PAGSASANAY SA TAGUMPAY
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:
Current Assets (account numbers 10000 - 16999)
10100 Cash - Regular Checking
10200 Cash - Payroll Checking
10600 Petty Cash Fund
12100 Accounts Receivable
12500 Allowance for Doubtful Accounts
13100 Inventory
14100 Supplies
15300 Prepaid Insurance
Property, Plant, and Equipment (account numbers 17000 - 18999)
17000 Land
17100 Buildings
17300 Equipment
17800 Vehicles
18100 Accumulated Depreciation - Buildings
18300 Accumulated Depreciation - Equipment
18800 Accumulated Depreciation - Vehicles
Current Liabilities (account numbers 20030 - 24999)
20130 Notes Payable - Credit Line #1
20230 Notes Payable - Credit Line #2
21000 Accounts Payable
22100 Wages Payable
23100 Interest Payable
24500 Unearned Revenues
Long-term Liabilities (account numbers 25000 - 26999)
25100 Mortgage Loan Payable
25600 Bonds Payable
25650 Discount on Bonds Payable
Stockholders' Equity (account numbers 27000 - 29999)
27100 Common Stock, No Par
27500 Retained Earnings
29500 Treasury Stock
Operating Revenues (account numbers 30000 - 39999)
31010 Sales - Division #1, Product Line 010
31022 Sales - Division #1, Product Line 022
32018 Sales - Division #2, Product Line 015
33110 Sales - Division #3, Product Line 110
Cost of Goods Sold (account numbers 40000 - 49999)
41010 COGS - Division #1, Product Line 010
41022 COGS - Division #1, Product Line 022
42018 COGS - Division #2, Product Line 015
43110 COGS - Division #3, Product Line 110
Marketing Expenses (account numbers 50000 - 50999)
50100 Marketing Dept. Salaries
50150 Marketing Dept. Payroll Taxes
50200 Marketing Dept. Supplies
50600 Marketing Dept. Telephone
Payroll Dept. Expenses (account numbers 59000 - 59999)
59100 Payroll Dept. Salaries
59150 Payroll Dept. Payroll Taxes
59200 Payroll Dept. Supplies
59600 Payroll Dept. Telephone
Other (account numbers 90000 - 99999)
91800 Gain on Sale of Assets
96100 Loss on Sale of Assets
1. Prefix for business groupings.
01 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
Current Assets (account numbers 1000 - 1699)
Account Number Description Type
1. Prefix for business groupings.
01 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
Current Assets (account numbers 1000 - 1699)
Account Number Description Type
1000 Cash Asset
1010 Checking Account Asset
1011 Savings Account
1012 Time Deposits
1060 Petty Cash Fund Asset 1061 IF revolving Fund Asset
1200 Accounts Receivable Asset
12001 Advances to Employees
12002 Advances to Officers
12003 Advances to Affiliates
12004 Shortages
1210 Installment Contract Asset Receivable
1250 Allowance for Doubtful Account
1310 Real Estate Held for Sale Asset (Inventory) 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 Asset
1732 Office Furniture Asset
1780 Vehicles Asset
1810 Accumulated Depreciation - Buildings
1811 Accumulated Depreciation - Leasehold
1830 Accumulated Depreciation - Equipment
1880 Accumulated Depreciation - Vehicles
1900 Investment in Affiliates
19001 Investment in Other Companies
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
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
2400 Unexpended Development Cost Liability
2450 Unearned Revenues Liability Deferred Income
2500 Funds Payable Liability
2501 ME Liability 2502 Insurance Liability 2503 Collection Fee Liability 2504 Memorial Care Fund Liability 2505 VAT Payable Liability 2506 Buyers deposit/reservation Liability 2507 Construction Bond 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
Long-term Liabilities (account numbers 2500 - 2699)
2520 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)
3101 Cash Sales Plots Income
3102 Installment Sales RGP Income
3220 Interment Service GP Income
3250 Bone Transfer Income
3275 Exhumation and Pull out Income
3300 Interest Income
3350 Penalties Income
Cost of Goods Sold (account numbers 4000 - 4999)
4101 COGS - Plot Sales Cost
4201 COGS - Interment Cost
4250 COGS Bone Transfer Cost
4275 COGS Exhumation and Pull out Cost
Marketing Expenses (account numbers 5000 - 5199)
5010 Marketing Staff . Salaries Expenses
5015 Marketing Staff. Payroll Taxes Expenses
(SSS, HDMF, Philhealth, Employers
Contribution)
5016 Retirement Fund Contribution Expenses
5020 Marketing Staff. Supplies Expenses
5060 Marketing Staff. Telephone Expenses
5070 Com Expenses
5080 Transportation Allowance Expenses
5090 Promo Items Expenses
5100 Sales Meetings Expenses
5110 Prizes Awards Expenses
5120 Discounts Expenses
5130 Gifts, food, Expenses
5140 Other Customer Service Expenses Expenses
5150 Ads, events Expenses
Park Operations and Maintenance (5200 - 5299)
5210 Salaries GT Expenses 5211 Allowances GT
5212 Wages GC Expenses
5215 Employees Taxes (Employers
Contribution SSS, Philhealth,HDMF Expenses
5216 Retirement Fund Contribution Expenses
5220 Gasoline and lubrication Expenses
5230 Repairs and maintenance Expense
5240 Planting materials, pesticide, fertilizer Expense
5250 Other supplies Expense
5280 Security Expense
5290 Irrigation Expense Expense
(Electricity and Water)
Gen Admin (account numbers 5900 - 5999)
5910 Staff Salaries Expenses 5911 Allowances Expenses
5912 Bonus and Incentives Expenses
5920 Wages (Contractuals) Expenses
5915 Staff . Payroll Taxes Expenses (SSS Philhealth, HDMF Employers
Contribution)
5916 Retirement Fund Contribution Expenses
5930 Supplies Expenses
5940 Rental Expenses
5950 Payroll Dept. Telephone Expenses Internet
5960 Repairs and Maintenance Expenses
5970 Gasoline and transportation Expense
5990 Local Taxes and Permits Expenses
5995 Depreciation Expenses
5996 Miscellaneous Expenses Expenses
5997 Recruitment Fee Expenses
5998 Management Fee Expenses
5999 Professional Fee Expenses
Other (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/footnote;
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
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
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
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
Non Cash COGS
4215 Cost of Vault
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
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
P100,000 x 12% or P12,000
– 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
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
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
Or an alternative computation:
P112,000 /9.333 or P12,000
– 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.
