Accounting Cycle For Merchandise

Basic Accounting for Non-Accountants
LO3: Apply the Standard Chart of Accounts to Respective

Cooperatives
1. Audited Financial Statements

a. Independent Auditor’s Report
b. Management Responsibility
c. Representation
d. Statement of Financial Condition – LO 2
e. Statement of Operation – LO 2
f. Statement of Cash Flow – LO 2
g. Statement Changes in Members Equity – LO 2
h. Notes to FS – LO 2
2. Standard Chart of Accounts
1
Audit Definition in General
• It is the process of evaluation or analysis of
something to determine its accuracy or
conformity with certain criteria or standards
2
Financial Statement Audit
• is the examination of an entity's financial
statements and accompanying disclosures by
an independent auditor
• for the purpose of expressing an opinion on

the truth and fairness of financial statements
and whether it is prepared in accordance with
generally accepted accounting principles
3
Audited Financial Statements
• Financial statements that bear the report of
independent auditors attesting to the financial
statements' fairness and compliance with
generally accepted accounting principles.
4
Financial Statements Required by CDA
1. Statement of Financial Condition

2. Statement of Changes in Equity
3. Statement of Operations
4. Statement of Cash Flows
5. Notes to Financial Statements
5
Additional Reports to be Submitted - Audited
Financial Statements
• Independent Auditor’s Report
• Statement of Representation
• Statement of Management Responsibility
6
7
8
9
10
 Independent Auditor’s Report
• Statement of Representation
11
12
 Independent Auditor’s Report
 Statement of Representation
13
14
15
Audited Financial Statements Required
by CDA
I. Independent Auditor’s Report

II. Statement of Representation
III. Statement of Management Responsibility
IV. Financial Statements
1. Statement of Financial Condition
2. Statement of Changes in Equity
3. Statement of Operations
4. Statement of Cash Flows
5. Notes to Financial Statements
16
Basic Accounting for Non-Accountants
LO3: Apply the Standard Chart of Accounts to Respective
Cooperatives
 Audited Financial Statements

a. Independent Auditor’s Report
b. Management Responsibility
c. Representation
d. Statement of Financial Condition – LO 2
e. Statement of Operation – LO 2
f. Statement of Cash Flow – LO 2
g. Statement Changes in Members Equity – LO 2
h. Notes to FS – LO 2
• Standard Chart of Accounts
17
MC 2016-06 | REVISED STANDARD CHART OF ACCOUNTS
FOR COOPERATIVES
MEMORANDUM CIRCULAR NO.2016-06
Series of 2016
18
19
Definition of Account
Account is a detailed record for each type

of asset, liability, equity, revenue, and
expense on which the increase or
decrease effects of every transactions are
being recorded
20
Statement of Financial Conditions (Balance Sheet)
Account Title Definition
ASSETS – Main Type of Account
Current Assets – Classification
of account
Non-Current Assets
LIABILITIES
Current Liabilities
Non-Current Liabilities
Equity
Members’ Equity
Statutory Funds
Donation and Grants
ASSETS A quantitative summary of a
Current Assets Cooperative financial
Non-Current Assets condition at a specific point in
LIABILITIES time.
Current Liabilities
Non-Current Liabilities
The first part shows the
productive assets and the
Equity second part shows the
Members’ Equity methods used in financing
Statutory Funds them.
Donation and Grants
ASSETS
Current Assets Economic Resources of
Cooperatives that are recognized
Non-Current Assets and measured in conformity with
LIABILITIES Philippine Financial Reporting
Current Liabilities Standard taking into consideration
cooperative laws, principles and
Non-Current Liabilities practices in the Philippines.
Equity
Members’ Equity
Statutory Funds
Donation and Grants
ASSETS
CURRENT ASSETS Cash and other assets that are
reasonably expected to be realized
Cash and Cash Equivalents in cash or intended for sale or
Investments in Short Term consummation within twelve
Securities months after the balance sheet
Loans and Receivables date, or the normal operating cycle
of the business, unless it is
Inventories restricted from being exchanged or
Biological Assets used to settle a liability for at least
Other Current Assets twelve months after the balance
sheet date (PAS 1)
ASSETS – Type of Account
Cash and Cash Equivalents - in cash or intended for sale or
Group of Account consummation within twelve
Cash on Hand – Account months after the balance sheet
Title date, or the normal operating cycle
Checks & Other Cash of the business, unless it is
Items (COCI) restricted from being exchanged or
used to settle a liability for at least
Cash in Bank twelve months after the balance
Cash in Cooperative sheet date (PAS 1)
Federation
Petty Cash Fund
Revolving Fund
Change Fund
ASSETS
Cash and Cash Equivalents in cash or intended for sale or
Cash on Hand consummation within twelve
Checks & Other Cash months after the balance sheet
Items (COCI) date, or the normal operating cycle
of the business, unless it is
Cash in Bank restricted from being exchanged or
Cash in Cooperative used to settle a liability for at least
Federation twelve months after the balance
Petty Cash Fund sheet date (PAS 1)
Revolving Fund
Change Fund
ASSETS
CURRENT ASSETS
This account refers to cash on hand
Cash and Cash Equivalents and demand deposits and other
Cash on Hand cash equivalents that are:
Checks & Other Cash (1) readily convertible to known
Items (COCI) amounts of cash; and
(2) so near their maturity (original
Cash in Bank maturities of 3 months or less) that
Cash in Cooperative they represent negligible risk of
Federation changes in value because of
Petty Cash Fund changes in interest rate. (PAS 7)
Revolving Fund
Change Fund
ASSETS
CURRENT ASSETS
This account refers to money
Cash and Cash Equivalents deposited in the federations to
Cash on Hand which they are affiliated, i.e. savings
Checks & Other Cash and time deposits which are
Items (COCI) unrestricted and readily available
when needed. A subsidiary ledger
Cash in Bank shall be maintained for each
Cash in Cooperative account.
Federation
Petty Cash Fund
Revolving Fund
Change Fund
ASSETS
CURRENT ASSETS
This account refers to limited
Cash and Cash Equivalents amount of money set aside for
Cash on Hand small expenditures such as
Checks & Other Cash stationeries, supplies and fares
Items (COCI) maintained under an imprest
system. It should be replenished
Cash in Bank periodically when the fund gets low.
Cash in Cooperative
Federation
Petty Cash Fund
Revolving Fund
Change Fund
ASSETS
CURRENT ASSETS
This account refers to the amount
Cash and Cash Equivalents set aside to cover disbursements for
Cash on Hand recurring transactions maintained
Checks & Other Cash under an imprest system. It should
Items (COCI) be replenished periodically when
the fund gets low. . This may
Cash in Bank include emergency purchases,
Cash in Cooperative withdrawal of deposits, release of
Federation loan proceeds, etc., the maximum
Petty Cash Fund amount of which shall be
Revolving Fund predetermined by the Board of
Directors.
Change Fund
ASSETS
CURRENT ASSETS
This account refers to the
Cash and Cash Equivalents reasonable amount of money set
Cash on Hand aside by BOD to change bigger
Checks & Other Cash amount of bills to smaller
Items (COCI) denomination or coins or vise versa.
Cash in Bank
Cash in Cooperative
Federation
Petty Cash Fund
Revolving Fund
Change Fund
ASSETS
CURRENT ASSETS
Cash and Cash Equivalents
Investment at Fair Value Financial assets are assets that
Through Profit or Loss derive their values because of a
Held-to-Maturity (HTM) contractual claim.
Financial Assets
Examples include:
Available for Sale (AFS) 1. Bank deposits
Financial Assets 2. Debt Securities
Unquoted Debt Securities 3. Equity Securities
Classified As Loans 4. Loans and accounts receivables
Investment in Non-Marketable
Equity Securities
ASSETS
CURRENT ASSETS
These refer to financial assets with
Loans and Receivables fixed or determinable payments
Loans Receivable – Current that are not quoted in an active
Loans Receivable - Past Due market other than Available for
Sale, Held to Maturity and
Loans Receivable Investment at Fair Value through
Restructured Profit and Loss.
Loans Receivable – Loans in
Litigation
Unearned Interests and
Discounts
Allowance for Probable
Losses on Loans
ASSETS
CURRENT ASSETS
Loans and Receivables This account refers to the
Loans Receivable – Current outstanding balance of loans
Loans Receivable - Past Due granted to the members which are
not yet due
Loans Receivable
Restructured
Litigation
Discounts
Losses on Loans
ASSETS
CURRENT ASSETS
Loans and Receivables This account refers to outstanding
Loans Receivable – Current balance of loans to member-
Loans Receivable - Past Due borrowers not paid on installment
due date, considered as Portfolio
Loans Receivable at Risk (PAR).
Restructured
Loans Receivable – Loans in One-day missed payment of any
Litigation installment due, the remaining
Unearned Interests and balance of loan receivable will be
Discounts considered as past due.
Losses on Loans
Financial Management Course
Portfolio At Risk (PAR)
 Refers to the total outstanding balance of

loans with one day missed amortization
payment.
 Failure to receive payment one day after due

date of amortization, makes the entire loan
balance at risk
36
ASSETS
CURRENT ASSETS
Loans and Receivables This account refers to receivables
Loans Receivable – Current from the member- borrowers
Loans Receivable - Past Due whose loan accounts were
restructured upon full payment of
Loans Receivable interests due.
Restructured
Litigation
Discounts
Losses on Loans
ASSETS
CURRENT ASSETS
Loans and Receivables This account refers to receivables
Loans Receivable – Current from member-borrowers under
Loans Receivable - Past Due legal action.
Loans Receivable The loan shall remain in this
Restructured account during the pendency of
Loans Receivable – Loans in the legal proceedings and until
Litigation fully paid/restructured/foreclosed
Unearned Interests and and undergone proceedings.
Discounts
Losses on Loans
ASSETS This account refers to interest
CURRENT ASSETS already received but not yet
earned and presented as a contra
Loans and Receivables asset account.
Loans Receivable – Current
Loans Receivable - Past Due Loan Principal 12,000
Interest Deducted in
Loans Receivable advance 1,200
Restructured Loan Proceed 10,800
Litigation Loans Receivable, Gross – 12,000
Unearned Interests and Less: Unearned
Discounts Int. Income 1,200
Allowance for Probable Loans Receivable 10,800
Losses on Loans
ASSETS
CURRENT ASSETS
Loans and Receivables This account refers to the
Loans Receivable – Current cumulative amount set up against
Loans Receivable - Past Due the current operation for possible
losses arising from non-collection
Loans Receivable of loans. MC 2003-04 requires the
Restructured following allowance:
Loans Receivable – Loans in a) 35% of 1 to 12 months past
Litigation due loans,
Unearned Interests and b) 100% of more than one year
Discounts past due loans
Losses on Loans
Aging of Loans Receivable – 12/31/2013
Particulars Amount % of Amount of
Required Required
Allowance Allowance
Current Loans 26,030,686.88 None
Loans outstanding with 400,000.00 None
one-day missed payments
up to 30 days
Loans outstanding with 1,000,000.00 35% 350,000
missed payments of 31
days up to 12 months
Loans outstanding with 600,000.00 100% 600,000
over 12 months missed
payments
Total 28,030,686.88 950,000
41
ASSETS
CURRENT ASSETS
Loans and Receivables This account refers to the amount
Loans Receivable due from member and/or non-
Accounts Receivable member patrons resulting from
services rendered and sales of
Installment Receivables related goods /merchandise which
are expected to be collected
within the credit terms set by the
Board of Directors.
ASSETS
CURRENT ASSETS
Loans and Receivables This account refers to the amount
Loans Receivable due from members and non-
Accounts Receivable member patrons for sale of
merchandise/goods on a deferred
Installment Receivables payment or installment plan.
ASSETS
CURRENT ASSETS
This account refers to total
Loans and Receivables collectibles due from accountable
Advances to Officers, officers and employees arising
Employees and Members from shortages, losses and
Due from Accountable unliquidated cash advances
Officers and Employees beyond the prescribed period,
that are subject to immediate
settlement.
ASSETS
CURRENT ASSETS
These refer to cost or other
Inventories appropriate value of merchandise
Merchandise Inventory and other goods on hand, in-
Repossessed Inventories transit, on consignment with other
entities and in process which are
Spare Parts/Materials & intended for sale or production
Other Goods Inventory
Work in Process Inventory
Finished Goods Inventory
ASSETS
CURRENT ASSETS
These refer to cost or other
Inventories appropriate value of merchandise
Agricultural Produce and other goods on hand, in-
Equipment for Lease transit, on consignment with other
Inventory entities and in process which are
intended for sale or production
Allowance for the Decline
in Value of Inventory
Biological Assets
ASSETS
CURRENT ASSETS
This account refers to any other
Other Current Assets assets which are expected to be
Input Tax realized, consumed or used within
Deposit to Suppliers the year. It also includes any other
current assets that are not
Unused Supplies assigned to cash and cash
Prepaid Expenses equivalents, and loans and
receivables.
ASSETS
NON-CURRENT ASSETS
Held-to-Maturity (HTM)
Financial Assets This account refers to equity
Available for Sale (AFS) instruments that do not have a
Financial Assets quoted market price in an active
Unquoted Debt Securities market, and whose fair value
Classified As Loans cannot be reliably measured, but
which shall be measured at cost
Investment in Non-Marketable
Equity Securities Share Capital contributed to
Investment in Federation and Union.
Subsidiaries/Associates and
Joint Ventures
ASSETS
NON-CURRENT ASSETS All tangible assets with
an estimated useful life beyond
Property and Equipment one year,
Land
Building and Improvements are used in the conduct of the
business,
Furniture, Fixtures &
Equipment (FFE) and not intended for sale in the
Machineries, Tools and ordinary course of business.
Equipment
Kitchen, Canteen & Catering Recorded at cost or fair value if
Equipment/ Utensils donated.
Transportation Equipment
ASSETS
NON-CURRENT ASSETS
This account refers to total
Property and Equipment amount of depreciation cost on
Accumulated Depreciation specific Properties and
Equipments that are set up
periodically and charged against
the current operations and
presented as contra asset
account.
ASSETS
NON-CURRENT ASSETS
Identifiable non-monetary asset
Intangible Assets without physical substance for
Franchise Cost which future economic benefits
Copyright are expected to flow back and
amortized over the estimated
Patent useful life or legal life whichever
is shorter.
ASSETS
NON-CURRENT ASSETS
Other Non-Current Assets This account refers to restricted
Computerization Cost funds set aside for funding of
Other Funds and Deposits Statutory and other reserves
such as Retirement, Members'
Due from Head Benefit and Other Funds. This
Office/Branch/Subsidiary may be in the form of time
Deposit on Returnable deposit or other securities which
Containers may be convertible to cash when
needed.
ASSETS
Current Assets
Economic Obligations that are
Non-Current Assets recognized and measured in
LIABILITIES conformity with generally accepted
Current Liabilities accounting principles taking into
consideration cooperatives' laws,
Non-Current Liabilities principles and practices in the
Equity Philippines.
Members’ Equity
Statutory Funds
Donation and Grants
LIABILITIES
CURRENT LIABILITIES Obligations reasonably
expected to be settled within
Saving Deposits the normal business
Time Deposits operating cycle, that: (a) is
Accounts Payable- Trade due within 12 months after
balance sheet date; (b) is held
Accounts Payable- Non Trade primarily for the purpose of
Loans Payable - Current being traded; (c) does not
SSS/ECC/ Philhealth / Pag- ibig have an unconditional right to
Premium Contributions Payable defer settlement of the
Withholding Tax Payable liability for at least 12 months
after balance sheet date.
Accrued Expenses
LIABILITIES
CURRENT LIABILITIES
This account refers to liability
Interest on Share Capital Payable to members for interest on
Patronage Refund Payable share capital, which can be
Due to Union/Federation (CETF) determined only at the end of
fiscal year
School Program Support Fund
Payable
Other Current Liabilities
LIABILITIES
CURRENT LIABILITIES
Interest on Share Capital Payable
Patronage Refund Payable This account refers to liability
Due to Union/Federation (CETF) to members for patronage
refund, which can be
School Program Support Fund determined only at the end of
Payable fiscal year.
Other Current Liabilities
LIABILITIES
CURRENT LIABILITIES
Interest on Share Capital Payable This account refers to the
Patronage Refund Payable accumulated amount set
Due to Union/Federation (CETF) aside to be credited to the
Union/Federation where the
School Program Support Fund cooperative is a member. This
Payable corresponds to the 50% of the
Other Current Liabilities total annual allocation for the
Education and Training Fund.
LIABILITIES
CURRENT LIABILITIES
Interest on Share Capital Payable This account refers to an
Patronage Refund Payable amount allocated as support
Due to Union/Federation (CETF) mechanism to school
program, which remains
School Program Support Fund unpaid. (applicable to public
Payable school - based cooperatives
Other Current Liabilities only) 20% of gross margin
LIABILITIES
NON-CURRENT LIABILITIES
The account refers to deferred
Revolving Capital Payable payment of interest on share
Retirement Fund Payable capital and patronage refund,
Project Subsidy Fund which should be agreed upon
in the General Assembly.
Members’ Benefit and Other Funds
Payable
Other Non Current Liabilities
LIABILITIES
NON-CURRENT LIABILITIES This account refers to the
unused portion of the
Revolving Capital Payable donation/grant for training,
Retirement Fund Payable salaries and wages, etc.
Project Subsidy Fund
Members’ Benefit and Other Funds
Payable
Other Non Current Liabilities
LIABILITIES
NON-CURRENT LIABILITIES This account refers to funds
for special purposes such as
Revolving Capital Payable member's benefits, including
Retirement Fund Payable Kilusang Bayan Guarantee
Project Subsidy Fund Fund (KBGF) / Cooperative
Guarantee Fund (CGF) not
Members’ Benefit and Other Funds part of the distribution of net
Payable surplus. Before RA 9520,
Other Non Current Liabilities KBGF/CGF is included in
statutory reserves hence any
existing amount should be
reclassified to this account.
ASSETS
Current Assets
Non-Current Assets
LIABILITIES
Current Liabilities This account refers to ownership
Interest of members in the
Non-Current Liabilities cooperative.
Equity
Members’ Equity
Statutory Funds
Donation and Grants
EQUITY
MEMBERS’ EQUITY
Authorized Share Capital – Common
Unissued Share Capital – Common
Subscribed Share Capital- Common
Subscription Receivable - Common
Paid-up Share Capital – Common
Treasury Shares Capital -Common
EQUITY
MEMBERS’ EQUITY
This account refers to
Authorized Share Capital – Common common shares bought back
Unissued Share Capital – Common and held in treasury. This
Subscribed Share Capital- Common account should only be used
in the event that there are no
Subscription Receivable - Common members who are willing to
Paid-up Share Capital – Common buy the shares of outgoing
Treasury Shares Capital -Common members.
EQUITY
MEMBERS’ EQUITY
Authorized Share Capital –
Preferred
Unissued Share Capital – Preferred
Subscribed Share Capital- Preferred
Subscription Receivable – Preferred
Paid-up Share Capital – Preferred
Treasury Shares Capital - Preferred
EQUITY This account refers to
MEMBERS’ EQUITY (1) amount paid by the members for
capital subscription equivalent to the
Deposit for Share Capital value of less than one share and
Subscription
Undivided Net Surplus (2) additional subscriptions in excess of
Net Loss authorized capital pending approval
of the amendments to increase
Authorized Share Capital.
(3) amount of share capital paid but not

yet covered by subscription contract.
Subsidiary ledgers shall be
maintained for this account. This
should include in the distribution of
interest on share capital.
EQUITY
DONATIONS / GRANTS This account refers to amounts received
by the cooperative as awards, subsidies,
DONATIONS / GRANTS grants, aids, and others.
This shall not be available for distribution

as interest on share capital and
patronage refund.
EQUITY This account refers to the amount set
STATUTORY FUNDS aside annually for the stability of the
cooperative (equivalent to at least 10% of
Reserve Fund net surplus).
Coop. Education &
Training Fund A corresponding fund should be set up
Community either in the form of time deposit with
Development Fund local banks or government securities. An
amount for the reserve fund which shall
Optional Fund be at least ten per centum (10%) of net
surplus: Provided, That, in the first five
(5) years of operation after registration,
this amount shall not be less than fifty
per centum (50%) of the net surplus.
(Article 86, RA 9520)
EQUITY
STATUTORY FUNDS
Reserve Fund This account refers to the amount
Coop. Education & retained by the cooperative for education
Training Fund and training of its members, officers and
Community staff out of the mandatory allocation as
Development Fund stipulated in the cooperative's by-laws.
This account represents half of the
Optional Fund allocated amount for CETF
EQUITY
STATUTORY FUNDS
This account refers to the fund set aside
Reserve Fund from the net surplus which should not be
Coop. Education & less than 3% for projects and/or activities
Training Fund that will benefit the community where
Community the cooperative operates. This is the
Development Fund application of the 7th coop principle
which is concern for the community
Optional Fund (Article 4, RA 9520)
EQUITY
STATUTORY FUNDS
Reserve Fund This account refers to fund set aside from
Coop. Education & the net surplus not exceeding 7%. It shall
Training Fund be used for any of the following
Community purposes: land and building, acquisition
Development Fund of equipment, members’ benefit, or
other purposes.
Optional Fund
ASSETS
Current Assets
182
Non-Current Assets
LIABILITIES
Current Liabilities
Non-Current Liabilities
Equity
Members’ Equity
Statutory Funds
Donation and Grants
Statement of Operations (Income Statement)
Account Title
REVENUES
Income from Credit Operations
Income from Service Operations
Income from Marketing/ Consumers/ Production Operations
Other Income
EXPENSES
Direct Cost
Cost of Goods Sold
Cost of Services
Operating Expenses (OPEX)
Financing Cost
Selling and Marketing Cost
Administrative Cost
REVENUES
Income from Credit Operations
All income derived from Credit
Interest Income from Loans Operations.
Service Fees
Filing Fees
Fines, Penalties, Surcharges
REVENUES
Income from Service Operations
All income derived from service
Service Income operations.
Interest Income from Lease
Agreement
REVENUES
Income from Marketing/ Consumers/
Production Operations To be used by consumer,
marketing and producers type of
Sales cooperatives
Installment Sales
Less: Sales Returns & Allowances
Less: Sales Discounts
Net Sales
REVENUES
Other Income
All income derived from
Income/ Interest from marketing / consumers /
Investment/ Deposits production operations
Membership Fee
Commission Income
Realized Gross Margin
Miscellaneous Income
Account Title
REVENUES
Income from Credit Operations
Income from Service Operations
Income from Marketing/ Consumers/ Production Operations
Other Income
EXPENSES
Direct Cost
Cost of Goods Sold
Cost of Services
Financing Cost
Administrative Cost
EXPENSES
Direct Cost
All Costs that are directly incurred
Cost of Goods Sold in generating sales revenue.
Purchases
Freight In
Direct Labor
Factory/Proces sing
Overhead
Less: Purchase Returns &
Allowances
Less: Purchase Discounts
Inventory Loss
EXPENSES
Direct Cost
All costs incurred that are directly
Cost of Services related to the generation of
Salaries & Wages power, water and other services
Employees' Benefits (A separate subsidiary shall be
maintained)
SSS, Philhealth, Pag-Ibig
Contribution
Power, Light and Water
Gas, Oil & Lubricants
Repairs and Maintenance
Depreciation
EXPENSES
Direct Cost
Transport Service Cost All costs incurred that are directly
Driver's /Conductor's Fees related to Service Income and
Vehicle Registration and Passenger's Fee.
Licensing Expenses
Toll Fees
Incidental Expenses
Repairs and Maintenance
Gas, Oil & Lubricants
Depreciation
Provision for Fortuitous
Events and Accidents
Account Title
REVENUES
Income from Service Operations
Income from Marketing/ Consumers/ Production Operations
Other Income
EXPENSES
Direct Cost
Cost of Goods Sold
Cost of Services
Financing Cost
Administrative Cost
EXPENSES
Operating Expenses
Financing Cost Expenses related to borrowings
Interest Expense on of funds used for operations.
Borrowings
Interest Expense on Deposits
Other Financing Charges
EXPENSES
Operating Expenses
Selling/ Marketing Cost Costs incurred in the
Product/ Service Marketing promotion/distribution and
and Promotion Expenses selling of products and services of
Salaries & Wages the cooperatives.
Incentives and Allowances
Employees Benefits
SSS, Philhealth, ECC, Pag-Ibig
Premium Contribution
Commission Expenses
Representation
EXPENSES
Operating Expenses
Expenses incurred
Administrative Cost related to general
Salaries & Wages administration and
Officers' Honorarium and Allowances management of the
cooperative/enterprise
Trainings/ Seminars
Collection Expense
Provision for Probable Losses on
Accounts/ Installment Receivables
General Assembly Expenses
Members Benefit Expenses
Social & Community Service Expense
Account Title
REVENUES
EXPENSES
Direct Cost
Cost of Services
Operating Expenses (OPEX)
Financing Cost
Selling and Marketing Cost
Administrative Cost
SURPLUS FROM OPERATIONS
Add/Deduct: Other Items – Subsidy/ Gain (Losses)
NET SURPLUS
OTHER ITEMS – SUBSIDY/ GAIN (LOSSES)

Special transactions
Donation and Grant Subsidy arising from the
Optional Fund Subsidy operations of the
Gains or Losses on Sale of Property & cooperatives.
Equipment
Prior Years' Adjustment
Account Title
REVENUES
EXPENSES
Direct Cost
Cost of Services
Operating Expenses (OPEX)
Financing Cost
Selling and Marketing Cost
Administrative Cost
SURPLUS FROM OPERATIONS
Add/Deduct: Other Items – Subsidy/ Gain (Losses)
NET SURPLUS

Accounting Cycle For Merchandise

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Accounting Cycle For Merchandise

Uploaded by

Copyright:

Available Formats

Basic Accounting for Non-Accountants

LO3: Apply the Standard Chart of Accounts to Respective

1. Audited Financial Statements

• for the purpose of expressing an opinion on

1. Statement of Financial Condition

I. Independent Auditor’s Report

 Audited Financial Statements

Account is a detailed record for each type

Portfolio At Risk (PAR)

 Refers to the total outstanding balance of

 Failure to receive payment one day after due

(3) amount of share capital paid but not

This shall not be available for distribution

OTHER ITEMS – SUBSIDY/ GAIN (LOSSES)

You might also like