalized and is not expensed. No repair and maintenance expense and leases as
relation with property, plant and equipement are also recorded in the general ledger. Upon applying the audit p
, the number of items of office tablets and chairs does not correspond with its total amount. Other than that, n

K-3

Cost
16,500,000.00

33,000,000.00

20,000,000.00

400,000.00
480,000.00
280,000.00

1,230,000.00

60,000,000.00

2,050,000.00

30,000.00

ts and 40 office chairs does not correspond to


in the schedule is correct.

ntenance expense and leases associated with


edger. Upon applying the audit procedure in
otal amount. Other than that, no exceptions

Prepared by:
RIT
Reviewed by:
LCC

Date:
4/1/2012
Date:
4/5/2012

GRACE CORPORATION
Property, Plant and Equipment Review
December 31, 2011

I. OBJECTIVES
1
2

To determine the legal ownership of property, plant and equipment.


To determine that property, plant and equipment were properly reco

1
2

Presentation and Disclosure


Rights and Obligation

II. ASSERTIONS

III. PROCEDURES
1
2
3
4

Obtained Schedule of Plant, Property & Equipment


Obtained copy of contracts, agreement, loans and the like relating t
Reviewed the loan agreement on property and equipment.
Examined evidence of legal ownership of property and equipment.

IV. FINDINGS

Ledger Classification
Land

Description
A parcel of land, Lot 4, Blk 2 of the consolidation-subdivision plan PCS 12456 situated
in Sucat, Municipality of Paraaque, Province
of Rizal containing an area of two thousand
(2,000) square meters more or less

Building

2,000 sq.m. Concrete building


Additional improvements

Furniture & Fixture

80 showcases for the store @ P 5,000


40 Office tablets & 40 office chairs @ P24000
10 conference tablets with 80 chairs
30 four-drawer steel cabinets
1 office safe fire proof Hobart
50 venetian blinds FineLine
Air conditioning System

Delivery Vans

Isuzu Crewcab
Model 1993, Motor #123456
Chassis #821618

Office Equipment

10 Personal Computers Pentium 6


Olympia Electric Typewriter
18" Carriage. Model 142C
Olympia Electric Typewriter
12" Carriage. Model 215
10 Electric Fans

After reviewing the contracts, agreements and loans recorded in connection with PPE, w
was Land. No reclassification of the account is needed but the disclosure of the fact is n

III. CONCLUSION

No exceptions noted. Sufficient and appropriate evidence were gathered to su

K-4

plant and equipment.


ent were properly recorded and disclosed.

and the like relating to PPE.


d equipment.
perty and equipment.

ription

k 2 of the consoli-

Cost

Pledged as Collateral,
Lien, Endorsed, Etc.

16,500,000.00 C-3.1

Yes

33,000,000.00

No

20,000,000.00

No

CS 12456 situated
araaque, Province
a of two thousand

e @ P 5,000

400,000.00

No

ce chairs @ P24000

480,000.00

No

600,000.00

No

240,000.00

No

280,000.00

No

320,000.00

No

1,230,000.00

No

60,000,000.00

No

2,050,000.00
25,000.00

No

25,000.00

No

30,000.00

No

No

connection with PPE, we found out that the only property being pledged as collaterral for a bank loan
closure of the fact is needed.

ce were gathered to support the assertions made.

Prepared by:
MZB
Reviewed by:
LCC

Date:
4/1/2012
Date:
4/5/2012

1. We hereby report that at the close of business on

DECEMBER 31, 2011 our records showed the following balances to the

CREDIT

of the abovementioned client:


AMOUNT

DESCRIPTION

ACCOUNT NUMBER

14,267,272 Regular Checking Acct.

INTERES
RATE (P.A.)

775

Regular Checking Acct.


Savings Acct.
6,500,000 Time Deposits

18%

2. Direct liabilities, assets and related balances of said clients as at the


date above mentioned date were as follows: (attached details by LC)
AMOUNT

ACCOUNT

PESO

FOREIGN CURRENCY

Acceptance
Drafts
Trust Receipts
Marginal Deposits
Special Time Deposits
Import Letters of Credit
Domestic Letters of Credit

3. We further report that the acove-mentioned client was directly liable to us by way of overdrafts, loans, etc. at the close of business on that d
AMOUNT

DESCRIPTION OF LIABILITY

DATE GRANTED

10,000,000 Loans

DUE DATE

2011

2005

12.28

12.28

Other (Specify)
4. Other direct and/or contingent liabilities were:
AMOUNT

DECRIPTION OF ACCOUNT

NAME OF MAKER

Except as stated above, according to our records, said client had no other account with us at the above-mentioned date.
Date filled in:

Jan. 2, 2005

C-3.1
Grace Corporation

Re:

balances to the

CREDIT
INTEREST

RATE (P.A.)

PAID UP TO

18%

maturity

RESTRICTION ON WITHDRAWAL OF AMOUNT AND


OTHER REMARKS

1 year%
Due Date: June 30, 2005

5. Other accounts with the bank on that date were:


(details attached)*

a)
b)
c)
d)

Securities held for safekeeping


Items held for collection
Trust accounts
Others (specify)

he close of business on that date as follows:


INTEREST
RATE (P.A.)

PAID UP TO

21%

12.28

DESCRIPTION OF COLLATERALS, LIENS, ENDORSERS, ETC.


OTHER REMARKS

2005

NAME OF MAKER

Land

K-4

DUE DATE

DATE OF NOTE

REMARKS

ve-mentioned date.
Yours Truly,
Bank:
By:

PCIB

Jbiao Comptroller

GRACE CORPORATION
Recomputation of Depreciation Expense
December 31, 2011

I. OBJECTIVES
1
2

To ascertain that depreciation was properly computed.


To ascertain that the depreciation expense and accumulated deprec

1
2

Valuation
Presentation and Disclosure

1
2
3
4
5

Obtained a copy of supporting documents for each item PPE.


Examined the terms in the supporting documents (acquisition date)
Determined the companies policy in depreciation their Property, Pla
Checked if the accumulated depreciation and depreciation expanes
Determined appropriate adjustments.

II. ASSERTIONS

III. PROCEDURES

IV. FINDINGS

For the purpose of computing depreciation and due to the lack sufficient supporting docu
1
Because there is no known acquisition date, the auditors assumed all PPEs
2
For the furniture and fixtures with no given useful life, the auditors assume
3
Straight-line method on depreciation was used for the recomputation.
Land
YEARLY DEPRECIATION
Acquisition Cost:
Average Useful life per class
Yearly Depreciation
Additions/capitalized Improvements (2022)
Useful life
Depreciation of additions
Depreciation Expense, 2011
2009 Depreciation (8 months)
2010 Depreciation

K-1.1

16,500,000.00
-

Accumulated Depreciation (1/11)

COST
January 1, 2011
Additions:
Disposals

K-1.1

December 31,2011

16,500,000.00
16,500,000.00

ACCUMULATED DEPRECIATION
January 1, 2011
Current Year Depreciation
December 31, 2011
Net Book Value, December 31, 2011

16,500,000.00

ADJUSTMENTS
2009
Per book
Per auditors' recomputation
Adjustments

2010
Per book
Per auditors' computation
Adjustments

2011
Per book
Per auditors' computation
Adjustments

The adjustments marked red will not be readjusted because the auditors' deemed this am
PROPOSED JOURNAL ENTRIES
For 2009-related adjustments:
Retained Earnings
Accumulated Depreciation - Building
Retained Earnings
Accumulated Depreciation - Furniture and Fixture
Retained Earnings
Accumulated Depreciation - Transportation Equipment
Retained Earnings
Accumulated Depreciation - Office Equipment

Because these are prior-year adjustments, retained earnings account was u

For 2010-related adjustments:


Retained Earnings
Accumulated Depreciation - Building
Retained Earnings
Accumulated Depreciation - Furniture and Fixture
Retained Earnings
Accumulated Depreciation - Transportation Equipment
Retained Earnings
Accumulated Depreciation - Office Equipment

Because these are prior-year adjustments, retained earnings account was u


For 2011-related adjustments:
Depreciation Expense - Building
Accumulated Depreciation - Building

Accumulated Depreciation - Transportation Equipment


Depreciation Expense - Transporation Equipment
Depreciation expense was credited instead because the recorded d
was more than the recomputed depreciation.

LEGEND:
Footed
Cross-Footed
Computed from supporting documents
From computed adjustments

III. CONCLUSION

The auditors have discovered that Grace Corporation did not recognize dep
between the recorded expense and the recomputed expense during the ye

accumulated depreciation were properly presented in the Financial Statements.

ach item PPE.


ts (acquisition date).
on their Property, Plant and Equipments
epreciation expanese for the year coincides

ent supporting documents, the following assumptions were made.


rs assumed all PPEs were acquired at the date of incorporation (April 30, 2011).
he auditors assumed it to be 10 years.
ecomputation.
Building

K-1.1

K-1.1

33,000,000.00 K-1.1
20

1,650,000.00

20,000,000.00
18

1,111,111.11

2,761,111.11

1,100,000.00
1,650,000.00

Furniture and Fixtures

3,550,000.00 K-1.1
10

373,000.00

373,000.00

248,666.67
373,000.00

Transportation
Equipment
6,000,000.00 K-1.1
10

600,000.00

###
###

600,000.00

400,000.00
600,000.00

2,750,000.00

621,666.67

1,000,000.00

K-1.1
K-1.1

33,000,000.00 K-1.1
20,000,000.00
53,000,000.00

2,750,000.00
2,761,111.11
5,511,111.11
47,488,888.89

1,100,000.00
1,100,000.00

1,650,000.00
1,650,000.00

650,000.00
2,761,111.11
2,111,111.11

3,550,000.00 K-1.1
3,550,000.00

621,666.67
373,000.00
994,666.67

2,555,333.33

248,666.67
248,666.67

373,000.00
373,000.00

6,000,000.00 K-1.1
###
###
6,000,000.00

1,000,000.00
600,000.00
1,600,000.00

4,400,000.00

###
400,000.00
400,000.00

###
600,000.00
600,000.00

355,000.00
373,000.00
18,000.00

1,200,000.00
600,000.00
(600,000.00)

1,100,000.00

1,100,000.00

248,666.67

400,000.00

280,666.67

tors' deemed this amounts to be immaterial.

248,666.67

400,000.00

280,666.67

nings account was used instead of the corresponding depreciation expense.

1,650,000.00

373,000.00

600,000.00

421,000.00

1,650,000.00

373,000.00

600,000.00

421,000.00

2,111,111.11

600,000.00

nings account was used instead of the corresponding depreciation expense.

2,111,111.11

600,000.00

ause the recorded depreciation

d not recognize depreciation in the previous year 2009 and 2010, and that there are material differences
pense during the year 2011. Adjustments for the said differences were proposed.

K-5

Office Equipment

2,130,000.00 K-1.1
5

421,000.00

421,000.00

280,666.67
421,000.00

Total

61,180,000.00
45
3,044,000.00
20,000,000.00
18.00
1,111,111.11
4,155,111.11
2,029,333.33
3,044,000.00

701,666.67

5,073,333.33

2,130,000.00 K-1.1
- K-1.1
2,130,000.00

701,666.67
421,000.00
1,122,666.67
1,007,333.33

280,666.67
280,666.67

421,000.00
421,000.00

426,000.00
421,000.00
(5,000.00)

61,180,000.00
20,000,000.00
81,180,000.00

5,073,333.33
3,044,000.00
8,117,333.33

73,062,666.67

2,029,333.33
2,029,333.33

###
3,044,000.00
3,044,000.00

2,631,000.00
4,155,111.11
1,524,111.11

Prepared by:
ILW
Reviewed by:
LCC

Date:
1/25/2012
Date:
2/10/2012

GRACE CORPORATION
Analytical Procedures - Property, Plant, & Equipment
December 31, 2011

I. OBJECTIVES
1
2

To determine the validity and accuracy of property, plant and equipment account balances.
To evaluate fluctuations or unusual changes on the property, plant and equipments and their related depreciation account balances.

1
2

Accuracy
Valuation

Obtained audited financial information from comparable prior periods and audited balances of accounts related
to property, plant, & equipment as of December 31, 2011.
Compared differences between prior and current period ratios.

II. ASSERTIONS

III. PROCEDURES

IV. FINDINGS
.
Grace Corporation
Analytical Review Ratios
For the Period Ended December 31, 2011
2009
NET CARRYING BALANCES
Land

K-5

16,500,000.00

2010

K-5

16,500,000.00

K-5

Building
Furniture and Fixtures
Transportation Equipment
Office Equipment
TOTAL NET PROPERTY, PLANT & EQUIPMENT
Total Net Property, Plant & Equipment Variance
Annual Depreciation Expense Variance

l
l
l
l
w

31,900,000.00
3,301,333.33
5,600,000.00
1,849,333.33
59,150,666.66

l
l
l
l
w

30,250,000.00
2,928,333.33
5,000,000.00
1,428,333.33
56,106,666.66
-5%
50%

l
l
l
l
w

BUILDING
Carrying Amount, Beginning
Capitalized Improvement
Depreciation
Carrying Amount, Ending
FURNITURE AND FIXTURES
Carrying Amount, Beginning
Depreciation
Carrying Amount, Ending
TRANSPORTATION EQUIPMENT
Carrying Amount, Beginning
Depreciation
Carrying Amount, Ending
OFFICE EQUIPMENT
Carrying Amount, Beginning
Depreciation
Carrying Amount, Ending

RATIO ANALYSIS
Depreciation Expense as Percentage of PPE
Total Annual Depreciation Expense
Total Net Property, Plant & Equipment
RATIO
Property, Plant & Equipment Turnover
Sales
Total Net Property, Plant & Equipment
RATIO

K-5
K-5
w

K-5

33,000,000.00
(1,100,000.00)
31,900,000.00

3,550,000.00
(248,666.67)

K-5
w

K-5

31,900,000.00
(1,650,000.00)
30,250,000.00

3,301,333.33
(373,000.00)

K-5
K-5
w

K-5

3,301,333.33

2,928,333.33

K-5
K-5

6,000,000.00
(400,000.00)

5,600,000.00
(600,000.00)

K-5
K-5
w

K-5

K-5

5,600,000.00

5,000,000.00

2,130,000.00
(280,666.67)

1,849,333.33
(421,000.00)

1,849,333.33

K-5
w

1,428,333.33

K-5
w

w
w

2,029,333
59,150,667
3%

w
w

3,044,000
56,106,667
5%

w
w

p
w

48,766,000
59,150,666.66
0.82

p
w

54,539,000
56,106,667
0.97

F-5
w

It is observed that the total net PPE variance has significantly increased by 35% in 2011 due to the major improvement made with the building during 2011. Also,
significant variance in annual depreciation expense was due to the different time apportionment of the annual depreciation expense in 2009.

LEGEND:
l
Recomputed
w
Footed
p
Verified with prior year's trial balance

III. CONCLUSION

The objectives for this procedure were met. The Property, Plant & Equipment account balances and the annual depreciation expense were found to be reasonable
evaluation.

K-6

2011
16,500,000.00

47,488,888.89
2,555,333.33
4,400,000.00
1,007,333.33
71,951,555.55
28%
36.5017%

30,250,000.00
20,000,000.00
(2,761,111.11)
47,488,888.89

2,928,333.33
(373,000.00)
2,555,333.33

5,000,000.00
(600,000.00)
4,400,000.00

1,428,333.33
(421,000.00)
1,007,333.33

4,155,111
71,951,556
6%

110,927,707
71,951,556
1.54

uilding during 2011. Also, the


2009.

re found to be reasonable based on the

Prepared by:
DAM
Reviewed by:
RIT

Date:
2/21/2012
Date:
2/26/2012

GRACE CORPORATION
Accounts Payable General and Subsidiary Ledger Reconciliation
December 31, 2011

I. OBJECTIVES
1
2
3
4
5

To
To
To
To
To

substantiate the existence of recorded accounts payable and the occurrence of purchase transactions
establish the completeness of accounts payable and purchase transactions
determine the appropriate valuation of accounts payable
determine if the presentation and disclosure of accounts payable and purchases are appropriate
determine that the client has obligations to pay the recorded accounts payable

1
2
3
4
5

Existence
Completeness
Accuracy
Presentation and Disclosure
Rights and Obligation

II. ASSERTIONS

III. PROCEDURES
1
2
3
4
5
6
7

Obtained from the client the listing of accounts payable


Reconciled accounts payable beginning balance in subsidiary ledger with general ledger
Tested cross footing and footings of purchase invoices
Traced purchase invoices to subsidiary ledger and purchase book
Traced cash vouchers to the subsidiary ledger and cash disbursement book
Reconciled balance in subsidiary ledger to the accounts payable confirmation
Reconciled subsidiary ledger to the general ledger

IV. FINDINGS

WP
Ref
Beginning Balance
Total Credits
Purchases

General Ledger Unadjusted Balances


12/31/11

N-1.1
F-1.2

Adjusted Balances

6,743,240

N-1.1
N-1.3

6,010,625

6,010,625 N-1.1 F-4

Unrecorded Purchases
Total Debits
C-2.2
Cash Disbursements
N-1.4
Reclassification to Note Payable

(1,906,500) N-1.1

N-1.4

(1,600,000) N-1.1

(4,123,275)

Ending Balance

(7,629,775)
5,124,090

Total Difference
Unrecorded Purchases
Less:
Cash Purchases included in credit to GL
Cash Voucher
107
112
1090
135
120
147
1100

F-4
F-4

252,250
155,600

F-1.2
F-1.2
F-1.2
F-1.2
F-1.2
F-1.2

34,200
87,500
14,000
13,250
5,000
45,000

F-1.2

13,325

12/31/11

6,743,240

5,798,350
407,850 N-1.3 N-1.3

C-2.2
N-1.4

(1,906,500) N-1.1

N-1.4

-1.3
(1,600,000) N-1.1 N

###

(4,123,275)

(7,629,775)
5,319,665

407,850

212,275

Effect
LEGEND:

Footed/Cross-Footed

ADJUSTING JOURNAL ENTRIES

a.

Adjusting entries of two unrecorded purchases of P252,250 and P155,600 already made in F-4 Purchase Cut Off

Additionally, the following errors were noted:


1. The General Ledger November 30 balance does not equal the total Subsidiary Ledger November 30 balances. A difference of P1,181,770 exists.
*The auditors deemed it appropriate to follow the General Ledger balance.
2. Cash Voucher 306 of P1,554,500 was erroneously recorded as P155,450 in the subsidiary ledger.
3. Purchase Invoice 147 was recorded as a credit purchase in the subsidiary ledger when in fact it is a cash purchase.
4. Cash purchases were included as credit purchases in the Accounts Payable General Ledger.

III. CONCLUSION

Adjusting entries of the unrecorded purchases for December are already proposed in F-4 Inventory Purchase Cut Off.
The difference of P1,181,770 between the General Ledger and Subsidiary Ledger beginning balances can be an overstatement of the GL beginning balance or an
understatement of the SL beginning balance but such cannot be determined with certainty because only December supporting documents are available to the
auditors. The slide error of the recording of CV 306 was committed only in the subsidiary ledger. It was properly recorded as P1,554,500 in the Cash Disbursements
Book and the General Ledger. The recording of the cash purchase of P45,000 in the SL and all the other cash purchases of P212, 275 included as credit to the GL
should be removed in the Accounts Payable Ledgers.
No exceptions noted in the other payables: SSS, Medicare Premiums Payable, Withholding Taxes Payable and HDMF Premiums Payable.

The account of Gwendo Reyes has a credit balance of P50,000. The entry for Advances from Customers is already proposed in E-1 AR General and Subsidiary Ledg
Reconciliation.

Prepared by:
MGR
Reviewed by:

LCC

N-1

Difference
-

###

195,575
195,575

195,575

ts.

ing balance or an
vailable to the
ash Disbursements
credit to the GL

and Subsidiary Ledger

Date:
2/19/2012
Date:

2/23/2012

ACCOUNT

DATE

2011
Dec. 1
6
31

Accounts Payable
ITEM

ACCOUNT NO.

GJ 11
GJ 11
GJ 11

DEBIT

1,906,500.00
1,600,000.00
4,123,275.00

DATE

2011
Nov. 30
Dec. 31

ITEM

Balance

Footed/Cross-Footed

CREDIT

P
PJ 12

Balance

N-1.1
1001
CREDIT

6,743,240.00
6,010,625.00
5,124,090.00

ACCOUNTS PAYABLE SUBSIDIARY LEDGERS


Arboleda Co., Inc.
456 Quezon Boulevard Extension, Quezon City

NAME:
ADDRESS:

DATE

PARTICULARS

DEBIT

2011
Nov. 30 Balance
Dec. 1 PI 101
CV 304
CV 306
PI 117
CV 311
PI 127
CV 316

175,000.00
155,450.00
85,000.00
25,750.00

PI 130

Sapphire Corporation
85 Quarry Avenue, Paraaque City

NAME:
ADDRESS:

DATE

PARTICULARS

DEBIT

2011
Nov. 30 Balance
Dec. 3 PI 1082
5 CV 301
10 CV 305
18 PI 1095
23 PI 1099

972,750.00
114,900.00

28 CV 318

85,000.00

Genius Paper Products


951 Del Sol Avenue, Pasay City

NAME:
ADDRESS:

DATE

PARTICULARS

2011
Nov. 30 Balance
Dec. 1 converted to 90-day

DEBIT

1,906,500.00

2 PI 111
2 CV 300
6 PI 127
6 converted to 27% 150
10 PI 130
15 CV 309
20 PI 140
22 PI 145
26 PI 147
26 CV 313
26 CV 314
26 CV 315

300,000.00
1,600,000.00
625,000.00

32,500.00
127,875.00
25,000.00

28 PI 151

Footed/Cross-Footed

N-1.2

UBSIDIARY LEDGERS
ACCOUNT NO.:

1001

CREDIT

BALANCE

Quezon City

413,750.00

85,000.00
25,750.00
19,125.00

1,554,500.00
1,968,250.00
1,793,250.00
1,637,800.00
1,722,800.00
1,637,800.00
1,663,550.00
1,637,800.00
1,656,925.00

ACCOUNT NO.:

1002

CREDIT

BALANCE

459,600.00

85,000.00
12,250.00

2,100,470.00
2,560,070.00
1,587,320.00
1,472,420.00
1,557,420.00
1,569,670.00
1,484,670.00

ACCOUNT NO.:

1003

CREDIT

BALANCE

1,906,500.00
--

s-Footed

1,425,000.00
1,600,000.00
1,200,000.00
127,870.00
130,000.00
45,000.00

165,000.00

1,425,000.00
1,125,000.00
2,725,000.00
1,125,000.00
2,325,000.00
1,700,000.00
1,827,870.00
1,957,870.00
2,002,870.00
1,970,370.00
1,842,495.00
1,817,495.00
1,982,495.00

BEGINNING
PURCHASE BOOK

CASH
1
2
3
6
7
8
9
10
12
15
15
16
20
21
22
23
24
27
28
29

101
111
1082
127
107
1095
112
130
1090
135
147
117
140
120
145
1099
127
1100
151
130

AP
413,750.00
1,425,000.00
459600
1,600,000.00

34,200.00
85,000.00
87,500.00
1,250,000.00
14,000.00
13,250.00
45,000.00
85,000.00
127,875.00
5,000.00
130,000.00
12,250.00
25,750.00
13,325.00
165,000.00
19,125.00
212,275.00

PURCHASE INVOICES
29
30

7729
825

5,798,350.00
252,250.00
155,600.00

212,275.00

6,206,200.00

DISBURSEMENTS

Non-AP
2
5
7
9
10

12
14
15
20
21
26

27
28

300
301
302
303
304
305
306
307
308
309
310
311
312
313
314
315
316
317
318
319

AP
300000
972750

34200
87500
175000
114900
1554500
14000
1080000
625000
13250
85000
5000
32500
127875
25000
25750
13325
85000
942840

Footed/Cross-Footed

BEGINNING
CREDITS

Arboleda
1,554,500.00

Sapphire
2,100,470.00

413,750.00
459,600.00

85,000.00

85,000.00

12,250.00
25,750.00

19,125.00

543,625.00

556,850.00

155,600.00

TOTAL CREDITS

699,225.00

556,850.00

oss-Footed

DEBITS
972,750.00

175,000.00
114,900.00
1,554,500.00

85,000.00

25,750.00
85,000.00

to Note Payable
to Note Payable

1,840,250.00
-

1,172,650.00
-

TOTAL DEBITS

1,840,250.00

1,172,650.00

AP AUDITED

413,475.00

1,484,670.00

N-1.3
Genius Paper Products
1,906,500.00

5,561,470.00

1,425,000.00
1,600,000.00

1,250,000.00

127,875.00
130,000.00

165,000.00
4,697,875.00

5,798,350.00 N-1

6,206,200.00 N-1

252,250.00
4,950,125.00

300,000.00

625,000.00

32,500.00
127,875.00
25,000.00

1,110,375.00
1,906,500.00
1,600,000.00

4,123,275.00

4,616,875.00

7,629,775.00 N-1

2,239,750.00

4,137,895.00

PURCHASE BOOK
DATE

PURCHASED FROM

2011
Dec. 1 Arboleda Co., Inc.
2 Genius Paper Products
3 Sapphire Corporation
6 Genius Paper Products
7 Arboleda Co., Inc.
9 Arboleda Co., Inc.
10 Genius Paper Products
12 Sapphire Corporation
15 Genius Paper Products
16 Arboleda Co., Inc.
18 Sapphire Corporation
20 Genius Paper Products
21 Arboleda Co., Inc.
22 Genius Paper Products
23 Sapphire Corporation
24 Arboleda Co., Inc.
26 Genius Paper Products
27 Sapphire Corporation
28 Genius Paper Products
29 Arboleda Co., Inc.

ACCOUNTS
PAYABLE

TERMS

INV. NO.

2/10, n/30
P 300,000 down.
bal. 2/10, n/45
2/10, n/30
27% - 150 day note
n/30
n/30
2/10, n/45
n/30
n/30
2/10, n/45
n/30
2/10, n/45
n/30
1/10, n/30
n/15
1/10, n/20
P 2,500 down, bal. n/15
n/30
2/10, n/30
1/10, n/15

101

413,750.00

111
1082
127
107
112
130
1090
135
117
1095
140
120
145
1099
127
147
1100
151
130

1,425,000.00
459,600.00
1,600,000.00
34,200.00
87,500.00
1,250,000.00
14,000.00
13,250.00
85,000.00
85,000.00
127,875.00
5,000.00
130,000.00
12,250.00
25,750.00
45,000.00
13,325.00
165,000.00
19,125.00
6,010,625.00
(1001)

CR.

N-1
N-1
N-1
N-1

N-1

N-1
N-1

MERCHANDISE
INVENTORY

DR.

INPUT TAX DR.

376,136.00
1,295,455.00
417,818.00
1,454,545.00
31,091.00
79,545.00
1,136,364.00
12,727.00
12,045.00
77,273.00
77,273.00
116,250.00
4,545.00
118,182.00
11,136.00
23,409.00
40,909.00
12,114.00
150,000.00
17,386.00

37,614.00
129,545.00
41,782.00
145,455.00
3,109.00
7,955.00
113,636.00
1,273.00
1,205.00
7,727.00
7,727.00
11,625.00
455.00
11,818.00
1,114.00
2,341.00
4,091.00
1,211.00
15,000.00
1,739.00

5,464,203.00
(106)

546,422.00
(111)

F-1.2
Adjustments

0.09090909
0.09090909
0.09090909
0.09090909
0.09090909
0.09090909
0.09090909
0.09090909
0.09090909
0.09090909
0.09090909
0.09090909
0.09090909
0.09090909
0.09090909
0.09090909
0.09090909
0.09090909
0.09090909
0.09090909
0.09090909

37,614
129,545
41,782
145,455
3,109
7,955
113,636
1,273
1,205
7,727
7,727
11,625
455
11,818
1,114
2,341
4,091
1,211
15,000
1,739

0.09090909

546,420

GENIUS PAPER PRODUCTS


951 Del Sol Avenue, Pasay City | VAT 2011-005-219 | TIN 4004-0070356
CHARGED TO:

GRACE CORPORATION

ADDRESS:

12 Ninoy Aquino Avenue, Paranaque City

TERMS:

bal 2/10, n/45

DATE:

PARTICULARS

15,000 pads 16 column worksheet - Vernal

UNIT PRICE

13,500 pads 14 column worksheet - Vernal

50.00
50.00

VAT INCLUDED

Received the above products in good order and condition.


BY:
RES. CERTIFICATE NO.:

arboleda company, inc.


456 Quezon Boulevard Extension, Quezon City | VAT 2011-013-357 | TIN 4004-099-951
CHARGED TO:
ADDRESS:

GRACE CORPORATION
12 Ninoy Aquino Avenue, Paranaque City
DETAILS

5,000 boxes Pencil Plain - Mongol


7,500 pieces Bic Ballpen - Red
VAT INCLUDED

UNIT PRICE

70.00
8.50

Received the above products in good order and condition.


BY:

RES. CERTIFICATE NO.:

Sapphire Corporation
82 Quarry Avenue, Pananaque City | VAT 2011-053-852 | TIN 4004-064-456

GRACE CORPORATION
12 Ninoy Aquino Avenue, Paranaque City

CHARGED TO:
ADDRESS:

PARTICULARS

UNIT PRICE

5,000 boxes Charcoal Pencil - Staedler


800 pairs Scissors

90.00
12.00

VAT INCLUDED

Received the above products in good order and condition.


BY:

RES. CERTIFICATE NO.:

GENIUS PAPER PRODUCTS


951 Del Sol Avenue, Pasay City | VAT 2011-005-219 | TIN 4004-0070356
CHARGED TO:

GRACE CORPORATION

ADDRESS:

12 Ninoy Aquino Avenue, Paranaque City

TERMS:

99.150 day note

DATE:

PARTICULARS

17,000 pads 12 column worksheet - Vernal


15,000 pads 10 column worksheet - Vernal
VAT INCLUDED

UNIT PRICE

50.00
50.00

Received the above products in good order and condition.


BY:
RES. CERTIFICATE NO.:

GENIUS PAPER PRODUCTS


951 Del Sol Avenue, Pasay City | VAT 2011-005-219 | TIN 4004-0070356
CHARGED TO:

GRACE CORPORATION

ADDRESS:

12 Ninoy Aquino Avenue, Paranaque City

TERMS:

2/10, n/45

DATE:

PARTICULARS

7,500 pads Intermediate Pad - Old Mill


8,500 pads Yellow paper - Old Mill
4,250 reams Bond Paper - Whitey

UNIT PRICE

3,000 reams Onion Skin - Milky

15.00
30.00
130.00
110.00

VAT INCLUDED

Received the above products in good order and condition.


BY:
RES. CERTIFICATE NO.:

Sapphire Corporation
82 Quarry Avenue, Pananaque City | VAT 2011-053-852 | TIN 4004-064-456
CHARGED TO:
ADDRESS:

GRACE CORPORATION
12 Ninoy Aquino Avenue, Paranaque City
PARTICULARS

350 boxes Thumbtacks - Golden


VAT INCLUDED

UNIT PRICE

40.00

Received the above products in good order and condition.


BY:

RES. CERTIFICATE NO.:

arboleda company, inc.


456 Quezon Boulevard Extension, Quezon City | VAT 2011-013-357 | TIN 4004-099-951
CHARGED TO:
ADDRESS:

GRACE CORPORATION
12 Ninoy Aquino Avenue, Paranaque City
DETAILS

UNIT PRICE

600 bottles Quink Ink

57.00

VAT INCLUDED

Received the above products in good order and condition.


BY:

RES. CERTIFICATE NO.:

arboleda company, inc.


456 Quezon Boulevard Extension, Quezon City | VAT 2011-013-357 | TIN 4004-099-951
CHARGED TO:
ADDRESS:

GRACE CORPORATION
12 Ninoy Aquino Avenue, Paranaque City
DETAILS

5,000 meters Plastic Cover


VAT INCLUDED

UNIT PRICE

17.50

Received the above products in good order and condition.


BY:

RES. CERTIFICATE NO.:

F-1.3

No. 111

2 December 2011
UNIT PRICE

50.00

AMOUNT

50.00

750,000.00
675,000.00

1,425,000.00

ISSUED AT:

No.
DATE:

101

1 December 2011

ORDER NO.:
UNIT PRICE

70.00

AMOUNT

8.50

350,000.00
63,750.00

413,750.00

ISSUED AT:

No.
DATE:

1082

Dec. 3, 2011

ORDER NO.:
UNIT PRICE

AMOUNT

90.00
12.00

450,000.00
9,600.00

459,600.00

ISSUED AT:

No. 127

6 December 2011
UNIT PRICE

50.00

AMOUNT

50.00

850,000.00
750,000.00

1,600,000.00

ISSUED AT:

No. 130

10 December 2011
UNIT PRICE

15.00
30.00
130.00

AMOUNT

110.00

112,500.00
255,000.00
552,500.00
330,000.00

1,250,000.00

ISSUED AT:

1090

No.
DATE:

Dec. 12, 2011

ORDER NO.:
UNIT PRICE

40.00

AMOUNT

14,000.00

14,000.00

ISSUED AT:

No.
DATE:

107

7 December 2011

ORDER NO.:
UNIT PRICE

57.00

AMOUNT

34,200.00

34,200.00

ISSUED AT:

No.
DATE:

112

9 December 2011

ORDER NO.:
UNIT PRICE

17.50

AMOUNT

87,500.00

87,500.00

ISSUED AT:

CASH DISBURSEMENTS BOOK


DATE

PAID TO

EXPLANATION

CV#

CHECK NO.

Dec. 2 Genius Paper Products

BANK
CR.

PURCH. DISC.
CR.

2011
Downpayment, 2/10, n/45

300

12345

5 Sapphire Corp.

Partial payment

301

12346

972,750.00

7 Bureau of Internal Revenue

Remittance for November

302

12347

34,200.00

9 Social Security System

Remittance for November

303

12348

87,500.00

10 Arboleda Co., Inc.

Partial payment

304

12349

175,000.00

Sapphire Corp.

Partial payment

305

12350

114,900.00

Arboleda Co., Inc.

Full payment

306

12351

1,554,500.00

12 Caltex Gas

25 liters gasoline

307

12352

14,000.00

14 Paymaster

Salaries 12.01-12.15

308

12353

1,080,000.00

15 Genius Paper Products

Partial payment

309

12354

625,000.00

Light bill

310

12355

13,250.00

20 Arboleda Co., Inc.

Full payment

311

12356

83,300.00

21 Archer Supplies

plastic bags

312

12357

5,000.00

26 Genius Paper Products

Partial payment

313

12358

32,500.00

Genius Paper Products

Full payment

314

12359

125,315.00

Genius Paper Products

Downpayment

315

12360

25,000.00

Arboleda Co., Inc.

Full payment

316

12361

25,490.00

27 XYZ Ads

100 pcs. Brochures

317

12362

13,325.00

28 Sapphire Corp.

Full payment

318

12363

85,000.00

30 Paymaster

Salaries 12.15-12.31

319

12364

942,840.00

MERALCO

300,000.00

1,700.00

2,560.00
260.00

###
P

6,308,870.00

4,520.00

(101)

(3005)

C-2.2

MENTS BOOK
ACCOUNTS PAYABLE (DR.)
AMOUNT
P

ACCOUNT NAME

SUNDRY DR. (CR.)


F

AMOUNT

300,000.00
972,750.00
Withholding Taxes Payable

1005 P

34,200.00

SSS Premiums Payable

1004

87,500.00

Gasoline Expense

4007

14,000.00

Salaries Expense

4002

1,238,760.00

Withholding Taxes Payable

1005

(64,800.00)

SSS Premiums Payable

1004

(72,360.00)

HDMF Premiums Payable

1006

(21,600.00)

Light, Water and Telephone

4008

13,250.00

Supplies Expense

4003

5,000.00

Advertising Expense

4016

13,325.00

Salaries Expense

4002

1,101,600.00

SSS Premiums Payable

1004

(72,360.00)

Withholding Taxes Payable

1005

(64,800.00)

175,000.00
114,900.00
1,554,500.00

625,000.00
85,000.00
32,500.00
127,875.00
25,000.00
25,750.00
85,000.00

HDMF Premiums Payable


P

4,123,275.00
(1001)

N-1

1006

(21,600.00)
P

2,190,115.00

N-1.4
Page 1

GENERAL JOURNAL
Date

Particulars

2011
Dec. 1 Accounts Payable
1001
Notes Payable
1002
Issuance of 90-day 24% note to
Genius Paper Products.

6 Accounts Payable
1001
Notes Payable
1002
Issuance of 150-day 27% note to
Genius Paper Products.

Debit

Credit

1,906,500.00
1,906,500.00

1,600,000.00
1,600,000.00

GRACE CORPORATION
Accounts Payable Confirmation
December 31, 2011

I. OBJECTIVES
1

To verify the accuracy and existence of the accounts payable balanc

1
2

Accuracy
Existence

1
2
3

Obtain a list of the company's creditors and its balances (or check su
Request and collect from the creditors a statement of account indica
Compare the balances taken from the subsidiary ledger to those ind

II. ASSERTIONS

III. PROCEDURES

IV. FINDINGS

Creditor Name

Conf #

WP
REF

Genius Paper Products

AP - 1 N-1.2

Sapphire Corporation

AP - 2 N-1.2

Arboleda Co., Inc.

AP - 3 N-1.2

III. CONCLUSION

In conclusion, the balaces included in the accounts payable confirmations a


given the lack of signatures, the auditor decided that further substantive p

TION

of the accounts payable balances

ors and its balances (or check subsidiary ledger if not provided)
rs a statement of account indicating the company's liability balance
he subsidiary ledger to those indicated in the creditor's statement of account

Balance per SL

WP
REF

Balance per
Statement of
Account

Difference

Remarks

1,982,495.00

N-2.1

1,982,495.00

Balance is OK but with no


signature

1,484,670.00

N-2.1

1,484,670.00

1,656,925.00

N-2.1

1,656,925.00

Balance is OK but with no


signature

Balance is OK but with no


signature

accounts payable confirmations are equal to those indicated in their corresponding subsidiary ledgers. However,
cided that further substantive procedures must be performed to support the assertions presented.

Prepared by:
JGN
Reviewed by:
MGR

N-2

Date:
2/25/2012
Date:
2/29/2012

Our records show that the balance of


was due from
Name of Supplier / Creditor :
By (in print) :
Signature :

Our records show that the balance of


was due from
Name of Supplier / Creditor :
By (in print) :
Signature :

Our records show that the balance of


was due from

P
GRACE CORPORATION

as of

1,982,495.00
December 31, 2011
GENIUS PAPER PRODUCTS

Jordan Miguel

Position :
Date :

P
GRACE CORPORATION

as of

January 25

1,484,670.00
December 31, 2011
SAPPHIRE CORPORATION

Samantha Reyes

Position :
Date :

P
GRACE CORPORATION

as of

January 10

1,656,925.00
December 31, 2011

Name of Supplier / Creditor :


By (in print) :
Signature :

ARBOLEDA CO., INC.


Joshua Madrigal

Position :
Date :

January 20

N-2.1
N-2
Conf. No. AP - 1

as itemizes in the attached statement


ber 31, 2011

CTS
Chief Accountant
January 25, 2005

N-2
Conf. No. AP - 2

as itemizes in the attached statement


ber 31, 2011

ION
Chief Accountant
January 10, 2005

N-2
Conf. No. AP - 3

as itemizes in the attached statement


ber 31, 2011

C.
Chief Accountant
January 20, 2005

GRACE CORPORATION
Purchase Cut-Off
December 31, 2011

I. OBJECTIVES
1

To determine whether purchases and corresponding payables are re

Completeness

1
2

Examined all purchases from December 2011 to January 4, 2012.


Traced purchases invoices to the purchase book to determine wheth

II. ASSERTIONS

III. PROCEDURES

IV. FINDINGS

There are two Purchase Invoices (7729 and 825) that are not recorded as p
the Purchase Cut-off table.

III. CONCLUSION

The December purchases and its corresponding payables have been determ
Cut-off (please refer to F4) except for the Purchase Invoice Nos. 7729 and 8

N-3

ng payables are recorded in the appropriate period

anuary 4, 2012.
o determine whether the purchase transactions are recorded in the proper accounting period.

not recorded as purchases and payables in the proper accounting period. Please Refer to F-4 for

s have been determined to be recorded in the appropriate accounting period using the Purchase
ce Nos. 7729 and 825. Necessary adjusting entries have been made. No other exceptions noted.

Prepared by: Date:


RIT
3/13/2012
Reviewed by: Date:

BAG

3/20/2012

GRACE CORPORATION
Client Inquiry
December 31, 2011

I. OBJECTIVES
1
2

To determine if there are pledges for liabilities.


To determine if such pledges are properly presented and disclose

1
2

Rights and Obligations


Presentation and Disclosure

1
2

Obtained copy of contracts, agreement, loans and the like relatin


Reviewed such contracts and agreements.
Inquired client for further information regarding pledges for liabili

II. ASSERTIONS

III. PROCEDURES

IV. FINDINGS

Only the loan balance of 10,000,000 have a collateral.


* For full document and full audit discussion of such pledge, please refer to t

III. CONCLUSION

No exceptions noted. Sufficient and appropriate evidence were gathered to

N-4

ed and disclosed in the financial statements.

d the like relating to the payable accounts.

edges for liabilities.

please refer to the audit of Property, Plant and Equipment WP REF K-4.

ere gathered to support the assertions made.

Prepared by:
ILW
Reviewed by:
LCC

Date:
6/3/2012
Date:
6/9/2012

GRACE CORPORATION
Analytical Procedures - Accounts Payable
December 31, 2011

I. OBJECTIVES
1
2

To be able to evaluate the fluctuations or unusual changes on the


To assess whether amounts and other data relating to recorded t

1
2
3
4

Accuracy
Valuation
Presentation and Disclosure
Rights and Obligations

Compared the difference between the audited balance of payabl


(Balance of 2010 from 2009 and Balance of 2011 from 2010).
The differences on the account balances where expressed in perc

II. ASSERTIONS

III. PROCEDURES

IV. FINDINGS

Accounts Payable
Percent Increase (Decrease)

TB

Turnover
Days outstanding
Notes Payable
Percent Increase (Decrease)

TB

Notes Payable to Officer


Percent Increase (Decrease)

TB

SSS Medicare Premium Payable


Percent Increase (Decrease)

TB

Withholding Taxes Payable


Percent Increase (Decrease)

TB

HDMF Premiums Payable


Percent Increase (Decrease)

TB

Accrued Interest Payable


Percent Increase (Decrease)

For purposes on analyzing the payable accounts, the auditors mainly calcu
Accounts Payable account wherein the auditors calculated for the
1 Accounts Payable Turnover:
measures the number of ti
accounting period.
Formula:
Cost of Sales*/Average Ac
2 Days in Accounts Payable
Formula:

measures the average nu


365/Accounts Payable Tur

As seen in the table above, Accounts Payable turnover have decreas


of payments to suppliers have decreased compared to the last perio
As is evident in the Days in Accounts Payable ratio, the number of d
9 days to 20 days. Though 20 days is not a very poor figure, it still s
on a more effcient and timely manner.

Percentage changes in payables does not call any special attention,


increase, from below a million to more than 5 million. This explains t
days oustanding. Maybe Grace Corporation's decreased performanc
larger balances.

* Cost of Sales was used instead of total purchases because the au


to determine the entire year's PURCHASES ON ACCOUNT.

III. CONCLUSION

Except for the analysis discussed in the findings, no other exceptions were

TION

tions or unusual changes on the balances of the payable accounts.


other data relating to recorded transactions and events have been recorded appropriately.

n the audited balance of payables of the current year from the audited balance of the preceding years
Balance of 2011 from 2010).
lances where expressed in percentage by diving the variance from the prior balance of an account.

2009
900,000.00
-

TB

Payables
2010
906,500.00
0.72%

2011
5,319,665.00
487%

38.51
9.48

18.33
19.92

14,000,000.00
-

TB

21,000,000.00
50%

14,000,000.00
-

TB

21,000,000.00
50%

52,000.00
-

TB

62,000.00
19%

144,720.00
133%

40,500.00
-

TB

52,500.00
30%

129,600.00
147%

21,500.00
-

TB

29,500.00
37%

63,200.00
114%

66,565.00
-

###
###

13,506,500.00
-36%
1,700,000.00
-92%

unts, the auditors mainly calculated the percentage changes, except for the
n the auditors calculated for the AP Turnover and Days in AP oustanding.
measures the number of times a company pays its suppliers during a specific
accounting period.
Cost of Sales*/Average Accounts Payable
measures the average number of days a payable is outstanding.
365/Accounts Payable Turnover

yable turnover have decreased from 28 days to 18 days. This means that the frequency
ed compared to the last period. This is also considered a decrease in operational performance.
yable ratio, the number of days a payable is oustanding have lengthened from
ot a very poor figure, it still suggests a decrease in the companies ability to pay their payables

ot call any special attention, except that of the accounts payable which had a 487%
han 5 million. This explains the decrease in the turnover and the increase in the
tion's decreased performance in paying off payables was because of the now

total purchases because the auditors do not have enough documents


RCHASES ON ACCOUNT.

dings, no other exceptions were noted.

Prepared by:
ILW
Reviewed by:
LCC

N-5

ceding years

34785500
57050382

erformance.

heir payables

Date:
1/25/2012
Date:
2/10/2012

GRACE CORPORATION
Notes Payable
December 31, 2011

I. OBJECTIVES
1
2
3

To determine that notes payable exist as of the balance sheet date.


To determine whether all notes payable were recorded properly.
To determine whether amounts of notes payable were accurate.

1
2
3

Existence
Completeness
Valuation

1
2
3
4
5
6

Obtained a copy of accounts payable supporting documents such as


Examined the terms of the contract.
Vouchedfrom general ledger to supporting documents.
Compared amounts per contracts and agreements with the general l
Recalculated Interest.
Noted for differences.

II. ASSERTIONS

III. PROCEDURES

IV. FINDINGS

Payee
Alfredo P. Cacho- Officer
Felicisimo Rey- Genius Paper Products
Felicisimo Rey- Genius Paper Products
PCI Bank
BALANCE PER AUDIT
Balance per Ledger
Audit adjustment
Proposed Adjusting Journal Entry:

Date of Note
10.01.11
12.01.11
12.05.11
12.28.11

Term
360 days
90 days
150 days
360 days

(a) Cash
Discount on Notes Payable

Notes Payable
To record proceeds from bank loan.
*This entry were already reflected in Bank Reconcillation (C2)
(b) Notes Payable

Notes Payable to Officer


*This entry was made to reclassify the notes payable to officer separ
required for it to be presented separately. No discount was reclassifi
be noted than on the contract, the Payee should be the name of the
Grace Corp can't have a liability payable to itself.

III. CONCLUSION

In conclusion, notes payable recorded in the ledger do exist and properly valu
journal entry given by the auditor, no other exceptions noted.

O-1

e sheet date.
properly.
accurate.

ments such as promisory notes and bank confirmation.

h the general ledger.

Interest Rate
Non-Interest Bearing Note
24%
27%
21%

Recorded or
Not?
O-1.1
Yes
O-1.1
Yes
O-1.1
Yes
C-3.1
No

O-1.2

Amount
1,700,000
1,906,500
1,600,000
10,000,000 (a)
15,206,500
5,206,500
10,000,000

7,900,000
2,100,000
10,000,000

om bank loan.
on (C2)
1,700,000

1,700,000
o officer separately from the notes payable account as it is
was reclassified because the note was short-term. It should also
e name of the officer and not Grace corporation. Simply because,

d properly valued, however a note payable to PCI bank were not recorded. Aside from the proposed adjusting

Prepared by:
MZB
Reviewed by:
DAM

Date:
4/2/2012
Date:
4/13/2012

-1

PROMISSORY NOTE
(Note Payable- Officer)
P

1,700,000.00 O-1

For value received, I / we jointly and severally promise to pay,


Grace Corporation
or order, the sum of
thousand
1,700,000.00
pesos (P
none
12 Ninoy Aquino Ave
interest rate of
% payable at

If this note is placed in the hands of attorney for collection; the makes and endorsers
addition, pay 25% of the amount due as attorney's fees and costs of collection (aside from the
litigation allowed by the Rules of Court).

Signature

Alfredo P. Cacho
Name in Print

58 Rizal Avenue, Manila


Mailing Address
Res. Cert. No.: AB582485
Date: January 30, 2011
Place of Issue: Manila

SIGNED IN THE PRESENCE OF:

PROMISSORY NOTE
(Note Payable)
P

1,906,500.00 O-1

For value received, I / we jointly and severally promise to pay,


Genius Paper Products
One million nine h
or order, the sum of
thousand five hundred
1,906,500.00
pesos (P
24
565 Solana Aven
interest rate of
% payable at

If this note is placed in the hands of attorney for collection; the makes and endorsers
addition, pay 25% of the amount due as attorney's fees and costs of collection (aside from the
litigation allowed by the Rules of Court).

Signature

Felicisomo Rey
for Genius Paper Products
Name in Print
565 Solana Avenue
Pasay City
Mailing Address
Res. Cert. No.: AB513468
Date: January 30, 2011
Place of Issue: Pasay City

SIGNED IN THE PRESENCE OF:

PROMISSORY NOTE
(Note Payable)
P

1,600,000.00 O-1

For value received, I / we jointly and severally promise to pay,


Genius Paper Products
One million six hu
or order, the sum of
thousand
1,600,000.00
pesos (P
27
565 Solana Aven
interest rate of
% payable at

If this note is placed in the hands of attorney for collection; the makes and endorsers
addition, pay 25% of the amount due as attorney's fees and costs of collection (aside from the
litigation allowed by the Rules of Court).

Signature

Felicisomo Rey
for Genius Paper Products
Name in Print
565 Solana Avenue
Pasay City
Mailing Address
Res. Cert. No.: AB513468
Date: January 30, 2011
Place of Issue: Pasay City

SIGNED IN THE PRESENCE OF:

O-1.1

RY NOTE
le- Officer)
October 1, 2011

360
days after date
One million seven hundred
),
Philippine Currency at an annual
12 Ninoy Aquino Ave., Paranaque City
.

the makes and endorsers shall, in


collection (aside from the costs of

Signature

Sarah B. Tuason
for Grace Corporation
Name in Print
12 Ninoy Aquino Avenue
Paranaque City
Mailing Address
Res. Cert. No.: AB3486789
Date: January 19, 2011
Place of Issue: Paranaque City

SIGNED IN THE PRESENCE OF:

RY NOTE
ayable)
December 1, 2011

ninety
days after date
One million nine hundred six
),
Philippine Currency at an annual
565 Solana Avenue, Pasay City
.

the makes and endorsers shall, in


collection (aside from the costs of

Signature

Sarah B. Tuason
for Grace Corporation
Name in Print
12 Ninoy Aquino Avenue
Paranaque City
Mailing Address
Res. Cert. No.: AB3486789
Date: January 19, 2011
Place of Issue: Paranaque City

SIGNED IN THE PRESENCE OF:

RY NOTE
ayable)
December 5, 2011

150
days after date
One million six hundred
),
Philippine Currency at an annual
565 Solana Avenue, Pasay City
.

the makes and endorsers shall, in


collection (aside from the costs of

Signature

Sarah B. Tuason
for Grace Corporation
Name in Print
12 Ninoy Aquino Avenue
Paranaque City
Mailing Address
Res. Cert. No.: AB3486789
Date: January 19, 2011
Place of Issue: Paranaque City

SIGNED IN THE PRESENCE OF:

ACCOUNT

DATE

Notes Payable
ITEM

DEBIT

DATE

2011
Dec. 1
6

ACCOUNT
DATE

Notes Payable - Officer


ITEM

DEBIT

DATE

2011
Nov. 30

O-1.2
ACCOUNT NO.

ITEM

GJ 11
GJ 11

CREDIT

Balance

ACCOUNT NO.
ITEM

Balance

1002

1,906,500.00
1,600,000.00
3,506,500.00

1003
CREDIT

1,700,000.00

GRACE CORPORATION
Accrued Interest Payable
December 31, 2011

I. OBJECTIVES
1
2
3

To determine that accrued interest payable exist as of the bala


To determine whether all accrued interest payable were record
To determine whether amounts of accrued interest payable we

1
2
3

Existence
Completeness
Valuation

1
2
3
4
5

Obtained a copy of notes payable contracts.


Examined the terms of the contract.
Recalculated interest.
Determined the amount of accrued interest payable recorded
Noted for differences.

II. ASSERTIONS

III. PROCEDURES

IV. FINDINGS

Payee
Alfredo P. Cacho- Officer
Felicisimo Rey- Genius Paper Products
Felicisimo Rey- Genius Paper Products
PCI Bank
BALANCE PER AUDIT
Balance per Ledger
Audit adjustment

Proposed Adjusting Journal Entry:


Interest Expense
Accrued Interest Payable
To adjust acrrued interest on

(a) No accrual of interest were made for short non-interest be

(b) Amortization of the discounted note were not necessarily b

III. CONCLUSION

In conclusion, accrued interest payable recorded in the ledger do exist


exceptions noted. Sufficient and appropriate evidence were gathered to

ble exist as of the balance sheet date.


st payable were recorded properly.
ed interest payable were accurate.

est payable recorded for the period

Principal
1,700,000
1,906,500
1,600,000
10,000,000

Date of Note
10.01.11
12.01.11
12.05.11
12.28.11

Term
360 days
90 days
150 days
360 days

Interest Rate
Non-Interest Bearing Note
24%
27%
21%

1,815
1,815

st acrrued interest on notes payable.


short non-interest bearing note due to immateriality.

were not necessarily be made considering the materiality level and the days it was outstanding. No need to acrrue interest

n the ledger do exist , however there was an understatement in the account . Aside from the proposed adjusting journal en
nce were gathered to support the assertions made.

O-2

Days Outstanding
30
26
-

Interest Accrued
(a)
37,608
30,773
(b)

O-2.1

68,380
66,565
1,815

ing. No need to acrrue interest.

e proposed adjusting journal entry given by the auditor, no other

Prepared by:
MZB
Reviewed by:
DEF

Date:
3/5/2012
Date:
3/15/2012

ACCOUNT
DATE

Accrued Interest Payable


ITEM

DEBIT

O-2.1
ACCOUNT NO.
DATE

2011
Dec. 31

ITEM

GJ 12

1007
CREDIT

66,565.00 O-2