Chart of Accounts - BPI

CHART OF ACCOUNTS

BEREAVEMENT PROVIDERS, INC.

Unit 3-C, Fuentes Building, Angono, Rizal

PRO-FORMA BALANCE SHEET:

BEREAVEMENT PROVIDERS, INC.

BALANCE SHEET

___________________

ASSETS

Current Assets

Cash

Account Receivables

Inventories

Prepaid Expenses

Non-Current Assets

Furniture Fixture and Equipment

Less:  Accumulated Depreciation

TOTAL ASSETS:

LIABILITIES

Taxes Payable

Accrued Interest Payable

Trade Notes Payable

Accrued Expenses

SHAREHOLDERS' EQUITY

Authorized Capital Stock

Subscribed Capital Stock

Less: Subscription Receivable

Paid-up Capital

Retained Earnings, Beginning Balance

Add: Net Income during the period

TOTAL LIABILITIES & SHAREHOLDERS' EQUITY

PRO-FORMA INCOME STATEMENT

BEREAVEMENT PROVIDERS, INC.

STATEMENT OF INCOME

FOR ______ MONTHS ENDED ______________

GROSS INCOME Management Fee Processing Fee Less: Cost of Goods Sold            Processing Fee       =  Attorney Fee                                           ____Pouching____                                                   Gross profit

LESS:  OPERATING EXPENSES

Interest Expenses

Salaries and Wages

Employees' Benefits

Incentives & Bonuses

Taxes and Licenses

Rent Expenses

Light, Water, and Power

Telephone/Internet

Insurance Expenses

Representation

Office Supplies

Printing Expenses

Postage and Stamps

Transportation

Oil and Gasoline Audit Fee

Repairs and Maintenance

Depreciation Expenses

Miscellaneous Expenses

TOTAL OPERATING EXPENSES OTHER INCOME           Trading Revenues  Less: COGS____

Less: other Expense

NET INCOME BEFORE TAX:

LESS:  INCOME TAX

NET INCOME AFTER TAX:

PRO-FORMA STATEMENT OF CASH FLOW

BEREAVEMENT PROVIDERS, INC.

STATEMENT OF CASH FLOW

FOR _____ MONTHS ENDED _________________

Beginning Balance, January 1, 2013

CASH FLOW FROM OPERATIONS

Cash Inflow:

Processing Fee Collections

Management Fee Collections

Funds Total Inflow

OUTFLOW:

Operating Expenses:

Salaries & Wages

Incentives & Bonuses

Employee Benefits

Travelling Expenses

Representation Expenses

Office Supplies Expenses

Postage & Stamps

Funds Total Outflow

Purchase of Trading / Promo Items

NET CASH FLOW FROM OPERATION

CASH FLOW FROM INVESTING ACTIVITIES

Cash Inflow:

Income from Bank Deposits

Interest Income

Total Inflow from Investments

Cash Outflow:

Capital Expenditures

Investment

Sinking Funds

Total Outflow from Investments

NET CASH FLOW FROM INVESTMENTS

CASH FLOW FROM FINANCING ACTIVITIES

Inflow

Additional Capital

Loans

Total Inflow from Borrowing

Outflow

Accrued Expenses

Payment of Loans

Total Outflow from Borrowing

NET CASH FLOW FROM BORROWING:

ENDING BALANCE:

PROCESSING FEE – The amount that is charged to Single Business Unit (SBU) for documentation, notarial expenses, payment of taxes, and processing of sold memorial lots.

MANAGEMENT FEE – The amount is charged every month to Single Business Units (SBU) for managing the operations of the entity to cover the salaries, rent of 3FFB Staff.

DOCUMENTARY STAMP TAX – Documentary Stamp Tax is a tax in processing the documents of memorial lots

NET INCOME BEFORE INCOME TAX – This combines all corporate profits before payment of tax including operating, non-operating, continuing operations and non-continuing operations.  The amount is obtained after deducting the operating expenses from the gross income for a certain period of business operations.

INCOME TAX – Income tax is a tax on a person's income, emoluments, profits arising from property, practice of profession, conduct of trade or business.

OPERATING EXPENSES – Necessary expenditures to be incurred in normal business operations such as salaries and wages, employees' benefits, incentives, bonuses, taxes and licenses, rent, utilities, insurance, representation, office supplies and stationeries, computer consumables, postages and stamps, marketing, advertising, promotion, travelling, gasoline, transportation, doubtful accounts, depreciation, and miscellaneous expenses.

SALARIES AND WAGES – Remunerations and compensations for rendition of services by employees. An employee is expected to work 8 hours per day from Monday to Saturday. A total of 240 hours is the basis of monthly-salaried employees, computed as 8 hours per day multiplied by 30 calendar days. For daily-paid workers, the computation is daily rate divided by 8 hours to arrive at hourly rate, the basis of overtime calculation.

EMPLOYEES' BENEFITS – These represent both the employer and employee contribution to Social Security System, Home Development Mutual Fund (where applicable), and Philhealth which are lodged in this account immediately on payroll date when said contributions are deducted from the employees' compensation.  These are paid or remitted to to SSS, HDMF, and Philhealth on or before 10^th day of the month with accomplished M1-1 for HDMF, SBR for SSS, and reconciliation form for Philhealth.

INCENTIVES & BONUSES – These are rewards for efficient and excellent performance by deserving employees or staff when accomplishments will exceed a target goal. These are gifts to employees or staff granted and released by the company as a result of profitable business operations.

TAXES AND LICENSES – Taxes are compulsory contributions to national government or local government units (LGUs) as levied by the government on business profits, or added to the cost of some goods, services, and transactions.  Licenses are permission granted by a competent authority to exercise a certain privilege that, without such authorization, would constitute an illegal act. The certificate or the document itself that confers permission to engage in otherwise prescribed conduct.

RENT – Expenses incurred for a building, space, and equipment used by the company in its business.

LIGHT, WATER, AND ELECTRICITY – Expenses incurred for the use of electricity and water in business operations.

TELEPHONE/INTERNET – Expenses incurred for the use of telecommunication, either land phone or mobile phone and internet provided by Internet Service Provider (ISP).  It is common that internet is bundled with telephone services.

INSURANCE – Premiums for a contract whereby for a specified consideration, one party undertakes to compensate the other for a loss relating to a particular subject as a result of the occurrence of designated hazards.  The term insurance describes any measure taken for protection against risks.

REPRESENTATION EXPENSES – Include expenses for public relations activities which are directly related to the promotion of business development and enhancement of the prestige and reputation of the company. These expenses must be reasonable, not contrary to laws, morals, and public policy or public order. The expenses must be substantiated with sufficient evidences such as official receipts or adequate records.

OFFICE SUPPLIES – are all supplies regularly used in the office for business use.  These include small and expendable items such  as ball pens, pencils, paper clips, staples and staplers, hole punchers, binders, laminators, copy or bond paper.  Stationeries are considered official forms used by the company in its business operations. Computer consumables such as ribbons, ink cartridges, toners, USB flash disks, and memory cards are included.

PRINTING EXPENSES – Costs of photocopying documents and printing of forms done by printing press or shop.

POSTAGES AND STAMPS – These are expenses incurred for correspondences and mailing of letters, cards, and statement of accounts to customers thru postal office.

TRAVEL EXPENSES – Expenses incurred by an employee in the performance of his field assignments authorized and appointed to work in a temporary workplace.

TRANSPORTATION – Expenses incurred by an employee such as fares on riding a bus, jeepney, MRT/LRT, boat, or airplane authorized by the management of the company to conduct official business such as accounting/audit works, field trips, ocular inspection or site visits or visit to government agencies and offices.

DEPRECIATION EXPENSE – The portion of a tangible asset that is deemed to have been consumed or expired due to normal wear and tear, thus, it has become an expense.

REPAIRS AND MAINTENANCE – Costs of repairs of equipment, tools, and vehicles which are used for company business.

MISCELLANEOUS EXPENSES – A general ledger account which cannot be itemized and the amounts are very small amounts.

TOTAL OPERATING EXPENSES – The summary of all expenses necessary in the operations of the business within a certain period.

OTHER INCOME – Earnings from activities other than normal business operations such as interest income from bank deposits and investments, foreign exchange gains, rent income, sale of acquired assets.

1.     Penalties – The amount charged to clients for violation of terms and conditions of agreement or delinquency in amortizations or payments.

2.     Interest Income from Banks – The amount earned for maintaining savings accounts with a bank through the course of business operations.

3.     Interest Income from Placements – The amount earned for private placements by individual investors. The company will put a mark-up interest over rate of return on investments placed by individual investors.

OTHER EXPENSE

TRAIDING INCOME – One of the incomes of BPI. Promo items, giveaways for customers/clients,

BALANCE SHEET

A.    CASH AND CASH EQUIVALENTS:

1.     CASH ON HAND – This includes undeposited cash collections and other cash items awaiting deposit such as customers' checks, cashier's or manager's checks, traveler's checks, bank drafts, and money orders. ( Supported by a cash count )

2.     CASH IN BANK – This includes demand deposit or checking account and saving deposit which are unrestricted as to withdrawal.

a.     Savings Deposits – Accounts are typically considered readily available funds and account holders can make withdrawals without giving an advance notice.

b.     Time Deposits – These deposits are held for a fixed period of time evidenced by certificate of time deposit (CTD). Although funds can be withdrawn upon presentation of certificates, there are penalties for premature withdrawal. Some savings accounts have features of time deposits but 30-day notice before withdrawal of funds must be undertaken by the depositor.

c.      Bank Balance – amount in a bank deposit account, such as a checking or savings account, as of a certain specified time or date, indicated on a bank statement. Bank charges, deposits in transit, and outstanding checks usually are primary factors in reconciling an individual's or organization's books and the bank's statement, as of a particular date.  

d.     Book Balance                                                                                – is the term banks use to describe the amount of money available before any adjustments have been made for deposits in transit, checks that have not yet been cleared, reserve requirements and interest received from "float funds".

Amounts of money available that excludes float , checked

issued that are not yet paid or checked issued  but not issued. Checked paid that have been cleared, excludes penalties by bank or other interest income.

B.    INVENTORIES – are assets which are held for sale in the ordinary course of business, in the process of production for such sale or in the form of materials or supplies to be consumed in the production process or in the rendering of services.  Inventories encompass goods purchased and held for resale, for example, merchandise purchased by a retailer and held for resale, or land and other property held for resale by a subdivision entity and real estate developer. In case of service provider, inventories include the cost of the service for which the entity has not yet recognized the related revenue.

D.1  REPOA (Real Estate Possessed, Owned, and Acquired) – This account includes real and other properties acquired by the corporation judicially or extra-judicially in the settlement of loans or for other reasons. The properties acquired for any reasons shall be recorded at cost value whichever is applicable at the time of acquisitions.

C.    PREPAID EXPENSES – Expenses that are paid in advance within a 12-month period.

NON-CURRENT ASSETS – An entity shall classify all other assets not classified as current as noncurrent. All others are classified as noncurrent assets which include the following:

A.    PROPERTY, PLANT AND EQUIPMENT – These are tangible assets which are held by an entity for use in production or supply of goods and services, for rental to others, or for administrative purposes, and are expected to be used during more than one period.

B.    LONG-TERM INVESTMENTS – Assets held by an entity for the accretion of wealth through capital contribution, such as interest, royalties, dividends and rentals, for capital appreciation or for other benefits to the investing entity such as those obtained through trading relationships.

C.    INTANGIBLE ASSETS – An identifiable nonmonetary asset without physical substance. The common examples of identifiable intangible assets include patent, franchise, copyright, lease rights, trademark and computer software.  An example of an unidentifiable intangible asset is goodwill.

D.    OTHER NONCURRENT ASSETS – are those assets that do not fit into the definition of the previously mentioned noncurrent assets.  Examples include long-term advances to officers, directors, shareholders, and employees, or abandoned property and long-term refundable deposit.

LIABILITIES

Liabilities are defined as present obligations of an entity arising from past transactions or events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits.

CURRENT LIABILITIES – The face of the statement of financial position includes the following line items for current liabilities.

a.     Trade and other payables – a line item for accounts payable, notes payable, accrued interest on note payable, dividends payable, and accrued expenses. No objection can be raised if the trade accounts and notes payable are separately presented.

b.     Current Provisions

c.     Short-term Borrowing

d.     Current Portion of Long-term Debt

e.     Current Tax Liability

NON-CURRENT LIABILITIES – is also a residual definition, provides that all liabilities not classified as current (within 12-month period) are classified as noncurrent. Examples are:

a.     Noncurrent of long-term debt
b.     Long-term obligations to company officers
c.     Long-term deferred revenue

SHAREHOLDERS' EQUITY

Shareholders' equity is the residual interest of owners in the net assets of a corporation measured by the excess of assets over liabilities. The elements constituting shareholders' equity are:

a.     Capital Stock – This is the capital contribution made by the shareholders to the corporation.  This is actually paid in cash.

b.     Subscribed Capital Stock – This account is credited upon subscriptions and debited when the par value thereof is fully paid and the corresponding certificate is issued to the stockholders.

c.     Preferred stock – This account bears a certain rate of return to be paid first before common shareholders.

d.     Common Stock – is a form of corporate equity ownership which has voting rights. The benefits of common stock include dividend earnings and capital appreciation.

e.     Additional Paid-in Capital – Refers to aggregate amount of capital contributed to a corporation by shareholders through purchase of stock. This account can refer to paid-in capital in excess of par value.

f.      Retained Earnings (Deficit) – This represents as the cumulative undistributed earnings of the company, net of provision for losses and provision for income tax.

g.     Retained Earnings Appropriated – A second retained earnings account that reports the amount that a company has transferred from the unappropriated or regular retained earnings account.

h.     Revaluation Surplus - When a revalued asset is disposed, any revaluation surplus may be transferred to Retained Earnings.

i.       Treasury Stock – the Corporation's own stock, fully paid and issued to stockholders and then reacquired by the company not for cancellation

STATEMENT OF CASH FLOWS

The statement of cash flows is a basic component of the financial statements which summarizes the operating, investing and financing activities of an entity.  In simple language, the statement of cash flows provides information about the cash receipts and cash payments of an entity during a period.

The company is using Direct Method in presenting cash flow statement.

Cash Inflows from Operating Activities are:

Cash receipts from cash sales, down payments, and collections of monthly amortization of Installment Contract Receivable.
All other cash receipt that do not stem from transactions defined as investing or financing activities

Cash Outflows for Operating Activities are:

Cash payments to other suppliers and employees for other goods and services
Cash payments to government for taxes, duties, fines, and other fees or penalties
Cash payment to lenders and other creditors for interest
All other cash payments that do not stem from transactions defined as investing and financing activities.

Cash Inflows from Investing Activities are:

Receipt from cash sales and installment sales
Receipt from sales of Property, Plant and Equipment and other productive assets

Cash Outflows from Investing Activities are:

Disbursement of loans to SBU

Cash Inflows from Financing Activities are:

Proceeds from issuing notes and from other short or long-term borrowing.

Cash Outflows from Financing Activities are:

Payment of interests
Repayment of amounts borrowed
Other principal payments to creditors who have extended long-term credit.

Significant According Policies

1.  All small items are priced at Php1.00  to include in the inventory so with all fully depreciated asset.

2. Main income of HGMP is sales of lot

          All other Income     

Interest Income

                    Penalties

                    Interest Income

3. all purchases and construction should base on UDC and credited of sources of funds.

4. All credits from the masterlist should be based on documents.

5. All UDC's are supported of masterlist countered by SBU processed checked of masterlist of 3^rd floor

6. Updated from the entries of abstract forfeitures all lot buyers deposit represents shall be returns.  Considered of the following.

6.1 Forfeiture under the existing laws particularly Republic Act No. 6552 otherwise known as Maceda Law shall prevail

          6.2 Upon payment of customer in case of failure to paid by the customer after what the contract shall be forfeited.

          6.3 Unpaid accounts will be forfeited in 30 days

         

          6.4 Cash advance should be liquidated 48 hours from the receipt of the payee and 7 calendar days for the SBU. Any unliquidated cash advances within the time frame mentioned, will be deducted from the salary of the requisitioned.