Input tax computation

To    Accounting staff

December 16, 2017

Input tax and Design Fees

This is to thank Bia Merriam for taking note of the Design Fees and the VAT input tax, an account that is lacking in our  chart of accounts.

1.  Input tax is an asset account.  It is deductible when we pay the output tax.  When we buy a vatable material or FFE, what we pay for includes the material/FFE and the input VAT

    Thus when a materials or FFE is purchased.

         Purchase                   xxxx

         VAT Input Tax          xxxx

                      CIB                              xxxx

2. When pay the VAT :

      VAT payable

      Less Input tax

      VAT output tax

Thus be sure you obtain receipts from VAT registered companies,  and include the supporting docs for the allowances

The moment we pay VAT, the input tax is deducted (and is removed from our assets?) and is considered erased?

(GINAGAWA BA ITO SOPHIA BIA?)

3. The design fees for Engr. Jay and  Arch Andrew are part of UDC (inventory cost, COGS) Real Estate Held for sale. Read the significant accounting policy which we shall discuss

READ THE REVISED CHART OF ACCOUNTS WHICH HAS UNDERGONE AT LEAST 5 REVISIONS/EDITINNG

     

--

PAGSASANAY SA TAGUMPAY (Training for Success)

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Revised Numbered Chart of Accounts for Bereavement Providers Inc

PAGSASANAY SA TAGUMPAY

December 8, 2017
Here is the revised numbered chart  of accounts for Bereavement Providers Inc.

Proposed Chart of Accounts for Bereavement Providers

We are all accountable

1. Prefix for business groupings.

    0l    Holy Gardens Group:

           011      La Union

           012      Pangasinan

           013     Calamba

           014      Calapan

            015      Oton

            016      HAMP

            017    Malasiqui

    02    Bereavement Providers Inc

    03   Majorem Lending Investors Inc

    04   Destiny Financial Plans Inc

    05   Chapel Memorial Care Crematorium  and Services

    06   Columbary

2.  Chart of Accounts and Number 

     Prefix 03

      Current Assets (account numbers 1000 - 1699)

      

       Account Number                       Description                                    Type

         1000                                    Cash                                               Asset

         1010                                    Checking  Account                          Asset

         1060                                    Petty Cash Fund                              Asset

         1200                                 Accounts Receivable                            Asset

                                                      

                    12001                                  Advances to Employees

                    12002                                  Advances to Officers

                    12003                                  Advances to Affiliates

                    12004                                  Shortages

                    12005                                  Management Fee Receivable

                    12006                                  Trade Receivable

                     

        1250                                   Allowance for                                  Contra account

                                                    Doubtful Account

        1310                                    Real Estate Held for Sale                 Asset

        1410                                    Materials Inventory                         Asset

        1420                                    Office Supplies                               Asset

        1530                                    Prepaid Insurance                           Asset

Property, Plant, and Equipment (account numbers 1700 - 1899)

        1700                                 Land                                               Asset

        1710                                 Buildings                                          Asset

        

        1720                                 Leasehold Improvement                  Asset

   
         1730                                 Office     Equipment                       Asset

     
         1731                                 Interment  Equipment

        1732                                  Office Furniture

        1780                                  Vehicles                                        Asset

        1810                                Accumulated Depreciation - Buildings

   
        1811                                Accumulated Depreciation    - Leasehold

        1830                                Accumulated Depreciation - Equipment

        1880                                Accumulated Depreciation - Vehicles

        1900                                Investment in Affiliates

Current Liabilities (account numbers 2003 - 2499)

       2013                 Notes Payable - Credit Line #1                        Liability

       2023                 Notes Payable - Credit Line #2                        Liability

       2100               Accounts Payable  (Trade)                                Liability

       2210               Wages Payable                                                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

        2310              Interest Payable                                               Liability        

        2450             Unearned Revenues                                           Liability

                             Deferred Income      

        2500            Funds Payable                                                   Liability

       

Long-term Liabilities (account numbers 2500 - 2699)

       2510            Mortgage Loan Payable                                       Liability

       2560            Bonds Payable                                                   Liability

        2565           Discount on Bonds Payable

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        Management Fees                                              Income

         3250       Promo Items Sold                                                Income

         3300       Training Fees                                                      Income

         3350        Processing and Transfer Fee                               Income

         3400       Commission Income from Repeat Sales                Income

Cost of Goods Sold (account numbers 4000 - 4999)

       4150            COGS -        Management  Fee                         Cost

              

       4250           COGS -         Promo Items                                 Cost

       4300           COGS -         Training  Fees                               Cost

       4350            COGS          Processing Fee                            Cost

                                                    

Gen Admin            (account numbers 5900 - 5999)

    5910           Staff Salaries                                                      Expenses

    5911           Allowances                                                         Expenses

    5920           Wages (Contractuals)                                          Expenses

   

    5915           Staff . Payroll Taxes                                             Expenses

                      (SSS Philhealth, HDMF)

   5930          . Supplies                                                            Expenses

   5940            Rental                                                                Expenses

   5950            Payroll Dept. Telephone                                       Expenses

                       Internet

   5960            Repairs and Maintenance                                    Expenses

  5970             Security                                                             Expenses

  5990              Local Taxes and Permits                                    Expenses

Significant accounting policies

1. Bereavement Providers Inc is a management company for the Holy Gardens Group:   memorial parks, CMCCS, Majorem Lending, Destiny Financials  It provides basic services to group like HR, accounting, financial management and system, (controls)  audit, record keeping and the like.

     It derives its income/revenues from management fee charged to Single Business unit, based on % of total revenues of BPI's total operating costs. More can be assessed to SBUs in case of deficiency.

    Audit accounting legal fees are charged at cost pro rata

2.   Other sources of revenues:

     1. Trading income -   If it is economical to buy in bulk materials that are  Class A  (small cost, large volume) and C:  small quantity big  price BPI orders this and sells this for at least 30% mark up)

     2. Training  fees  -   Are fees charged for orientation, and/or reimbursement for expenses that cover:   food, lodging, travel, transportation and others.   This is charged at cost +vat

        This also includes ppt training materials which is charged minimally at P2,000 each per SBU. The ppt are intellectual property/rights of BPI and shall not be downloaded in individual storage devices of individuals:  employees or third  parties without just compensation nor written consent of BPI

    3. Processing and transfer fees   These are fees charged to customers of SBUs

       Processing fee charged for normal issuance of CO/DOS of fully paid plots.  This covers documents cost, notarial, pouching costs, cover/container of documents, hand outs tips -   Estate Planning, Health tips, and promo items.   As of of 2017 this is P600.00/documents

      Transfer fee - this charged for special transaction

      1.  Issuance of new docs for lost documents (after executing affidavit of loss and affidavit of publication)

      2. Transfer (from living person to another  living person)  covers also exchanges)

      3.  Assignment (from a living person for use by a deceased)

      4.  Adjudication from a deceased to the heirs

      5.  ARU is shared 50% 50% between SBU and BPI;    CCRMA reflects the assignment of the plot to third parties