December 8, 2017
December 5, 2017
We are on the way to making the final draft of the numbered Chart of Accounts Majorem Lending. Check for vertical and horizontal logic and internal consistency.
1. Start revising your CRB and CDB (with respective trial balance to conform to this)
2. Start using numbered accounts as you do your CV and other reports
Account Number
Description
Account Type
1000
Cash
Asset
1010
Checking Account
Asset
1011
Savings Account
Asset
1012
Time Deposits
Asset
1060
Petty Cash Fund
Asset
1100
ICR - Other Debt Instruments
Asset
1210
Loan Installment Contract Receivable - Retail
Asset
1230
Business Loans (Non-HGMP)
Asset
1250
Corporate Loan
Asset
1251
Allowance for Doubtful Account
Asset
1310
Real Estate Held for Sale
Asset
(Owned and Acquired)
1420
Office Supplies
Asset
1530
Prepaid Insurance
Asset
Property, Plant, and Equipment (account numbers 1700 - 1899)
1700
Land
1710
Buildings
1720
Leasehold Improvement
1730
Office Equipment
1732
Office Furniture
1780
Vehicles
1810
Accumulated Depreciation - Buildings
1811
Accumulated Depreciation - Leasehold
1830
Accumulated Depreciation - Equipment
1880
Accumulated Depreciation - Vehicles
Current Liabilities (account numbers 2003 - 2499)
2013
Notes Payable - PN
Liability
2023
Notes Payable - Various
Liability
2050
IF
Liability
2051
Insurance Fund Held - CAPF
Liability
2052
TVA
Liability
2053
ME
Liability
2054
PMS/PIS Funds Payable
Liability
20541
Insurance Fund Held
Liability
20542
Trust Fund Contribution
Liability
20543
Liquidity
Liability
20544
Principal
Liability
20545
VAT
Liability
20546
General Admin
Liability
20547
ME
Liability
20548
Commission
Liability
2100
Accounts Payable - Trade
Liability
2210
Salaries Payable
Liability
2111
Contributions and Remittances
Liability
21111
SSS Payable
Liability
21112
HDMF Payable
Liability
21113
Philhealth Payable
Liability
21114
Withholding Taxes Payable - Employees
Liability
21115
Withholding Taxes Payable - Others
Liability
2250
Taxes Payable
Liability
22501
VAT Payable
Liability
22502
Income Tax Payable
Liability
22503
Penalties
Liability
22504
Mayors Permit - Business Tax Payable
Liability
22505
RET - Tax Payable
Liability
22506
Doc Sci Payable
Liability
2310
Accrued Interest Payable
Liability
2450
Unearned Revenues - Deferred Income
Liability
Long-term Liabilities (account numbers 2500 - 2699)
2510
Mortgage Loan Payable
Liability
2560
Bonds Payable
Liability
2565
Discount on Bonds Payable
Liability
Stockholders' Equity (account numbers 2700 - 2999)
2710
Common Stock, No Par
Equity
2750
Retained Earnings
Equity
2950
Treasury Stock
Equity
Operating Revenues account numbers 3000 - 3999)
3150
Processing Fee
Income
3300
Interest
Income
3350
Penalties
Income
3400
Other Income
Income
3401
Income from Insurance Fund Held
Income
3402
Income from Trust Funds Held
Income
Cost of Goods Sold (account numbers 4000 - 4999)
4150
Interest Expense
Marketing Expenses (account numbers 5000 - 5199)
5010
Marketing Staff . Salaries
Expenses
5015
Marketing Staff. Payroll Taxes
Expenses
(SSS, HDMF, Philhealth Employees Contribution)
5020
Marketing Staff - Supplies
Expenses
5060
Marketing Staff - Telephone
Expenses
5070
Commission
Expenses
5080
Transportation Allowance Expense
Expenses
5090
Promo Items
Expenses
5110
Prizes / Awards
Expenses
5120
Discounts
Expenses
5130
Gifts / Representation
Expenses
5140
Other Customer Service Expenses
Expenses
5150
Ads and Events
Expenses
Gen Admin (account numbers 5900 - 5999)
5910
Staff Salaries
Expenses
5911
Allowances
Expenses
5915
Staff Payroll Taxes - SSS, PHIC, HDMF er
Expenses
5920
Wages - Contractual
Expenses
5930
Supplies
Expenses
5940
Rental
Expenses
5950
Communications & Postage
Expenses
5960
Repairs and Maintenance
Expenses
5970
Security
Expenses
5980
Local Taxes and Permits
Expenses
5990
Depreciation Expense
Expenses
5999
Management Fee
Expenses
Others (account numbers 9000 - 9999)
9180
Gain on Sale of Assets
Non recurring Income
9610
Loss on Sale of Assets
Non recurring Income
Significant accounting policies and definition
1. Loans retail loans granted to small borrowers, mostly Holy Gardens customers, not more than P100,000 and 50% of market value of the plots (current selling price of the plots)
2. Business loans that are granted to non Holy Gardens customer fully secured by Real Estate mortgage
3. Corporate loans are loans granted to members of Holy Gardens group, that match and do not exceed funds that are in custody of Majorem Lending
4. Interest rate for loans and PN are set monthly in accordance with following parameterss
1. T bill rates 90 days + 3% for PN
T bill rates 90 days + 3% + 5% = Prime rate for those with PN and funds held by MLII
2. Amount
3. Maturity
4. Competition rates
A matrix is set for this
5. No accrual is made for Loans Receivable
6. However, we book/credit interest income on PN and other special accounts held
Interest is 50% of the midrange highest rate say 4% x 50% = 2%
The following are interest bearing account
Memorial Care
Interment Fee
Trust Fund contribution
7. Interest is computed quarterly by AA based on lowest monthly balance.
8. Sources of revenue:
1. Processing fee which is 2% of total
2. Interest on the loans which is straight financing (add on)
3. 5% of the total TFC held based on the principal only
4. 1.7% of insurance fund held, or those collected from non insureable
The rest of income of PIS, PMS:
balance of collection fee interest on the balance goes to GA of the funds
9. The trust fund held may be allowed to invest in:
1. 5 year T bonds at 4.2% coupon rate
2. Investment in 5 years to pay plots at 0 interest
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