Beruflich Dokumente
Kultur Dokumente
OF THE
BUSINESS
1|Page
Historical Background
E.A Reyes Poultry & Agricultural Supply was established in
2006. The business has been operating for more than 10 years.
The business is a family business owned by the Reyes family. It
was the very first business the Reyes family has engaged into.
As
beginner
business
have
in
the
been
business,
the
rocky
road.
first
E.A
few
years
Reyes
of
the
Poultry
&
was
they
have
lower
prices
compared
to
their
Manager
Mike Reyes
Store Personnel
Store Personnel
Store Personnel
Vincent Abarientos
Michael Castor
Jerwin bermundo
3|Page
4|Page
Manager
Assistant
Manager
Cashier
Bookkeeper
Store
Personnel
5|Page
corrective
action
if
it
is
needed.
He
If
the
applicant
is
qualified
for
the
said
ASSISTANT MANAGER
TRAINING OF STORE PERSONNEL
After
the
manager
hires
the
employee,
the
and
responsibilities
that
he
has
to
him
list
of
The
assistant
manager
will
give
He
oversees
the
work
done
by
lower
level
The
front
liner
of
the
business,
the
one
who
of
the
and
business
situs
orderliness
of
in
term
of
inventory
displayed.
7|Page
CASHIER
The
cashier
together
with
the
customer
will
then
customer.
He
will
then
issue
two
copies
of
After
that,
he
will
hand
over
the
items
to
the
8|Page
STORE PERSONNEL
and
the
assistant
manager
about
the
prepare
the
shortage.
If
it
is
available,
then
he
will
Sales on Account
MANAGER
with
forwarded
to
indicated
there
customer
him,
and
whether
regarding
the
check
the
it
consistent
is
PO
information
with
If
there
were
inconsistencies
with
the
to
verify
and
correct
the
containing
the
right
information
after
the
Manager
will
sign
it
and
agreement
customer,
and
customer,
the
made
by
another
the
PO
cashier
was
will
manager
and
sent
the
then
by
prepared
cashier
will
receive
the
Approved
SO
and
He
will
then
ask
the
store
personnel
to
cashier
will
prepare
two
copies
of
Sales
that
personnel
to
the
cashier
load
the
will
items
ask
to
the
the
store
vehicle
10 | P a g e
STORE PERSONNEL
capability
of
paying,
get
the
personal
sale,
such
as
the
term
for
payment
and
If
the
manager,
based
on
his
CASHIER
know
what
the
customer
will
buy
and
and
the
other
one
will
be
ask
the
After
such
the
cashier
will
The
store
personnel
will
prepare
the
items
The
cashier
will
receive
the
Payment
regarding
the
sale
made
with
the
specific customer.
the
entity
should
also
be
stamped
as
paid.
The
copy
of
SI
by
the
entity
will
be
the
preparation
of
the
Daily
Cash
Collection Report.
The
cashier
will
then
goes
to
the
Once
it
is
found,
the
cashier
will
Ask
for
the
confirmation
from
the
BOOKKEEPER
on
hand
net
of
change
fund
with
the
Daily
Cash
Collection Report.
The
cash
will
be
given
to
the
Manager.
will
be
forwarded
to
the
bookkeeper.
with
the
DCCR,
they
will
conduct
tally,
number
of
they
will
inventories
check
the
that
were
the
Assistant
Manager
and
14 | P a g e
will
ask
the
cashier
to
If
after
that
it
still
did
not
tally:
o And the cash is greater
than the total in DCCR;
it
will
be
considered
miscellaneous income.
o And
the
cash
is
lower
will
to
the
be
deduction
salary
of
the
after
the
cashier.
MANAGER
If
it
already
tallied
BOOKKEEPER
o The
bookkeeper
customer,
will
Approved
receive
SO,
SI,
the
OR,
Received
and
DCCR
PO
from
from
the
cashier.
15 | P a g e
afterwards
to
the
Accounts
Receivable
Subsidiary Ledger.
posting
in
the
AR
Subsidiary
Ledger.
At
the
end
of
certain
period,
the
will
be
posted
which
will
be
Trial
Balance
used
to
the
general
in
the
preparation
affecting
the
Cash,
ledger
of
Account
The
manager
will
receive
the
PRF
prepared
by
the
Assistant Manager.
If
after
the
assessment
of
inventory
it
16 | P a g e
it.
Purchase
He
will
Orders
prepare
in
the
line
three
with
copies
what
was
of
the
The
manager
will
receive
the
Receiving
Report
When
the
debt
for
the
purchase
is
due,
the
ASSISTANT MANAGER
Form
indicating
the
items
he
have
The bookkeeper will receive the A-PO, Checked RR, ACDV, stamped SI from the Manager; he will then record
the SI in the Purchase Journal and afterward to the
Accounts
payable
Subsidiary
Ledger,
then
the
18 | P a g e
GENERAL DISBURSEMENT
MANAGER
The
Manager
Assistant
will
receive
Manager
the
together
CDV
with
prepared
the
by
related
the
bill
After
such,
he
will
send
the
A-CDV,
bills,
and
19 | P a g e
BOOKKEEPER
The
bookkeeper
will
receive
the
A-CDV,
bills
and
He
will
record
the
bill
first
on
the
general
CASHIER
20 | P a g e
If
not,
he
will
inform
the
requestor
about
the
unapproved PCRF.
CASHIER
in
the
A-PCRF
he
should
ask
for
the
REQUESTOR
He
will
purchased
fill
it
out
immediately
indicating
and
the
forward
items
such
to
be
to
the
PCRF
and
The
requestor
will
receive
the
approved
The
requestor
will
receive
the
PRV
and
the
cash
Then,
he
will
proceed
to
purchasing
the
item
to
that
the
related
OR
and
SI
from
the
The
Manager
will
receive
the
CDV
prepared
by
the
previous
CDV
in
this
cse
should
be
of
approval
and
issue
check
to
be
900
was
disbursed,
he
should
ask
for
its
to
the
replenishment.
He
will
prepare
CDV
and
forward
such
The
cashier
will
receive
the
Approved
CDV
and
the
BOOKKEEPER
PAYROLL
MANAGER
The
Manager
is
in-charged
with
the
DTR
of
the
employees.
whether
the
employees
are
faithfully
Every
15
Assistant
days
he
Manager
will
for
forward
the
such
to
the
preparation
of
the
by
the
Payroll register.
The
Manager
will
receive
the
prepared
PR
Assistant Manager.
manager
to
do
the
necessary
adjustments
23 | P a g e
The
manager
will
receive
the
CDV
prepared
by
the
Assistant Manager.
CDV
which
matches
the
amount
to
be
forwarded
to
the
Assistant
He
will
then
distribute
the
cash
to
the
distribution
of
salary
in
forward
all
the
Payroll
Distribution form.
After
such,
documents
he
such
will
as
PR,
A-CDV,
the
and
source
Payroll
24 | P a g e
ASSISTANT MANAGER
prepare
the
related
CDV
for
the
request
of
He
will
encash
it
and
forwards
the
cash
to
the
manager thereafter.
BOOKKEEPER
The
A-CDV
and
will
be
recorded
in
the
Cash
Disbursement Voucher.
CHECKING OF RECORDINGS MADE BY THE BOOKKEEPER
25 | P a g e
ACCOUNTING
SYSTEM OVERVIEW
26 | P a g e
A. Accounting System
Accounting System is a set of orderly procedures that is
being used by the business entity for effective assessment
of the business operations. It shows the proper guidelines
and
procedures
operations
of
of
recording
the
business.
transactions
It
is
in
composed
the
of
daily
General
OBJECTIVES:
a. To provide an effective policy for smooth flow of the
operations in the business.
b. To
help
the
business
maximize
its
profit
by
properly
orient
the
management
and
its
users
of
proper
Chart
is
visual
representation
of
Chart of Accounts
Chart of Accounts is the list of all the accounts that
is being use by the entity to record daily transactions.
The Chart of Accounts comprises of balance sheet accounts
(Assets,
Liabilities
and
Equity),
Income
Statement
business.
These
can
also
serve
as
historical
is
used
by
the
bookkeeper
to
prepare
financial
report.
28 | P a g e
currently
being
implemented
by
the
entity,
the
entity
Principles,
to
comply
fairly
with
the
Generally
presenting
the
Accepted
result
of
Accounting
its
operation,
earned
transaction
and
expense
involve
proper
matching
Basis,
the
of
balance
cash
when
it
is
incurred,
or
not,
an
entry
income
sheet
and
expenses.
accounts
are
is
Under
more
may
the
made
for
Accrual
precise
and
than
the
Accrual
Basis,
the
effects
of
the
29 | P a g e
transactions
on
measured
the
in
financial
period
statements
when
cash
is
are
recognized
actually
and
received.
Illustrative Problem:
1. Original cash investment
is P200,000
the
end
of
the
period,
Merchandise
inventory
as
of
30 | P a g e
P130,000
0
0
0
0
0
0
P130,000
Accrual Basis
P130,000
30,000
(6,600)
190,000
30,000
60,000
(6,000)
P427,400
0
0
0
0
50,000
30,000
8,000
88,000
200,000
(70,000)
P130,000
200,000
139,400
P427,400
P630,000
P550,000
(
0 )
P550,000
P 80,000
(120,000)
(
0
)
(
0
)
( 30,000)
P(70,000)
Accrual Basis
P660,000
P600,000
(190,000)
P410,000
P250,000
(98,000)
( 6,000)
( 6,600)
(
0 )
P139,400
31 | P a g e
Method
presents
clearer
picture
of
what
is
33 | P a g e
Illustrative Problem:
E.A. Reyes Poultry and Agricultural Supply purchased a
vehicle costing P50,000. The company expects the vehicle to
be operational for 5 years at the end of which it can be
sold for P5,000.
5 years
=
Year
1
2
3
4
5
Particular
Acquisition
Cost
Depn (1st
year)
Depn (2nd
year)
Depn (3rd
year)
Depn (4th
year)
Depn (5th
year)
P 9,000
Depreciation Accumulated
Carrying
Depreciation Amount
(a)
(b)
(c)
P 50,000
P9,000
P9,000
41,000
P9,000
18,000
32,000
P9,000
27,000
23,000
P9,000
36,000
14,000
P9,000
45,000
5,000
SUM-OF-THE-YEARS-DIGIT METHOD
Year
1
2
Particular
Acquisition
Cost
45,000 x
5/15 **
45,000 x
4/15
Depreciation Accumulated
Carrying
Depreciation Amount
(a)
(b)
(c)
P 50,000
P15,000
P15,000
35,000
12,000
27,000
23,000
34 | P a g e
45,000 x
9,000
3/15
4
45,000 x
6,000
2/15
5
45,000 x
3,000
1/15
** SYD = 5 [(5+1) 2] = 15
36,000
14,000
42,000
8,000
45,000
5,000
Particular
Depreciation Accumulated
Carrying
Depreciation Amount
(a)
(b)
(c)
P 50,000
Acquisition
Cost
1
50,000 x
P20,000
P20,000
40% **
2
30,000 x
12,000
32,000
40%
3
18,000 x
7,200
39,200
40%
4
10,000 x
4,320
43,520
40%
5
6,480-5000
1,480
45,000
** (100% 5years) = 20%; (20% x 2) = 40%
30,000
18,000
10,800
6,480
5,000
ASSET
Tricycle
Weighing Scale
Motorcycle (with
sidecar)
Cabinets
Tables
Chairs
Delivery Cart
EUL
10 years
5 years
10 years
10
10
8
10
years
years
years
years
35 | P a g e
the
registers,
it
is
not
to
be
used
for
36 | P a g e
37 | P a g e
ILLUSTRATION:
P1500.
P1500
Cash in Bank
Petty Cash
P1500
P1500
Cash in Bank
P1500
Gasoline
P 500
Supplies
300
Food
100
Total
P 900
Gasoline
Supplies
Food
P500
300
100
Petty Cash Fund
P900
Gasoline
P500
Supplies
300
Food
100
Cash in Bank
P1000
P1000
P900
IMPREST
FLUCTUATING
P1,500
P1,500
Less: Disbursements
39 | P a g e
Gasoline
500
500
Supplies
300
300
Food
100
100
600
900**
600
1,000
P1,500
P1,600
equal
to
the
petty
cash
disbursement.
The
checks are simply drawn upon the request of the petty cash
custodian irrespective of the Petty Cash expense. In the
Fluctuating fund system, misappropriation of cash is always
possible and the possibility of theft is higher since the
amount of the replenishment check fluctuates. Some amount
of the replenishment check might be used for the personal
expenses of the petty cash custodian; hence it will be more
difficult to trace the outflow of the fund.
40 | P a g e
always
maintained
at
fixed
amount
as
compared
to
6. Cash
Collections
Supply
should
of
be
E.A
Reyes
deposited
to
Poultry
the
and
UCPB
Agricultural
Bank
the
next
System
will
assist
the
management
in
properly
9. The
FIRST-IN-FIRST-OUT
Valuation
should
be
(FIFO)
used.
FIFO
Method
method
for
assumes
Inventory
that
the
Illustrative Problem:
The inventory records of E.A Reyes Poultry and Agricultural
Supply showed the following data:
July 1 Beginning Inventory
5 Purchase
20 units @ P120
78 units @ P120
11 Sale
68 units @ P150
15 Purchase
40 units @ P120
17 Purchase
35 units @ P110
22 Sale
35 units @ P140
28 Sale
30 units @ P150
173 units
Units Sold
133 units
40 units
P3850
600
P4450
42 | P a g e
P2400
78 units @ P120
9360
40 units @ P120
4800
35 units @ P110
3850
P20410
4450
P15960
Gross Profit
Sales
P19600
15960
Gross Profit
P 3640
10.
inventory
balance
will
only
be
updated
when
not
maintain
continuous
record
of
the
physical
43 | P a g e
on
daily
basis.
Generally
used
when
the
groceries,
hardware
and
auto
parts.
It
Uses
an
purchases
account.
The
physical
inventory
count
is
inflow
or
Perpetual
Inventory
system
records
the
44 | P a g e
45 | P a g e
ACCOUNTS DESCRIPTION
Account
No.
110
Cash on Hand
120
Cash in Bank
130
Petty Cash
Fund
140
Accounts
Receivable
Store
Supplies
150
ASSET
160
Merchandise
Inventory
170
Land
180
Furniture and
Fixtures
185
Accumulated
DepreciationFurniture and
Fixtures
190
Equipment
195
Accumulated
DepreciationEquipment
DESCRIPTION
200
Building
205
Accumulated
DepreciationBuilding
210
Vehicles
215
Accumulated
DepreciationVehicles
Account
No.
310
LIABILITIES
Accounts
Payable
320
Salaries
Payable
330
Utilities
Payable
340
Rent Payable
350
SSS
Contribution
Payable
Philhealth
Contribution
Payable
Income Tax
Payable
360
370
Account
No.
410
OWNERS
EQUITY
Reyes,
Capital
420
430
Account
No.
510
Reyes,
Withdrawals
Income
Summary
INCOME
Sales
520
Sales Returns
and
Allowances
530
Sales
Discounts
540
Miscellaneous
Income
Account
No.
610
COSTS AND
EXPENSES
Purchases
620
Purchase
Discounts
630
Purchases
Returns and
Allowances
Salaries
Expense
640
the proprietor.
This is used for the withdrawals made
by the proprietor for personal use.
This is temporary account used at the
end of accounting period to close the
income and expenses.
DESCRIPTION
This account refers to the revenues
earned as a result of sale of goods.
Revenue or Income is the amount of
money the entity gets in exchange for
the goods of sold.
This serves as the contra account that
shows the goods returned by the
customers for defects or noncompliance with the customers order
specifications
This serves as the contra account that
shows the amount deducted from the
original price of the goods.
These are items that cannot be
appropriately classifies under any of
the foregoing income accounts. Example
of this is Cash Overage.
DESCRIPTION
These are direct costs attributable to
the production of the goods sold by a
business.
Costs assigned to units either
completed or still in the process of
being completed at the end of the
accounting period.
This account refers to the cost
incurred to purchase raw materials
which is rice.
This serves as a contra account that
shows the goods purchased that was
returned to the supplier due to the
defects or non-compliance with the
48 | P a g e
650
660
670
680
690
Store
Supplies
Expense
Utilities
Expense
Rent Expense
SSS
Contribution
Expense
Phil health
Contribution
Expense
700
Depreciation
ExpenseEquipment
710
Depreciation
ExpenseVehicles
720
Depreciation
ExpenseBuilding
730
Income Tax
Expense
orders specifications.
Transportation cost associated with the
delivery of goods to the customers.
Shows the expenses incurred related to
use of electricity and water.
Refers to the expenses incurred through
consumption of office supplies in the
conduct of daily business operations.
Shows the expenses incurred related to
use of electricity and water.
Refers to the expired portion of the
cost of Machines which is charged as
expense during the period. This is also
a reduction in the value of the
Machines.
Refers to the expired portion of the
cost of Equipment which is charged as
expense during the period. This is also
a reduction in the value of the
Equipment.
Refers to the expired portion of the
cost of Delivery Equipment (trucks)
which is charged as expense during the
period. This is also a reduction in the
value of the Delivery Vehicles
(motorcycle, tricycles).
Refers to the expired portion of the
cost of Building (trucks) which is
charged as expense during the period.
This is also a reduction in the value
of the Building.
Refers to the Income tax already paid.
49 | P a g e
Pxxx
xxx
xxx
Pxxx
Pxxx
xxx
xxx
xxx
xxx
xxx
xxx
Pxxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
Pxxx
50 | P a g e
Pxxx
Pxxx
xxx
xxx
Pxxx
xxx
Pxxx
51 | P a g e
Assets
Current Assets
Cash on Hand
Cash in Bank
Petty Cash Fund
Accounts Receivable
Store Supplies
Merchandise Inventory
Total Current Assets
Non- Current Assets
Land
Furniture and Fixtures
Less: Accumulated Depreciation-FF
Equipment
Less: Accumulated Depreciation- Equipment
Delivery Vehicles
Less: Accumulated Depreciation- Delivery Vehicles
Building
Less: Accumulated Depreciation- Building
Total Assets
Pxxx
xxx
xxx
xxx
xxx
xxx
Pxxx
xxx
Pxxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
Pxxx
Liabilities
Current Liabilities
Accounts Payable
Salaries Payable
Utilities Payable
Rent Payable
SSS Contribution Payable
Philhealth contribution Payable
Income tax Payable
Total Current Liabilities
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
Owners Equity
Reyes, Capital 12/31/20XX
Total Liabilities and Owners Equity
xxx
Pxxx
52 | P a g e