December 8, 2017
Today is Immaculate Conception Day of Virgin Mary. Fiesta is celebrated in many parts of the country: Oton, Pasig, Antipolo.
Today we publish the new, revised, numbered chart of accounts of Holy Gardens Group. The numbering would make it easier for internal communications and collating, filtering of accounts when in excel file, and thus makes accounting work easier. It is faster when we convert to CAS (Computerized Accounting System)
Read and start implementing this:
Rizal Philippines
December 4, 2017
It is hereby proposed that we rationalize our Chart of Accounts, we number the same so that the accounts are filterable, searchable at Excel. It is preferred that we ape the large corp chart of accounts. viz:
10200 Cash - Payroll Checking
10600 Petty Cash Fund
12100 Accounts Receivable
12500 Allowance for Doubtful Accounts
13100 Inventory
14100 Supplies
15300 Prepaid Insurance
17100 Buildings
17300 Equipment
17800 Vehicles
18100 Accumulated Depreciation - Buildings
18300 Accumulated Depreciation - Equipment
18800 Accumulated Depreciation - Vehicles
20230 Notes Payable - Credit Line #2
21000 Accounts Payable
22100 Wages Payable
23100 Interest Payable
24500 Unearned Revenues
25600 Bonds Payable
25650 Discount on Bonds Payable
27500 Retained Earnings
29500 Treasury Stock
31022 Sales - Division #1, Product Line 022
32018 Sales - Division #2, Product Line 015
33110 Sales - Division #3, Product Line 110
41022 COGS - Division #1, Product Line 022
42018 COGS - Division #2, Product Line 015
43110 COGS - Division #3, Product Line 110
50150 Marketing Dept. Payroll Taxes
50200 Marketing Dept. Supplies
50600 Marketing Dept. Telephone
59150 Payroll Dept. Payroll Taxes
59200 Payroll Dept. Supplies
59600 Payroll Dept. Telephone
96100 Loss on Sale of Assets
1011 Savings Account
1012 Time Deposits
1200 Accounts Receivable Asset
12001 Advances to Employees
12002 Advances to Officers
12003 Advances to Affiliates
12004 Shortages
1730 Office Equipment Asset
1731 Interment Equipment Asset
1732 Office Furniture Asset
1880 Accumulated Depreciation - Vehicles
1900 Investment in Affiliates
19001 Investment in Other Companies
2023 Notes Payable - Credit Line #2 Liability
2110 Salaries payable
2111 Contributions and Remittances Payable 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
22502 Income Tax Payable
22503 Penalties Payable
22504 Mayors permit (Business
Tax Payable)
22505 RET Payable
22506 Doc Sci Stamps Payable
2275 Retirement Fund Payable Liability
2310 Accrued Interest Payable Liability
2450 Unearned Revenues Liability
2508 Processing Fee Payable Liability
2509 Transfer Fee Payable Liability
2510 Loan Collection for Majorem Liability
2511 PIS PMS Payable to Majorem Liability
2512 JV sharing Liability
2560 Bonds Payable Liability
2565 Discount on Bonds Payable
2750 Retained Earnings Equity
2950 Treasury Stock Equity
3250 Bone Transfer Income
3275 Exhumation and Pull out Income
4250 COGS Bone Transfer Cost
4275 COGS Exhumation and Pull out Cost
5015 Marketing Staff. Payroll Taxes Expenses
(SSS, HDMF, Philhealth, Employers
Contribution)
5016 Retirement Fund Contribution Expenses
5060 Marketing Staff. Telephone Expenses
5215 Employees Taxes (Employers
Contribution SSS, Philhealth,HDMF Expenses
5216 Retirement Fund Contribution Expenses
(Electricity and Water)
5912 Bonus and Incentives Expenses
Contribution)
5916 Retirement Fund Contribution Expenses
5930 Supplies Expenses
5950 Payroll Dept. Telephone Expenses
5970 Gasoline and transportation Expense
5995 Depreciation Expenses
5996 Miscellaneous Expenses Expenses
5997 Recruitment Fee Expenses
5998 Management Fee Expenses
5999 Professional Fee Expenses
9180 Gain on Sale of Assets Non recurring income
9610 Loss on Sale of Assets (Non recurring income)
1. Inventory system - We use perpetual inventory system. Since we have fixed our COGS we do not need to review and upgrade our COGS. We do RGP computation on each and every plot sold using excel to do so after sharing
2. Our inventory cost include the following:
1. Cost of land
2. Real Estate tax
3. Transaction Tax, CGT if we pay the same as stipulated in the contract to sell
4. Fees and Permits from LGU (including representation)
5. Fees and Permits from National Govt Agencies
6. Professional and design fees
7. Consultant fees
8. Development costs:
Direct Materials
Direct Labor
Straight contract
2 . The COGS is arrived at by making debits to Real Estate Held for Sale (Inventory) and credit to unexpended development cost. Total cost (land and development cost + approval fees, license to
sell/salable area.
Thus all purchases of materials labor and contract are recorded as:
Unexpended Development Cost xxxx
CIB xxxx
3. COGS is arrived at by dividing the total of 2.1 to 2.8 by net saleable area. which in most cases shall not be more than 70% of gross as prescribed by PD 957. We arrived at the following considering that many of our backfilling jobs are at 3 meters. (due to wrong computations by technical people
Thus all purchases of materials labor and contract are recorded as:
Unexpended Development Cost xxxx
CIB xxxx
3. COGS is arrived at by dividing the total of 2.1 to 2.8 by net saleable area. which in most cases shall not be more than 70% of gross as prescribed by PD 957. We arrived at the following considering that many of our backfilling jobs are at 3 meters. (due to wrong computations by technical people
Current COGS is P3,500/sm
Lawn - P8,750
Niche 35,000
GE 105,000
2. The revenues:
1. Installment sales is net of COGS after JV sharing for cash,
for installment, this the net sharing total - COGS is divided by 60 to arrive at RGP
for installment, this the net sharing total - COGS is divided by 60 to arrive at RGP
2. Interment fee is declared as GP net of COGS
3. There are lots on promo that are zero dp zero interest. However, if the PPA is in arrears, 1% interest
on the principal is charged + 4% penalty compounded
4. Account in arrears - Accounts can only be in arrears for 90 days, after which the account is forfeited in accordance with RA 6552
5. Income on installment sales is declared as net of COGS
6. Income on interment is declared as Gross Profit after COGS; each individual interment IS is done
and netted out. The target is 40% GP, the expenses are budgetted and account numbers are as follows
COMPUTATION FOR GP AND COST OF GOODS SOLD
A. Plots
3101 Cash Sales
3102 Installment Sales
4101 COGS
41011 Cost of Land
41012 Real Estate Tax
41013 Transaction tax: transfer fee, registration, CGT, Attys Fee
Commission if we agree to such
41014 Fees and Permits from LGU (including representation)
41015 Fees and Permits from National Govt (ECC, LTS, NWRB)
41016 Professional and design fees
41017 Consultant Fees
41018 Dev Cost Straight Contract
41019 Direct Materials
41020 Direct Labor
41021 Heavy Equipment cost
41022 Security and Caretaker fees
These are totaled and debited to Real Estate Held for Sale and Credited to UDC
B 3220 Interment Service Revenue
4220 COGS
4201 Funeral pack
4202 Marker sanding and engraving
4202 Marker sanding and engraving
4203 Solid Refreshment
4204 Liquid refreshment
4205 Flowers
4206 Balloons
4207 Tarp Memorial Notice
Tarp Appreciation
4208 Videoke
4209 Gas convoy
4210 Gas excavation
4211 Tribute
4204 Liquid refreshment
4205 Flowers
4206 Balloons
4207 Tarp Memorial Notice
Tarp Appreciation
4208 Videoke
4209 Gas convoy
4210 Gas excavation
4211 Tribute
Non Cash COGS
4215 Cost of Vault
4216 Cost of Marker
4216 Cost of Marker
4217 Depreciation interment equipment
4218 Depreciation AV equipment
4219 Depreciation Vehicles
4220 Mass Cards
4221 Motif
4222 Laundry
4223 Ink
4224 Paper
4225 Tokens, souvenirs
4226 Grass
B. 3250 Bone transfer revenue
4250 COGS Bone Transfer
4251 Excavation
4252 Gas for excavation
Non Cash
4253 Bone Bag
4254 Depreciation
C. 3275 Exhumation and pull out COGS
Cash
3276 Labor
3277 Permits
3278 Chemicals, disinfectant, gloves
3280 Non Cash
3281 Depreciation of equipment
5. Installment Sales Accounting;
The company employs installment sales accounting. The Realized Gross Profit is recognized upon receipt of down payment and monthly amortization
BIR says that when total dp of 25% is made during the year, the installment is considered cash which is unfair considering that you have not received the payment. And we pay the full taxes
Thus:
6. Computation for VAT payable and input tax
An input tax is an asset, part of the purchase of materials or FFE from a VAT registered entity that can be deducted from VAT output tax.
Thus when you purchase an inventory:
Materials xxx
Input tax xxx
CIB xxx
Computation: From Business Tips ph
Sample Computation of VAT Payable:
Let’s assume that,
Total Vatable Sales (VAT exclusive) = P100,000
Total purchases with VAT receipts (VAT exclusive) = P70,000
Total Vatable Sales (VAT exclusive) = P100,000
Total purchases with VAT receipts (VAT exclusive) = P70,000
P100,000 x 12% or P12,000
– P70,000 x 12% or P8,400
VAT Payable = P3,600
– P70,000 x 12% or P8,400
VAT Payable = P3,600
2. Computing Net VAT Payable on VAT “inclusive” Sales/Receipts
Total Output Tax Due or Total Vatable Sales / 1.12 x 12%
Less: Total Allowable Input Tax or Total Vatable Purchases / 1.12 x 12%
Equals: VAT Payable
Less: Total Allowable Input Tax or Total Vatable Purchases / 1.12 x 12%
Equals: VAT Payable
Sample Computation of VAT Payable:
Example based on the above assumption:
Total Vatable Sales (VAT inclusive) = P112,000
Total purchases with VAT receipts (VAT inclusive) = P78,400
Total Vatable Sales (VAT inclusive) = P112,000
Total purchases with VAT receipts (VAT inclusive) = P78,400
P112,000 /1.12 x 12% or P12,000 Output tax
– P78,400 /1.12 x 12% or P8,400 Input tax
VAT Payable = P3,600
– P78,400 /1.12 x 12% or P8,400 Input tax
VAT Payable = P3,600
Or an alternative computation:
P112,000 /9.333 or P12,000
– P78,400 /9.333 or P8,400
VAT Payable = P3,600
– P78,400 /9.333 or P8,400
VAT Payable = P3,600
Output tax means the VAT due on the sale, lease or exchange of taxable goods or properties or services by any person registered or required to register under Section 236 of the Tax Code.
Input tax means the VAT due on or paid by a VAT-registered on importation of goods or local purchase of goods, properties or services, including lease or use of property in the course of his trade or business. It shall also include the transitional input tax determined in accordance with Section 111 of the Tax Code, presumptive input tax and deferred input tax from previous period.
Total Vatable Purchases are your total purchases from VAT registered suppliers. This should be supported with VAT receipts.
For Abstract, CRB
Less
9. OCV Number
Trial Balance for Every Accounting Period
Debit
6. Deferred Sale Revenue 2450
1. When a contract is made, and down payment is made the GL entry is:
Cash xxx
Installment Contract Receivable xxx
Funds Payable xxx
Deferred Revenue xxx
A SOA has to be made/generated for each customer to control monitor his/her payment, and to guide the sellers in the collection
Cash xxx
Installment Contract Receivable xxx
Funds Payable xxx
Deferred Revenue xxx
A SOA has to be made/generated for each customer to control monitor his/her payment, and to guide the sellers in the collection
Fields of the abstract:
1. Account Number
2. Date
3. Account Name
4. Lot Information
5. OR
.
6. Cash 1000
(As per OR)
7. Installment Contract Receivable 1210
8. Funds Payable.
8. 1. ME 2501
8. 2. Insurance 2502
8. 3. Collection Fee 2503
8. 4. VAT 2505
8 5. Memorial Care Fund 2504
Less
9. OCV Number
10 Outright Commission 5070
11. Transportation (Collection Allowance) 5080
NCR Net Cash Received /Net Amount for Sharing
Other Revenue Accounts
12 . Revenues Interment 3220
13 . Revenues Bone Transfer 3250
14. Revenues Transfer and Exhumation 3275
Miscellaneous Collections/Receipts
14. Loan Collection for Majorem Lending 2510
15 PIS PMS payable to Majorem Lending 2511
16. Processing Fee for BPI 2509
11. Transportation (Collection Allowance) 5080
NCR Net Cash Received /Net Amount for Sharing
Other Revenue Accounts
12 . Revenues Interment 3220
13 . Revenues Bone Transfer 3250
14. Revenues Transfer and Exhumation 3275
Miscellaneous Collections/Receipts
14. Loan Collection for Majorem Lending 2510
15 PIS PMS payable to Majorem Lending 2511
16. Processing Fee for BPI 2509
Trial Balance for Every Accounting Period
Debit
. Cash 1000
Outright Com 5070
Cash 1000
Transportation Allowance 5080
Cash 1000
Net Cash Received
Outright Com 5070
Cash 1000
Transportation Allowance 5080
Cash 1000
Net Cash Received
Funds Payable.
1. ME 2501
2. Insurance 2502
3. Collection Fee 2503
4. VAT 2505
5. Memorial Care Fund 2504
6. Deferred Sale Revenue 2450
Other Revenue Accounts
7. Revenues Interment 3220
8. Revenues Bone Transfer 3250
9 Revenues Transfer and Exhumation 3275
Other Funds Payable Accounts
10. Loan Collection for Majorem Lending 2510
11 PIS PMS payable to Majorem Lending 2511
12 Transfer fee for BPI 2509
7. Revenues Interment 3220
8. Revenues Bone Transfer 3250
9 Revenues Transfer and Exhumation 3275
Other Funds Payable Accounts
10. Loan Collection for Majorem Lending 2510
11 PIS PMS payable to Majorem Lending 2511
12 Transfer fee for BPI 2509
2. For the Cash Disbursement book
1. Date
2. Account Number
3. Supplier Name
4. Address
5. CV number
6. Amount paid
7. PO/contract Number
8. Date
9. DR number and date
Accounting entries
Asset Accounts:
10 Savings Deposit (Transfer of Funds) 1011
11. Petty Cash Fund 1060
12. Revolving Fund 1061
13 Advances to Employees 12001
Advances to Officers 12002
Advances to Affiliates
13 Advances to Employees 12001
Advances to Officers 12002
Advances to Affiliates
14 Property Land and Equipment 1700 to 1880
Liability
15 Notes Payable 2013
16 Accounts Payable 2100
17 Salaries Payable 2110
18 Employees Taxes Payable 2111
19, Taxes payable 2250
20 Unexpended Development Cost 2400
(Plot COGS)
Input tax 24001
Input tax 24001
21 Funds Payable 2500
22 Loans Payable 2510
23 COGS Interment 4201
Input tax 42011
Input tax 42011
24 COGS Bone Transfer 4250
Input tax 42501
Input tax 42501
25 COGS Exhumation and pull out 4275
26 Marketing Expense 5010 to 5150
Input tax
Purchases and Inventory
29. Materials 1410
Input tax 14101
30 Supplies 1420
Input tax 14201
31 FFE 1700
Input tax 17001
Input tax
27 Park Operations 5200 to 5299
Input tax
Input tax
28 Gen Admin 5900 to 5999
Input tax
Input tax
Purchases and Inventory
29. Materials 1410
Input tax 14101
30 Supplies 1420
Input tax 14201
31 FFE 1700
Input tax 17001
The trial balance entry consist of:
Dr
Dr
Cash in Bank 1010
Petty Cash Fund 1060
. Revolving Fund 1061
Property Land and Equipment 1700 to 1880
Notes Payable 2013
Accounts Payable 2100
Salaries Payable 2110
Employees Taxes Payable 2111
Taxes payable 2250
Unexpended Development Cost 2400
Funds Payable 2500
Loans Payable 2510
COGS Plots 4101
COGS Interment 4201
COGS Bone Transfer 4250
COGS Exhumation and pull out 4275
Marketing Expense 5010 to 5150
Park Operations 5200 to 5299
Gen Admin 5900 to 5999
Purchases and Inventory
Materials 1410
Supplies 1420
FFE 1700
VAT Input Tax
Cash in Bank 1010
THIS CALLS FOR A METICULOUS AND DETAILED POSTING
Purchases and Inventory
Materials 1410
Supplies 1420
FFE 1700
VAT Input Tax
Cash in Bank 1010
THIS CALLS FOR A METICULOUS AND DETAILED POSTING
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