Audit Report Final
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Account No. 101 102 103 104 104-A 105 106 107 108 109 110 111 201 202 202-A 203 203-A 204 204-A 205 205-A 301 1001 1002 1003 1004 1005 1006 1007 1008 2001
2002 2003 2004 2005 3001 3002 3003 3004 3005 4001 4002 4003 4004 4005 4006 4007 4008 4009 4010 4011 4012 4013 4014 4015 4016 4017 4018 4019
GRACE CORPORATION Working Trial Balance December 31, 2011 Account Name Cash in Bank Petty Cash Fund Marketable Securities Accounts Receivable Acounts Receivable - Others Allowance for Bad Debts Notes Receivable Merchandise Inventory Accrued Interest Receivable Prepaid Advertising Prepaid Insurance Unused Supplies Input Tax Land Building Accumulated Depreciation - Building Furniture and Fixture Accumulated Depreciation - Furniture and Fixture Transportation Equipment Accumulated Depreciation - Transportation Equipment Office Equipment Accumulated Depreciation - Office Equipment Organization Cost Accounts Payable Notes Payable Notes Payable - Non Trade Notes Payable - Officer SSS Medicare Premium Payable Withholding Taxes Payable HDMF Premiums Payable Accrued Interest Payable Output Tax Ordinary Share Capital
WP Ref C C D E E E E F E G G G P K K K K K K K K K M N O O O N N N N P T
Subscribed Ordinary Share Capital Subscription Receivable - Ordinary Share Capital Premium in Excess of Par Value - Ordinary Share Capital Retained Earnings Sales Sales Discount Sales Returns and Allowances Interest Income Purchase Discount Cost of Sales Salaries Expense Supplies Expense Taxes and Licenses SSS Premium Expense HDMF Premium Expense Gasoline Expense Light, Water & Telephone Depreciation Expense - Building Depreciation Expense - Furniture and Fixture Depreciation Expense - Transporation Equipment Depreciation Expense - Office Equipment Amortization of Organization Cost Bad Debts Expense Representation Expense Advertising Expense Insurance Expense Miscellaneous Expenses Interest Expense TOTAL
T T T T UA UA UA UB
VB VB VB VB VB VB VB VB VB VB VB VB VB VB VB VB VB VC
December 31, 2009 Debit
December 31, 2010
Credit
Debit
150,000 10,000 1,010,000 4,650,000 4,200,000
1,000,000 100,000 1,150,000 5,850,000 6,400,000
600,000 700,000
1,500,000 900,000
50,000 60,000 200,000 450,000 16,500,000 33,000,000
120,000 80,000 300,000 600,000 16,500,000 33,000,000
3,550,000
3,550,000
6,000,000
6,000,000
2,130,000
2,130,000
1,000,000
1,000,000 900,000 14,000,000 52,000 40,500 21,500 600,000 45,000,000
3,500,000 48,766,000 200,000 650,000
300,000 800,000 80,000
29,085,000 6,253,000 67,000 750,000 210,000 70,000 86,500 184,000
34,785,500 7,000,000 108,000 900,000 270,500 100,000 100,000 210,000
230,000 113,000 207,000 170,000 60,000 364,500
280,000 132,000 318,000 200,000 70,000 445,500
112,960,000
112,960,000
126,199,500
TB
ecember 31, 2010
December 31, 2011
Credit
Debit
Credit
4,709,230 1,700 9,500,000 10,318,635 497,811 2,970,000 4,402,787 38,853 50,000 50,000 300,000 1,556,422 16,500,000 53,000,000 650,000 3,550,000 355,000 6,000,000 1,200,000 2,130,000 426,000 800,000 906,500
5,124,090 3,506,500
21,000,000 62,000 52,500 29,500 1,000,000 45,000,000
1,700,000 144,720 129,600 63,200 66,565 2,470,332 70,000,000
5,000,000 2,625,000 3,500,000
5,250,000 4,481,456 112,152,313
54,539,000 866,435 1,041,475 110,000
248,853 4,520 56,646,887 24,022,840 1,411,862 910,000 1,270,500 1,100,000 1,146,000 1,223,000 650,000 355,000 1,200,000 426,000 200,000 497,811 120,000 820,520 550,000 397,938 112,065
126,199,500
213,470,960
Prepared by: ILW
Date: 1/8/2012
Reviewed by:
Date:
RIT
1/11/2012
213,470,960
GRACE CORPORATION Lead Schedule - Financial Assets December 31, 2011 Account No.
Account Name
WP Ref
103
Marketable Securities
D
TOTAL
ORATION
l Assets
2009 Debit 1,010,000 1,010,000
2010 Credit -
Debit 1,150,000 1,150,000
2010
2011 Credit -
Debit 9,500,000 9,500,000
Credit -
PAJE Debit
Audited Balance Credit 9,500,000 9,500,000
Prepared by:
Reviewed by:
D Difference 8,350,000 8,350,000
Date:
Date:
Percentage 726.09% 726.09%
GRACE CORPORATION
Lead Schedule - Trade and Other Receivables December 31, 2011
Account No.
104 0 104-A 105 107
Account Name
Accounts Receivable Acounts Receivable - Others Allowance for Bad Debts Notes Receivable Accrued Interest Receivable TOTAL
TION
r Receivables
WP Ref
E E E E E
2009 Debit 4,650,000.00 4,200,000 600,000 9,450,000
2010 Credit -
Debit 5,850,000.00 6,400,000 1,500,000 13,750,000
2010
2011 Credit -
Debit 10,318,635.00 2,970,000 38,853 13,327,488
Credit 497,811 497,811
PAJE Debit
Audited Balance Credit 10,318,635.00 (497,811) 2,970,000 38,853 12,829,677
Prepared by:
Reviewed by:
E Difference
4,468,635.00 (6,400,000) (497,811) 1,470,000 38,853 (920,323)
Date:
Date:
Percentage
76.39% -100.00% 0.00% 98.00% 0.00% -6.69%
GRACE CORPORATION
Lead Schedule - Cash and Cash Equivalents December 31, 2011 Account No. 101 102
Account Name Cash in Bank Petty Cash Fund TOTAL
WP Ref C C
PORATION
and Cash Equivalents
2009 Debit 150,000 10,000 160,000
2010 Credit -
Debit 1,000,000 100,000 1,100,000
2010
2011 Credit -
Debit 4,709,230 1,700 4,710,930
Credit -
PAJE Debit
Audited Balance Credit 4,709,230 1,700 4,710,930
Prepared by:
Reviewed by:
C Difference 3,709,230 (98,300) 3,610,930
Date:
Date:
Percentage 370.92% -98.30% 328.27%
GRACE CORPORATION Lead Schedule - Inventories December 31, 2011 Account No.
106
Account Name
Merchandise Inventory TOTAL
WP Ref
F
ORATION
2009 Debit 700,000 700,000
2010 Credit
Debit -
900,000 900,000
2010
2011 Credit -
Debit 4,402,787 4,402,787
Credit -
PAJE Debit
Audited Balance Credit 4,402,787 4,402,787
Prepared by:
Reviewed by:
F Difference
3,502,787 3,502,787
Date:
Date:
Percentage
389.20% 389.20%
GRACE CORPORATION
Lead Schedule - Prepayments and Other Current A December 31, 2011
Account No. 108 109 110
Account Name Prepaid Advertising Prepaid Insurance Unused Supplies TOTAL
WP Ref G G G
ORATION
ments and Other Current Assets
2009 Debit 50,000 60,000 200,000 310,000
2010 Credit
Debit -
120,000 80,000 300,000 500,000
2010
2011 Credit
Debit -
50,000 50,000 300,000 400,000
Credit -
PAJE Debit
Audited Balance Credit 50,000 50,000 300,000 400,000
Prepared by:
Reviewed by:
G Difference (70,000) (30,000) (100,000)
Date:
Date:
Percentage -58% -38% -20%
Account No. 201 202 202-A 203 203-A 204 204-A 205 205-A
GRACE CORPORATION
Lead Schedule - Property, Plant and Equioment December 31, 2011 Account Name Land Building Accumulated Depreciation - Building Furniture and Fixture Accumulated Depreciation - Furniture and Fixture Transportation Equipment Accumulated Depreciation - Transportation Equipment Office Equipment Accumulated Depreciation - Office Equipment TOTAL
WP Ref K K K K K K K K K
2009 Debit 16,500,000 33,000,000 3,550,000 6,000,000 2,130,000 61,180,000
2010 Credit -
Debit 16,500,000 33,000,000 3,550,000 6,000,000 2,130,000 61,180,000
2010
2011 Credit -
Debit 16,500,000 53,000,000 3,550,000 6,000,000 2,130,000 78,549,000
Credit 650,000 355,000 1,200,000 426,000
PAJE Debit
Audited Balance Credit 16,500,000 53,000,000 650,000 3,550,000 355,000 6,000,000 1,200,000 2,130,000 426,000 78,549,000
Prepared by:
Reviewed by:
K Difference 20,000,000 650,000 355,000 1,200,000 426,000 17,369,000
Date:
Date:
Percentage 61% 28%
GRACE CORPORATION Lead Schedule - Intangible Assets December 31, 2011
Account No.
301
Account Name
Organization Cost TOTAL
WP Ref M
PORATION
gible Assets
2009 Debit 1,000,000 1,000,000
2010 Credit -
Debit 1,000,000 1,000,000
2010
2011 Credit -
Debit 800,000 800,000
Credit -
PAJE Debit
Audited Balance Credit 800,000 800,000
Prepared by:
Reviewed by:
M Difference
(200,000) (200,000)
Date:
Date:
Percentage
-20% -20%
GRACE CORPORATION Lead Schedule - Trade and Other Payables December 31, 2011
Account No. 1001 1004 1005 1006 1007
Account Name Accounts Payable SSS Medicare Premium Payable Withholding Taxes Payable HDMF Premiums Payable Income Tax Payable Accrued Interest Payable TOTAL
WP Ref N N N N N N
RATION
r Payables
2009 Debit -
2010 Credit 900,000.00 52,000.00 40,500.00 21,500.00 1,014,000.00
Debit -
2010
2011 Credit 906,500.00 62,000.00 52,500.00 29,500.00 11,769,300.00 12,819,800.00
Debit -
Credit 5,124,090.00 144,720.00 129,600.00 63,200.00 22,223,916.00 66,565.00 27,752,091.00
PAJE Debit
Audited Balance Credit 5,124,090.00 144,720.00 129,600.00 63,200.00 66,565.00 5,528,175.00
Prepared by:
Reviewed by:
N Difference 4,217,590.00 82,720.00 77,100.00 33,700.00 66,565.00 (7,291,625.00)
Date:
Date:
Percentage 465% 133% 147% 114% 0% -57%
GRACE CORPORATION Lead Schedule - Notes Payable December 31, 2011 Account No. 1002 1002 1003
Account Name Notes Payable Notes Payable - Non Trade Notes Payable - Officer TOTAL
WP Ref O O O
ORATION
Payable
2009 Debit
2010 Credit
-
14,000,000 14,000,000
Debit -
2010
2011 Credit 21,000,000 21,000,000
Debit -
Credit 3,506,500 1,700,000 5,206,500
PAJE Debit
Audited Balance Credit 3,506,500 1,700,000 5,206,500
Prepared by:
Reviewed by:
O Difference 3,506,500 (21,000,000) 1,700,000 (15,793,500)
Date:
Date:
Percentage 0% -100% 0% -75%
GRACE CORP
Working Income Statement - Lead Schedule For the Years Ended December 31, 2009-2011 Account Name
Unadjusted Balance 2011 Balance 2010 Balance
Sales Cost of Sales Gross Profit
110,244,403 0 110,244,403
53,439,000 0 53,439,000
Operating Expenses Income from Operations
(36,301,471) 73,942,932
(9,688,500) 43,750,500
248,853 (112,065) 74,079,720 (22,223,916) 51,855,804
110,000 (445,500) 43,415,000 (13,024,500)
Other Income Finance Cost Taxable Income Income Tax (30%) Net Income
30,390,500
Prepared by: Reviewed by:
ad Schedule 1, 2009-2011
d Balance 2009 Balance 47,916,000 0 47,916,000 (8,400,500) 39,515,500 80,000 (364,500) 39,231,000 (11,769,300) 27,461,700
Date: Date:
GRACE CORPORATION Lead Schedule - VAT Payable December 31, 2011 Account No.
Account Name
WP Ref
2009 Debit
1008 111
Output Tax Input Tax TOTAL
P P
450,000 450,000
TION
2009
2010 Credit 600,000 600,000
Debit 600,000 600,000
Credit 1,000,000 1,000,000
2011 Debit 1,556,422 1,556,422
PAJE Credit 2,470,332 2,470,332
Debit
PAJE
Audited Balance
Difference
Credit 2,470,332 (1,556,422) 913,910
1,470,332 (1,556,422) (86,090)
Prepared by:
Date:
Reviewed by:
Date:
P Percentage 147.03% -259.40% -21.52%
Account No.
2001 2002 2003 2004
2005
GRACE CORPORATION Lead Schedule - Shareholders' Equity December 31, 2011
Account Name
Ordinary Share Capital Subscribed Ordinary Share Capital Subscription Receivable - Ordinary Share Capital Premium in Excess of Par Value - Ordinary Share Capital RE Composition Previous Balance Dividends Declared Net Income Other Comprehensive Income Retained Earnings TOTALS
WP Ref
T T T T
T
2009 Debit
2010 Credit
-
-
Debit
45,000,000 3,500,000
48,500,000
-
-
2010
2011 Credit
Debit
45,000,000 3,500,000
48,500,000
Credit
2,625,000 -
70,000,000 5,000,000 5,250,000
-
4,481,456
-
4,481,456 82,106,456
PAJE Debit
Audited Balance Credit 70,000,000 5,000,000 (2,625,000) 5,250,000
4,481,456 4,481,456 86,587,912
Prepared by:
Reviewed by:
T Difference
25,000,000 5,000,000 (2,625,000) 1,750,000
4,481,456 4,481,456 38,087,912
Date:
Date:
Percentage
55.56% 50.00%
#DIV/0! #DIV/0! 78.53%
GRACE CORPORATION Lead Schedule - Net Sales December 31, 2011 Account No.
Account Name
WP Ref
2009 Debit
3001 3002 3003
Sales Sales Discount Sales Returns and Allowances TOTAL
UA UA UA
200,000 650,000 850,000
2009
2010 Credit 48,766,000 48,766,000
Debit 300,000 800,000 1,100,000
2011 Credit 54,539,000 54,539,000
Debit 866,435 1,041,475 1,907,910
Credit 112,152,313 112,152,313
UA PAJE Debit
Audited Balance
Difference
Percentage
Credit 112,152,313 (866,435) (1,041,475) 110,244,403
57,613,313 566,435 241,475 56,805,403
Prepared by:
Date:
Reviewed by:
Date:
105.64% 188.81% 30.18% 106.30%
GRACE CORPORATION Lead Schedule - Other Income December 31, 2011 Account No.
Account Name
WP Ref
2009 Debit
3004
Interest Income TOTAL
UB
Credit -
80,000 80,000
2010 Debit
2011 Credit
-
110,000 110,000
Debit
PAJE Credit
-
248,853 248,853
Debit
UB PAJE
Audited Balance
Difference
Percentage
Credit 248,853 248,853
138,853 138,853
Prepared by:
Date:
Reviewed by:
Date:
126.23% 126.23%
GRACE CORPORATION Lead Schedule - Cost of Sales December 31, 2011
Account No.
4001 3005
Account Name
Cost of Sales Purchase Discount TOTAL
WP Ref
-
ORATION
2009 Debit 29,085,000 29,085,000
2010 Credit -
Debit 34,785,500 34,785,500
2010
2011 Credit -
Debit 56,646,887 56,642,367
Credit 4,520
PAJE Debit
Audited Balance Credit 56,646,887 4,520 56,642,367
Prepared by:
Reviewed by:
VA Difference
21,861,387 4,520 21,856,867
Date:
Date:
Percentage
63% 0% 63%
Account No. 4002 4003 4004 4005 4006 4007 4008 4009 4010 4011 4012 4013 4014 4015 4016 4017 4018
GRACE CORPORATION Lead Schedule - Operating Expenses December 31, 2011 Account Name Salaries Expense Supplies Expense Taxes and Licenses SSS Premium Expense HDMF Premium Expense Gasoline Expense Light, Water & Telephone Depreciation Expense - Building Depreciation Expense - Furniture and Fixture Depreciation Expense - Transporation Equipment Depreciation Expense - Office Equipment Amortization of Organization Cost Bad Debts Expense Representation Expense Advertising Expense Insurance Expense Miscellaneous Expenses TOTAL
WP Ref VB VB VB VB VB VB VB VB VB VB VB VB VB VB VB VB VB
2009 Debit 6,253,000 67,000 750,000 210,000 70,000 86,500 184,000 230,000 113,000 207,000 170,000 60,000 8,400,500
2010 Credit -
Debit 7,000,000 108,000 900,000 270,500 100,000 100,000 210,000 280,000 132,000 318,000 200,000 70,000 9,688,500
2010
2011 Credit -
Debit 24,022,840 1,411,862 910,000 1,270,500 1,100,000 1,146,000 1,223,000 650,000 355,000 1,200,000 426,000 200,000 497,811 120,000 820,520 550,000 397,938 36,301,471
Credit -
PAJE Debit
Audited Balance Credit 24,022,840 1,411,862 910,000 1,270,500 1,100,000 1,146,000 1,223,000 650,000 355,000 1,200,000 426,000 200,000 497,811 120,000 820,520 550,000 397,938 36,301,471
Prepared by:
Reviewed by:
VB Difference 17,022,840 1,303,862 10,000 1,000,000 1,000,000 1,046,000 1,013,000 650,000 355,000 1,200,000 426,000 200,000 217,811 (12,000) 502,520 350,000 327,938 26,612,971
Date:
Date:
Percentage 243.18% 1207.28% 1.11% 369.69% 1000.00% 1046.00% 482.38% 0.00% 0.00% 0.00% 0.00% 0.00% 77.79% -9.09% 158.03% 175.00% 468.48%
GRACE CORPORATION Lead Schedule - Finance Cost December 31, 2011 Account No. 4019
Account Name Interest Expense TOTAL
WP Ref VC
ORATION 2009 Debit 364,500 364,500
2010 Credit
Debit -
445,500 445,500
2010
2011 Credit
Debit -
Credit 112,065 112,065
-
PAJE Debit
Audited Balance Credit 112,065 112,065
Prepared by:
Reviewed by:
VC Difference (333,435) (333,435)
Date:
Date:
Percentage -74.85%
Work
ACCOUNT TITLE
ASSETS Current Assets Cash and Cash Equivalents Financial Assets Short- term Investments Trade and Other Receivables (net) Merchandise Inventory Prepayments TOTAL CURRENT ASSETS Non-current Assets Property, Plant and Equipment (net) Intangibles Assets TOTAL NONCURRENT ASSETS TOTAL ASSETS LIABILITIES AND EQUITY Current Liabilities Trade and Other Payables Notes Payable VAT Payable TOTAL CURRENT LIABILITIES TOTAL LIABILITIES Shareholder's Equity Share Capital Subscribed Share Capital Subscription Receivable Additional Paid-in Capital Retained Earnings TOTAL EQUITY
WP Ref
C D
TOTAL LIABILITIES AND EQUITY
GRACE CORPORATION
Working Statement of Financial Position- Le As of December 31, 2011, 2010, 20 Balances (Php) December 31, 2009
Balances (Php) December 31, 2010
160,000 1,010,000
1,100,000 1,150,000
9,450,000 700,000 200,000 11,520,000
13,750,000 900,000 300,000 17,200,000
61,180,000 1,000,000 62,180,000 73,700,000
61,180,000 1,000,000 62,180,000 79,380,000
1,014,000 14,000,000 150,000 15,164,000 15,164,000
12,819,800 21,000,000 400,000 34,219,800 34,219,800
45,000,000 -
45,000,000 -
15,164,000
34,219,800
ACE CORPORATION
nt of Financial Position- Lead Schedule ecember 31, 2011, 2010, 2009 Unadjusted (Php) December 31, 2011
Adjustments (Php) Debit
Credit
4,710,930 9,500,000
-
-
12,829,677 4,402,787 300,000 31,743,394
-
-
78,549,000 800,000 79,349,000 111,092,394
-
-
27,752,091 5,206,500 913,910 33,872,501 33,872,501
-
-
5,000,000 5,000,000
-
-
38,872,501
-
-
e
Adjusted (Php) 12/31/2011
4,710,930 9,500,000
Increase/Decrease (Php)
3,610,930 8,350,000
Percentage Change
328.27% 726.09%
12,829,677 4,402,787 300,000 31,743,394
(920,323) 3,502,787 14,543,394
-6.69% 389.20% 0.00%
78,549,000 800,000 79,349,000 111,092,394
17,369,000 (200,000) 17,169,000 31,712,394
28.39% -20.00%
5,528,175 5,206,500 913,910 11,648,585 11,648,585
(7,291,625) (15,793,500) (86,090) (23,171,215) (23,171,215)
-56.88% -75.21% -21.52%
25,000,000 5,000,000 (2,625,000) 4,481,456
0.00% 55.56% 0.00% 0.00% 0.00%
70,000,000 5,000,000 (2,625,000) 4,481,456
16,130,041
(18,689,759)
Prepared by:
Date:
Reviewed by:
Date:
GRACE CO
Working Cash Flow Statem December 31 2011 ACCOUNT TITLE OPERATING ACTIVITIES Net Income before Tax Adjustments to reconcile net income to net operating income before working capital changes Depreciation Amortization Bad Debts Expense Gain on Sale of Securities Unrealized Gain/Losses Loss on Obsolescence Interest Income Interest Expense Operating Income Before Capital Changes
Changes in Operating Assets and Liabilities (Increase) Decrease in Marketable Securities (Increase) Decrease in Trade and Other Payables (Increase) Decrease in Merchadise Inventory (Increase) Decrease in Prepaid Expenses Increase (Decrease) in Trade and Other Payables Increase (Decrease) in Income Tax Payable Cash Generated from Operations Accrued Expenses Paid Income Taxes Paid Net Cash (used) provided by Operating Activities INVESTING ACTIVITIES Acquisition of Property, Plant and Equipment Recognition of Amortization Cost as an Intangible Asset Sale of an Intangible Asset PCIB Time Deposit
Net Cash (used) provided by Investing Activities FINANCING ACTIVITIES Due to related party Payment of Notes Payable Increase in Notes Payable Subscription Receivable Issuance of Shares Dividends Payable Net Cash (used) provided by Financing Activities
NET CASH Add: Beginning Cash Balance CASH BALANCE: DEC 31
GRACE CORP
Cash Flow Statement - Lead Schedule ecember 31 2011, 2010, 2009 WP Ref
IS
Adjusted Balance 2009
0
Adjusted Balance 2010
(11,769,300)
Adjusted Balance 2011
(22,223,916)
rating income
les
les
VB VB VB UB UB VB UB VC
WBS WBS WBS WBS WBS WBS
es
ible Asset
WBS WBS
230,000
280,000
2,631,000 200,000 497,811
(80,000) 364,500 514,500
(110,000) 445,500 (11,153,800)
(248,853) 112,065 (19,031,893)
#VALUE! 0 0 0 0 0
#VALUE! 0 (9,450,000) (700,000) 0 14,000,000
(940,000) 0 (4,300,000) (200,000) 0 7,000,000
#VALUE!
#VALUE!
(17,471,893)
0 0 0
0 61,180,000 0
0 0 0
s
es
WBS WBS WBS WBS WBS WBS
0
61,180,000
0
0 0 0 0
0 1,014,000 0 0
11,805,800 0 0 0
0
1,014,000
11,805,800
#VALUE! 0 #VALUE!
#VALUE! 0 #VALUE!
(5,666,093) 0 (5,666,093)
Prepared by:
Date:
Reviewed by:
Date:
Adjusted Balance 2011
(22,223,916)
2,631,000 200,000 497,811
(248,853) 112,065 (19,031,893)
(940,000) 0 (4,300,000) (200,000) 0 7,000,000
(17,471,893)
0 0 0
0
11,805,800 0 0 0 11,805,800
(5,666,093) 0 (5,666,093)
GRACE CO
Proposed Adju For the Years Ended Date
Account Title
1
2011 31-Dec C-1
2
C-1
Accounts Receivable
3
C-1
Petty Cash
4
C-1
Cash Short and Over
5
Petty Cash
Cash in Bank Discount on Notes Payable
Notes Payable
6
Miscellaneous Expense
7
Cash in Bank Miscellaneous Expenses
8
Accounts Receivable
9
Accounts Receivable - Gwendo Reyes
10
Accounts Receivable - Sampollo Company
11
Accounts Receivable - J.R. Alano Trading
12
Accounts Receivable - Susan de Leon
13
Sales Output Tax
14
Cash
15
Accounts Receivable - Chad Acosta
16
Sales
17
Sales Output VAT
18
Accounts Receivable - Ida Company
19
Accounts Receivable - Benitez Merchandising
20
Cash
21
Accounts Receivable
22
Cash
23
Cash
24
Cash
25
Bad Debts Expense
26
27
28
29
GRACE CORPORATION Proposed Adjusted Journal Entries For the Years Ended December 31, 2009-2011 Account Title Petty Cash Accrued Expense Payable To record unreplenished expense.
WP Ref C N
Accounts Receivable Petty Cash Fund To record Advances or I.O.U.s to employees. Petty Cash Cash Short and Over To record cash overage Cash Short and Over Miscellaneous Income To reclassify cash overage to miscellaneous income. Cash in Bank Discount on Notes Payable To record proceeds of promissory note Miscellaneous Expense Cash in Bank To record bank service charge Cash in Bank Miscellaneous Expenses Notes Receivable To record collection of notes receivable Accounts Receivable Cash in Bank To reverse entry for the receipt of a postdated check.
C
VB
Accounts Receivable - Gwendo Reyes Advances from Customers To reclassify credit balances of Gwendo Reyes Accounts Receivable - Sampollo Company Accounts Receivable - J.R. Alano Trading To reclassify account balances erroneously recorded in wrong SL Accounts Receivable - J.R. Alano Trading Accounts Receivable - Sampollo Company To reclassify payments made by Sampollo OR #110 Accounts Receivable - Susan de Leon Accounts Receivable - Chad Acosta To reclassify account balances erroneously recorded in wrong SL Sales Output Tax Accounts Receivable - Susan de Leon To record overstatement of SI #1258
Accounts Receivable - Susan de Leon Advances from Customers To record payment made by Susan. OR #122 Accounts Receivable - Chad Acosta Accounts Receivable - Susan de Leon To reclassify payment made by Susan de Leon, OR #112 Sales Accounts Receivable - Anna Reyes To derecognize sales made to Anna due to lack of supporting documents Sales Output VAT Accounts Receivable - Benitez Merchandising To record overstatement of SI #1255 Accounts Receivable - Ida Company Sales Output tax To record understatement of SI #1256
Accounts Receivable - Benitez Merchandising Sales Output Tax To record SI #1266
Accounts Receivable - Benitez Merchandising To record payment by Benitez OR # 121 Accounts Receivable Sales To record sales to Louie Tan
Accounts Receivable To record payment made by Louie Tan OR #118 Cash Output Tax Sales To record the unrecorded Sales Invoice No. 1264
Output Tax Sales To record unrecorded Sales Invoice No. 1265 Bad Debts Expense Allowance for Bad Debts To record adjustments to Allowance for Bad Debts
ORATION
ournal Entries mber 31, 2009-2011 Debit
Credit
Posting Stat
800.00 800.00
2,800.00 2,800.00
1,704.00 1,704.00
1,704.00 1,704.00
7,900,000 2,100,000 10,000,000
2,500 2,500
490,000 10,000 500,000
85,113 85,113
50,000 50,000
730,350 730,350
580,350 580,350
681,000 681,000
1,364 136 1,500
204,475 202,975 1,500
681,000 681,000
300,000 300,000
68 7 75
10 9 1
232,000 210,909 21,091
93,750 93,750
484,000 484,000
484,000 484,000
165,550 15,050 150,500
186,250
16,932 169,318
2,306 2,306
GRACE CORPORATION Cash Count December 31, 2011
I. OBJECTIVES 1 2 3
To verify the existence of cash on hand and petty cash fund at year en To determine that cash on hand and petty cash fund are properly value To determine that cash on hand and petty cash fund of the client are r
1
Existence
II. ASSERTIONS
III. PROCEDURES 1 2 3 4 5 6
Performed surprise cash count Controlled all cash funds and negotiable instruments held by the clien Performed cash count in the presence of the Cash Custodian Listed each item in the fund showing the denominations of bills and co Obtained Cash Custodian's signature to acknowledge the return of item Reconciled items counted with general ledger balances
IV. FINDINGS
CASH DENOMINATION BILLS
₱ ₱ ₱ ₱ ₱
500 200 100 50 20
COINS
₱
10
₱ ₱ ₱
5 1 1
₱
0
TOTAL BILLS AND COINS CASH ITEMS Check for Deposits Date 12.28.2011 12.30.2011 12.30.2011 12.31.2011 12.31.2011
Maker Louie Tan Eagle Contractor Dynasty Construction Benitez Merchandising Susan de Leon
Unreplenished Vouchers Date 12.10.11 12.10.11 12.18.11 12.20.11 12.21.11 12.29.11
Payee Luigi's Deli Mobilshel Gasoline Station Mr. Jose Castro MWSS Bureau of Posts Mobilshel Gasoline Station
Advances or I.O.U.s Date 12.29.11 12.29.11
Payee Maricel Pastor
Jon Sandoval
Total Amount of Fund per Count Total Amount of Fund per Books or Receipts Petty Cash Fund per Ledger Undeposited Collections OVERAGE
I hereby certify that the above fund was counted in my presence by Rhena
______________
1 2 3 4 5
A check with OR # 119 is erroneously included as P165,560 in the cas
The list of checks for deposit included PNB Check #203 dated January The unreplenished vouchers are Petty Cash Voucher Nos. 0801-0806. The telephone bill to PLDT in the Petty Cash Book of P800 is not suppo Petty Cash Voucher Nos. 0807 and 0808 are Advances and I.O.U.s
Proposed Adjusting Journal Entries: Petty Cash Fund Accrued Expense Payable To correct entry made in recording telephone bill not supported b Accounts Receivable Petty Cash Fund To record Advances or I.O.U.s to employees. Petty Cash Fund Miscelleneous Income To record overage.
LEGEND: ∂
« ü
- Computations Verified - Footed - Checked Against General Ledger
V. CONCLUSIONS
The existence of the recorded cash and petty cash fund of the client had been
RATION
on hand and petty cash fund at year end and petty cash fund are properly valued. and petty cash fund of the client are reflected on the Statement of Financial Position at year end
egotiable instruments held by the client until all the funds have been counted esence of the Cash Custodian owing the denominations of bills and coins ature to acknowledge the return of items counted general ledger balances
CASH COUNT SHEET QUANTITY ₱ ₱ ₱ ₱ ₱
AMOUNT 1 1 2 3 5
₱ ₱ ₱ ₱ ₱
500 200 200 150 100
₱ ₱ ₱ ₱
9 20 50 20
₱ ₱ ₱ ₱
90 100 50 10
₱
40
₱
4
C-1.4 C-1.4 C-1.4 C-1.4 C-1.4
₱ ₱ ₱ ₱ ₱
484,000 165,550 186,250 93,750 204,475
C1.2 C1.2 C1.2 C1.2 C1.2 C1.2
₱ ₱ ₱ ₱ ₱ ₱
2,000 2,050 250 500 150 2,550
C-1.3 ₱ C-1.3 ₱
2,550 250
₱ ₱
10,000 1,134,025
Payee Grace Grace Grace Grace Grace
Corporation Corporation Corporation Corporation Corporation
Particulars Representation Expense Gasoline Taxi Fare Water Bill Stamps Gasoline
was counted in my presence by Rhenalyn I. Tarucan of WC & Co., on January 5, 2012 at 8:00 AM and the same w me intact. _______________________________________
Cashier
eously included as P165,560 in the cash count made by the client instead of P165,550.
cluded PNB Check #203 dated January 15, 2012 is a post-dated check and is not included in the cash count for t e Petty Cash Voucher Nos. 0801-0806. e Petty Cash Book of P800 is not supported by a Petty Cash Voucher. nd 0808 are Advances and I.O.U.s
₱
800
ecording telephone bill not supported by a PCV. 2,800
U.s to employees. 1,704
d petty cash fund of the client had been verified through the cash count sheet. Adjusting entries are recommend
C-1
t year end
TOTAL ∂ ∂ ∂ ∂ ∂
₱
1,150
«
∂ ∂ ∂ ∂ ∂
₱ ₱
254
«
1,404
« C4
₱
1,134,025
«
₱
7,500
«
₱
2,800
₱
1,145,729
₱ ₱
1,144,025 1,704
ü
8:00 AM and the same was returned to
«
ed in the cash count for the year-ended December 31, 2011.
₱
800
2,800
1,704
g entries are recommended.
Prepared by: RIT Reviewed by: LCC
Date: 2/6/2012 Date: 2/26/2012
CASH Cash account conducted before the start of business on January 5, 2012 at 8:00 AM yielded the following COINS Denominations P 10.00 5.00 1.00 0.50 0.10
Qty. 9 20 50 20 40
CHECKS Date 12.28.2011 12.30.2011 12.30.2011 12.31.2011 12.31.2011 01.03.2012
Number PCIB Check #2255 FEBTC Check #408 PNB Check #1122 PCIB Check #4425 FEBTC Check #775 PNB Check #203 (dated Jan. 15, 2012)
OR 118 119 120 121 122 123
UNUSED STAMPS 11 pieces @ P 5.50 Vouchers for unreplenished expenses and advances were available on this date and found in order.
C-1.1
uary 5, 2012 at 8:00 AM yielded the
CURENCY Denominations P
Qty. 1 1 2 3 5
500.00 200.00 100.00 50.00 20.00
Drawer Louie Tan Eagle Contractor Dynasty Construction Benitez Merchandising Susan de Leon Luli Samson
able on this date and found in order.
C1.4
C1.4
Amount 484,000.00 165,560.00 186,250.00 93,750.00 204,475.00 29,725.00
C1 C1 C1 C1 C1
PETTY CASH BOO PETTY CASH FUND DATE
PAYEE
EXPLANATION
PCV. NO.
RECEIPTS
PAYMENTS
2011 Dec.1 Balance 8 Luigi's Deli
10,000.00 Refreshment
0800
C1.3
2,000.00
Gasoline
0801
C1.3
2,050.00
15 PLDT
Telephone Bill
0802
18 Co. Messenger
Taxi Fare
0803
20 MWSS
Water Bill
0804
21 Bureau of Posts
Stamps Gasoline
10 Mobilshel Gasoline Station
800.00 250.00
0805
C1.3 C1.3 C1.3
0806
C1.3
2,550.00
500.00 150.00
29 Mobilshel Gasoline Station
10,000.00
8,300.00
C-1.2
TTY CASH BOOK DISTRIBUTION OF PAYMENTS REPRESENTATION
LIGHT, WATER & TELEPHONE
GASOLINE
SUNDRIES ACCOUNTS
AMOUNT
2,000.00 2,050.00 800.00 Transpostation Expense
250.00
Supplies - Office
150.00
500.00
2,000.00
###
2,550.00
1,300.00
4,600.00
400.00
PETTY CASH VOUCHER
LUIGI'S DELI
TO:
PARTICULARS
Representation Expense
APPROVED BY:
PAID BY:
__________________________
__________________________
PETTY CASH VOUCHER
MOBILSHEL GASOLINE STATION
TO:
PARTICULARS
Gasoline expense for delivery of merchandise to Benitez Merchandising
APPROVED BY:
PAID BY:
__________________________
__________________________
PETTY CASH VOUCHER TO:
MR. JOSE CASTRO PARTICULARS
Transportation expense taxi fare
APPROVED BY:
PAID BY:
__________________________
__________________________
PETTY CASH VOUCHER TO:
MANILA WATER WORKS & SEWERAGE SYSTEM (MWSS) PARTICULARS
Water Bill
APPROVED BY:
PAID BY:
__________________________
__________________________
PETTY CASH VOUCHER TO:
BUREAU OF POSTS PARTICULARS
Stamps
APPROVED BY:
PAID BY:
__________________________
__________________________
PETTY CASH VOUCHER
MOBILSHEL GASOLINE STATION
TO:
PARTICULARS
Gasoline expense premium gasoline
APPROVED BY:
PAID BY:
__________________________
__________________________
PETTY CASH VOUCHER
JON SANDOVAL
TO:
PARTICULARS
I.O.U.
APPROVED BY:
PAID BY:
__________________________
__________________________
PETTY CASH VOUCHER
MARICEL PASTOR
TO:
PARTICULARS
I.O.U.
APPROVED BY:
PAID BY:
__________________________
__________________________
C-1.3 NO.
DATE
December 10, 2011
AMOUNT
TOTAL
P
2,000.00
P
2,000.00 C1.2
RECEIVED BY:
_______________
_______________
0801
__________________________ NO.
DATE
0802
December 10, 2011
AMOUNT
TOTAL
P
2,050.00
P
2,050.00 C1.2
RECEIVED BY: __________________________ NO.
DATE
0803
December 18, 2011
AMOUNT
TOTAL
250.00
P
250.00 C1.2
RECEIVED BY:
_______________
__________________________
0804
NO.
DATE
December 20, 2011
AMOUNT
TOTAL
P
500.00
P
500.00 C1.2
RECEIVED BY:
_______________
_______________
P
__________________________
0805
NO.
DATE
December 21, 2011
AMOUNT
TOTAL
P
150.00
P
150.00 C1.2
RECEIVED BY: __________________________ NO.
DATE
0806
December 29, 2011
AMOUNT
TOTAL
P
2,550.00
P
2,550.00 C1.2
RECEIVED BY:
_______________
__________________________
0808
NO.
DATE
December 29, 2011
AMOUNT
TOTAL
P
250.00
P
250.00
RECEIVED BY:
_______________
__________________________ NO.
DATE
0807
December 29, 2011
AMOUNT
TOTAL
P
2,550.00
P
2,550.00
RECEIVED BY:
_______________
__________________________
Grace
OFFICIAL RECEIPT
CORPORATION
No.
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8
VAT 2011-002-148 | TIN 4004-009-175
Telefax: 632 843 7690 | Website: www.gracecorporatio
Received from:
Date:
Legarda Company
December 1,2011
The sum of:
Invoice no.
Two hundred twenty four thousand five hundred pesos only
1121
In settlement of: Invoice # 1121 Cash:
P
Checks: PNB 481853
P
224,500.00
Total
P
224,500.00
Received by: TOTAL
Grace
OFFICIAL RECEIPT
CORPORATION
No.
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8
VAT 2011-002-148 | TIN 4004-009-175
Telefax: 632 843 7690 | Website: www.gracecorporatio
Received from:
Date:
Susan de Leon
December 1,2011
The sum of:
Invoice no.
One million thirty eight thousand eight hundred pesos only In settlement of:
1125 less:
Invoice # 1125
discount
Cash:
P
Checks: RCBC 329864
P
1,038,800.00
Total
P
1,038,800.00
Received by: TOTAL
Grac e
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
Received from:
OFFICIAL RECEIPT
No.
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8
Telefax: 632 843 7690 | Website: www.gracecorporatio
Date:
e
Benitez Merchandising
December 5,2011
The sum of:
Invoice no.
Three hundred sixty two thousand six hundred pesos only In settlement of:
1125 discount
Invoice # 1135 Cash:
P
Checks: SBTC 928421
P
362,600.00
Total
P
362,600.00
Received by: TOTAL
Grac e
OFFICIAL RECEIPT
CORPORATION
No.
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8
VAT 2011-002-148 | TIN 4004-009-175
Telefax: 632 843 7690 | Website: www.gracecorporatio
Received from:
Date:
Johann Morales
December 8,2011
The sum of:
Invoice no.
Five hundred thousand pesos only
1133
In settlement of: Invoice # 1133 Cash:
P
Checks: PCIBank 4825
P
500,000.00
Total
P
500,000.00
Received by: TOTAL
Grace
OFFICIAL RECEIPT
CORPORATION
No.
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8
VAT 2011-002-148 | TIN 4004-009-175
Telefax: 632 843 7690 | Website: www.gracecorporatio
Received from:
Date:
Solomon Enterprises
December 8,2011
The sum of:
Invoice no.
Four hundred ninety thousand pesos only
1149
In settlement of:
less: returns
Invoice # 1149
discount
Cash:
P
Checks: CBC 123498
P
490,000.00
Total
P
490,000.00
Received by: TOTAL
Grace
OFFICIAL RECEIPT
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
Received from: Eagle Contractors The sum of: Two hundred forty one thousans eight hundred eighty eight pesos only
No.
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8
Telefax: 632 843 7690 | Website: www.gracecorporatio
Date: December 11,2011 Invoice no. 1251
In settlement of:
less: discount
Invoice # 1251 Cash:
P
Checks: RCBC 728465
P
241,888.00
Total
P
241,888.00
Received by: TOTAL
Grace
OFFICIAL RECEIPT
CORPORATION
No.
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8
VAT 2011-002-148 | TIN 4004-009-175
Telefax: 632 843 7690 | Website: www.gracecorporatio
Received from:
Date:
Ida Coronel
December 12,2011
The sum of:
Invoice no.
Five hundred twenty eight thousand pesos only
1152
In settlement of: Invoice # 1152 Cash:
P
Checks: BPI 249169
P
528,000.00
Total
P
528,000.00
Received by: TOTAL
Grace
OFFICIAL RECEIPT
CORPORATION
No.
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8
VAT 2011-002-148 | TIN 4004-009-175
Telefax: 632 843 7690 | Website: www.gracecorporatio
Received from:
Date:
Luli Samson
December 12,2011
The sum of:
Invoice no.
Eight hundred forty five thousand pesos only
1231
In settlement of: Invoice # 1231 Cash:
P
Checks: BPI 249169
P
845,000.00
Total
P
845,000.00
Received by: TOTAL
Grace
OFFICIAL RECEIPT
CORPORATION
No.
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8
VAT 2011-002-148 | TIN 4004-009-175
Telefax: 632 843 7690 | Website: www.gracecorporatio
Received from:
Date:
Valera Company
December 15,2011
The sum of:
Invoice no.
Four hundred ten thousand pesos only
1070
In settlement of: Invoice # 1070 Cash:
P
Checks: RCBC # 876521
P
410,000.00
Total
P
410,000.00
Received by: TOTAL
Grace
OFFICIAL RECEIPT
CORPORATION
No.
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8
VAT 2011-002-148 | TIN 4004-009-175
Telefax: 632 843 7690 | Website: www.gracecorporatio
Received from:
Date:
Sampollo Company
December 12,2011
The sum of:
Invoice no.
Fifty six thousand eight hundred seventy four pesos only In settlement of:
1253 less: discount
Invoice # 1253 Cash:
P 56, 874.00
Checks: P
Total
P
56,874.00
Received by: TOTAL
Grace CORPORATION
VAT 2011-002-148 | TIN 4004-009-175
Received from: Cora Tayag
OFFICIAL RECEIPT
No.
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8
Telefax: 632 843 7690 | Website: www.gracecorporatio
Date: December 17,2011
The sum of:
Invoice no.
Seven hundred fifty seven thousand five hundred pesos only
1100
In settlement of: Invoice # 1100 Cash:
P
Checks: PCIBank 246810
P
757,500.00
Total
P
757,500.00
Received by: TOTAL
Grace
OFFICIAL RECEIPT
CORPORATION
No.
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8
VAT 2011-002-148 | TIN 4004-009-175
Telefax: 632 843 7690 | Website: www.gracecorporatio
Received from:
Date:
Susan de Leon
December 1,2011
The sum of:
Invoice no.
Six hundred eighty one thousand pesos only
1242
In settlement of: Invoice # 1242 Cash:
P
Checks: RCBC 369125
P
681,000.00
Total
P
681,000.00
Received by: TOTAL
Grace
OFFICIAL RECEIPT
CORPORATION
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8
VAT 2011-002-148 | TIN 4004-009-175
Telefax: 632 843 7690 | Website: www.gracecorporatio
Received from:
Date:
Benitez Merchandising
December 20,2011
The sum of:
Invoice no.
Nine hundred eighty thousand pesos only
1254
In settlement of:
1255
Invoice # 1254, 1255 Cash:
No.
total P
less:
Checks:
returns
PCIBank 481265
P
980,000.00
Total
P
980,000.00
discounts
Received by: TOTAL
Grace
OFFICIAL RECEIPT
CORPORATION
No.
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8
VAT 2011-002-148 | TIN 4004-009-175
Telefax: 632 843 7690 | Website: www.gracecorporatio
Received from:
Date:
Building Blocks, Inc.
December 23,2011
The sum of:
Invoice no.
One hundred eighty seven thousand two hundred pesos only In settlement of:
1259 1260
Invoice # 1259, 1260 Cash:
P
Checks: PNB 510152
P
187,200.00
Total
P
187,200.00
Received by: TOTAL
Grace
OFFICIAL RECEIPT
CORPORATION
No.
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8
VAT 2011-002-148 | TIN 4004-009-175
Telefax: 632 843 7690 | Website: www.gracecorporatio
Received from:
Date:
Dynasty Construction The sum of:
Invoice no.
Four thousand six hundred twenty five pesos only
1252
In settlement of: Invoice # 1252 Cash:
P
4,625
Checks: P
Total
P
4,625.00
Received by: TOTAL
Grace CORPORATION
VAT 2011-002-148 | TIN 4004-009-175
Received from:
OFFICIAL RECEIPT
No.
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8
Telefax: 632 843 7690 | Website: www.gracecorporatio
Date:
M. Paredes
December 26,2011
The sum of:
Invoice no.
Two million six hundred twenty five thousand pesos only In settlement of:
Subscription Payment
Subscription Fee Cash:
P
Checks: RCBC 481216
P
2,625,000.00
Total
P
2,625,000.00
Received by: TOTAL
Grace
OFFICIAL RECEIPT
CORPORATION
No.
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8
VAT 2011-002-148 | TIN 4004-009-175
Telefax: 632 843 7690 | Website: www.gracecorporatio
Received from:
Date:
Luli Samson
December 26,2011
The sum of:
Invoice no.
Eighty five thousand one hundred thirteen pesos only In settlement of:
1257 less: discount
Invoice # 1257 Cash:
P
Checks:
Total
P
85,113.00
P
85,113.00
Received by: TOTAL
Grace
OFFICIAL RECEIPT
CORPORATION
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8
VAT 2011-002-148 | TIN 4004-009-175
Telefax: 632 843 7690 | Website: www.gracecorporatio
Received from:
Date:
Louie Tan
December 28,2011
The sum of:
Invoice no.
Four hundred eighty four thousand pesos only
1240
In settlement of: Invoice # 1240 Cash:
P
Checks: PCIB 2255
No.
P
484,000.00
Total
P
484,000.00
Received by: TOTAL
Grace
OFFICIAL RECEIPT
CORPORATION
No.
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8
VAT 2011-002-148 | TIN 4004-009-175
Telefax: 632 843 7690 | Website: www.gracecorporatio
Received from:
Date:
Eagle Contractos
December 30,2011
The sum of:
Invoice no.
One hundred sixty five thousand five hundred fifty pesos only
1264
In settlement of: Invoice # 1264 Cash:
P
Checks: FEBTC 408
P
165,550.00
Total
P
165,550.00
Received by: TOTAL
Grace
OFFICIAL RECEIPT
CORPORATION
No.
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8
VAT 2011-002-148 | TIN 4004-009-175
Telefax: 632 843 7690 | Website: www.gracecorporatio
Received from:
Date:
Dynasty Construction
December 30,2011
The sum of:
Invoice no.
One hundred eighty six thousand two hundred fifty pesos only
1265
In settlement of: Invoice # 1265 Cash:
P
Checks: PNB 1122
P
186,250.00
Total
P
186,250.00
Received by: TOTAL
Grace
OFFICIAL RECEIPT
CORPORATION
No.
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8
VAT 2011-002-148 | TIN 4004-009-175
Telefax: 632 843 7690 | Website: www.gracecorporatio
Received from:
Date:
Benitez Merchandising
December 31, 2011
The sum of:
Invoice no.
Ninety three thousand seven hundred fifty pesos only
1266
In settlement of: Cash:
P
Checks: PCIB 4425
P
93,750.00
Total
P
93,750.00
Received by: TOTAL
Grace
OFFICIAL RECEIPT
CORPORATION
No.
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8
VAT 2011-002-148 | TIN 4004-009-175
Telefax: 632 843 7690 | Website: www.gracecorporatio
Received from:
Date:
Susan de Leon
December 31, 2011
The sum of:
Invoice no.
Two hundred four thousand four hundred seventy five pesos only
1258
In settlement of: Cash:
P
Checks: FEBTC 775
P
204,475.00
Total
P
204,475.00
Received by: TOTAL
Grace CORPORATION
VAT 2011-002-148 | TIN 4004-009-175
Received from: Luli Samson
OFFICIAL RECEIPT
No.
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8
Telefax: 632 843 7690 | Website: www.gracecorporatio
Date: January 3,2005
The sum of:
Invoice no.
Twenty nine thousand seven hundred twenty five pesos only
1268
In settlement of: Invoice # 1268 Cash:
P
Checks: PCIB 2277
P
29,725.00
Total
P
29,725.00
Received by: TOTAL
C-1.4 101
Aquino Avenue, Paranaque City | Tel: 632 843 7689
2 843 7690 | Website: www.gracecorporation.biz.ph
ecember 1,2011 Amount 224,500.00
224,511.00
102
Aquino Avenue, Paranaque City | Tel: 632 843 7689
2 843 7690 | Website: www.gracecorporation.biz.ph
ecember 1,2011 Amount 1,600,000.00 (21,200.00)
1,578,800.00
103
Aquino Avenue, Paranaque City | Tel: 632 843 7689
2 843 7690 | Website: www.gracecorporation.biz.ph
ecember 5,2011 Amount 370,000.00 (7,400.00)
362,600.00
104
Aquino Avenue, Paranaque City | Tel: 632 843 7689
2 843 7690 | Website: www.gracecorporation.biz.ph
ecember 8,2011 Amount 500,000.00
500,000.00
105
Aquino Avenue, Paranaque City | Tel: 632 843 7689
2 843 7690 | Website: www.gracecorporation.biz.ph
ecember 8,2011 Amount 520,000.00 (20,000.00) (10,000.00)
490,000.00
106
Aquino Avenue, Paranaque City | Tel: 632 843 7689
2 843 7690 | Website: www.gracecorporation.biz.ph
ecember 11,2011 Amount 246,825.00
(4,937.00)
241,888.00
107
Aquino Avenue, Paranaque City | Tel: 632 843 7689
2 843 7690 | Website: www.gracecorporation.biz.ph
ecember 12,2011 Amount 528,000.00
528,000.00
108
Aquino Avenue, Paranaque City | Tel: 632 843 7689
2 843 7690 | Website: www.gracecorporation.biz.ph
ecember 12,2011 Amount 845,000.00
845,000.00
109
Aquino Avenue, Paranaque City | Tel: 632 843 7689
2 843 7690 | Website: www.gracecorporation.biz.ph
ecember 15,2011 Amount 410,000.00
410,000.00
110
Aquino Avenue, Paranaque City | Tel: 632 843 7689
2 843 7690 | Website: www.gracecorporation.biz.ph
ecember 12,2011 Amount 58,035.00 (1,161.00)
56,874.00
111
Aquino Avenue, Paranaque City | Tel: 632 843 7689
2 843 7690 | Website: www.gracecorporation.biz.ph
ecember 17,2011
Amount 757,500.00
757,500.00
112
Aquino Avenue, Paranaque City | Tel: 632 843 7689
2 843 7690 | Website: www.gracecorporation.biz.ph
ecember 1,2011 Amount 681,000.00
681,000.00
113
Aquino Avenue, Paranaque City | Tel: 632 843 7689
2 843 7690 | Website: www.gracecorporation.biz.ph
ecember 20,2011 Amount 711,950.00 309,525.00 1,021,475.00 (21,475.00) (20,000.00)
2,001,475.00
114
Aquino Avenue, Paranaque City | Tel: 632 843 7689
2 843 7690 | Website: www.gracecorporation.biz.ph
ecember 23,2011 Amount 75,805.00 111,395.00
187,200.00
115
Aquino Avenue, Paranaque City | Tel: 632 843 7689
2 843 7690 | Website: www.gracecorporation.biz.ph
Amount 4,625.00
4,625.00
116
Aquino Avenue, Paranaque City | Tel: 632 843 7689
2 843 7690 | Website: www.gracecorporation.biz.ph
ecember 26,2011 Amount 2,625,000.00
2,625,000.00
117
Aquino Avenue, Paranaque City | Tel: 632 843 7689
2 843 7690 | Website: www.gracecorporation.biz.ph
ecember 26,2011 Amount 86,850.00 (1,737.00)
85,113.00
118
Aquino Avenue, Paranaque City | Tel: 632 843 7689
2 843 7690 | Website: www.gracecorporation.biz.ph
ecember 28,2011 Amount 484,000.00
484,000.00
119
Aquino Avenue, Paranaque City | Tel: 632 843 7689
2 843 7690 | Website: www.gracecorporation.biz.ph
ecember 30,2011 Amount 165,550.00
165,550.00
120
Aquino Avenue, Paranaque City | Tel: 632 843 7689
2 843 7690 | Website: www.gracecorporation.biz.ph
ecember 30,2011 Amount 186,250.00
186,250.00
121
Aquino Avenue, Paranaque City | Tel: 632 843 7689
2 843 7690 | Website: www.gracecorporation.biz.ph
ecember 31, 2011 Amount 93,750.00
93,750.00
122
Aquino Avenue, Paranaque City | Tel: 632 843 7689
2 843 7690 | Website: www.gracecorporation.biz.ph
ecember 31, 2011 Amount 204,475.00
204,475.00
123
Aquino Avenue, Paranaque City | Tel: 632 843 7689
2 843 7690 | Website: www.gracecorporation.biz.ph
Amount 29,725.00
29,736.00
GRACE CORPORATION Bank Reconciliation December 31, 2011
I. OBJECTIVES 1 2 3
To ascertain that all the necessary reconciling items are taken into account To ascertain the accurary of the recorded cash in bank balance and the reconciling items in the books of the company To ascertain that all reconciling items are actually exisiting
1 2 3
Completeness Accuracy Existence
1 2 3 4
Agreed the amounts to the trial balance and/or general ledger and to supporting documentation. Tied the balances to the bank statement Clerically tested the totals and subtotals. Tested the accuracy and completeness of the reconciling items between the bank balance and the general ledger balance by:
II. ASSERTIONS
III. PROCEDURES
- Determined the disposition of individual reconciling items greater than the amount specified in the work step and any unusual rec
- Examined transactions occurring in the account subsequent to period end to determine that they were properly included or exclud reconciliation
- Determined significant transactions on the subsequent month bank statement that were dated prior to period end are included on - Examined whether receipts or disbursements are recorded on a timely basis by reviewing the appropriateness of reconciling items unusual items.
IV. FINDINGS Balance per Bank Statement
C-2.3
14,267,272
Total
3
Outstanding Checks
Adjusted balance
14,267,272
Balance per Book Note Collected by Bank Proceeds on Promissory Note
(1,255,655) ∂
Total
13,011,617
« Postdated Check Bank Service Charge Total Adjusted Balance
Proposed Adjusting Entries: Cash in Bank Discount on Notes Payable Notes Payable
7,900,000 2,100,000 10,000,000 To record proceeds of promissory note
Miscellaneous Expense Cash in Bank To record bank service charge
C-2.1 C-2.4 C-2.4
2,500 2,500
C-2.5 C-2.4
Cash in Bank Miscellaneous Expenses Notes Receivable To record collection of notes receivable
490,000 10,000
Accounts Receivable 85,113 Cash in Bank To reverse entry for the receipt of a postdated check.
500,000
85,113
LEGEND: 3 Traced to Cash Disbursements Book ∂ Computations Verified « Footed C Cash Lead Schedule ü Checked Against General Ledger
IV.CONCLUSION With the exceptions of the adjusting entries recommended by the auditor, sufficient and appropriate evidence were gathered to support the assertions made.
C-2
ger balance by:
p and any unusual reconciling items
erly included or excluded from the
d end are included on the reconciliation. ss of reconciling items and searching any
4,709,230 490,000 7,900,000 13,099,230
«
(85,113) (2,500) (87,613) « 13,011,617
« C
hered to support the
Prepared by: JGN Reviewed by: ILW
Date: 2/1/2012 Date: 2/5/2012
ACCOUNT
Cash in Bank
DATE
2011 Nov. 30 Balance Dec. 30 Balance
ITEM
F
DEBIT
P CR 12
1,000,000.00 10,018,100.00 4,709,230.00
C-2.3 ACCOUNT NO. DATE
ITEM
F
4709230 Dec. 31 C2
GJ 12
101 CREDIT
P
6,308,870.00
C-2.3 PCI Bank
STATEMENT OF ACCOUNT
ACCOUNT NO.:
NO. OF CHECKS
4486-9156-80
PAGE NO.:
18
1/1
DEPOSITS
BALANCE
NAME AND ADDRESS:
GRACE CORPORATION 12 Ninoy Aquino Avenue, Parañaque City CHECKS DATE
NO.
AMOUNT
2011 Dec. 1
2 6 6 9 10 13
13 16 17 23 23 23 23 28 29
P 12340 12342 12338 12344 12345 12348
P
100,000.00 123,500.00 200,000.00 143,000.00 300,000.00
12347 12350 12346
87,500.00 500,000.00 34,200.00 114,900.00 972,750.00
12351 12353
1,554,500.00 1,080,000.00
6
7
170,500.00 1,263,300.00 362,600.00 990,000.00
RT
769,888.00 500,000.00
CM
1,255,000.00 1,495,374.00
12355
13,250.00
12356 12354 12357 12359 12358 12360
83,300.00 625,000.00 5,000.00 125,315.00 32,500.00 25,000.00 2,500.00
2005 Jan. 5
P
12387 12349 12352 12365 12366 12362 12363 12367 12360
980,000.00 191,825.00
SC
7,900,000.00 2,625,000.00
CM
490,000.00
CM
6,122,215.00
18,993,487.00
34,200.00 175,000.00 14,000.00 85,000.00 249,750.00 13,325.00 85,000.00 97,000.00 70,000.00
85,113.00 929,550.00
204,475.00 29,725.00
1,396,000.00 1,466,500.00 1,343,000.00 2,406,300.00 2,263,300.00 2,325,900.00 3,315,900.00 3,228,400.00 3,498,288.00 3,964,088.00 3,849,188.00 2,876,438.00 2,876,438.00 2,576,938.00 1,496,938.00 2,992,312.00 2,992,312.00 2,979,062.00 3,959,062.00 4,067,587.00 3,442,587.00 11,337,587.00 13,837,272.00 13,804,772.00 13,779,772.00 14,267,272.00 C2
PCI Bank NAME AND ADDRESS:
GRACE CORPORATION 12 Ninoy Aquino Avenue, Paranaque City We have debited your Current Account No. 4486-9156-80 for service charges for December.
DEBIT MEMO
PCI Bank NAME AND ADDRESS:
GRACE CORPORATION 12 Ninoy Aquino Avenue, Paranaque City We have debited your Current Account No. 4486-9156-80 for return of PCIB check #4825 for P 500,000.00 drawn against insufficient funds
DEBIT MEMO
PCI Bank NAME AND ADDRESS:
GRACE CORPORATION 12 Ninoy Aquino Avenue, Paranaque City We have credited your Current Account No. 4486-9156-80 for collection of notes receivable P 500,000.00 proceeds.
CREDIT MEMO
PCI Bank NAME AND ADDRESS:
GRACE CORPORATION 12 Ninoy Aquino Avenue, Paranaque City We have credited your Current Account No. 4486-9156-80 for redeposit of PCIB check #4825 for P 500,000.00
CREDIT MEMO
PCI Bank NAME AND ADDRESS:
GRACE CORPORATION
12 Ninoy Aquino Avenue, Paranaque City We have credited your Current Account No. 4486-9156-80 proceeds of P 10,000,000.00 promissory note discounted at 12%
CREDIT MEMO
C-2.4
DATE:
December 29, 2011
P
2,500.00 C2
CA 4486-9156-80
ACCOUNT NO.:
DATE:
December 10, 2011
No. 4486-9156-80 500,000.00
P
ACCOUNT NO.:
500,000.00 C2
CA 4486-9156-80
DATE:
December 29, 2011
P
490,000.00 C2 E-5
CA 4486-9156-80
ACCOUNT NO.:
DATE:
December 13, 2011
P
500,000.00
CA 4486-9156-80
ACCOUNT NO.:
DATE:
December 28, 2011
P
ACCOUNT NO.:
7,900,000.00 C2
CA 4486-9156-80
Page B71
C-2.5 CURRENT ACCOUNT DEPOSIT SLIP For Cash Deposits and Regular Clearing only (On-Us and Other Bank's Checks)
PCI Bank
4 4 8 6
ACCOUNT NUMBER
9 1 5 6 DATE
ACCOUNT NUMBER
CURRENT ACCOUNT DEPOSIT SLIP For Cash Deposits and Regular Clearing only (On-Us and Other Bank's Checks)
PCI Bank
8 0
ACCOUNT NUMBER
28 December 2011
ACCOUNT NUMBER
4 4 8 6
GRACE CORPORATION TELLER'S VALIDATION:
THIS SERVES YOUR RECEIPT WHEN VALIDATED
THIS SERVES YOUR RECEIPT WHEN VALIDATED
THIS DEPOSIT IS SUBJECT TO THE TERMS AND CONDITION COVERING THE ACCOUNT
THIS DEPOSIT IS SUBJECT TO THE TERMS AND CONDITION COVERING THE ACCOUNT
NO. OF PIECES
PLEASE ENDORSE AND LIST EACH CHECK PROPERLY
DENOMINATION
LOCAL CLEARING CHECKS NAME OF BANK / BRANCH
CHECK NO.
RCBC
481216
P
500.00
AMOUNT
P
AMOUNT
P
1,000.00
2,625,000.00
200.00 100.00 50.00 20.00
P
CASH DEPOSIT PCI BANK CHECKS AND OTHER BANKS' CHECKS
TOTAL
P
REGIONAL CLEARING AND RPTW's AND PMO's
TOTAL
Page B71
2,625,000.00
CURRENT ACCOUNT DEPOSIT SLIP For Cash Deposits and Regular Clearing only (On-Us and Other Bank's Checks)
4 4 8 6
ACCOUNT NUMBER
DRAFT/CASHIER'S CHECK
9 1 5 6 DATE
ACCOUNT NUMBER
8 0
ACCOUNT NUMBER
28 December 2011
ACCOUNT NUMBER
P
4 4 8 6
85,113.00 C2
9 1 5 6 DATE
8 0
5 January 2012
GRACE CORPORATION TELLER'S VALIDATION:
THIS IS YOUR RECEIPT WHEN VALIDATED
Page B71
P
CURRENT ACCOUNT DEPOSIT SLIP For Cash Deposits and Regular Clearing only (On-Us and Other Bank's Checks)
PCI Bank
TELLER'S VALIDATION:
Page B72
AMOUNT
TOTAL DEPOSIT
GRACE CORPORATION
RECEIVED BY:
DENOMINATION
CHECK DEPOSIT
P
PCI Bank
PLEASE ENDORSE AND LIST EACH CHECK PROPERLY
P
TOTAL DEPOSIT
85,113.00
LOCAL CLEARING CHECKS
2,625,000.00
REGIONAL & INTERNATIONAL CLEARING CHECKS - PMO's / RPTW's
THIS IS YOUR RECEIPT WHEN VALIDATED RECEIVED BY:
THIS DEPOSIT IS SUBJECT TO THE TERMS AND CONDITIONS COVERING THE ACCOUNT
THIS DEPOSIT IS SUBJECT TO THE TERMS AND CONDITIONS COVERING THE ACCOUNT
MACHINE PRINT…………………………………………………………………….…………………………………….……
MACHINE PRINT…………………………………………………………………….…………………………………….……
PCI
PCI
12.28.04 DATE
P
TELLER NUMBER
2,625,000.00
RECEIPT NUMBER
PHILIPPINE CURRENCY
01.05.05 DATE
TELLER
P
TELLER NUMBER
85,113.00
RECEIPT NUMBER
PHILIPPINE CURRENCY
TELLER
CURRENT ACCOUNT DEPOSIT SLIP For Cash Deposits and Regular Clearing only (On-Us and Other Bank's Checks)
PCI Bank
4 4 8 6
ACCOUNT NUMBER
9 1 5 6 DATE
ACCOUNT NUMBER
CURRENT ACCOUNT DEPOSIT SLIP For Cash Deposits and Regular Clearing only (On-Us and Other Bank's Checks)
PCI Bank
8 0
ACCOUNT NUMBER
23 December 2011
ACCOUNT NUMBER
4 4 8 6
9 1 5 6 DATE
GRACE CORPORATION
8 0
23 December 2011
GRACE CORPORATION
TELLER'S VALIDATION:
TELLER'S VALIDATION:
THIS SERVES YOUR RECEIPT WHEN VALIDATED
THIS SERVES YOUR RECEIPT WHEN VALIDATED
THIS DEPOSIT IS SUBJECT TO THE TERMS AND CONDITION COVERING THE ACCOUNT
THIS DEPOSIT IS SUBJECT TO THE TERMS AND CONDITION COVERING THE ACCOUNT
NO. OF PIECES
PLEASE ENDORSE AND LIST EACH CHECK PROPERLY
DENOMINATION
LOCAL CLEARING CHECKS
Page B72
8 0
5 January 2012
GRACE CORPORATION
TELLER'S VALIDATION:
Page B71
9 1 5 6 DATE
NAME OF BANK / BRANCH
CHECK NO.
PCIB
481265
P
500.00
AMOUNT
P
AMOUNT
P
1,000.00
980,000.00
200.00 100.00 50.00 20.00
P
CASH DEPOSIT PCI BANK CHECKS AND OTHER BANKS' CHECKS
TOTAL
P
980,000.00
REGIONAL & INTERNATIONAL CLEARING CHECKS - PMO's / RPTW's
PLEASE ENDORSE AND LIST EACH CHECK PROPERLY
CHECK / DRAFT
PNB
TOTAL
REGIONAL CLEARING AND RPTW's AND PMO's
Page B72
TOTAL DEPOSIT
PCI Bank
P P
-
980,000.00
CURRENT ACCOUNT DEPOSIT SLIP For Cash Deposits and Regular Clearing
4,625.00
LOCAL CLEARING CHECKS DENOMINATION
AMOUNT
510152
CHECK DEPOSIT
TOTAL DEPOSIT
PCI Bank
P
187,200.00
P
187,200.00
P
191,825.00
CURRENT ACCOUNT DEPOSIT SLIP For Cash Deposits and Regular Clearing
Page B72
PCI Bank
PCI Bank
only (On-Us and Other Bank's Checks)
4 4 8 6
ACCOUNT NUMBER
9 1 5 6 DATE
ACCOUNT NUMBER
8 0
ACCOUNT NUMBER
23 December 2011
ACCOUNT NUMBER
only (On-Us and Other Bank's Checks)
4 4 8 6
GRACE CORPORATION
Page B72 Page B73
23 December 2011
TELLER'S VALIDATION:
THIS IS YOUR RECEIPT WHEN VALIDATED
THIS IS YOUR RECEIPT WHEN VALIDATED RECEIVED BY:
THIS DEPOSIT IS SUBJECT TO THE TERMS AND CONDITIONS COVERING THE ACCOUNT
THIS DEPOSIT IS SUBJECT TO THE TERMS AND CONDITIONS COVERING THE ACCOUNT
MACHINE PRINT…………………………………………………………………….…………………………………….……
MACHINE PRINT…………………………………………………………………….…………………………………….……
PCI
PCI
12.23.04 DATE
P
TELLER NUMBER
980,000.00
RECEIPT NUMBER
PHILIPPINE CURRENCY
12.23.04 DATE
TELLER
P
TELLER NUMBER
191,825.00
RECEIPT NUMBER
PHILIPPINE CURRENCY
TELLER
CURRENT ACCOUNT DEPOSIT SLIP For Cash Deposits and Regular Clearing only (On-Us and Other Bank's Checks)
PCI Bank
4 4 8 6
ACCOUNT NUMBER
9 1 5 6 DATE
ACCOUNT NUMBER
CURRENT ACCOUNT DEPOSIT SLIP For Cash Deposits and Regular Clearing only (On-Us and Other Bank's Checks)
PCI Bank
8 0
ACCOUNT NUMBER
16 December 2011
ACCOUNT NUMBER
4 4 8 6
9 1 5 6 DATE
GRACE CORPORATION
8 0
23 December 2011
GRACE CORPORATION
TELLER'S VALIDATION:
TELLER'S VALIDATION:
THIS SERVES YOUR RECEIPT WHEN VALIDATED
THIS SERVES YOUR RECEIPT WHEN VALIDATED
THIS DEPOSIT IS SUBJECT TO THE TERMS AND CONDITION COVERING THE ACCOUNT
THIS DEPOSIT IS SUBJECT TO THE TERMS AND CONDITION COVERING THE ACCOUNT
NO. OF PIECES
PLEASE ENDORSE AND LIST EACH CHECK PROPERLY
DENOMINATION
LOCAL CLEARING CHECKS
Page B73
8 0
GRACE CORPORATION
TELLER'S VALIDATION:
RECEIVED BY:
9 1 5 6 DATE
NAME OF BANK / BRANCH
P
CHECK NO.
BPI RCBC
500.00
AMOUNT
249169 876521
P
AMOUNT
P
1,000.00
845,000.00 410,000.00
200.00 100.00 50.00 20.00
P
CASH DEPOSIT PCI BANK CHECKS AND OTHER BANKS' CHECKS
TOTAL
P
PLEASE ENDORSE AND LIST EACH CHECK PROPERLY
REGIONAL & INTERNATIONAL CLEARING CHECKS - PMO's / RPTW's
CHECK / DRAFT
DENOMINATION
RCBC PCIB REGIONAL CLEARING AND RPTW's AND PMO's
TOTAL
P
Page B73
4 4 8 6
9 1 5 6 DATE
ACCOUNT NUMBER
8 0
ACCOUNT NUMBER
16 December 2011
ACCOUNT NUMBER
4 4 8 6
Page B73 Page B74
1,438,500.00
P
1,495,374.00
8 0
23 December 2011
GRACE CORPORATION TELLER'S VALIDATION:
THIS IS YOUR RECEIPT WHEN VALIDATED RECEIVED BY:
THIS DEPOSIT IS SUBJECT TO THE TERMS AND CONDITIONS COVERING THE ACCOUNT
THIS DEPOSIT IS SUBJECT TO THE TERMS AND CONDITIONS COVERING THE ACCOUNT
MACHINE PRINT…………………………………………………………………….…………………………………….……
MACHINE PRINT…………………………………………………………………….…………………………………….……
PCI
PCI
12.16.04 DATE
P
TELLER NUMBER
1,255,000.00
RECEIPT NUMBER
PHILIPPINE CURRENCY
12.23.04 DATE
TELLER
P
TELLER NUMBER
1,495,374.00
RECEIPT NUMBER
PHILIPPINE CURRENCY
TELLER
CURRENT ACCOUNT DEPOSIT SLIP For Cash Deposits and Regular Clearing only (On-Us and Other Bank's Checks)
PCI Bank
4 4 8 6
9 1 5 6 DATE
ACCOUNT NUMBER
CURRENT ACCOUNT DEPOSIT SLIP For Cash Deposits and Regular Clearing only (On-Us and Other Bank's Checks)
PCI Bank
8 0
ACCOUNT NUMBER
4 4 8 6
9 December 2011
9 1 5 6 DATE
ACCOUNT NUMBER
GRACE CORPORATION
13 December 2011
TELLER'S VALIDATION:
THIS SERVES YOUR RECEIPT WHEN VALIDATED
THIS SERVES YOUR RECEIPT WHEN VALIDATED
THIS DEPOSIT IS SUBJECT TO THE TERMS AND CONDITION COVERING THE ACCOUNT
THIS DEPOSIT IS SUBJECT TO THE TERMS AND CONDITION COVERING THE ACCOUNT
PLEASE ENDORSE AND LIST EACH CHECK PROPERLY
PLEASE ENDORSE AND LIST EACH CHECK PROPERLY
LOCAL CLEARING CHECKS NAME OF BANK / BRANCH
8 0
GRACE CORPORATION
TELLER'S VALIDATION:
Page B74
P
9 1 5 6 DATE
THIS IS YOUR RECEIPT WHEN VALIDATED
PCIB CBC
681,000.00 757,500.00
CURRENT ACCOUNT DEPOSIT SLIP For Cash Deposits and Regular Clearing only (On-Us and Other Bank's Checks)
PCI Bank
GRACE CORPORATION
ACCOUNT NUMBER
P
CHECK DEPOSIT
TELLER'S VALIDATION:
RECEIVED BY:
AMOUNT
369125 246810
TOTAL DEPOSIT
CURRENT ACCOUNT DEPOSIT SLIP For Cash Deposits and Regular Clearing only (On-Us and Other Bank's Checks)
PCI Bank ACCOUNT NUMBER
-
1,255,000.00
P
TOTAL DEPOSIT
56,874.00
LOCAL CLEARING CHECKS
1,255,000.00
LOCAL CLEARING CHECKS
CHECK NO.
4825 123498
AMOUNT
P
500,000.00 490,000.00
NAME OF BANK / BRANCH
C2
BPI RCBC
CHECK NO.
249169 728465
AMOUNT
P
528,000.00 241,888.00
Page B74
PCI BANK CHECKS AND OTHER BANKS' CHECKS
TOTAL
P
990,000.00
REGIONAL CLEARING AND RPTW's AND PMO's
TOTAL
Page B74
990,000.00
CURRENT ACCOUNT DEPOSIT SLIP For Cash Deposits and Regular Clearing only (On-Us and Other Bank's Checks)
PCI Bank
4 4 8 6
ACCOUNT NUMBER
-
P
9 1 5 6 DATE
ACCOUNT NUMBER
REGIONAL CLEARING AND RPTW's AND PMO's
TOTAL
8 0
CURRENT ACCOUNT DEPOSIT SLIP For Cash Deposits and Regular Clearing only (On-Us and Other Bank's Checks)
9 December 2011
4 4 8 6
ACCOUNT NUMBER
Page B74 Page B75
THIS IS YOUR RECEIPT WHEN VALIDATED RECEIVED BY:
AND CONDITIONS COVERING THE ACCOUNT
THIS DEPOSIT IS SUBJECT TO THE TERMS AND CONDITIONS COVERING THE ACCOUNT
MACHINE PRINT…………………………………………………………………….…………………………………….……
MACHINE PRINT…………………………………………………………………….…………………………………….……
PCI
PCI
12.09.04
P
TELLER NUMBER
990,000.00
RECEIPT NUMBER
PHILIPPINE CURRENCY
12.13.04 DATE
TELLER
CURRENT ACCOUNT DEPOSIT SLIP For Cash Deposits and Regular Clearing only (On-Us and Other Bank's Checks)
PCI Bank
769,888.00
RECEIPT NUMBER
PHILIPPINE CURRENCY
4 4 8 6
9 1 5 6 DATE
CURRENT ACCOUNT DEPOSIT SLIP For Cash Deposits and Regular Clearing only (On-Us and Other Bank's Checks)
PCI Bank
8 0
6 December 2011
4 4 8 6
ACCOUNT NUMBER
9 1 5 6 DATE
ACCOUNT NUMBER
GRACE CORPORATION
2 December 2011
TELLER'S VALIDATION:
THIS SERVES YOUR RECEIPT WHEN VALIDATED
THIS SERVES YOUR RECEIPT WHEN VALIDATED
THIS DEPOSIT IS SUBJECT TO THE TERMS AND CONDITION COVERING THE ACCOUNT
THIS DEPOSIT IS SUBJECT TO THE TERMS AND CONDITION COVERING THE ACCOUNT
PLEASE ENDORSE AND LIST EACH CHECK PROPERLY
PLEASE ENDORSE AND LIST EACH CHECK PROPERLY
LOCAL CLEARING CHECKS NAME OF BANK / BRANCH
LOCAL CLEARING CHECKS
CHECK NO.
SBTC
AMOUNT
928421
P
PCI BANK CHECKS AND OTHER BANKS' CHECKS
TOTAL
NAME OF BANK / BRANCH
362,600.00
P
REGIONAL CLEARING AND RPTW's AND PMO's
362,600.00
TOTAL DEPOSIT
-
362,600.00
CURRENT ACCOUNT DEPOSIT SLIP For Cash Deposits and Regular Clearing only (On-Us and Other Bank's Checks)
PCI Bank
4 4 8 6
9 1 5 6 DATE
ACCOUNT NUMBER
AMOUNT
481853 329864
P
PCI BANK CHECKS AND OTHER BANKS' CHECKS
TOTAL
P
224,500.00 1,038,800.00
1,263,300.00
REGIONAL & INTERNATIONAL CLEARING CHECKS - PMO's / RPTW's
P P
CHECK NO.
PNB RCBC
REGIONAL & INTERNATIONAL CLEARING CHECKS - PMO's / RPTW's
TOTAL
8 0
GRACE CORPORATION
TELLER'S VALIDATION:
Page B75
P
TELLER NUMBER
TELLER
ACCOUNT NUMBER
Page B75
13 December 2011
GRACE CORPORATION
THIS DEPOSIT IS SUBJECT TO THE TERMS
ACCOUNT NUMBER
REGIONAL CLEARING AND RPTW's AND PMO's
TOTAL
8 0
6 December 2011
P P
TOTAL DEPOSIT
ACCOUNT NUMBER
-
1,263,300.00
CURRENT ACCOUNT DEPOSIT SLIP For Cash Deposits and Regular Clearing only (On-Us and Other Bank's Checks)
PCI Bank
4 4 8 6
9 1 5 6 DATE
ACCOUNT NUMBER
GRACE CORPORATION
8 0
2 December 2011
GRACE CORPORATION
TELLER'S VALIDATION:
TELLER'S VALIDATION:
THIS IS YOUR RECEIPT WHEN VALIDATED
Page B75
8 0
TELLER'S VALIDATION:
DATE
THIS IS YOUR RECEIPT WHEN VALIDATED RECEIVED BY:
THIS DEPOSIT IS SUBJECT TO THE TERMS AND CONDITIONS COVERING THE ACCOUNT
THIS DEPOSIT IS SUBJECT TO THE TERMS AND CONDITIONS COVERING THE ACCOUNT
MACHINE PRINT…………………………………………………………………….…………………………………….……
MACHINE PRINT…………………………………………………………………….…………………………………….……
PCI
PCI
12.06.04 DATE
TELLER
9 1 5 6 DATE
ACCOUNT NUMBER
THIS IS YOUR RECEIPT WHEN VALIDATED
RECEIVED BY:
-
769,888.00
P
PCI Bank
TELLER'S VALIDATION:
ACCOUNT NUMBER
769,888.00
P
TOTAL DEPOSIT
GRACE CORPORATION
RECEIVED BY:
P
REGIONAL & INTERNATIONAL CLEARING CHECKS - PMO's / RPTW's
P
TOTAL DEPOSIT
PCI BANK CHECKS AND OTHER BANKS' CHECKS
TOTAL
REGIONAL & INTERNATIONAL CLEARING CHECKS - PMO's / RPTW's
TELLER NUMBER
P RECEIPT NUMBER
362,600.00 PHILIPPINE CURRENCY
12.02.04 DATE
TELLER
TELLER NUMBER
P RECEIPT NUMBER
1,263,300.00 PHILIPPINE CURRENCY
GRACE CORPORATION Bank Reconcilliation November 30, 2011 Balance per Bank Add Undeposited Collection
Less Outstanding Checks Date 11/28/2011 11/29/2011 11/25/2011 Balance per Ledger
Check # 12340 12342 12344
P
Amount 100,000.00 C2.3 123,500.00 C2.3 143,000.00 C2.3
C-2.6 P
1,396,000.00 170,500.00
566,500.00 P
1,000,000.00
GRACE CORPORATION Bank Confirmation December 31, 2011
I. OBJECTIVES 1 2 3
To determine whether cash in bank exists at year-end and cash-related transactions occur within the y To determine that all cash balances of the client are reflected on the balance sheet at year-end. To determine that cash balances are available for sure without restrictions, if with restrictions, determine if it is properly indicated in the balance sheet.
1 2
Existence Rights and Obligations
II. ASSERTIONS
III. PROCEDURES 1 2 3
IV. FINDINGS
Send bank confirmation request to PCI bank where the client has an account. Obtain the reply from PCI bank. Reconcile the reply from the bank with bank reconciliation and the bank statement.
V. CONCLUSIONS No exceptions noted.
occur within the year. at year-end. estrictions,
C-3
Prepared by: LCTC Reviewed by:
Date: 2/4/2012 Date:
ILW
2/5/2012
Re:
1. We hereby report that at the close of business on
DECEMBER 31, 2011 our records showed the following balances to the
CREDIT
of the abovementioned client: AMOUNT
DESCRIPTION
INTEREST
ACCOUNT NUMBER
14,267,272 Regular Checking Acct.
RATE (P.A.)
PAID UP TO
775
Regular Checking Acct. Savings Acct.
1 year%
6,500,000 Time Deposits
18%
2. Direct liabilities, assets and related balances of said clients as at the
5. Other accounts with the bank on that date were:
date above mentioned date were as follows: (attached details by LC)
(details attached)*
a) b) c) d)
AMOUNT
ACCOUNT
maturity
PESO
FOREIGN CURRENCY
Acceptance Drafts
Securities held for safekeeping Items held for collection Trust accounts Others (specify)
Trust Receipts Marginal Deposits Special Time Deposits Import Letters of Credit Domestic Letters of Credit 3. We further report that the acove-mentioned client was directly liable to us by way of overdrafts, loans, etc. at the close of business on that date as follows: AMOUNT
DESCRIPTION OF LIABILITY
10,000,000 Loans Other (Specify)
DATE GRANTED
DUE DATE
2011
2012
12.28
12.28
INTEREST RATE (P.A.)
21%
C-3.1 Grace Corporation
ST
RESTRICTION ON WITHDRAWAL OF AMOUNT AND OTHER REMARKS
PAID UP TO
1 year% maturity
Due Date: June 30, 2012
>C3
h the bank on that date were:
s held for safekeeping d for collection
INTEREST PAID UP TO
DESCRIPTION OF COLLATERALS, LIENS, ENDORSERS, ETC. OTHER REMARKS
2012 12.28
Land
>C3
GRACE CORPORATION Analytical Procedures December 31, 2011
I. OBJECTIVES 1
To be able to evaluate the fluctuations or unusual changes on the balance of cash and cash equivalent account.
2 3
To ensure cash at bank stated on the reconciliation is accurate. To assess whether amounts and other data relating to recorded transactions and events have been recorded appropriately.
1
Accuracy
1 2
Compared the difference between the audited balance of cash of the current year from the audited balance of the preceding year (Balance of 2010 from 2009 and Balance of 2011 from 2010). The differences on the account balances where expressed in percentage by diving the variance from the prior balance of an account.
3
Journal entries of transactions and supporting documents related to cash such as petty cash voucher and bank reconcillation were reviewed
II. ASSERTIONS
III. PROCEDURES
account balances to evaluate the differences on the
IV. FINDINGS Cash This account consists of:
2010
Percentage
2011
Cash in Bank Petty Cash Total
1,000,000
1201.16%
C2
13,011,617
100,000
-98.96%
C1
1,040
1,102,010
1081%
13,014,668
The significant increase in the total cash balance from 2010 to 2011 was primarily caused by the proceeds the company received from its borrowing.
V. CONCLUSION No exceptions noted. Sufficient and appropriate evidence were gathered to support the assertions made. Prepared by: MZB Reviewed by: ILW
C-4
Date: 2/1/2012 Date: 2/5/2012
GRACE CORPORATION Accounts Receivable General and Subsidiary Ledger Reconciliation December 31, 2011
I. OBJECTIVES 1 2 3
To ascertain that all transactions affecting accounts receivable are recorded To ascertain the accuracy of recording of accounts receivable transactions To ascertain that accounts receivable transactions are actually existing
1 2 3
Completeness Accuracy Existence
1 2 3 4 5 6 7 8 9
Obtained the Accounts Receivable Schedule from the client Reconciled accounts receivable beginning balance in subsidiary ledger with general ledger Tested footings and cross footings of sales invoices Checked accuracy of the accounts receivable general ledger Vouched and traced sales book to sales invoices, or vice versa Vouched and traced cash receipts book to official receipts, or vice versa Vouched the accounts receivable subsidiary ledgers to sales invoices and official receipts Footed debit and credit columns of subsidiary ledger records. Reconciled subsidiary ledgers to the general ledger
II. ASSERTIONS
III. PROCEDURES
IV. FINDINGS
WP Ref Rex Enterprises Louie Tan Eagle Contractors Valera Company Ida Coronel Alberto & Associates, CPAs Legarda Company Cora Tayag Dynasty Construction Anna Reyes-employee Gwendo Reyes Benitez Merchandising Lighthouse Commercial Building Blocks, Inc. Solomon Enterprises Carlo Santos Chad Acosta J.R. Alano Susan de Leon Roces, Adriano & Salas, CPAs R.V. Castro & Co. Johann Morales Centeno, Antonio & Tantoco, CPA Luli Samson
E-1.2 E-1.2 E-1.2 E-1.2 E-1.2 E-1.2 E-1.2 E-1.2 E-1.2 E-1.2 E-1.2 E-1.2 E-1.2 E-1.2 E-1.2 E-1.2 E-1.2 E-1.2 E-1.2 E-1.2 E-1.2 E-1.2 E-1.2 E-1.2
Unadjusted Balances Dr. 1,700,000 1,284,000 546,825 410,000 666,285 150,000 224,500 1,047,375 54,625 546,825 300,000 1,391,775 186,500 762,200 520,000 264,000 681,000 1,600,000 1,264,475 1,700,000 1,224,500 970,000 736,000 1,713,500
12/31/11 Cr.
246,825 410,000 528,000 224,500 757,500 4,625 246,825 350,000 1,391,775 187,200 520,000 681,000 1,060,000
970,000 1,713,500
Total Balances
Adjustments Dr.
1,700,000 1,284,000 300,000 138,285 150,000 289,875 50,000 300,000 -50,000 186,500 575,000 264,000 1,600,000 204,475 1,700,000 1,224,500 736,000 -
Cr. 484,000
10
300,000 50,000 232,000
681,000 681,000
93,825
681,000 885,475
J.R. Alano Trading
E-1.2
730,350
580,350
Sampollo Company Total Balances
150,000 -
20,674,735
9,872,100
Net Accounts Receivable - Subsidiary Ledger
730,350
730,350
580,350
2,954,710
3,755,000
2,954,710
3,755,000
10,802,635
Accounts Receivable - General Ledger Net Accounts Receivable - General Ledger
10,802,635
580,350
10,318,635
E-1.1
10,318,635
Differences GL to SL To adjust GL to SL - Unrecorded Sales to Louie Tan
TOTAL ADJUSTED ACCOUNTS RECEIVABLE
ADJUSTING JOURNAL ENTRIES a.
b.
c.
d.
Accounts Receivable - Gwendo Reyes Advances from Customers To reclassify credit balance of Gwendo Reyes
50,000 50,000
Accounts Receivable - Sampollo Company Accounts Receivable - J.R. Alano Trading To reclassify account balances erroneously recorded in wrong SL
730,350
Accounts Receivable - J.R. Alano Trading Accounts Receivable - Sampollo Company To reclassify payments made by Sampollo OR #110
580,350
Accounts Receivable - Susan de Leon Accounts Receivable - Chad Acosta To reclassify account balances erroneously recorded in wrong SL
681,000
730,350
580,350
681,000
e.
Sales Output Tax
1,364 136 Accounts Receivable - Susan de Leon To record overstatement of SI #1258
f.
Cash
1,500
204,475 Accounts Receivable - Susan de Leon Advances from Customers To record payment made by Susan. OR #122
g.
g.
202,975 1,500
Accounts Receivable - Chad Acosta Accounts Receivable - Susan de Leon To reclassify payment made by Susan de Leon, OR #112
681,000
Sales
300,000
681,000
Accounts Receivable - Anna Reyes
300,000
To derecognize sales made to Anna due to lack of supporting documents h.
Sales Output VAT
68 7 Accounts Receivable - Benitez Merchandising To record overstatement of SI #1255
i.
j.
Accounts Receivable - Ida Company Sales Output tax To record understatement of SI #1256 Accounts Receivable - Benitez Merchandising Sales Output Tax
75
10 9 1
232,000 210,909 21,091
To record SI #1266 k.
Cash
93,750 Accounts Receivable - Benitez Merchandising To record payment by Benitez OR # 121
l.
m.
93,750
Accounts Receivable Sales To record sales to Louie Tan
484,000
Cash
484,000 Accounts Receivable To record payment made by Louie Tan OR #118
484,000
484,000
Additionally, the following errors were noted: 1. An amount of P1,060,000 was erroneously recorded as P1,600,000 in OR #102 but was recorded properly in subsidiary ledger 2. References to SI #1261 and #1262 in Cora Tayag's subsidiary ledger were erroneously refered to SI #1161 and #1162. 3. Cross footing and footing was not properly done so a slide error was committed in SI #1252. Total amount of SI should be P4,625 but reflected as P46.25. The correct amount was properly recorded in subsidiary ledger.
III. CONCLUSION With the exceptions of the adjusting entries and corrections recommended by the auditor, sufficient and appropriate evidence were gathered to support the assertions made. Prepared by: MGR Reviewed by: JGN
E-1
Adjusted Balances 1,700,000 800,000 300,000 138,295 150,000 289,875 50,000 138,175 186,500 575,000 264,000 1,600,000 1,700,000 1,224,500 736,000 -
E-4 E-4 E-4 E-4 E-4 E-4 E-4 E-4 E-4 E-4 E-4 E-4 E-4 E-4 E-4 E-4 E-4 E-4 E-4 E-4 E-4 E-4 E-4 E-4
E-4 150,000 E-4 -
10,002,345 10,002,345 9,518,345 9,518,345 484,000 484,000 0.00 10,002,345 E-4.2
e P4,625 but
e were gathered to Date: 2/1/2012 Date: 2/5/2012
ACCOUNT
DATE
Accounts Receivable ITEM
2011 Nov. 30 Balance Dec. 31
ACCOUNT NO.
F
DEBIT
P SJ 12
Balance ∂ - Computations Verified « - Footed and Cross Footed
DATE
15,316,000.00 2,786,445.00
∂
10,318,635.00
E-1 «
Dec. 5 8 31 13
ITEM
F
GJ 11 GJ 11 CR 12 GJ 11
104 CREDIT
P
20,000.00 470,000.00 7,272,335.00 21,475.00
E-1.1
∂
ACCOUNTS RECEIVABLE SUBSIDIARY LEDGERS NAME: ADDRESS:
DATE
Rex Enterprises 33 Teresa St., Metro Manila PARTICULARS
Sept. 15
NAME: ADDRESS:
DATE
ADDRESS:
DATE
Louie Tan 40 Bambang St., Metro Manila PARTICULARS
ADDRESS:
DATE
Eagle Contractors 11 Forbes St., Makati PARTICULARS
ADDRESS:
DATE
PARTICULARS
ADDRESS:
DATE
2011 Sept. 15
DEBIT
PARTICULARS
246,825.00
DEBIT
ACCOUNT NO.:
CREDIT
410,000.00 410,000.00
DEBIT
ACCOUNT NO.:
CREDIT
528,000.00 138,285.00 528,000.00
Alberto & Associates, CPAs 128 Pebble Road, Mandaluyong, MM PARTICULARS
CREDIT
300,000.00 246,825.00
Ida Coronel 63 Manotoc St., Quezon City
2011 Nov. 30 SI 1152 Dec. 15 SI 1256 12 OR 107
NAME:
CREDIT
ACCOUNT NO.:
Valera Company 705 Aurora Bldg., Cubao, Quezon City
2011 Nov. 18 SI 1070 Dec. 15 OR 109
NAME:
DEBIT
ACCOUNT NO.:
1,284,000.00
2011 Nov. 20 Dec. 1 SI 1251 11 OR 106
NAME:
CREDIT
1,700,000.00
2011 Nov. 30
NAME:
DEBIT
ACCOUNT NO.:
DEBIT
150,000.00
ACCOUNT NO.:
CREDIT
NAME: ADDRESS:
DATE
Legarda Company 23 Hidalgo, Binondo, Manila PARTICULARS
DEBIT
2011 Nov. 19 SI 1121 Dec. 1 OR 101
NAME: ADDRESS:
DATE
224,500.00
DEBIT
2011 Nov. 27 SI 1100 Dec. 17 OR 111 27 SI 1161-1162
NAME: ADDRESS:
DATE
ADDRESS:
DATE
757,500.00
DEBIT
2011 Nov. 20 Dec. 1 SI 1251 11 OR 106
NAME: ADDRESS:
DATE
2011 Oct. 30 Nov. 5 OR 86
NAME: ADDRESS:
DATE
ACCOUNT NO.:
DEBIT
2011 Nov. 28 SI 1135 Dec. 5 OR 103
CREDIT
300,000.00 246,825.00 246,825.00
DEBIT
ACCOUNT NO.:
CREDIT
300,000.00 350,000.00
Benitez Merchandising 582 Kamagong St., Makati City PARTICULARS
CREDIT
4,625.00
Gwendo Reyes 85 Cantada St., Diliman, Quezon City PARTICULARS
ACCOUNT NO.:
50,000.00 4,625.00
Anna Reyes - employee 16 Legarda St., Manila PARTICULARS
CREDIT
289,875.00
2011 Nov. 8 Dec. 3 SI 1252 23 OR 115
NAME:
ACCOUNT NO.:
757,500.00
Dynasty Construction 36 Rizal Avenue, Sta. Cruz, Manila PARTICULARS
CREDIT
224,500.00
Cora Tayag 1642 Reyes Avenue, Manila PARTICULARS
ACCOUNT NO.:
DEBIT
ACCOUNT NO.:
CREDIT
370,000.00 370,000.00
10 SI 1254 - 1255 1,021,775.00 13 Sales returns & allowances OR 113
NAME: ADDRESS:
DATE
Lighthouse Commercial 785 Ayala Avenue, Makati City PARTICULARS
2011 Mar. 21 Apr. 19
NAME: ADDRESS:
DATE
ADDRESS:
DATE
Building Blocks, Inc. 220 Ortigas St., Mandaluyong PARTICULARS
DEBIT
ADDRESS:
DATE
PARTICULARS
DEBIT
Carlo Santos 25 Lumot St., Tondo, Manila PARTICULARS
ADDRESS:
DATE
ADDRESS:
DATE
2011 Oct. 5
CREDIT
DEBIT
ACCOUNT NO.:
CREDIT
20,000.00 500,000.00
ACCOUNT NO.:
CREDIT
264,000.00
Chad Acosta 85 Laong-Laan St., Metro Manila PARTICULARS
2011 Nov. 25 SI 1242 Dec. 18 OR 112
NAME:
ACCOUNT NO.:
187,200.00
Solomon Enterprises 326 Quirino Avenue, Baclaran
2011 June 3
NAME:
CREDIT
575,000.00 75,805.00 111,395.00
2011 Nov. 30 SI 1149 520,000.00 Dec. 5 Sales returns & allowances 8 OR 105
NAME:
ACCOUNT NO.:
100,000.00 86,500.00
2011 Nov. 19 Dec. 23 SI 1259 SI 1260 23 OR 114
NAME:
DEBIT
21,475.00 1,000,000.00
DEBIT
CREDIT
681,000.00 681,000.00
J. R. Alano 162 Laong-Laan St., Metro Manila PARTICULARS
ACCOUNT NO.:
DEBIT
1,600,000.00
ACCOUNT NO.:
CREDIT
NAME: ADDRESS:
DATE
Susan de Leon 482 Rizal Avenue, Metro Manila PARTICULARS
2011 Nov. 27 SI 1125 Dec. 1 OR 102 22 SI 1258
NAME: ADDRESS:
DATE
ADDRESS:
DATE
PARTICULARS
ADDRESS:
DATE
1,060,000.00 1,060,000.00 204,475.00
DEBIT
R.V. Castro & Co. 1856 Ayala Avenue, Makati City PARTICULARS
DEBIT
ADDRESS:
DATE
Johann Morales 2000 C.M. Recto Avenue, Manila PARTICULARS
DEBIT
Centeno, Antonio & Tantoco, CPA 296 Frisco St., Novaliches PARTICULARS
2011 Dec 29 SI 1263
NAME: ADDRESS:
DATE
DEBIT
CREDIT
PARTICULARS
J. R. Alano Trading
ACCOUNT NO.:
CREDIT
500,000.00 470,000.00
ACCOUNT NO.:
CREDIT
736,000.00
Luli Samson 852 Buendia Avenue, Makati City
2011 Nov. 29 SI 1231 Dec. 15 OR 108 20 SI 1257 27 OR 117
NAME:
ACCOUNT NO.:
1,000,000.00 224,500.00
2011 Nov. 29 SI 1133 970,000.00 Dec. 8 OR converted to 60-day 12% note
NAME:
CREDIT
1,700,000.00
2011 Sept. 20 Nov. 30
NAME:
CREDIT
Roces Adriano & Salas, CPAs ACCOUNT NO.: Rm. 307 ABC Bldg., Ayala Avenue, Makati City
2011 Nov. 20
NAME:
DEBIT
ACCOUNT NO.:
DEBIT
ACCOUNT NO.:
CREDIT
845,000.00 845,000.00 868,500.00 868,500.00
ACCOUNT NO.:
ADDRESS:
DATE
555 Ilocos St., Metro Manila PARTICULARS
2011 Nov. 8 Dec. 7 SI 1253 OR 110
LEGEND: « - Footed and Cross Footed
DEBIT
CREDIT
150,000.00 580,350.00 580,350.00
E-1.2
ARY LEDGERS 101
BALANCE
1,700,000.00 «
102
BALANCE
1,284,000.00 «
103
BALANCE
300,000.00 546,825.00 300,000.00 «
104
BALANCE
410,000.00 «
105
BALANCE
528,000.00 666,285.00 138,285.00 «
106
BALANCE
150,000.00 «
107
BALANCE
224,500.00 -«
108
BALANCE
757,500.00 289,875.00 «
109
BALANCE
50,000.00 54,625.00 50,000.00 «
111
BALANCE
300,000.00 546,825.00 300,000.00
112
BALANCE
300,000.00 (50,000.00) «
113
BALANCE
370,000.00
1,021,475.00 1,000,000.00 - -«
114
BALANCE
100,000.00 186,500.00 «
115
BALANCE
675,000.00 650,805.00 762,200.00 575,000.00 «
117
BALANCE
520,000.00 500,000.00 - -«
118
BALANCE
264,000.00 «
119
BALANCE
681,000.00 -«
120
BALANCE
1,600,000.00 «
121
BALANCE
1,060,000.00 204,475.00 «
123
BALANCE
1,700,000.00 «
124
BALANCE
1,000,000.00 1,224,500.00 «
125
BALANCE
970,000.00 470,000.00 - -«
126
BALANCE
736,000.00 «
127
BALANCE
845,000.00 868,500.00 -«
128
BALANCE
150,000.00 208,350.00 150,000.00 «
SALES BOOK DEBIT DATE
SOLD TO
TERMS
INV. NO.
F
2/10. n/30
1251
246,825.00
224,386.00
3 Dynasty Construction
2/10. n/30
1252
4,625.00
4,205.00
7 Sampollo Company
2/10. n/30
1253
58,035.00
52,759.00
2/10. n/30
1254
711,950.00
647,227.00
1255
309,525.00
281,386.00
ACCOUNTS RECEIVABLE
CASH SALES
CREDIT SALES
2004 Dec. 1 Eagle Contractors
10 Benitez Merchandising 15 Ida Coronel
2/10. n/30
1256
138,285.00
125,714.00
17 Luli Samson
2/10. n/30
1257
86,850.00
78,955.00
22 Susan de Leon
2/10. n/30
1258
204,475.00
Cash
1259
75,805.00
68,914.00
1260
111,395.00
101,268.00
23 Building Blocks, Inc. Building Blocks, Inc. 27 Cora Tayag
2/10. n/30
29 Centeno, Antonio & Tantoco
2/10. n/30
1261
185,886.00
208,600.00
189,636.00
1262
81,275.00
73,886.00
1263
736,000.00
669,091.00
2,786,445.00 (104)
187,200.00
2,703,313.00 (3001)
E-1.3 CREDIT OUTPUT TAX
22,439.00 420.00 5,276.00 64,723.00 28,139.00 12,571.00 7,895.00 18,589.00 6,891.00 10,127.00 18,964.00 7,389.00 66,909.00 270,332.00 (1008)
CASH RECEIPTS BOOK DATE
RECEIVED FROM
EXPLANATION
OR#
BANK
SALES DISCOUNT
DR.
DR.
ACCOUNTS RECEIVABLE (CR.)
CASH SALES
AMOUNT
ü
CR.
2011 Dec. 1 Legarda
SI
1121
101
P
224,500.00
Susan de Leon
SI
1125
102
5 Benitez Merch.
SI
1135
103
362,600.00
8 Johann Morales
SI
1133
104
500,000.00
Solomon Ent.
SI
1149
105
490,000.00
11 Eagle Contractors
SI
1251
106
241,888.00
12 Ida Coronel
SI
1152
107
15 Luli Samson
SI
1231
Velera Company
SI
17 Sampollo Company
1,038,800.00 P
ü
P
224,500.00
21,200.00
ü
1,060,000.00
7,400.00
ü
370,000.00
ü
500,000.00
10,000.00
ü
500,000.00
4,937.00
ü
246,825.00
528,000.00
ü
528,000.00
108
845,000.00
ü
845,000.00
1070
109
410,000.00
ü
410,000.00
SI
1253
110
56,874.00
ü
58,035.00
Cora Tayag
SI
1100
111
757,500.00
ü
757,500.00
18 Susan de Leon
SI
1242
112
681,000.00
ü
681,000.00
20 Benitez Merch.
SI 12541255
113
980,000.00
ü
1,000,000.00
23 Building Blocks, Inc.
SI 1259 & 1260
114
187,200.00
1,161.00
20,000.00
ü
P
187,200.00
SUNDRY (CR.) ACCT. NAME
Dynasty Construction 26 M. Paredes 27 Luli Samson
SI
1252
Subs. For 50,000 shares SI
1257
115
4,625.00
ü
116
2,625,000.00
ü
117
85,113.00
1,737.00
10,018,100.00 P
66,435.00
P
4,625.00 Subs. Rec'ble 86,850.00
ü P
7,272,335.00 P
(101)
(3002)
(104)
ü
ü
ü
187,200.00 ü
E-1.4 SUNDRY (CR.) F
AMOUNT
2003
P
2,625,000.00
P
2,625,000.00
Grace
INVOICE
No.
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690 Website: www.gracecorporation.biz.ph
Date
1 December 2011
D
Charged to: Delivered to:
Eagle Contractors 11 Forbes St., Makati City
Job Order No. P. O. No. Terms
Quantity
Unit
Description
1,250 250 10 20 150 200 750 750
box box box box ream ream piece piece
Plain Pencil - Mongol Charcoal Pencil - Steadler Silver Paper Clips Blackie Carbon Paper Whitey Bond Paper Milky Onion Skin Bic Ballpen - Black Bic Ballpen - Blue
400
piece
Bic Ballpen - Red
2/10, n/30
Unit Price
P
101.50 130.50 50.00 145.00 188.50 159.50 12.50 12.50 12.50 TOTAL
12% interest per annum is to be charged on all overdue accounts, plus 23% on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked. legal action arising out of this transaction. Without in any way attempting to divert on any other court or courts, returned goods will not be accepted without written authority from our office, the above merchandise have been Received by: carefully counted, checked and packed, packages delivered by carrier should be checked with those recorded above.
Customer/Receiver
Grace
INVOICE
No.
CORPORATION
VAT 2011-002-148 | TIN 4004-009-175 12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690 Website: www.gracecorporation.biz.ph
Date
3 December 2011
D
Dynasty Construction Delivered to: 36 Rizal Ave., Sta. Crux, Manila Charged to:
Job Order No. P. O. No. Terms
Quantity
350 350 60
Unit
piece piece bottle
Description
Fastener Folder - regular Elmer's Glue
Unit Price
P
1.50 4.00 35.00
2/10, n/30
20
box
Roll-O Typewriter Ribbon
30.00 TOTAL
12% interest per annum is to be charged on all overdue accounts, plus 23% on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked. legal action arising out of this transaction. Without in any way attempting to divert on any other court or courts, returned goods will not be accepted without written authority from our office, the above merchandise have been Received by: carefully counted, checked and packed, packages delivered by carrier should be checked with those recorded above.
Customer/Receiver
Grace
INVOICE
No.
CORPORATION
VAT 2011-002-148 | TIN 4004-009-175 12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690 Website: www.gracecorporation.biz.ph
Date
7 December 2011
D
Charged to: Delivered to:
Sampollo Company 312 Arden St., Paranaque City
Job Order No. P. O. No. Terms
Quantity
Unit
70 70 100 20 80 50
bottle piece ream box ream pads
50
pads
Description
2/10, n/30
Unit Price
Quink Ink P Pilot Fountain Pen Whitey Bond Paper Blackie Carbon Paper Milky Onion Skin 10 Column Worksheet - Verna
82.50 150.00 188.50 145.00 159.50 72.50
12 Column Worksheet - Verna
72.50 TOTAL
12% interest per annum is to be charged on all overdue accounts, plus 23% on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked. legal action arising out of this transaction. Without in any way attempting to divert on any other court or courts, returned goods will not be accepted without written authority from our office, the above merchandise have been Received by: carefully counted, checked and packed, packages delivered by carrier should be checked with those recorded above.
Customer/Receiver
Grace
INVOICE
No.
CORPORATION
VAT 2011-002-148 | TIN 4004-009-175 12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690 Website: www.gracecorporation.biz.ph
Date
10 December 2011
D
Charged to: Delivered to:
Benitez Merchandising 582 Kamagong St., Makati City
Job Order No. P. O. No. Terms
Quantity
800 700 500 500 500 500 1,500 500 700 300
Unit
box box pad pad pad pad pad ream ream roll
Description
Plain Pencil - Mongol P Chrcoal Pencil - Staedler 16 column worksheet - verne 14 column worksheet - verne 12 column worksheet - verne 10 column worksheet - verne Yello paper - Old Mill Bond Paper - Whitey Onion Skin - Milky Cartolina
Unit Price
101.50 130.50 72.50 72.50 72.50 72.50 43.50 188.50 159.50 12.50
2/10, n/30
2,500 250 500 500
meter ream piece piece
Plastic Cover Art Paper Folder - Regular Folder - Long
25.00 210.00 4.00 5.00 TOTAL
12% interest per annum is to be charged on all overdue accounts, plus 23% on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked. legal action arising out of this transaction. Without in any way attempting to divert on any other court or courts, returned goods will not be accepted without written authority from our office, the above merchandise have been Received by: carefully counted, checked and packed, packages delivered by carrier should be checked with those recorded above.
Customer/Receiver
Grace
INVOICE
No.
CORPORATION
VAT 2011-002-148 | TIN 4004-009-175 12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690 Website: www.gracecorporation.biz.ph
Date
10 December 2011
D
Benitez Marchandising Delivered to: 582 Kamagog St. Makati City Charged to:
Job Order No. P. O. No. Terms
Quantity
100 150 300 150 240 300 1,500 1,000 2,500 2,500 2,500 1,000 1,500 150
Unit
box box bottle box box pair piece piece piece piece piece piece pads bottle
Description
2/10, n/30
Unit Price
Plain pencil- mongol thumbtacks - golden P Elemer's glue Carbon paper - blackie Typewriter Ribbon - Roll-o scissors thick notebook thin notebook Bic ballpen - black Bic ballpen - blue Bic Ballpen - red Fastener Intermediate Pad - old mill Ink - Quink
50.00 58.00 35.00 145.00 30.00 17.50 47.00 40.00 12.50 12.50 12.50 1.50 22.00 82.00 TOTAL
12% interest per annum is to be charged on all overdue accounts, plus 23% on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked. legal action arising out of this transaction. Without in any way attempting to divert on any other court or courts, returned goods will not be accepted without written authority from our office, the above merchandise have been Received by: carefully counted, checked and packed, packages delivered by carrier should be checked with those recorded above.
Customer/Receiver
Grace
CORPORATION
INVOICE
No.
VAT 2011-002-148 | TIN 4004-009-175 12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690 Website: www.gracecorporation.biz.ph
Date
15 December 2011
D
Ida Coronel Delivered to: 63 Manotoc, St., QC Charged to:
Job Order No. P. O. No. Terms
Quantity
200 50 20 20 150 300 500 400 500
Unit
pair piece box box roll pad pad pad pad
Description
scissors Fountain pen - pilot thumbtacks - golden paper clips - silver cartolina 16 column worksheet 17 column worksheet 18 column worksheet 19 column worksheet -
2/10, n/30
Unit Price
17.50 150.00 58.50 50.00 12.50 72.50 72.50 72.50 72.50
P
verna verna verna verna
TOTAL 12% interest per annum is to be charged on all overdue accounts, plus 23% on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked. legal action arising out of this transaction. Without in any way attempting to divert on any other court or courts, returned goods will not be accepted without written authority from our office, the above merchandise have been Received by: carefully counted, checked and packed, packages delivered by carrier should be checked with those recorded above.
Customer/Receiver
Grace
INVOICE
No.
CORPORATION
VAT 2011-002-148 | TIN 4004-009-175 12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690 Website: www.gracecorporation.biz.ph
Date
17 December 2011
D
Luli Samson Delivered to: 852 Buendia Ave., Makati City Charged to:
Job Order No. P. O. No. Terms
Quantity
250 450 100 100 50 300 300
Unit
Description
pads pads ream ream pair piece piece
Intermediate pad- old mill yelloe paper - old mill onion skin - milky bond paper - whitey scissors thick notebook thin notebook
2/10, n/30
Unit Price
P
22.00 43.50 159.50 188.50 17.50 47.00 40.00 TOTAL
12% interest per annum is to be charged on all overdue accounts, plus 23% on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked. legal action arising out of this transaction. Without in any way attempting to divert on any other court or courts, returned goods will not be accepted without written authority from our office, the above merchandise have been Received by: carefully counted, checked and packed, packages delivered by carrier should be checked with those recorded above.
Customer/Receiver
Grace
INVOICE
No.
CORPORATION
VAT 2011-002-148 | TIN 4004-009-175 12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690 Website: www.gracecorporation.biz.ph
Date
23 December 2011
D
susan de Leon Delivered to: 482 Rizal Ave., MM Charged to:
Job Order No. P. O. No. Terms
Quantity
1,500 1,250 1,300 450 250 250 300 300 500 150 200 150
Unit
pads pads meter roll piece piece piece piece piece pair ream bottle
Description
2/10, n/30
Unit Price
intermediate pad - old mill yellow paper - old mill P plastic cover cartolina folder - regular folder - long Leaf notebook - thick bind notebook - thin fastener scissors art paper Elmer's glue
22.00 43.50 25.00 12.50 4.00 5.00 47.00 40.00 1.50 7.50 210.00 35.00 TOTAL
12% interest per annum is to be charged on all overdue accounts, plus 23% on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked. legal action arising out of this transaction. Without in any way attempting to divert on any other court or courts, returned goods will not be accepted without written authority from our office, the above merchandise have been Received by: carefully counted, checked and packed, packages delivered by carrier should be checked with those recorded above.
Customer/Receiver
Grace
INVOICE
No.
CORPORATION
VAT 2011-002-148 | TIN 4004-009-175 12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690 Website: www.gracecorporation.biz.ph
Date
23 December 2011
D
Building blocks, inc Delivered to: 220 Ortigas, Mandaluyong Charged to:
Job Order No. P. O. No. Terms
Quantity
Unit
240 120
box box
Description
Plain Pencil - Mongol Charcoal Pencil - Staedler
Unit Price
### ###
cash
30 20 40 60 250 250 150 600 600 80
box box box box piece piece piece piece piece piece
Silver - Paper Clips Golden Thumbtacks Blackie Carbon Paper Roll-O Typewriter Ribbon Bic Ballpen - Black Bic Ballpen - Blue Bic Ballpen - Red Folder - Long Folder - Regular Pilot Fountain Pen
### ### ### ### ### ### ### ### ### ### TOTAL
12% interest per annum is to be charged on all overdue accounts, plus 23% on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked. legal action arising out of this transaction. Without in any way attempting to divert on any other court or courts, returned goods will not be accepted without written authority from our office, the above merchandise have been Received by: carefully counted, checked and packed, packages delivered by carrier should be checked with those recorded above.
Customer/Receiver
Grace
INVOICE
No.
CORPORATION
VAT 2011-002-148 | TIN 4004-009-175 12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690 Website: www.gracecorporation.biz.ph
Date
23 December 2011
D
building blocks, inc. Delivered to: 220 Ortigas, Mandaluyong Charged to:
Job Order No. P. O. No. Terms
Quantity
Unit
1200 150 60 200 360
piece bottle bottle ream ream
Description
cash
Unit Price
Fastener Quink Ink Elmer's Glue Bond Paper - Whitey Onion Skin - Milky
# ### ### ### ### TOTAL
12% interest per annum is to be charged on all overdue accounts, plus 23% on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked. legal action arising out of this transaction. Without in any way attempting to divert on any other court or courts, returned goods will not be accepted without written authority from our office, the above merchandise have been Received by: carefully counted, checked and packed, packages delivered by carrier should be checked with those recorded above.
Customer/Receiver
Grace
INVOICE
No.
CORPORATION
VAT 2011-002-148 | TIN 4004-009-175 12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690
Date
27 December 2011
Website: www.gracecorporation.biz.ph D
Cora Tayag Delivered to: 1642 Reyes Avenue, Manila Charged to:
Job Order No. P. O. No. Terms
Quantity
50 100 50 50 500 500 250 120 500 500 500 500
Unit
box box box box pad pad roll bottle pad pad pad pad
Description
2/10 n/30
Unit Price
Plain Pencil - Mongol Charcoal Pencil - Staedler Silver - Paper Clips Golden Thumbtacks Intermediate Pad - Old Mill Yellow Paper - Old Mill Cartolina Elmer's Glue 10 Column Worksheet - Vernal 12 Column Worksheet - Vernal 14 Column Worksheet - Vernal 16 Column Worksheet - Vernal
### ### ### ### ### ### ### ### ### ### ### ### TOTAL
12% interest per annum is to be charged on all overdue accounts, plus 23% on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked. legal action arising out of this transaction. Without in any way attempting to divert on any other court or courts, returned goods will not be accepted without written authority from our office, the above merchandise have been Received by: carefully counted, checked and packed, packages delivered by carrier should be checked with those recorded above.
Customer/Receiver
Grace
INVOICE
No.
CORPORATION
VAT 2011-002-148 | TIN 4004-009-175 12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690 Website: www.gracecorporation.biz.ph
Date
27 December 2011
D
Cora Tayag Delivered to: 1642 Reyes Avenue, Manila Charged to:
Job Order No. P. O. No. Terms
Quantity
750 750 750 450 800
Unit
piece piece piece piece piece
Description
Bic Ballpen - Black Bic Ballpen - Blue Bic Ballpen - Red Thick Notebook Thin Notebook
2/10 n/30
Unit Price
12.50 12.50 12.50 47.00 40.00
TOTAL 12% interest per annum is to be charged on all overdue accounts, plus 23% on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked. legal action arising out of this transaction. Without in any way attempting to divert on any other court or courts, returned goods will not be accepted without written authority from our office, the above merchandise have been Received by: carefully counted, checked and packed, packages delivered by carrier should be checked with those recorded above.
Customer/Receiver
Grace
INVOICE
No.
CORPORATION
VAT 2011-002-148 | TIN 4004-009-175 12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690 Website: www.gracecorporation.biz.ph
Date
29 December 2011
D
Centeno, Antonio and Tantoo, CPAs Delivered to: 296 Frisco St., Novaliches Charged to:
Job Order No. P. O. No. Terms
Quantity
1,500 1,250 2,000 1,250 100 500 250 1,250 1,250 750 1,200 600 60
Unit
pad pad pad pad box box box piece piece piece pad ream box
Description
cash
Unit Price
10-Column Worksheet - Verna P 12 column worksheet - verna 14 column worksheet - verna 16 column worksheet - verne Typewriter ribbon Plain pencil- Mongol Charcoal pencil- Staedler Bic ballpen- Black Bic Ballpen- Blue Bic Ballpen- Red Yellow paper - Old Mill Bond Paper - Whitey Carbon Paper - Blackie
72.50 72.50 72.50 72.50 30.00 101.50 130.50 12.50 12.50 12.50 43.50 188.50 145.00 TOTAL
12% interest per annum is to be charged on all overdue accounts, plus 23% on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked. legal action arising out of this transaction. Without in any way attempting to divert on any other court or courts, returned goods will not be accepted without written authority from our office, the above merchandise have been Received by: carefully counted, checked and packed, packages delivered by carrier should be checked with those recorded above.
Customer/Receiver
Grace
INVOICE
No.
CORPORATION
VAT 2011-002-148 | TIN 4004-009-175 12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690 Website: www.gracecorporation.biz.ph
Date
30 December 2011
D
Eagle Contractors Delivered to: 11 Forbes St., Makati City Charged to:
Job Order No. P. O. No. Terms
Quantity
Unit
Description
Unit Price
2/10, n/30
500 300 1,500 1,500 500
box ream piece piece piece
Charcoal Pencil - Staedler Bond Paper- Whitey Bic Ballpen - Black Bic Ballpen - Blue Bic Ballpen - Red
P
130.50 188.50 12.50 12.50 12.50 TOTAL
12% interest per annum is to be charged on all overdue accounts, plus 23% on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked. legal action arising out of this transaction. Without in any way attempting to divert on any other court or courts, returned goods will not be accepted without written authority from our office, the above merchandise have been Received by: carefully counted, checked and packed, packages delivered by carrier should be checked with those recorded above.
Customer/Receiver
Grace
INVOICE
No.
CORPORATION
VAT 2011-002-148 | TIN 4004-009-175 12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690 Website: www.gracecorporation.biz.ph
Date
30 December 2011
D
Dynasty Construction Delivered to: 30 Rizal Ave., Sta. Cruz, Manila Charged to:
Job Order No. P. O. No. Terms
Quantity
1,600 1,200 500
Unit
bottle box realm
Description
cash
Unit Price
elmer's glue Typewriter Ribbon- Roll-O Bond Paper- Whitey
P
35.00 30.00 188.50
TOTAL 12% interest per annum is to be charged on all overdue accounts, plus 23% on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked. legal action arising out of this transaction. Without in any way attempting to divert on any other court or courts, returned goods will not be accepted without written authority from our office, the above merchandise have been Received by: carefully counted, checked and packed, packages delivered by carrier should be checked with those recorded above.
Customer/Receiver
Grace
INVOICE
No.
CORPORATION
VAT 2011-002-148 | TIN 4004-009-175 12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690 Website: www.gracecorporation.biz.ph
Date
D
Charged to:
Benitez Merchandising
Job Order No.
30 December 2011
Delivered to:
582 Kamagong St., Makati City
P. O. No.
2/10, n/30
Terms
Quantity
1,000 1,000
Unit
pad ream
Description
Yellow Paper- Old Mill Bond Paper - Whitey
Unit Price
P
43.50 188.50
TOTAL 12% interest per annum is to be charged on all overdue accounts, plus 23% on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked. legal action arising out of this transaction. Without in any way attempting to divert on any other court or courts, returned goods will not be accepted without written authority from our office, the above merchandise have been Received by: carefully counted, checked and packed, packages delivered by carrier should be checked with those recorded above.
Customer/Receiver
Grace
INVOICE
No.
CORPORATION
VAT 2011-002-148 | TIN 4004-009-175 12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690 Website: www.gracecorporation.biz.ph
Date
3 January 2012
D
Benitez Marketing Delivered to: 582 Kamagong St., Makati City Charged to:
Job Order No. P. O. No. Terms
Quantity
2,500 3,000 2,000
Unit
piece piece piece
Description
2/10, n/30
Unit Price
Bic Ballpen - black Bic Ballpen - blue Bic Ballpen -red
12.50 12.50 12.50 TOTAL
12% interest per annum is to be charged on all overdue accounts, plus 23% on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked. legal action arising out of this transaction. Without in any way attempting to divert on any other court or courts, returned goods will not be accepted without written authority from our office, the above merchandise have been Received by: carefully counted, checked and packed, packages delivered by carrier should be checked with those recorded above.
Customer/Receiver
Grace
INVOICE
No.
CORPORATION
VAT 2011-002-148 | TIN 4004-009-175 12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690 Website: www.gracecorporation.biz.ph
Date
D
3 January 2012
Luli Samson Delivered to: 852 Buendia Ave., Makati City Charged to:
Job Order No. P. O. No. Terms
Quantity
250 100
Unit
pad ream
Description
yellow paper - old mill bond paper - whitey
2/10, n/30
Unit Price
43.50 188.50 TOTAL
12% interest per annum is to be charged on all overdue accounts, plus 23% on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked. legal action arising out of this transaction. Without in any way attempting to divert on any other court or courts, returned goods will not be accepted without written authority from our office, the above merchandise have been Received by: carefully counted, checked and packed, packages delivered by carrier should be checked with those recorded above.
Customer/Receiver
- Footed and Cross Footed
E-1.5 1251 Date
1 December 2011
304 Job Order No. P. O. No.
2/10, n/30
Terms
Amount
P
126,875.00 32,625.00 500.00 2,900.00 28,275.00 31,900.00 9,375.00 9,375.00 5,000.00
P
246,825.00 «
erchandise covered by this invoice has inspected, verified and checked.
Customer/Receiver
1252 Date
3 December 2011
305 Job Order No. P. O. No. Terms
2/10, n/30
Amount
P
525.00 1,400.00 2,100.00
600.00 P
erchandise covered by this invoice has inspected, verified and checked.
Customer/Receiver
4,625.00 «
1253 Date
7 December 2011
306 Job Order No. P. O. No.
2/10, n/30
Terms
Amount
P
5,775.00 10,500.00 18,850.00 2,900.00 12,760.00 3,625.00 3,625.00
P
58,035.00 «
erchandise covered by this invoice has inspected, verified and checked.
Customer/Receiver
1254 Date
10 December 2011
307 Job Order No. P. O. No. Terms
2/10, n/30
Amount
P
81,200.00 91,350.00 36,250.00 36,250.00 36,250.00 36,250.00 65,250.00 94,250.00 111,650.00 3,750.00
62,500.00 52,500.00 2,000.00 2,500.00 P
711,950.00 «
erchandise covered by this invoice has inspected, verified and checked.
Customer/Receiver
1255 Date
10 December 2011
308 Job Order No. P. O. No. Terms
2/10, n/30
Amount
5,000.00 8,700.00 10,500.00 21,750.00 7,200.00 5,250.00 70,500.00 40,000.00 31,250.00 31,250.00 31,250.00 1,500.00 33,000.00 12,300.00 309,450.00 «
P
erchandise covered by this invoice has inspected, verified and checked.
Customer/Receiver
1256
Date
15 December 2011
309 Job Order No. P. O. No.
2/10, n/30
Terms
Amount
3,500.00 7,500.00 1,170.00 1,000.00 1,875.00 21,750.00 36,250.00 29,000.00 36,250.00 138,295.00 «
P
erchandise covered by this invoice has inspected, verified and checked.
Customer/Receiver
1257 Date
17 December 2011
310 Job Order No. P. O. No. Terms
2/10, n/30
Amount
5,500.00 19,575.00 15,950.00 18,850.00 875.00 14,100.00 12,000.00 P
86,850.00 «
erchandise covered by this invoice has inspected, verified and checked.
Customer/Receiver
1258 Date
23 December 2011
311 Job Order No. P. O. No.
2/10, n/30
Terms
Amount
33,000.00 54,375.00 32,500.00 5,625.00 1,000.00 1,250.00 14,100.00 12,000.00 750.00 1,125.00 42,000.00 5,250.00 P
202,975.00 «
erchandise covered by this invoice has inspected, verified and checked.
Customer/Receiver
1259 Date
23 December 2011
312 Job Order No. P. O. No. Terms
cash
Amount 24360.00 15660.00
1500.00 1160.00 5800.00 1800.00 3125.00 3125.00 1875.00 3000.00 2400.00 12000.00
P
75,805.00 «
erchandise covered by this invoice has inspected, verified and checked.
Customer/Receiver
1260 Date
23 December 2011
313 Job Order No. P. O. No. Terms
cash
Amount
1,800.00 12,375.00 2,100.00 37,700.00 57,420.00 P
111,395.00 «
erchandise covered by this invoice has inspected, verified and checked.
Customer/Receiver
1261 Date
27 December 2011
314 Job Order No. P. O. No.
2/10 n/30
Terms
Amount
5,075.00 13,050.00 2,500.00 2,900.00 11,000.00 21,750.00 3,125.00 4,200.00 36,250.00 36,250.00 36,250.00 36,250.00 P
208,600.00 «
erchandise covered by this invoice has inspected, verified and checked.
Customer/Receiver
1262 Date
27 December 2011
315 Job Order No. P. O. No. Terms
2/10 n/30
Amount
9,375.00 9,375.00 9,375.00 21,150.00 32,000.00
P
81,275.00 «
erchandise covered by this invoice has inspected, verified and checked.
Customer/Receiver
1263 Date
29 December 2011
316 Job Order No. P. O. No.
cash
Terms
Amount
P
108,750.00 90,625.00 145,000.00 90,625.00 3,000.00 50,750.00 32,625.00 15,625.00 15,625.00 9,375.00 52,200.00 113,100.00 8,700.00
P
736,000.00 «
erchandise covered by this invoice has inspected, verified and checked.
Customer/Receiver
1264 Date
30 December 2011
317 Job Order No. P. O. No. Terms
2/10, n/30
Amount
P
65,250.00 56,550.00 18,750.00 18,750.00 6,250.00
P
165,550.00 «
erchandise covered by this invoice has inspected, verified and checked.
Customer/Receiver
1265 Date
30 December 2011
318 Job Order No. P. O. No.
cash
Terms
Amount
P
56,000.00 36,000.00 94,250.00 --------------
P
186,250.00 «
erchandise covered by this invoice has inspected, verified and checked.
Customer/Receiver
1266 Date
30 December 2011
319 Job Order No.
P. O. No.
2/10, n/30
Terms
Amount
P
43,500.00 188,500.00 -------------
P
232,000.00 «
erchandise covered by this invoice has inspected, verified and checked.
Customer/Receiver
1267 Date
3 January 2012
320 Job Order No. P. O. No. Terms
2/10, n/30
Amount
31,250.00 37,500.00 25,000.00 P
93,750.00 «
erchandise covered by this invoice has inspected, verified and checked.
Customer/Receiver
1268 Date
3 January 2012
321
Job Order No. P. O. No. Terms
2/10, n/30
Amount
10,875.00 18,850.00 P
29,725.00 «
erchandise covered by this invoice has inspected, verified and checked.
Customer/Receiver
GRACE CORPORATION Accounts Receivable Confirmation December 31, 2011
I. OBJECTIVES 1. 2.
To verify the accuracy and existence of the accounts receivable balances To determine whether the company indeed has the rights over the amounts owed to the company.
1. 2.
Existence Rights and Obligations
1. 2. 3. 4. 5.
Obtained a list of the company's customers (or check subsidiary ledger for accounts receivable) Performed sampling from the list, taking into consideration the materiality of the accounts. Constructed confirmation letter and send it to the selected customers. Collected the replies from the customers. Reviewed the accuracy of the account balances based on the customer's replies.
II. ASSERTIONS
III. PROCEDURES
IV. FINDINGS Customer Name R.V Castro Ida Coronel Alberto & Associates, CPA
Conf # AR-1 E-1.2 AR-2 E-1.2 AR-3 E-1.2
Balance per SL 1,224,500 138,285 150,000
a a a
E-2.1 E-2.1
Correct Balance 1,224,500 150,000
Difference -
Louie Tan
AR-4
E-1.2
1,284,000
a
Valera Company
AR-5
E-1.2
-
Legarda Company
AR-6
E-1.2
Gwendo Reyes REX Enterprise J.R. Alano Trading
AR-7 AR-8 AR-9
E-2.1
800,000
484,000
a
-
-
-
a
-
-
E-1.2 E-1.2 E-1.2
-50,000 1,700,000 1,600,000
a a a
E-2.1 E-2.1 E-2.1
-50,000 1,700,000 1,600,000
-
Roces, Adriano & Salas, CPAs
AR-10 E-1.2
1,700,000
a
E-2.1
1,700,000
-
Cora Tayag
AR-11 E-1.2
289,875
a
-
-
Susan de Leon
AR-12 E-1.2
204,475
a
E-2.1
0
204,475
Anna Reyes
AR-13 E-1.2
300,000
a
E-2.1
300,000
-
Dynasty Construction
AR-14 E-1.2
50,000
a
-
-
Benitez Merchandising
AR-15 E-1.2
-
a
-
-
Centeno, Antonio & Tantoco, CPAs
AR-16 E-1.2
736,000
a
E-2.1
736,000
-
Building Blocks Inc Eagle Contractors
AR-17 E-1.2 AR-18 E-1.2
575,000 300,000
a a
E-2.1
575,000 -
-
LEGENDS: a
Vouched SL balances with the OR and SI balances
V. CONCLUSION Aside from the necessary adjusting entry and recording of payment suggested, the transactions were properly recorded.
Prepared by: JGN Reviewed by: MGM
E-2
Remarks Balance is OK. Returned by Post Office. Balance is OK.
The 484,000 has been paid per OR #118 on December 28, 2011+J30. Necessary adjusting entry must be made. No response. (Receivable is fully paid) No response. (Receivable is fully paid) Balance is OK. Balance is OK. (Not yet due) Balance is OK. Balance is OK. Returned by Post Office. Balance was paid full on Dec 31, 2011 per OR #122. Proper recording of payment must be made.
Anna Reyes replied to the confirmation letter sent to her, confirming her balance. However, the auditor feels doubtful as to the authenticity of this transaction. Therefore, her account was excluded in the computation of the Account Receivable balance. No response. No response. (Receivable is fully paid) Recorded balance is correct but balance reflected in the confirmation letter was 73,600. Balance is OK. No response.
properly recorded.
Date: 2/25/2012 Date: 3/1/2012
THE FOLLOWING BALANCE DUE FROM ME (US) IS CORRECT: DUE TO:
AS OF:
GRACE CORPORATION
THE FOLLOWING BALANCE DUE FROM ME (US) IS CORREC AMOUNT:
December 31, 2011
Signature:
DUE TO:
P
289,975.00
E-2
Conf.No. AR-11
GRACE CORPORATION
Signature:
Position:
Position:
CORA TAYAG
IDA C
1642 Reyes Avenue, Manila
63 Manotoc St
Returned by Post Office
Returned
THE FOLLOWING BALANCE DUE FROM ME (US) IS CORRECT: DUE TO:
AS OF:
GRACE CORPORATION
THE FOLLOWING BALANCE DUE FROM ME (US) IS CORREC AMOUNT:
December 31, 2011
Signature:
REX Enterprises
Position:
Chief Accountant
DUE TO:
P Conf.No. AR-8
1,700,000.00
E-2
GRACE CORPORATION Signature:
J. R. Alano Trading
Position:
Chief Accountant
Balance is OK but this is not yet due.
THE FOLLOWING BALANCE DUE FROM ME (US) IS CORRECT:
THE FOLLOWING BALANCE DUE FROM ME (US) IS CORREC
DUE TO:
AS OF:
GRACE CORPORATION
AMOUNT:
December 31, 2011
Signature:
Roces, Adriano & Salas, CPAs
Position:
Chief Accountant
DUE TO:
P Conf.No. AR-10
1,700,000.00
E-2
GRACE CORPORATION Signature:
Susan de Leon
Position:
This is correct.
The above amou
Dec. 31, 201 Returned by Post Office
Returned
THE FOLLOWING BALANCE DUE FROM ME (US) IS CORRECT: DUE TO:
AS OF:
GRACE CORPORATION
THE FOLLOWING BALANCE DUE FROM ME (US) IS CORREC AMOUNT:
December 31, 2011
Signature:
Alberto & Associates, CPAs
Position:
Chief Accountant
DUE TO:
P
150,000.00
E-2
Conf.No. AR-3
GRACE CORPORATION Signature:
R.V. Castro & Co.
Position:
Chief Accountant
OK
Balance
Returned by Post Office
Returned
THE FOLLOWING BALANCE DUE FROM ME (US) IS CORRECT: DUE TO:
AS OF:
GRACE CORPORATION Signature:
THE FOLLOWING BALANCE DUE FROM ME (US) IS CORREC AMOUNT:
December 31, 2011
Louie Tan
DUE TO:
P
1,284,000.00
E-2
Conf.No. AR-4
Position:
GRACE CORPORATION Signature:
Gwendo Reyes
Position:
Comptroller
P 484,000 has been paid per OR# 118
Bala
on December 28, 2011. Returned by Post Office
Returned
THE FOLLOWING BALANCE DUE FROM ME (US) IS CORRECT: DUE TO:
AS OF:
GRACE CORPORATION Signature:
THE FOLLOWING BALANCE DUE FROM ME (US) IS CORREC AMOUNT:
December 31, 2011
Centeno, Antonio & Tantoco, CPAs
DUE TO:
P Conf.No. AR-16
73,600.00
E-2
GRACE CORPORATION Signature:
Building Blocks, Inc.
Position:
Chief Accountant
Position:
Balance is not correct.
Chief Accountant
Balanc
Iy should be P 736,000.00. Returned by Post Office
Returned
THE FOLLOWING BALANCE DUE FROM ME (US) IS CORRECT: DUE TO:
AS OF:
GRACE CORPORATION
AMOUNT:
December 31, 2011
P
300,000.00
E-2
No Reply: 1. Eagle Contractors
Signature:
Anna Reyes
Conf.No. AR-19
2. Valera Company 3. Legarda Company 4. Dynasty Construction
Position:
5. Benitez Merchandising 6. J. R. Alano Balance OK.
The company and auditor agreed on 5% Bad Debts Allowance Returned by Post Office
E-2.1
E FROM ME (US) IS CORRECT: AS OF:
AMOUNT:
December 31, 2011
P
138,285.00
E-2
P
1,600,000.00
E-2
Conf.No. AR-2
IDA CORONEL 63 Manotoc Street, Quezon City Returned by Post Office
E FROM ME (US) IS CORRECT: AS OF:
AMOUNT:
December 31, 2011
R. Alano Trading
Conf.No. AR-9
hief Accountant
OK
E FROM ME (US) IS CORRECT:
AS OF:
AMOUNT:
December 31, 2011
P Conf.No. AR-12
The above amount was paid in ful on Dec. 31, 2011 per OR # 122. Returned by Post Office
204,475.00
E-2
E FROM ME (US) IS CORRECT: AS OF:
AMOUNT:
December 31, 2011
V. Castro & Co.
P
1,224,500.00
E-2
P
(50,000.00)
E-2
P
575,000.00
E-2
Conf.No. AR-1
hief Accountant
Balance is correct.
Returned by Post Office
E FROM ME (US) IS CORRECT: AS OF:
AMOUNT:
December 31, 2011 Conf.No. AR-7
Balance OK.
Returned by Post Office
E FROM ME (US) IS CORRECT: AS OF:
uilding Blocks, Inc.
AMOUNT:
December 31, 2011
Conf.No. AR-17
hief Accountant
Balance correct.
Returned by Post Office
Not included in Send Out Confirmation: 1. Lighthouse Commercial 2. Solomon Enterprises 3. Carlo Santos 4. Chad Acosta 5. Johann Morales 6. Luli Samson
on 5% Bad Debts Allowance based on adjusted balance of Accounts Receivables.
GRACE CORPORATION Sales Cut Off December 31, 2011
I. OBJECTIVE 1
To determine that all transactions relative to accounts receivables have been recorded in t
1
Completeness
1 2
Examined sales invoices before and after the reporting period Traced sales invoices to the sales books to determine whether the transactions are record
II. ASSERTIONS
III. PROCEDURES
IV. FINDINGS
DATE 2011 Dec 1 3 7 10
SALES INVOICE
TERMS
1251
2/10. n/30
Eagle Contractors
E-1.3
1252
2/10. n/30
Dynasty Construction
1253 1254
2/10. n/30 2/10. n/30
Sampollo Company Benitez Merchandising
E-1.3 E-1.3 E-1.3
CLIENT
1255
WP REF
15
1256
2/10, n/30
Ida Coronel
E-1.3 E-1.3
17
1257
2/10, n/30
Luli Samson
E-1.3 E-1.3
22
1258
2/10, n/30
Susan de Leon
23
1259
Cash
Buillding Blocks, Inc.
27
1260 1261
Cash 2/10, n/30
Buillding Blocks, Inc. Cora Tayag
E-1.3 E-1.3 E-1.3
1262
2/10, n/30
Cora Tayag
29
1263
2/10,n/30
Centeno, Antonio & Tantoco
30
1264
C.O.D
Eagle Contractors
1265
C.O.D
Dynasty Construction
1266
2/10,n/30
Benitez Merchandising
E-1.3 E-1.3
E-1.5 E-1.5 E-1.5
CUT-OFF
2012 Jan 3
1267
C.O.D
1268
2/10,n/30
Proposed Adjusting Journal Entries:
Benitez Merchandising
E-1.5
Luli Samson
E-1.5
a.
Cash Output Tax Sales To record the unrecorded Sales Invoice No. 1264
b. Cash Output Tax Sales To record unrecorded Sales Invoice No. 1265 *
c.
Accounts Receivable-Benitez Merchandising Output Tax Sales To record Sales Invoice No. 1266
LEGEND: * Journal Entry is already made in E-1 r Examined Sales Invoices q Traced from Sales Invoice to Sales Book
V. CONCLUSIONS
Except for the three unrecorded sales in December, other sales transactions are recorded in the pr are recommended. No other exceptions are noted.
een recorded in the proper acounting period
ctions are recorded
E-3
PROPERLY RECORDED
AMOUNT
₱ ₱
246,825.00 rq
YES
4,625.00 rq
YES YES YES
₱ ₱
58,035.00 rq 711,950.00 rq
₱
309,525.00 rq
₱
138,285
YES YES
REMARKS
No exceptions noted Total amount of SI should be P4,625 but recorded as 46.25. No exceptions noted No exceptions noted Correct amount is 309, 450 but recorded as 309250. Corrections made in Procedure E-1 Immaterial difference of 10 exists due to a mistake in footing the Sales Invoice. Corrections made in Procedure E-1.
rq
₱
86,850 rq
YES
₱
204,975 rq
YES
₱
75,085 rq
YES
No exceptions noted
₱ ₱
111,395 rq 208,600 rq
YES YES
No exceptions noted No exceptions noted
No exceptions noted Correct amount is 202, 975 but recorded as 204, 475 due to a mistake in footing the Sales Invoice. Corrections made in Procedure E-1.
₱
81,275 rq
rq
YES
No exceptions noted
YES
No exceptions noted
₱
736,000
₱
165,550 rq
NO
Adjusting entries are recommended
₱
186,250 rq
NO
Adjusting entries are recommended
₱
232,000 rq
NO
Adjusting entries are recommended
93,750 rq 29,725 rq
YES
No Exceptions Noted
YES
No Exceptions Noted
CUT-OFF
₱ ₱
₱
₱
₱
165,550 ₱ ₱
15,050 150,500
₱ ₱
16,932 169,318
₱ ₱
21,091 210,909
186,250
232,000
ecorded in the proper accounting period . Necessary adjusting entries
Prepared by: RIT Reviewed by: BAG
Date: 2/15/2012 Date: 2/25/2012
V. CONCLUSIONS
The above objectives were successfully met. Appropriate balances of the Allowance for Bad Debts the adjusted Accounts Receivable balance. The Accounts Receivables would now be presented in as required by the PFRS, that is, Accounts Receivable net of Allowance for Bad Debts.
f the Allowance for Bad Debts were determined using the agreed percentage based on s would now be presented in the Statement of Financial Position at its net realizable ce for Bad Debts.
Prepared by: BAG Reviewed by: RIT
Date: 2/21/2012 Date: 2/26/2012
GRACE CORPORATION Accounts Receivable - Aging Schedule December 31, 2011
Name of Customer Rex Enterprises Louie Tan Eagle Contractors Valera Company Ida Coronel Alberto & Associates, CPAs Legarda Company Cora Tayag Dynasty Construction Anna Reyes-employee Gwendo Reyes Benitez Merchandising Lighthouse Commercial Building Blocks, Inc. Solomon Enterprises Carlo Santos Chad Acosta J.R. Alano Susan de Leon
WP Ref E-1 E-1 E-1 E-1 E-1 E-1 E-1 E-1 E-1 E-1 E-1 E-1 E-1 E-1 E-1 E-1 E-1 E-1 E-1
Audited Balances 1,700,000 800,000 300,000 138,295 150,000 289,875 50,000 138,175 186,500 575,000 264,000 1,600,000 -
Date of Invoice 09/15/11 11/30/11 11/20/11 12/15/11 09/15/11 12/27/11 11/08/11 12/30/11 3/21 and 4/19/11 11/19/11 06/03/11 10/05/11 -
CURRENT ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° °
138,295
289,875
138,175
Roces, Adriano & Salas, CPAs R.V. Castro & Co. Johann Morales Centeno, Antonio & Tantoco, CPA Luli Samson J.R. Alano Company Trading Sampollo
E-1 E-1 E-1 E-1 E-1 E-1 E-1
Total Accounts Receivable
E-1
1,700,000 1,224,500 736,000 150,000.00-
11/20/11 9/20 and 11/30/11 12/29/11 11/08/11-
10,002,345
° Checked against Accounts Receivable Subsidiary Ledger
° ° ° ° ° °°
736,000
1,302,345
E-4.1 1-30
No. of Days Past Due 31-60
Over 60 1,700,000
800,000 300,000
150,000
50,000
186,500 575,000 264,000 1,600,000
1,700,000 224,500
150,000.00 3,799,500
1,000,000
1,600,000
3,300,500
E-4.2
Johann Morales Centeno, Antonio & Tantoco, CPA Luli Samson J.R. Alano Company Trading Sampollo
E-1 E-1 E-1 E-1 E-1
Total Accounts Receivable
E-1
736,000 150,000.0010,002,345
° Checked against Accounts Receivable Subsidiary Ledger
12/29/11 11/08/11-
° ° ° °°
736,000
1,302,345
150,000.00 3,799,500
1,600,000
3,300,500
E-4.2
GRACE CORPORATION Accounts Receivable - Allowance for Doubtful Accounts Schedule December 31, 2011
CURRENT 1-30 31-60 Over 90 Total
WP REF E-4.1 E-4.1 E-4.1 E-4.1 E-1.1
Amount 1,302,345 3,799,500 1,600,000 3,300,500 10,002,345
Unadjusted balances, as of December 31, 2011 Required Allowance for Bad Debts Total Audit Adjustments Accounts Receivable, balance per audit Allowance for Bad Debts, balance per audit Net Accounts Receivable, December 31, 2011
Expected Percentage of Uncollectibility 5% 5% 5% 5%
E-4.2
Schedule
cted Percentage of Uncollectibility 5% 5% 5% 5%
Estimated Uncollectible 65,117 189,975 80,000 165,025 500,117
497,811 500,117 2,306 E-4 10,002,345 500,117 9,502,228
GRACE CORPORATION Notes Receivable December 31, 2011
I. OBJECTIVES 1 2 3
To determine that notes receivables exist as of the balance sheet date. To determine whether all notes receivables were recorded properly. To determine whether amounts of notes receivable were accurate.
1 2 3
Existence Completeness Valuation
1 2 3 4
Obtained a copy of notes receivable contracts. Examined the terms of the contract. Reconciled the amount stated in the contract with the amount recorded in the ledger. Recalculated interest.
1
The total notes receivables of Php 2,970,000 is composed of Php 2,500,000 and php 470,0000 notes receivable from Alicia M. David and Johann Morales respectively.
2
The correct balance of notes receivable as of the balace sheet date should have been Php 2,470,000.
II. ASSERTIONS
III. PROCEDURES
IV. FINDINGS
Maker Alicia M. David
Date of Note 11.05.2011
Johann Morales 12.08.2011 Balance per ledger Add (Deduct) Adjustments: Note collected by the Bank
Maturity Date 03.04.2012
Interest Rate 24%
02.06.2012
24%
E-5.3 E-5.3 E-5.2 E-5.1
BALANCE PER AUDIT Proposed Adjusting Journal Entry: (Entry was already made in C2) Cash 490,000 Miscellaneous Expense 10,000 Notes Receivable To record Notes Receivable collected by the bank.
Amount 2,500,000 rq 470,000 rq 2,970,000 (500,000) 2,470,000 E-7
500,000
LEGEND: r q
Examined Notes Receivable Contracts Traced from contract to ledger
V. CONCLUSIONS The difference of Php 500,000 was the unrecorded note collected by the bank.
Prepared by: MZB Reviewed by: LCC
Date: 2/13/2012 Date: 2/15/2012
E-5
ble from Alicia M. David and
Date: 2/13/2012 Date: 2/15/2012
E-5.2 ACCOUNT
Notes Receivable
DATE
2011 Nov. 30 Balance Dec. 8 Balance
ITEM
ACCOUNT NO.
F
DEBIT
P GJ 11
2,500,000.00 470,000.00 2,970,000.00 E-5
DATE
ITEM
F
105 CREDIT
E-5. PROMISSORY NOTE (Note Receivable) 470,000.00 E-5
P
December 8, 2011
sixty days after date
For value received, I / we jointly and severally promise to pay, Grace Corporation thousand interest rat
24
or order, the sum of pesos (
470,000.00 ),
% payable at
12 Ninoy Aquino Ave., Paranaque City
Philippine Currency at an annual .
If this note is placed in the hands of attorney for collection; the makes and endorsers shall, in addition, pay 25% of the amount due as attorney's fees and costs of collection (aside from the costs of litigation allowed by the Rules of Court).
Signature
Signature
Sarah B. Tuason for Grace Corporation
Johann Morales
Name in Print
Name in Print
12 Ninoy Aquino Avenue Paranaque City
301 Frico Street Novaliches, Quezon City
Mailing Address
Mailing Address
Res. Cert. No.: AB3486789
Res. Cert. No.: A4882283
Date: January 19, 2011
Date: January 15, 2011
Place of Issue: Paranaque City
Place of Issue: Quezon City
SIGNED IN THE PRESENCE OF:
SIGNED IN THE PRESENCE OF:
PROMISSORY NOTE (Note Receivable) 2,500,000.00 E-5
P
December 5, 2011
For value received, I / we jointly and severally promise to pay, Grace Corporation thousand interest rat
24
120
days after date
or order, the sum of pesos ( % payable at
2,500,000.00 ),
Philippine Currency at an annual
12 Ninoy Aquino Ave., Paranaque City
If this note is placed in the hands of attorney for collection; the makes and endorsers shall, in addition, pay 25% of the amount due as attorney's fees and costs of collection (aside from
.
the costs of litigation allowed by the Rules of Court).
Signature
Signature
Sarah B. Tuason for Grace Corporation
Alicia M David
Name in Print
Name in Print
12 Ninoy Aquino Avenue Paranaque City
58 Veronica Street Sta. Mesa, Manila
Mailing Address
Mailing Address
Res. Cert. No.: AB3486789
Res. Cert. No.: 5982283
Date: January 19, 2011
Date: January 17, 2011
Place of Issue: Paranaque City
Place of Issue: Manila
SIGNED IN THE PRESENCE OF:
SIGNED IN THE PRESENCE OF:
E-5.3
GRACE CORPORATION Accrued Interest Receivable December 31, 2011
I. OBJECTIVES 1 2 3
To determine that accrued interesr receivables exist as of the balance sheet date. To determine whether all accrued interest receivables were recorded properly. To determine whether amounts of accrued interest receivable were accurate.
1 2 3
Existence Completeness Valuation
1 2 3 4 5
Obtained a copy of notes receivable contracts. Examined the terms of the contract. Determined the amount of accrued interest recorded for the period Recalculatedinterest. Noted for differences.
1
The total accrued interest receivables that exist as of the balance sheet date was understated.
II. ASSERTIONS
III. PROCEDURES
IV. FINDINGS
Maker Alicia M. David
Principal 2,000,000
Johann Morales Balance per Audit Balance per Books
500,000 470,000
Interest Rate 24% 24% 24%
r r r
Days Outstanding 56
Interest Earned
54 23
E-6.1
Audit Adjustment Proposed Adjusting Journal Entry: Accrued Interest Receivable 59,652 Interest Income To record accrued interest for the period.
59,652
LEGEND: r
Examined Notes Receivable Contracts
V. CONCLUSIONS
An understatement of Php 59,652 exist in the Accrued Interest Receivable account and so with the Interest Income recorded. With the exceptions of the adjusting entries recommended by the auditor, sufficient and appropriate evidence were gathered to support the assertions made.
E-6
Interest Earned 73,644 17,753 7,108 98,505 38,853 59,652
est Income recorded. dence were gathered to
Prepared by: MZB Reviewed by: LCC
Date: 2/16/2012 Date: 3/30/2012
E-6.1 ACCOUNT
DATE
Accrued Interest Receivable ITEM
2011 Dec. 31 Balance Balance
F
ACCOUNT NO.
DEBIT
P
38,853.00 38,853.00 E-6
DATE
ITEM
F
107
CREDIT
GRACE CORPORATION
Analytical Procedures - Accounts Receivable December 31, 2011
I. OBJECTIVES 1
To be able to evaluate the fluctuations or unusual changes on the balance of accounts receivable and notes
2
receivable account. To assess whether amounts and other data relating to recorded transactions and events have been recorded appropriately.
II. ASSERTIONS 1
Accuracy
1
Compared the difference between the audited balance of cash of the current year from the audited balance of the preceding year (Balance of 2010 from 2009 and Balance of 2011 from 2010). The differences on the account balances where expressed in percentage by diving the variance from the prior balance of an account. Journal entries of transactions and supporting documents related to cash such as petty cash voucher and bank
III. PROCEDURES
2 3
reconcillation were reviewed to evaluate the differences on the account balances.
IV. FINDINGS
AR Ending Balances
2009 8,850,000
Accounts Receivables 2010 12,250,000 E-4.2
2011 9,502,228
Percent Increase (Decrease) AR Turnover Days in AR NR Ending Balances
600,000
38% 5.07 72.06 1,500,000
Percent Increase (Decrease)
-
150%
-22% 10.11 36.11 2,470,000
E-5
65%
III. CONCLUSION
In the ratios displayed above, the auditors can infer that credit collecting has improved significantly for Grace Corporation. Their receivables have an average of 36 in days oustanding, from last years' 72. There is an effective collection policy during the year, considering that their average credit term is 45 days. Accounts receivable turnover is the number of times per year that a business collects its average accounts receivable. The ratio is intended to evaluate the ability of a company to efficiently issue credit to its customers and collect funds from them in a timely manner. Because Inventory turnover doubled, we can infer that there has been a more conservative credit policy and a more aggressive collections department, as well as high quality customers.
Prepared by: ILW Reviewed by: LCC
E-7
Date: 1/25/2012 Date: 2/10/2012
GRACE CORPORATION Reconciliation of Inventory Balances December 31, 2011
I. OBJECTIVES 1 2 3
To determine whether inventory exists at year-end and that inventory-related transactions occured within the year. To determine that all inventory balances of the client are reflected on the balance sheet at year-end. To determine whether all inventory are recorded at their proper amounts with concerns to the General Ledger (Purchases, Cost of Sales).
1 2
Existence Rights and Obligations
3
Completeness
4
Occurrence
5
Accuracy
1 2 3 4 5 6 7
Obtained copy of the client's Purchase Book and Purchase Invoices for the month of December. Reconciled the records in the purchase book to the corresponding Purchase Invoices. Examined purchase terms and Cash Vouchers and looked for possible purchase discounts. Obtained copy of the company's Cost of Sales sheet, and Sales Invoices for the month of December. Traced sales invoices to cost of sales sheet. Recalculated cost of Sales. Reconciled recalculated amount to the company's cost of sales sheet.
II. ASSERTIONS
III. PROCEDURES
8 9 10
Reconciled purchase invoices and sales invoices to stock cards. Traced the reconciled amounts to the General Ledger of Inventory. Compared adjusted amount as per LCNRV to the computed ending inventory.
IV. FINDINGS
WP Ref
Unadjusted Balances Dr.
12/31/11
Total Balances
Adjustments
Cr.
Merchandise Inventory, November 30
F1.1
799,971
Purchases
F1.2
5,464,203
Dr. 799,971 5,464,203 F.4 F1.7
Purchase Discount Sales (at cost)
F1.4
1,861,387
1,861,387
370,773 2,328 F1.6 F1.7 F1.8
Loss on Inventory Merchandise Inventory, December 31
6,264,174
1,861,387
4,402,787
Merchandise Inventory, End per LCNRV Inventory Loss
PROPOSED ADJUSTING JOURNAL ENTRIES a.
Accounts Payable
4,109
Inventory To record purchase discount taken. b.
Inventory Cost of Sales To record decrease in Cost of Sales due to change in cost because of the purchase discount taken.
4,109
2,328 2,328
373,101
c.
d.
e.
Cost of Sales Inventory To record unrecorded Sales.
362,814
Losses in Inventory Inventory To record loss of inventory.
191,759
362,814
191,759
Cost of Sales Inventory To bring the Inventory account to its audited balance per LCNRV.
ERRORS NOTED: (to avoid confusion for future references) Purchase Book Inventory PI 1099 PI 127 Date PI 1095 PI 147 Terms PI 117 PI 120 PI 145 PI 147 PI 1100
F1.2 F1.2 F1.2 F1.2 F1.2 F1.2 F1.2 F1.2 F1.2
43,009 43,009
Per purchase book 111,136 F1.3 234,009 F1.3 12/18/2011 F1.3 12/15/2011 F1.3 2/10 n/45 F1.3 n/30 F1.3 1/10 n/30 F1.3 2500 down, n/15 F1.3 n/30 F1.3
Per Purchase Invoices 11,136 23,409 12/8/2011 12/26/2011 2/10 n/30 Cash 2/10 n/30 Cash Cash
All the mentioned errors above are mostly just typing errors. No adjustments were made for them because Grace Corp accounted for them accurately.
V. CONCLUSION With the exceptions of the adjusting entries and corrections recommended by the auditor, sufficient and appropriate evidence were gathered to support the assertions made.
F-1
Adjusted Balances Cr. 799,971 5,834,976 4,109
1,781
362,814
2,224,201
191,759
191,759
558,682
4,217,206
F3
4,149,747 (67,459)
Prepared by: Date:
ILW 2/15/2012 Reviewed by: Date: DBM 2/30/2012
F-1.1 ACCOUNT
DATE
Merchandise Inventory ITEM
2011 Nov. 30 Balance Dec. 8 Balance
ACCOUNT NO.
F
DEBIT
P PB 1
799,971.00 5,464,203.00 4,402,787.00
DATE
2011 Dec. 30
ITEM
F
GJ 13
106 CREDIT
P
1,861,387.00
F-1.4 Page 3 Date
Sold To
2011 Dec. 1 Eagle Contractors 3 Dynasty Construction 7 Sampolio Company 10 Benitez Merchandising 15 Ida Coronel 17 Luli Samson 22 Susan de Leon 23 Building Blocks, Inc. 27 Cora Tayag 29 Conteno, Antonio & Tantoco
Invoice # 1251 1252 1253 1254 1255 1256 1257 1258 1259 1260 1261 1262 1263
Amount 154,545.00 2,714.00 36,364.00 639,427.00 86,659.00 54,409.00 127,955.00 117,041.00 181,205.00 461,068.00 1,861,387.00
ACCOUNT NO.
4486-9156-80
ACCOUNT NAME
GRACE CORPORATION
PAY TO THE ORDER OF
GENIUS PAPER PRODUCTS
PESOS
Three hundred thousand pesos only
PCI Bank
__________________________
SUCAT ROAD BRANCH
Grac e
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
Payee:
GENIUS PAPER PRODUCTS
Amount in words:
Three hundred thousand pesos only
For
Downpayment fot merchandise purchased per Invoice No. 111
Date of Check:
Check No.:
December 2, 2011 Prepared by:
Checked By:
Approved by:
Received above amount P
by
:
Date :
ACCOUNT NO.
4486-9156-80
ACCOUNT NAME
PAY TO THE ORDER OF
SAPPHIRE CORPORATION
GRACE CORPORATION
Nine hundred seventy two thousand seven hundred fifty pesos
PESOS
PCI Bank
__________________________
SUCAT ROAD BRANCH
Grac e
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
Payee:
SAPPHIRE CORPORATION
Amount in words:
Nine hundred seventy two thousand seven hundred fi
For
Partial payment for Invoice No. 920
Date of Check:
Check No.:
December 5, 2011 Prepared by:
Checked By:
Approved by:
Received above amount P
by
:
Date :
ACCOUNT NO.
4486-9156-80
ACCOUNT NAME
GRACE CORPORATION
PAY TO THE ORDER OF
BUREAU OF INTERNAL REVENUE
PESOS
Thirty four thousand two hundred pesos only
PCI Bank SUCAT ROAD BRANCH
Grac e
CORPORATION
__________________________
Grac e
VAT 2011-002-148 | TIN 4004-009-175
Payee:
BUREAU OF INTERNAL REVENUE
Amount in words:
Thirty four thousand two hundred pesos o
For
Remittance of Novenber 2011 taxes withheld on wages
Date of Check:
Check No.:
December 7, 2011 Prepared by:
Checked By:
Approved by:
Received above amount P
by
:
Date :
ACCOUNT NO.
4486-9156-80
ACCOUNT NAME
GRACE CORPORATION
PAY TO THE ORDER OF
SOCIAL SECURITY SYSTEM
PESOS
Eighty seven thousand five hundred pesos only
PCI Bank
__________________________
SUCAT ROAD BRANCH
Grac e
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
Payee:
Amount in words:
SOCIAL SECURITY SYSTEM Eighty seven thousand five hundred pesos
For
Remittance of Medicare, SSS & ECC, Employer's and Employee's contribution
Date of Check:
Check No.:
December 9, 2011 Prepared by:
Checked By:
Approved by:
Received above amount P
by
:
Date :
ACCOUNT NO.
4486-9156-80
ACCOUNT NAME
GRACE CORPORATION
PAY TO THE ORDER OF
ARBOLEDA CO., INC.
PESOS
One hundred seventy five thousand pesos only
PCI Bank
__________________________
SUCAT ROAD BRANCH
Grac e
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
Payee:
ARBOLEDA CO., INC.
Amount in words:
One hundred seventy five thousand pesos
For
Partial paymenr for invoce No. 101
Date of Check:
Check No.:
December 10, 2011 Prepared by:
Checked By:
Approved by:
Received above amount P
by
:
Date :
ACCOUNT NO.
4486-9156-80
ACCOUNT NAME
GRACE CORPORATION
PAY TO THE ORDER OF
SAPPHIRE CORPORATION
PESOS
One hundred fourteen thousand nine hundred pesos only
PCI Bank
__________________________
SUCAT ROAD BRANCH
Grac e
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
Payee:
SAPPHIRE CORPORATION
Amount in words:
One hundred fourteen thousand nine hundred p
For
Partial paymenr for invoce No. 1082
Date of Check:
Check No.:
December 10, 2011 Prepared by:
Checked By:
Approved by:
Received above amount P
by
:
Date :
ACCOUNT NO.
4486-9156-80
ACCOUNT NAME
GRACE CORPORATION
PAY TO THE ORDER OF
ARBOLEDA CO., INC
PESOS
One million five hundred fifty four thousand five hundred pesos
PCI Bank
__________________________
SUCAT ROAD BRANCH
Grac e
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
Payee:
ARBOLEDA CO., INC
Amount in words:
One million five hundred fifty four thousand five hund
For
Full payment of account with Arboleda Co., Inc. per Invoice no. 90
Date of Check:
Check No.:
December 10, 2011 Prepared by:
Checked By:
Approved by:
Received above amount P
by
:
Date :
ACCOUNT NO.
4486-9156-80
ACCOUNT NAME
GRACE CORPORATION
PAY TO THE ORDER OF
CALTEX GAS
PESOS
Fourteen thousand pesos only
PCI Bank SUCAT ROAD BRANCH
Grac e
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
__________________________
Grac e Payee:
CALTEX GAS
Amount in words:
Fourteen thousand pesos only
For
560 liters gasoline
Date of Check:
Check No.:
December 12, 2011 Prepared by:
Checked By:
Approved by:
Received above amount P
by
:
Date :
ACCOUNT NO.
4486-9156-80
ACCOUNT NAME
GRACE CORPORATION
PAY TO THE ORDER OF
PAYMASTER
PESOS
One million eighty thousand pesos only
PCI Bank
__________________________
SUCAT ROAD BRANCH
Grac e
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
Payee:
CALTEX GAS
Amount in words:
One million eighty thousand pesos only
For
Salaries for December 1- 15, 2011 Total Less: SSS, Medicare & ECC HDMF Withholding taxes
1,238,760.00 (72,360.00) (21,600.00) (64,800.00)
Date of Check:
Check No.:
December 14, 2011 Prepared by:
Checked By:
Approved by:
Received above amount P
by
:
Date :
ACCOUNT NO.
4486-9156-80
ACCOUNT NAME
GRACE CORPORATION
PAY TO THE ORDER OF
GENIUS PAPER PRODUCTS
PESOS
Six hundred twenty five thousand pesos only
PCI Bank
__________________________
SUCAT ROAD BRANCH
Grac e
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
Payee:
GENIUS PAPER PRODUCTS
Amount in words:
Six hundred twenty five thousand pesos o
For
Partial payment per Invoice No. 130
Date of Check:
Check No.:
December 15, 2011 Prepared by:
Checked By:
Approved by:
Received above amount P
by
:
Date :
ACCOUNT NO.
4486-9156-80
ACCOUNT NAME
GRACE CORPORATION
PAY TO THE ORDER OF
MERALCO
PESOS
Thirteen thousand two hundred fifty pesos only
PCI Bank
__________________________
SUCAT ROAD BRANCH
Grac e
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
Payee:
MERALCO
Amount in words:
Thirteen thousand two hundred fifty pesos
For
Additional electric bill for November 2011
Date of Check:
Check No.:
December 15, 2011 Prepared by:
Checked By:
Approved by:
Received above amount P
by
:
Date :
ACCOUNT NO.
4486-9156-80
ACCOUNT NAME
GRACE CORPORATION
PAY TO THE ORDER OF
ARBOLEDA CO., INC.
PESOS
Eighty three thousand three hundred pesos only
PCI Bank SUCAT ROAD BRANCH
__________________________
Grac e
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
Payee:
ARBOLEDA CO., INC.
Amount in words:
Eighty three thousand three hundred pesos
For
Full payment of Invoice No. 117 Invoice Price Less:
Discount Balance
Date of Check:
P
85,000.00
P
1,700.00 83,300.00
Check No.:
December 20, 2011 Prepared by:
Checked By:
Approved by:
Received above amount P
by
:
Date :
ACCOUNT NO.
4486-9156-80
ACCOUNT NAME
GRACE CORPORATION
PAY TO THE ORDER OF
ARCHER SUPPLIES
PESOS
Five thousand pesos only
PCI Bank
__________________________
SUCAT ROAD BRANCH
Grac e
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
Payee:
Amount in words:
ARCHER SUPPLIES Five thousand pesos only
For
500 pieces plastic bags for store supplies
Date of Check:
Check No.:
December 21, 2011 Prepared by:
Checked By:
Approved by:
Received above amount P by
:
Date :
4486-9156-80
ACCOUNT NO.
ACCOUNT NAME
GRACE CORPORATION
PAY TO THE ORDER OF
GENIUS PAPER PRODUCTS
PESOS
Thirty two thousand five hundred pesos only
PCI Bank
__________________________
SUCAT ROAD BRANCH
Grac e
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
Payee:
GENIUS PAPER PRODUCTS
Amount in words:
Thirty two thousand five hundred pesos o
For
Partial payment of invoice no. 145 Invoice price
130,000.00
25% payment Balance
32,500.00 97,500.00
Date of Check:
Check No.:
December 26, 2011 Prepared by:
Checked By:
Approved by:
Received above amount P
by
:
Date :
4486-9156-80
ACCOUNT NO.
ACCOUNT NAME
GRACE CORPORATION
PAY TO THE ORDER OF
GENIUS PAPER PRODUCTS
PESOS
One hundred twenty five thousand three hundred fifteen pesos
PCI Bank
__________________________
SUCAT ROAD BRANCH
Grac e
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
Payee:
GENIUS PAPER PRODUCTS
Amount in words:
One hundred twenty five thousand three hundred fifte
For
Partial payment of invoice no. 140 Invoice price
127,875.00
Discount Balance
2,560.00 125,315.00
Date of Check:
Check No.:
December 26, 2011 Prepared by:
Checked By:
Approved by:
Received above amount P by
:
Date :
ACCOUNT NO.
PAY TO THE
4486-9156-80
ACCOUNT NAME
GRACE CORPORATION
ORDER OF
GENIUS PAPER PRODUCTS
PESOS
Twenty five thousand pesos only
PCI Bank
__________________________
SUCAT ROAD BRANCH
Grac e
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
Payee:
GENIUS PAPER PRODUCTS
Amount in words:
Twenty five thousand pesos only
For
Full payment of asccount with Arboleda Co., Inc per Invoice No. 90
Date of Check:
Check No.:
December 26, 2011 Prepared by:
Checked By:
Approved by:
Received above amount P by
:
Date :
ACCOUNT NO.
4486-9156-80
ACCOUNT NAME
GRACE CORPORATION
PAY TO THE ORDER OF
ARBOLEDA CO., INC.
PESOS
Twenty five thousand four hundred ninety pesos only
PCI Bank SUCAT ROAD BRANCH
Grac
__________________________
Grac e
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
Payee:
ARBOLEDA CO., INC.
Amount in words:
Twenty five thousand four hundred ninety pes
For
Full payment of Invoice No. 127 Invoice price
25,750.00
Discount Balance
260.00 25,490.00
Date of Check:
Check No.:
December 26, 2011 Prepared by:
Checked By:
Approved by:
Received above amount P by
:
Date :
ACCOUNT NO.
4486-9156-80
ACCOUNT NAME
GRACE CORPORATION
PAY TO THE ORDER OF
XYZ ADS
PESOS
Thirteen thousand three hundred twenty five pesos only
PCI Bank
__________________________
SUCAT ROAD BRANCH
Grac e
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
Payee:
Amount in words: For
100 pieces brochures
XYZ ADS
Thirteen thousand three hundred twenty five pe
Date of Check:
Check No.:
December 27, 2011 Prepared by:
Checked By:
Approved by:
Received above amount P by
:
Date :
ACCOUNT NO.
4486-9156-80
ACCOUNT NAME
GRACE CORPORATION
PAY TO THE ORDER OF
SAPPHIRE CORPORATION
PESOS
Eighty five thousand pesos only
PCI Bank
__________________________
SUCAT ROAD BRANCH
Grac e
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
Payee:
XYZ ADS
Amount in words:
Eighty five thousand pesos only
For
In payment for Invoice No. 1095
Date of Check:
Check No.:
December 28, 2011 Prepared by:
Checked By:
Approved by:
Received above amount P by
:
Date :
ACCOUNT NO.
4486-9156-80
ACCOUNT NAME
GRACE CORPORATION
PAY TO THE ORDER OF
PAYMASTER
PESOS
Nine hundred forty two thousand eight hundred forty pesos onl
PCI Bank
__________________________
SUCAT ROAD BRANCH
Grac e
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
Payee:
PAYMASTER
Amount in words:
Nine hundred forty two thousand eight hundred fort
For
Payroll for December 16-31 Less: SSS, Medicare & ECC Withholding Taxes HDMF
1,101,600.00 (72,360.00) (64,800.00) (21,600.00)
Date of Check:
Check No.:
December 30, 2011 Prepared by:
Checked By:
Approved by:
Received above amount P by
:
Date :
ACCOUNT NO.
4486-9156-80
ACCOUNT NAME
PAY TO THE ORDER OF
MERALCO
PESOS
Eighty five thousand pesos only
GRACE CORPORATION
PCI Bank
__________________________
SUCAT ROAD BRANCH
Grac e
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
Payee:
MERALCO
Amount in words:
Eighty five thousand pesos only
For
Meralco bill for the period December 1-31 2011
Date of Check:
Check No.:
January 3, 2012 Prepared by:
Checked By:
Approved by:
Received above amount P by
:
Date :
ACCOUNT NO.
4486-9156-80
ACCOUNT NAME
GRACE CORPORATION
PAY TO THE ORDER OF
GENIUS PAPER PRODUCTS
PESOS
Two hundred forty nine thousand seven hundred fifty pesos only
PCI Bank SUCAT ROAD BRANCH
Grac e
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
__________________________
Grac e Payee:
GENIUS PAPER PRODUCTS
Amount in words:
Two hundred forty nine thousand seven hundred fift
For
In payment of purchases
Date of Check:
Check No.:
January 3, 2012 Prepared by:
Checked By:
Approved by:
Received above amount P by
:
Date :
ACCOUNT NO.
4486-9156-80
ACCOUNT NAME
GRACE CORPORATION
PAY TO THE ORDER OF
PCI BANKARD, INC.
PESOS
Ninety seven thousand pesos only
PCI Bank
__________________________
SUCAT ROAD BRANCH
Grac e
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
Payee:
PCI BANKARD, INC.
Amount in words: For
Representation expenses of the president incurred in December 2011
Ninety seven thousand pesos only
Date of Check:
Check No.:
January 3, 2012 Prepared by:
Checked By:
Approved by:
Received above amount P by
:
Date :
ACCOUNT NO.
4486-9156-80
ACCOUNT NAME
GRACE CORPORATION
PAY TO THE ORDER OF
MUNICIPALITY OF MANILA
PESOS
Seventy thousand pesos only
PCI Bank
__________________________
SUCAT ROAD BRANCH
Grac e
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
Payee:
MUNICIPALITY OF MANILA
Amount in words:
Seventy thousand pesos only
For
Property taxes for 2011
Date of Check:
Check No.:
January 4, 2012 Prepared by:
Checked By:
Approved by:
Received above amount P by
:
Date :
ACCOUNT NO.
4486-9156-80
ACCOUNT NAME
GRACE CORPORATION
PAY TO THE ORDER OF
PHILIPPINE LONG DISTANCE COMPANY
PESOS
Fifteen thousand pesos only
PCI Bank
__________________________
SUCAT ROAD BRANCH
Grac e
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
Payee:
PHILIPPINE LONG DISTANCE COMPANY
Amount in words:
Fifteen thousand pesos only
For
Telephone bill for December 2011
Date of Check:
Check No.:
January 4, 2012 Prepared by:
Checked By:
Approved by:
Received above amount P by
:
Date :
ACCOUNT NO.
4486-9156-80
ACCOUNT NAME
GRACE CORPORATION
PAY TO THE ORDER OF
MWSS
PESOS
Forty eight thousand five hundred pesos only
PCI Bank SUCAT ROAD BRANCH
__________________________
Grace
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
Payee:
MWSS Amount in words:
Forty eight thousand five hundred pesos o
For
Water bill for December 2011
Date of Check:
Check No.:
January 4, 2012 Prepared by:
Checked By:
Approved by:
Received above amount P by
:
Date :
ACCOUNT NO.
4486-9156-80
ACCOUNT NAME
GRACE CORPORATION
PAY TO THE ORDER OF
ARBOLEDA CO., INC
PESOS
One hundred forty three thousand four hundred fifty pesos only
PCI Bank
__________________________
SUCAT ROAD BRANCH
Grac e
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
Payee:
Amount in words: For
ARBOLEDA CO., INC
One hundred forty three thousand four hundred fift
In payment of purchases
Date of Check:
Check No.:
January 4, 2012 Prepared by:
Checked By:
Approved by:
Received above amount P by
:
Date :
F-1.5 12345
CHECK NO.
DATE
December 2, 2011
300,000.00
P
__________________________
No.
CASH VOUCHER
300
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph Date:
December 2, 2011
usand pesos only
P
300,000.00
12345
d above amount P
CHECK NO.
DATE
P
12346
December 5, 2011
972,750.00
ndred fifty pesos only __________________________
No.
CASH VOUCHER
301
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph Date:
December 5, 2011
d seven hundred fifty pesos only
P
972,750.00
12346
d above amount P
CHECK NO.
DATE
12347
December 7, 2011
34,200.00
P
__________________________
CASH VOUCHER
No.
302
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689
Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph Date:
December 7, 2011
o hundred pesos only
P
34,200.00
12347
d above amount P
CHECK NO.
DATE
12348
December 9, 2011
87,500.00
P
__________________________
CASH VOUCHER
No.
303
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph Date:
December 9, 2011
ve hundred pesos only
P
87,500.00
12348
d above amount P
12349
CHECK NO.
DATE
December 10, 2011
175,000.00
P
__________________________
No.
CASH VOUCHER
304
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph Date:
December 10, 2011
e thousand pesos only
d above amount P
P
175,000.00
12349
12350
CHECK NO.
DATE
December 10, 2011
114,900.00
P
pesos only __________________________
No.
CASH VOUCHER
305
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph Date:
December 10, 2011
nd nine hundred pesos only
P
114,900.00
12350
d above amount P
CHECK NO.
DATE
12351
December 10, 2011
P
ve hundred pesos only
1,554,500.00
__________________________
No.
CASH VOUCHER
306
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph Date:
December 10, 2011
housand five hundred pesos only
P
1,554,500.00
12351
d above amount P
CHECK NO.
DATE
12352
December 12, 2011
14,000.00
P
__________________________
CASH VOUCHER
No.
307
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph
Date:
December 12, 2011
nd pesos only
P
14,000.00
12352
d above amount P
CHECK NO.
DATE
12353
December 14, 2011
1,080,000.00
P
__________________________
CASH VOUCHER
No.
308
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph Date:
December 14, 2011
ousand pesos only
P
1,080,000.00
12353
d above amount P
12354
CHECK NO.
DATE
December 15, 2011
625,000.00
P
__________________________
No.
CASH VOUCHER
309
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph Date:
December 15, 2011 thousand pesos only
d above amount P
P
625,000.00
12354
12355
CHECK NO.
DATE
December 15, 2011
13,250.00
P
__________________________
No.
CASH VOUCHER
310
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph Date:
December 15, 2011
undred fifty pesos only
P
13,250.00
12355
d above amount P
CHECK NO.
DATE
P
12356
December 20, 2011
83,300.00
__________________________
No.
CASH VOUCHER
311
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph Date:
December 20, 2011
ee hundred pesos only
P
83,300.00
12356
d above amount P
CHECK NO.
DATE
12357
December 21, 2011
5,000.00
P
__________________________
CASH VOUCHER
No.
312
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph Date:
December 21, 2011 pesos only
P
5,000.00
12357
d above amount P
12358
CHECK NO.
DATE
December 26, 2011
32,500.00
P
__________________________
No.
CASH VOUCHER
313
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph Date:
December 26, 2011
e hundred pesos only
d above amount P
P
32,500.00
12358
12359
CHECK NO.
DATE
December 26, 2011
125,315.00
P
red fifteen pesos only __________________________
No.
CASH VOUCHER
314
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph Date:
December 26, 2011
three hundred fifteen pesos only
P
125,315.00
12359
d above amount P
CHECK NO.
DATE
12360
December 26, 2011
25,000.00
P
__________________________
No.
CASH VOUCHER
315
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph Date:
December 26, 2011
and pesos only
P
25,000.00
12360
d above amount P
CHECK NO.
DATE
12361
December 26, 2011
25,490.00
P
__________________________
CASH VOUCHER
No.
316
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph Date:
December 26, 2011
undred ninety pesos only
P
25,490.00
12361
d above amount P
CHECK NO.
DATE
12362
December 27, 2011
13,325.00
P
pesos only __________________________
CASH VOUCHER
No.
317
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph Date:
December 27, 2011
dred twenty five pesos only
P
13,325.00
12362
d above amount P
12363
CHECK NO.
DATE
December 28, 2011
85,000.00
P
__________________________
No.
CASH VOUCHER
318
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph Date:
December 28, 2011
and pesos only
d above amount P
P
85,000.00
12363
12364
CHECK NO.
DATE
December 30, 2011
942,840.00
P
ed forty pesos only __________________________
No.
CASH VOUCHER
319
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph Date:
December 28, 2011
eight hundred forty pesos only
P
942,840.00
12364
d above amount P
CHECK NO.
DATE
P
12365
January 3, 2012
85,000.00
__________________________
No.
CASH VOUCHER
320
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph Date:
January 3, 2012
and pesos only
P
85,000.00
12365
d above amount P
CHECK NO.
DATE
12366
January 3, 2012
249,750.00
P
ed fifty pesos only __________________________
CASH VOUCHER
No.
321
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph
Date:
January 3, 2012
seven hundred fifty pesos only
P
249,750.00
12366
d above amount P
CHECK NO.
DATE
12367
January 3, 2012
97,000.00
P
__________________________
CASH VOUCHER
No.
322
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph Date:
December 26, 2011
sand pesos only
P
97,000.00
12367
d above amount P
12368
CHECK NO.
DATE
January 4, 2012
70,000.00
P
__________________________
No.
CASH VOUCHER
323
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph Date:
January 4, 2012
nd pesos only
P
70,000.00
12368
d above amount P
CHECK NO.
12369
DATE
January 4, 2012
15,000.00
P
__________________________
No.
CASH VOUCHER
324
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph Date:
January 4, 2012
d pesos only
P
15,000.00
12369
d above amount P
CHECK NO.
DATE
P
12370
January 4, 2012
48,500.00
__________________________
No.
CASH VOUCHER
325
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph Date:
January 4, 2012
e hundred pesos only
P
48,500.00
12370
d above amount P
12371
CHECK NO.
DATE
January 4, 2012
143,450.00
P
ed fifty pesos only __________________________
CASH VOUCHER
No.
326
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph Date:
d four hundred fifty pesos only
January 4, 2012
d above amount P
P
143,450.00
12371
GRACE CORPORATION
F-1.6
Purchase Discounts December 31, 2011
Invoice Number 117 140 127
CV Number 311 314 257
Discount Taken 1700 2560 260
Net of Input Tax 1545 2327 236
4520
4109
Due to the Purchase Discount, there was a change in cost per item of the related invoices. Invoice Number 117 140 140 127
Item BIC Ballpen - Blue Cartolina Art Paper Pilot Pen
Old Cost 8.5 8.5 145 103
New Cost 8.33 8.33 142.1 101.96
F1
GRACE CORPORATION Recalculation of Cost of Sales December 31, 2011
Invoice number
Invoice Number
Items
Quantity
Cost
Item Total
Invoice Total (Net of Input Tax)
1251 Plain Pencil - Mongol
1250
70.00
87,500.00
250
90.00
22,500.00
Silver Paper Clips
10
35.00
350.00
Blackie Carbon Paper
20
100.00
2,000.00
Whitey Bond Paper
150
130.00
19,500.00
Milky Onion Skin
200
110.00
22,000.00
Bic Ballpen - Black
750
8.50
6,375.00
Bic Ballpen - Blue
750
8.33
6,247.50
Bic Ballpen - Red
400
8.50
3,400.00
Charcoal Pencil - Steadler
169,872.50
₱154,430
1252 Fastener
350
1.00
350.00
Folder - regular
350
2.50
875.00
Elmer's Glue
60
22.50
1,350.00
Roll-O Typewriter Ribbon
20
20.50
410.00
2,985.00 1253 Quink Ink
70
57.00
3,990.00
Pilot Fountain Pen
70
101.96
7,137.20
100 20
130.00 100.00
13,000.00 2,000.00
Whitey Bond Paper Blackie Carbon Paper
1251 1252 1253 1254 1255 1256 1257 1258 1259 1260 1261 1262 1263
₱2,714
1264 1265 1266
Milky Onion Skin 10 Column Worksheet - Vernal 12 Column Worksheet - Vernal
80 50 50
110.00 50.00 50.00
8,800.00 2,500.00 2,500.00
39,927.20
Difference per discount: ₱36,297
1254 Plain Pencil - Mongol Charcoal Pencil - Staedler 16 column worksheet - vernel 14 column worksheet - vernel 12 column worksheet - vernel 10 column worksheet - vernel Yellow paper - Old Mill Bond Paper - Whitey Onion Skin - Milky Cartolina Plastic Cover Art Paper Folder - Regular Folder - Long
800.00 700.00 500.00 500.00 500.00 500.00 1500.00
70.00 90.00 50.00 50.00 50.00 50.00 30.00
500.00 700.00 300.00 2500.00 250.00 500.00 500.00
130.00 110.00 8.33 17.50 142.10 2.50 3.50
56000.00 63000.00 25000.00 25000.00 25000.00 25000.00 45000.00 65000.00 77000.00 2499.00 43750.00 35525.00 1250.00 1750.00
490774.00 1255 Plain pencil- mongol thumbtacks - golden Elemer's glue Carbon paper - blackie Typewriter Ribbon - Roll-o scissors thick notebook thin notebook Bic ballpen - black Bic ballpen - blue Bic Ballpen - red Fastener
100.00 150.00 300.00 150.00 240.00 300.00 1500.00 1000.00 2500.00 2500.00 2500.00 1000.00
35.00 40.00 22.50 100.00 20.50 12.00 32.50 27.50 8.50 8.33 8.50 1.00
3500.00 6000.00 6750.00 15000.00 4920.00 3600.00 48750.00 27500.00 21250.00 20825.00 21250.00 1000.00
₱446,158
Difference per error in cost of sales shee
Intermediate Pad - old mill Ink - Quink
1500.00 150.00
15.00 57.00
22500.00 8550.00
211395.00
₱192,177
1256 scissors Fountain pen - pilot thumbtacks - golden paper clips - silver cartolina 16 column worksheet 14 column worksheet 12 column worksheet 10 column worksheet
-
200 50 20 20 150 300 500 400 500
vernal vernal vernal vernal
12.00 101.96 40.00 35.00 8.33 50.00 50.00 50.00 50.00
2,400.00 5,098.00 800.00 700.00 1,249.50 15,000.00 25,000.00 20,000.00 25,000.00
95,247.50
₱86,589
1257 Intermediate Pad - Old Mill Yellow Paper - Old Mill Onion Skin - milky Bond Paper - Whitey Scissors Thick Notebook Thin Notebook
250 450 100 100 50 300 300
15 30 110 130 12 32.5 27.5
3750 13500 11000 13000 600 9750 8250 59850
1258 Intermediate Pad - Old Mill Yellow Paper - Old Mill Plastic Cover Cartolina Folder - regular Folder - long Leaf notebook - Thick Bind Notebook - Thin Fastener Scissors
1500 1250 1300 450 250 274 300 300 500 150
15 30 17.5 8.33 2.5 3.5 32.5 27.5 1 12
22500 37500 22750 3748.5 625 959 9750 8250 500 1800
₱54,409
Art Paper Elmer's Glue
200 150
142.1 22.5
28420 3375 140177.5
₱127,434
16800 10800 1050 800 4000 1230 2082.5 2125 1275 2100 1500 8156.8 51919.3
₱47,199
1200 8550 1350 26000 39600 76700
₱69,727
1259 Plain Pencil - Mongol Charcoal Pencil - Staedler Silver Paper Clips Golden Thumbstacks Blackie Carbon Paper Roll-O Typewriter Ribbon Bic Ballpen - Blue Bic Ballpen - Black Bic Ballpen - Red Folder - Long Folder - Regular Pilot Fountain Pen
240 120 30 20 40 60 250 250 150 600 600 80
70 90 35 40 100 20.5 8.33 8.5 8.5 3.5 2.5 101.96
1260 Fastener Quick Ink Elmer's Glue Bond Paper - Whitey Onion Skin - Milky
1200 150 60 200 360
1 57 22.5 130 110
1261 Plain Pencil - Mongol Charcoal Pencil - Staedler Silver Paper Clips Golden Thumbstacks Intermediate pad - old mill Yellow Paper - Old Mill Cartolina Elmer's Glue 10 CW
50 100 50 50 500 500 250 120 500
70 90 35 40 15 30 8.33 22.5 50
3500 9000 1750 2000 7500 15000 2082.5 2700 25000
12 CW 14 CW 16 CW
500 500 500
50 50 50
25000 25000 25000 143532.5
₱130,484
6375 6247.5 6375 14625 22000 55622.5
₱50,566
1262 Bic Ballpen - Black Bic Ballpen - Blue Bic Ballpen - Red Thick Notebook Thin Notebook
750 750 750 450 800
8.5 8.33 8.5 32.5 27.5
1263 10 CW 12 CW 14 CW 16 CW Type writer Ribbon Plain Pencil - Mongol Charcoal Pencil - Staedler Bic Ballpen - Black Bic Ballpen - Blue Bic Ballpen - Red Yellow Paper - Old Mill Bond Paper - whitey Carbon Paper - Blackie
1500 1250 2000 1250 100 500 250 1250 1250 750 1200 600 60
50 50 50 50 20.5 70 90 8.5 8.33 8.5 30 130 100
75000 62500 100000 62500 2050 35000 22500 10625 10412.5 6375 36000 78000 6000 506962.5
₱460,875 ₱1,859,060
1264 Charcoal Pencil - Staedler Bond Paper - Whitey Bic Ballpen - Black Bic Ballpen - Blue Bic Ballpen - Red
500 300 1500 1500 500
90 130 8.5 8.33 8.5
45000 39000 12750 12495 4250 113495
₱103,177
SALES 1265 Elmer's Glue Typewriter Ribbon - Roll-O Bond Paper - Whitey
1600 1200 500
22.5 20.5 130
36000 24600 65000 125600
₱114,182
30000 130000 160000
₱145,455
1266 Yellow Paper - Old Mill Bond Paper - Whitey
1000 1000
30 130
F-1.7 Cost of Sales Balances per sales invoice per Cost of Sales Sheet (GJ 13)
154,545 2,714 36,364 639,427 86,659 54,409 127,955 117,041 181,205 461,068 1,861,387
Cost of Sales Balances per Sales invoice per auditors' recalculation
154,430 2,714 36,297 446,158 192,177 86,589 54,409 127,434 47,199 69,727 130,484 50,566 460,875 1,859,058 103,177 114,182 145,455 2,221,872
ce per discount:
ce per error in cost of sales sheet:
2,328.18 F1 F1 362,814
STOCK CARD Pencil Mongol Plain
ITEM DESCRIPTION
REFERENCE
DATE
PURCHASE INV.
SALES INV.
2011 Nov. Dec.
30 Balance 1 PI 101 4 12 26 30 31 31 29 31 1/4/2012 final adjustment
RECEIVED
5,000 SI SI SI SI SI SI SI
1251 1254 1259 1261 1265 1265 1255
STOCK CARD ITEM DESCRIPTION
DATE
2011 Nov. Dec.
Pencil Steadler charcoal REFERENCE PURCHASE INV.
30 3 PI 1082 4 12 26 30 31 29 PI 7729 29
SALES INV.
RECEIVED
5,000 SI SI SI SI SI
1251 1254 1259 1261 1265 500
SI 1263
31 1/4/2012
STOCK CARD Ballpen BIC-Red
ITEM DESCRIPTION
REFERENCE
DATE
PURCHASE INV.
SALES INV.
2011 Nov. Dec.
30 Balance 1 PI 101 4 12 26 30 31 30 31 29 PI 101 30 31 1/3/2012 1/3/2012 PI 770 1/4/2012 final adjustment
RECEIVED
7,500 SI SI SI SI SI SI SI
1251 1254 1259 1262 1263 1259 1263
90 1,500
SI 1264 SI 1267 2,000
STOCK CARD ITEM DESCRIPTION
DATE
2011 Nov. Dec.
Ballpen BIC-Blue REFERENCE PURCHASE INV.
30 Balance 4 12 16 PI 117 26 30
SALES INV.
RECEIVED
SI 1251 SI 1255 10,000 SI 1259 SI 1262
31 29 PI 7729 30 31 1/3/2012 PI 770 1/3/2012 1/4/2012
SI 1263 1,500 SI 1264 3,000 SI 1267
STOCK CARD Ballpen BIC-Black
ITEM DESCRIPTION
REFERENCE
DATE
PURCHASE INV.
SALES INV.
2011 Nov. Dec.
30 Balance 4 12 18 PI 1095 26 30 31 29 PI 7729 30 31 1/3/2012 PI 770 1/3/2012 1/4/2012
RECEIVED
SI 1251 SI 1254 10,000 SI 1259 SI 1262 SI 1263 1,500 SI 1264 2,500 SI 1267
STOCK CARD ITEM DESCRIPTION
DATE
2011 Nov. Dec.
Fountain Pen Pilot REFERENCE PURCHASE INV.
30 Balance 7 17 24 PI 127 26
SALES INV.
RECEIVED
SI 1253 SI 1256 250 SI 1259
31 1/4/2012 final djustment
STOCK CARD ITEM DESCRIPTION
DATE
Worksheet Vernal - 16 columns REFERENCE PURCHASE INV.
SALES INV.
2011 Nov. Dec.
30 Balance 2 PI 117 12 17 30 31 31 1/4/2012
RECEIVED
15,000 SI SI SI SI
1254 1256 1261 1263
STOCK CARD ITEM DESCRIPTION
DATE
Worksheet Vernal - 14 columns REFERENCE PURCHASE INV.
SALES INV.
2011 Nov. Dec.
30 Balance 2 PI 111 12 17 30 31 31 1/4/2012
STOCK CARD
RECEIVED
13,500 SI SI SI SI
1254 1256 1261 1263
ITEM DESCRIPTION
DATE
Worksheet Vernal - 12 columns REFERENCE PURCHASE INV.
SALES INV.
2011 Nov. Dec.
30 Balance 6 PI 127 10 12 17 30 31 30 31 1/4/2012
RECEIVED
17,000 SI SI SI SI SI SI
1253 1254 1256 1261 1263 1261
STOCK CARD ITEM DESCRIPTION
DATE
Worksheet Vernal - 10 columns REFERENCE PURCHASE INV.
SALES INV.
2011 Nov. 30 Balance Dec. 6 PI 127 10 12 17 30 31 31 1/4/2012
RECEIVED
15,000 SI SI SI SI SI
1253 1254 1256 1261 1263
STOCK CARD ITEM DESCRIPTION
DATE
Pad Paper Old Mill - intermediate REFERENCE PURCHASE INV.
SALES INV.
RECEIVED
2011 Nov. 30 Balance Dec. 10 PI 130 12 19 23 30 31 1/4/2012
7,500 SI SI SI SI
1255 1257 1258 1261
STOCK CARD Pad Paper Old Mill - yellow
ITEM DESCRIPTION
REFERENCE
DATE
PURCHASE INV.
SALES INV.
2011 Nov. Dec.
30 Balance 10 PI 130 12 19 23 30 31 30 30 PI 825 31 1/3/2012 PI 770 1/3/2012 1/4/2014
RECEIVED
8,500 SI SI SI SI SI SI
1254 1257 1258 1261 1263 1266 1,000 250
SI 1268
STOCK CARD ITEM DESCRIPTION
DATE
2011 Nov. Dec.
Bond Paper Whitey REFERENCE PURCHASE INV.
30 Balance 4
SALES INV.
SI 1251
RECEIVED
10 PI 130
4,250 SI SI SI SI SI
12 17 26 31 29 PI 7729 30 PI 825 30 30 30 31 1/3/2012 PI 770 1/3/2012 1/4/2012
1253 1254 1257 1260 1263 1,300 500
SI 1265 SI 1266 SI 1264 100 SI 1268
STOCK CARD ITEM DESCRIPTION
DATE
Onion Skin Milky REFERENCE PURCHASE INV.
SALES INV.
2011 Nov. Dec.
30 Balance 4 8 10 PI 130 12 19 26 31 1/4/2012 final adjusment
RECEIVED
SI 1251 SI 1253 3,000 SI 1254 SI 1257 SI 1260
100
STOCK CARD Cartolina
ITEM DESCRIPTION
DATE
REFERENCE PURCHASE INV.
SALES INV.
RECEIVED
2011 Nov. Dec.
30 Balance 12 17 20 PI 130 23 30 20 PI 140 31 1/4/2012 fInal adjustment
SI 1254 SI 1256 2,250 SI 1258 SI 1261 250
STOCK CARD Plastic Cover
ITEM DESCRIPTION
REFERENCE
DATE
PURCHASE INV.
SALES INV.
2011 Nov. Dec.
30 Balance 9 PI 112 12 23 31 1/4/2012
RECEIVED
5,000 SI 1254 SI 1258
STOCK CARD Art Paper
ITEM DESCRIPTION
DATE
2011 Nov. Dec.
REFERENCE PURCHASE INV.
30 Balance 12 20 PI 140 23 20 PI 140 31
SALES INV.
RECEIVED
SI 1254 750 SI 1258 1,250
1/4/2012 final adjustment
STOCK CARD ITEM DESCRIPTION
DATE
Ink Quink REFERENCE PURCHASE INV.
SALES INV.
RECEIVED
2011 Nov. Dec.
30 Balance 7 PI 107 10 12 26 31 1/4/2012 final adjustment
600 SI 1253 SI 1255 SI 1260
20
STOCK CARD ITEM DESCRIPTION
DATE
Folder Regular REFERENCE PURCHASE INV.
2011 Nov. Dec.
30 Balance 7 12 15 PI 135 23 26 31 1/4/2012 final adjustment
STOCK CARD ITEM
Folder
SALES INV.
RECEIVED
SI 1252 SI 1254 2,500 SI 1258 SI 1259
100
DESCRIPTION
DATE
Long REFERENCE PURCHASE INV.
SALES INV.
2011 Nov. Dec.
30 Balance 12 15 PI 135 23 26 31 1/4/2012 final adjustment
RECEIVED
SI 1254 2,000 SI 1258 SI 1259
STOCK CARD ITEM DESCRIPTION
DATE
Paper Clips Silver REFERENCE PURCHASE INV.
SALES INV.
2011 Nov. Dec.
30 Balance 4 12 17 23 PI 1099 26 30 23 PI 1099 31 1/4/2012 final adjustment
RECEIVED
SI 1251 SI 1255 SI 1256 250 SI 1259 SI 1261 100
10
STOCK CARD ITEM DESCRIPTION
DATE
Thumb Tacks Golden REFERENCE PURCHASE INV.
SALES INV.
RECEIVED
2011 Nov. Dec.
30 Balance 4 12 17 23 PI 1099 26 30 4 23 PI 1099 12 PI 1090 31 1/4/2012 final adjustment
SI 1251 SI 1255 SI 1256 250 SI 1259 SI 1261 SI 1251 (250) 350
40
STOCK CARD ITEM DESCRIPTION
DATE
Glue Elmer's REFERENCE PURCHASE INV.
SALES INV.
2011 Nov. Dec.
30 Balance 7 12 23 26 29 PI 130 30 30 PI 825 30 31 1/4/2012 final adjustment
SI SI SI SI
RECEIVED
1252 1255 1258 1260 850
SI 1261 1,600 SI 1265
STOCK CARD ITEM DESCRIPTION
DATE
Carbon paper Blackie REFERENCE
RECEIVED
DATE
PURCHASE INV.
SALES INV.
2011 Nov. Dec.
30 Balance 4 8 12 26 PI 147 26 30 31 1/4/2012
RECEIVED
SI 1251 SI 1253 SI 1255 450 SI 1259 SI 1263
STOCK CARD Typewritter Ribbon Rollo-O
ITEM DESCRIPTION
REFERENCE
DATE
PURCHASE INV.
SALES INV.
2011 Nov. Dec.
30 Balance 7 12 26 27 PI 1100 31 30 PI 805 30 31 1/4/2012 final adjustment
RECEIVED
SI 1252 SI 1255 SI 1259 650 SI 1263 1,200 SI 1265
STOCK CARD Scissors
ITEM DESCRIPTION
DATE
2011 Nov.
REFERENCE PURCHASE INV.
30 Balance
SALES INV.
RECEIVED
Dec.
3 PI 1082 12 17 19 23 31 1/4/2012
800 SI SI SI SI
1251 1253 1255 1259
STOCK CARD Notebook Leaf Thick
ITEM DESCRIPTION
REFERENCE
DATE
PURCHASE INV.
SALES INV.
2011 Nov. Dec.
30 Balance 12 19 22 PI 145 23 31 31 1/4/2012
RECEIVED
SI 1255 SI 1257 4,000 SI 1258 SI 1262
STOCK CARD ITEM DESCRIPTION
DATE
2011 Nov. Dec.
Notebook Bind Thin REFERENCE PURCHASE INV.
30 Balance 12 19 23 28 PI 151 30 12
SALES INV.
RECEIVED
SI 1255 SI 1257 SI 1258 6,000 SI 1262 SI 1255
19 23 30 31 1/4/2012
SI 1257 SI 1258 SI 1262
STOCK CARD Fastener
ITEM DESCRIPTION
DATE
2011 Nov. Dec.
REFERENCE PURCHASE INV.
30 Balance 12 19 22 PI 120 23 31 31 1/4/2012
SALES INV.
RECEIVED
SI 1252 SI 1255 5,000 SI 1258 SI 1260
F-1.8 1001 box
STOCK NO. UNIT
ISSUED
BALANCE
200 5,200 3,950 3,150 2,910 2,860 2,360 2,860 2,760 2,760 2,360 2,360
1,250 800 240 50 500 (500) 100
400
1002 box
STOCK NO. UNIT
ISSUED
BALANCE
250 700 120 100 500 250
100 5,100 4,850 4,150 4,030 3,930 3,430 3,930 3,680
3,680 3,680
1003 piece
STOCK NO. UNIT
ISSUED
BALANCE
500 8,000 7,600 5,100 4,860 4,710 3,960 4,050 3,450 4,950 4,450 4,450 2,450 4,450 3,450 3,450
400 2,500 240 150 750 600 500 2,000
1,000
1004 piece
STOCK NO. UNIT
ISSUED
BALANCE
750 2,500 250 750
4,000 3,250 750 10,750 10,500 9,750
1,250
8,500 10,000 8,500 8,500 11,500 8,500 8,500
1,500
3,000
1005 piece
STOCK NO. UNIT
ISSUED
BALANCE
5,000 4,250 1,750 11,750 11,500 10,750 9,500 11,000 9,500 9,500 12,000 9,500 9,500
750 2,500 250 750 1,250 1,500
2,500
1006 piece
STOCK NO. UNIT
ISSUED
BALANCE
70 50 80
200 130 80 330 250
250 230 230
20
1007 pads
STOCK NO. UNIT
ISSUED
BALANCE
100 15,100 14,600 14,300 13,800 12,550 12,550 12,550
500 300 500 1,250
1,008
STOCK NO.
pads
UNIT
ISSUED
BALANCE
500 500 500 2,000
200 13,700 13,200 12,700 12,200 10,200 10,200 10,200
1009 pads
STOCK NO. UNIT
ISSUED
BALANCE
100 17,100 17,050 16,550 16,150 15,950 14,700 14,400 14,400 14,400
50 500 400 200 1,250 300
1010 pads
STOCK NO. UNIT
ISSUED
BALANCE
200 15,200 15,150 14,650 14,150 13,650 12,150 12,150 12,150
50 500 500 500 1,500
STOCK NO. UNIT
ISSUED
1011 pads
BALANCE
100 7,600 6,100 5,850 4,350 3,850 3,850 3,850
1,500 250 1,500 500
1012 pads
STOCK NO. UNIT
ISSUED
BALANCE
200 8,700 7,200 6,750 5,500 5,000 3,800 2,800 3,800 3,800 4,050 3,800 3,800
1,500 450 1,250 500 1,200 1,000
250
1013 reams
STOCK NO. UNIT
ISSUED
BALANCE
150
200 50
4,300 4,200 3,700 3,600 3,400 2,800 4,100 4,600 4,100 3,100 2,800 2,800 2,900 2,800 2,800
100 500 100 200 600
500 1,000 300
100
1014 reams
STOCK NO. UNIT
ISSUED
BALANCE
300 100 20 3,020 2,320 2,220 1,860 1,860 1,960 1,960
200 80 700 100 360
STOCK NO. UNIT
ISSUED
1015 rolls
BALANCE
500 200 50 2,300 1,850 1,600 1,850 1,850 1,540 1,540
300 150 450 250
310
1,016
STOCK NO.
meters
UNIT
ISSUED
BALANCE
100 5,100 2,600 1,300 1,300 1,300
2,500 1,300
1017 reams
STOCK NO. UNIT
ISSUED
BALANCE
250 200
300 50 800 600 1,850 1,850
600 600
1,250
1018 bottle
STOCK NO. UNIT
ISSUED
BALANCE
100 700 630 480 330 330 350 350
70 150 150
1019 piece
STOCK NO. UNIT
ISSUED
BALANCE
350 500 250 600
STOCK NO.
1,000 650 150 2,650 2,400 1,800 1,800 1,900 1,900
1,020
piece
UNIT
ISSUED
BALANCE
600 100 2,100 1,850 1,250 1,250 1,200 1,200
500 250 600
50
1021 box
STOCK NO. UNIT
ISSUED
BALANCE
150 140 40 20 270 240 190 290 290 300 300
10 100 20 30 50
STOCK NO. UNIT
ISSUED
1022 box
BALANCE
200 190 40 20 270 250 200 210 (40) 310 310 350 350
10 150 20 20 50 (10)
1023 bottle
STOCK NO. UNIT
ISSUED
BALANCE
600 540 240 90 30 880 760 2,360 760 760 660 660
60 300 150 60 120 1,600
100
STOCK NO. UNIT
ISSUED
1024 bottle
BALANCE
ISSUED
BALANCE
200 180 160 10 460 420 360 360 360
20 20 150 40 60
1025 box
STOCK NO. UNIT
ISSUED
BALANCE
600 580 340 280 930 830 2,030 830 830 630 630
20 240 60 100 1,200
200
STOCK NO. UNIT
ISSUED
1026 pair
BALANCE
50
850 550 350 300 150 150 150
300 200 50 150
1027 piece
STOCK NO. UNIT
ISSUED
BALANCE
2,000 500 200 4,200 3,900 3,450 3,450 3,450
1,500 300 300 450
1028 piece
STOCK NO. UNIT
ISSUED
BALANCE
4,000 1,200 1,200 3,200 (3,000)
7,000 3,000 1,800 600 6,600 3,400 6,400
(900) (900) (2,400)
7,300 8,200 10,600 10,600 10,600
1029 piece
STOCK NO. UNIT
ISSUED
BALANCE
350 1,000 500 1,200
1,500 1,150 150 5,150 4,650 3,450 3,450 3,450
GRACE CORPORATION Observation of Physical Count December 31, 2011
I. OBJECTIVES 1 2 3
To obtain evidence of the existence and condition of the inventory and the security of its storage To observe how the client company conducts the inventory count To test the accuracy of the counting
1 2 3
Existence Completeness Accuracy
1 2 3 4 5 6
Read inventory count manual Performed inventory count on selected inventory items Collected the physical inventory list Footed and cross footed the recorded quantity per stock cards Traced transactions recorded on the stock cards with corresponding purchase and sales invoices Completed the test count sheet
II. ASSERTIONS
III. PROCEDURES
F-2
IV. FINDINGS
INVENTORY COUNT SHEET DATE OF COUNT:
CLIENT'S NAME
STOCK LOCATION
JANUARY 4, 2012
GRACE CORPORATION
BALANCE SHEET DATE:
STORE
DECEMBER 31, 2011 DESCRIPTION
QUANTITY AUDITOR'S
BRAND & STOCK
UNIT
STOCK
COUNT
PER CLIENT'S
WP REF
PER COUNT
WP REF
COUNT LIST
DIFFERENCE
REMARKS
Bic Ballpen - Red
pcs.
3,450
F1.8
###
F2.1
3,450
0
Sale of 2500 pieces recorded on December 12 was erroneusly referred to IS 1254. Proper ref - 1255.
- Blue
pcs.
8,500
F1.8
###
F2.1
8,500
0
Ok.
- Black
pcs.
9,500
F1.8
###
F2.1
9,500
0
Sale of 2500 pieces recorded on December 12 was erroneusly referred to IS 1254. Proper ref - 1255.
Charcoal Pencil
box
3,680
F1.8
###
F2.1
3,680
0
Error in recording a sale of 250 boxes on December 31 as 500 boxes, and should be with reference to SI 1263 and not SI 1265.
Plain Pencil
box
2,360
F1.8
###
F2.1
2,360
0
Error in referring sale of 500 boxes recorded on December 31 to SI 1265. Proper ref - SI 1263.
Whitey Bond paper Yellow pad
ream pad
2,800 3,800
F1.8 F1.8
### ###
F2.1 F2.1
2,800 3,800
0 0
Glue Elmer's
botl.
660
F1.8
F2.1
660
-
Roll-O Typewiter ribbo
box
630
F1.8
F2.1
630
-
760 -
Ok. Ok. Not recorded in any of the sales invoices. Possibility of theft. No stock card.
Calculator - fx-39 - fx-40 - hl-807 Max Stapler Worksheet - 16 columns - 14 columns
pcs. pcs. pcs. pcs.
0 0 0 5
F1.8 F1.8 F1.8 F1.8
pads pads
12,550 10,200
F1.8 F1.8
- 12 columns
pads
14,400
- 10 columns
pads
12,150
F2.1 F2.1 F2.1 F2.1
0 0 0 5
-
No stock card. No stock card. No stock card. No stock card.
12,550 10,200
F2.1 F2.1
12,550 10,200
0 0
Ok. Ok.
F1.8
14,700
F2.1
14,400
(300)
Sale of 500 pads dated November 30 with ref to SI 1261 was recorded in the stock card as 200.
F1.8
12,100
F2.1
12,150
50
Error in footing.
TAKEN BY
-
SHEET NO. _____ OF _____ SHEETS
AUDITOR'S
CLIENT'S
REPRESENTATIVE
REPRESENTATIVE
COMPLETE CHECK
ü FOR AUDITOR
TEST CHECK
FOR CLIENT
LEGEND: ö
V. CONCLUSION
-
Compared the per-transaction amounts recorded on the stock cards to that of the referred purchase and sales invoices.
The performed inventory counts (by both the auditor and the client) have proven the existence of the different inventory items of the company, and that the quantity as per auditor's count and as per client's count are accurate. However, some balances that were recorded on the stock cards are either incorrect or referring to the wrong Sales Invoice. Moreover, the missing inventory of 100 bottles of glue with no record in any of the company's sales invoices for the month is a possible indication of theft. Some stock cards were not available for audit as well.
Prepared by: JGN Reviewed by: MZB
Date: 1/12/2012 Date: 1/16/2012
ö ö ö
ö
ö ö ö ö ö
ö ö ö ö ö ö ö ö
per s Invoice. ards
GRACE CORPORATION Physical Inventory List January 4, 2012 UNIT COST ITEM
BRAND
(VAT Inclusive)
Plain Pencil Charcoal Pencil Red Ballpen Blue Ballpen Black Ballpen
Mongol Staedler Bic Bic Bic
Fountain Pen Worksheet 16 columns 14 columns 12 columns 10 columns Intermediate pad Yello Pad Bond Paper Onion Skin Cartolina Plastic Cover Art Paper Ink Regular Folder Long Folder Paper Clips Thumbtacks Glue Carbon Paper Typewriter Ribbon Scissors Thick Notebook Thin Notebook Fastener Envelope - short Envelope - long Calculator fx-39 fx-40
Pilot
103.50
Vernal Vernal Vernal Vernal Old Mill Old Mill Whitey Milky
50.00 50.00 50.00 50.00 15.00 30.00 130.00 110.00 9.00 17.50 150.00 57.00 2.50 3.50 30.00 40.00 22.50 100.00 20.50 12.00 32.50 27.50 1.10 2.50 3.50
Quink Carona Carona Silver Golden Elmer's Blackey Roll-O Mayon
Carona Carona Casio Casio
P
70.00 90.00 8.50 8.50 8.50
1,800.00 2,000.00
UNITS
2,360 3,680 3,450 8,500 9,500
boxes boxes pieces pieces pieces
230 pieces 12,550 10,200 14,400 12,150 3,850 3,800 2,800 1,960 1,540 1,300 600 350 1,900 1,200 300 350 660 360 630 150 3,450 10,600 3,450 0 0
pads pads pads pads pads pads reams reams rolls meters reams bottles pieces pieces boxes boxes bottles boxes boxes pairs pieces pieces pieces pieces pieces
0 pieces 0 pieces
hl-807 Stapler
Casio Max
1,000.00 152.50
0 pieces 5 pieces
F-2.1 TOTAL
P
165,200.00 331,200.00 29,325.00 72,250.00 80,750.00 23,690.00 627,500.00 510,000.00 720,000.00 607,500.00 57,750.00 114,000.00 360,000.00 215,600.00 13,500.00 22,750.00 90,000.00 18,240.00 4,750.00 4,200.00 9,000.00 12,800.00 14,850.00 36,000.00 12,915.00 1,800.00 112,125.00 227,900.00 37,950.00
P
762.50 4,522,787.00
1015 1016 1017 1018 1019 1020 1021 1022 1023 1024 1025 1026 1027 1028 1029 no stock card no stock card no stock card no stock card no stock card no stock card
Cartolina Plastic Cover Art Paper Ink Regular Folder Long Folder Paper Clips Thumbtacks Glue Carbon Paper Typewriter Ribbon Scissors Thick Notebook Thin Notebook Fastener Envelope - short Envelope - long Calculator fx-39 fx-40 hl-807 Stapler
TOTAL Input VAT Total Ending Inventory, net of tax
Quink Carona Carona Silver Golden Elmer's Blackie Roll-O Mayon
F2.1 F2.1 F2.1 F2.1 F2.1 F2.1 F2.1 F2.1 F2.1 F2.1 F2.1 F2.1 F2.1 F2.1 F2.1 F2.1 F2.1 F2.1 F2.1 F2.1 F2.1
We assumed that cost is equal to NRV. LEGEND: ꭖ ꭖ
Footed Extended
V. CONCLUSIONS
PAS 2 Inventories state that measurement of inventories should be at the lower of cost and net realizable The objective to determine whether inventories are properly measured in accordance with PAS have been The inventories are properly valued where we assumed that cost is equal to NRV.
1,540 1,300 600 350 1,900 1,200 300 350 660 360 630 150 3,450 10,600 3,450
F1.6 F1.3 F1.6 F1.3 F1.3 F1.3 F1.6 F1.3 F1.3 F1.3 F1.3 F1.3 F1.3 F1.3
0 0
F1.3 F2.1 F2.1
0 0 0 5
F2.1 F2.1 F2.1 F2.1
8.33 17.50 142.10 57.00 2.50 3.50 35.00 40.00 22.50 100.00 20.50 12.00 32.50 27.50 1.00 2.50 3.50 1,800.00 2,000.00 1,000.00 152.50
12,828.20 22,750.00 85,260.00 19,950.00 4,750.00 4,200.00 10,500.00 14,000.00 14,850.00 36,000.00 12,915.00 1,800.00 112,125.00 291,500.00 3,450.00
8.33 17.50 142.10 57.00 2.50 3.50 35.00 40.00 22.50 100.00 20.50 12.00 32.50 27.50 1.00 2.50 3.50
-
1,800.00 2,000.00 1,000.00 152.50
762.50
### ### ### ### ### ### ### ### ### ### ### ### ### ### ꭃ ### ꭃ ꭃ ꭃ ꭃ ꭃ ꭃ ꭃ ꭃ ꭃ ꭃ ꭃ ꭃ ꭃ ꭃ ꭃ ꭃ ꭃ ꭃ ### ꭃ ꭃ
₱
4,564,721.50 ꭃ
₱
(414,974.68) 4,149,746.82 F-1
t and net realizable value. with PAS have been met.
Prepared by: RIT Reviewed by: BAG
Date: 2/23/2012 Date: 2/28/2012
GRACE CORPORATION Purchase Cut-Off December 31, 2011
I. OBJECTIVE 1
To determine that all transactions relative to purchases have been recorded in the proper accounting period
2
To determine that all recorded transactions relative to purchases exist.
1
Completeness
2
Cut-off
3
Existence
1
Examined all purchase and sales invoices from December 2011 to January 4, 2012.
2
Traced purchases invoices to the purchase book to determine whether the purchase transactions are recorded in the proper accounting
3
Traced sales invoices to the sales book to determine whether the sales transactions are recorded in the proper accounting period.
II. ASSERTIONS
III. PROCEDURES
IV. FINDINGS
SALES TRANSACTIONS
Date
SALES INVOICE
TERMS
1251
2/10. n/30
Eagle Contractors
E-1.3
1252
2/10. n/30
Dynasty Construction
E-1.3
4,625
1253
2/10. n/30
Sampollo Company
E-1.3
58,035
r
1254
2/10. n/30
Benitez Merchandising
E-1.3
711,950
r
E-1.3
309,525
rc
E-1.3
138,285
rc
CLIENT
AMOUNT
2011 Dec 1
₱
246,825
r
rc
3 7 10
1255
15 1256
2/10, n/30
Ida Coronel
17
1257
2/10, n/30
Luli Samson
E-1.3
86,850
23
1258
2/10, n/30
Susan de Leon
E-1.3
204,975
23
1259
Cash
E-1.3
75,085
r
1260
Cash
E-1.3
111,395
r
1261
2/10, n/30
Buillding Blocks, Inc. Buillding Blocks, Inc. Cora Tayag
E-1.3
208,600
r
1262
2/10, n/30
E-1.3
81,275
r
1263
2/10,n/30
Centeno, Antonio & Tantoco
E-1.3
736,000
r
1264
C.O.D
Eagle Contractors
E-1.5
165,550
r
1265
C.O.D
Dynasty Construction
E-1.5
186,250
r
1266
2/10,n/30
Benitez Merchandising
E-1.5
232,000
r
27
Cora Tayag
r
rc
29 30
CUT OFF 2012 Jan
3
1267
C.O.D
1268
2/10,n/30
*
Benitez Merchandising Luli Samson
E-1.5
93,750
r
E-1.5
29,725
r
Adjusting entries already recorded in procedure 1.
PURCHASE TRANSACTIONS
PURCHASE INVOICES
SUPPLIER
DATE
AMOUNT PER INVOICE
101
Arboleda Co., Inc.
12/1/2011
F-1.2
111
Genius Paper Products
12/2/2011
F-1.2
1082
Sapphire Corporation
12/3/2011
F-1.2
127
Genius Paper Products
12/6/2011
F-1.2
107
Arboleda Co., Inc.
12/7/2011
F-1.2
112
Arboleda Co., Inc.
12/9/2011
F-1.2
130
Genius Paper Products
12/10/2011
F-1.2
1090
Sapphire Corporation
12/12/2011
F-1.2
135
Genius Paper Products
12/15/2011
F-1.2
117
Arboleda Co., Inc.
12/16/2011
F-1.2
1095
Sapphire Corporation
12/8/2011
F-1.2
140
Genius Paper Products
12/20/2011
F-1.2
120
Arboleda Co., Inc.
12/21/2011
F-1.2
145
Genius Paper Products
12/22/2011
F-1.2
1099
Sapphire Corporation
12/23/2011
F-1.2
127
Arboleda Co., Inc.
12/24/2011
F-1.2
147
Genius Paper Products
12/15/2011
F-1.2
1100
Sapphire Corporation
12/27/2011
F-1.2
151
Genius Paper Products
12/28/2011
F-1.2
130
Arboleda Co., Inc.
12/29/2011
F-1.2
Genius Paper Products
12/29/2011
F-1.3
7729
825
Arboleda Co., Inc.
12/30/2011
F-1.3
1/3/2011
F-1.3
CUT OFF
Sapphire Corporation
Proposed Adjusting Entries: ₱
Inventory
229,318 22,932
Input Tax
₱
Accounts Payable- Genius Paper Products
252,250
To record purchase on account made on December 29, 2011.
Inventory
141,455
Input Tax
14,145
Accounts Payable- Arboleda Co., Inc. To record purchase on account made on December 30, 2011.
c
Verified computation
r
Vouched with sales invoice
155,600
q
Vouched with purchase invoice
V. CONCLUSIONS
Except for the three unrecorded sales in December (Sales Invoice No. 1264, 1265, and 1266) and two unrecorded purchases (Purchase Invoice 77
month, other sales and purchase transactions are recorded in the proper accounting period. Necessary adjusting entries are proposed by the aud are noted.
ecorded in the proper accounting period.
e proper accounting period.
F-4
PROPERLY RECORDED
REMARKS
YES
No exceptions noted
YES
Total amount of SI should be P4,625 but recorded as 46.25.
YES
No exceptions noted
YES
No exceptions noted
YES
Correct amount is 309, 450 but recorded as 309250. Corrections made in Procedure E-1
YES
Immaterial difference of 10 exists due to a mistake in footing the Sales Invoice. Corrections made in Procedure E-1.
YES
No exceptions noted
YES
Correct amount is 202, 975 but recorded as 204, 475 due to a mistake in footing the Sales Invoice. Corrections made in Procedure E-1.
YES
No exceptions noted
YES
No exceptions noted
YES
No exceptions noted
YES
No exceptions noted
YES
No exceptions noted
NO
Adjusting entries are recommended
* NO
Adjusting entries are recommended
NO
Adjusting entries are recommended
* *
YES
No Exceptions Noted
YES
No Exceptions Noted
AMOUNT PER INVOICE
P R O P E R L Y
R E C Y O ₱ 376,136 E R S Y D 1,295,455 E E Y S D 417,818 E Y S 1,454,545 E S
REMARKS
No Exceptions Noted No Exceptions Noted No Exceptions Noted No Exceptions Noted
31,091 79,545 1,136,364 12,727 12,045 77,273 77,273 116,250 4,545 118,182 11,136 23,409 40,909
Y E Y S E Y S E Y S E Y S E Y S E Y S E Y S E Y S E Y S E Y S E Y S E Y S E S
No Exceptions Noted No Exceptions Noted No Exceptions Noted No Exceptions Noted No Exceptions Noted No Exceptions Noted No Exceptions Noted No Exceptions Noted No Exceptions Noted No Exceptions Noted No Exceptions Noted No Exceptions Noted No Exceptions Noted
Amount in the invoice showed a Ytotal amount of Php 19,125 gross 12,114 Eof input tax but correctly recorded S by the entity at Php 12,114 net of input tax. Y 150,000 E No Exceptions Noted Y S 17,386 E No Exceptions Noted S 229,318NOAdjusting entries recommended
141,455NOAdjusting entries recommended
No Exceptions Noted
ed purchases (Purchase Invoice 7729 and 825) on the same
g entries are proposed by the auditor. No other exceptions
Prepared by:
Date:
LCC
2/1/2012
Reviewed by:
Date:
DBM
2/5/2012
GRACE CORPORATION Analytical Procedures - Inventory December 31, 2011
I. OBJECTIVES 1 2 3
To determine the validity of inventory account balances. To determine significant ratios in the accounts related to inventory transactions. To evaluate fluctuations or unusual changes on the inventory account balances.
1
Accuracy
1
Obtained audited financial information from comparable prior periods and audited balances of accounts related to inventories as of December 31, 2011. Computed significant financial ratios for both prior and current period audited financial information. Compared differences between prior and current period ratios. Evaluated the company's performance based on the financial analysis ratios.
II. ASSERTIONS
III. PROCEDURES
2 3 4
F-5
IV. FINDINGS Grace Corporation Analytical Review Ratios For the Period Ended December 31, 2011 December 31, 2009 700,000 F -
December 31, 2010 December 31, 2011 900,000 F-3 4,149,747 29% 361%
Inventory, End Percent Increase (Decrease)
F
Net Sales Percent Increase (Decrease)
UA
47,916,000 UA
53,439,000 UA 12%
110,957,707 108%
Cost of Sales Percent Increase (Decrease)
VA
29,085,000 VA -
34,785,500 VA 20%
57,050,382 64%
Gross Profit
18,831,000
Inventory Turnover Days in Inventory
Gross Profit Margin
18,653,500
53,907,325
-
21.74
11.30
-
16.79
32.31
39%
35%
49%
It is observed in the ratios displayed above that there is a substantial increase of 361% in the ending balance of inventory which means that the company has invested in more inventories and thus resulting to an increase in net sales of 108%. However, there is a signficant decline in the company's inventory turnover this year which could indicate a decrease in the company's efficiency in inventory management. On the other hand, this could indicate that the company had taken advantage of the prior year's high turnover by investing in more inventories in order to avoid lost orders. It is also observed that there is a significant increase in the number of days the company takes in clearing its inventory. This may be an indication that the company may have invested too much on inventories. But, considering the increase in the company's gross profit margin, we can infer that the increase in inventory levels had not resulted to an unfavorable company performance this year.
III. CONCLUSION The objectives for this procedure were met. Inventory account balances were found to be reasonable based on the evaluation made on the significant financial ratios above. No exceptions noted.
Prepared by: BAG Reviewed by: RIT
Date: 2/21/2012 Date: 2/26/2012
F-5
Date: 2/21/2012 Date: 2/26/2012
Unadjusted balances Adjustments:
TOTAL
ADJUSTED BALANCES Net Sales COS 110,244,403 Debit -1363.6363636364 -300000 -68 9 210909 484000 150500 169318.181818182 ###
-2,328 362,814 43,009
403,495
GRACE CORPORATION Inspection of PPE December 31, 2011
I. OBJECTIVES 1
To determine whether property, plant, and equipment included in
1
Existence
1 2 3 4
Obtained a list of property, plant and equipment that the compan Selected certain property, plant and equipment to inspect Went to the location of the chosen propery, plant and equipment Inspected the selected property, plant and equipment
II. ASSERTIONS
III. PROCEDURES
IV. FINDINGS
Classification
Type
Land
2,000 square meters more or less
Building
2,000 square meters
Furniture & Fixture
Air Conditioning System
Delivery Vans
Isuzu Crewcab
Office Equipment
Olympia Electric Typewriter SN 41226
III. CONCLUSION No exceptions noted.
K-1
ment included in the statement of financial position physically exist
hat the company owns or leases
and equipment
Inspected
Remarks
√
Exists
√
Exists
√
Exists
√
Exists
√
Exists
Prepared by: MGM Reviewed by: JGN
Date: 3/15/2012 Date: 3/17/2012
GRACE CORPORATION Schedule of Plant, Property & Equipme December 31, 2011 Ledger Classification Land
Description A parcel of land, Lot 4, Blk 2 of the consolidation-subdivision plan PCS 12456 situated in Sucat, Municipality of Parañaque, Province of Rizal containing an area of two thousand (2,000) square meters more or less
Building
2,000 sq.m. concrete building
Additional improvements
Furniture & Fixture
80 showcases for the store @ P 5,000 40 office tables & 40 office chairs @ P 24,000 10 conference tables with 80 chairs 30 four-drawer steel cabinets
1 office safe fire proof Hobart
50 venetian blinds FineLine
Air-conditioning System
Delivery
6 Isuzu Crewcab
Vans
Model 1993, Motor #123456 Chassis #821618
Office Equipment
10 Personal Computers Pentium 6 SN 41226
SN 41231
41227
41232
41228
41233
41229
41234
41230
41235
Olympia Electric Typewriter SN 41226 18" Carriage. Model 142C Olympia Electric Typewriter SN 528376 12" Carriage. Model 215 10 Electric Fans SN 15381
SN 15386
15382
15387
15383
15388
15384
15389
15385
15390
«
Footed/Cross-Footed
ß Ώ
Extended Traced to General Ledger
K-1.1
GRACE CORPORATION e of Plant, Property & Equipment December 31, 2011 Reference/ Date CV-11-182
Estimated Life from Acquisition Date
Cost P
16,500,000.00
Ώ
11.02.2010
CV-11-182
33,000,000.00
20 years
11.02.2010 20,000,000.00
CV-1-5 01.05.2011 P
53,000,000.00
Ώ
«
CV-6-2 06.01.2010
400,000.00
ß
40 years
CV-6-3 06.02.2010
480,000.00
ß
5 years
CV-8-10 08.20.2010
600,000.00
CV-7-10 07.10.2010
240,000.00
CV-7-11 07.11.2010
280,000.00
CV-8-13 08.15.2010
320,000.00
1,230,000.00
CV-3-16 08.18-2010
CV-12-20 12.20-2010
P
3,550,000.00
Ώ
P
6,000,000.00
Ώ
« 10 years
CV-8-01 08.01-2010
2,050,000.00
CV-8-02 08.01-2010
25,000.00
10 years
CV-8-03 08.01-2010
25,000.00
10 years
CV-8-03 08.01-2010
30,000.00
5 years
d/Cross-Footed
d to General Ledger
P
2,130,000.00
5 years
Ώ
«
GRACE CORPORATION Vouching of Acquisitions and Disposals December 31, 2011
I. OBJECTIVES 1 2
To determine that all property, plant, and equipment recorded in the To determine that all property, plant, and equipment are reported at
1 2
Existence Valuation
1 2 3
Obtained property, plant, and equipment balances as of January 1, 2 Obtained Schedule of Property, Plant, and Equipment accounts. Verified amounts recorded in general ledger control accounts by exa a. Investigated amounts of items listed in the Schedule of Pro b. Checked footings, cross-footings, and extensions. Noted current year acquisitions and/or additions and disposals.
II. ASSERTIONS
III. PROCEDURES
4
IV. FINDINGS
Balance per Ledger, as of January 1, 2011
PPE Item
Land Building Furnitures & Fixtures Transportation Equipment Office Equipment Total PPE
K-2.1 K-2.1 K-2.1 K-2.1 K-2.1
16,500,000 33,000,000 K-1.1 3,550,000 6,000,000 2,130,000 61,180,000
LEGEND:
2
1 2 3
Vouched to Schedule of PPE
Property, plant, and equipment items are found to be recorded a Additions in building account of P20,000,000 represent additiona There are no further acquisitions and disposals this year.
However, certain items are to be noted. The supporting document gi Furthermore, some items when crossfooted are wrong, but the audit as it was presented in the 2009, 2010 and 2011 balances.
III. CONCLUSION
The existence of all property, plant, and equipment items recorded in the St were properly valued at its cost. No adjustments were made. No exceptions
ipment recorded in the Statement of Financial Position exists. ipment are reported at the appropriate amount.
ances as of January 1, 2011 and as of December 31, 2011 uipment accounts. ontrol accounts by examining Schedule of Property, Plant, and Equipment accounts. d in the Schedule of Property, Plant and Equipment. nd extensions. ns and disposals.
Acquisitions or Additions
20,000,000
Balance per Ledger, as of Dec 2011
Disposals
2
K-1.1 K-1.1 K-1.1 K-1.1 K-1.1
Adjustments Dr.
16,500,000
2
53,000,000
2
3,550,000
2
6,000,000
2
2,130,000
2
81,180,000
Cr.
hedule of PPE
found to be recorded at their historical costs as per Schedule of Property, Plant and Equipment. 000 represent additional improvements made this year and was capitalized. osals this year.
upporting document given indicated the date of the cash voucher and not the acquisition date. re wrong, but the auditors decide that the item description was at fault so the balance remained correct 11 balances.
tems recorded in the Statement of Financial Position were determined. It was also determined that property, plant, and equ e made. No exceptions noted.
K-2
Balance per Audit, as of December 31, 2011 16,500,000 53,000,000 3,550,000 6,000,000 2,130,000 81,180,000
mained correct
ned that property, plant, and equipment items
Prepared by: BAG Reviewed by: JGN
Date: 2/14/2012 Date: 2/16/21012
ACCOUNT
DATE
Land ITEM
F
2011 Nov. 30 Balance
ACCOUNT
DATE
P
DATE
ACCOUNT
DATE
ITEM
F
DATE
DEBIT
P
53,000,000.00
Accumulated Depreciation - Building ITEM
F
DEBIT
Furniture and Fixture ITEM
F
2011 Nov. 30 Balance
ACCOUNT
16,500,000.00
Building
2011 Nov. 30 Balance
ACCOUNT
DEBIT
DEBIT
P
3,550,000.00
Accumulated Depreciation - Furniture and Fixture ITEM
F
DEBIT
ACCOUNT
DATE
Transportation Equipment ITEM
F
2011 Nov. 30 Balance
ACCOUNT
DATE
ACCOUNT
DATE
P
DATE
6,000,000.00
Accumulated Depreciation - Transportation Equipment ITEM
F
DEBIT
F
DEBIT
Office Equipment ITEM
2011 Nov. 30 Balance
ACCOUNT
DEBIT
P
2,130,000.00
Accumulated Depreciation - Office Equipment ITEM
F
DEBIT
K-2.1 ACCOUNT NO.
DATE
ITEM
F
CREDIT
ACCOUNT NO.
DATE
ITEM
F
ITEM
2011 Dec. 31
F
GJ 14
ITEM
P
F
2011 Dec. 31
ITEM
F
GJ 14
650,000.00
203 CREDIT
ACCOUNT NO.
DATE
202-A CREDIT
ACCOUNT NO.
DATE
202 CREDIT
ACCOUNT NO.
DATE
201
203-A CREDIT
P
355,000.00
Balance
355,000.00
ACCOUNT NO.
DATE
ITEM
quipment
F
CREDIT
ACCOUNT NO.
DATE
ITEM
2011 Dec. 31
F
GJ 12
ITEM
P
F
2011 Dec. 31
ITEM
F
GJ 12
1,200,000.00
205 CREDIT
ACCOUNT NO.
DATE
204-A CREDIT
ACCOUNT NO.
DATE
204
205-A CREDIT
P
426,000.00
GRACE CORPORATION Capitalization of Property, Plant and Equipment December 31, 2011
I. OBJECTIVES 1 2
To determine that property, plant and equipment transactions a To determine that capitalizable costs of property, plant and equi
1
Completeness
1 2 3 4
Obtained Schedule of Plant, Property & Equipment Selected sample items of property, plant & equipment for tracin Checked footings and extended the amounts Traced the property, plant & equipment accounts reflected on th
II. ASSERTIONS
III. PROCEDURES
IV. FINDINGS
Ledger Classification Land
Building
Furniture & Fixture
Delivery Vans
Office Equipment
LEGEND:
Ώ ß
After extending the amounts recorded in the Schedule of PPE, we fo its total amount. Due to insufficient supporting documents, we ass
III. CONCLUSION
The 2011 additional improvement in Building is capitalized and is n PPE. Transactions in relation with property, plant and equipement a the Schedule of PPE, the number of items of office tablets and chai are noted.
ORPORATION
operty, Plant and Equipment
e that property, plant and equipment transactions are recorded e that capitalizable costs of property, plant and equipment are included and are not expensed.
hedule of Plant, Property & Equipment mple items of property, plant & equipment for tracing tings and extended the amounts roperty, plant & equipment accounts reflected on the schedule to the General Ledger
Description A parcel of land, Lot 4, Blk 2 of the consolidation-subdivision plan PCS 12456 situated in Sucat, Municipality of Parañaque, Province of Rizal containing an area of two thousand (2,000) square meters more or less
K-1.1
2,000 sq.m. Concrete building
K-1.1
Additional improvements
K-1.1
80 showcases for the store @ P 5,000 40 Office tablets & 40 office chairs @ P24000 1 office safe fire proof Hobart
K-1.1 K-1.1 K-1.1
Air conditioning System
K-1.1
Isuzu Crewcab Model 1993, Motor #123456 Chassis #821618
K-1.1
10 Personal Computers Pentium 6 SN 41226 41227 41228 41229 41230
K-1.1 SN 41231 41232 41233 41234 41235 K-1.1
10 Electric Fans SN 15381 15382 15383 15384 15385
SN 15386 15387 15388 15389 15390
Traced to General Ledger Extended
amounts recorded in the Schedule of PPE, we found out that the 40 office tablets and 40 office chairs does not c ue to insufficient supporting documents, we assumed that the amount recorded in the schedule is correct.
improvement in Building is capitalized and is not expensed. No repair and maintenance expense and leases as relation with property, plant and equipement are also recorded in the general ledger. Upon applying the audit p , the number of items of office tablets and chairs does not correspond with its total amount. Other than that, n
K-3
₱
Cost 16,500,000.00
Ώ
₱
33,000,000.00
Ώ
₱
20,000,000.00
Ώ
₱ ₱ ₱
400,000.00 480,000.00 280,000.00
ß ß
Ώ Ώ Ώ
₱
1,230,000.00
Ώ
₱
60,000,000.00
Ώ
₱
2,050,000.00
Ώ
₱
30,000.00
Ώ
ts and 40 office chairs does not correspond to in the schedule is correct.
ntenance expense and leases associated with edger. Upon applying the audit procedure in otal amount. Other than that, no exceptions
Prepared by: RIT Reviewed by: LCC
Date: 4/1/2012 Date: 4/5/2012
GRACE CORPORATION Property, Plant and Equipment Review December 31, 2011
I. OBJECTIVES 1 2
To determine the legal ownership of property, plant and equipment. To determine that property, plant and equipment were properly reco
1 2
Presentation and Disclosure Rights and Obligation
II. ASSERTIONS
III. PROCEDURES 1 2 3 4
Obtained Schedule of Plant, Property & Equipment Obtained copy of contracts, agreement, loans and the like relating t Reviewed the loan agreement on property and equipment. Examined evidence of legal ownership of property and equipment.
IV. FINDINGS
Ledger Classification Land
Description A parcel of land, Lot 4, Blk 2 of the consolidation-subdivision plan PCS 12456 situated in Sucat, Municipality of Parañaque, Province of Rizal containing an area of two thousand (2,000) square meters more or less
Building
2,000 sq.m. Concrete building Additional improvements
Furniture & Fixture
80 showcases for the store @ P 5,000 40 Office tablets & 40 office chairs @ P24000 10 conference tablets with 80 chairs 30 four-drawer steel cabinets 1 office safe fire proof Hobart 50 venetian blinds FineLine Air conditioning System
Delivery Vans
Isuzu Crewcab Model 1993, Motor #123456 Chassis #821618
Office Equipment
10 Personal Computers Pentium 6 Olympia Electric Typewriter 18" Carriage. Model 142C Olympia Electric Typewriter 12" Carriage. Model 215 10 Electric Fans
After reviewing the contracts, agreements and loans recorded in connection with PPE, w was Land. No reclassification of the account is needed but the disclosure of the fact is n
III. CONCLUSION
No exceptions noted. Sufficient and appropriate evidence were gathered to su
K-4
plant and equipment. ent were properly recorded and disclosed.
and the like relating to PPE. d equipment. perty and equipment.
ription
k 2 of the consoli-
Cost
Pledged as Collateral, Lien, Endorsed, Etc.
16,500,000.00 C-3.1
Yes
33,000,000.00
No
20,000,000.00
No
CS 12456 situated arañaque, Province a of two thousand
e @ P 5,000
400,000.00
No
ce chairs @ P24000
480,000.00
No
600,000.00
No
240,000.00
No
280,000.00
No
320,000.00
No
1,230,000.00
No
60,000,000.00
No
2,050,000.00 25,000.00
No
25,000.00
No
30,000.00
No
No
connection with PPE, we found out that the only property being pledged as collaterral for a bank loan closure of the fact is needed.
ce were gathered to support the assertions made.
Prepared by: MZB Reviewed by: LCC
Date: 4/1/2012 Date: 4/5/2012
1. We hereby report that at the close of business on
DECEMBER 31, 2011 our records showed the following balances to the
CREDIT
of the abovementioned client: AMOUNT
DESCRIPTION
ACCOUNT NUMBER
14,267,272 Regular Checking Acct.
INTERES RATE (P.A.)
775
Regular Checking Acct. Savings Acct. 6,500,000 Time Deposits
18%
2. Direct liabilities, assets and related balances of said clients as at the date above mentioned date were as follows: (attached details by LC) AMOUNT
ACCOUNT
PESO
FOREIGN CURRENCY
Acceptance Drafts Trust Receipts Marginal Deposits Special Time Deposits Import Letters of Credit Domestic Letters of Credit
3. We further report that the acove-mentioned client was directly liable to us by way of overdrafts, loans, etc. at the close of business on that d AMOUNT
DESCRIPTION OF LIABILITY
DATE GRANTED
10,000,000 Loans
DUE DATE
2011
2005
12.28
12.28
Other (Specify) 4. Other direct and/or contingent liabilities were: AMOUNT
DECRIPTION OF ACCOUNT
NAME OF MAKER
Except as stated above, according to our records, said client had no other account with us at the above-mentioned date. Date filled in:
Jan. 2, 2005
C-3.1 Grace Corporation
Re:
balances to the
CREDIT INTEREST
RATE (P.A.)
PAID UP TO
18%
maturity
RESTRICTION ON WITHDRAWAL OF AMOUNT AND OTHER REMARKS
1 year% Due Date: June 30, 2005
5. Other accounts with the bank on that date were: (details attached)*
a) b) c) d)
Securities held for safekeeping Items held for collection Trust accounts Others (specify)
he close of business on that date as follows: INTEREST RATE (P.A.)
PAID UP TO
21%
12.28
DESCRIPTION OF COLLATERALS, LIENS, ENDORSERS, ETC. OTHER REMARKS
2005
NAME OF MAKER
Land
K-4
DUE DATE
DATE OF NOTE
REMARKS
ve-mentioned date. Yours Truly, Bank: By:
PCIB
Jbiao Comptroller
GRACE CORPORATION Recomputation of Depreciation Expense December 31, 2011
I. OBJECTIVES 1 2
To ascertain that depreciation was properly computed. To ascertain that the depreciation expense and accumulated deprec
1 2
Valuation Presentation and Disclosure
1 2 3 4 5
Obtained a copy of supporting documents for each item PPE. Examined the terms in the supporting documents (acquisition date) Determined the companies policy in depreciation their Property, Pla Checked if the accumulated depreciation and depreciation expanes Determined appropriate adjustments.
II. ASSERTIONS
III. PROCEDURES
IV. FINDINGS
For the purpose of computing depreciation and due to the lack sufficient supporting docu 1 Because there is no known acquisition date, the auditors assumed all PPEs 2 For the furniture and fixtures with no given useful life, the auditors assume 3 Straight-line method on depreciation was used for the recomputation. Land YEARLY DEPRECIATION Acquisition Cost: Average Useful life per class Yearly Depreciation Additions/capitalized Improvements (2022) Useful life Depreciation of additions Depreciation Expense, 2011 2009 Depreciation (8 months) 2010 Depreciation
K-1.1
16,500,000.00 -
Accumulated Depreciation (1/11)
-
COST January 1, 2011 Additions: Disposals
K-1.1
December 31,2011
16,500,000.00 16,500,000.00
ACCUMULATED DEPRECIATION January 1, 2011 Current Year Depreciation December 31, 2011 Net Book Value, December 31, 2011
16,500,000.00
ADJUSTMENTS 2009 Per book Per auditors' recomputation Adjustments
-
2010 Per book Per auditors' computation Adjustments
-
2011 Per book Per auditors' computation Adjustments
-
The adjustments marked red will not be readjusted because the auditors' deemed this am PROPOSED JOURNAL ENTRIES For 2009-related adjustments: Retained Earnings Accumulated Depreciation - Building Retained Earnings Accumulated Depreciation - Furniture and Fixture Retained Earnings Accumulated Depreciation - Transportation Equipment Retained Earnings Accumulated Depreciation - Office Equipment
Because these are prior-year adjustments, retained earnings account was u
For 2010-related adjustments: Retained Earnings Accumulated Depreciation - Building Retained Earnings Accumulated Depreciation - Furniture and Fixture Retained Earnings Accumulated Depreciation - Transportation Equipment Retained Earnings Accumulated Depreciation - Office Equipment
Because these are prior-year adjustments, retained earnings account was u For 2011-related adjustments: Depreciation Expense - Building Accumulated Depreciation - Building
Accumulated Depreciation - Transportation Equipment Depreciation Expense - Transporation Equipment Depreciation expense was credited instead because the recorded d was more than the recomputed depreciation.
LEGEND: ɸ Footed € Cross-Footed µ Computed from supporting documents ɨ From computed adjustments
III. CONCLUSION
The auditors have discovered that Grace Corporation did not recognize dep between the recorded expense and the recomputed expense during the ye
accumulated depreciation were properly presented in the Financial Statements.
ach item PPE. ts (acquisition date). on their Property, Plant and Equipments epreciation expanese for the year coincides
ent supporting documents, the following assumptions were made. rs assumed all PPEs were acquired at the date of incorporation (April 30, 2011). he auditors assumed it to be 10 years. ecomputation. Building
K-1.1
K-1.1
33,000,000.00 K-1.1 20 µ 1,650,000.00 ɸ 20,000,000.00 18 µ 1,111,111.11 ɸ 2,761,111.11 ɸ 1,100,000.00 1,650,000.00
Furniture and Fixtures
3,550,000.00 K-1.1 10 µ 373,000.00 ɸ ɸ 373,000.00 ɸ 248,666.67 373,000.00
Transportation Equipment 6,000,000.00 K-1.1 10 µ 600,000.00 ɸ ### ### ɸ 600,000.00 ɸ 400,000.00 600,000.00
2,750,000.00
ɸ
621,666.67
ɸ
1,000,000.00
ɸ
K-1.1 K-1.1 ɸ
ɸ
33,000,000.00 K-1.1 20,000,000.00 53,000,000.00 ɸ
2,750,000.00 2,761,111.11 5,511,111.11 47,488,888.89
1,100,000.00 1,100,000.00
1,650,000.00 1,650,000.00
650,000.00 2,761,111.11 2,111,111.11
3,550,000.00 K-1.1 3,550,000.00 ɸ
ɸ
621,666.67 373,000.00 994,666.67
ɸ
2,555,333.33
ɸ
248,666.67 248,666.67
ɸ
373,000.00 373,000.00
ɸ
6,000,000.00 K-1.1 ### ### 6,000,000.00 ɸ
ɸ
1,000,000.00 600,000.00 1,600,000.00
ɸ
ɸ
4,400,000.00
ɸ
ɸ
### 400,000.00 400,000.00
ɸ
ɸ
### 600,000.00 600,000.00
ɸ
355,000.00 373,000.00 18,000.00
ɸ
1,200,000.00 600,000.00 (600,000.00)
ɸ
1,100,000.00
ɨ 1,100,000.00
ɨ
248,666.67
ɨ
400,000.00
ɨ
280,666.67
ɨ
tors' deemed this amounts to be immaterial.
248,666.67
400,000.00
280,666.67
nings account was used instead of the corresponding depreciation expense.
ɨ
ɨ
ɨ
1,650,000.00
373,000.00
600,000.00
421,000.00
ɨ 1,650,000.00
ɨ
373,000.00
ɨ
600,000.00
ɨ
421,000.00
ɨ
2,111,111.11
ɨ
600,000.00
ɨ
ɨ
ɨ
ɨ
nings account was used instead of the corresponding depreciation expense.
2,111,111.11
600,000.00
ɨ
ɨ
ause the recorded depreciation
d not recognize depreciation in the previous year 2009 and 2010, and that there are material differences pense during the year 2011. Adjustments for the said differences were proposed.
K-5
Office Equipment
2,130,000.00 K-1.1 5 µ 421,000.00 ɸ ɸ 421,000.00 ɸ 280,666.67 421,000.00
Total
61,180,000.00 45 3,044,000.00 20,000,000.00 18.00 1,111,111.11 4,155,111.11 2,029,333.33 3,044,000.00
€ ɸ
ɸ ɸ
€ € € € € € € €
701,666.67
ɸ
5,073,333.33
ɸ
€
2,130,000.00 K-1.1 - K-1.1 2,130,000.00 ɸ
701,666.67 421,000.00 1,122,666.67 1,007,333.33
280,666.67 280,666.67
421,000.00 421,000.00
426,000.00 421,000.00 (5,000.00)
61,180,000.00 20,000,000.00 81,180,000.00
ɸ
€ € € €
ɸ
5,073,333.33 3,044,000.00 8,117,333.33
ɸ
ɸ
73,062,666.67
ɸ
€ € € €
ɸ
2,029,333.33 2,029,333.33
ɸ
€ €
ɸ
### 3,044,000.00 3,044,000.00 ɸ
€ €
ɸ
2,631,000.00 4,155,111.11 1,524,111.11
€ € €
ɸ
Prepared by: ILW Reviewed by: LCC
Date: 1/25/2012 Date: 2/10/2012
GRACE CORPORATION Analytical Procedures - Property, Plant, & Equipment December 31, 2011
I. OBJECTIVES 1 2
To determine the validity and accuracy of property, plant and equipment account balances. To evaluate fluctuations or unusual changes on the property, plant and equipments and their related depreciation account balances.
1 2
Accuracy Valuation
1
Obtained audited financial information from comparable prior periods and audited balances of accounts related to property, plant, & equipment as of December 31, 2011. Compared differences between prior and current period ratios.
II. ASSERTIONS
III. PROCEDURES
2
IV. FINDINGS . Grace Corporation Analytical Review Ratios For the Period Ended December 31, 2011 2009 NET CARRYING BALANCES Land
K-5
16,500,000.00
2010
K-5
16,500,000.00
K-5
Building Furniture and Fixtures Transportation Equipment Office Equipment TOTAL NET PROPERTY, PLANT & EQUIPMENT Total Net Property, Plant & Equipment Variance Annual Depreciation Expense Variance
l l l l w
31,900,000.00 3,301,333.33 5,600,000.00 1,849,333.33 59,150,666.66
l l l l w
30,250,000.00 2,928,333.33 5,000,000.00 1,428,333.33 56,106,666.66 -5% 50%
l l l l w
BUILDING Carrying Amount, Beginning Capitalized Improvement Depreciation Carrying Amount, Ending FURNITURE AND FIXTURES Carrying Amount, Beginning Depreciation Carrying Amount, Ending TRANSPORTATION EQUIPMENT Carrying Amount, Beginning Depreciation Carrying Amount, Ending OFFICE EQUIPMENT Carrying Amount, Beginning Depreciation Carrying Amount, Ending
RATIO ANALYSIS Depreciation Expense as Percentage of PPE Total Annual Depreciation Expense Total Net Property, Plant & Equipment RATIO Property, Plant & Equipment Turnover Sales Total Net Property, Plant & Equipment RATIO
K-5 K-5 w
K-5
33,000,000.00 (1,100,000.00) 31,900,000.00
3,550,000.00 (248,666.67)
w
K-5 w
w
K-5
31,900,000.00 (1,650,000.00) 30,250,000.00
3,301,333.33 (373,000.00)
w
K-5 K-5 w
w
K-5
w
3,301,333.33
w
2,928,333.33
w
K-5 K-5
6,000,000.00 (400,000.00)
w
5,600,000.00 (600,000.00)
w
w
K-5 K-5 w
K-5
K-5
5,600,000.00
w
5,000,000.00
w
2,130,000.00 (280,666.67)
w
1,849,333.33 (421,000.00)
w
1,849,333.33
K-5 w
1,428,333.33
K-5 w
w w
2,029,333 59,150,667 3%
w w
3,044,000 56,106,667 5%
w w
p w
48,766,000 59,150,666.66 0.82
p w
54,539,000 56,106,667 0.97
F-5 w
It is observed that the total net PPE variance has significantly increased by 35% in 2011 due to the major improvement made with the building during 2011. Also, significant variance in annual depreciation expense was due to the different time apportionment of the annual depreciation expense in 2009.
LEGEND: l Recomputed w Footed p Verified with prior year's trial balance
III. CONCLUSION
The objectives for this procedure were met. The Property, Plant & Equipment account balances and the annual depreciation expense were found to be reasonable evaluation.
K-6
2011 16,500,000.00
47,488,888.89 2,555,333.33 4,400,000.00 1,007,333.33 71,951,555.55 28% 36.5017%
30,250,000.00 20,000,000.00 (2,761,111.11) 47,488,888.89
2,928,333.33 (373,000.00) 2,555,333.33
5,000,000.00 (600,000.00) 4,400,000.00
1,428,333.33 (421,000.00) 1,007,333.33
4,155,111 71,951,556 6%
110,927,707 71,951,556 1.54
uilding during 2011. Also, the 2009.
re found to be reasonable based on the
Prepared by: DAM Reviewed by: RIT
Date: 2/21/2012 Date: 2/26/2012
GRACE CORPORATION Accounts Payable General and Subsidiary Ledger Reconciliation December 31, 2011
I. OBJECTIVES 1 2 3 4 5
To To To To To
substantiate the existence of recorded accounts payable and the occurrence of purchase transactions establish the completeness of accounts payable and purchase transactions determine the appropriate valuation of accounts payable determine if the presentation and disclosure of accounts payable and purchases are appropriate determine that the client has obligations to pay the recorded accounts payable
1 2 3 4 5
Existence Completeness Accuracy Presentation and Disclosure Rights and Obligation
II. ASSERTIONS
III. PROCEDURES 1 2 3 4 5 6 7
Obtained from the client the listing of accounts payable Reconciled accounts payable beginning balance in subsidiary ledger with general ledger Tested cross footing and footings of purchase invoices Traced purchase invoices to subsidiary ledger and purchase book Traced cash vouchers to the subsidiary ledger and cash disbursement book Reconciled balance in subsidiary ledger to the accounts payable confirmation Reconciled subsidiary ledger to the general ledger
IV. FINDINGS
WP Ref Beginning Balance Total Credits Purchases
General Ledger Unadjusted Balances 12/31/11
N-1.1 F-1.2
Adjusted Balances
6,743,240
N-1.1 N-1.3
6,010,625
6,010,625 N-1.1 F-4
Unrecorded Purchases Total Debits C-2.2 Cash Disbursements N-1.4 Reclassification to Note Payable
(1,906,500) N-1.1
N-1.4
(1,600,000) N-1.1
(4,123,275)
Ending Balance
(7,629,775) 5,124,090
Total Difference Unrecorded Purchases Less: Cash Purchases included in credit to GL Cash Voucher 107 112 1090 135 120 147 1100
F-4 F-4
252,250 155,600
F-1.2 F-1.2 F-1.2 F-1.2 F-1.2 F-1.2
34,200 87,500 14,000 13,250 5,000 45,000
F-1.2
13,325
12/31/11
«
6,743,240
5,798,350 407,850 N-1.3 «N-1.3
C-2.2 N-1.4
(1,906,500) N-1.1
N-1.4
« -1.3 (1,600,000) N-1.1 N
###
(4,123,275)
«
(7,629,775) 5,319,665
407,850
212,275
«
«
Effect LEGEND:
«
Footed/Cross-Footed
ADJUSTING JOURNAL ENTRIES
a.
Adjusting entries of two unrecorded purchases of P252,250 and P155,600 already made in F-4 Purchase Cut Off
Additionally, the following errors were noted: 1. The General Ledger November 30 balance does not equal the total Subsidiary Ledger November 30 balances. A difference of P1,181,770 exists. *The auditors deemed it appropriate to follow the General Ledger balance. 2. Cash Voucher 306 of P1,554,500 was erroneously recorded as P155,450 in the subsidiary ledger. 3. Purchase Invoice 147 was recorded as a credit purchase in the subsidiary ledger when in fact it is a cash purchase. 4. Cash purchases were included as credit purchases in the Accounts Payable General Ledger.
III. CONCLUSION
Adjusting entries of the unrecorded purchases for December are already proposed in F-4 Inventory Purchase Cut Off. The difference of P1,181,770 between the General Ledger and Subsidiary Ledger beginning balances can be an overstatement of the GL beginning balance or an understatement of the SL beginning balance but such cannot be determined with certainty because only December supporting documents are available to the auditors. The slide error of the recording of CV 306 was committed only in the subsidiary ledger. It was properly recorded as P1,554,500 in the Cash Disbursements Book and the General Ledger. The recording of the cash purchase of P45,000 in the SL and all the other cash purchases of P212, 275 included as credit to the GL should be removed in the Accounts Payable Ledgers. No exceptions noted in the other payables: SSS, Medicare Premiums Payable, Withholding Taxes Payable and HDMF Premiums Payable.
The account of Gwendo Reyes has a credit balance of P50,000. The entry for Advances from Customers is already proposed in E-1 AR General and Subsidiary Ledg Reconciliation.
Prepared by: MGR Reviewed by:
LCC
N-1
Difference -
###
195,575 195,575
195,575
-
ts.
ing balance or an vailable to the ash Disbursements credit to the GL
and Subsidiary Ledger
Date: 2/19/2012 Date:
2/23/2012
ACCOUNT
DATE
2011 Dec. 1 6 31
Accounts Payable ITEM
ACCOUNT NO.
F
GJ 11 GJ 11 GJ 11
DEBIT
P
1,906,500.00 1,600,000.00 4,123,275.00
DATE
2011 Nov. 30 Dec. 31
ITEM
Balance
Footed/Cross-Footed
CREDIT
P PJ 12
Balance
«
F
N-1.1 1001 CREDIT
6,743,240.00 6,010,625.00 5,124,090.00
«
ACCOUNTS PAYABLE SUBSIDIARY LEDGERS Arboleda Co., Inc. 456 Quezon Boulevard Extension, Quezon City
NAME: ADDRESS:
DATE
PARTICULARS
DEBIT
2011 Nov. 30 Balance Dec. 1 PI 101 CV 304 CV 306 PI 117 CV 311 PI 127 CV 316
175,000.00 155,450.00 85,000.00 25,750.00
PI 130
Sapphire Corporation 85 Quarry Avenue, Parañaque City
NAME: ADDRESS:
DATE
PARTICULARS
DEBIT
2011 Nov. 30 Balance Dec. 3 PI 1082 5 CV 301 10 CV 305 18 PI 1095 23 PI 1099
972,750.00 114,900.00
28 CV 318
85,000.00
Genius Paper Products 951 Del Sol Avenue, Pasay City
NAME: ADDRESS:
DATE
PARTICULARS
2011 Nov. 30 Balance Dec. 1 converted to 90-day
DEBIT
1,906,500.00
2 PI 111 2 CV 300 6 PI 127 6 converted to 27% 150 10 PI 130 15 CV 309 20 PI 140 22 PI 145 26 PI 147 26 CV 313 26 CV 314 26 CV 315
300,000.00 1,600,000.00 625,000.00
32,500.00 127,875.00 25,000.00
28 PI 151
«
Footed/Cross-Footed
N-1.2
UBSIDIARY LEDGERS ACCOUNT NO.:
1001
CREDIT
BALANCE
Quezon City
413,750.00
85,000.00 25,750.00 19,125.00
1,554,500.00 1,968,250.00 1,793,250.00 1,637,800.00 1,722,800.00 1,637,800.00 1,663,550.00 1,637,800.00 1,656,925.00
ACCOUNT NO.:
1002
CREDIT
BALANCE
«
y
459,600.00
85,000.00 12,250.00
2,100,470.00 2,560,070.00 1,587,320.00 1,472,420.00 1,557,420.00 1,569,670.00 1,484,670.00
ACCOUNT NO.:
1003
CREDIT
BALANCE
1,906,500.00 --
«
s-Footed
1,425,000.00 1,600,000.00 1,200,000.00 127,870.00 130,000.00 45,000.00
165,000.00
1,425,000.00 1,125,000.00 2,725,000.00 1,125,000.00 2,325,000.00 1,700,000.00 1,827,870.00 1,957,870.00 2,002,870.00 1,970,370.00 1,842,495.00 1,817,495.00 1,982,495.00
«
BEGINNING PURCHASE BOOK
CASH 1 2 3 6 7 8 9 10 12 15 15 16 20 21 22 23 24 27 28 29
101 111 1082 127 107 1095 112 130 1090 135 147 117 140 120 145 1099 127 1100 151 130
AP 413,750.00 1,425,000.00 459600 1,600,000.00
34,200.00 85,000.00 87,500.00 1,250,000.00 14,000.00 13,250.00 45,000.00 85,000.00 127,875.00 5,000.00 130,000.00 12,250.00 25,750.00 13,325.00 165,000.00 19,125.00 212,275.00
PURCHASE INVOICES 29 30
7729 825
5,798,350.00 252,250.00 155,600.00
212,275.00
6,206,200.00
DISBURSEMENTS
Non-AP 2 5 7 9 10
12 14 15 20 21 26
27 28
300 301 302 303 304 305 306 307 308 309 310 311 312 313 314 315 316 317 318 319
AP 300000 972750
34200 87500 175000 114900 1554500 14000 1080000 625000 13250 85000 5000 32500 127875 25000 25750 13325 85000 942840
«
Footed/Cross-Footed
BEGINNING CREDITS
Arboleda 1,554,500.00
Sapphire 2,100,470.00
413,750.00 459,600.00
85,000.00
85,000.00
12,250.00 25,750.00
19,125.00
«
543,625.00
556,850.00
155,600.00
«
TOTAL CREDITS
699,225.00
556,850.00
oss-Footed
DEBITS 972,750.00
175,000.00 114,900.00 1,554,500.00
85,000.00
25,750.00 85,000.00
to Note Payable to Note Payable
1,840,250.00 -
1,172,650.00 -
TOTAL DEBITS
1,840,250.00
1,172,650.00
AP AUDITED
413,475.00
1,484,670.00
N-1.3 Genius Paper Products 1,906,500.00
5,561,470.00
1,425,000.00 1,600,000.00
1,250,000.00
127,875.00 130,000.00
165,000.00 4,697,875.00
«
5,798,350.00 N-1
«
6,206,200.00 N-1
252,250.00 4,950,125.00
300,000.00
625,000.00
32,500.00 127,875.00 25,000.00
1,110,375.00 1,906,500.00 1,600,000.00
«
4,123,275.00
4,616,875.00
« «
7,629,775.00 N-1
2,239,750.00
4,137,895.00
PURCHASE BOOK DATE
PURCHASED FROM
2011 Dec. 1 Arboleda Co., Inc. 2 Genius Paper Products 3 Sapphire Corporation 6 Genius Paper Products 7 Arboleda Co., Inc. 9 Arboleda Co., Inc. 10 Genius Paper Products 12 Sapphire Corporation 15 Genius Paper Products 16 Arboleda Co., Inc. 18 Sapphire Corporation 20 Genius Paper Products 21 Arboleda Co., Inc. 22 Genius Paper Products 23 Sapphire Corporation 24 Arboleda Co., Inc. 26 Genius Paper Products 27 Sapphire Corporation 28 Genius Paper Products 29 Arboleda Co., Inc.
F
ACCOUNTS PAYABLE
TERMS
INV. NO.
2/10, n/30 P 300,000 down. bal. 2/10, n/45 2/10, n/30 27% - 150 day note n/30 n/30 2/10, n/45 n/30 n/30 2/10, n/45 n/30 2/10, n/45 n/30 1/10, n/30 n/15 1/10, n/20 P 2,500 down, bal. n/15 n/30 2/10, n/30 1/10, n/15
101
413,750.00
111 1082 127 107 112 130 1090 135 117 1095 140 120 145 1099 127 147 1100 151 130
1,425,000.00 459,600.00 1,600,000.00 34,200.00 87,500.00 1,250,000.00 14,000.00 13,250.00 85,000.00 85,000.00 127,875.00 5,000.00 130,000.00 12,250.00 25,750.00 45,000.00 13,325.00 165,000.00 19,125.00 6,010,625.00 (1001)
CR.
N-1 N-1 N-1 N-1
N-1
N-1 N-1
MERCHANDISE INVENTORY
DR.
INPUT TAX DR.
376,136.00 1,295,455.00 417,818.00 1,454,545.00 31,091.00 79,545.00 1,136,364.00 12,727.00 12,045.00 77,273.00 77,273.00 116,250.00 4,545.00 118,182.00 11,136.00 23,409.00 40,909.00 12,114.00 150,000.00 17,386.00
37,614.00 129,545.00 41,782.00 145,455.00 3,109.00 7,955.00 113,636.00 1,273.00 1,205.00 7,727.00 7,727.00 11,625.00 455.00 11,818.00 1,114.00 2,341.00 4,091.00 1,211.00 15,000.00 1,739.00
5,464,203.00 (106)
546,422.00 (111)
F-1.2 Adjustments
0.09090909 0.09090909 0.09090909 0.09090909 0.09090909 0.09090909 0.09090909 0.09090909 0.09090909 0.09090909 0.09090909 0.09090909 0.09090909 0.09090909 0.09090909 0.09090909 0.09090909 0.09090909 0.09090909 0.09090909 0.09090909
37,614 129,545 41,782 145,455 3,109 7,955 113,636 1,273 1,205 7,727 7,727 11,625 455 11,818 1,114 2,341 4,091 1,211 15,000 1,739
0.09090909
546,420
GENIUS PAPER PRODUCTS 951 Del Sol Avenue, Pasay City | VAT 2011-005-219 | TIN 4004-0070356 CHARGED TO:
GRACE CORPORATION
ADDRESS:
12 Ninoy Aquino Avenue, Paranaque City
TERMS:
bal 2/10, n/45
DATE:
PARTICULARS
15,000 pads 16 column worksheet - Vernal
UNIT PRICE
P
13,500 pads 14 column worksheet - Vernal
50.00 50.00
VAT INCLUDED
Received the above products in good order and condition. BY: RES. CERTIFICATE NO.:
arboleda company, inc. 456 Quezon Boulevard Extension, Quezon City | VAT 2011-013-357 | TIN 4004-099-951 CHARGED TO: ADDRESS:
GRACE CORPORATION 12 Ninoy Aquino Avenue, Paranaque City DETAILS
5,000 boxes Pencil Plain - Mongol 7,500 pieces Bic Ballpen - Red VAT INCLUDED
UNIT PRICE
P
70.00 8.50
Received the above products in good order and condition. BY:
RES. CERTIFICATE NO.:
Sapphire Corporation 82 Quarry Avenue, Pananaque City | VAT 2011-053-852 | TIN 4004-064-456
GRACE CORPORATION 12 Ninoy Aquino Avenue, Paranaque City
CHARGED TO: ADDRESS:
PARTICULARS
UNIT PRICE
5,000 boxes Charcoal Pencil - Staedler 800 pairs Scissors
P
90.00 12.00
VAT INCLUDED
Received the above products in good order and condition. BY:
RES. CERTIFICATE NO.:
GENIUS PAPER PRODUCTS 951 Del Sol Avenue, Pasay City | VAT 2011-005-219 | TIN 4004-0070356 CHARGED TO:
GRACE CORPORATION
ADDRESS:
12 Ninoy Aquino Avenue, Paranaque City
TERMS:
99.150 day note
DATE:
PARTICULARS
17,000 pads 12 column worksheet - Vernal 15,000 pads 10 column worksheet - Vernal VAT INCLUDED
UNIT PRICE
P
50.00 50.00
Received the above products in good order and condition. BY: RES. CERTIFICATE NO.:
GENIUS PAPER PRODUCTS 951 Del Sol Avenue, Pasay City | VAT 2011-005-219 | TIN 4004-0070356 CHARGED TO:
GRACE CORPORATION
ADDRESS:
12 Ninoy Aquino Avenue, Paranaque City
TERMS:
2/10, n/45
DATE:
PARTICULARS
7,500 pads Intermediate Pad - Old Mill 8,500 pads Yellow paper - Old Mill 4,250 reams Bond Paper - Whitey
UNIT PRICE
P
3,000 reams Onion Skin - Milky
15.00 30.00 130.00 110.00
VAT INCLUDED
Received the above products in good order and condition. BY: RES. CERTIFICATE NO.:
Sapphire Corporation 82 Quarry Avenue, Pananaque City | VAT 2011-053-852 | TIN 4004-064-456 CHARGED TO: ADDRESS:
GRACE CORPORATION 12 Ninoy Aquino Avenue, Paranaque City PARTICULARS
350 boxes Thumbtacks - Golden VAT INCLUDED
UNIT PRICE
P
40.00
Received the above products in good order and condition. BY:
RES. CERTIFICATE NO.:
arboleda company, inc. 456 Quezon Boulevard Extension, Quezon City | VAT 2011-013-357 | TIN 4004-099-951 CHARGED TO: ADDRESS:
GRACE CORPORATION 12 Ninoy Aquino Avenue, Paranaque City DETAILS
UNIT PRICE
600 bottles Quink Ink
P
57.00
VAT INCLUDED
Received the above products in good order and condition. BY:
RES. CERTIFICATE NO.:
arboleda company, inc. 456 Quezon Boulevard Extension, Quezon City | VAT 2011-013-357 | TIN 4004-099-951 CHARGED TO: ADDRESS:
GRACE CORPORATION 12 Ninoy Aquino Avenue, Paranaque City DETAILS
5,000 meters Plastic Cover VAT INCLUDED
UNIT PRICE
P
17.50
Received the above products in good order and condition. BY:
RES. CERTIFICATE NO.:
F-1.3
S
P
No. 111
2 December 2011 UNIT PRICE
50.00
AMOUNT
P
50.00
750,000.00 675,000.00
P
1,425,000.00
ISSUED AT:
No. DATE:
101
1 December 2011
ORDER NO.: UNIT PRICE
70.00
AMOUNT
P
8.50
350,000.00 63,750.00
P
413,750.00
ISSUED AT:
No. DATE:
1082
Dec. 3, 2011
ORDER NO.: UNIT PRICE
AMOUNT
90.00 12.00
P
450,000.00 9,600.00
P
459,600.00
ISSUED AT:
S
P
No. 127
6 December 2011 UNIT PRICE
50.00
AMOUNT
P
50.00
850,000.00 750,000.00
P
1,600,000.00
ISSUED AT:
S
P
No. 130
10 December 2011 UNIT PRICE
15.00 30.00 130.00
AMOUNT
P
110.00
112,500.00 255,000.00 552,500.00 330,000.00
P
1,250,000.00
ISSUED AT:
1090
No. DATE:
Dec. 12, 2011
ORDER NO.: UNIT PRICE
40.00
AMOUNT
P
14,000.00
P
14,000.00
ISSUED AT:
No. DATE:
107
7 December 2011
ORDER NO.: UNIT PRICE
57.00
AMOUNT
P
34,200.00
P
34,200.00
ISSUED AT:
No. DATE:
112
9 December 2011
ORDER NO.: UNIT PRICE
17.50
AMOUNT
P
87,500.00
P
87,500.00
ISSUED AT:
CASH DISBURSEMENTS BOOK DATE
PAID TO
EXPLANATION
CV#
CHECK NO.
Dec. 2 Genius Paper Products
BANK CR.
PURCH. DISC. CR.
2011 Downpayment, 2/10, n/45
300
12345
5 Sapphire Corp.
Partial payment
301
12346
972,750.00
7 Bureau of Internal Revenue
Remittance for November
302
12347
34,200.00
9 Social Security System
Remittance for November
303
12348
87,500.00
10 Arboleda Co., Inc.
Partial payment
304
12349
175,000.00
Sapphire Corp.
Partial payment
305
12350
114,900.00
Arboleda Co., Inc.
Full payment
306
12351
1,554,500.00
12 Caltex Gas
25 liters gasoline
307
12352
14,000.00
14 Paymaster
Salaries 12.01-12.15
308
12353
1,080,000.00
15 Genius Paper Products
Partial payment
309
12354
625,000.00
Light bill
310
12355
13,250.00
20 Arboleda Co., Inc.
Full payment
311
12356
83,300.00
21 Archer Supplies
plastic bags
312
12357
5,000.00
26 Genius Paper Products
Partial payment
313
12358
32,500.00
Genius Paper Products
Full payment
314
12359
125,315.00
Genius Paper Products
Downpayment
315
12360
25,000.00
Arboleda Co., Inc.
Full payment
316
12361
25,490.00
27 XYZ Ads
100 pcs. Brochures
317
12362
13,325.00
28 Sapphire Corp.
Full payment
318
12363
85,000.00
30 Paymaster
Salaries 12.15-12.31
319
12364
942,840.00
MERALCO
P
300,000.00
P
1,700.00
2,560.00 260.00
### P
6,308,870.00
P
4,520.00
(101)
(3005)
ü
ü
C-2.2
MENTS BOOK ACCOUNTS PAYABLE (DR.) AMOUNT P
ACCOUNT NAME
SUNDRY DR. (CR.) F
AMOUNT
300,000.00 972,750.00 Withholding Taxes Payable
1005 P
34,200.00
SSS Premiums Payable
1004
87,500.00
Gasoline Expense
4007
14,000.00
Salaries Expense
4002
1,238,760.00
Withholding Taxes Payable
1005
(64,800.00)
SSS Premiums Payable
1004
(72,360.00)
HDMF Premiums Payable
1006
(21,600.00)
Light, Water and Telephone
4008
13,250.00
Supplies Expense
4003
5,000.00
Advertising Expense
4016
13,325.00
Salaries Expense
4002
1,101,600.00
SSS Premiums Payable
1004
(72,360.00)
Withholding Taxes Payable
1005
(64,800.00)
175,000.00 114,900.00 1,554,500.00
625,000.00 85,000.00 32,500.00 127,875.00 25,000.00 25,750.00 85,000.00
3
HDMF Premiums Payable P
4,123,275.00 (1001)
ü
N-1
1006
(21,600.00) P
2,190,115.00
N-1.4 Page 1
GENERAL JOURNAL Date
Particulars
F
2011 Dec. 1 Accounts Payable 1001 Notes Payable 1002 Issuance of 90-day 24% note to Genius Paper Products.
6 Accounts Payable 1001 Notes Payable 1002 Issuance of 150-day 27% note to Genius Paper Products.
Debit
Credit
1,906,500.00 1,906,500.00
1,600,000.00 1,600,000.00
GRACE CORPORATION Accounts Payable Confirmation December 31, 2011
I. OBJECTIVES 1
To verify the accuracy and existence of the accounts payable balanc
1 2
Accuracy Existence
1 2 3
Obtain a list of the company's creditors and its balances (or check su Request and collect from the creditors a statement of account indica Compare the balances taken from the subsidiary ledger to those ind
II. ASSERTIONS
III. PROCEDURES
IV. FINDINGS
Creditor Name
Conf #
WP REF
Genius Paper Products
AP - 1 N-1.2
Sapphire Corporation
AP - 2 N-1.2
Arboleda Co., Inc.
AP - 3 N-1.2
III. CONCLUSION
In conclusion, the balaces included in the accounts payable confirmations a given the lack of signatures, the auditor decided that further substantive p
TION
of the accounts payable balances
ors and its balances (or check subsidiary ledger if not provided) rs a statement of account indicating the company's liability balance he subsidiary ledger to those indicated in the creditor's statement of account
Balance per SL
WP REF
Balance per Statement of Account
Difference
Remarks
1,982,495.00
N-2.1
1,982,495.00
-
Balance is OK but with no signature
1,484,670.00
N-2.1
1,484,670.00
1,656,925.00
N-2.1
1,656,925.00
-
Balance is OK but with no signature
-
Balance is OK but with no signature
accounts payable confirmations are equal to those indicated in their corresponding subsidiary ledgers. However, cided that further substantive procedures must be performed to support the assertions presented.
Prepared by: JGN Reviewed by: MGR
N-2
Date: 2/25/2012 Date: 2/29/2012
Our records show that the balance of was due from Name of Supplier / Creditor : By (in print) : Signature :
Our records show that the balance of was due from Name of Supplier / Creditor : By (in print) : Signature :
Our records show that the balance of was due from
P GRACE CORPORATION
as of
1,982,495.00 December 31, 2011 GENIUS PAPER PRODUCTS
Jordan Miguel
Position : Date :
P GRACE CORPORATION
as of
January 25
1,484,670.00 December 31, 2011 SAPPHIRE CORPORATION
Samantha Reyes
Position : Date :
P GRACE CORPORATION
as of
January 10
1,656,925.00 December 31, 2011
Name of Supplier / Creditor : By (in print) : Signature :
ARBOLEDA CO., INC. Joshua Madrigal
Position : Date :
January 20
N-2.1 N-2 Conf. No. AP - 1
as itemizes in the attached statement ber 31, 2011
CTS Chief Accountant January 25, 2005
N-2 Conf. No. AP - 2
as itemizes in the attached statement ber 31, 2011
ION Chief Accountant January 10, 2005
N-2 Conf. No. AP - 3
as itemizes in the attached statement ber 31, 2011
C. Chief Accountant January 20, 2005
GRACE CORPORATION Purchase Cut-Off December 31, 2011
I. OBJECTIVES 1
To determine whether purchases and corresponding payables are re
1
Completeness
1 2
Examined all purchases from December 2011 to January 4, 2012. Traced purchases invoices to the purchase book to determine wheth
II. ASSERTIONS
III. PROCEDURES
IV. FINDINGS
There are two Purchase Invoices (7729 and 825) that are not recorded as p the Purchase Cut-off table.
III. CONCLUSION
The December purchases and its corresponding payables have been determ Cut-off (please refer to F4) except for the Purchase Invoice Nos. 7729 and 8
N-3
ng payables are recorded in the appropriate period
anuary 4, 2012. o determine whether the purchase transactions are recorded in the proper accounting period.
not recorded as purchases and payables in the proper accounting period. Please Refer to F-4 for
s have been determined to be recorded in the appropriate accounting period using the Purchase ce Nos. 7729 and 825. Necessary adjusting entries have been made. No other exceptions noted.
Prepared by: Date: RIT 3/13/2012 Reviewed by: Date:
BAG
3/20/2012
GRACE CORPORATION Client Inquiry December 31, 2011
I. OBJECTIVES 1 2
To determine if there are pledges for liabilities. To determine if such pledges are properly presented and disclose
1 2
Rights and Obligations Presentation and Disclosure
1 2
Obtained copy of contracts, agreement, loans and the like relatin Reviewed such contracts and agreements. Inquired client for further information regarding pledges for liabili
II. ASSERTIONS
III. PROCEDURES
3
IV. FINDINGS
Only the loan balance of 10,000,000 have a collateral. * For full document and full audit discussion of such pledge, please refer to t
III. CONCLUSION
No exceptions noted. Sufficient and appropriate evidence were gathered to
N-4
ed and disclosed in the financial statements.
d the like relating to the payable accounts.
edges for liabilities.
*
please refer to the audit of Property, Plant and Equipment WP REF K-4.
ere gathered to support the assertions made.
Prepared by: ILW Reviewed by: LCC
Date: 6/3/2012 Date: 6/9/2012
GRACE CORPORATION Analytical Procedures - Accounts Payable December 31, 2011
I. OBJECTIVES 1 2
To be able to evaluate the fluctuations or unusual changes on the To assess whether amounts and other data relating to recorded t
1 2 3 4
Accuracy Valuation Presentation and Disclosure Rights and Obligations
1
Compared the difference between the audited balance of payabl (Balance of 2010 from 2009 and Balance of 2011 from 2010). The differences on the account balances where expressed in perc
II. ASSERTIONS
III. PROCEDURES
2
IV. FINDINGS
Accounts Payable Percent Increase (Decrease)
TB
Turnover Days outstanding Notes Payable Percent Increase (Decrease)
TB
Notes Payable to Officer Percent Increase (Decrease)
TB
SSS Medicare Premium Payable Percent Increase (Decrease)
TB
Withholding Taxes Payable Percent Increase (Decrease)
TB
HDMF Premiums Payable Percent Increase (Decrease)
TB
Accrued Interest Payable Percent Increase (Decrease)
For purposes on analyzing the payable accounts, the auditors mainly calcu Accounts Payable account wherein the auditors calculated for the 1 Accounts Payable Turnover: measures the number of ti accounting period. Formula: Cost of Sales*/Average Ac 2 Days in Accounts Payable Formula:
measures the average nu 365/Accounts Payable Tur
As seen in the table above, Accounts Payable turnover have decreas of payments to suppliers have decreased compared to the last perio As is evident in the Days in Accounts Payable ratio, the number of d 9 days to 20 days. Though 20 days is not a very poor figure, it still s on a more effcient and timely manner.
Percentage changes in payables does not call any special attention, increase, from below a million to more than 5 million. This explains t days oustanding. Maybe Grace Corporation's decreased performanc larger balances.
* Cost of Sales was used instead of total purchases because the au to determine the entire year's PURCHASES ON ACCOUNT.
III. CONCLUSION
Except for the analysis discussed in the findings, no other exceptions were
TION
tions or unusual changes on the balances of the payable accounts. other data relating to recorded transactions and events have been recorded appropriately.
n the audited balance of payables of the current year from the audited balance of the preceding years Balance of 2011 from 2010). lances where expressed in percentage by diving the variance from the prior balance of an account.
2009 900,000.00 -
TB
Payables 2010 906,500.00 0.72%
1
2011 5,319,665.00 487%
-
38.51 9.48
18.33 19.92
14,000,000.00 -
TB
21,000,000.00 50%
14,000,000.00 -
TB
21,000,000.00 50%
52,000.00 -
TB
62,000.00 19%
1
144,720.00 133%
40,500.00 -
TB
52,500.00 30%
1
129,600.00 147%
21,500.00 -
TB
29,500.00 37%
1
63,200.00 114%
1
66,565.00 -
-
### ###
2
13,506,500.00 -36% 1,700,000.00 -92%
unts, the auditors mainly calculated the percentage changes, except for the n the auditors calculated for the AP Turnover and Days in AP oustanding. measures the number of times a company pays its suppliers during a specific accounting period. Cost of Sales*/Average Accounts Payable measures the average number of days a payable is outstanding. 365/Accounts Payable Turnover
yable turnover have decreased from 28 days to 18 days. This means that the frequency ed compared to the last period. This is also considered a decrease in operational performance. yable ratio, the number of days a payable is oustanding have lengthened from ot a very poor figure, it still suggests a decrease in the companies ability to pay their payables
ot call any special attention, except that of the accounts payable which had a 487% han 5 million. This explains the decrease in the turnover and the increase in the tion's decreased performance in paying off payables was because of the now
total purchases because the auditors do not have enough documents RCHASES ON ACCOUNT.
dings, no other exceptions were noted.
Prepared by: ILW Reviewed by: LCC
N-5
ceding years
34785500 57050382
erformance.
heir payables
Date: 1/25/2012 Date: 2/10/2012
GRACE CORPORATION Notes Payable December 31, 2011
I. OBJECTIVES 1 2 3
To determine that notes payable exist as of the balance sheet date. To determine whether all notes payable were recorded properly. To determine whether amounts of notes payable were accurate.
1 2 3
Existence Completeness Valuation
1 2 3 4 5 6
Obtained a copy of accounts payable supporting documents such as Examined the terms of the contract. Vouchedfrom general ledger to supporting documents. Compared amounts per contracts and agreements with the general l Recalculated Interest. Noted for differences.
II. ASSERTIONS
III. PROCEDURES
IV. FINDINGS
Payee Alfredo P. Cacho- Officer Felicisimo Rey- Genius Paper Products Felicisimo Rey- Genius Paper Products PCI Bank BALANCE PER AUDIT Balance per Ledger Audit adjustment Proposed Adjusting Journal Entry:
Date of Note 10.01.11 12.01.11 12.05.11 12.28.11
Term 360 days 90 days 150 days 360 days
(a) Cash Discount on Notes Payable
Notes Payable To record proceeds from bank loan. *This entry were already reflected in Bank Reconcillation (C2) (b) Notes Payable
Notes Payable to Officer *This entry was made to reclassify the notes payable to officer separ required for it to be presented separately. No discount was reclassifi be noted than on the contract, the Payee should be the name of the Grace Corp can't have a liability payable to itself.
III. CONCLUSION
In conclusion, notes payable recorded in the ledger do exist and properly valu journal entry given by the auditor, no other exceptions noted.
O-1
e sheet date. properly. accurate.
ments such as promisory notes and bank confirmation.
h the general ledger.
Interest Rate Non-Interest Bearing Note 24% 27% 21%
Recorded or Not? O-1.1 Yes O-1.1 Yes O-1.1 Yes C-3.1 No
O-1.2
Amount 1,700,000 1,906,500 1,600,000 10,000,000 (a) 15,206,500 5,206,500 10,000,000
7,900,000 2,100,000 10,000,000
om bank loan. on (C2) 1,700,000
1,700,000 o officer separately from the notes payable account as it is was reclassified because the note was short-term. It should also e name of the officer and not Grace corporation. Simply because,
d properly valued, however a note payable to PCI bank were not recorded. Aside from the proposed adjusting
Prepared by: MZB Reviewed by: DAM
Date: 4/2/2012 Date: 4/13/2012
-1
PROMISSORY NOTE (Note Payable- Officer) P
1,700,000.00 O-1
For value received, I / we jointly and severally promise to pay, Grace Corporation or order, the sum of thousand 1,700,000.00 pesos (P none 12 Ninoy Aquino Ave interest rate of % payable at
If this note is placed in the hands of attorney for collection; the makes and endorsers addition, pay 25% of the amount due as attorney's fees and costs of collection (aside from the litigation allowed by the Rules of Court).
Signature
Alfredo P. Cacho Name in Print
58 Rizal Avenue, Manila Mailing Address Res. Cert. No.: AB582485 Date: January 30, 2011 Place of Issue: Manila
SIGNED IN THE PRESENCE OF:
PROMISSORY NOTE (Note Payable) P
1,906,500.00 O-1
For value received, I / we jointly and severally promise to pay, Genius Paper Products One million nine h or order, the sum of thousand five hundred 1,906,500.00 pesos (P 24 565 Solana Aven interest rate of % payable at
If this note is placed in the hands of attorney for collection; the makes and endorsers addition, pay 25% of the amount due as attorney's fees and costs of collection (aside from the litigation allowed by the Rules of Court).
Signature
Felicisomo Rey for Genius Paper Products Name in Print 565 Solana Avenue Pasay City Mailing Address Res. Cert. No.: AB513468 Date: January 30, 2011 Place of Issue: Pasay City
SIGNED IN THE PRESENCE OF:
PROMISSORY NOTE (Note Payable) P
1,600,000.00 O-1
For value received, I / we jointly and severally promise to pay, Genius Paper Products One million six hu or order, the sum of thousand 1,600,000.00 pesos (P 27 565 Solana Aven interest rate of % payable at
If this note is placed in the hands of attorney for collection; the makes and endorsers addition, pay 25% of the amount due as attorney's fees and costs of collection (aside from the litigation allowed by the Rules of Court).
Signature
Felicisomo Rey for Genius Paper Products Name in Print 565 Solana Avenue Pasay City Mailing Address Res. Cert. No.: AB513468 Date: January 30, 2011 Place of Issue: Pasay City
SIGNED IN THE PRESENCE OF:
O-1.1
RY NOTE le- Officer) October 1, 2011
360 days after date One million seven hundred ), Philippine Currency at an annual 12 Ninoy Aquino Ave., Paranaque City .
the makes and endorsers shall, in collection (aside from the costs of
Signature
Sarah B. Tuason for Grace Corporation Name in Print 12 Ninoy Aquino Avenue Paranaque City Mailing Address Res. Cert. No.: AB3486789 Date: January 19, 2011 Place of Issue: Paranaque City
SIGNED IN THE PRESENCE OF:
RY NOTE ayable) December 1, 2011
ninety days after date One million nine hundred six ), Philippine Currency at an annual 565 Solana Avenue, Pasay City .
the makes and endorsers shall, in collection (aside from the costs of
Signature
Sarah B. Tuason for Grace Corporation Name in Print 12 Ninoy Aquino Avenue Paranaque City Mailing Address Res. Cert. No.: AB3486789 Date: January 19, 2011 Place of Issue: Paranaque City
SIGNED IN THE PRESENCE OF:
RY NOTE ayable) December 5, 2011
150 days after date One million six hundred ), Philippine Currency at an annual 565 Solana Avenue, Pasay City .
the makes and endorsers shall, in collection (aside from the costs of
Signature
Sarah B. Tuason for Grace Corporation Name in Print 12 Ninoy Aquino Avenue Paranaque City Mailing Address Res. Cert. No.: AB3486789 Date: January 19, 2011 Place of Issue: Paranaque City
SIGNED IN THE PRESENCE OF:
ACCOUNT
DATE
Notes Payable ITEM
F
DEBIT
DATE
2011 Dec. 1 6
ACCOUNT DATE
Notes Payable - Officer ITEM
F
DEBIT
DATE
2011 Nov. 30
O-1.2 ACCOUNT NO.
ITEM
F
GJ 11 GJ 11
CREDIT
P
Balance
ACCOUNT NO. ITEM
Balance
1002
F
1,906,500.00 1,600,000.00 3,506,500.00
1003 CREDIT
P
1,700,000.00
GRACE CORPORATION Accrued Interest Payable December 31, 2011
I. OBJECTIVES 1 2 3
To determine that accrued interest payable exist as of the bala To determine whether all accrued interest payable were record To determine whether amounts of accrued interest payable we
1 2 3
Existence Completeness Valuation
1 2 3 4 5
Obtained a copy of notes payable contracts. Examined the terms of the contract. Recalculated interest. Determined the amount of accrued interest payable recorded Noted for differences.
II. ASSERTIONS
III. PROCEDURES
IV. FINDINGS
Payee Alfredo P. Cacho- Officer Felicisimo Rey- Genius Paper Products Felicisimo Rey- Genius Paper Products PCI Bank BALANCE PER AUDIT Balance per Ledger Audit adjustment
Proposed Adjusting Journal Entry: Interest Expense Accrued Interest Payable To adjust acrrued interest on
(a) No accrual of interest were made for short non-interest be
(b) Amortization of the discounted note were not necessarily b
III. CONCLUSION
In conclusion, accrued interest payable recorded in the ledger do exist exceptions noted. Sufficient and appropriate evidence were gathered to
ble exist as of the balance sheet date. st payable were recorded properly. ed interest payable were accurate.
est payable recorded for the period
Principal 1,700,000 1,906,500 1,600,000 10,000,000
Date of Note 10.01.11 12.01.11 12.05.11 12.28.11
Term 360 days 90 days 150 days 360 days
Interest Rate Non-Interest Bearing Note 24% 27% 21%
1,815 1,815
st acrrued interest on notes payable. short non-interest bearing note due to immateriality.
were not necessarily be made considering the materiality level and the days it was outstanding. No need to acrrue interest
n the ledger do exist , however there was an understatement in the account . Aside from the proposed adjusting journal en nce were gathered to support the assertions made.
O-2
Days Outstanding 30 26 -
Interest Accrued (a) 37,608 30,773 (b)
O-2.1
68,380 66,565 1,815
ing. No need to acrrue interest.
e proposed adjusting journal entry given by the auditor, no other
Prepared by: MZB Reviewed by: DEF
Date: 3/5/2012 Date: 3/15/2012
ACCOUNT DATE
Accrued Interest Payable ITEM
F
DEBIT
O-2.1 ACCOUNT NO. DATE
2011 Dec. 31
ITEM
F
GJ 12
1007 CREDIT
P
66,565.00 O-2
2002 2003 2004 2005 3001 3002 3003 3004 3005 4001 4002 4003 4004 4005 4006 4007 4008 4009 4010 4011 4012 4013 4014 4015 4016 4017 4018 4019
GRACE CORPORATION Working Trial Balance December 31, 2011 Account Name Cash in Bank Petty Cash Fund Marketable Securities Accounts Receivable Acounts Receivable - Others Allowance for Bad Debts Notes Receivable Merchandise Inventory Accrued Interest Receivable Prepaid Advertising Prepaid Insurance Unused Supplies Input Tax Land Building Accumulated Depreciation - Building Furniture and Fixture Accumulated Depreciation - Furniture and Fixture Transportation Equipment Accumulated Depreciation - Transportation Equipment Office Equipment Accumulated Depreciation - Office Equipment Organization Cost Accounts Payable Notes Payable Notes Payable - Non Trade Notes Payable - Officer SSS Medicare Premium Payable Withholding Taxes Payable HDMF Premiums Payable Accrued Interest Payable Output Tax Ordinary Share Capital
WP Ref C C D E E E E F E G G G P K K K K K K K K K M N O O O N N N N P T
Subscribed Ordinary Share Capital Subscription Receivable - Ordinary Share Capital Premium in Excess of Par Value - Ordinary Share Capital Retained Earnings Sales Sales Discount Sales Returns and Allowances Interest Income Purchase Discount Cost of Sales Salaries Expense Supplies Expense Taxes and Licenses SSS Premium Expense HDMF Premium Expense Gasoline Expense Light, Water & Telephone Depreciation Expense - Building Depreciation Expense - Furniture and Fixture Depreciation Expense - Transporation Equipment Depreciation Expense - Office Equipment Amortization of Organization Cost Bad Debts Expense Representation Expense Advertising Expense Insurance Expense Miscellaneous Expenses Interest Expense TOTAL
T T T T UA UA UA UB
VB VB VB VB VB VB VB VB VB VB VB VB VB VB VB VB VB VC
December 31, 2009 Debit
December 31, 2010
Credit
Debit
150,000 10,000 1,010,000 4,650,000 4,200,000
1,000,000 100,000 1,150,000 5,850,000 6,400,000
600,000 700,000
1,500,000 900,000
50,000 60,000 200,000 450,000 16,500,000 33,000,000
120,000 80,000 300,000 600,000 16,500,000 33,000,000
3,550,000
3,550,000
6,000,000
6,000,000
2,130,000
2,130,000
1,000,000
1,000,000 900,000 14,000,000 52,000 40,500 21,500 600,000 45,000,000
3,500,000 48,766,000 200,000 650,000
300,000 800,000 80,000
29,085,000 6,253,000 67,000 750,000 210,000 70,000 86,500 184,000
34,785,500 7,000,000 108,000 900,000 270,500 100,000 100,000 210,000
230,000 113,000 207,000 170,000 60,000 364,500
280,000 132,000 318,000 200,000 70,000 445,500
112,960,000
112,960,000
126,199,500
TB
ecember 31, 2010
December 31, 2011
Credit
Debit
Credit
4,709,230 1,700 9,500,000 10,318,635 497,811 2,970,000 4,402,787 38,853 50,000 50,000 300,000 1,556,422 16,500,000 53,000,000 650,000 3,550,000 355,000 6,000,000 1,200,000 2,130,000 426,000 800,000 906,500
5,124,090 3,506,500
21,000,000 62,000 52,500 29,500 1,000,000 45,000,000
1,700,000 144,720 129,600 63,200 66,565 2,470,332 70,000,000
5,000,000 2,625,000 3,500,000
5,250,000 4,481,456 112,152,313
54,539,000 866,435 1,041,475 110,000
248,853 4,520 56,646,887 24,022,840 1,411,862 910,000 1,270,500 1,100,000 1,146,000 1,223,000 650,000 355,000 1,200,000 426,000 200,000 497,811 120,000 820,520 550,000 397,938 112,065
126,199,500
213,470,960
Prepared by: ILW
Date: 1/8/2012
Reviewed by:
Date:
RIT
1/11/2012
213,470,960
GRACE CORPORATION Lead Schedule - Financial Assets December 31, 2011 Account No.
Account Name
WP Ref
103
Marketable Securities
D
TOTAL
ORATION
l Assets
2009 Debit 1,010,000 1,010,000
2010 Credit -
Debit 1,150,000 1,150,000
2010
2011 Credit -
Debit 9,500,000 9,500,000
Credit -
PAJE Debit
Audited Balance Credit 9,500,000 9,500,000
Prepared by:
Reviewed by:
D Difference 8,350,000 8,350,000
Date:
Date:
Percentage 726.09% 726.09%
GRACE CORPORATION
Lead Schedule - Trade and Other Receivables December 31, 2011
Account No.
104 0 104-A 105 107
Account Name
Accounts Receivable Acounts Receivable - Others Allowance for Bad Debts Notes Receivable Accrued Interest Receivable TOTAL
TION
r Receivables
WP Ref
E E E E E
2009 Debit 4,650,000.00 4,200,000 600,000 9,450,000
2010 Credit -
Debit 5,850,000.00 6,400,000 1,500,000 13,750,000
2010
2011 Credit -
Debit 10,318,635.00 2,970,000 38,853 13,327,488
Credit 497,811 497,811
PAJE Debit
Audited Balance Credit 10,318,635.00 (497,811) 2,970,000 38,853 12,829,677
Prepared by:
Reviewed by:
E Difference
4,468,635.00 (6,400,000) (497,811) 1,470,000 38,853 (920,323)
Date:
Date:
Percentage
76.39% -100.00% 0.00% 98.00% 0.00% -6.69%
GRACE CORPORATION
Lead Schedule - Cash and Cash Equivalents December 31, 2011 Account No. 101 102
Account Name Cash in Bank Petty Cash Fund TOTAL
WP Ref C C
PORATION
and Cash Equivalents
2009 Debit 150,000 10,000 160,000
2010 Credit -
Debit 1,000,000 100,000 1,100,000
2010
2011 Credit -
Debit 4,709,230 1,700 4,710,930
Credit -
PAJE Debit
Audited Balance Credit 4,709,230 1,700 4,710,930
Prepared by:
Reviewed by:
C Difference 3,709,230 (98,300) 3,610,930
Date:
Date:
Percentage 370.92% -98.30% 328.27%
GRACE CORPORATION Lead Schedule - Inventories December 31, 2011 Account No.
106
Account Name
Merchandise Inventory TOTAL
WP Ref
F
ORATION
2009 Debit 700,000 700,000
2010 Credit
Debit -
900,000 900,000
2010
2011 Credit -
Debit 4,402,787 4,402,787
Credit -
PAJE Debit
Audited Balance Credit 4,402,787 4,402,787
Prepared by:
Reviewed by:
F Difference
3,502,787 3,502,787
Date:
Date:
Percentage
389.20% 389.20%
GRACE CORPORATION
Lead Schedule - Prepayments and Other Current A December 31, 2011
Account No. 108 109 110
Account Name Prepaid Advertising Prepaid Insurance Unused Supplies TOTAL
WP Ref G G G
ORATION
ments and Other Current Assets
2009 Debit 50,000 60,000 200,000 310,000
2010 Credit
Debit -
120,000 80,000 300,000 500,000
2010
2011 Credit
Debit -
50,000 50,000 300,000 400,000
Credit -
PAJE Debit
Audited Balance Credit 50,000 50,000 300,000 400,000
Prepared by:
Reviewed by:
G Difference (70,000) (30,000) (100,000)
Date:
Date:
Percentage -58% -38% -20%
Account No. 201 202 202-A 203 203-A 204 204-A 205 205-A
GRACE CORPORATION
Lead Schedule - Property, Plant and Equioment December 31, 2011 Account Name Land Building Accumulated Depreciation - Building Furniture and Fixture Accumulated Depreciation - Furniture and Fixture Transportation Equipment Accumulated Depreciation - Transportation Equipment Office Equipment Accumulated Depreciation - Office Equipment TOTAL
WP Ref K K K K K K K K K
2009 Debit 16,500,000 33,000,000 3,550,000 6,000,000 2,130,000 61,180,000
2010 Credit -
Debit 16,500,000 33,000,000 3,550,000 6,000,000 2,130,000 61,180,000
2010
2011 Credit -
Debit 16,500,000 53,000,000 3,550,000 6,000,000 2,130,000 78,549,000
Credit 650,000 355,000 1,200,000 426,000
PAJE Debit
Audited Balance Credit 16,500,000 53,000,000 650,000 3,550,000 355,000 6,000,000 1,200,000 2,130,000 426,000 78,549,000
Prepared by:
Reviewed by:
K Difference 20,000,000 650,000 355,000 1,200,000 426,000 17,369,000
Date:
Date:
Percentage 61% 28%
GRACE CORPORATION Lead Schedule - Intangible Assets December 31, 2011
Account No.
301
Account Name
Organization Cost TOTAL
WP Ref M
PORATION
gible Assets
2009 Debit 1,000,000 1,000,000
2010 Credit -
Debit 1,000,000 1,000,000
2010
2011 Credit -
Debit 800,000 800,000
Credit -
PAJE Debit
Audited Balance Credit 800,000 800,000
Prepared by:
Reviewed by:
M Difference
(200,000) (200,000)
Date:
Date:
Percentage
-20% -20%
GRACE CORPORATION Lead Schedule - Trade and Other Payables December 31, 2011
Account No. 1001 1004 1005 1006 1007
Account Name Accounts Payable SSS Medicare Premium Payable Withholding Taxes Payable HDMF Premiums Payable Income Tax Payable Accrued Interest Payable TOTAL
WP Ref N N N N N N
RATION
r Payables
2009 Debit -
2010 Credit 900,000.00 52,000.00 40,500.00 21,500.00 1,014,000.00
Debit -
2010
2011 Credit 906,500.00 62,000.00 52,500.00 29,500.00 11,769,300.00 12,819,800.00
Debit -
Credit 5,124,090.00 144,720.00 129,600.00 63,200.00 22,223,916.00 66,565.00 27,752,091.00
PAJE Debit
Audited Balance Credit 5,124,090.00 144,720.00 129,600.00 63,200.00 66,565.00 5,528,175.00
Prepared by:
Reviewed by:
N Difference 4,217,590.00 82,720.00 77,100.00 33,700.00 66,565.00 (7,291,625.00)
Date:
Date:
Percentage 465% 133% 147% 114% 0% -57%
GRACE CORPORATION Lead Schedule - Notes Payable December 31, 2011 Account No. 1002 1002 1003
Account Name Notes Payable Notes Payable - Non Trade Notes Payable - Officer TOTAL
WP Ref O O O
ORATION
Payable
2009 Debit
2010 Credit
-
14,000,000 14,000,000
Debit -
2010
2011 Credit 21,000,000 21,000,000
Debit -
Credit 3,506,500 1,700,000 5,206,500
PAJE Debit
Audited Balance Credit 3,506,500 1,700,000 5,206,500
Prepared by:
Reviewed by:
O Difference 3,506,500 (21,000,000) 1,700,000 (15,793,500)
Date:
Date:
Percentage 0% -100% 0% -75%
GRACE CORP
Working Income Statement - Lead Schedule For the Years Ended December 31, 2009-2011 Account Name
Unadjusted Balance 2011 Balance 2010 Balance
Sales Cost of Sales Gross Profit
110,244,403 0 110,244,403
53,439,000 0 53,439,000
Operating Expenses Income from Operations
(36,301,471) 73,942,932
(9,688,500) 43,750,500
248,853 (112,065) 74,079,720 (22,223,916) 51,855,804
110,000 (445,500) 43,415,000 (13,024,500)
Other Income Finance Cost Taxable Income Income Tax (30%) Net Income
30,390,500
Prepared by: Reviewed by:
ad Schedule 1, 2009-2011
d Balance 2009 Balance 47,916,000 0 47,916,000 (8,400,500) 39,515,500 80,000 (364,500) 39,231,000 (11,769,300) 27,461,700
Date: Date:
GRACE CORPORATION Lead Schedule - VAT Payable December 31, 2011 Account No.
Account Name
WP Ref
2009 Debit
1008 111
Output Tax Input Tax TOTAL
P P
450,000 450,000
TION
2009
2010 Credit 600,000 600,000
Debit 600,000 600,000
Credit 1,000,000 1,000,000
2011 Debit 1,556,422 1,556,422
PAJE Credit 2,470,332 2,470,332
Debit
PAJE
Audited Balance
Difference
Credit 2,470,332 (1,556,422) 913,910
1,470,332 (1,556,422) (86,090)
Prepared by:
Date:
Reviewed by:
Date:
P Percentage 147.03% -259.40% -21.52%
Account No.
2001 2002 2003 2004
2005
GRACE CORPORATION Lead Schedule - Shareholders' Equity December 31, 2011
Account Name
Ordinary Share Capital Subscribed Ordinary Share Capital Subscription Receivable - Ordinary Share Capital Premium in Excess of Par Value - Ordinary Share Capital RE Composition Previous Balance Dividends Declared Net Income Other Comprehensive Income Retained Earnings TOTALS
WP Ref
T T T T
T
2009 Debit
2010 Credit
-
-
Debit
45,000,000 3,500,000
48,500,000
-
-
2010
2011 Credit
Debit
45,000,000 3,500,000
48,500,000
Credit
2,625,000 -
70,000,000 5,000,000 5,250,000
-
4,481,456
-
4,481,456 82,106,456
PAJE Debit
Audited Balance Credit 70,000,000 5,000,000 (2,625,000) 5,250,000
4,481,456 4,481,456 86,587,912
Prepared by:
Reviewed by:
T Difference
25,000,000 5,000,000 (2,625,000) 1,750,000
4,481,456 4,481,456 38,087,912
Date:
Date:
Percentage
55.56% 50.00%
#DIV/0! #DIV/0! 78.53%
GRACE CORPORATION Lead Schedule - Net Sales December 31, 2011 Account No.
Account Name
WP Ref
2009 Debit
3001 3002 3003
Sales Sales Discount Sales Returns and Allowances TOTAL
UA UA UA
200,000 650,000 850,000
2009
2010 Credit 48,766,000 48,766,000
Debit 300,000 800,000 1,100,000
2011 Credit 54,539,000 54,539,000
Debit 866,435 1,041,475 1,907,910
Credit 112,152,313 112,152,313
UA PAJE Debit
Audited Balance
Difference
Percentage
Credit 112,152,313 (866,435) (1,041,475) 110,244,403
57,613,313 566,435 241,475 56,805,403
Prepared by:
Date:
Reviewed by:
Date:
105.64% 188.81% 30.18% 106.30%
GRACE CORPORATION Lead Schedule - Other Income December 31, 2011 Account No.
Account Name
WP Ref
2009 Debit
3004
Interest Income TOTAL
UB
Credit -
80,000 80,000
2010 Debit
2011 Credit
-
110,000 110,000
Debit
PAJE Credit
-
248,853 248,853
Debit
UB PAJE
Audited Balance
Difference
Percentage
Credit 248,853 248,853
138,853 138,853
Prepared by:
Date:
Reviewed by:
Date:
126.23% 126.23%
GRACE CORPORATION Lead Schedule - Cost of Sales December 31, 2011
Account No.
4001 3005
Account Name
Cost of Sales Purchase Discount TOTAL
WP Ref
-
ORATION
2009 Debit 29,085,000 29,085,000
2010 Credit -
Debit 34,785,500 34,785,500
2010
2011 Credit -
Debit 56,646,887 56,642,367
Credit 4,520
PAJE Debit
Audited Balance Credit 56,646,887 4,520 56,642,367
Prepared by:
Reviewed by:
VA Difference
21,861,387 4,520 21,856,867
Date:
Date:
Percentage
63% 0% 63%
Account No. 4002 4003 4004 4005 4006 4007 4008 4009 4010 4011 4012 4013 4014 4015 4016 4017 4018
GRACE CORPORATION Lead Schedule - Operating Expenses December 31, 2011 Account Name Salaries Expense Supplies Expense Taxes and Licenses SSS Premium Expense HDMF Premium Expense Gasoline Expense Light, Water & Telephone Depreciation Expense - Building Depreciation Expense - Furniture and Fixture Depreciation Expense - Transporation Equipment Depreciation Expense - Office Equipment Amortization of Organization Cost Bad Debts Expense Representation Expense Advertising Expense Insurance Expense Miscellaneous Expenses TOTAL
WP Ref VB VB VB VB VB VB VB VB VB VB VB VB VB VB VB VB VB
2009 Debit 6,253,000 67,000 750,000 210,000 70,000 86,500 184,000 230,000 113,000 207,000 170,000 60,000 8,400,500
2010 Credit -
Debit 7,000,000 108,000 900,000 270,500 100,000 100,000 210,000 280,000 132,000 318,000 200,000 70,000 9,688,500
2010
2011 Credit -
Debit 24,022,840 1,411,862 910,000 1,270,500 1,100,000 1,146,000 1,223,000 650,000 355,000 1,200,000 426,000 200,000 497,811 120,000 820,520 550,000 397,938 36,301,471
Credit -
PAJE Debit
Audited Balance Credit 24,022,840 1,411,862 910,000 1,270,500 1,100,000 1,146,000 1,223,000 650,000 355,000 1,200,000 426,000 200,000 497,811 120,000 820,520 550,000 397,938 36,301,471
Prepared by:
Reviewed by:
VB Difference 17,022,840 1,303,862 10,000 1,000,000 1,000,000 1,046,000 1,013,000 650,000 355,000 1,200,000 426,000 200,000 217,811 (12,000) 502,520 350,000 327,938 26,612,971
Date:
Date:
Percentage 243.18% 1207.28% 1.11% 369.69% 1000.00% 1046.00% 482.38% 0.00% 0.00% 0.00% 0.00% 0.00% 77.79% -9.09% 158.03% 175.00% 468.48%
GRACE CORPORATION Lead Schedule - Finance Cost December 31, 2011 Account No. 4019
Account Name Interest Expense TOTAL
WP Ref VC
ORATION 2009 Debit 364,500 364,500
2010 Credit
Debit -
445,500 445,500
2010
2011 Credit
Debit -
Credit 112,065 112,065
-
PAJE Debit
Audited Balance Credit 112,065 112,065
Prepared by:
Reviewed by:
VC Difference (333,435) (333,435)
Date:
Date:
Percentage -74.85%
Work
ACCOUNT TITLE
ASSETS Current Assets Cash and Cash Equivalents Financial Assets Short- term Investments Trade and Other Receivables (net) Merchandise Inventory Prepayments TOTAL CURRENT ASSETS Non-current Assets Property, Plant and Equipment (net) Intangibles Assets TOTAL NONCURRENT ASSETS TOTAL ASSETS LIABILITIES AND EQUITY Current Liabilities Trade and Other Payables Notes Payable VAT Payable TOTAL CURRENT LIABILITIES TOTAL LIABILITIES Shareholder's Equity Share Capital Subscribed Share Capital Subscription Receivable Additional Paid-in Capital Retained Earnings TOTAL EQUITY
WP Ref
C D
TOTAL LIABILITIES AND EQUITY
GRACE CORPORATION
Working Statement of Financial Position- Le As of December 31, 2011, 2010, 20 Balances (Php) December 31, 2009
Balances (Php) December 31, 2010
160,000 1,010,000
1,100,000 1,150,000
9,450,000 700,000 200,000 11,520,000
13,750,000 900,000 300,000 17,200,000
61,180,000 1,000,000 62,180,000 73,700,000
61,180,000 1,000,000 62,180,000 79,380,000
1,014,000 14,000,000 150,000 15,164,000 15,164,000
12,819,800 21,000,000 400,000 34,219,800 34,219,800
45,000,000 -
45,000,000 -
15,164,000
34,219,800
ACE CORPORATION
nt of Financial Position- Lead Schedule ecember 31, 2011, 2010, 2009 Unadjusted (Php) December 31, 2011
Adjustments (Php) Debit
Credit
4,710,930 9,500,000
-
-
12,829,677 4,402,787 300,000 31,743,394
-
-
78,549,000 800,000 79,349,000 111,092,394
-
-
27,752,091 5,206,500 913,910 33,872,501 33,872,501
-
-
5,000,000 5,000,000
-
-
38,872,501
-
-
e
Adjusted (Php) 12/31/2011
4,710,930 9,500,000
Increase/Decrease (Php)
3,610,930 8,350,000
Percentage Change
328.27% 726.09%
12,829,677 4,402,787 300,000 31,743,394
(920,323) 3,502,787 14,543,394
-6.69% 389.20% 0.00%
78,549,000 800,000 79,349,000 111,092,394
17,369,000 (200,000) 17,169,000 31,712,394
28.39% -20.00%
5,528,175 5,206,500 913,910 11,648,585 11,648,585
(7,291,625) (15,793,500) (86,090) (23,171,215) (23,171,215)
-56.88% -75.21% -21.52%
25,000,000 5,000,000 (2,625,000) 4,481,456
0.00% 55.56% 0.00% 0.00% 0.00%
70,000,000 5,000,000 (2,625,000) 4,481,456
16,130,041
(18,689,759)
Prepared by:
Date:
Reviewed by:
Date:
GRACE CO
Working Cash Flow Statem December 31 2011 ACCOUNT TITLE OPERATING ACTIVITIES Net Income before Tax Adjustments to reconcile net income to net operating income before working capital changes Depreciation Amortization Bad Debts Expense Gain on Sale of Securities Unrealized Gain/Losses Loss on Obsolescence Interest Income Interest Expense Operating Income Before Capital Changes
Changes in Operating Assets and Liabilities (Increase) Decrease in Marketable Securities (Increase) Decrease in Trade and Other Payables (Increase) Decrease in Merchadise Inventory (Increase) Decrease in Prepaid Expenses Increase (Decrease) in Trade and Other Payables Increase (Decrease) in Income Tax Payable Cash Generated from Operations Accrued Expenses Paid Income Taxes Paid Net Cash (used) provided by Operating Activities INVESTING ACTIVITIES Acquisition of Property, Plant and Equipment Recognition of Amortization Cost as an Intangible Asset Sale of an Intangible Asset PCIB Time Deposit
Net Cash (used) provided by Investing Activities FINANCING ACTIVITIES Due to related party Payment of Notes Payable Increase in Notes Payable Subscription Receivable Issuance of Shares Dividends Payable Net Cash (used) provided by Financing Activities
NET CASH Add: Beginning Cash Balance CASH BALANCE: DEC 31
GRACE CORP
Cash Flow Statement - Lead Schedule ecember 31 2011, 2010, 2009 WP Ref
IS
Adjusted Balance 2009
0
Adjusted Balance 2010
(11,769,300)
Adjusted Balance 2011
(22,223,916)
rating income
les
les
VB VB VB UB UB VB UB VC
WBS WBS WBS WBS WBS WBS
es
ible Asset
WBS WBS
230,000
280,000
2,631,000 200,000 497,811
(80,000) 364,500 514,500
(110,000) 445,500 (11,153,800)
(248,853) 112,065 (19,031,893)
#VALUE! 0 0 0 0 0
#VALUE! 0 (9,450,000) (700,000) 0 14,000,000
(940,000) 0 (4,300,000) (200,000) 0 7,000,000
#VALUE!
#VALUE!
(17,471,893)
0 0 0
0 61,180,000 0
0 0 0
s
es
WBS WBS WBS WBS WBS WBS
0
61,180,000
0
0 0 0 0
0 1,014,000 0 0
11,805,800 0 0 0
0
1,014,000
11,805,800
#VALUE! 0 #VALUE!
#VALUE! 0 #VALUE!
(5,666,093) 0 (5,666,093)
Prepared by:
Date:
Reviewed by:
Date:
Adjusted Balance 2011
(22,223,916)
2,631,000 200,000 497,811
(248,853) 112,065 (19,031,893)
(940,000) 0 (4,300,000) (200,000) 0 7,000,000
(17,471,893)
0 0 0
0
11,805,800 0 0 0 11,805,800
(5,666,093) 0 (5,666,093)
GRACE CO
Proposed Adju For the Years Ended Date
Account Title
1
2011 31-Dec C-1
2
C-1
Accounts Receivable
3
C-1
Petty Cash
4
C-1
Cash Short and Over
5
Petty Cash
Cash in Bank Discount on Notes Payable
Notes Payable
6
Miscellaneous Expense
7
Cash in Bank Miscellaneous Expenses
8
Accounts Receivable
9
Accounts Receivable - Gwendo Reyes
10
Accounts Receivable - Sampollo Company
11
Accounts Receivable - J.R. Alano Trading
12
Accounts Receivable - Susan de Leon
13
Sales Output Tax
14
Cash
15
Accounts Receivable - Chad Acosta
16
Sales
17
Sales Output VAT
18
Accounts Receivable - Ida Company
19
Accounts Receivable - Benitez Merchandising
20
Cash
21
Accounts Receivable
22
Cash
23
Cash
24
Cash
25
Bad Debts Expense
26
27
28
29
GRACE CORPORATION Proposed Adjusted Journal Entries For the Years Ended December 31, 2009-2011 Account Title Petty Cash Accrued Expense Payable To record unreplenished expense.
WP Ref C N
Accounts Receivable Petty Cash Fund To record Advances or I.O.U.s to employees. Petty Cash Cash Short and Over To record cash overage Cash Short and Over Miscellaneous Income To reclassify cash overage to miscellaneous income. Cash in Bank Discount on Notes Payable To record proceeds of promissory note Miscellaneous Expense Cash in Bank To record bank service charge Cash in Bank Miscellaneous Expenses Notes Receivable To record collection of notes receivable Accounts Receivable Cash in Bank To reverse entry for the receipt of a postdated check.
C
VB
Accounts Receivable - Gwendo Reyes Advances from Customers To reclassify credit balances of Gwendo Reyes Accounts Receivable - Sampollo Company Accounts Receivable - J.R. Alano Trading To reclassify account balances erroneously recorded in wrong SL Accounts Receivable - J.R. Alano Trading Accounts Receivable - Sampollo Company To reclassify payments made by Sampollo OR #110 Accounts Receivable - Susan de Leon Accounts Receivable - Chad Acosta To reclassify account balances erroneously recorded in wrong SL Sales Output Tax Accounts Receivable - Susan de Leon To record overstatement of SI #1258
Accounts Receivable - Susan de Leon Advances from Customers To record payment made by Susan. OR #122 Accounts Receivable - Chad Acosta Accounts Receivable - Susan de Leon To reclassify payment made by Susan de Leon, OR #112 Sales Accounts Receivable - Anna Reyes To derecognize sales made to Anna due to lack of supporting documents Sales Output VAT Accounts Receivable - Benitez Merchandising To record overstatement of SI #1255 Accounts Receivable - Ida Company Sales Output tax To record understatement of SI #1256
Accounts Receivable - Benitez Merchandising Sales Output Tax To record SI #1266
Accounts Receivable - Benitez Merchandising To record payment by Benitez OR # 121 Accounts Receivable Sales To record sales to Louie Tan
Accounts Receivable To record payment made by Louie Tan OR #118 Cash Output Tax Sales To record the unrecorded Sales Invoice No. 1264
Output Tax Sales To record unrecorded Sales Invoice No. 1265 Bad Debts Expense Allowance for Bad Debts To record adjustments to Allowance for Bad Debts
ORATION
ournal Entries mber 31, 2009-2011 Debit
Credit
Posting Stat
800.00 800.00
2,800.00 2,800.00
1,704.00 1,704.00
1,704.00 1,704.00
7,900,000 2,100,000 10,000,000
2,500 2,500
490,000 10,000 500,000
85,113 85,113
50,000 50,000
730,350 730,350
580,350 580,350
681,000 681,000
1,364 136 1,500
204,475 202,975 1,500
681,000 681,000
300,000 300,000
68 7 75
10 9 1
232,000 210,909 21,091
93,750 93,750
484,000 484,000
484,000 484,000
165,550 15,050 150,500
186,250
16,932 169,318
2,306 2,306
GRACE CORPORATION Cash Count December 31, 2011
I. OBJECTIVES 1 2 3
To verify the existence of cash on hand and petty cash fund at year en To determine that cash on hand and petty cash fund are properly value To determine that cash on hand and petty cash fund of the client are r
1
Existence
II. ASSERTIONS
III. PROCEDURES 1 2 3 4 5 6
Performed surprise cash count Controlled all cash funds and negotiable instruments held by the clien Performed cash count in the presence of the Cash Custodian Listed each item in the fund showing the denominations of bills and co Obtained Cash Custodian's signature to acknowledge the return of item Reconciled items counted with general ledger balances
IV. FINDINGS
CASH DENOMINATION BILLS
₱ ₱ ₱ ₱ ₱
500 200 100 50 20
COINS
₱
10
₱ ₱ ₱
5 1 1
₱
0
TOTAL BILLS AND COINS CASH ITEMS Check for Deposits Date 12.28.2011 12.30.2011 12.30.2011 12.31.2011 12.31.2011
Maker Louie Tan Eagle Contractor Dynasty Construction Benitez Merchandising Susan de Leon
Unreplenished Vouchers Date 12.10.11 12.10.11 12.18.11 12.20.11 12.21.11 12.29.11
Payee Luigi's Deli Mobilshel Gasoline Station Mr. Jose Castro MWSS Bureau of Posts Mobilshel Gasoline Station
Advances or I.O.U.s Date 12.29.11 12.29.11
Payee Maricel Pastor
Jon Sandoval
Total Amount of Fund per Count Total Amount of Fund per Books or Receipts Petty Cash Fund per Ledger Undeposited Collections OVERAGE
I hereby certify that the above fund was counted in my presence by Rhena
______________
1 2 3 4 5
A check with OR # 119 is erroneously included as P165,560 in the cas
The list of checks for deposit included PNB Check #203 dated January The unreplenished vouchers are Petty Cash Voucher Nos. 0801-0806. The telephone bill to PLDT in the Petty Cash Book of P800 is not suppo Petty Cash Voucher Nos. 0807 and 0808 are Advances and I.O.U.s
Proposed Adjusting Journal Entries: Petty Cash Fund Accrued Expense Payable To correct entry made in recording telephone bill not supported b Accounts Receivable Petty Cash Fund To record Advances or I.O.U.s to employees. Petty Cash Fund Miscelleneous Income To record overage.
LEGEND: ∂
« ü
- Computations Verified - Footed - Checked Against General Ledger
V. CONCLUSIONS
The existence of the recorded cash and petty cash fund of the client had been
RATION
on hand and petty cash fund at year end and petty cash fund are properly valued. and petty cash fund of the client are reflected on the Statement of Financial Position at year end
egotiable instruments held by the client until all the funds have been counted esence of the Cash Custodian owing the denominations of bills and coins ature to acknowledge the return of items counted general ledger balances
CASH COUNT SHEET QUANTITY ₱ ₱ ₱ ₱ ₱
AMOUNT 1 1 2 3 5
₱ ₱ ₱ ₱ ₱
500 200 200 150 100
₱ ₱ ₱ ₱
9 20 50 20
₱ ₱ ₱ ₱
90 100 50 10
₱
40
₱
4
C-1.4 C-1.4 C-1.4 C-1.4 C-1.4
₱ ₱ ₱ ₱ ₱
484,000 165,550 186,250 93,750 204,475
C1.2 C1.2 C1.2 C1.2 C1.2 C1.2
₱ ₱ ₱ ₱ ₱ ₱
2,000 2,050 250 500 150 2,550
C-1.3 ₱ C-1.3 ₱
2,550 250
₱ ₱
10,000 1,134,025
Payee Grace Grace Grace Grace Grace
Corporation Corporation Corporation Corporation Corporation
Particulars Representation Expense Gasoline Taxi Fare Water Bill Stamps Gasoline
was counted in my presence by Rhenalyn I. Tarucan of WC & Co., on January 5, 2012 at 8:00 AM and the same w me intact. _______________________________________
Cashier
eously included as P165,560 in the cash count made by the client instead of P165,550.
cluded PNB Check #203 dated January 15, 2012 is a post-dated check and is not included in the cash count for t e Petty Cash Voucher Nos. 0801-0806. e Petty Cash Book of P800 is not supported by a Petty Cash Voucher. nd 0808 are Advances and I.O.U.s
₱
800
ecording telephone bill not supported by a PCV. 2,800
U.s to employees. 1,704
d petty cash fund of the client had been verified through the cash count sheet. Adjusting entries are recommend
C-1
t year end
TOTAL ∂ ∂ ∂ ∂ ∂
₱
1,150
«
∂ ∂ ∂ ∂ ∂
₱ ₱
254
«
1,404
« C4
₱
1,134,025
«
₱
7,500
«
₱
2,800
₱
1,145,729
₱ ₱
1,144,025 1,704
ü
8:00 AM and the same was returned to
«
ed in the cash count for the year-ended December 31, 2011.
₱
800
2,800
1,704
g entries are recommended.
Prepared by: RIT Reviewed by: LCC
Date: 2/6/2012 Date: 2/26/2012
CASH Cash account conducted before the start of business on January 5, 2012 at 8:00 AM yielded the following COINS Denominations P 10.00 5.00 1.00 0.50 0.10
Qty. 9 20 50 20 40
CHECKS Date 12.28.2011 12.30.2011 12.30.2011 12.31.2011 12.31.2011 01.03.2012
Number PCIB Check #2255 FEBTC Check #408 PNB Check #1122 PCIB Check #4425 FEBTC Check #775 PNB Check #203 (dated Jan. 15, 2012)
OR 118 119 120 121 122 123
UNUSED STAMPS 11 pieces @ P 5.50 Vouchers for unreplenished expenses and advances were available on this date and found in order.
C-1.1
uary 5, 2012 at 8:00 AM yielded the
CURENCY Denominations P
Qty. 1 1 2 3 5
500.00 200.00 100.00 50.00 20.00
Drawer Louie Tan Eagle Contractor Dynasty Construction Benitez Merchandising Susan de Leon Luli Samson
able on this date and found in order.
C1.4
C1.4
Amount 484,000.00 165,560.00 186,250.00 93,750.00 204,475.00 29,725.00
C1 C1 C1 C1 C1
PETTY CASH BOO PETTY CASH FUND DATE
PAYEE
EXPLANATION
PCV. NO.
RECEIPTS
PAYMENTS
2011 Dec.1 Balance 8 Luigi's Deli
10,000.00 Refreshment
0800
C1.3
2,000.00
Gasoline
0801
C1.3
2,050.00
15 PLDT
Telephone Bill
0802
18 Co. Messenger
Taxi Fare
0803
20 MWSS
Water Bill
0804
21 Bureau of Posts
Stamps Gasoline
10 Mobilshel Gasoline Station
800.00 250.00
0805
C1.3 C1.3 C1.3
0806
C1.3
2,550.00
500.00 150.00
29 Mobilshel Gasoline Station
10,000.00
8,300.00
C-1.2
TTY CASH BOOK DISTRIBUTION OF PAYMENTS REPRESENTATION
LIGHT, WATER & TELEPHONE
GASOLINE
SUNDRIES ACCOUNTS
AMOUNT
2,000.00 2,050.00 800.00 Transpostation Expense
250.00
Supplies - Office
150.00
500.00
2,000.00
###
2,550.00
1,300.00
4,600.00
400.00
PETTY CASH VOUCHER
LUIGI'S DELI
TO:
PARTICULARS
Representation Expense
APPROVED BY:
PAID BY:
__________________________
__________________________
PETTY CASH VOUCHER
MOBILSHEL GASOLINE STATION
TO:
PARTICULARS
Gasoline expense for delivery of merchandise to Benitez Merchandising
APPROVED BY:
PAID BY:
__________________________
__________________________
PETTY CASH VOUCHER TO:
MR. JOSE CASTRO PARTICULARS
Transportation expense taxi fare
APPROVED BY:
PAID BY:
__________________________
__________________________
PETTY CASH VOUCHER TO:
MANILA WATER WORKS & SEWERAGE SYSTEM (MWSS) PARTICULARS
Water Bill
APPROVED BY:
PAID BY:
__________________________
__________________________
PETTY CASH VOUCHER TO:
BUREAU OF POSTS PARTICULARS
Stamps
APPROVED BY:
PAID BY:
__________________________
__________________________
PETTY CASH VOUCHER
MOBILSHEL GASOLINE STATION
TO:
PARTICULARS
Gasoline expense premium gasoline
APPROVED BY:
PAID BY:
__________________________
__________________________
PETTY CASH VOUCHER
JON SANDOVAL
TO:
PARTICULARS
I.O.U.
APPROVED BY:
PAID BY:
__________________________
__________________________
PETTY CASH VOUCHER
MARICEL PASTOR
TO:
PARTICULARS
I.O.U.
APPROVED BY:
PAID BY:
__________________________
__________________________
C-1.3 NO.
DATE
December 10, 2011
AMOUNT
TOTAL
P
2,000.00
P
2,000.00 C1.2
RECEIVED BY:
_______________
_______________
0801
__________________________ NO.
DATE
0802
December 10, 2011
AMOUNT
TOTAL
P
2,050.00
P
2,050.00 C1.2
RECEIVED BY: __________________________ NO.
DATE
0803
December 18, 2011
AMOUNT
TOTAL
250.00
P
250.00 C1.2
RECEIVED BY:
_______________
__________________________
0804
NO.
DATE
December 20, 2011
AMOUNT
TOTAL
P
500.00
P
500.00 C1.2
RECEIVED BY:
_______________
_______________
P
__________________________
0805
NO.
DATE
December 21, 2011
AMOUNT
TOTAL
P
150.00
P
150.00 C1.2
RECEIVED BY: __________________________ NO.
DATE
0806
December 29, 2011
AMOUNT
TOTAL
P
2,550.00
P
2,550.00 C1.2
RECEIVED BY:
_______________
__________________________
0808
NO.
DATE
December 29, 2011
AMOUNT
TOTAL
P
250.00
P
250.00
RECEIVED BY:
_______________
__________________________ NO.
DATE
0807
December 29, 2011
AMOUNT
TOTAL
P
2,550.00
P
2,550.00
RECEIVED BY:
_______________
__________________________
Grace
OFFICIAL RECEIPT
CORPORATION
No.
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8
VAT 2011-002-148 | TIN 4004-009-175
Telefax: 632 843 7690 | Website: www.gracecorporatio
Received from:
Date:
Legarda Company
December 1,2011
The sum of:
Invoice no.
Two hundred twenty four thousand five hundred pesos only
1121
In settlement of: Invoice # 1121 Cash:
P
Checks: PNB 481853
P
224,500.00
Total
P
224,500.00
Received by: TOTAL
Grace
OFFICIAL RECEIPT
CORPORATION
No.
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8
VAT 2011-002-148 | TIN 4004-009-175
Telefax: 632 843 7690 | Website: www.gracecorporatio
Received from:
Date:
Susan de Leon
December 1,2011
The sum of:
Invoice no.
One million thirty eight thousand eight hundred pesos only In settlement of:
1125 less:
Invoice # 1125
discount
Cash:
P
Checks: RCBC 329864
P
1,038,800.00
Total
P
1,038,800.00
Received by: TOTAL
Grac e
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
Received from:
OFFICIAL RECEIPT
No.
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8
Telefax: 632 843 7690 | Website: www.gracecorporatio
Date:
e
Benitez Merchandising
December 5,2011
The sum of:
Invoice no.
Three hundred sixty two thousand six hundred pesos only In settlement of:
1125 discount
Invoice # 1135 Cash:
P
Checks: SBTC 928421
P
362,600.00
Total
P
362,600.00
Received by: TOTAL
Grac e
OFFICIAL RECEIPT
CORPORATION
No.
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8
VAT 2011-002-148 | TIN 4004-009-175
Telefax: 632 843 7690 | Website: www.gracecorporatio
Received from:
Date:
Johann Morales
December 8,2011
The sum of:
Invoice no.
Five hundred thousand pesos only
1133
In settlement of: Invoice # 1133 Cash:
P
Checks: PCIBank 4825
P
500,000.00
Total
P
500,000.00
Received by: TOTAL
Grace
OFFICIAL RECEIPT
CORPORATION
No.
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8
VAT 2011-002-148 | TIN 4004-009-175
Telefax: 632 843 7690 | Website: www.gracecorporatio
Received from:
Date:
Solomon Enterprises
December 8,2011
The sum of:
Invoice no.
Four hundred ninety thousand pesos only
1149
In settlement of:
less: returns
Invoice # 1149
discount
Cash:
P
Checks: CBC 123498
P
490,000.00
Total
P
490,000.00
Received by: TOTAL
Grace
OFFICIAL RECEIPT
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
Received from: Eagle Contractors The sum of: Two hundred forty one thousans eight hundred eighty eight pesos only
No.
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8
Telefax: 632 843 7690 | Website: www.gracecorporatio
Date: December 11,2011 Invoice no. 1251
In settlement of:
less: discount
Invoice # 1251 Cash:
P
Checks: RCBC 728465
P
241,888.00
Total
P
241,888.00
Received by: TOTAL
Grace
OFFICIAL RECEIPT
CORPORATION
No.
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8
VAT 2011-002-148 | TIN 4004-009-175
Telefax: 632 843 7690 | Website: www.gracecorporatio
Received from:
Date:
Ida Coronel
December 12,2011
The sum of:
Invoice no.
Five hundred twenty eight thousand pesos only
1152
In settlement of: Invoice # 1152 Cash:
P
Checks: BPI 249169
P
528,000.00
Total
P
528,000.00
Received by: TOTAL
Grace
OFFICIAL RECEIPT
CORPORATION
No.
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8
VAT 2011-002-148 | TIN 4004-009-175
Telefax: 632 843 7690 | Website: www.gracecorporatio
Received from:
Date:
Luli Samson
December 12,2011
The sum of:
Invoice no.
Eight hundred forty five thousand pesos only
1231
In settlement of: Invoice # 1231 Cash:
P
Checks: BPI 249169
P
845,000.00
Total
P
845,000.00
Received by: TOTAL
Grace
OFFICIAL RECEIPT
CORPORATION
No.
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8
VAT 2011-002-148 | TIN 4004-009-175
Telefax: 632 843 7690 | Website: www.gracecorporatio
Received from:
Date:
Valera Company
December 15,2011
The sum of:
Invoice no.
Four hundred ten thousand pesos only
1070
In settlement of: Invoice # 1070 Cash:
P
Checks: RCBC # 876521
P
410,000.00
Total
P
410,000.00
Received by: TOTAL
Grace
OFFICIAL RECEIPT
CORPORATION
No.
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8
VAT 2011-002-148 | TIN 4004-009-175
Telefax: 632 843 7690 | Website: www.gracecorporatio
Received from:
Date:
Sampollo Company
December 12,2011
The sum of:
Invoice no.
Fifty six thousand eight hundred seventy four pesos only In settlement of:
1253 less: discount
Invoice # 1253 Cash:
P 56, 874.00
Checks: P
Total
P
56,874.00
Received by: TOTAL
Grace CORPORATION
VAT 2011-002-148 | TIN 4004-009-175
Received from: Cora Tayag
OFFICIAL RECEIPT
No.
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8
Telefax: 632 843 7690 | Website: www.gracecorporatio
Date: December 17,2011
The sum of:
Invoice no.
Seven hundred fifty seven thousand five hundred pesos only
1100
In settlement of: Invoice # 1100 Cash:
P
Checks: PCIBank 246810
P
757,500.00
Total
P
757,500.00
Received by: TOTAL
Grace
OFFICIAL RECEIPT
CORPORATION
No.
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8
VAT 2011-002-148 | TIN 4004-009-175
Telefax: 632 843 7690 | Website: www.gracecorporatio
Received from:
Date:
Susan de Leon
December 1,2011
The sum of:
Invoice no.
Six hundred eighty one thousand pesos only
1242
In settlement of: Invoice # 1242 Cash:
P
Checks: RCBC 369125
P
681,000.00
Total
P
681,000.00
Received by: TOTAL
Grace
OFFICIAL RECEIPT
CORPORATION
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8
VAT 2011-002-148 | TIN 4004-009-175
Telefax: 632 843 7690 | Website: www.gracecorporatio
Received from:
Date:
Benitez Merchandising
December 20,2011
The sum of:
Invoice no.
Nine hundred eighty thousand pesos only
1254
In settlement of:
1255
Invoice # 1254, 1255 Cash:
No.
total P
less:
Checks:
returns
PCIBank 481265
P
980,000.00
Total
P
980,000.00
discounts
Received by: TOTAL
Grace
OFFICIAL RECEIPT
CORPORATION
No.
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8
VAT 2011-002-148 | TIN 4004-009-175
Telefax: 632 843 7690 | Website: www.gracecorporatio
Received from:
Date:
Building Blocks, Inc.
December 23,2011
The sum of:
Invoice no.
One hundred eighty seven thousand two hundred pesos only In settlement of:
1259 1260
Invoice # 1259, 1260 Cash:
P
Checks: PNB 510152
P
187,200.00
Total
P
187,200.00
Received by: TOTAL
Grace
OFFICIAL RECEIPT
CORPORATION
No.
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8
VAT 2011-002-148 | TIN 4004-009-175
Telefax: 632 843 7690 | Website: www.gracecorporatio
Received from:
Date:
Dynasty Construction The sum of:
Invoice no.
Four thousand six hundred twenty five pesos only
1252
In settlement of: Invoice # 1252 Cash:
P
4,625
Checks: P
Total
P
4,625.00
Received by: TOTAL
Grace CORPORATION
VAT 2011-002-148 | TIN 4004-009-175
Received from:
OFFICIAL RECEIPT
No.
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8
Telefax: 632 843 7690 | Website: www.gracecorporatio
Date:
M. Paredes
December 26,2011
The sum of:
Invoice no.
Two million six hundred twenty five thousand pesos only In settlement of:
Subscription Payment
Subscription Fee Cash:
P
Checks: RCBC 481216
P
2,625,000.00
Total
P
2,625,000.00
Received by: TOTAL
Grace
OFFICIAL RECEIPT
CORPORATION
No.
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8
VAT 2011-002-148 | TIN 4004-009-175
Telefax: 632 843 7690 | Website: www.gracecorporatio
Received from:
Date:
Luli Samson
December 26,2011
The sum of:
Invoice no.
Eighty five thousand one hundred thirteen pesos only In settlement of:
1257 less: discount
Invoice # 1257 Cash:
P
Checks:
Total
P
85,113.00
P
85,113.00
Received by: TOTAL
Grace
OFFICIAL RECEIPT
CORPORATION
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8
VAT 2011-002-148 | TIN 4004-009-175
Telefax: 632 843 7690 | Website: www.gracecorporatio
Received from:
Date:
Louie Tan
December 28,2011
The sum of:
Invoice no.
Four hundred eighty four thousand pesos only
1240
In settlement of: Invoice # 1240 Cash:
P
Checks: PCIB 2255
No.
P
484,000.00
Total
P
484,000.00
Received by: TOTAL
Grace
OFFICIAL RECEIPT
CORPORATION
No.
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8
VAT 2011-002-148 | TIN 4004-009-175
Telefax: 632 843 7690 | Website: www.gracecorporatio
Received from:
Date:
Eagle Contractos
December 30,2011
The sum of:
Invoice no.
One hundred sixty five thousand five hundred fifty pesos only
1264
In settlement of: Invoice # 1264 Cash:
P
Checks: FEBTC 408
P
165,550.00
Total
P
165,550.00
Received by: TOTAL
Grace
OFFICIAL RECEIPT
CORPORATION
No.
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8
VAT 2011-002-148 | TIN 4004-009-175
Telefax: 632 843 7690 | Website: www.gracecorporatio
Received from:
Date:
Dynasty Construction
December 30,2011
The sum of:
Invoice no.
One hundred eighty six thousand two hundred fifty pesos only
1265
In settlement of: Invoice # 1265 Cash:
P
Checks: PNB 1122
P
186,250.00
Total
P
186,250.00
Received by: TOTAL
Grace
OFFICIAL RECEIPT
CORPORATION
No.
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8
VAT 2011-002-148 | TIN 4004-009-175
Telefax: 632 843 7690 | Website: www.gracecorporatio
Received from:
Date:
Benitez Merchandising
December 31, 2011
The sum of:
Invoice no.
Ninety three thousand seven hundred fifty pesos only
1266
In settlement of: Cash:
P
Checks: PCIB 4425
P
93,750.00
Total
P
93,750.00
Received by: TOTAL
Grace
OFFICIAL RECEIPT
CORPORATION
No.
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8
VAT 2011-002-148 | TIN 4004-009-175
Telefax: 632 843 7690 | Website: www.gracecorporatio
Received from:
Date:
Susan de Leon
December 31, 2011
The sum of:
Invoice no.
Two hundred four thousand four hundred seventy five pesos only
1258
In settlement of: Cash:
P
Checks: FEBTC 775
P
204,475.00
Total
P
204,475.00
Received by: TOTAL
Grace CORPORATION
VAT 2011-002-148 | TIN 4004-009-175
Received from: Luli Samson
OFFICIAL RECEIPT
No.
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 8
Telefax: 632 843 7690 | Website: www.gracecorporatio
Date: January 3,2005
The sum of:
Invoice no.
Twenty nine thousand seven hundred twenty five pesos only
1268
In settlement of: Invoice # 1268 Cash:
P
Checks: PCIB 2277
P
29,725.00
Total
P
29,725.00
Received by: TOTAL
C-1.4 101
Aquino Avenue, Paranaque City | Tel: 632 843 7689
2 843 7690 | Website: www.gracecorporation.biz.ph
ecember 1,2011 Amount 224,500.00
224,511.00
102
Aquino Avenue, Paranaque City | Tel: 632 843 7689
2 843 7690 | Website: www.gracecorporation.biz.ph
ecember 1,2011 Amount 1,600,000.00 (21,200.00)
1,578,800.00
103
Aquino Avenue, Paranaque City | Tel: 632 843 7689
2 843 7690 | Website: www.gracecorporation.biz.ph
ecember 5,2011 Amount 370,000.00 (7,400.00)
362,600.00
104
Aquino Avenue, Paranaque City | Tel: 632 843 7689
2 843 7690 | Website: www.gracecorporation.biz.ph
ecember 8,2011 Amount 500,000.00
500,000.00
105
Aquino Avenue, Paranaque City | Tel: 632 843 7689
2 843 7690 | Website: www.gracecorporation.biz.ph
ecember 8,2011 Amount 520,000.00 (20,000.00) (10,000.00)
490,000.00
106
Aquino Avenue, Paranaque City | Tel: 632 843 7689
2 843 7690 | Website: www.gracecorporation.biz.ph
ecember 11,2011 Amount 246,825.00
(4,937.00)
241,888.00
107
Aquino Avenue, Paranaque City | Tel: 632 843 7689
2 843 7690 | Website: www.gracecorporation.biz.ph
ecember 12,2011 Amount 528,000.00
528,000.00
108
Aquino Avenue, Paranaque City | Tel: 632 843 7689
2 843 7690 | Website: www.gracecorporation.biz.ph
ecember 12,2011 Amount 845,000.00
845,000.00
109
Aquino Avenue, Paranaque City | Tel: 632 843 7689
2 843 7690 | Website: www.gracecorporation.biz.ph
ecember 15,2011 Amount 410,000.00
410,000.00
110
Aquino Avenue, Paranaque City | Tel: 632 843 7689
2 843 7690 | Website: www.gracecorporation.biz.ph
ecember 12,2011 Amount 58,035.00 (1,161.00)
56,874.00
111
Aquino Avenue, Paranaque City | Tel: 632 843 7689
2 843 7690 | Website: www.gracecorporation.biz.ph
ecember 17,2011
Amount 757,500.00
757,500.00
112
Aquino Avenue, Paranaque City | Tel: 632 843 7689
2 843 7690 | Website: www.gracecorporation.biz.ph
ecember 1,2011 Amount 681,000.00
681,000.00
113
Aquino Avenue, Paranaque City | Tel: 632 843 7689
2 843 7690 | Website: www.gracecorporation.biz.ph
ecember 20,2011 Amount 711,950.00 309,525.00 1,021,475.00 (21,475.00) (20,000.00)
2,001,475.00
114
Aquino Avenue, Paranaque City | Tel: 632 843 7689
2 843 7690 | Website: www.gracecorporation.biz.ph
ecember 23,2011 Amount 75,805.00 111,395.00
187,200.00
115
Aquino Avenue, Paranaque City | Tel: 632 843 7689
2 843 7690 | Website: www.gracecorporation.biz.ph
Amount 4,625.00
4,625.00
116
Aquino Avenue, Paranaque City | Tel: 632 843 7689
2 843 7690 | Website: www.gracecorporation.biz.ph
ecember 26,2011 Amount 2,625,000.00
2,625,000.00
117
Aquino Avenue, Paranaque City | Tel: 632 843 7689
2 843 7690 | Website: www.gracecorporation.biz.ph
ecember 26,2011 Amount 86,850.00 (1,737.00)
85,113.00
118
Aquino Avenue, Paranaque City | Tel: 632 843 7689
2 843 7690 | Website: www.gracecorporation.biz.ph
ecember 28,2011 Amount 484,000.00
484,000.00
119
Aquino Avenue, Paranaque City | Tel: 632 843 7689
2 843 7690 | Website: www.gracecorporation.biz.ph
ecember 30,2011 Amount 165,550.00
165,550.00
120
Aquino Avenue, Paranaque City | Tel: 632 843 7689
2 843 7690 | Website: www.gracecorporation.biz.ph
ecember 30,2011 Amount 186,250.00
186,250.00
121
Aquino Avenue, Paranaque City | Tel: 632 843 7689
2 843 7690 | Website: www.gracecorporation.biz.ph
ecember 31, 2011 Amount 93,750.00
93,750.00
122
Aquino Avenue, Paranaque City | Tel: 632 843 7689
2 843 7690 | Website: www.gracecorporation.biz.ph
ecember 31, 2011 Amount 204,475.00
204,475.00
123
Aquino Avenue, Paranaque City | Tel: 632 843 7689
2 843 7690 | Website: www.gracecorporation.biz.ph
Amount 29,725.00
29,736.00
GRACE CORPORATION Bank Reconciliation December 31, 2011
I. OBJECTIVES 1 2 3
To ascertain that all the necessary reconciling items are taken into account To ascertain the accurary of the recorded cash in bank balance and the reconciling items in the books of the company To ascertain that all reconciling items are actually exisiting
1 2 3
Completeness Accuracy Existence
1 2 3 4
Agreed the amounts to the trial balance and/or general ledger and to supporting documentation. Tied the balances to the bank statement Clerically tested the totals and subtotals. Tested the accuracy and completeness of the reconciling items between the bank balance and the general ledger balance by:
II. ASSERTIONS
III. PROCEDURES
- Determined the disposition of individual reconciling items greater than the amount specified in the work step and any unusual rec
- Examined transactions occurring in the account subsequent to period end to determine that they were properly included or exclud reconciliation
- Determined significant transactions on the subsequent month bank statement that were dated prior to period end are included on - Examined whether receipts or disbursements are recorded on a timely basis by reviewing the appropriateness of reconciling items unusual items.
IV. FINDINGS Balance per Bank Statement
C-2.3
14,267,272
Total
3
Outstanding Checks
Adjusted balance
14,267,272
Balance per Book Note Collected by Bank Proceeds on Promissory Note
(1,255,655) ∂
Total
13,011,617
« Postdated Check Bank Service Charge Total Adjusted Balance
Proposed Adjusting Entries: Cash in Bank Discount on Notes Payable Notes Payable
7,900,000 2,100,000 10,000,000 To record proceeds of promissory note
Miscellaneous Expense Cash in Bank To record bank service charge
C-2.1 C-2.4 C-2.4
2,500 2,500
C-2.5 C-2.4
Cash in Bank Miscellaneous Expenses Notes Receivable To record collection of notes receivable
490,000 10,000
Accounts Receivable 85,113 Cash in Bank To reverse entry for the receipt of a postdated check.
500,000
85,113
LEGEND: 3 Traced to Cash Disbursements Book ∂ Computations Verified « Footed C Cash Lead Schedule ü Checked Against General Ledger
IV.CONCLUSION With the exceptions of the adjusting entries recommended by the auditor, sufficient and appropriate evidence were gathered to support the assertions made.
C-2
ger balance by:
p and any unusual reconciling items
erly included or excluded from the
d end are included on the reconciliation. ss of reconciling items and searching any
4,709,230 490,000 7,900,000 13,099,230
«
(85,113) (2,500) (87,613) « 13,011,617
« C
hered to support the
Prepared by: JGN Reviewed by: ILW
Date: 2/1/2012 Date: 2/5/2012
ACCOUNT
Cash in Bank
DATE
2011 Nov. 30 Balance Dec. 30 Balance
ITEM
F
DEBIT
P CR 12
1,000,000.00 10,018,100.00 4,709,230.00
C-2.3 ACCOUNT NO. DATE
ITEM
F
4709230 Dec. 31 C2
GJ 12
101 CREDIT
P
6,308,870.00
C-2.3 PCI Bank
STATEMENT OF ACCOUNT
ACCOUNT NO.:
NO. OF CHECKS
4486-9156-80
PAGE NO.:
18
1/1
DEPOSITS
BALANCE
NAME AND ADDRESS:
GRACE CORPORATION 12 Ninoy Aquino Avenue, Parañaque City CHECKS DATE
NO.
AMOUNT
2011 Dec. 1
2 6 6 9 10 13
13 16 17 23 23 23 23 28 29
P 12340 12342 12338 12344 12345 12348
P
100,000.00 123,500.00 200,000.00 143,000.00 300,000.00
12347 12350 12346
87,500.00 500,000.00 34,200.00 114,900.00 972,750.00
12351 12353
1,554,500.00 1,080,000.00
6
7
170,500.00 1,263,300.00 362,600.00 990,000.00
RT
769,888.00 500,000.00
CM
1,255,000.00 1,495,374.00
12355
13,250.00
12356 12354 12357 12359 12358 12360
83,300.00 625,000.00 5,000.00 125,315.00 32,500.00 25,000.00 2,500.00
2005 Jan. 5
P
12387 12349 12352 12365 12366 12362 12363 12367 12360
980,000.00 191,825.00
SC
7,900,000.00 2,625,000.00
CM
490,000.00
CM
6,122,215.00
18,993,487.00
34,200.00 175,000.00 14,000.00 85,000.00 249,750.00 13,325.00 85,000.00 97,000.00 70,000.00
85,113.00 929,550.00
204,475.00 29,725.00
1,396,000.00 1,466,500.00 1,343,000.00 2,406,300.00 2,263,300.00 2,325,900.00 3,315,900.00 3,228,400.00 3,498,288.00 3,964,088.00 3,849,188.00 2,876,438.00 2,876,438.00 2,576,938.00 1,496,938.00 2,992,312.00 2,992,312.00 2,979,062.00 3,959,062.00 4,067,587.00 3,442,587.00 11,337,587.00 13,837,272.00 13,804,772.00 13,779,772.00 14,267,272.00 C2
PCI Bank NAME AND ADDRESS:
GRACE CORPORATION 12 Ninoy Aquino Avenue, Paranaque City We have debited your Current Account No. 4486-9156-80 for service charges for December.
DEBIT MEMO
PCI Bank NAME AND ADDRESS:
GRACE CORPORATION 12 Ninoy Aquino Avenue, Paranaque City We have debited your Current Account No. 4486-9156-80 for return of PCIB check #4825 for P 500,000.00 drawn against insufficient funds
DEBIT MEMO
PCI Bank NAME AND ADDRESS:
GRACE CORPORATION 12 Ninoy Aquino Avenue, Paranaque City We have credited your Current Account No. 4486-9156-80 for collection of notes receivable P 500,000.00 proceeds.
CREDIT MEMO
PCI Bank NAME AND ADDRESS:
GRACE CORPORATION 12 Ninoy Aquino Avenue, Paranaque City We have credited your Current Account No. 4486-9156-80 for redeposit of PCIB check #4825 for P 500,000.00
CREDIT MEMO
PCI Bank NAME AND ADDRESS:
GRACE CORPORATION
12 Ninoy Aquino Avenue, Paranaque City We have credited your Current Account No. 4486-9156-80 proceeds of P 10,000,000.00 promissory note discounted at 12%
CREDIT MEMO
C-2.4
DATE:
December 29, 2011
P
2,500.00 C2
CA 4486-9156-80
ACCOUNT NO.:
DATE:
December 10, 2011
No. 4486-9156-80 500,000.00
P
ACCOUNT NO.:
500,000.00 C2
CA 4486-9156-80
DATE:
December 29, 2011
P
490,000.00 C2 E-5
CA 4486-9156-80
ACCOUNT NO.:
DATE:
December 13, 2011
P
500,000.00
CA 4486-9156-80
ACCOUNT NO.:
DATE:
December 28, 2011
P
ACCOUNT NO.:
7,900,000.00 C2
CA 4486-9156-80
Page B71
C-2.5 CURRENT ACCOUNT DEPOSIT SLIP For Cash Deposits and Regular Clearing only (On-Us and Other Bank's Checks)
PCI Bank
4 4 8 6
ACCOUNT NUMBER
9 1 5 6 DATE
ACCOUNT NUMBER
CURRENT ACCOUNT DEPOSIT SLIP For Cash Deposits and Regular Clearing only (On-Us and Other Bank's Checks)
PCI Bank
8 0
ACCOUNT NUMBER
28 December 2011
ACCOUNT NUMBER
4 4 8 6
GRACE CORPORATION TELLER'S VALIDATION:
THIS SERVES YOUR RECEIPT WHEN VALIDATED
THIS SERVES YOUR RECEIPT WHEN VALIDATED
THIS DEPOSIT IS SUBJECT TO THE TERMS AND CONDITION COVERING THE ACCOUNT
THIS DEPOSIT IS SUBJECT TO THE TERMS AND CONDITION COVERING THE ACCOUNT
NO. OF PIECES
PLEASE ENDORSE AND LIST EACH CHECK PROPERLY
DENOMINATION
LOCAL CLEARING CHECKS NAME OF BANK / BRANCH
CHECK NO.
RCBC
481216
P
500.00
AMOUNT
P
AMOUNT
P
1,000.00
2,625,000.00
200.00 100.00 50.00 20.00
P
CASH DEPOSIT PCI BANK CHECKS AND OTHER BANKS' CHECKS
TOTAL
P
REGIONAL CLEARING AND RPTW's AND PMO's
TOTAL
Page B71
2,625,000.00
CURRENT ACCOUNT DEPOSIT SLIP For Cash Deposits and Regular Clearing only (On-Us and Other Bank's Checks)
4 4 8 6
ACCOUNT NUMBER
DRAFT/CASHIER'S CHECK
9 1 5 6 DATE
ACCOUNT NUMBER
8 0
ACCOUNT NUMBER
28 December 2011
ACCOUNT NUMBER
P
4 4 8 6
85,113.00 C2
9 1 5 6 DATE
8 0
5 January 2012
GRACE CORPORATION TELLER'S VALIDATION:
THIS IS YOUR RECEIPT WHEN VALIDATED
Page B71
P
CURRENT ACCOUNT DEPOSIT SLIP For Cash Deposits and Regular Clearing only (On-Us and Other Bank's Checks)
PCI Bank
TELLER'S VALIDATION:
Page B72
AMOUNT
TOTAL DEPOSIT
GRACE CORPORATION
RECEIVED BY:
DENOMINATION
CHECK DEPOSIT
P
PCI Bank
PLEASE ENDORSE AND LIST EACH CHECK PROPERLY
P
TOTAL DEPOSIT
85,113.00
LOCAL CLEARING CHECKS
2,625,000.00
REGIONAL & INTERNATIONAL CLEARING CHECKS - PMO's / RPTW's
THIS IS YOUR RECEIPT WHEN VALIDATED RECEIVED BY:
THIS DEPOSIT IS SUBJECT TO THE TERMS AND CONDITIONS COVERING THE ACCOUNT
THIS DEPOSIT IS SUBJECT TO THE TERMS AND CONDITIONS COVERING THE ACCOUNT
MACHINE PRINT…………………………………………………………………….…………………………………….……
MACHINE PRINT…………………………………………………………………….…………………………………….……
PCI
PCI
12.28.04 DATE
P
TELLER NUMBER
2,625,000.00
RECEIPT NUMBER
PHILIPPINE CURRENCY
01.05.05 DATE
TELLER
P
TELLER NUMBER
85,113.00
RECEIPT NUMBER
PHILIPPINE CURRENCY
TELLER
CURRENT ACCOUNT DEPOSIT SLIP For Cash Deposits and Regular Clearing only (On-Us and Other Bank's Checks)
PCI Bank
4 4 8 6
ACCOUNT NUMBER
9 1 5 6 DATE
ACCOUNT NUMBER
CURRENT ACCOUNT DEPOSIT SLIP For Cash Deposits and Regular Clearing only (On-Us and Other Bank's Checks)
PCI Bank
8 0
ACCOUNT NUMBER
23 December 2011
ACCOUNT NUMBER
4 4 8 6
9 1 5 6 DATE
GRACE CORPORATION
8 0
23 December 2011
GRACE CORPORATION
TELLER'S VALIDATION:
TELLER'S VALIDATION:
THIS SERVES YOUR RECEIPT WHEN VALIDATED
THIS SERVES YOUR RECEIPT WHEN VALIDATED
THIS DEPOSIT IS SUBJECT TO THE TERMS AND CONDITION COVERING THE ACCOUNT
THIS DEPOSIT IS SUBJECT TO THE TERMS AND CONDITION COVERING THE ACCOUNT
NO. OF PIECES
PLEASE ENDORSE AND LIST EACH CHECK PROPERLY
DENOMINATION
LOCAL CLEARING CHECKS
Page B72
8 0
5 January 2012
GRACE CORPORATION
TELLER'S VALIDATION:
Page B71
9 1 5 6 DATE
NAME OF BANK / BRANCH
CHECK NO.
PCIB
481265
P
500.00
AMOUNT
P
AMOUNT
P
1,000.00
980,000.00
200.00 100.00 50.00 20.00
P
CASH DEPOSIT PCI BANK CHECKS AND OTHER BANKS' CHECKS
TOTAL
P
980,000.00
REGIONAL & INTERNATIONAL CLEARING CHECKS - PMO's / RPTW's
PLEASE ENDORSE AND LIST EACH CHECK PROPERLY
CHECK / DRAFT
PNB
TOTAL
REGIONAL CLEARING AND RPTW's AND PMO's
Page B72
TOTAL DEPOSIT
PCI Bank
P P
-
980,000.00
CURRENT ACCOUNT DEPOSIT SLIP For Cash Deposits and Regular Clearing
4,625.00
LOCAL CLEARING CHECKS DENOMINATION
AMOUNT
510152
CHECK DEPOSIT
TOTAL DEPOSIT
PCI Bank
P
187,200.00
P
187,200.00
P
191,825.00
CURRENT ACCOUNT DEPOSIT SLIP For Cash Deposits and Regular Clearing
Page B72
PCI Bank
PCI Bank
only (On-Us and Other Bank's Checks)
4 4 8 6
ACCOUNT NUMBER
9 1 5 6 DATE
ACCOUNT NUMBER
8 0
ACCOUNT NUMBER
23 December 2011
ACCOUNT NUMBER
only (On-Us and Other Bank's Checks)
4 4 8 6
GRACE CORPORATION
Page B72 Page B73
23 December 2011
TELLER'S VALIDATION:
THIS IS YOUR RECEIPT WHEN VALIDATED
THIS IS YOUR RECEIPT WHEN VALIDATED RECEIVED BY:
THIS DEPOSIT IS SUBJECT TO THE TERMS AND CONDITIONS COVERING THE ACCOUNT
THIS DEPOSIT IS SUBJECT TO THE TERMS AND CONDITIONS COVERING THE ACCOUNT
MACHINE PRINT…………………………………………………………………….…………………………………….……
MACHINE PRINT…………………………………………………………………….…………………………………….……
PCI
PCI
12.23.04 DATE
P
TELLER NUMBER
980,000.00
RECEIPT NUMBER
PHILIPPINE CURRENCY
12.23.04 DATE
TELLER
P
TELLER NUMBER
191,825.00
RECEIPT NUMBER
PHILIPPINE CURRENCY
TELLER
CURRENT ACCOUNT DEPOSIT SLIP For Cash Deposits and Regular Clearing only (On-Us and Other Bank's Checks)
PCI Bank
4 4 8 6
ACCOUNT NUMBER
9 1 5 6 DATE
ACCOUNT NUMBER
CURRENT ACCOUNT DEPOSIT SLIP For Cash Deposits and Regular Clearing only (On-Us and Other Bank's Checks)
PCI Bank
8 0
ACCOUNT NUMBER
16 December 2011
ACCOUNT NUMBER
4 4 8 6
9 1 5 6 DATE
GRACE CORPORATION
8 0
23 December 2011
GRACE CORPORATION
TELLER'S VALIDATION:
TELLER'S VALIDATION:
THIS SERVES YOUR RECEIPT WHEN VALIDATED
THIS SERVES YOUR RECEIPT WHEN VALIDATED
THIS DEPOSIT IS SUBJECT TO THE TERMS AND CONDITION COVERING THE ACCOUNT
THIS DEPOSIT IS SUBJECT TO THE TERMS AND CONDITION COVERING THE ACCOUNT
NO. OF PIECES
PLEASE ENDORSE AND LIST EACH CHECK PROPERLY
DENOMINATION
LOCAL CLEARING CHECKS
Page B73
8 0
GRACE CORPORATION
TELLER'S VALIDATION:
RECEIVED BY:
9 1 5 6 DATE
NAME OF BANK / BRANCH
P
CHECK NO.
BPI RCBC
500.00
AMOUNT
249169 876521
P
AMOUNT
P
1,000.00
845,000.00 410,000.00
200.00 100.00 50.00 20.00
P
CASH DEPOSIT PCI BANK CHECKS AND OTHER BANKS' CHECKS
TOTAL
P
PLEASE ENDORSE AND LIST EACH CHECK PROPERLY
REGIONAL & INTERNATIONAL CLEARING CHECKS - PMO's / RPTW's
CHECK / DRAFT
DENOMINATION
RCBC PCIB REGIONAL CLEARING AND RPTW's AND PMO's
TOTAL
P
Page B73
4 4 8 6
9 1 5 6 DATE
ACCOUNT NUMBER
8 0
ACCOUNT NUMBER
16 December 2011
ACCOUNT NUMBER
4 4 8 6
Page B73 Page B74
1,438,500.00
P
1,495,374.00
8 0
23 December 2011
GRACE CORPORATION TELLER'S VALIDATION:
THIS IS YOUR RECEIPT WHEN VALIDATED RECEIVED BY:
THIS DEPOSIT IS SUBJECT TO THE TERMS AND CONDITIONS COVERING THE ACCOUNT
THIS DEPOSIT IS SUBJECT TO THE TERMS AND CONDITIONS COVERING THE ACCOUNT
MACHINE PRINT…………………………………………………………………….…………………………………….……
MACHINE PRINT…………………………………………………………………….…………………………………….……
PCI
PCI
12.16.04 DATE
P
TELLER NUMBER
1,255,000.00
RECEIPT NUMBER
PHILIPPINE CURRENCY
12.23.04 DATE
TELLER
P
TELLER NUMBER
1,495,374.00
RECEIPT NUMBER
PHILIPPINE CURRENCY
TELLER
CURRENT ACCOUNT DEPOSIT SLIP For Cash Deposits and Regular Clearing only (On-Us and Other Bank's Checks)
PCI Bank
4 4 8 6
9 1 5 6 DATE
ACCOUNT NUMBER
CURRENT ACCOUNT DEPOSIT SLIP For Cash Deposits and Regular Clearing only (On-Us and Other Bank's Checks)
PCI Bank
8 0
ACCOUNT NUMBER
4 4 8 6
9 December 2011
9 1 5 6 DATE
ACCOUNT NUMBER
GRACE CORPORATION
13 December 2011
TELLER'S VALIDATION:
THIS SERVES YOUR RECEIPT WHEN VALIDATED
THIS SERVES YOUR RECEIPT WHEN VALIDATED
THIS DEPOSIT IS SUBJECT TO THE TERMS AND CONDITION COVERING THE ACCOUNT
THIS DEPOSIT IS SUBJECT TO THE TERMS AND CONDITION COVERING THE ACCOUNT
PLEASE ENDORSE AND LIST EACH CHECK PROPERLY
PLEASE ENDORSE AND LIST EACH CHECK PROPERLY
LOCAL CLEARING CHECKS NAME OF BANK / BRANCH
8 0
GRACE CORPORATION
TELLER'S VALIDATION:
Page B74
P
9 1 5 6 DATE
THIS IS YOUR RECEIPT WHEN VALIDATED
PCIB CBC
681,000.00 757,500.00
CURRENT ACCOUNT DEPOSIT SLIP For Cash Deposits and Regular Clearing only (On-Us and Other Bank's Checks)
PCI Bank
GRACE CORPORATION
ACCOUNT NUMBER
P
CHECK DEPOSIT
TELLER'S VALIDATION:
RECEIVED BY:
AMOUNT
369125 246810
TOTAL DEPOSIT
CURRENT ACCOUNT DEPOSIT SLIP For Cash Deposits and Regular Clearing only (On-Us and Other Bank's Checks)
PCI Bank ACCOUNT NUMBER
-
1,255,000.00
P
TOTAL DEPOSIT
56,874.00
LOCAL CLEARING CHECKS
1,255,000.00
LOCAL CLEARING CHECKS
CHECK NO.
4825 123498
AMOUNT
P
500,000.00 490,000.00
NAME OF BANK / BRANCH
C2
BPI RCBC
CHECK NO.
249169 728465
AMOUNT
P
528,000.00 241,888.00
Page B74
PCI BANK CHECKS AND OTHER BANKS' CHECKS
TOTAL
P
990,000.00
REGIONAL CLEARING AND RPTW's AND PMO's
TOTAL
Page B74
990,000.00
CURRENT ACCOUNT DEPOSIT SLIP For Cash Deposits and Regular Clearing only (On-Us and Other Bank's Checks)
PCI Bank
4 4 8 6
ACCOUNT NUMBER
-
P
9 1 5 6 DATE
ACCOUNT NUMBER
REGIONAL CLEARING AND RPTW's AND PMO's
TOTAL
8 0
CURRENT ACCOUNT DEPOSIT SLIP For Cash Deposits and Regular Clearing only (On-Us and Other Bank's Checks)
9 December 2011
4 4 8 6
ACCOUNT NUMBER
Page B74 Page B75
THIS IS YOUR RECEIPT WHEN VALIDATED RECEIVED BY:
AND CONDITIONS COVERING THE ACCOUNT
THIS DEPOSIT IS SUBJECT TO THE TERMS AND CONDITIONS COVERING THE ACCOUNT
MACHINE PRINT…………………………………………………………………….…………………………………….……
MACHINE PRINT…………………………………………………………………….…………………………………….……
PCI
PCI
12.09.04
P
TELLER NUMBER
990,000.00
RECEIPT NUMBER
PHILIPPINE CURRENCY
12.13.04 DATE
TELLER
CURRENT ACCOUNT DEPOSIT SLIP For Cash Deposits and Regular Clearing only (On-Us and Other Bank's Checks)
PCI Bank
769,888.00
RECEIPT NUMBER
PHILIPPINE CURRENCY
4 4 8 6
9 1 5 6 DATE
CURRENT ACCOUNT DEPOSIT SLIP For Cash Deposits and Regular Clearing only (On-Us and Other Bank's Checks)
PCI Bank
8 0
6 December 2011
4 4 8 6
ACCOUNT NUMBER
9 1 5 6 DATE
ACCOUNT NUMBER
GRACE CORPORATION
2 December 2011
TELLER'S VALIDATION:
THIS SERVES YOUR RECEIPT WHEN VALIDATED
THIS SERVES YOUR RECEIPT WHEN VALIDATED
THIS DEPOSIT IS SUBJECT TO THE TERMS AND CONDITION COVERING THE ACCOUNT
THIS DEPOSIT IS SUBJECT TO THE TERMS AND CONDITION COVERING THE ACCOUNT
PLEASE ENDORSE AND LIST EACH CHECK PROPERLY
PLEASE ENDORSE AND LIST EACH CHECK PROPERLY
LOCAL CLEARING CHECKS NAME OF BANK / BRANCH
LOCAL CLEARING CHECKS
CHECK NO.
SBTC
AMOUNT
928421
P
PCI BANK CHECKS AND OTHER BANKS' CHECKS
TOTAL
NAME OF BANK / BRANCH
362,600.00
P
REGIONAL CLEARING AND RPTW's AND PMO's
362,600.00
TOTAL DEPOSIT
-
362,600.00
CURRENT ACCOUNT DEPOSIT SLIP For Cash Deposits and Regular Clearing only (On-Us and Other Bank's Checks)
PCI Bank
4 4 8 6
9 1 5 6 DATE
ACCOUNT NUMBER
AMOUNT
481853 329864
P
PCI BANK CHECKS AND OTHER BANKS' CHECKS
TOTAL
P
224,500.00 1,038,800.00
1,263,300.00
REGIONAL & INTERNATIONAL CLEARING CHECKS - PMO's / RPTW's
P P
CHECK NO.
PNB RCBC
REGIONAL & INTERNATIONAL CLEARING CHECKS - PMO's / RPTW's
TOTAL
8 0
GRACE CORPORATION
TELLER'S VALIDATION:
Page B75
P
TELLER NUMBER
TELLER
ACCOUNT NUMBER
Page B75
13 December 2011
GRACE CORPORATION
THIS DEPOSIT IS SUBJECT TO THE TERMS
ACCOUNT NUMBER
REGIONAL CLEARING AND RPTW's AND PMO's
TOTAL
8 0
6 December 2011
P P
TOTAL DEPOSIT
ACCOUNT NUMBER
-
1,263,300.00
CURRENT ACCOUNT DEPOSIT SLIP For Cash Deposits and Regular Clearing only (On-Us and Other Bank's Checks)
PCI Bank
4 4 8 6
9 1 5 6 DATE
ACCOUNT NUMBER
GRACE CORPORATION
8 0
2 December 2011
GRACE CORPORATION
TELLER'S VALIDATION:
TELLER'S VALIDATION:
THIS IS YOUR RECEIPT WHEN VALIDATED
Page B75
8 0
TELLER'S VALIDATION:
DATE
THIS IS YOUR RECEIPT WHEN VALIDATED RECEIVED BY:
THIS DEPOSIT IS SUBJECT TO THE TERMS AND CONDITIONS COVERING THE ACCOUNT
THIS DEPOSIT IS SUBJECT TO THE TERMS AND CONDITIONS COVERING THE ACCOUNT
MACHINE PRINT…………………………………………………………………….…………………………………….……
MACHINE PRINT…………………………………………………………………….…………………………………….……
PCI
PCI
12.06.04 DATE
TELLER
9 1 5 6 DATE
ACCOUNT NUMBER
THIS IS YOUR RECEIPT WHEN VALIDATED
RECEIVED BY:
-
769,888.00
P
PCI Bank
TELLER'S VALIDATION:
ACCOUNT NUMBER
769,888.00
P
TOTAL DEPOSIT
GRACE CORPORATION
RECEIVED BY:
P
REGIONAL & INTERNATIONAL CLEARING CHECKS - PMO's / RPTW's
P
TOTAL DEPOSIT
PCI BANK CHECKS AND OTHER BANKS' CHECKS
TOTAL
REGIONAL & INTERNATIONAL CLEARING CHECKS - PMO's / RPTW's
TELLER NUMBER
P RECEIPT NUMBER
362,600.00 PHILIPPINE CURRENCY
12.02.04 DATE
TELLER
TELLER NUMBER
P RECEIPT NUMBER
1,263,300.00 PHILIPPINE CURRENCY
GRACE CORPORATION Bank Reconcilliation November 30, 2011 Balance per Bank Add Undeposited Collection
Less Outstanding Checks Date 11/28/2011 11/29/2011 11/25/2011 Balance per Ledger
Check # 12340 12342 12344
P
Amount 100,000.00 C2.3 123,500.00 C2.3 143,000.00 C2.3
C-2.6 P
1,396,000.00 170,500.00
566,500.00 P
1,000,000.00
GRACE CORPORATION Bank Confirmation December 31, 2011
I. OBJECTIVES 1 2 3
To determine whether cash in bank exists at year-end and cash-related transactions occur within the y To determine that all cash balances of the client are reflected on the balance sheet at year-end. To determine that cash balances are available for sure without restrictions, if with restrictions, determine if it is properly indicated in the balance sheet.
1 2
Existence Rights and Obligations
II. ASSERTIONS
III. PROCEDURES 1 2 3
IV. FINDINGS
Send bank confirmation request to PCI bank where the client has an account. Obtain the reply from PCI bank. Reconcile the reply from the bank with bank reconciliation and the bank statement.
V. CONCLUSIONS No exceptions noted.
occur within the year. at year-end. estrictions,
C-3
Prepared by: LCTC Reviewed by:
Date: 2/4/2012 Date:
ILW
2/5/2012
Re:
1. We hereby report that at the close of business on
DECEMBER 31, 2011 our records showed the following balances to the
CREDIT
of the abovementioned client: AMOUNT
DESCRIPTION
INTEREST
ACCOUNT NUMBER
14,267,272 Regular Checking Acct.
RATE (P.A.)
PAID UP TO
775
Regular Checking Acct. Savings Acct.
1 year%
6,500,000 Time Deposits
18%
2. Direct liabilities, assets and related balances of said clients as at the
5. Other accounts with the bank on that date were:
date above mentioned date were as follows: (attached details by LC)
(details attached)*
a) b) c) d)
AMOUNT
ACCOUNT
maturity
PESO
FOREIGN CURRENCY
Acceptance Drafts
Securities held for safekeeping Items held for collection Trust accounts Others (specify)
Trust Receipts Marginal Deposits Special Time Deposits Import Letters of Credit Domestic Letters of Credit 3. We further report that the acove-mentioned client was directly liable to us by way of overdrafts, loans, etc. at the close of business on that date as follows: AMOUNT
DESCRIPTION OF LIABILITY
10,000,000 Loans Other (Specify)
DATE GRANTED
DUE DATE
2011
2012
12.28
12.28
INTEREST RATE (P.A.)
21%
C-3.1 Grace Corporation
ST
RESTRICTION ON WITHDRAWAL OF AMOUNT AND OTHER REMARKS
PAID UP TO
1 year% maturity
Due Date: June 30, 2012
>C3
h the bank on that date were:
s held for safekeeping d for collection
INTEREST PAID UP TO
DESCRIPTION OF COLLATERALS, LIENS, ENDORSERS, ETC. OTHER REMARKS
2012 12.28
Land
>C3
GRACE CORPORATION Analytical Procedures December 31, 2011
I. OBJECTIVES 1
To be able to evaluate the fluctuations or unusual changes on the balance of cash and cash equivalent account.
2 3
To ensure cash at bank stated on the reconciliation is accurate. To assess whether amounts and other data relating to recorded transactions and events have been recorded appropriately.
1
Accuracy
1 2
Compared the difference between the audited balance of cash of the current year from the audited balance of the preceding year (Balance of 2010 from 2009 and Balance of 2011 from 2010). The differences on the account balances where expressed in percentage by diving the variance from the prior balance of an account.
3
Journal entries of transactions and supporting documents related to cash such as petty cash voucher and bank reconcillation were reviewed
II. ASSERTIONS
III. PROCEDURES
account balances to evaluate the differences on the
IV. FINDINGS Cash This account consists of:
2010
Percentage
2011
Cash in Bank Petty Cash Total
1,000,000
1201.16%
C2
13,011,617
100,000
-98.96%
C1
1,040
1,102,010
1081%
13,014,668
The significant increase in the total cash balance from 2010 to 2011 was primarily caused by the proceeds the company received from its borrowing.
V. CONCLUSION No exceptions noted. Sufficient and appropriate evidence were gathered to support the assertions made. Prepared by: MZB Reviewed by: ILW
C-4
Date: 2/1/2012 Date: 2/5/2012
GRACE CORPORATION Accounts Receivable General and Subsidiary Ledger Reconciliation December 31, 2011
I. OBJECTIVES 1 2 3
To ascertain that all transactions affecting accounts receivable are recorded To ascertain the accuracy of recording of accounts receivable transactions To ascertain that accounts receivable transactions are actually existing
1 2 3
Completeness Accuracy Existence
1 2 3 4 5 6 7 8 9
Obtained the Accounts Receivable Schedule from the client Reconciled accounts receivable beginning balance in subsidiary ledger with general ledger Tested footings and cross footings of sales invoices Checked accuracy of the accounts receivable general ledger Vouched and traced sales book to sales invoices, or vice versa Vouched and traced cash receipts book to official receipts, or vice versa Vouched the accounts receivable subsidiary ledgers to sales invoices and official receipts Footed debit and credit columns of subsidiary ledger records. Reconciled subsidiary ledgers to the general ledger
II. ASSERTIONS
III. PROCEDURES
IV. FINDINGS
WP Ref Rex Enterprises Louie Tan Eagle Contractors Valera Company Ida Coronel Alberto & Associates, CPAs Legarda Company Cora Tayag Dynasty Construction Anna Reyes-employee Gwendo Reyes Benitez Merchandising Lighthouse Commercial Building Blocks, Inc. Solomon Enterprises Carlo Santos Chad Acosta J.R. Alano Susan de Leon Roces, Adriano & Salas, CPAs R.V. Castro & Co. Johann Morales Centeno, Antonio & Tantoco, CPA Luli Samson
E-1.2 E-1.2 E-1.2 E-1.2 E-1.2 E-1.2 E-1.2 E-1.2 E-1.2 E-1.2 E-1.2 E-1.2 E-1.2 E-1.2 E-1.2 E-1.2 E-1.2 E-1.2 E-1.2 E-1.2 E-1.2 E-1.2 E-1.2 E-1.2
Unadjusted Balances Dr. 1,700,000 1,284,000 546,825 410,000 666,285 150,000 224,500 1,047,375 54,625 546,825 300,000 1,391,775 186,500 762,200 520,000 264,000 681,000 1,600,000 1,264,475 1,700,000 1,224,500 970,000 736,000 1,713,500
12/31/11 Cr.
246,825 410,000 528,000 224,500 757,500 4,625 246,825 350,000 1,391,775 187,200 520,000 681,000 1,060,000
970,000 1,713,500
Total Balances
Adjustments Dr.
1,700,000 1,284,000 300,000 138,285 150,000 289,875 50,000 300,000 -50,000 186,500 575,000 264,000 1,600,000 204,475 1,700,000 1,224,500 736,000 -
Cr. 484,000
10
300,000 50,000 232,000
681,000 681,000
93,825
681,000 885,475
J.R. Alano Trading
E-1.2
730,350
580,350
Sampollo Company Total Balances
150,000 -
20,674,735
9,872,100
Net Accounts Receivable - Subsidiary Ledger
730,350
730,350
580,350
2,954,710
3,755,000
2,954,710
3,755,000
10,802,635
Accounts Receivable - General Ledger Net Accounts Receivable - General Ledger
10,802,635
580,350
10,318,635
E-1.1
10,318,635
Differences GL to SL To adjust GL to SL - Unrecorded Sales to Louie Tan
TOTAL ADJUSTED ACCOUNTS RECEIVABLE
ADJUSTING JOURNAL ENTRIES a.
b.
c.
d.
Accounts Receivable - Gwendo Reyes Advances from Customers To reclassify credit balance of Gwendo Reyes
50,000 50,000
Accounts Receivable - Sampollo Company Accounts Receivable - J.R. Alano Trading To reclassify account balances erroneously recorded in wrong SL
730,350
Accounts Receivable - J.R. Alano Trading Accounts Receivable - Sampollo Company To reclassify payments made by Sampollo OR #110
580,350
Accounts Receivable - Susan de Leon Accounts Receivable - Chad Acosta To reclassify account balances erroneously recorded in wrong SL
681,000
730,350
580,350
681,000
e.
Sales Output Tax
1,364 136 Accounts Receivable - Susan de Leon To record overstatement of SI #1258
f.
Cash
1,500
204,475 Accounts Receivable - Susan de Leon Advances from Customers To record payment made by Susan. OR #122
g.
g.
202,975 1,500
Accounts Receivable - Chad Acosta Accounts Receivable - Susan de Leon To reclassify payment made by Susan de Leon, OR #112
681,000
Sales
300,000
681,000
Accounts Receivable - Anna Reyes
300,000
To derecognize sales made to Anna due to lack of supporting documents h.
Sales Output VAT
68 7 Accounts Receivable - Benitez Merchandising To record overstatement of SI #1255
i.
j.
Accounts Receivable - Ida Company Sales Output tax To record understatement of SI #1256 Accounts Receivable - Benitez Merchandising Sales Output Tax
75
10 9 1
232,000 210,909 21,091
To record SI #1266 k.
Cash
93,750 Accounts Receivable - Benitez Merchandising To record payment by Benitez OR # 121
l.
m.
93,750
Accounts Receivable Sales To record sales to Louie Tan
484,000
Cash
484,000 Accounts Receivable To record payment made by Louie Tan OR #118
484,000
484,000
Additionally, the following errors were noted: 1. An amount of P1,060,000 was erroneously recorded as P1,600,000 in OR #102 but was recorded properly in subsidiary ledger 2. References to SI #1261 and #1262 in Cora Tayag's subsidiary ledger were erroneously refered to SI #1161 and #1162. 3. Cross footing and footing was not properly done so a slide error was committed in SI #1252. Total amount of SI should be P4,625 but reflected as P46.25. The correct amount was properly recorded in subsidiary ledger.
III. CONCLUSION With the exceptions of the adjusting entries and corrections recommended by the auditor, sufficient and appropriate evidence were gathered to support the assertions made. Prepared by: MGR Reviewed by: JGN
E-1
Adjusted Balances 1,700,000 800,000 300,000 138,295 150,000 289,875 50,000 138,175 186,500 575,000 264,000 1,600,000 1,700,000 1,224,500 736,000 -
E-4 E-4 E-4 E-4 E-4 E-4 E-4 E-4 E-4 E-4 E-4 E-4 E-4 E-4 E-4 E-4 E-4 E-4 E-4 E-4 E-4 E-4 E-4 E-4
E-4 150,000 E-4 -
10,002,345 10,002,345 9,518,345 9,518,345 484,000 484,000 0.00 10,002,345 E-4.2
e P4,625 but
e were gathered to Date: 2/1/2012 Date: 2/5/2012
ACCOUNT
DATE
Accounts Receivable ITEM
2011 Nov. 30 Balance Dec. 31
ACCOUNT NO.
F
DEBIT
P SJ 12
Balance ∂ - Computations Verified « - Footed and Cross Footed
DATE
15,316,000.00 2,786,445.00
∂
10,318,635.00
E-1 «
Dec. 5 8 31 13
ITEM
F
GJ 11 GJ 11 CR 12 GJ 11
104 CREDIT
P
20,000.00 470,000.00 7,272,335.00 21,475.00
E-1.1
∂
ACCOUNTS RECEIVABLE SUBSIDIARY LEDGERS NAME: ADDRESS:
DATE
Rex Enterprises 33 Teresa St., Metro Manila PARTICULARS
Sept. 15
NAME: ADDRESS:
DATE
ADDRESS:
DATE
Louie Tan 40 Bambang St., Metro Manila PARTICULARS
ADDRESS:
DATE
Eagle Contractors 11 Forbes St., Makati PARTICULARS
ADDRESS:
DATE
PARTICULARS
ADDRESS:
DATE
2011 Sept. 15
DEBIT
PARTICULARS
246,825.00
DEBIT
ACCOUNT NO.:
CREDIT
410,000.00 410,000.00
DEBIT
ACCOUNT NO.:
CREDIT
528,000.00 138,285.00 528,000.00
Alberto & Associates, CPAs 128 Pebble Road, Mandaluyong, MM PARTICULARS
CREDIT
300,000.00 246,825.00
Ida Coronel 63 Manotoc St., Quezon City
2011 Nov. 30 SI 1152 Dec. 15 SI 1256 12 OR 107
NAME:
CREDIT
ACCOUNT NO.:
Valera Company 705 Aurora Bldg., Cubao, Quezon City
2011 Nov. 18 SI 1070 Dec. 15 OR 109
NAME:
DEBIT
ACCOUNT NO.:
1,284,000.00
2011 Nov. 20 Dec. 1 SI 1251 11 OR 106
NAME:
CREDIT
1,700,000.00
2011 Nov. 30
NAME:
DEBIT
ACCOUNT NO.:
DEBIT
150,000.00
ACCOUNT NO.:
CREDIT
NAME: ADDRESS:
DATE
Legarda Company 23 Hidalgo, Binondo, Manila PARTICULARS
DEBIT
2011 Nov. 19 SI 1121 Dec. 1 OR 101
NAME: ADDRESS:
DATE
224,500.00
DEBIT
2011 Nov. 27 SI 1100 Dec. 17 OR 111 27 SI 1161-1162
NAME: ADDRESS:
DATE
ADDRESS:
DATE
757,500.00
DEBIT
2011 Nov. 20 Dec. 1 SI 1251 11 OR 106
NAME: ADDRESS:
DATE
2011 Oct. 30 Nov. 5 OR 86
NAME: ADDRESS:
DATE
ACCOUNT NO.:
DEBIT
2011 Nov. 28 SI 1135 Dec. 5 OR 103
CREDIT
300,000.00 246,825.00 246,825.00
DEBIT
ACCOUNT NO.:
CREDIT
300,000.00 350,000.00
Benitez Merchandising 582 Kamagong St., Makati City PARTICULARS
CREDIT
4,625.00
Gwendo Reyes 85 Cantada St., Diliman, Quezon City PARTICULARS
ACCOUNT NO.:
50,000.00 4,625.00
Anna Reyes - employee 16 Legarda St., Manila PARTICULARS
CREDIT
289,875.00
2011 Nov. 8 Dec. 3 SI 1252 23 OR 115
NAME:
ACCOUNT NO.:
757,500.00
Dynasty Construction 36 Rizal Avenue, Sta. Cruz, Manila PARTICULARS
CREDIT
224,500.00
Cora Tayag 1642 Reyes Avenue, Manila PARTICULARS
ACCOUNT NO.:
DEBIT
ACCOUNT NO.:
CREDIT
370,000.00 370,000.00
10 SI 1254 - 1255 1,021,775.00 13 Sales returns & allowances OR 113
NAME: ADDRESS:
DATE
Lighthouse Commercial 785 Ayala Avenue, Makati City PARTICULARS
2011 Mar. 21 Apr. 19
NAME: ADDRESS:
DATE
ADDRESS:
DATE
Building Blocks, Inc. 220 Ortigas St., Mandaluyong PARTICULARS
DEBIT
ADDRESS:
DATE
PARTICULARS
DEBIT
Carlo Santos 25 Lumot St., Tondo, Manila PARTICULARS
ADDRESS:
DATE
ADDRESS:
DATE
2011 Oct. 5
CREDIT
DEBIT
ACCOUNT NO.:
CREDIT
20,000.00 500,000.00
ACCOUNT NO.:
CREDIT
264,000.00
Chad Acosta 85 Laong-Laan St., Metro Manila PARTICULARS
2011 Nov. 25 SI 1242 Dec. 18 OR 112
NAME:
ACCOUNT NO.:
187,200.00
Solomon Enterprises 326 Quirino Avenue, Baclaran
2011 June 3
NAME:
CREDIT
575,000.00 75,805.00 111,395.00
2011 Nov. 30 SI 1149 520,000.00 Dec. 5 Sales returns & allowances 8 OR 105
NAME:
ACCOUNT NO.:
100,000.00 86,500.00
2011 Nov. 19 Dec. 23 SI 1259 SI 1260 23 OR 114
NAME:
DEBIT
21,475.00 1,000,000.00
DEBIT
CREDIT
681,000.00 681,000.00
J. R. Alano 162 Laong-Laan St., Metro Manila PARTICULARS
ACCOUNT NO.:
DEBIT
1,600,000.00
ACCOUNT NO.:
CREDIT
NAME: ADDRESS:
DATE
Susan de Leon 482 Rizal Avenue, Metro Manila PARTICULARS
2011 Nov. 27 SI 1125 Dec. 1 OR 102 22 SI 1258
NAME: ADDRESS:
DATE
ADDRESS:
DATE
PARTICULARS
ADDRESS:
DATE
1,060,000.00 1,060,000.00 204,475.00
DEBIT
R.V. Castro & Co. 1856 Ayala Avenue, Makati City PARTICULARS
DEBIT
ADDRESS:
DATE
Johann Morales 2000 C.M. Recto Avenue, Manila PARTICULARS
DEBIT
Centeno, Antonio & Tantoco, CPA 296 Frisco St., Novaliches PARTICULARS
2011 Dec 29 SI 1263
NAME: ADDRESS:
DATE
DEBIT
CREDIT
PARTICULARS
J. R. Alano Trading
ACCOUNT NO.:
CREDIT
500,000.00 470,000.00
ACCOUNT NO.:
CREDIT
736,000.00
Luli Samson 852 Buendia Avenue, Makati City
2011 Nov. 29 SI 1231 Dec. 15 OR 108 20 SI 1257 27 OR 117
NAME:
ACCOUNT NO.:
1,000,000.00 224,500.00
2011 Nov. 29 SI 1133 970,000.00 Dec. 8 OR converted to 60-day 12% note
NAME:
CREDIT
1,700,000.00
2011 Sept. 20 Nov. 30
NAME:
CREDIT
Roces Adriano & Salas, CPAs ACCOUNT NO.: Rm. 307 ABC Bldg., Ayala Avenue, Makati City
2011 Nov. 20
NAME:
DEBIT
ACCOUNT NO.:
DEBIT
ACCOUNT NO.:
CREDIT
845,000.00 845,000.00 868,500.00 868,500.00
ACCOUNT NO.:
ADDRESS:
DATE
555 Ilocos St., Metro Manila PARTICULARS
2011 Nov. 8 Dec. 7 SI 1253 OR 110
LEGEND: « - Footed and Cross Footed
DEBIT
CREDIT
150,000.00 580,350.00 580,350.00
E-1.2
ARY LEDGERS 101
BALANCE
1,700,000.00 «
102
BALANCE
1,284,000.00 «
103
BALANCE
300,000.00 546,825.00 300,000.00 «
104
BALANCE
410,000.00 «
105
BALANCE
528,000.00 666,285.00 138,285.00 «
106
BALANCE
150,000.00 «
107
BALANCE
224,500.00 -«
108
BALANCE
757,500.00 289,875.00 «
109
BALANCE
50,000.00 54,625.00 50,000.00 «
111
BALANCE
300,000.00 546,825.00 300,000.00
112
BALANCE
300,000.00 (50,000.00) «
113
BALANCE
370,000.00
1,021,475.00 1,000,000.00 - -«
114
BALANCE
100,000.00 186,500.00 «
115
BALANCE
675,000.00 650,805.00 762,200.00 575,000.00 «
117
BALANCE
520,000.00 500,000.00 - -«
118
BALANCE
264,000.00 «
119
BALANCE
681,000.00 -«
120
BALANCE
1,600,000.00 «
121
BALANCE
1,060,000.00 204,475.00 «
123
BALANCE
1,700,000.00 «
124
BALANCE
1,000,000.00 1,224,500.00 «
125
BALANCE
970,000.00 470,000.00 - -«
126
BALANCE
736,000.00 «
127
BALANCE
845,000.00 868,500.00 -«
128
BALANCE
150,000.00 208,350.00 150,000.00 «
SALES BOOK DEBIT DATE
SOLD TO
TERMS
INV. NO.
F
2/10. n/30
1251
246,825.00
224,386.00
3 Dynasty Construction
2/10. n/30
1252
4,625.00
4,205.00
7 Sampollo Company
2/10. n/30
1253
58,035.00
52,759.00
2/10. n/30
1254
711,950.00
647,227.00
1255
309,525.00
281,386.00
ACCOUNTS RECEIVABLE
CASH SALES
CREDIT SALES
2004 Dec. 1 Eagle Contractors
10 Benitez Merchandising 15 Ida Coronel
2/10. n/30
1256
138,285.00
125,714.00
17 Luli Samson
2/10. n/30
1257
86,850.00
78,955.00
22 Susan de Leon
2/10. n/30
1258
204,475.00
Cash
1259
75,805.00
68,914.00
1260
111,395.00
101,268.00
23 Building Blocks, Inc. Building Blocks, Inc. 27 Cora Tayag
2/10. n/30
29 Centeno, Antonio & Tantoco
2/10. n/30
1261
185,886.00
208,600.00
189,636.00
1262
81,275.00
73,886.00
1263
736,000.00
669,091.00
2,786,445.00 (104)
187,200.00
2,703,313.00 (3001)
E-1.3 CREDIT OUTPUT TAX
22,439.00 420.00 5,276.00 64,723.00 28,139.00 12,571.00 7,895.00 18,589.00 6,891.00 10,127.00 18,964.00 7,389.00 66,909.00 270,332.00 (1008)
CASH RECEIPTS BOOK DATE
RECEIVED FROM
EXPLANATION
OR#
BANK
SALES DISCOUNT
DR.
DR.
ACCOUNTS RECEIVABLE (CR.)
CASH SALES
AMOUNT
ü
CR.
2011 Dec. 1 Legarda
SI
1121
101
P
224,500.00
Susan de Leon
SI
1125
102
5 Benitez Merch.
SI
1135
103
362,600.00
8 Johann Morales
SI
1133
104
500,000.00
Solomon Ent.
SI
1149
105
490,000.00
11 Eagle Contractors
SI
1251
106
241,888.00
12 Ida Coronel
SI
1152
107
15 Luli Samson
SI
1231
Velera Company
SI
17 Sampollo Company
1,038,800.00 P
ü
P
224,500.00
21,200.00
ü
1,060,000.00
7,400.00
ü
370,000.00
ü
500,000.00
10,000.00
ü
500,000.00
4,937.00
ü
246,825.00
528,000.00
ü
528,000.00
108
845,000.00
ü
845,000.00
1070
109
410,000.00
ü
410,000.00
SI
1253
110
56,874.00
ü
58,035.00
Cora Tayag
SI
1100
111
757,500.00
ü
757,500.00
18 Susan de Leon
SI
1242
112
681,000.00
ü
681,000.00
20 Benitez Merch.
SI 12541255
113
980,000.00
ü
1,000,000.00
23 Building Blocks, Inc.
SI 1259 & 1260
114
187,200.00
1,161.00
20,000.00
ü
P
187,200.00
SUNDRY (CR.) ACCT. NAME
Dynasty Construction 26 M. Paredes 27 Luli Samson
SI
1252
Subs. For 50,000 shares SI
1257
115
4,625.00
ü
116
2,625,000.00
ü
117
85,113.00
1,737.00
10,018,100.00 P
66,435.00
P
4,625.00 Subs. Rec'ble 86,850.00
ü P
7,272,335.00 P
(101)
(3002)
(104)
ü
ü
ü
187,200.00 ü
E-1.4 SUNDRY (CR.) F
AMOUNT
2003
P
2,625,000.00
P
2,625,000.00
Grace
INVOICE
No.
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690 Website: www.gracecorporation.biz.ph
Date
1 December 2011
D
Charged to: Delivered to:
Eagle Contractors 11 Forbes St., Makati City
Job Order No. P. O. No. Terms
Quantity
Unit
Description
1,250 250 10 20 150 200 750 750
box box box box ream ream piece piece
Plain Pencil - Mongol Charcoal Pencil - Steadler Silver Paper Clips Blackie Carbon Paper Whitey Bond Paper Milky Onion Skin Bic Ballpen - Black Bic Ballpen - Blue
400
piece
Bic Ballpen - Red
2/10, n/30
Unit Price
P
101.50 130.50 50.00 145.00 188.50 159.50 12.50 12.50 12.50 TOTAL
12% interest per annum is to be charged on all overdue accounts, plus 23% on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked. legal action arising out of this transaction. Without in any way attempting to divert on any other court or courts, returned goods will not be accepted without written authority from our office, the above merchandise have been Received by: carefully counted, checked and packed, packages delivered by carrier should be checked with those recorded above.
Customer/Receiver
Grace
INVOICE
No.
CORPORATION
VAT 2011-002-148 | TIN 4004-009-175 12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690 Website: www.gracecorporation.biz.ph
Date
3 December 2011
D
Dynasty Construction Delivered to: 36 Rizal Ave., Sta. Crux, Manila Charged to:
Job Order No. P. O. No. Terms
Quantity
350 350 60
Unit
piece piece bottle
Description
Fastener Folder - regular Elmer's Glue
Unit Price
P
1.50 4.00 35.00
2/10, n/30
20
box
Roll-O Typewriter Ribbon
30.00 TOTAL
12% interest per annum is to be charged on all overdue accounts, plus 23% on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked. legal action arising out of this transaction. Without in any way attempting to divert on any other court or courts, returned goods will not be accepted without written authority from our office, the above merchandise have been Received by: carefully counted, checked and packed, packages delivered by carrier should be checked with those recorded above.
Customer/Receiver
Grace
INVOICE
No.
CORPORATION
VAT 2011-002-148 | TIN 4004-009-175 12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690 Website: www.gracecorporation.biz.ph
Date
7 December 2011
D
Charged to: Delivered to:
Sampollo Company 312 Arden St., Paranaque City
Job Order No. P. O. No. Terms
Quantity
Unit
70 70 100 20 80 50
bottle piece ream box ream pads
50
pads
Description
2/10, n/30
Unit Price
Quink Ink P Pilot Fountain Pen Whitey Bond Paper Blackie Carbon Paper Milky Onion Skin 10 Column Worksheet - Verna
82.50 150.00 188.50 145.00 159.50 72.50
12 Column Worksheet - Verna
72.50 TOTAL
12% interest per annum is to be charged on all overdue accounts, plus 23% on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked. legal action arising out of this transaction. Without in any way attempting to divert on any other court or courts, returned goods will not be accepted without written authority from our office, the above merchandise have been Received by: carefully counted, checked and packed, packages delivered by carrier should be checked with those recorded above.
Customer/Receiver
Grace
INVOICE
No.
CORPORATION
VAT 2011-002-148 | TIN 4004-009-175 12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690 Website: www.gracecorporation.biz.ph
Date
10 December 2011
D
Charged to: Delivered to:
Benitez Merchandising 582 Kamagong St., Makati City
Job Order No. P. O. No. Terms
Quantity
800 700 500 500 500 500 1,500 500 700 300
Unit
box box pad pad pad pad pad ream ream roll
Description
Plain Pencil - Mongol P Chrcoal Pencil - Staedler 16 column worksheet - verne 14 column worksheet - verne 12 column worksheet - verne 10 column worksheet - verne Yello paper - Old Mill Bond Paper - Whitey Onion Skin - Milky Cartolina
Unit Price
101.50 130.50 72.50 72.50 72.50 72.50 43.50 188.50 159.50 12.50
2/10, n/30
2,500 250 500 500
meter ream piece piece
Plastic Cover Art Paper Folder - Regular Folder - Long
25.00 210.00 4.00 5.00 TOTAL
12% interest per annum is to be charged on all overdue accounts, plus 23% on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked. legal action arising out of this transaction. Without in any way attempting to divert on any other court or courts, returned goods will not be accepted without written authority from our office, the above merchandise have been Received by: carefully counted, checked and packed, packages delivered by carrier should be checked with those recorded above.
Customer/Receiver
Grace
INVOICE
No.
CORPORATION
VAT 2011-002-148 | TIN 4004-009-175 12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690 Website: www.gracecorporation.biz.ph
Date
10 December 2011
D
Benitez Marchandising Delivered to: 582 Kamagog St. Makati City Charged to:
Job Order No. P. O. No. Terms
Quantity
100 150 300 150 240 300 1,500 1,000 2,500 2,500 2,500 1,000 1,500 150
Unit
box box bottle box box pair piece piece piece piece piece piece pads bottle
Description
2/10, n/30
Unit Price
Plain pencil- mongol thumbtacks - golden P Elemer's glue Carbon paper - blackie Typewriter Ribbon - Roll-o scissors thick notebook thin notebook Bic ballpen - black Bic ballpen - blue Bic Ballpen - red Fastener Intermediate Pad - old mill Ink - Quink
50.00 58.00 35.00 145.00 30.00 17.50 47.00 40.00 12.50 12.50 12.50 1.50 22.00 82.00 TOTAL
12% interest per annum is to be charged on all overdue accounts, plus 23% on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked. legal action arising out of this transaction. Without in any way attempting to divert on any other court or courts, returned goods will not be accepted without written authority from our office, the above merchandise have been Received by: carefully counted, checked and packed, packages delivered by carrier should be checked with those recorded above.
Customer/Receiver
Grace
CORPORATION
INVOICE
No.
VAT 2011-002-148 | TIN 4004-009-175 12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690 Website: www.gracecorporation.biz.ph
Date
15 December 2011
D
Ida Coronel Delivered to: 63 Manotoc, St., QC Charged to:
Job Order No. P. O. No. Terms
Quantity
200 50 20 20 150 300 500 400 500
Unit
pair piece box box roll pad pad pad pad
Description
scissors Fountain pen - pilot thumbtacks - golden paper clips - silver cartolina 16 column worksheet 17 column worksheet 18 column worksheet 19 column worksheet -
2/10, n/30
Unit Price
17.50 150.00 58.50 50.00 12.50 72.50 72.50 72.50 72.50
P
verna verna verna verna
TOTAL 12% interest per annum is to be charged on all overdue accounts, plus 23% on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked. legal action arising out of this transaction. Without in any way attempting to divert on any other court or courts, returned goods will not be accepted without written authority from our office, the above merchandise have been Received by: carefully counted, checked and packed, packages delivered by carrier should be checked with those recorded above.
Customer/Receiver
Grace
INVOICE
No.
CORPORATION
VAT 2011-002-148 | TIN 4004-009-175 12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690 Website: www.gracecorporation.biz.ph
Date
17 December 2011
D
Luli Samson Delivered to: 852 Buendia Ave., Makati City Charged to:
Job Order No. P. O. No. Terms
Quantity
250 450 100 100 50 300 300
Unit
Description
pads pads ream ream pair piece piece
Intermediate pad- old mill yelloe paper - old mill onion skin - milky bond paper - whitey scissors thick notebook thin notebook
2/10, n/30
Unit Price
P
22.00 43.50 159.50 188.50 17.50 47.00 40.00 TOTAL
12% interest per annum is to be charged on all overdue accounts, plus 23% on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked. legal action arising out of this transaction. Without in any way attempting to divert on any other court or courts, returned goods will not be accepted without written authority from our office, the above merchandise have been Received by: carefully counted, checked and packed, packages delivered by carrier should be checked with those recorded above.
Customer/Receiver
Grace
INVOICE
No.
CORPORATION
VAT 2011-002-148 | TIN 4004-009-175 12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690 Website: www.gracecorporation.biz.ph
Date
23 December 2011
D
susan de Leon Delivered to: 482 Rizal Ave., MM Charged to:
Job Order No. P. O. No. Terms
Quantity
1,500 1,250 1,300 450 250 250 300 300 500 150 200 150
Unit
pads pads meter roll piece piece piece piece piece pair ream bottle
Description
2/10, n/30
Unit Price
intermediate pad - old mill yellow paper - old mill P plastic cover cartolina folder - regular folder - long Leaf notebook - thick bind notebook - thin fastener scissors art paper Elmer's glue
22.00 43.50 25.00 12.50 4.00 5.00 47.00 40.00 1.50 7.50 210.00 35.00 TOTAL
12% interest per annum is to be charged on all overdue accounts, plus 23% on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked. legal action arising out of this transaction. Without in any way attempting to divert on any other court or courts, returned goods will not be accepted without written authority from our office, the above merchandise have been Received by: carefully counted, checked and packed, packages delivered by carrier should be checked with those recorded above.
Customer/Receiver
Grace
INVOICE
No.
CORPORATION
VAT 2011-002-148 | TIN 4004-009-175 12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690 Website: www.gracecorporation.biz.ph
Date
23 December 2011
D
Building blocks, inc Delivered to: 220 Ortigas, Mandaluyong Charged to:
Job Order No. P. O. No. Terms
Quantity
Unit
240 120
box box
Description
Plain Pencil - Mongol Charcoal Pencil - Staedler
Unit Price
### ###
cash
30 20 40 60 250 250 150 600 600 80
box box box box piece piece piece piece piece piece
Silver - Paper Clips Golden Thumbtacks Blackie Carbon Paper Roll-O Typewriter Ribbon Bic Ballpen - Black Bic Ballpen - Blue Bic Ballpen - Red Folder - Long Folder - Regular Pilot Fountain Pen
### ### ### ### ### ### ### ### ### ### TOTAL
12% interest per annum is to be charged on all overdue accounts, plus 23% on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked. legal action arising out of this transaction. Without in any way attempting to divert on any other court or courts, returned goods will not be accepted without written authority from our office, the above merchandise have been Received by: carefully counted, checked and packed, packages delivered by carrier should be checked with those recorded above.
Customer/Receiver
Grace
INVOICE
No.
CORPORATION
VAT 2011-002-148 | TIN 4004-009-175 12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690 Website: www.gracecorporation.biz.ph
Date
23 December 2011
D
building blocks, inc. Delivered to: 220 Ortigas, Mandaluyong Charged to:
Job Order No. P. O. No. Terms
Quantity
Unit
1200 150 60 200 360
piece bottle bottle ream ream
Description
cash
Unit Price
Fastener Quink Ink Elmer's Glue Bond Paper - Whitey Onion Skin - Milky
# ### ### ### ### TOTAL
12% interest per annum is to be charged on all overdue accounts, plus 23% on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked. legal action arising out of this transaction. Without in any way attempting to divert on any other court or courts, returned goods will not be accepted without written authority from our office, the above merchandise have been Received by: carefully counted, checked and packed, packages delivered by carrier should be checked with those recorded above.
Customer/Receiver
Grace
INVOICE
No.
CORPORATION
VAT 2011-002-148 | TIN 4004-009-175 12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690
Date
27 December 2011
Website: www.gracecorporation.biz.ph D
Cora Tayag Delivered to: 1642 Reyes Avenue, Manila Charged to:
Job Order No. P. O. No. Terms
Quantity
50 100 50 50 500 500 250 120 500 500 500 500
Unit
box box box box pad pad roll bottle pad pad pad pad
Description
2/10 n/30
Unit Price
Plain Pencil - Mongol Charcoal Pencil - Staedler Silver - Paper Clips Golden Thumbtacks Intermediate Pad - Old Mill Yellow Paper - Old Mill Cartolina Elmer's Glue 10 Column Worksheet - Vernal 12 Column Worksheet - Vernal 14 Column Worksheet - Vernal 16 Column Worksheet - Vernal
### ### ### ### ### ### ### ### ### ### ### ### TOTAL
12% interest per annum is to be charged on all overdue accounts, plus 23% on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked. legal action arising out of this transaction. Without in any way attempting to divert on any other court or courts, returned goods will not be accepted without written authority from our office, the above merchandise have been Received by: carefully counted, checked and packed, packages delivered by carrier should be checked with those recorded above.
Customer/Receiver
Grace
INVOICE
No.
CORPORATION
VAT 2011-002-148 | TIN 4004-009-175 12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690 Website: www.gracecorporation.biz.ph
Date
27 December 2011
D
Cora Tayag Delivered to: 1642 Reyes Avenue, Manila Charged to:
Job Order No. P. O. No. Terms
Quantity
750 750 750 450 800
Unit
piece piece piece piece piece
Description
Bic Ballpen - Black Bic Ballpen - Blue Bic Ballpen - Red Thick Notebook Thin Notebook
2/10 n/30
Unit Price
12.50 12.50 12.50 47.00 40.00
TOTAL 12% interest per annum is to be charged on all overdue accounts, plus 23% on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked. legal action arising out of this transaction. Without in any way attempting to divert on any other court or courts, returned goods will not be accepted without written authority from our office, the above merchandise have been Received by: carefully counted, checked and packed, packages delivered by carrier should be checked with those recorded above.
Customer/Receiver
Grace
INVOICE
No.
CORPORATION
VAT 2011-002-148 | TIN 4004-009-175 12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690 Website: www.gracecorporation.biz.ph
Date
29 December 2011
D
Centeno, Antonio and Tantoo, CPAs Delivered to: 296 Frisco St., Novaliches Charged to:
Job Order No. P. O. No. Terms
Quantity
1,500 1,250 2,000 1,250 100 500 250 1,250 1,250 750 1,200 600 60
Unit
pad pad pad pad box box box piece piece piece pad ream box
Description
cash
Unit Price
10-Column Worksheet - Verna P 12 column worksheet - verna 14 column worksheet - verna 16 column worksheet - verne Typewriter ribbon Plain pencil- Mongol Charcoal pencil- Staedler Bic ballpen- Black Bic Ballpen- Blue Bic Ballpen- Red Yellow paper - Old Mill Bond Paper - Whitey Carbon Paper - Blackie
72.50 72.50 72.50 72.50 30.00 101.50 130.50 12.50 12.50 12.50 43.50 188.50 145.00 TOTAL
12% interest per annum is to be charged on all overdue accounts, plus 23% on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked. legal action arising out of this transaction. Without in any way attempting to divert on any other court or courts, returned goods will not be accepted without written authority from our office, the above merchandise have been Received by: carefully counted, checked and packed, packages delivered by carrier should be checked with those recorded above.
Customer/Receiver
Grace
INVOICE
No.
CORPORATION
VAT 2011-002-148 | TIN 4004-009-175 12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690 Website: www.gracecorporation.biz.ph
Date
30 December 2011
D
Eagle Contractors Delivered to: 11 Forbes St., Makati City Charged to:
Job Order No. P. O. No. Terms
Quantity
Unit
Description
Unit Price
2/10, n/30
500 300 1,500 1,500 500
box ream piece piece piece
Charcoal Pencil - Staedler Bond Paper- Whitey Bic Ballpen - Black Bic Ballpen - Blue Bic Ballpen - Red
P
130.50 188.50 12.50 12.50 12.50 TOTAL
12% interest per annum is to be charged on all overdue accounts, plus 23% on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked. legal action arising out of this transaction. Without in any way attempting to divert on any other court or courts, returned goods will not be accepted without written authority from our office, the above merchandise have been Received by: carefully counted, checked and packed, packages delivered by carrier should be checked with those recorded above.
Customer/Receiver
Grace
INVOICE
No.
CORPORATION
VAT 2011-002-148 | TIN 4004-009-175 12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690 Website: www.gracecorporation.biz.ph
Date
30 December 2011
D
Dynasty Construction Delivered to: 30 Rizal Ave., Sta. Cruz, Manila Charged to:
Job Order No. P. O. No. Terms
Quantity
1,600 1,200 500
Unit
bottle box realm
Description
cash
Unit Price
elmer's glue Typewriter Ribbon- Roll-O Bond Paper- Whitey
P
35.00 30.00 188.50
TOTAL 12% interest per annum is to be charged on all overdue accounts, plus 23% on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked. legal action arising out of this transaction. Without in any way attempting to divert on any other court or courts, returned goods will not be accepted without written authority from our office, the above merchandise have been Received by: carefully counted, checked and packed, packages delivered by carrier should be checked with those recorded above.
Customer/Receiver
Grace
INVOICE
No.
CORPORATION
VAT 2011-002-148 | TIN 4004-009-175 12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690 Website: www.gracecorporation.biz.ph
Date
D
Charged to:
Benitez Merchandising
Job Order No.
30 December 2011
Delivered to:
582 Kamagong St., Makati City
P. O. No.
2/10, n/30
Terms
Quantity
1,000 1,000
Unit
pad ream
Description
Yellow Paper- Old Mill Bond Paper - Whitey
Unit Price
P
43.50 188.50
TOTAL 12% interest per annum is to be charged on all overdue accounts, plus 23% on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked. legal action arising out of this transaction. Without in any way attempting to divert on any other court or courts, returned goods will not be accepted without written authority from our office, the above merchandise have been Received by: carefully counted, checked and packed, packages delivered by carrier should be checked with those recorded above.
Customer/Receiver
Grace
INVOICE
No.
CORPORATION
VAT 2011-002-148 | TIN 4004-009-175 12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690 Website: www.gracecorporation.biz.ph
Date
3 January 2012
D
Benitez Marketing Delivered to: 582 Kamagong St., Makati City Charged to:
Job Order No. P. O. No. Terms
Quantity
2,500 3,000 2,000
Unit
piece piece piece
Description
2/10, n/30
Unit Price
Bic Ballpen - black Bic Ballpen - blue Bic Ballpen -red
12.50 12.50 12.50 TOTAL
12% interest per annum is to be charged on all overdue accounts, plus 23% on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked. legal action arising out of this transaction. Without in any way attempting to divert on any other court or courts, returned goods will not be accepted without written authority from our office, the above merchandise have been Received by: carefully counted, checked and packed, packages delivered by carrier should be checked with those recorded above.
Customer/Receiver
Grace
INVOICE
No.
CORPORATION
VAT 2011-002-148 | TIN 4004-009-175 12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 | Telefax: 632 843 7690 Website: www.gracecorporation.biz.ph
Date
D
3 January 2012
Luli Samson Delivered to: 852 Buendia Ave., Makati City Charged to:
Job Order No. P. O. No. Terms
Quantity
250 100
Unit
pad ream
Description
yellow paper - old mill bond paper - whitey
2/10, n/30
Unit Price
43.50 188.50 TOTAL
12% interest per annum is to be charged on all overdue accounts, plus 23% on said amount for attornye's fees and cost of collection, the parties expressly All merchandise covered by this invoice has submit themselves to the jurisdiction of the Courts of the City of Manila in any been inspected, verified and checked. legal action arising out of this transaction. Without in any way attempting to divert on any other court or courts, returned goods will not be accepted without written authority from our office, the above merchandise have been Received by: carefully counted, checked and packed, packages delivered by carrier should be checked with those recorded above.
Customer/Receiver
- Footed and Cross Footed
E-1.5 1251 Date
1 December 2011
304 Job Order No. P. O. No.
2/10, n/30
Terms
Amount
P
126,875.00 32,625.00 500.00 2,900.00 28,275.00 31,900.00 9,375.00 9,375.00 5,000.00
P
246,825.00 «
erchandise covered by this invoice has inspected, verified and checked.
Customer/Receiver
1252 Date
3 December 2011
305 Job Order No. P. O. No. Terms
2/10, n/30
Amount
P
525.00 1,400.00 2,100.00
600.00 P
erchandise covered by this invoice has inspected, verified and checked.
Customer/Receiver
4,625.00 «
1253 Date
7 December 2011
306 Job Order No. P. O. No.
2/10, n/30
Terms
Amount
P
5,775.00 10,500.00 18,850.00 2,900.00 12,760.00 3,625.00 3,625.00
P
58,035.00 «
erchandise covered by this invoice has inspected, verified and checked.
Customer/Receiver
1254 Date
10 December 2011
307 Job Order No. P. O. No. Terms
2/10, n/30
Amount
P
81,200.00 91,350.00 36,250.00 36,250.00 36,250.00 36,250.00 65,250.00 94,250.00 111,650.00 3,750.00
62,500.00 52,500.00 2,000.00 2,500.00 P
711,950.00 «
erchandise covered by this invoice has inspected, verified and checked.
Customer/Receiver
1255 Date
10 December 2011
308 Job Order No. P. O. No. Terms
2/10, n/30
Amount
5,000.00 8,700.00 10,500.00 21,750.00 7,200.00 5,250.00 70,500.00 40,000.00 31,250.00 31,250.00 31,250.00 1,500.00 33,000.00 12,300.00 309,450.00 «
P
erchandise covered by this invoice has inspected, verified and checked.
Customer/Receiver
1256
Date
15 December 2011
309 Job Order No. P. O. No.
2/10, n/30
Terms
Amount
3,500.00 7,500.00 1,170.00 1,000.00 1,875.00 21,750.00 36,250.00 29,000.00 36,250.00 138,295.00 «
P
erchandise covered by this invoice has inspected, verified and checked.
Customer/Receiver
1257 Date
17 December 2011
310 Job Order No. P. O. No. Terms
2/10, n/30
Amount
5,500.00 19,575.00 15,950.00 18,850.00 875.00 14,100.00 12,000.00 P
86,850.00 «
erchandise covered by this invoice has inspected, verified and checked.
Customer/Receiver
1258 Date
23 December 2011
311 Job Order No. P. O. No.
2/10, n/30
Terms
Amount
33,000.00 54,375.00 32,500.00 5,625.00 1,000.00 1,250.00 14,100.00 12,000.00 750.00 1,125.00 42,000.00 5,250.00 P
202,975.00 «
erchandise covered by this invoice has inspected, verified and checked.
Customer/Receiver
1259 Date
23 December 2011
312 Job Order No. P. O. No. Terms
cash
Amount 24360.00 15660.00
1500.00 1160.00 5800.00 1800.00 3125.00 3125.00 1875.00 3000.00 2400.00 12000.00
P
75,805.00 «
erchandise covered by this invoice has inspected, verified and checked.
Customer/Receiver
1260 Date
23 December 2011
313 Job Order No. P. O. No. Terms
cash
Amount
1,800.00 12,375.00 2,100.00 37,700.00 57,420.00 P
111,395.00 «
erchandise covered by this invoice has inspected, verified and checked.
Customer/Receiver
1261 Date
27 December 2011
314 Job Order No. P. O. No.
2/10 n/30
Terms
Amount
5,075.00 13,050.00 2,500.00 2,900.00 11,000.00 21,750.00 3,125.00 4,200.00 36,250.00 36,250.00 36,250.00 36,250.00 P
208,600.00 «
erchandise covered by this invoice has inspected, verified and checked.
Customer/Receiver
1262 Date
27 December 2011
315 Job Order No. P. O. No. Terms
2/10 n/30
Amount
9,375.00 9,375.00 9,375.00 21,150.00 32,000.00
P
81,275.00 «
erchandise covered by this invoice has inspected, verified and checked.
Customer/Receiver
1263 Date
29 December 2011
316 Job Order No. P. O. No.
cash
Terms
Amount
P
108,750.00 90,625.00 145,000.00 90,625.00 3,000.00 50,750.00 32,625.00 15,625.00 15,625.00 9,375.00 52,200.00 113,100.00 8,700.00
P
736,000.00 «
erchandise covered by this invoice has inspected, verified and checked.
Customer/Receiver
1264 Date
30 December 2011
317 Job Order No. P. O. No. Terms
2/10, n/30
Amount
P
65,250.00 56,550.00 18,750.00 18,750.00 6,250.00
P
165,550.00 «
erchandise covered by this invoice has inspected, verified and checked.
Customer/Receiver
1265 Date
30 December 2011
318 Job Order No. P. O. No.
cash
Terms
Amount
P
56,000.00 36,000.00 94,250.00 --------------
P
186,250.00 «
erchandise covered by this invoice has inspected, verified and checked.
Customer/Receiver
1266 Date
30 December 2011
319 Job Order No.
P. O. No.
2/10, n/30
Terms
Amount
P
43,500.00 188,500.00 -------------
P
232,000.00 «
erchandise covered by this invoice has inspected, verified and checked.
Customer/Receiver
1267 Date
3 January 2012
320 Job Order No. P. O. No. Terms
2/10, n/30
Amount
31,250.00 37,500.00 25,000.00 P
93,750.00 «
erchandise covered by this invoice has inspected, verified and checked.
Customer/Receiver
1268 Date
3 January 2012
321
Job Order No. P. O. No. Terms
2/10, n/30
Amount
10,875.00 18,850.00 P
29,725.00 «
erchandise covered by this invoice has inspected, verified and checked.
Customer/Receiver
GRACE CORPORATION Accounts Receivable Confirmation December 31, 2011
I. OBJECTIVES 1. 2.
To verify the accuracy and existence of the accounts receivable balances To determine whether the company indeed has the rights over the amounts owed to the company.
1. 2.
Existence Rights and Obligations
1. 2. 3. 4. 5.
Obtained a list of the company's customers (or check subsidiary ledger for accounts receivable) Performed sampling from the list, taking into consideration the materiality of the accounts. Constructed confirmation letter and send it to the selected customers. Collected the replies from the customers. Reviewed the accuracy of the account balances based on the customer's replies.
II. ASSERTIONS
III. PROCEDURES
IV. FINDINGS Customer Name R.V Castro Ida Coronel Alberto & Associates, CPA
Conf # AR-1 E-1.2 AR-2 E-1.2 AR-3 E-1.2
Balance per SL 1,224,500 138,285 150,000
a a a
E-2.1 E-2.1
Correct Balance 1,224,500 150,000
Difference -
Louie Tan
AR-4
E-1.2
1,284,000
a
Valera Company
AR-5
E-1.2
-
Legarda Company
AR-6
E-1.2
Gwendo Reyes REX Enterprise J.R. Alano Trading
AR-7 AR-8 AR-9
E-2.1
800,000
484,000
a
-
-
-
a
-
-
E-1.2 E-1.2 E-1.2
-50,000 1,700,000 1,600,000
a a a
E-2.1 E-2.1 E-2.1
-50,000 1,700,000 1,600,000
-
Roces, Adriano & Salas, CPAs
AR-10 E-1.2
1,700,000
a
E-2.1
1,700,000
-
Cora Tayag
AR-11 E-1.2
289,875
a
-
-
Susan de Leon
AR-12 E-1.2
204,475
a
E-2.1
0
204,475
Anna Reyes
AR-13 E-1.2
300,000
a
E-2.1
300,000
-
Dynasty Construction
AR-14 E-1.2
50,000
a
-
-
Benitez Merchandising
AR-15 E-1.2
-
a
-
-
Centeno, Antonio & Tantoco, CPAs
AR-16 E-1.2
736,000
a
E-2.1
736,000
-
Building Blocks Inc Eagle Contractors
AR-17 E-1.2 AR-18 E-1.2
575,000 300,000
a a
E-2.1
575,000 -
-
LEGENDS: a
Vouched SL balances with the OR and SI balances
V. CONCLUSION Aside from the necessary adjusting entry and recording of payment suggested, the transactions were properly recorded.
Prepared by: JGN Reviewed by: MGM
E-2
Remarks Balance is OK. Returned by Post Office. Balance is OK.
The 484,000 has been paid per OR #118 on December 28, 2011+J30. Necessary adjusting entry must be made. No response. (Receivable is fully paid) No response. (Receivable is fully paid) Balance is OK. Balance is OK. (Not yet due) Balance is OK. Balance is OK. Returned by Post Office. Balance was paid full on Dec 31, 2011 per OR #122. Proper recording of payment must be made.
Anna Reyes replied to the confirmation letter sent to her, confirming her balance. However, the auditor feels doubtful as to the authenticity of this transaction. Therefore, her account was excluded in the computation of the Account Receivable balance. No response. No response. (Receivable is fully paid) Recorded balance is correct but balance reflected in the confirmation letter was 73,600. Balance is OK. No response.
properly recorded.
Date: 2/25/2012 Date: 3/1/2012
THE FOLLOWING BALANCE DUE FROM ME (US) IS CORRECT: DUE TO:
AS OF:
GRACE CORPORATION
THE FOLLOWING BALANCE DUE FROM ME (US) IS CORREC AMOUNT:
December 31, 2011
Signature:
DUE TO:
P
289,975.00
E-2
Conf.No. AR-11
GRACE CORPORATION
Signature:
Position:
Position:
CORA TAYAG
IDA C
1642 Reyes Avenue, Manila
63 Manotoc St
Returned by Post Office
Returned
THE FOLLOWING BALANCE DUE FROM ME (US) IS CORRECT: DUE TO:
AS OF:
GRACE CORPORATION
THE FOLLOWING BALANCE DUE FROM ME (US) IS CORREC AMOUNT:
December 31, 2011
Signature:
REX Enterprises
Position:
Chief Accountant
DUE TO:
P Conf.No. AR-8
1,700,000.00
E-2
GRACE CORPORATION Signature:
J. R. Alano Trading
Position:
Chief Accountant
Balance is OK but this is not yet due.
THE FOLLOWING BALANCE DUE FROM ME (US) IS CORRECT:
THE FOLLOWING BALANCE DUE FROM ME (US) IS CORREC
DUE TO:
AS OF:
GRACE CORPORATION
AMOUNT:
December 31, 2011
Signature:
Roces, Adriano & Salas, CPAs
Position:
Chief Accountant
DUE TO:
P Conf.No. AR-10
1,700,000.00
E-2
GRACE CORPORATION Signature:
Susan de Leon
Position:
This is correct.
The above amou
Dec. 31, 201 Returned by Post Office
Returned
THE FOLLOWING BALANCE DUE FROM ME (US) IS CORRECT: DUE TO:
AS OF:
GRACE CORPORATION
THE FOLLOWING BALANCE DUE FROM ME (US) IS CORREC AMOUNT:
December 31, 2011
Signature:
Alberto & Associates, CPAs
Position:
Chief Accountant
DUE TO:
P
150,000.00
E-2
Conf.No. AR-3
GRACE CORPORATION Signature:
R.V. Castro & Co.
Position:
Chief Accountant
OK
Balance
Returned by Post Office
Returned
THE FOLLOWING BALANCE DUE FROM ME (US) IS CORRECT: DUE TO:
AS OF:
GRACE CORPORATION Signature:
THE FOLLOWING BALANCE DUE FROM ME (US) IS CORREC AMOUNT:
December 31, 2011
Louie Tan
DUE TO:
P
1,284,000.00
E-2
Conf.No. AR-4
Position:
GRACE CORPORATION Signature:
Gwendo Reyes
Position:
Comptroller
P 484,000 has been paid per OR# 118
Bala
on December 28, 2011. Returned by Post Office
Returned
THE FOLLOWING BALANCE DUE FROM ME (US) IS CORRECT: DUE TO:
AS OF:
GRACE CORPORATION Signature:
THE FOLLOWING BALANCE DUE FROM ME (US) IS CORREC AMOUNT:
December 31, 2011
Centeno, Antonio & Tantoco, CPAs
DUE TO:
P Conf.No. AR-16
73,600.00
E-2
GRACE CORPORATION Signature:
Building Blocks, Inc.
Position:
Chief Accountant
Position:
Balance is not correct.
Chief Accountant
Balanc
Iy should be P 736,000.00. Returned by Post Office
Returned
THE FOLLOWING BALANCE DUE FROM ME (US) IS CORRECT: DUE TO:
AS OF:
GRACE CORPORATION
AMOUNT:
December 31, 2011
P
300,000.00
E-2
No Reply: 1. Eagle Contractors
Signature:
Anna Reyes
Conf.No. AR-19
2. Valera Company 3. Legarda Company 4. Dynasty Construction
Position:
5. Benitez Merchandising 6. J. R. Alano Balance OK.
The company and auditor agreed on 5% Bad Debts Allowance Returned by Post Office
E-2.1
E FROM ME (US) IS CORRECT: AS OF:
AMOUNT:
December 31, 2011
P
138,285.00
E-2
P
1,600,000.00
E-2
Conf.No. AR-2
IDA CORONEL 63 Manotoc Street, Quezon City Returned by Post Office
E FROM ME (US) IS CORRECT: AS OF:
AMOUNT:
December 31, 2011
R. Alano Trading
Conf.No. AR-9
hief Accountant
OK
E FROM ME (US) IS CORRECT:
AS OF:
AMOUNT:
December 31, 2011
P Conf.No. AR-12
The above amount was paid in ful on Dec. 31, 2011 per OR # 122. Returned by Post Office
204,475.00
E-2
E FROM ME (US) IS CORRECT: AS OF:
AMOUNT:
December 31, 2011
V. Castro & Co.
P
1,224,500.00
E-2
P
(50,000.00)
E-2
P
575,000.00
E-2
Conf.No. AR-1
hief Accountant
Balance is correct.
Returned by Post Office
E FROM ME (US) IS CORRECT: AS OF:
AMOUNT:
December 31, 2011 Conf.No. AR-7
Balance OK.
Returned by Post Office
E FROM ME (US) IS CORRECT: AS OF:
uilding Blocks, Inc.
AMOUNT:
December 31, 2011
Conf.No. AR-17
hief Accountant
Balance correct.
Returned by Post Office
Not included in Send Out Confirmation: 1. Lighthouse Commercial 2. Solomon Enterprises 3. Carlo Santos 4. Chad Acosta 5. Johann Morales 6. Luli Samson
on 5% Bad Debts Allowance based on adjusted balance of Accounts Receivables.
GRACE CORPORATION Sales Cut Off December 31, 2011
I. OBJECTIVE 1
To determine that all transactions relative to accounts receivables have been recorded in t
1
Completeness
1 2
Examined sales invoices before and after the reporting period Traced sales invoices to the sales books to determine whether the transactions are record
II. ASSERTIONS
III. PROCEDURES
IV. FINDINGS
DATE 2011 Dec 1 3 7 10
SALES INVOICE
TERMS
1251
2/10. n/30
Eagle Contractors
E-1.3
1252
2/10. n/30
Dynasty Construction
1253 1254
2/10. n/30 2/10. n/30
Sampollo Company Benitez Merchandising
E-1.3 E-1.3 E-1.3
CLIENT
1255
WP REF
15
1256
2/10, n/30
Ida Coronel
E-1.3 E-1.3
17
1257
2/10, n/30
Luli Samson
E-1.3 E-1.3
22
1258
2/10, n/30
Susan de Leon
23
1259
Cash
Buillding Blocks, Inc.
27
1260 1261
Cash 2/10, n/30
Buillding Blocks, Inc. Cora Tayag
E-1.3 E-1.3 E-1.3
1262
2/10, n/30
Cora Tayag
29
1263
2/10,n/30
Centeno, Antonio & Tantoco
30
1264
C.O.D
Eagle Contractors
1265
C.O.D
Dynasty Construction
1266
2/10,n/30
Benitez Merchandising
E-1.3 E-1.3
E-1.5 E-1.5 E-1.5
CUT-OFF
2012 Jan 3
1267
C.O.D
1268
2/10,n/30
Proposed Adjusting Journal Entries:
Benitez Merchandising
E-1.5
Luli Samson
E-1.5
a.
Cash Output Tax Sales To record the unrecorded Sales Invoice No. 1264
b. Cash Output Tax Sales To record unrecorded Sales Invoice No. 1265 *
c.
Accounts Receivable-Benitez Merchandising Output Tax Sales To record Sales Invoice No. 1266
LEGEND: * Journal Entry is already made in E-1 r Examined Sales Invoices q Traced from Sales Invoice to Sales Book
V. CONCLUSIONS
Except for the three unrecorded sales in December, other sales transactions are recorded in the pr are recommended. No other exceptions are noted.
een recorded in the proper acounting period
ctions are recorded
E-3
PROPERLY RECORDED
AMOUNT
₱ ₱
246,825.00 rq
YES
4,625.00 rq
YES YES YES
₱ ₱
58,035.00 rq 711,950.00 rq
₱
309,525.00 rq
₱
138,285
YES YES
REMARKS
No exceptions noted Total amount of SI should be P4,625 but recorded as 46.25. No exceptions noted No exceptions noted Correct amount is 309, 450 but recorded as 309250. Corrections made in Procedure E-1 Immaterial difference of 10 exists due to a mistake in footing the Sales Invoice. Corrections made in Procedure E-1.
rq
₱
86,850 rq
YES
₱
204,975 rq
YES
₱
75,085 rq
YES
No exceptions noted
₱ ₱
111,395 rq 208,600 rq
YES YES
No exceptions noted No exceptions noted
No exceptions noted Correct amount is 202, 975 but recorded as 204, 475 due to a mistake in footing the Sales Invoice. Corrections made in Procedure E-1.
₱
81,275 rq
rq
YES
No exceptions noted
YES
No exceptions noted
₱
736,000
₱
165,550 rq
NO
Adjusting entries are recommended
₱
186,250 rq
NO
Adjusting entries are recommended
₱
232,000 rq
NO
Adjusting entries are recommended
93,750 rq 29,725 rq
YES
No Exceptions Noted
YES
No Exceptions Noted
CUT-OFF
₱ ₱
₱
₱
₱
165,550 ₱ ₱
15,050 150,500
₱ ₱
16,932 169,318
₱ ₱
21,091 210,909
186,250
232,000
ecorded in the proper accounting period . Necessary adjusting entries
Prepared by: RIT Reviewed by: BAG
Date: 2/15/2012 Date: 2/25/2012
V. CONCLUSIONS
The above objectives were successfully met. Appropriate balances of the Allowance for Bad Debts the adjusted Accounts Receivable balance. The Accounts Receivables would now be presented in as required by the PFRS, that is, Accounts Receivable net of Allowance for Bad Debts.
f the Allowance for Bad Debts were determined using the agreed percentage based on s would now be presented in the Statement of Financial Position at its net realizable ce for Bad Debts.
Prepared by: BAG Reviewed by: RIT
Date: 2/21/2012 Date: 2/26/2012
GRACE CORPORATION Accounts Receivable - Aging Schedule December 31, 2011
Name of Customer Rex Enterprises Louie Tan Eagle Contractors Valera Company Ida Coronel Alberto & Associates, CPAs Legarda Company Cora Tayag Dynasty Construction Anna Reyes-employee Gwendo Reyes Benitez Merchandising Lighthouse Commercial Building Blocks, Inc. Solomon Enterprises Carlo Santos Chad Acosta J.R. Alano Susan de Leon
WP Ref E-1 E-1 E-1 E-1 E-1 E-1 E-1 E-1 E-1 E-1 E-1 E-1 E-1 E-1 E-1 E-1 E-1 E-1 E-1
Audited Balances 1,700,000 800,000 300,000 138,295 150,000 289,875 50,000 138,175 186,500 575,000 264,000 1,600,000 -
Date of Invoice 09/15/11 11/30/11 11/20/11 12/15/11 09/15/11 12/27/11 11/08/11 12/30/11 3/21 and 4/19/11 11/19/11 06/03/11 10/05/11 -
CURRENT ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° °
138,295
289,875
138,175
Roces, Adriano & Salas, CPAs R.V. Castro & Co. Johann Morales Centeno, Antonio & Tantoco, CPA Luli Samson J.R. Alano Company Trading Sampollo
E-1 E-1 E-1 E-1 E-1 E-1 E-1
Total Accounts Receivable
E-1
1,700,000 1,224,500 736,000 150,000.00-
11/20/11 9/20 and 11/30/11 12/29/11 11/08/11-
10,002,345
° Checked against Accounts Receivable Subsidiary Ledger
° ° ° ° ° °°
736,000
1,302,345
E-4.1 1-30
No. of Days Past Due 31-60
Over 60 1,700,000
800,000 300,000
150,000
50,000
186,500 575,000 264,000 1,600,000
1,700,000 224,500
150,000.00 3,799,500
1,000,000
1,600,000
3,300,500
E-4.2
Johann Morales Centeno, Antonio & Tantoco, CPA Luli Samson J.R. Alano Company Trading Sampollo
E-1 E-1 E-1 E-1 E-1
Total Accounts Receivable
E-1
736,000 150,000.0010,002,345
° Checked against Accounts Receivable Subsidiary Ledger
12/29/11 11/08/11-
° ° ° °°
736,000
1,302,345
150,000.00 3,799,500
1,600,000
3,300,500
E-4.2
GRACE CORPORATION Accounts Receivable - Allowance for Doubtful Accounts Schedule December 31, 2011
CURRENT 1-30 31-60 Over 90 Total
WP REF E-4.1 E-4.1 E-4.1 E-4.1 E-1.1
Amount 1,302,345 3,799,500 1,600,000 3,300,500 10,002,345
Unadjusted balances, as of December 31, 2011 Required Allowance for Bad Debts Total Audit Adjustments Accounts Receivable, balance per audit Allowance for Bad Debts, balance per audit Net Accounts Receivable, December 31, 2011
Expected Percentage of Uncollectibility 5% 5% 5% 5%
E-4.2
Schedule
cted Percentage of Uncollectibility 5% 5% 5% 5%
Estimated Uncollectible 65,117 189,975 80,000 165,025 500,117
497,811 500,117 2,306 E-4 10,002,345 500,117 9,502,228
GRACE CORPORATION Notes Receivable December 31, 2011
I. OBJECTIVES 1 2 3
To determine that notes receivables exist as of the balance sheet date. To determine whether all notes receivables were recorded properly. To determine whether amounts of notes receivable were accurate.
1 2 3
Existence Completeness Valuation
1 2 3 4
Obtained a copy of notes receivable contracts. Examined the terms of the contract. Reconciled the amount stated in the contract with the amount recorded in the ledger. Recalculated interest.
1
The total notes receivables of Php 2,970,000 is composed of Php 2,500,000 and php 470,0000 notes receivable from Alicia M. David and Johann Morales respectively.
2
The correct balance of notes receivable as of the balace sheet date should have been Php 2,470,000.
II. ASSERTIONS
III. PROCEDURES
IV. FINDINGS
Maker Alicia M. David
Date of Note 11.05.2011
Johann Morales 12.08.2011 Balance per ledger Add (Deduct) Adjustments: Note collected by the Bank
Maturity Date 03.04.2012
Interest Rate 24%
02.06.2012
24%
E-5.3 E-5.3 E-5.2 E-5.1
BALANCE PER AUDIT Proposed Adjusting Journal Entry: (Entry was already made in C2) Cash 490,000 Miscellaneous Expense 10,000 Notes Receivable To record Notes Receivable collected by the bank.
Amount 2,500,000 rq 470,000 rq 2,970,000 (500,000) 2,470,000 E-7
500,000
LEGEND: r q
Examined Notes Receivable Contracts Traced from contract to ledger
V. CONCLUSIONS The difference of Php 500,000 was the unrecorded note collected by the bank.
Prepared by: MZB Reviewed by: LCC
Date: 2/13/2012 Date: 2/15/2012
E-5
ble from Alicia M. David and
Date: 2/13/2012 Date: 2/15/2012
E-5.2 ACCOUNT
Notes Receivable
DATE
2011 Nov. 30 Balance Dec. 8 Balance
ITEM
ACCOUNT NO.
F
DEBIT
P GJ 11
2,500,000.00 470,000.00 2,970,000.00 E-5
DATE
ITEM
F
105 CREDIT
E-5. PROMISSORY NOTE (Note Receivable) 470,000.00 E-5
P
December 8, 2011
sixty days after date
For value received, I / we jointly and severally promise to pay, Grace Corporation thousand interest rat
24
or order, the sum of pesos (
470,000.00 ),
% payable at
12 Ninoy Aquino Ave., Paranaque City
Philippine Currency at an annual .
If this note is placed in the hands of attorney for collection; the makes and endorsers shall, in addition, pay 25% of the amount due as attorney's fees and costs of collection (aside from the costs of litigation allowed by the Rules of Court).
Signature
Signature
Sarah B. Tuason for Grace Corporation
Johann Morales
Name in Print
Name in Print
12 Ninoy Aquino Avenue Paranaque City
301 Frico Street Novaliches, Quezon City
Mailing Address
Mailing Address
Res. Cert. No.: AB3486789
Res. Cert. No.: A4882283
Date: January 19, 2011
Date: January 15, 2011
Place of Issue: Paranaque City
Place of Issue: Quezon City
SIGNED IN THE PRESENCE OF:
SIGNED IN THE PRESENCE OF:
PROMISSORY NOTE (Note Receivable) 2,500,000.00 E-5
P
December 5, 2011
For value received, I / we jointly and severally promise to pay, Grace Corporation thousand interest rat
24
120
days after date
or order, the sum of pesos ( % payable at
2,500,000.00 ),
Philippine Currency at an annual
12 Ninoy Aquino Ave., Paranaque City
If this note is placed in the hands of attorney for collection; the makes and endorsers shall, in addition, pay 25% of the amount due as attorney's fees and costs of collection (aside from
.
the costs of litigation allowed by the Rules of Court).
Signature
Signature
Sarah B. Tuason for Grace Corporation
Alicia M David
Name in Print
Name in Print
12 Ninoy Aquino Avenue Paranaque City
58 Veronica Street Sta. Mesa, Manila
Mailing Address
Mailing Address
Res. Cert. No.: AB3486789
Res. Cert. No.: 5982283
Date: January 19, 2011
Date: January 17, 2011
Place of Issue: Paranaque City
Place of Issue: Manila
SIGNED IN THE PRESENCE OF:
SIGNED IN THE PRESENCE OF:
E-5.3
GRACE CORPORATION Accrued Interest Receivable December 31, 2011
I. OBJECTIVES 1 2 3
To determine that accrued interesr receivables exist as of the balance sheet date. To determine whether all accrued interest receivables were recorded properly. To determine whether amounts of accrued interest receivable were accurate.
1 2 3
Existence Completeness Valuation
1 2 3 4 5
Obtained a copy of notes receivable contracts. Examined the terms of the contract. Determined the amount of accrued interest recorded for the period Recalculatedinterest. Noted for differences.
1
The total accrued interest receivables that exist as of the balance sheet date was understated.
II. ASSERTIONS
III. PROCEDURES
IV. FINDINGS
Maker Alicia M. David
Principal 2,000,000
Johann Morales Balance per Audit Balance per Books
500,000 470,000
Interest Rate 24% 24% 24%
r r r
Days Outstanding 56
Interest Earned
54 23
E-6.1
Audit Adjustment Proposed Adjusting Journal Entry: Accrued Interest Receivable 59,652 Interest Income To record accrued interest for the period.
59,652
LEGEND: r
Examined Notes Receivable Contracts
V. CONCLUSIONS
An understatement of Php 59,652 exist in the Accrued Interest Receivable account and so with the Interest Income recorded. With the exceptions of the adjusting entries recommended by the auditor, sufficient and appropriate evidence were gathered to support the assertions made.
E-6
Interest Earned 73,644 17,753 7,108 98,505 38,853 59,652
est Income recorded. dence were gathered to
Prepared by: MZB Reviewed by: LCC
Date: 2/16/2012 Date: 3/30/2012
E-6.1 ACCOUNT
DATE
Accrued Interest Receivable ITEM
2011 Dec. 31 Balance Balance
F
ACCOUNT NO.
DEBIT
P
38,853.00 38,853.00 E-6
DATE
ITEM
F
107
CREDIT
GRACE CORPORATION
Analytical Procedures - Accounts Receivable December 31, 2011
I. OBJECTIVES 1
To be able to evaluate the fluctuations or unusual changes on the balance of accounts receivable and notes
2
receivable account. To assess whether amounts and other data relating to recorded transactions and events have been recorded appropriately.
II. ASSERTIONS 1
Accuracy
1
Compared the difference between the audited balance of cash of the current year from the audited balance of the preceding year (Balance of 2010 from 2009 and Balance of 2011 from 2010). The differences on the account balances where expressed in percentage by diving the variance from the prior balance of an account. Journal entries of transactions and supporting documents related to cash such as petty cash voucher and bank
III. PROCEDURES
2 3
reconcillation were reviewed to evaluate the differences on the account balances.
IV. FINDINGS
AR Ending Balances
2009 8,850,000
Accounts Receivables 2010 12,250,000 E-4.2
2011 9,502,228
Percent Increase (Decrease) AR Turnover Days in AR NR Ending Balances
600,000
38% 5.07 72.06 1,500,000
Percent Increase (Decrease)
-
150%
-22% 10.11 36.11 2,470,000
E-5
65%
III. CONCLUSION
In the ratios displayed above, the auditors can infer that credit collecting has improved significantly for Grace Corporation. Their receivables have an average of 36 in days oustanding, from last years' 72. There is an effective collection policy during the year, considering that their average credit term is 45 days. Accounts receivable turnover is the number of times per year that a business collects its average accounts receivable. The ratio is intended to evaluate the ability of a company to efficiently issue credit to its customers and collect funds from them in a timely manner. Because Inventory turnover doubled, we can infer that there has been a more conservative credit policy and a more aggressive collections department, as well as high quality customers.
Prepared by: ILW Reviewed by: LCC
E-7
Date: 1/25/2012 Date: 2/10/2012
GRACE CORPORATION Reconciliation of Inventory Balances December 31, 2011
I. OBJECTIVES 1 2 3
To determine whether inventory exists at year-end and that inventory-related transactions occured within the year. To determine that all inventory balances of the client are reflected on the balance sheet at year-end. To determine whether all inventory are recorded at their proper amounts with concerns to the General Ledger (Purchases, Cost of Sales).
1 2
Existence Rights and Obligations
3
Completeness
4
Occurrence
5
Accuracy
1 2 3 4 5 6 7
Obtained copy of the client's Purchase Book and Purchase Invoices for the month of December. Reconciled the records in the purchase book to the corresponding Purchase Invoices. Examined purchase terms and Cash Vouchers and looked for possible purchase discounts. Obtained copy of the company's Cost of Sales sheet, and Sales Invoices for the month of December. Traced sales invoices to cost of sales sheet. Recalculated cost of Sales. Reconciled recalculated amount to the company's cost of sales sheet.
II. ASSERTIONS
III. PROCEDURES
8 9 10
Reconciled purchase invoices and sales invoices to stock cards. Traced the reconciled amounts to the General Ledger of Inventory. Compared adjusted amount as per LCNRV to the computed ending inventory.
IV. FINDINGS
WP Ref
Unadjusted Balances Dr.
12/31/11
Total Balances
Adjustments
Cr.
Merchandise Inventory, November 30
F1.1
799,971
Purchases
F1.2
5,464,203
Dr. 799,971 5,464,203 F.4 F1.7
Purchase Discount Sales (at cost)
F1.4
1,861,387
1,861,387
370,773 2,328 F1.6 F1.7 F1.8
Loss on Inventory Merchandise Inventory, December 31
6,264,174
1,861,387
4,402,787
Merchandise Inventory, End per LCNRV Inventory Loss
PROPOSED ADJUSTING JOURNAL ENTRIES a.
Accounts Payable
4,109
Inventory To record purchase discount taken. b.
Inventory Cost of Sales To record decrease in Cost of Sales due to change in cost because of the purchase discount taken.
4,109
2,328 2,328
373,101
c.
d.
e.
Cost of Sales Inventory To record unrecorded Sales.
362,814
Losses in Inventory Inventory To record loss of inventory.
191,759
362,814
191,759
Cost of Sales Inventory To bring the Inventory account to its audited balance per LCNRV.
ERRORS NOTED: (to avoid confusion for future references) Purchase Book Inventory PI 1099 PI 127 Date PI 1095 PI 147 Terms PI 117 PI 120 PI 145 PI 147 PI 1100
F1.2 F1.2 F1.2 F1.2 F1.2 F1.2 F1.2 F1.2 F1.2
43,009 43,009
Per purchase book 111,136 F1.3 234,009 F1.3 12/18/2011 F1.3 12/15/2011 F1.3 2/10 n/45 F1.3 n/30 F1.3 1/10 n/30 F1.3 2500 down, n/15 F1.3 n/30 F1.3
Per Purchase Invoices 11,136 23,409 12/8/2011 12/26/2011 2/10 n/30 Cash 2/10 n/30 Cash Cash
All the mentioned errors above are mostly just typing errors. No adjustments were made for them because Grace Corp accounted for them accurately.
V. CONCLUSION With the exceptions of the adjusting entries and corrections recommended by the auditor, sufficient and appropriate evidence were gathered to support the assertions made.
F-1
Adjusted Balances Cr. 799,971 5,834,976 4,109
1,781
362,814
2,224,201
191,759
191,759
558,682
4,217,206
F3
4,149,747 (67,459)
Prepared by: Date:
ILW 2/15/2012 Reviewed by: Date: DBM 2/30/2012
F-1.1 ACCOUNT
DATE
Merchandise Inventory ITEM
2011 Nov. 30 Balance Dec. 8 Balance
ACCOUNT NO.
F
DEBIT
P PB 1
799,971.00 5,464,203.00 4,402,787.00
DATE
2011 Dec. 30
ITEM
F
GJ 13
106 CREDIT
P
1,861,387.00
F-1.4 Page 3 Date
Sold To
2011 Dec. 1 Eagle Contractors 3 Dynasty Construction 7 Sampolio Company 10 Benitez Merchandising 15 Ida Coronel 17 Luli Samson 22 Susan de Leon 23 Building Blocks, Inc. 27 Cora Tayag 29 Conteno, Antonio & Tantoco
Invoice # 1251 1252 1253 1254 1255 1256 1257 1258 1259 1260 1261 1262 1263
Amount 154,545.00 2,714.00 36,364.00 639,427.00 86,659.00 54,409.00 127,955.00 117,041.00 181,205.00 461,068.00 1,861,387.00
ACCOUNT NO.
4486-9156-80
ACCOUNT NAME
GRACE CORPORATION
PAY TO THE ORDER OF
GENIUS PAPER PRODUCTS
PESOS
Three hundred thousand pesos only
PCI Bank
__________________________
SUCAT ROAD BRANCH
Grac e
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
Payee:
GENIUS PAPER PRODUCTS
Amount in words:
Three hundred thousand pesos only
For
Downpayment fot merchandise purchased per Invoice No. 111
Date of Check:
Check No.:
December 2, 2011 Prepared by:
Checked By:
Approved by:
Received above amount P
by
:
Date :
ACCOUNT NO.
4486-9156-80
ACCOUNT NAME
PAY TO THE ORDER OF
SAPPHIRE CORPORATION
GRACE CORPORATION
Nine hundred seventy two thousand seven hundred fifty pesos
PESOS
PCI Bank
__________________________
SUCAT ROAD BRANCH
Grac e
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
Payee:
SAPPHIRE CORPORATION
Amount in words:
Nine hundred seventy two thousand seven hundred fi
For
Partial payment for Invoice No. 920
Date of Check:
Check No.:
December 5, 2011 Prepared by:
Checked By:
Approved by:
Received above amount P
by
:
Date :
ACCOUNT NO.
4486-9156-80
ACCOUNT NAME
GRACE CORPORATION
PAY TO THE ORDER OF
BUREAU OF INTERNAL REVENUE
PESOS
Thirty four thousand two hundred pesos only
PCI Bank SUCAT ROAD BRANCH
Grac e
CORPORATION
__________________________
Grac e
VAT 2011-002-148 | TIN 4004-009-175
Payee:
BUREAU OF INTERNAL REVENUE
Amount in words:
Thirty four thousand two hundred pesos o
For
Remittance of Novenber 2011 taxes withheld on wages
Date of Check:
Check No.:
December 7, 2011 Prepared by:
Checked By:
Approved by:
Received above amount P
by
:
Date :
ACCOUNT NO.
4486-9156-80
ACCOUNT NAME
GRACE CORPORATION
PAY TO THE ORDER OF
SOCIAL SECURITY SYSTEM
PESOS
Eighty seven thousand five hundred pesos only
PCI Bank
__________________________
SUCAT ROAD BRANCH
Grac e
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
Payee:
Amount in words:
SOCIAL SECURITY SYSTEM Eighty seven thousand five hundred pesos
For
Remittance of Medicare, SSS & ECC, Employer's and Employee's contribution
Date of Check:
Check No.:
December 9, 2011 Prepared by:
Checked By:
Approved by:
Received above amount P
by
:
Date :
ACCOUNT NO.
4486-9156-80
ACCOUNT NAME
GRACE CORPORATION
PAY TO THE ORDER OF
ARBOLEDA CO., INC.
PESOS
One hundred seventy five thousand pesos only
PCI Bank
__________________________
SUCAT ROAD BRANCH
Grac e
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
Payee:
ARBOLEDA CO., INC.
Amount in words:
One hundred seventy five thousand pesos
For
Partial paymenr for invoce No. 101
Date of Check:
Check No.:
December 10, 2011 Prepared by:
Checked By:
Approved by:
Received above amount P
by
:
Date :
ACCOUNT NO.
4486-9156-80
ACCOUNT NAME
GRACE CORPORATION
PAY TO THE ORDER OF
SAPPHIRE CORPORATION
PESOS
One hundred fourteen thousand nine hundred pesos only
PCI Bank
__________________________
SUCAT ROAD BRANCH
Grac e
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
Payee:
SAPPHIRE CORPORATION
Amount in words:
One hundred fourteen thousand nine hundred p
For
Partial paymenr for invoce No. 1082
Date of Check:
Check No.:
December 10, 2011 Prepared by:
Checked By:
Approved by:
Received above amount P
by
:
Date :
ACCOUNT NO.
4486-9156-80
ACCOUNT NAME
GRACE CORPORATION
PAY TO THE ORDER OF
ARBOLEDA CO., INC
PESOS
One million five hundred fifty four thousand five hundred pesos
PCI Bank
__________________________
SUCAT ROAD BRANCH
Grac e
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
Payee:
ARBOLEDA CO., INC
Amount in words:
One million five hundred fifty four thousand five hund
For
Full payment of account with Arboleda Co., Inc. per Invoice no. 90
Date of Check:
Check No.:
December 10, 2011 Prepared by:
Checked By:
Approved by:
Received above amount P
by
:
Date :
ACCOUNT NO.
4486-9156-80
ACCOUNT NAME
GRACE CORPORATION
PAY TO THE ORDER OF
CALTEX GAS
PESOS
Fourteen thousand pesos only
PCI Bank SUCAT ROAD BRANCH
Grac e
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
__________________________
Grac e Payee:
CALTEX GAS
Amount in words:
Fourteen thousand pesos only
For
560 liters gasoline
Date of Check:
Check No.:
December 12, 2011 Prepared by:
Checked By:
Approved by:
Received above amount P
by
:
Date :
ACCOUNT NO.
4486-9156-80
ACCOUNT NAME
GRACE CORPORATION
PAY TO THE ORDER OF
PAYMASTER
PESOS
One million eighty thousand pesos only
PCI Bank
__________________________
SUCAT ROAD BRANCH
Grac e
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
Payee:
CALTEX GAS
Amount in words:
One million eighty thousand pesos only
For
Salaries for December 1- 15, 2011 Total Less: SSS, Medicare & ECC HDMF Withholding taxes
1,238,760.00 (72,360.00) (21,600.00) (64,800.00)
Date of Check:
Check No.:
December 14, 2011 Prepared by:
Checked By:
Approved by:
Received above amount P
by
:
Date :
ACCOUNT NO.
4486-9156-80
ACCOUNT NAME
GRACE CORPORATION
PAY TO THE ORDER OF
GENIUS PAPER PRODUCTS
PESOS
Six hundred twenty five thousand pesos only
PCI Bank
__________________________
SUCAT ROAD BRANCH
Grac e
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
Payee:
GENIUS PAPER PRODUCTS
Amount in words:
Six hundred twenty five thousand pesos o
For
Partial payment per Invoice No. 130
Date of Check:
Check No.:
December 15, 2011 Prepared by:
Checked By:
Approved by:
Received above amount P
by
:
Date :
ACCOUNT NO.
4486-9156-80
ACCOUNT NAME
GRACE CORPORATION
PAY TO THE ORDER OF
MERALCO
PESOS
Thirteen thousand two hundred fifty pesos only
PCI Bank
__________________________
SUCAT ROAD BRANCH
Grac e
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
Payee:
MERALCO
Amount in words:
Thirteen thousand two hundred fifty pesos
For
Additional electric bill for November 2011
Date of Check:
Check No.:
December 15, 2011 Prepared by:
Checked By:
Approved by:
Received above amount P
by
:
Date :
ACCOUNT NO.
4486-9156-80
ACCOUNT NAME
GRACE CORPORATION
PAY TO THE ORDER OF
ARBOLEDA CO., INC.
PESOS
Eighty three thousand three hundred pesos only
PCI Bank SUCAT ROAD BRANCH
__________________________
Grac e
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
Payee:
ARBOLEDA CO., INC.
Amount in words:
Eighty three thousand three hundred pesos
For
Full payment of Invoice No. 117 Invoice Price Less:
Discount Balance
Date of Check:
P
85,000.00
P
1,700.00 83,300.00
Check No.:
December 20, 2011 Prepared by:
Checked By:
Approved by:
Received above amount P
by
:
Date :
ACCOUNT NO.
4486-9156-80
ACCOUNT NAME
GRACE CORPORATION
PAY TO THE ORDER OF
ARCHER SUPPLIES
PESOS
Five thousand pesos only
PCI Bank
__________________________
SUCAT ROAD BRANCH
Grac e
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
Payee:
Amount in words:
ARCHER SUPPLIES Five thousand pesos only
For
500 pieces plastic bags for store supplies
Date of Check:
Check No.:
December 21, 2011 Prepared by:
Checked By:
Approved by:
Received above amount P by
:
Date :
4486-9156-80
ACCOUNT NO.
ACCOUNT NAME
GRACE CORPORATION
PAY TO THE ORDER OF
GENIUS PAPER PRODUCTS
PESOS
Thirty two thousand five hundred pesos only
PCI Bank
__________________________
SUCAT ROAD BRANCH
Grac e
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
Payee:
GENIUS PAPER PRODUCTS
Amount in words:
Thirty two thousand five hundred pesos o
For
Partial payment of invoice no. 145 Invoice price
130,000.00
25% payment Balance
32,500.00 97,500.00
Date of Check:
Check No.:
December 26, 2011 Prepared by:
Checked By:
Approved by:
Received above amount P
by
:
Date :
4486-9156-80
ACCOUNT NO.
ACCOUNT NAME
GRACE CORPORATION
PAY TO THE ORDER OF
GENIUS PAPER PRODUCTS
PESOS
One hundred twenty five thousand three hundred fifteen pesos
PCI Bank
__________________________
SUCAT ROAD BRANCH
Grac e
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
Payee:
GENIUS PAPER PRODUCTS
Amount in words:
One hundred twenty five thousand three hundred fifte
For
Partial payment of invoice no. 140 Invoice price
127,875.00
Discount Balance
2,560.00 125,315.00
Date of Check:
Check No.:
December 26, 2011 Prepared by:
Checked By:
Approved by:
Received above amount P by
:
Date :
ACCOUNT NO.
PAY TO THE
4486-9156-80
ACCOUNT NAME
GRACE CORPORATION
ORDER OF
GENIUS PAPER PRODUCTS
PESOS
Twenty five thousand pesos only
PCI Bank
__________________________
SUCAT ROAD BRANCH
Grac e
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
Payee:
GENIUS PAPER PRODUCTS
Amount in words:
Twenty five thousand pesos only
For
Full payment of asccount with Arboleda Co., Inc per Invoice No. 90
Date of Check:
Check No.:
December 26, 2011 Prepared by:
Checked By:
Approved by:
Received above amount P by
:
Date :
ACCOUNT NO.
4486-9156-80
ACCOUNT NAME
GRACE CORPORATION
PAY TO THE ORDER OF
ARBOLEDA CO., INC.
PESOS
Twenty five thousand four hundred ninety pesos only
PCI Bank SUCAT ROAD BRANCH
Grac
__________________________
Grac e
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
Payee:
ARBOLEDA CO., INC.
Amount in words:
Twenty five thousand four hundred ninety pes
For
Full payment of Invoice No. 127 Invoice price
25,750.00
Discount Balance
260.00 25,490.00
Date of Check:
Check No.:
December 26, 2011 Prepared by:
Checked By:
Approved by:
Received above amount P by
:
Date :
ACCOUNT NO.
4486-9156-80
ACCOUNT NAME
GRACE CORPORATION
PAY TO THE ORDER OF
XYZ ADS
PESOS
Thirteen thousand three hundred twenty five pesos only
PCI Bank
__________________________
SUCAT ROAD BRANCH
Grac e
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
Payee:
Amount in words: For
100 pieces brochures
XYZ ADS
Thirteen thousand three hundred twenty five pe
Date of Check:
Check No.:
December 27, 2011 Prepared by:
Checked By:
Approved by:
Received above amount P by
:
Date :
ACCOUNT NO.
4486-9156-80
ACCOUNT NAME
GRACE CORPORATION
PAY TO THE ORDER OF
SAPPHIRE CORPORATION
PESOS
Eighty five thousand pesos only
PCI Bank
__________________________
SUCAT ROAD BRANCH
Grac e
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
Payee:
XYZ ADS
Amount in words:
Eighty five thousand pesos only
For
In payment for Invoice No. 1095
Date of Check:
Check No.:
December 28, 2011 Prepared by:
Checked By:
Approved by:
Received above amount P by
:
Date :
ACCOUNT NO.
4486-9156-80
ACCOUNT NAME
GRACE CORPORATION
PAY TO THE ORDER OF
PAYMASTER
PESOS
Nine hundred forty two thousand eight hundred forty pesos onl
PCI Bank
__________________________
SUCAT ROAD BRANCH
Grac e
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
Payee:
PAYMASTER
Amount in words:
Nine hundred forty two thousand eight hundred fort
For
Payroll for December 16-31 Less: SSS, Medicare & ECC Withholding Taxes HDMF
1,101,600.00 (72,360.00) (64,800.00) (21,600.00)
Date of Check:
Check No.:
December 30, 2011 Prepared by:
Checked By:
Approved by:
Received above amount P by
:
Date :
ACCOUNT NO.
4486-9156-80
ACCOUNT NAME
PAY TO THE ORDER OF
MERALCO
PESOS
Eighty five thousand pesos only
GRACE CORPORATION
PCI Bank
__________________________
SUCAT ROAD BRANCH
Grac e
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
Payee:
MERALCO
Amount in words:
Eighty five thousand pesos only
For
Meralco bill for the period December 1-31 2011
Date of Check:
Check No.:
January 3, 2012 Prepared by:
Checked By:
Approved by:
Received above amount P by
:
Date :
ACCOUNT NO.
4486-9156-80
ACCOUNT NAME
GRACE CORPORATION
PAY TO THE ORDER OF
GENIUS PAPER PRODUCTS
PESOS
Two hundred forty nine thousand seven hundred fifty pesos only
PCI Bank SUCAT ROAD BRANCH
Grac e
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
__________________________
Grac e Payee:
GENIUS PAPER PRODUCTS
Amount in words:
Two hundred forty nine thousand seven hundred fift
For
In payment of purchases
Date of Check:
Check No.:
January 3, 2012 Prepared by:
Checked By:
Approved by:
Received above amount P by
:
Date :
ACCOUNT NO.
4486-9156-80
ACCOUNT NAME
GRACE CORPORATION
PAY TO THE ORDER OF
PCI BANKARD, INC.
PESOS
Ninety seven thousand pesos only
PCI Bank
__________________________
SUCAT ROAD BRANCH
Grac e
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
Payee:
PCI BANKARD, INC.
Amount in words: For
Representation expenses of the president incurred in December 2011
Ninety seven thousand pesos only
Date of Check:
Check No.:
January 3, 2012 Prepared by:
Checked By:
Approved by:
Received above amount P by
:
Date :
ACCOUNT NO.
4486-9156-80
ACCOUNT NAME
GRACE CORPORATION
PAY TO THE ORDER OF
MUNICIPALITY OF MANILA
PESOS
Seventy thousand pesos only
PCI Bank
__________________________
SUCAT ROAD BRANCH
Grac e
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
Payee:
MUNICIPALITY OF MANILA
Amount in words:
Seventy thousand pesos only
For
Property taxes for 2011
Date of Check:
Check No.:
January 4, 2012 Prepared by:
Checked By:
Approved by:
Received above amount P by
:
Date :
ACCOUNT NO.
4486-9156-80
ACCOUNT NAME
GRACE CORPORATION
PAY TO THE ORDER OF
PHILIPPINE LONG DISTANCE COMPANY
PESOS
Fifteen thousand pesos only
PCI Bank
__________________________
SUCAT ROAD BRANCH
Grac e
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
Payee:
PHILIPPINE LONG DISTANCE COMPANY
Amount in words:
Fifteen thousand pesos only
For
Telephone bill for December 2011
Date of Check:
Check No.:
January 4, 2012 Prepared by:
Checked By:
Approved by:
Received above amount P by
:
Date :
ACCOUNT NO.
4486-9156-80
ACCOUNT NAME
GRACE CORPORATION
PAY TO THE ORDER OF
MWSS
PESOS
Forty eight thousand five hundred pesos only
PCI Bank SUCAT ROAD BRANCH
__________________________
Grace
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
Payee:
MWSS Amount in words:
Forty eight thousand five hundred pesos o
For
Water bill for December 2011
Date of Check:
Check No.:
January 4, 2012 Prepared by:
Checked By:
Approved by:
Received above amount P by
:
Date :
ACCOUNT NO.
4486-9156-80
ACCOUNT NAME
GRACE CORPORATION
PAY TO THE ORDER OF
ARBOLEDA CO., INC
PESOS
One hundred forty three thousand four hundred fifty pesos only
PCI Bank
__________________________
SUCAT ROAD BRANCH
Grac e
CORPORATION VAT 2011-002-148 | TIN 4004-009-175
Payee:
Amount in words: For
ARBOLEDA CO., INC
One hundred forty three thousand four hundred fift
In payment of purchases
Date of Check:
Check No.:
January 4, 2012 Prepared by:
Checked By:
Approved by:
Received above amount P by
:
Date :
F-1.5 12345
CHECK NO.
DATE
December 2, 2011
300,000.00
P
__________________________
No.
CASH VOUCHER
300
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph Date:
December 2, 2011
usand pesos only
P
300,000.00
12345
d above amount P
CHECK NO.
DATE
P
12346
December 5, 2011
972,750.00
ndred fifty pesos only __________________________
No.
CASH VOUCHER
301
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph Date:
December 5, 2011
d seven hundred fifty pesos only
P
972,750.00
12346
d above amount P
CHECK NO.
DATE
12347
December 7, 2011
34,200.00
P
__________________________
CASH VOUCHER
No.
302
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689
Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph Date:
December 7, 2011
o hundred pesos only
P
34,200.00
12347
d above amount P
CHECK NO.
DATE
12348
December 9, 2011
87,500.00
P
__________________________
CASH VOUCHER
No.
303
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph Date:
December 9, 2011
ve hundred pesos only
P
87,500.00
12348
d above amount P
12349
CHECK NO.
DATE
December 10, 2011
175,000.00
P
__________________________
No.
CASH VOUCHER
304
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph Date:
December 10, 2011
e thousand pesos only
d above amount P
P
175,000.00
12349
12350
CHECK NO.
DATE
December 10, 2011
114,900.00
P
pesos only __________________________
No.
CASH VOUCHER
305
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph Date:
December 10, 2011
nd nine hundred pesos only
P
114,900.00
12350
d above amount P
CHECK NO.
DATE
12351
December 10, 2011
P
ve hundred pesos only
1,554,500.00
__________________________
No.
CASH VOUCHER
306
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph Date:
December 10, 2011
housand five hundred pesos only
P
1,554,500.00
12351
d above amount P
CHECK NO.
DATE
12352
December 12, 2011
14,000.00
P
__________________________
CASH VOUCHER
No.
307
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph
Date:
December 12, 2011
nd pesos only
P
14,000.00
12352
d above amount P
CHECK NO.
DATE
12353
December 14, 2011
1,080,000.00
P
__________________________
CASH VOUCHER
No.
308
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph Date:
December 14, 2011
ousand pesos only
P
1,080,000.00
12353
d above amount P
12354
CHECK NO.
DATE
December 15, 2011
625,000.00
P
__________________________
No.
CASH VOUCHER
309
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph Date:
December 15, 2011 thousand pesos only
d above amount P
P
625,000.00
12354
12355
CHECK NO.
DATE
December 15, 2011
13,250.00
P
__________________________
No.
CASH VOUCHER
310
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph Date:
December 15, 2011
undred fifty pesos only
P
13,250.00
12355
d above amount P
CHECK NO.
DATE
P
12356
December 20, 2011
83,300.00
__________________________
No.
CASH VOUCHER
311
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph Date:
December 20, 2011
ee hundred pesos only
P
83,300.00
12356
d above amount P
CHECK NO.
DATE
12357
December 21, 2011
5,000.00
P
__________________________
CASH VOUCHER
No.
312
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph Date:
December 21, 2011 pesos only
P
5,000.00
12357
d above amount P
12358
CHECK NO.
DATE
December 26, 2011
32,500.00
P
__________________________
No.
CASH VOUCHER
313
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph Date:
December 26, 2011
e hundred pesos only
d above amount P
P
32,500.00
12358
12359
CHECK NO.
DATE
December 26, 2011
125,315.00
P
red fifteen pesos only __________________________
No.
CASH VOUCHER
314
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph Date:
December 26, 2011
three hundred fifteen pesos only
P
125,315.00
12359
d above amount P
CHECK NO.
DATE
12360
December 26, 2011
25,000.00
P
__________________________
No.
CASH VOUCHER
315
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph Date:
December 26, 2011
and pesos only
P
25,000.00
12360
d above amount P
CHECK NO.
DATE
12361
December 26, 2011
25,490.00
P
__________________________
CASH VOUCHER
No.
316
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph Date:
December 26, 2011
undred ninety pesos only
P
25,490.00
12361
d above amount P
CHECK NO.
DATE
12362
December 27, 2011
13,325.00
P
pesos only __________________________
CASH VOUCHER
No.
317
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph Date:
December 27, 2011
dred twenty five pesos only
P
13,325.00
12362
d above amount P
12363
CHECK NO.
DATE
December 28, 2011
85,000.00
P
__________________________
No.
CASH VOUCHER
318
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph Date:
December 28, 2011
and pesos only
d above amount P
P
85,000.00
12363
12364
CHECK NO.
DATE
December 30, 2011
942,840.00
P
ed forty pesos only __________________________
No.
CASH VOUCHER
319
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph Date:
December 28, 2011
eight hundred forty pesos only
P
942,840.00
12364
d above amount P
CHECK NO.
DATE
P
12365
January 3, 2012
85,000.00
__________________________
No.
CASH VOUCHER
320
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph Date:
January 3, 2012
and pesos only
P
85,000.00
12365
d above amount P
CHECK NO.
DATE
12366
January 3, 2012
249,750.00
P
ed fifty pesos only __________________________
CASH VOUCHER
No.
321
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph
Date:
January 3, 2012
seven hundred fifty pesos only
P
249,750.00
12366
d above amount P
CHECK NO.
DATE
12367
January 3, 2012
97,000.00
P
__________________________
CASH VOUCHER
No.
322
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph Date:
December 26, 2011
sand pesos only
P
97,000.00
12367
d above amount P
12368
CHECK NO.
DATE
January 4, 2012
70,000.00
P
__________________________
No.
CASH VOUCHER
323
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph Date:
January 4, 2012
nd pesos only
P
70,000.00
12368
d above amount P
CHECK NO.
12369
DATE
January 4, 2012
15,000.00
P
__________________________
No.
CASH VOUCHER
324
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph Date:
January 4, 2012
d pesos only
P
15,000.00
12369
d above amount P
CHECK NO.
DATE
P
12370
January 4, 2012
48,500.00
__________________________
No.
CASH VOUCHER
325
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph Date:
January 4, 2012
e hundred pesos only
P
48,500.00
12370
d above amount P
12371
CHECK NO.
DATE
January 4, 2012
143,450.00
P
ed fifty pesos only __________________________
CASH VOUCHER
No.
326
12 Ninoy Aquino Avenue, Paranaque City | Tel: 632 843 7689 Telefax: 632 843 7690 | Website: www.gracecorporation.biz.ph Date:
d four hundred fifty pesos only
January 4, 2012
d above amount P
P
143,450.00
12371
GRACE CORPORATION
F-1.6
Purchase Discounts December 31, 2011
Invoice Number 117 140 127
CV Number 311 314 257
Discount Taken 1700 2560 260
Net of Input Tax 1545 2327 236
4520
4109
Due to the Purchase Discount, there was a change in cost per item of the related invoices. Invoice Number 117 140 140 127
Item BIC Ballpen - Blue Cartolina Art Paper Pilot Pen
Old Cost 8.5 8.5 145 103
New Cost 8.33 8.33 142.1 101.96
F1
GRACE CORPORATION Recalculation of Cost of Sales December 31, 2011
Invoice number
Invoice Number
Items
Quantity
Cost
Item Total
Invoice Total (Net of Input Tax)
1251 Plain Pencil - Mongol
1250
70.00
87,500.00
250
90.00
22,500.00
Silver Paper Clips
10
35.00
350.00
Blackie Carbon Paper
20
100.00
2,000.00
Whitey Bond Paper
150
130.00
19,500.00
Milky Onion Skin
200
110.00
22,000.00
Bic Ballpen - Black
750
8.50
6,375.00
Bic Ballpen - Blue
750
8.33
6,247.50
Bic Ballpen - Red
400
8.50
3,400.00
Charcoal Pencil - Steadler
169,872.50
₱154,430
1252 Fastener
350
1.00
350.00
Folder - regular
350
2.50
875.00
Elmer's Glue
60
22.50
1,350.00
Roll-O Typewriter Ribbon
20
20.50
410.00
2,985.00 1253 Quink Ink
70
57.00
3,990.00
Pilot Fountain Pen
70
101.96
7,137.20
100 20
130.00 100.00
13,000.00 2,000.00
Whitey Bond Paper Blackie Carbon Paper
1251 1252 1253 1254 1255 1256 1257 1258 1259 1260 1261 1262 1263
₱2,714
1264 1265 1266
Milky Onion Skin 10 Column Worksheet - Vernal 12 Column Worksheet - Vernal
80 50 50
110.00 50.00 50.00
8,800.00 2,500.00 2,500.00
39,927.20
Difference per discount: ₱36,297
1254 Plain Pencil - Mongol Charcoal Pencil - Staedler 16 column worksheet - vernel 14 column worksheet - vernel 12 column worksheet - vernel 10 column worksheet - vernel Yellow paper - Old Mill Bond Paper - Whitey Onion Skin - Milky Cartolina Plastic Cover Art Paper Folder - Regular Folder - Long
800.00 700.00 500.00 500.00 500.00 500.00 1500.00
70.00 90.00 50.00 50.00 50.00 50.00 30.00
500.00 700.00 300.00 2500.00 250.00 500.00 500.00
130.00 110.00 8.33 17.50 142.10 2.50 3.50
56000.00 63000.00 25000.00 25000.00 25000.00 25000.00 45000.00 65000.00 77000.00 2499.00 43750.00 35525.00 1250.00 1750.00
490774.00 1255 Plain pencil- mongol thumbtacks - golden Elemer's glue Carbon paper - blackie Typewriter Ribbon - Roll-o scissors thick notebook thin notebook Bic ballpen - black Bic ballpen - blue Bic Ballpen - red Fastener
100.00 150.00 300.00 150.00 240.00 300.00 1500.00 1000.00 2500.00 2500.00 2500.00 1000.00
35.00 40.00 22.50 100.00 20.50 12.00 32.50 27.50 8.50 8.33 8.50 1.00
3500.00 6000.00 6750.00 15000.00 4920.00 3600.00 48750.00 27500.00 21250.00 20825.00 21250.00 1000.00
₱446,158
Difference per error in cost of sales shee
Intermediate Pad - old mill Ink - Quink
1500.00 150.00
15.00 57.00
22500.00 8550.00
211395.00
₱192,177
1256 scissors Fountain pen - pilot thumbtacks - golden paper clips - silver cartolina 16 column worksheet 14 column worksheet 12 column worksheet 10 column worksheet
-
200 50 20 20 150 300 500 400 500
vernal vernal vernal vernal
12.00 101.96 40.00 35.00 8.33 50.00 50.00 50.00 50.00
2,400.00 5,098.00 800.00 700.00 1,249.50 15,000.00 25,000.00 20,000.00 25,000.00
95,247.50
₱86,589
1257 Intermediate Pad - Old Mill Yellow Paper - Old Mill Onion Skin - milky Bond Paper - Whitey Scissors Thick Notebook Thin Notebook
250 450 100 100 50 300 300
15 30 110 130 12 32.5 27.5
3750 13500 11000 13000 600 9750 8250 59850
1258 Intermediate Pad - Old Mill Yellow Paper - Old Mill Plastic Cover Cartolina Folder - regular Folder - long Leaf notebook - Thick Bind Notebook - Thin Fastener Scissors
1500 1250 1300 450 250 274 300 300 500 150
15 30 17.5 8.33 2.5 3.5 32.5 27.5 1 12
22500 37500 22750 3748.5 625 959 9750 8250 500 1800
₱54,409
Art Paper Elmer's Glue
200 150
142.1 22.5
28420 3375 140177.5
₱127,434
16800 10800 1050 800 4000 1230 2082.5 2125 1275 2100 1500 8156.8 51919.3
₱47,199
1200 8550 1350 26000 39600 76700
₱69,727
1259 Plain Pencil - Mongol Charcoal Pencil - Staedler Silver Paper Clips Golden Thumbstacks Blackie Carbon Paper Roll-O Typewriter Ribbon Bic Ballpen - Blue Bic Ballpen - Black Bic Ballpen - Red Folder - Long Folder - Regular Pilot Fountain Pen
240 120 30 20 40 60 250 250 150 600 600 80
70 90 35 40 100 20.5 8.33 8.5 8.5 3.5 2.5 101.96
1260 Fastener Quick Ink Elmer's Glue Bond Paper - Whitey Onion Skin - Milky
1200 150 60 200 360
1 57 22.5 130 110
1261 Plain Pencil - Mongol Charcoal Pencil - Staedler Silver Paper Clips Golden Thumbstacks Intermediate pad - old mill Yellow Paper - Old Mill Cartolina Elmer's Glue 10 CW
50 100 50 50 500 500 250 120 500
70 90 35 40 15 30 8.33 22.5 50
3500 9000 1750 2000 7500 15000 2082.5 2700 25000
12 CW 14 CW 16 CW
500 500 500
50 50 50
25000 25000 25000 143532.5
₱130,484
6375 6247.5 6375 14625 22000 55622.5
₱50,566
1262 Bic Ballpen - Black Bic Ballpen - Blue Bic Ballpen - Red Thick Notebook Thin Notebook
750 750 750 450 800
8.5 8.33 8.5 32.5 27.5
1263 10 CW 12 CW 14 CW 16 CW Type writer Ribbon Plain Pencil - Mongol Charcoal Pencil - Staedler Bic Ballpen - Black Bic Ballpen - Blue Bic Ballpen - Red Yellow Paper - Old Mill Bond Paper - whitey Carbon Paper - Blackie
1500 1250 2000 1250 100 500 250 1250 1250 750 1200 600 60
50 50 50 50 20.5 70 90 8.5 8.33 8.5 30 130 100
75000 62500 100000 62500 2050 35000 22500 10625 10412.5 6375 36000 78000 6000 506962.5
₱460,875 ₱1,859,060
1264 Charcoal Pencil - Staedler Bond Paper - Whitey Bic Ballpen - Black Bic Ballpen - Blue Bic Ballpen - Red
500 300 1500 1500 500
90 130 8.5 8.33 8.5
45000 39000 12750 12495 4250 113495
₱103,177
SALES 1265 Elmer's Glue Typewriter Ribbon - Roll-O Bond Paper - Whitey
1600 1200 500
22.5 20.5 130
36000 24600 65000 125600
₱114,182
30000 130000 160000
₱145,455
1266 Yellow Paper - Old Mill Bond Paper - Whitey
1000 1000
30 130
F-1.7 Cost of Sales Balances per sales invoice per Cost of Sales Sheet (GJ 13)
154,545 2,714 36,364 639,427 86,659 54,409 127,955 117,041 181,205 461,068 1,861,387
Cost of Sales Balances per Sales invoice per auditors' recalculation
154,430 2,714 36,297 446,158 192,177 86,589 54,409 127,434 47,199 69,727 130,484 50,566 460,875 1,859,058 103,177 114,182 145,455 2,221,872
ce per discount:
ce per error in cost of sales sheet:
2,328.18 F1 F1 362,814
STOCK CARD Pencil Mongol Plain
ITEM DESCRIPTION
REFERENCE
DATE
PURCHASE INV.
SALES INV.
2011 Nov. Dec.
30 Balance 1 PI 101 4 12 26 30 31 31 29 31 1/4/2012 final adjustment
RECEIVED
5,000 SI SI SI SI SI SI SI
1251 1254 1259 1261 1265 1265 1255
STOCK CARD ITEM DESCRIPTION
DATE
2011 Nov. Dec.
Pencil Steadler charcoal REFERENCE PURCHASE INV.
30 3 PI 1082 4 12 26 30 31 29 PI 7729 29
SALES INV.
RECEIVED
5,000 SI SI SI SI SI
1251 1254 1259 1261 1265 500
SI 1263
31 1/4/2012
STOCK CARD Ballpen BIC-Red
ITEM DESCRIPTION
REFERENCE
DATE
PURCHASE INV.
SALES INV.
2011 Nov. Dec.
30 Balance 1 PI 101 4 12 26 30 31 30 31 29 PI 101 30 31 1/3/2012 1/3/2012 PI 770 1/4/2012 final adjustment
RECEIVED
7,500 SI SI SI SI SI SI SI
1251 1254 1259 1262 1263 1259 1263
90 1,500
SI 1264 SI 1267 2,000
STOCK CARD ITEM DESCRIPTION
DATE
2011 Nov. Dec.
Ballpen BIC-Blue REFERENCE PURCHASE INV.
30 Balance 4 12 16 PI 117 26 30
SALES INV.
RECEIVED
SI 1251 SI 1255 10,000 SI 1259 SI 1262
31 29 PI 7729 30 31 1/3/2012 PI 770 1/3/2012 1/4/2012
SI 1263 1,500 SI 1264 3,000 SI 1267
STOCK CARD Ballpen BIC-Black
ITEM DESCRIPTION
REFERENCE
DATE
PURCHASE INV.
SALES INV.
2011 Nov. Dec.
30 Balance 4 12 18 PI 1095 26 30 31 29 PI 7729 30 31 1/3/2012 PI 770 1/3/2012 1/4/2012
RECEIVED
SI 1251 SI 1254 10,000 SI 1259 SI 1262 SI 1263 1,500 SI 1264 2,500 SI 1267
STOCK CARD ITEM DESCRIPTION
DATE
2011 Nov. Dec.
Fountain Pen Pilot REFERENCE PURCHASE INV.
30 Balance 7 17 24 PI 127 26
SALES INV.
RECEIVED
SI 1253 SI 1256 250 SI 1259
31 1/4/2012 final djustment
STOCK CARD ITEM DESCRIPTION
DATE
Worksheet Vernal - 16 columns REFERENCE PURCHASE INV.
SALES INV.
2011 Nov. Dec.
30 Balance 2 PI 117 12 17 30 31 31 1/4/2012
RECEIVED
15,000 SI SI SI SI
1254 1256 1261 1263
STOCK CARD ITEM DESCRIPTION
DATE
Worksheet Vernal - 14 columns REFERENCE PURCHASE INV.
SALES INV.
2011 Nov. Dec.
30 Balance 2 PI 111 12 17 30 31 31 1/4/2012
STOCK CARD
RECEIVED
13,500 SI SI SI SI
1254 1256 1261 1263
ITEM DESCRIPTION
DATE
Worksheet Vernal - 12 columns REFERENCE PURCHASE INV.
SALES INV.
2011 Nov. Dec.
30 Balance 6 PI 127 10 12 17 30 31 30 31 1/4/2012
RECEIVED
17,000 SI SI SI SI SI SI
1253 1254 1256 1261 1263 1261
STOCK CARD ITEM DESCRIPTION
DATE
Worksheet Vernal - 10 columns REFERENCE PURCHASE INV.
SALES INV.
2011 Nov. 30 Balance Dec. 6 PI 127 10 12 17 30 31 31 1/4/2012
RECEIVED
15,000 SI SI SI SI SI
1253 1254 1256 1261 1263
STOCK CARD ITEM DESCRIPTION
DATE
Pad Paper Old Mill - intermediate REFERENCE PURCHASE INV.
SALES INV.
RECEIVED
2011 Nov. 30 Balance Dec. 10 PI 130 12 19 23 30 31 1/4/2012
7,500 SI SI SI SI
1255 1257 1258 1261
STOCK CARD Pad Paper Old Mill - yellow
ITEM DESCRIPTION
REFERENCE
DATE
PURCHASE INV.
SALES INV.
2011 Nov. Dec.
30 Balance 10 PI 130 12 19 23 30 31 30 30 PI 825 31 1/3/2012 PI 770 1/3/2012 1/4/2014
RECEIVED
8,500 SI SI SI SI SI SI
1254 1257 1258 1261 1263 1266 1,000 250
SI 1268
STOCK CARD ITEM DESCRIPTION
DATE
2011 Nov. Dec.
Bond Paper Whitey REFERENCE PURCHASE INV.
30 Balance 4
SALES INV.
SI 1251
RECEIVED
10 PI 130
4,250 SI SI SI SI SI
12 17 26 31 29 PI 7729 30 PI 825 30 30 30 31 1/3/2012 PI 770 1/3/2012 1/4/2012
1253 1254 1257 1260 1263 1,300 500
SI 1265 SI 1266 SI 1264 100 SI 1268
STOCK CARD ITEM DESCRIPTION
DATE
Onion Skin Milky REFERENCE PURCHASE INV.
SALES INV.
2011 Nov. Dec.
30 Balance 4 8 10 PI 130 12 19 26 31 1/4/2012 final adjusment
RECEIVED
SI 1251 SI 1253 3,000 SI 1254 SI 1257 SI 1260
100
STOCK CARD Cartolina
ITEM DESCRIPTION
DATE
REFERENCE PURCHASE INV.
SALES INV.
RECEIVED
2011 Nov. Dec.
30 Balance 12 17 20 PI 130 23 30 20 PI 140 31 1/4/2012 fInal adjustment
SI 1254 SI 1256 2,250 SI 1258 SI 1261 250
STOCK CARD Plastic Cover
ITEM DESCRIPTION
REFERENCE
DATE
PURCHASE INV.
SALES INV.
2011 Nov. Dec.
30 Balance 9 PI 112 12 23 31 1/4/2012
RECEIVED
5,000 SI 1254 SI 1258
STOCK CARD Art Paper
ITEM DESCRIPTION
DATE
2011 Nov. Dec.
REFERENCE PURCHASE INV.
30 Balance 12 20 PI 140 23 20 PI 140 31
SALES INV.
RECEIVED
SI 1254 750 SI 1258 1,250
1/4/2012 final adjustment
STOCK CARD ITEM DESCRIPTION
DATE
Ink Quink REFERENCE PURCHASE INV.
SALES INV.
RECEIVED
2011 Nov. Dec.
30 Balance 7 PI 107 10 12 26 31 1/4/2012 final adjustment
600 SI 1253 SI 1255 SI 1260
20
STOCK CARD ITEM DESCRIPTION
DATE
Folder Regular REFERENCE PURCHASE INV.
2011 Nov. Dec.
30 Balance 7 12 15 PI 135 23 26 31 1/4/2012 final adjustment
STOCK CARD ITEM
Folder
SALES INV.
RECEIVED
SI 1252 SI 1254 2,500 SI 1258 SI 1259
100
DESCRIPTION
DATE
Long REFERENCE PURCHASE INV.
SALES INV.
2011 Nov. Dec.
30 Balance 12 15 PI 135 23 26 31 1/4/2012 final adjustment
RECEIVED
SI 1254 2,000 SI 1258 SI 1259
STOCK CARD ITEM DESCRIPTION
DATE
Paper Clips Silver REFERENCE PURCHASE INV.
SALES INV.
2011 Nov. Dec.
30 Balance 4 12 17 23 PI 1099 26 30 23 PI 1099 31 1/4/2012 final adjustment
RECEIVED
SI 1251 SI 1255 SI 1256 250 SI 1259 SI 1261 100
10
STOCK CARD ITEM DESCRIPTION
DATE
Thumb Tacks Golden REFERENCE PURCHASE INV.
SALES INV.
RECEIVED
2011 Nov. Dec.
30 Balance 4 12 17 23 PI 1099 26 30 4 23 PI 1099 12 PI 1090 31 1/4/2012 final adjustment
SI 1251 SI 1255 SI 1256 250 SI 1259 SI 1261 SI 1251 (250) 350
40
STOCK CARD ITEM DESCRIPTION
DATE
Glue Elmer's REFERENCE PURCHASE INV.
SALES INV.
2011 Nov. Dec.
30 Balance 7 12 23 26 29 PI 130 30 30 PI 825 30 31 1/4/2012 final adjustment
SI SI SI SI
RECEIVED
1252 1255 1258 1260 850
SI 1261 1,600 SI 1265
STOCK CARD ITEM DESCRIPTION
DATE
Carbon paper Blackie REFERENCE
RECEIVED
DATE
PURCHASE INV.
SALES INV.
2011 Nov. Dec.
30 Balance 4 8 12 26 PI 147 26 30 31 1/4/2012
RECEIVED
SI 1251 SI 1253 SI 1255 450 SI 1259 SI 1263
STOCK CARD Typewritter Ribbon Rollo-O
ITEM DESCRIPTION
REFERENCE
DATE
PURCHASE INV.
SALES INV.
2011 Nov. Dec.
30 Balance 7 12 26 27 PI 1100 31 30 PI 805 30 31 1/4/2012 final adjustment
RECEIVED
SI 1252 SI 1255 SI 1259 650 SI 1263 1,200 SI 1265
STOCK CARD Scissors
ITEM DESCRIPTION
DATE
2011 Nov.
REFERENCE PURCHASE INV.
30 Balance
SALES INV.
RECEIVED
Dec.
3 PI 1082 12 17 19 23 31 1/4/2012
800 SI SI SI SI
1251 1253 1255 1259
STOCK CARD Notebook Leaf Thick
ITEM DESCRIPTION
REFERENCE
DATE
PURCHASE INV.
SALES INV.
2011 Nov. Dec.
30 Balance 12 19 22 PI 145 23 31 31 1/4/2012
RECEIVED
SI 1255 SI 1257 4,000 SI 1258 SI 1262
STOCK CARD ITEM DESCRIPTION
DATE
2011 Nov. Dec.
Notebook Bind Thin REFERENCE PURCHASE INV.
30 Balance 12 19 23 28 PI 151 30 12
SALES INV.
RECEIVED
SI 1255 SI 1257 SI 1258 6,000 SI 1262 SI 1255
19 23 30 31 1/4/2012
SI 1257 SI 1258 SI 1262
STOCK CARD Fastener
ITEM DESCRIPTION
DATE
2011 Nov. Dec.
REFERENCE PURCHASE INV.
30 Balance 12 19 22 PI 120 23 31 31 1/4/2012
SALES INV.
RECEIVED
SI 1252 SI 1255 5,000 SI 1258 SI 1260
F-1.8 1001 box
STOCK NO. UNIT
ISSUED
BALANCE
200 5,200 3,950 3,150 2,910 2,860 2,360 2,860 2,760 2,760 2,360 2,360
1,250 800 240 50 500 (500) 100
400
1002 box
STOCK NO. UNIT
ISSUED
BALANCE
250 700 120 100 500 250
100 5,100 4,850 4,150 4,030 3,930 3,430 3,930 3,680
3,680 3,680
1003 piece
STOCK NO. UNIT
ISSUED
BALANCE
500 8,000 7,600 5,100 4,860 4,710 3,960 4,050 3,450 4,950 4,450 4,450 2,450 4,450 3,450 3,450
400 2,500 240 150 750 600 500 2,000
1,000
1004 piece
STOCK NO. UNIT
ISSUED
BALANCE
750 2,500 250 750
4,000 3,250 750 10,750 10,500 9,750
1,250
8,500 10,000 8,500 8,500 11,500 8,500 8,500
1,500
3,000
1005 piece
STOCK NO. UNIT
ISSUED
BALANCE
5,000 4,250 1,750 11,750 11,500 10,750 9,500 11,000 9,500 9,500 12,000 9,500 9,500
750 2,500 250 750 1,250 1,500
2,500
1006 piece
STOCK NO. UNIT
ISSUED
BALANCE
70 50 80
200 130 80 330 250
250 230 230
20
1007 pads
STOCK NO. UNIT
ISSUED
BALANCE
100 15,100 14,600 14,300 13,800 12,550 12,550 12,550
500 300 500 1,250
1,008
STOCK NO.
pads
UNIT
ISSUED
BALANCE
500 500 500 2,000
200 13,700 13,200 12,700 12,200 10,200 10,200 10,200
1009 pads
STOCK NO. UNIT
ISSUED
BALANCE
100 17,100 17,050 16,550 16,150 15,950 14,700 14,400 14,400 14,400
50 500 400 200 1,250 300
1010 pads
STOCK NO. UNIT
ISSUED
BALANCE
200 15,200 15,150 14,650 14,150 13,650 12,150 12,150 12,150
50 500 500 500 1,500
STOCK NO. UNIT
ISSUED
1011 pads
BALANCE
100 7,600 6,100 5,850 4,350 3,850 3,850 3,850
1,500 250 1,500 500
1012 pads
STOCK NO. UNIT
ISSUED
BALANCE
200 8,700 7,200 6,750 5,500 5,000 3,800 2,800 3,800 3,800 4,050 3,800 3,800
1,500 450 1,250 500 1,200 1,000
250
1013 reams
STOCK NO. UNIT
ISSUED
BALANCE
150
200 50
4,300 4,200 3,700 3,600 3,400 2,800 4,100 4,600 4,100 3,100 2,800 2,800 2,900 2,800 2,800
100 500 100 200 600
500 1,000 300
100
1014 reams
STOCK NO. UNIT
ISSUED
BALANCE
300 100 20 3,020 2,320 2,220 1,860 1,860 1,960 1,960
200 80 700 100 360
STOCK NO. UNIT
ISSUED
1015 rolls
BALANCE
500 200 50 2,300 1,850 1,600 1,850 1,850 1,540 1,540
300 150 450 250
310
1,016
STOCK NO.
meters
UNIT
ISSUED
BALANCE
100 5,100 2,600 1,300 1,300 1,300
2,500 1,300
1017 reams
STOCK NO. UNIT
ISSUED
BALANCE
250 200
300 50 800 600 1,850 1,850
600 600
1,250
1018 bottle
STOCK NO. UNIT
ISSUED
BALANCE
100 700 630 480 330 330 350 350
70 150 150
1019 piece
STOCK NO. UNIT
ISSUED
BALANCE
350 500 250 600
STOCK NO.
1,000 650 150 2,650 2,400 1,800 1,800 1,900 1,900
1,020
piece
UNIT
ISSUED
BALANCE
600 100 2,100 1,850 1,250 1,250 1,200 1,200
500 250 600
50
1021 box
STOCK NO. UNIT
ISSUED
BALANCE
150 140 40 20 270 240 190 290 290 300 300
10 100 20 30 50
STOCK NO. UNIT
ISSUED
1022 box
BALANCE
200 190 40 20 270 250 200 210 (40) 310 310 350 350
10 150 20 20 50 (10)
1023 bottle
STOCK NO. UNIT
ISSUED
BALANCE
600 540 240 90 30 880 760 2,360 760 760 660 660
60 300 150 60 120 1,600
100
STOCK NO. UNIT
ISSUED
1024 bottle
BALANCE
ISSUED
BALANCE
200 180 160 10 460 420 360 360 360
20 20 150 40 60
1025 box
STOCK NO. UNIT
ISSUED
BALANCE
600 580 340 280 930 830 2,030 830 830 630 630
20 240 60 100 1,200
200
STOCK NO. UNIT
ISSUED
1026 pair
BALANCE
50
850 550 350 300 150 150 150
300 200 50 150
1027 piece
STOCK NO. UNIT
ISSUED
BALANCE
2,000 500 200 4,200 3,900 3,450 3,450 3,450
1,500 300 300 450
1028 piece
STOCK NO. UNIT
ISSUED
BALANCE
4,000 1,200 1,200 3,200 (3,000)
7,000 3,000 1,800 600 6,600 3,400 6,400
(900) (900) (2,400)
7,300 8,200 10,600 10,600 10,600
1029 piece
STOCK NO. UNIT
ISSUED
BALANCE
350 1,000 500 1,200
1,500 1,150 150 5,150 4,650 3,450 3,450 3,450
GRACE CORPORATION Observation of Physical Count December 31, 2011
I. OBJECTIVES 1 2 3
To obtain evidence of the existence and condition of the inventory and the security of its storage To observe how the client company conducts the inventory count To test the accuracy of the counting
1 2 3
Existence Completeness Accuracy
1 2 3 4 5 6
Read inventory count manual Performed inventory count on selected inventory items Collected the physical inventory list Footed and cross footed the recorded quantity per stock cards Traced transactions recorded on the stock cards with corresponding purchase and sales invoices Completed the test count sheet
II. ASSERTIONS
III. PROCEDURES
F-2
IV. FINDINGS
INVENTORY COUNT SHEET DATE OF COUNT:
CLIENT'S NAME
STOCK LOCATION
JANUARY 4, 2012
GRACE CORPORATION
BALANCE SHEET DATE:
STORE
DECEMBER 31, 2011 DESCRIPTION
QUANTITY AUDITOR'S
BRAND & STOCK
UNIT
STOCK
COUNT
PER CLIENT'S
WP REF
PER COUNT
WP REF
COUNT LIST
DIFFERENCE
REMARKS
Bic Ballpen - Red
pcs.
3,450
F1.8
###
F2.1
3,450
0
Sale of 2500 pieces recorded on December 12 was erroneusly referred to IS 1254. Proper ref - 1255.
- Blue
pcs.
8,500
F1.8
###
F2.1
8,500
0
Ok.
- Black
pcs.
9,500
F1.8
###
F2.1
9,500
0
Sale of 2500 pieces recorded on December 12 was erroneusly referred to IS 1254. Proper ref - 1255.
Charcoal Pencil
box
3,680
F1.8
###
F2.1
3,680
0
Error in recording a sale of 250 boxes on December 31 as 500 boxes, and should be with reference to SI 1263 and not SI 1265.
Plain Pencil
box
2,360
F1.8
###
F2.1
2,360
0
Error in referring sale of 500 boxes recorded on December 31 to SI 1265. Proper ref - SI 1263.
Whitey Bond paper Yellow pad
ream pad
2,800 3,800
F1.8 F1.8
### ###
F2.1 F2.1
2,800 3,800
0 0
Glue Elmer's
botl.
660
F1.8
F2.1
660
-
Roll-O Typewiter ribbo
box
630
F1.8
F2.1
630
-
760 -
Ok. Ok. Not recorded in any of the sales invoices. Possibility of theft. No stock card.
Calculator - fx-39 - fx-40 - hl-807 Max Stapler Worksheet - 16 columns - 14 columns
pcs. pcs. pcs. pcs.
0 0 0 5
F1.8 F1.8 F1.8 F1.8
pads pads
12,550 10,200
F1.8 F1.8
- 12 columns
pads
14,400
- 10 columns
pads
12,150
F2.1 F2.1 F2.1 F2.1
0 0 0 5
-
No stock card. No stock card. No stock card. No stock card.
12,550 10,200
F2.1 F2.1
12,550 10,200
0 0
Ok. Ok.
F1.8
14,700
F2.1
14,400
(300)
Sale of 500 pads dated November 30 with ref to SI 1261 was recorded in the stock card as 200.
F1.8
12,100
F2.1
12,150
50
Error in footing.
TAKEN BY
-
SHEET NO. _____ OF _____ SHEETS
AUDITOR'S
CLIENT'S
REPRESENTATIVE
REPRESENTATIVE
COMPLETE CHECK
ü FOR AUDITOR
TEST CHECK
FOR CLIENT
LEGEND: ö
V. CONCLUSION
-
Compared the per-transaction amounts recorded on the stock cards to that of the referred purchase and sales invoices.
The performed inventory counts (by both the auditor and the client) have proven the existence of the different inventory items of the company, and that the quantity as per auditor's count and as per client's count are accurate. However, some balances that were recorded on the stock cards are either incorrect or referring to the wrong Sales Invoice. Moreover, the missing inventory of 100 bottles of glue with no record in any of the company's sales invoices for the month is a possible indication of theft. Some stock cards were not available for audit as well.
Prepared by: JGN Reviewed by: MZB
Date: 1/12/2012 Date: 1/16/2012
ö ö ö
ö
ö ö ö ö ö
ö ö ö ö ö ö ö ö
per s Invoice. ards
GRACE CORPORATION Physical Inventory List January 4, 2012 UNIT COST ITEM
BRAND
(VAT Inclusive)
Plain Pencil Charcoal Pencil Red Ballpen Blue Ballpen Black Ballpen
Mongol Staedler Bic Bic Bic
Fountain Pen Worksheet 16 columns 14 columns 12 columns 10 columns Intermediate pad Yello Pad Bond Paper Onion Skin Cartolina Plastic Cover Art Paper Ink Regular Folder Long Folder Paper Clips Thumbtacks Glue Carbon Paper Typewriter Ribbon Scissors Thick Notebook Thin Notebook Fastener Envelope - short Envelope - long Calculator fx-39 fx-40
Pilot
103.50
Vernal Vernal Vernal Vernal Old Mill Old Mill Whitey Milky
50.00 50.00 50.00 50.00 15.00 30.00 130.00 110.00 9.00 17.50 150.00 57.00 2.50 3.50 30.00 40.00 22.50 100.00 20.50 12.00 32.50 27.50 1.10 2.50 3.50
Quink Carona Carona Silver Golden Elmer's Blackey Roll-O Mayon
Carona Carona Casio Casio
P
70.00 90.00 8.50 8.50 8.50
1,800.00 2,000.00
UNITS
2,360 3,680 3,450 8,500 9,500
boxes boxes pieces pieces pieces
230 pieces 12,550 10,200 14,400 12,150 3,850 3,800 2,800 1,960 1,540 1,300 600 350 1,900 1,200 300 350 660 360 630 150 3,450 10,600 3,450 0 0
pads pads pads pads pads pads reams reams rolls meters reams bottles pieces pieces boxes boxes bottles boxes boxes pairs pieces pieces pieces pieces pieces
0 pieces 0 pieces
hl-807 Stapler
Casio Max
1,000.00 152.50
0 pieces 5 pieces
F-2.1 TOTAL
P
165,200.00 331,200.00 29,325.00 72,250.00 80,750.00 23,690.00 627,500.00 510,000.00 720,000.00 607,500.00 57,750.00 114,000.00 360,000.00 215,600.00 13,500.00 22,750.00 90,000.00 18,240.00 4,750.00 4,200.00 9,000.00 12,800.00 14,850.00 36,000.00 12,915.00 1,800.00 112,125.00 227,900.00 37,950.00
P
762.50 4,522,787.00
1015 1016 1017 1018 1019 1020 1021 1022 1023 1024 1025 1026 1027 1028 1029 no stock card no stock card no stock card no stock card no stock card no stock card
Cartolina Plastic Cover Art Paper Ink Regular Folder Long Folder Paper Clips Thumbtacks Glue Carbon Paper Typewriter Ribbon Scissors Thick Notebook Thin Notebook Fastener Envelope - short Envelope - long Calculator fx-39 fx-40 hl-807 Stapler
TOTAL Input VAT Total Ending Inventory, net of tax
Quink Carona Carona Silver Golden Elmer's Blackie Roll-O Mayon
F2.1 F2.1 F2.1 F2.1 F2.1 F2.1 F2.1 F2.1 F2.1 F2.1 F2.1 F2.1 F2.1 F2.1 F2.1 F2.1 F2.1 F2.1 F2.1 F2.1 F2.1
We assumed that cost is equal to NRV. LEGEND: ꭖ ꭖ
Footed Extended
V. CONCLUSIONS
PAS 2 Inventories state that measurement of inventories should be at the lower of cost and net realizable The objective to determine whether inventories are properly measured in accordance with PAS have been The inventories are properly valued where we assumed that cost is equal to NRV.
1,540 1,300 600 350 1,900 1,200 300 350 660 360 630 150 3,450 10,600 3,450
F1.6 F1.3 F1.6 F1.3 F1.3 F1.3 F1.6 F1.3 F1.3 F1.3 F1.3 F1.3 F1.3 F1.3
0 0
F1.3 F2.1 F2.1
0 0 0 5
F2.1 F2.1 F2.1 F2.1
8.33 17.50 142.10 57.00 2.50 3.50 35.00 40.00 22.50 100.00 20.50 12.00 32.50 27.50 1.00 2.50 3.50 1,800.00 2,000.00 1,000.00 152.50
12,828.20 22,750.00 85,260.00 19,950.00 4,750.00 4,200.00 10,500.00 14,000.00 14,850.00 36,000.00 12,915.00 1,800.00 112,125.00 291,500.00 3,450.00
8.33 17.50 142.10 57.00 2.50 3.50 35.00 40.00 22.50 100.00 20.50 12.00 32.50 27.50 1.00 2.50 3.50
-
1,800.00 2,000.00 1,000.00 152.50
762.50
### ### ### ### ### ### ### ### ### ### ### ### ### ### ꭃ ### ꭃ ꭃ ꭃ ꭃ ꭃ ꭃ ꭃ ꭃ ꭃ ꭃ ꭃ ꭃ ꭃ ꭃ ꭃ ꭃ ꭃ ꭃ ### ꭃ ꭃ
₱
4,564,721.50 ꭃ
₱
(414,974.68) 4,149,746.82 F-1
t and net realizable value. with PAS have been met.
Prepared by: RIT Reviewed by: BAG
Date: 2/23/2012 Date: 2/28/2012
GRACE CORPORATION Purchase Cut-Off December 31, 2011
I. OBJECTIVE 1
To determine that all transactions relative to purchases have been recorded in the proper accounting period
2
To determine that all recorded transactions relative to purchases exist.
1
Completeness
2
Cut-off
3
Existence
1
Examined all purchase and sales invoices from December 2011 to January 4, 2012.
2
Traced purchases invoices to the purchase book to determine whether the purchase transactions are recorded in the proper accounting
3
Traced sales invoices to the sales book to determine whether the sales transactions are recorded in the proper accounting period.
II. ASSERTIONS
III. PROCEDURES
IV. FINDINGS
SALES TRANSACTIONS
Date
SALES INVOICE
TERMS
1251
2/10. n/30
Eagle Contractors
E-1.3
1252
2/10. n/30
Dynasty Construction
E-1.3
4,625
1253
2/10. n/30
Sampollo Company
E-1.3
58,035
r
1254
2/10. n/30
Benitez Merchandising
E-1.3
711,950
r
E-1.3
309,525
rc
E-1.3
138,285
rc
CLIENT
AMOUNT
2011 Dec 1
₱
246,825
r
rc
3 7 10
1255
15 1256
2/10, n/30
Ida Coronel
17
1257
2/10, n/30
Luli Samson
E-1.3
86,850
23
1258
2/10, n/30
Susan de Leon
E-1.3
204,975
23
1259
Cash
E-1.3
75,085
r
1260
Cash
E-1.3
111,395
r
1261
2/10, n/30
Buillding Blocks, Inc. Buillding Blocks, Inc. Cora Tayag
E-1.3
208,600
r
1262
2/10, n/30
E-1.3
81,275
r
1263
2/10,n/30
Centeno, Antonio & Tantoco
E-1.3
736,000
r
1264
C.O.D
Eagle Contractors
E-1.5
165,550
r
1265
C.O.D
Dynasty Construction
E-1.5
186,250
r
1266
2/10,n/30
Benitez Merchandising
E-1.5
232,000
r
27
Cora Tayag
r
rc
29 30
CUT OFF 2012 Jan
3
1267
C.O.D
1268
2/10,n/30
*
Benitez Merchandising Luli Samson
E-1.5
93,750
r
E-1.5
29,725
r
Adjusting entries already recorded in procedure 1.
PURCHASE TRANSACTIONS
PURCHASE INVOICES
SUPPLIER
DATE
AMOUNT PER INVOICE
101
Arboleda Co., Inc.
12/1/2011
F-1.2
111
Genius Paper Products
12/2/2011
F-1.2
1082
Sapphire Corporation
12/3/2011
F-1.2
127
Genius Paper Products
12/6/2011
F-1.2
107
Arboleda Co., Inc.
12/7/2011
F-1.2
112
Arboleda Co., Inc.
12/9/2011
F-1.2
130
Genius Paper Products
12/10/2011
F-1.2
1090
Sapphire Corporation
12/12/2011
F-1.2
135
Genius Paper Products
12/15/2011
F-1.2
117
Arboleda Co., Inc.
12/16/2011
F-1.2
1095
Sapphire Corporation
12/8/2011
F-1.2
140
Genius Paper Products
12/20/2011
F-1.2
120
Arboleda Co., Inc.
12/21/2011
F-1.2
145
Genius Paper Products
12/22/2011
F-1.2
1099
Sapphire Corporation
12/23/2011
F-1.2
127
Arboleda Co., Inc.
12/24/2011
F-1.2
147
Genius Paper Products
12/15/2011
F-1.2
1100
Sapphire Corporation
12/27/2011
F-1.2
151
Genius Paper Products
12/28/2011
F-1.2
130
Arboleda Co., Inc.
12/29/2011
F-1.2
Genius Paper Products
12/29/2011
F-1.3
7729
825
Arboleda Co., Inc.
12/30/2011
F-1.3
1/3/2011
F-1.3
CUT OFF
Sapphire Corporation
Proposed Adjusting Entries: ₱
Inventory
229,318 22,932
Input Tax
₱
Accounts Payable- Genius Paper Products
252,250
To record purchase on account made on December 29, 2011.
Inventory
141,455
Input Tax
14,145
Accounts Payable- Arboleda Co., Inc. To record purchase on account made on December 30, 2011.
c
Verified computation
r
Vouched with sales invoice
155,600
q
Vouched with purchase invoice
V. CONCLUSIONS
Except for the three unrecorded sales in December (Sales Invoice No. 1264, 1265, and 1266) and two unrecorded purchases (Purchase Invoice 77
month, other sales and purchase transactions are recorded in the proper accounting period. Necessary adjusting entries are proposed by the aud are noted.
ecorded in the proper accounting period.
e proper accounting period.
F-4
PROPERLY RECORDED
REMARKS
YES
No exceptions noted
YES
Total amount of SI should be P4,625 but recorded as 46.25.
YES
No exceptions noted
YES
No exceptions noted
YES
Correct amount is 309, 450 but recorded as 309250. Corrections made in Procedure E-1
YES
Immaterial difference of 10 exists due to a mistake in footing the Sales Invoice. Corrections made in Procedure E-1.
YES
No exceptions noted
YES
Correct amount is 202, 975 but recorded as 204, 475 due to a mistake in footing the Sales Invoice. Corrections made in Procedure E-1.
YES
No exceptions noted
YES
No exceptions noted
YES
No exceptions noted
YES
No exceptions noted
YES
No exceptions noted
NO
Adjusting entries are recommended
* NO
Adjusting entries are recommended
NO
Adjusting entries are recommended
* *
YES
No Exceptions Noted
YES
No Exceptions Noted
AMOUNT PER INVOICE
P R O P E R L Y
R E C Y O ₱ 376,136 E R S Y D 1,295,455 E E Y S D 417,818 E Y S 1,454,545 E S
REMARKS
No Exceptions Noted No Exceptions Noted No Exceptions Noted No Exceptions Noted
31,091 79,545 1,136,364 12,727 12,045 77,273 77,273 116,250 4,545 118,182 11,136 23,409 40,909
Y E Y S E Y S E Y S E Y S E Y S E Y S E Y S E Y S E Y S E Y S E Y S E Y S E S
No Exceptions Noted No Exceptions Noted No Exceptions Noted No Exceptions Noted No Exceptions Noted No Exceptions Noted No Exceptions Noted No Exceptions Noted No Exceptions Noted No Exceptions Noted No Exceptions Noted No Exceptions Noted No Exceptions Noted
Amount in the invoice showed a Ytotal amount of Php 19,125 gross 12,114 Eof input tax but correctly recorded S by the entity at Php 12,114 net of input tax. Y 150,000 E No Exceptions Noted Y S 17,386 E No Exceptions Noted S 229,318NOAdjusting entries recommended
141,455NOAdjusting entries recommended
No Exceptions Noted
ed purchases (Purchase Invoice 7729 and 825) on the same
g entries are proposed by the auditor. No other exceptions
Prepared by:
Date:
LCC
2/1/2012
Reviewed by:
Date:
DBM
2/5/2012
GRACE CORPORATION Analytical Procedures - Inventory December 31, 2011
I. OBJECTIVES 1 2 3
To determine the validity of inventory account balances. To determine significant ratios in the accounts related to inventory transactions. To evaluate fluctuations or unusual changes on the inventory account balances.
1
Accuracy
1
Obtained audited financial information from comparable prior periods and audited balances of accounts related to inventories as of December 31, 2011. Computed significant financial ratios for both prior and current period audited financial information. Compared differences between prior and current period ratios. Evaluated the company's performance based on the financial analysis ratios.
II. ASSERTIONS
III. PROCEDURES
2 3 4
F-5
IV. FINDINGS Grace Corporation Analytical Review Ratios For the Period Ended December 31, 2011 December 31, 2009 700,000 F -
December 31, 2010 December 31, 2011 900,000 F-3 4,149,747 29% 361%
Inventory, End Percent Increase (Decrease)
F
Net Sales Percent Increase (Decrease)
UA
47,916,000 UA
53,439,000 UA 12%
110,957,707 108%
Cost of Sales Percent Increase (Decrease)
VA
29,085,000 VA -
34,785,500 VA 20%
57,050,382 64%
Gross Profit
18,831,000
Inventory Turnover Days in Inventory
Gross Profit Margin
18,653,500
53,907,325
-
21.74
11.30
-
16.79
32.31
39%
35%
49%
It is observed in the ratios displayed above that there is a substantial increase of 361% in the ending balance of inventory which means that the company has invested in more inventories and thus resulting to an increase in net sales of 108%. However, there is a signficant decline in the company's inventory turnover this year which could indicate a decrease in the company's efficiency in inventory management. On the other hand, this could indicate that the company had taken advantage of the prior year's high turnover by investing in more inventories in order to avoid lost orders. It is also observed that there is a significant increase in the number of days the company takes in clearing its inventory. This may be an indication that the company may have invested too much on inventories. But, considering the increase in the company's gross profit margin, we can infer that the increase in inventory levels had not resulted to an unfavorable company performance this year.
III. CONCLUSION The objectives for this procedure were met. Inventory account balances were found to be reasonable based on the evaluation made on the significant financial ratios above. No exceptions noted.
Prepared by: BAG Reviewed by: RIT
Date: 2/21/2012 Date: 2/26/2012
F-5
Date: 2/21/2012 Date: 2/26/2012
Unadjusted balances Adjustments:
TOTAL
ADJUSTED BALANCES Net Sales COS 110,244,403 Debit -1363.6363636364 -300000 -68 9 210909 484000 150500 169318.181818182 ###
-2,328 362,814 43,009
403,495
GRACE CORPORATION Inspection of PPE December 31, 2011
I. OBJECTIVES 1
To determine whether property, plant, and equipment included in
1
Existence
1 2 3 4
Obtained a list of property, plant and equipment that the compan Selected certain property, plant and equipment to inspect Went to the location of the chosen propery, plant and equipment Inspected the selected property, plant and equipment
II. ASSERTIONS
III. PROCEDURES
IV. FINDINGS
Classification
Type
Land
2,000 square meters more or less
Building
2,000 square meters
Furniture & Fixture
Air Conditioning System
Delivery Vans
Isuzu Crewcab
Office Equipment
Olympia Electric Typewriter SN 41226
III. CONCLUSION No exceptions noted.
K-1
ment included in the statement of financial position physically exist
hat the company owns or leases
and equipment
Inspected
Remarks
√
Exists
√
Exists
√
Exists
√
Exists
√
Exists
Prepared by: MGM Reviewed by: JGN
Date: 3/15/2012 Date: 3/17/2012
GRACE CORPORATION Schedule of Plant, Property & Equipme December 31, 2011 Ledger Classification Land
Description A parcel of land, Lot 4, Blk 2 of the consolidation-subdivision plan PCS 12456 situated in Sucat, Municipality of Parañaque, Province of Rizal containing an area of two thousand (2,000) square meters more or less
Building
2,000 sq.m. concrete building
Additional improvements
Furniture & Fixture
80 showcases for the store @ P 5,000 40 office tables & 40 office chairs @ P 24,000 10 conference tables with 80 chairs 30 four-drawer steel cabinets
1 office safe fire proof Hobart
50 venetian blinds FineLine
Air-conditioning System
Delivery
6 Isuzu Crewcab
Vans
Model 1993, Motor #123456 Chassis #821618
Office Equipment
10 Personal Computers Pentium 6 SN 41226
SN 41231
41227
41232
41228
41233
41229
41234
41230
41235
Olympia Electric Typewriter SN 41226 18" Carriage. Model 142C Olympia Electric Typewriter SN 528376 12" Carriage. Model 215 10 Electric Fans SN 15381
SN 15386
15382
15387
15383
15388
15384
15389
15385
15390
«
Footed/Cross-Footed
ß Ώ
Extended Traced to General Ledger
K-1.1
GRACE CORPORATION e of Plant, Property & Equipment December 31, 2011 Reference/ Date CV-11-182
Estimated Life from Acquisition Date
Cost P
16,500,000.00
Ώ
11.02.2010
CV-11-182
33,000,000.00
20 years
11.02.2010 20,000,000.00
CV-1-5 01.05.2011 P
53,000,000.00
Ώ
«
CV-6-2 06.01.2010
400,000.00
ß
40 years
CV-6-3 06.02.2010
480,000.00
ß
5 years
CV-8-10 08.20.2010
600,000.00
CV-7-10 07.10.2010
240,000.00
CV-7-11 07.11.2010
280,000.00
CV-8-13 08.15.2010
320,000.00
1,230,000.00
CV-3-16 08.18-2010
CV-12-20 12.20-2010
P
3,550,000.00
Ώ
P
6,000,000.00
Ώ
« 10 years
CV-8-01 08.01-2010
2,050,000.00
CV-8-02 08.01-2010
25,000.00
10 years
CV-8-03 08.01-2010
25,000.00
10 years
CV-8-03 08.01-2010
30,000.00
5 years
d/Cross-Footed
d to General Ledger
P
2,130,000.00
5 years
Ώ
«
GRACE CORPORATION Vouching of Acquisitions and Disposals December 31, 2011
I. OBJECTIVES 1 2
To determine that all property, plant, and equipment recorded in the To determine that all property, plant, and equipment are reported at
1 2
Existence Valuation
1 2 3
Obtained property, plant, and equipment balances as of January 1, 2 Obtained Schedule of Property, Plant, and Equipment accounts. Verified amounts recorded in general ledger control accounts by exa a. Investigated amounts of items listed in the Schedule of Pro b. Checked footings, cross-footings, and extensions. Noted current year acquisitions and/or additions and disposals.
II. ASSERTIONS
III. PROCEDURES
4
IV. FINDINGS
Balance per Ledger, as of January 1, 2011
PPE Item
Land Building Furnitures & Fixtures Transportation Equipment Office Equipment Total PPE
K-2.1 K-2.1 K-2.1 K-2.1 K-2.1
16,500,000 33,000,000 K-1.1 3,550,000 6,000,000 2,130,000 61,180,000
LEGEND:
2
1 2 3
Vouched to Schedule of PPE
Property, plant, and equipment items are found to be recorded a Additions in building account of P20,000,000 represent additiona There are no further acquisitions and disposals this year.
However, certain items are to be noted. The supporting document gi Furthermore, some items when crossfooted are wrong, but the audit as it was presented in the 2009, 2010 and 2011 balances.
III. CONCLUSION
The existence of all property, plant, and equipment items recorded in the St were properly valued at its cost. No adjustments were made. No exceptions
ipment recorded in the Statement of Financial Position exists. ipment are reported at the appropriate amount.
ances as of January 1, 2011 and as of December 31, 2011 uipment accounts. ontrol accounts by examining Schedule of Property, Plant, and Equipment accounts. d in the Schedule of Property, Plant and Equipment. nd extensions. ns and disposals.
Acquisitions or Additions
20,000,000
Balance per Ledger, as of Dec 2011
Disposals
2
K-1.1 K-1.1 K-1.1 K-1.1 K-1.1
Adjustments Dr.
16,500,000
2
53,000,000
2
3,550,000
2
6,000,000
2
2,130,000
2
81,180,000
Cr.
hedule of PPE
found to be recorded at their historical costs as per Schedule of Property, Plant and Equipment. 000 represent additional improvements made this year and was capitalized. osals this year.
upporting document given indicated the date of the cash voucher and not the acquisition date. re wrong, but the auditors decide that the item description was at fault so the balance remained correct 11 balances.
tems recorded in the Statement of Financial Position were determined. It was also determined that property, plant, and equ e made. No exceptions noted.
K-2
Balance per Audit, as of December 31, 2011 16,500,000 53,000,000 3,550,000 6,000,000 2,130,000 81,180,000
mained correct
ned that property, plant, and equipment items
Prepared by: BAG Reviewed by: JGN
Date: 2/14/2012 Date: 2/16/21012
ACCOUNT
DATE
Land ITEM
F
2011 Nov. 30 Balance
ACCOUNT
DATE
P
DATE
ACCOUNT
DATE
ITEM
F
DATE
DEBIT
P
53,000,000.00
Accumulated Depreciation - Building ITEM
F
DEBIT
Furniture and Fixture ITEM
F
2011 Nov. 30 Balance
ACCOUNT
16,500,000.00
Building
2011 Nov. 30 Balance
ACCOUNT
DEBIT
DEBIT
P
3,550,000.00
Accumulated Depreciation - Furniture and Fixture ITEM
F
DEBIT
ACCOUNT
DATE
Transportation Equipment ITEM
F
2011 Nov. 30 Balance
ACCOUNT
DATE
ACCOUNT
DATE
P
DATE
6,000,000.00
Accumulated Depreciation - Transportation Equipment ITEM
F
DEBIT
F
DEBIT
Office Equipment ITEM
2011 Nov. 30 Balance
ACCOUNT
DEBIT
P
2,130,000.00
Accumulated Depreciation - Office Equipment ITEM
F
DEBIT
K-2.1 ACCOUNT NO.
DATE
ITEM
F
CREDIT
ACCOUNT NO.
DATE
ITEM
F
ITEM
2011 Dec. 31
F
GJ 14
ITEM
P
F
2011 Dec. 31
ITEM
F
GJ 14
650,000.00
203 CREDIT
ACCOUNT NO.
DATE
202-A CREDIT
ACCOUNT NO.
DATE
202 CREDIT
ACCOUNT NO.
DATE
201
203-A CREDIT
P
355,000.00
Balance
355,000.00
ACCOUNT NO.
DATE
ITEM
quipment
F
CREDIT
ACCOUNT NO.
DATE
ITEM
2011 Dec. 31
F
GJ 12
ITEM
P
F
2011 Dec. 31
ITEM
F
GJ 12
1,200,000.00
205 CREDIT
ACCOUNT NO.
DATE
204-A CREDIT
ACCOUNT NO.
DATE
204
205-A CREDIT
P
426,000.00
GRACE CORPORATION Capitalization of Property, Plant and Equipment December 31, 2011
I. OBJECTIVES 1 2
To determine that property, plant and equipment transactions a To determine that capitalizable costs of property, plant and equi
1
Completeness
1 2 3 4
Obtained Schedule of Plant, Property & Equipment Selected sample items of property, plant & equipment for tracin Checked footings and extended the amounts Traced the property, plant & equipment accounts reflected on th
II. ASSERTIONS
III. PROCEDURES
IV. FINDINGS
Ledger Classification Land
Building
Furniture & Fixture
Delivery Vans
Office Equipment
LEGEND:
Ώ ß
After extending the amounts recorded in the Schedule of PPE, we fo its total amount. Due to insufficient supporting documents, we ass
III. CONCLUSION
The 2011 additional improvement in Building is capitalized and is n PPE. Transactions in relation with property, plant and equipement a the Schedule of PPE, the number of items of office tablets and chai are noted.
ORPORATION
operty, Plant and Equipment
e that property, plant and equipment transactions are recorded e that capitalizable costs of property, plant and equipment are included and are not expensed.
hedule of Plant, Property & Equipment mple items of property, plant & equipment for tracing tings and extended the amounts roperty, plant & equipment accounts reflected on the schedule to the General Ledger
Description A parcel of land, Lot 4, Blk 2 of the consolidation-subdivision plan PCS 12456 situated in Sucat, Municipality of Parañaque, Province of Rizal containing an area of two thousand (2,000) square meters more or less
K-1.1
2,000 sq.m. Concrete building
K-1.1
Additional improvements
K-1.1
80 showcases for the store @ P 5,000 40 Office tablets & 40 office chairs @ P24000 1 office safe fire proof Hobart
K-1.1 K-1.1 K-1.1
Air conditioning System
K-1.1
Isuzu Crewcab Model 1993, Motor #123456 Chassis #821618
K-1.1
10 Personal Computers Pentium 6 SN 41226 41227 41228 41229 41230
K-1.1 SN 41231 41232 41233 41234 41235 K-1.1
10 Electric Fans SN 15381 15382 15383 15384 15385
SN 15386 15387 15388 15389 15390
Traced to General Ledger Extended
amounts recorded in the Schedule of PPE, we found out that the 40 office tablets and 40 office chairs does not c ue to insufficient supporting documents, we assumed that the amount recorded in the schedule is correct.
improvement in Building is capitalized and is not expensed. No repair and maintenance expense and leases as relation with property, plant and equipement are also recorded in the general ledger. Upon applying the audit p , the number of items of office tablets and chairs does not correspond with its total amount. Other than that, n
K-3
₱
Cost 16,500,000.00
Ώ
₱
33,000,000.00
Ώ
₱
20,000,000.00
Ώ
₱ ₱ ₱
400,000.00 480,000.00 280,000.00
ß ß
Ώ Ώ Ώ
₱
1,230,000.00
Ώ
₱
60,000,000.00
Ώ
₱
2,050,000.00
Ώ
₱
30,000.00
Ώ
ts and 40 office chairs does not correspond to in the schedule is correct.
ntenance expense and leases associated with edger. Upon applying the audit procedure in otal amount. Other than that, no exceptions
Prepared by: RIT Reviewed by: LCC
Date: 4/1/2012 Date: 4/5/2012
GRACE CORPORATION Property, Plant and Equipment Review December 31, 2011
I. OBJECTIVES 1 2
To determine the legal ownership of property, plant and equipment. To determine that property, plant and equipment were properly reco
1 2
Presentation and Disclosure Rights and Obligation
II. ASSERTIONS
III. PROCEDURES 1 2 3 4
Obtained Schedule of Plant, Property & Equipment Obtained copy of contracts, agreement, loans and the like relating t Reviewed the loan agreement on property and equipment. Examined evidence of legal ownership of property and equipment.
IV. FINDINGS
Ledger Classification Land
Description A parcel of land, Lot 4, Blk 2 of the consolidation-subdivision plan PCS 12456 situated in Sucat, Municipality of Parañaque, Province of Rizal containing an area of two thousand (2,000) square meters more or less
Building
2,000 sq.m. Concrete building Additional improvements
Furniture & Fixture
80 showcases for the store @ P 5,000 40 Office tablets & 40 office chairs @ P24000 10 conference tablets with 80 chairs 30 four-drawer steel cabinets 1 office safe fire proof Hobart 50 venetian blinds FineLine Air conditioning System
Delivery Vans
Isuzu Crewcab Model 1993, Motor #123456 Chassis #821618
Office Equipment
10 Personal Computers Pentium 6 Olympia Electric Typewriter 18" Carriage. Model 142C Olympia Electric Typewriter 12" Carriage. Model 215 10 Electric Fans
After reviewing the contracts, agreements and loans recorded in connection with PPE, w was Land. No reclassification of the account is needed but the disclosure of the fact is n
III. CONCLUSION
No exceptions noted. Sufficient and appropriate evidence were gathered to su
K-4
plant and equipment. ent were properly recorded and disclosed.
and the like relating to PPE. d equipment. perty and equipment.
ription
k 2 of the consoli-
Cost
Pledged as Collateral, Lien, Endorsed, Etc.
16,500,000.00 C-3.1
Yes
33,000,000.00
No
20,000,000.00
No
CS 12456 situated arañaque, Province a of two thousand
e @ P 5,000
400,000.00
No
ce chairs @ P24000
480,000.00
No
600,000.00
No
240,000.00
No
280,000.00
No
320,000.00
No
1,230,000.00
No
60,000,000.00
No
2,050,000.00 25,000.00
No
25,000.00
No
30,000.00
No
No
connection with PPE, we found out that the only property being pledged as collaterral for a bank loan closure of the fact is needed.
ce were gathered to support the assertions made.
Prepared by: MZB Reviewed by: LCC
Date: 4/1/2012 Date: 4/5/2012
1. We hereby report that at the close of business on
DECEMBER 31, 2011 our records showed the following balances to the
CREDIT
of the abovementioned client: AMOUNT
DESCRIPTION
ACCOUNT NUMBER
14,267,272 Regular Checking Acct.
INTERES RATE (P.A.)
775
Regular Checking Acct. Savings Acct. 6,500,000 Time Deposits
18%
2. Direct liabilities, assets and related balances of said clients as at the date above mentioned date were as follows: (attached details by LC) AMOUNT
ACCOUNT
PESO
FOREIGN CURRENCY
Acceptance Drafts Trust Receipts Marginal Deposits Special Time Deposits Import Letters of Credit Domestic Letters of Credit
3. We further report that the acove-mentioned client was directly liable to us by way of overdrafts, loans, etc. at the close of business on that d AMOUNT
DESCRIPTION OF LIABILITY
DATE GRANTED
10,000,000 Loans
DUE DATE
2011
2005
12.28
12.28
Other (Specify) 4. Other direct and/or contingent liabilities were: AMOUNT
DECRIPTION OF ACCOUNT
NAME OF MAKER
Except as stated above, according to our records, said client had no other account with us at the above-mentioned date. Date filled in:
Jan. 2, 2005
C-3.1 Grace Corporation
Re:
balances to the
CREDIT INTEREST
RATE (P.A.)
PAID UP TO
18%
maturity
RESTRICTION ON WITHDRAWAL OF AMOUNT AND OTHER REMARKS
1 year% Due Date: June 30, 2005
5. Other accounts with the bank on that date were: (details attached)*
a) b) c) d)
Securities held for safekeeping Items held for collection Trust accounts Others (specify)
he close of business on that date as follows: INTEREST RATE (P.A.)
PAID UP TO
21%
12.28
DESCRIPTION OF COLLATERALS, LIENS, ENDORSERS, ETC. OTHER REMARKS
2005
NAME OF MAKER
Land
K-4
DUE DATE
DATE OF NOTE
REMARKS
ve-mentioned date. Yours Truly, Bank: By:
PCIB
Jbiao Comptroller
GRACE CORPORATION Recomputation of Depreciation Expense December 31, 2011
I. OBJECTIVES 1 2
To ascertain that depreciation was properly computed. To ascertain that the depreciation expense and accumulated deprec
1 2
Valuation Presentation and Disclosure
1 2 3 4 5
Obtained a copy of supporting documents for each item PPE. Examined the terms in the supporting documents (acquisition date) Determined the companies policy in depreciation their Property, Pla Checked if the accumulated depreciation and depreciation expanes Determined appropriate adjustments.
II. ASSERTIONS
III. PROCEDURES
IV. FINDINGS
For the purpose of computing depreciation and due to the lack sufficient supporting docu 1 Because there is no known acquisition date, the auditors assumed all PPEs 2 For the furniture and fixtures with no given useful life, the auditors assume 3 Straight-line method on depreciation was used for the recomputation. Land YEARLY DEPRECIATION Acquisition Cost: Average Useful life per class Yearly Depreciation Additions/capitalized Improvements (2022) Useful life Depreciation of additions Depreciation Expense, 2011 2009 Depreciation (8 months) 2010 Depreciation
K-1.1
16,500,000.00 -
Accumulated Depreciation (1/11)
-
COST January 1, 2011 Additions: Disposals
K-1.1
December 31,2011
16,500,000.00 16,500,000.00
ACCUMULATED DEPRECIATION January 1, 2011 Current Year Depreciation December 31, 2011 Net Book Value, December 31, 2011
16,500,000.00
ADJUSTMENTS 2009 Per book Per auditors' recomputation Adjustments
-
2010 Per book Per auditors' computation Adjustments
-
2011 Per book Per auditors' computation Adjustments
-
The adjustments marked red will not be readjusted because the auditors' deemed this am PROPOSED JOURNAL ENTRIES For 2009-related adjustments: Retained Earnings Accumulated Depreciation - Building Retained Earnings Accumulated Depreciation - Furniture and Fixture Retained Earnings Accumulated Depreciation - Transportation Equipment Retained Earnings Accumulated Depreciation - Office Equipment
Because these are prior-year adjustments, retained earnings account was u
For 2010-related adjustments: Retained Earnings Accumulated Depreciation - Building Retained Earnings Accumulated Depreciation - Furniture and Fixture Retained Earnings Accumulated Depreciation - Transportation Equipment Retained Earnings Accumulated Depreciation - Office Equipment
Because these are prior-year adjustments, retained earnings account was u For 2011-related adjustments: Depreciation Expense - Building Accumulated Depreciation - Building
Accumulated Depreciation - Transportation Equipment Depreciation Expense - Transporation Equipment Depreciation expense was credited instead because the recorded d was more than the recomputed depreciation.
LEGEND: ɸ Footed € Cross-Footed µ Computed from supporting documents ɨ From computed adjustments
III. CONCLUSION
The auditors have discovered that Grace Corporation did not recognize dep between the recorded expense and the recomputed expense during the ye
accumulated depreciation were properly presented in the Financial Statements.
ach item PPE. ts (acquisition date). on their Property, Plant and Equipments epreciation expanese for the year coincides
ent supporting documents, the following assumptions were made. rs assumed all PPEs were acquired at the date of incorporation (April 30, 2011). he auditors assumed it to be 10 years. ecomputation. Building
K-1.1
K-1.1
33,000,000.00 K-1.1 20 µ 1,650,000.00 ɸ 20,000,000.00 18 µ 1,111,111.11 ɸ 2,761,111.11 ɸ 1,100,000.00 1,650,000.00
Furniture and Fixtures
3,550,000.00 K-1.1 10 µ 373,000.00 ɸ ɸ 373,000.00 ɸ 248,666.67 373,000.00
Transportation Equipment 6,000,000.00 K-1.1 10 µ 600,000.00 ɸ ### ### ɸ 600,000.00 ɸ 400,000.00 600,000.00
2,750,000.00
ɸ
621,666.67
ɸ
1,000,000.00
ɸ
K-1.1 K-1.1 ɸ
ɸ
33,000,000.00 K-1.1 20,000,000.00 53,000,000.00 ɸ
2,750,000.00 2,761,111.11 5,511,111.11 47,488,888.89
1,100,000.00 1,100,000.00
1,650,000.00 1,650,000.00
650,000.00 2,761,111.11 2,111,111.11
3,550,000.00 K-1.1 3,550,000.00 ɸ
ɸ
621,666.67 373,000.00 994,666.67
ɸ
2,555,333.33
ɸ
248,666.67 248,666.67
ɸ
373,000.00 373,000.00
ɸ
6,000,000.00 K-1.1 ### ### 6,000,000.00 ɸ
ɸ
1,000,000.00 600,000.00 1,600,000.00
ɸ
ɸ
4,400,000.00
ɸ
ɸ
### 400,000.00 400,000.00
ɸ
ɸ
### 600,000.00 600,000.00
ɸ
355,000.00 373,000.00 18,000.00
ɸ
1,200,000.00 600,000.00 (600,000.00)
ɸ
1,100,000.00
ɨ 1,100,000.00
ɨ
248,666.67
ɨ
400,000.00
ɨ
280,666.67
ɨ
tors' deemed this amounts to be immaterial.
248,666.67
400,000.00
280,666.67
nings account was used instead of the corresponding depreciation expense.
ɨ
ɨ
ɨ
1,650,000.00
373,000.00
600,000.00
421,000.00
ɨ 1,650,000.00
ɨ
373,000.00
ɨ
600,000.00
ɨ
421,000.00
ɨ
2,111,111.11
ɨ
600,000.00
ɨ
ɨ
ɨ
ɨ
nings account was used instead of the corresponding depreciation expense.
2,111,111.11
600,000.00
ɨ
ɨ
ause the recorded depreciation
d not recognize depreciation in the previous year 2009 and 2010, and that there are material differences pense during the year 2011. Adjustments for the said differences were proposed.
K-5
Office Equipment
2,130,000.00 K-1.1 5 µ 421,000.00 ɸ ɸ 421,000.00 ɸ 280,666.67 421,000.00
Total
61,180,000.00 45 3,044,000.00 20,000,000.00 18.00 1,111,111.11 4,155,111.11 2,029,333.33 3,044,000.00
€ ɸ
ɸ ɸ
€ € € € € € € €
701,666.67
ɸ
5,073,333.33
ɸ
€
2,130,000.00 K-1.1 - K-1.1 2,130,000.00 ɸ
701,666.67 421,000.00 1,122,666.67 1,007,333.33
280,666.67 280,666.67
421,000.00 421,000.00
426,000.00 421,000.00 (5,000.00)
61,180,000.00 20,000,000.00 81,180,000.00
ɸ
€ € € €
ɸ
5,073,333.33 3,044,000.00 8,117,333.33
ɸ
ɸ
73,062,666.67
ɸ
€ € € €
ɸ
2,029,333.33 2,029,333.33
ɸ
€ €
ɸ
### 3,044,000.00 3,044,000.00 ɸ
€ €
ɸ
2,631,000.00 4,155,111.11 1,524,111.11
€ € €
ɸ
Prepared by: ILW Reviewed by: LCC
Date: 1/25/2012 Date: 2/10/2012
GRACE CORPORATION Analytical Procedures - Property, Plant, & Equipment December 31, 2011
I. OBJECTIVES 1 2
To determine the validity and accuracy of property, plant and equipment account balances. To evaluate fluctuations or unusual changes on the property, plant and equipments and their related depreciation account balances.
1 2
Accuracy Valuation
1
Obtained audited financial information from comparable prior periods and audited balances of accounts related to property, plant, & equipment as of December 31, 2011. Compared differences between prior and current period ratios.
II. ASSERTIONS
III. PROCEDURES
2
IV. FINDINGS . Grace Corporation Analytical Review Ratios For the Period Ended December 31, 2011 2009 NET CARRYING BALANCES Land
K-5
16,500,000.00
2010
K-5
16,500,000.00
K-5
Building Furniture and Fixtures Transportation Equipment Office Equipment TOTAL NET PROPERTY, PLANT & EQUIPMENT Total Net Property, Plant & Equipment Variance Annual Depreciation Expense Variance
l l l l w
31,900,000.00 3,301,333.33 5,600,000.00 1,849,333.33 59,150,666.66
l l l l w
30,250,000.00 2,928,333.33 5,000,000.00 1,428,333.33 56,106,666.66 -5% 50%
l l l l w
BUILDING Carrying Amount, Beginning Capitalized Improvement Depreciation Carrying Amount, Ending FURNITURE AND FIXTURES Carrying Amount, Beginning Depreciation Carrying Amount, Ending TRANSPORTATION EQUIPMENT Carrying Amount, Beginning Depreciation Carrying Amount, Ending OFFICE EQUIPMENT Carrying Amount, Beginning Depreciation Carrying Amount, Ending
RATIO ANALYSIS Depreciation Expense as Percentage of PPE Total Annual Depreciation Expense Total Net Property, Plant & Equipment RATIO Property, Plant & Equipment Turnover Sales Total Net Property, Plant & Equipment RATIO
K-5 K-5 w
K-5
33,000,000.00 (1,100,000.00) 31,900,000.00
3,550,000.00 (248,666.67)
w
K-5 w
w
K-5
31,900,000.00 (1,650,000.00) 30,250,000.00
3,301,333.33 (373,000.00)
w
K-5 K-5 w
w
K-5
w
3,301,333.33
w
2,928,333.33
w
K-5 K-5
6,000,000.00 (400,000.00)
w
5,600,000.00 (600,000.00)
w
w
K-5 K-5 w
K-5
K-5
5,600,000.00
w
5,000,000.00
w
2,130,000.00 (280,666.67)
w
1,849,333.33 (421,000.00)
w
1,849,333.33
K-5 w
1,428,333.33
K-5 w
w w
2,029,333 59,150,667 3%
w w
3,044,000 56,106,667 5%
w w
p w
48,766,000 59,150,666.66 0.82
p w
54,539,000 56,106,667 0.97
F-5 w
It is observed that the total net PPE variance has significantly increased by 35% in 2011 due to the major improvement made with the building during 2011. Also, significant variance in annual depreciation expense was due to the different time apportionment of the annual depreciation expense in 2009.
LEGEND: l Recomputed w Footed p Verified with prior year's trial balance
III. CONCLUSION
The objectives for this procedure were met. The Property, Plant & Equipment account balances and the annual depreciation expense were found to be reasonable evaluation.
K-6
2011 16,500,000.00
47,488,888.89 2,555,333.33 4,400,000.00 1,007,333.33 71,951,555.55 28% 36.5017%
30,250,000.00 20,000,000.00 (2,761,111.11) 47,488,888.89
2,928,333.33 (373,000.00) 2,555,333.33
5,000,000.00 (600,000.00) 4,400,000.00
1,428,333.33 (421,000.00) 1,007,333.33
4,155,111 71,951,556 6%
110,927,707 71,951,556 1.54
uilding during 2011. Also, the 2009.
re found to be reasonable based on the
Prepared by: DAM Reviewed by: RIT
Date: 2/21/2012 Date: 2/26/2012
GRACE CORPORATION Accounts Payable General and Subsidiary Ledger Reconciliation December 31, 2011
I. OBJECTIVES 1 2 3 4 5
To To To To To
substantiate the existence of recorded accounts payable and the occurrence of purchase transactions establish the completeness of accounts payable and purchase transactions determine the appropriate valuation of accounts payable determine if the presentation and disclosure of accounts payable and purchases are appropriate determine that the client has obligations to pay the recorded accounts payable
1 2 3 4 5
Existence Completeness Accuracy Presentation and Disclosure Rights and Obligation
II. ASSERTIONS
III. PROCEDURES 1 2 3 4 5 6 7
Obtained from the client the listing of accounts payable Reconciled accounts payable beginning balance in subsidiary ledger with general ledger Tested cross footing and footings of purchase invoices Traced purchase invoices to subsidiary ledger and purchase book Traced cash vouchers to the subsidiary ledger and cash disbursement book Reconciled balance in subsidiary ledger to the accounts payable confirmation Reconciled subsidiary ledger to the general ledger
IV. FINDINGS
WP Ref Beginning Balance Total Credits Purchases
General Ledger Unadjusted Balances 12/31/11
N-1.1 F-1.2
Adjusted Balances
6,743,240
N-1.1 N-1.3
6,010,625
6,010,625 N-1.1 F-4
Unrecorded Purchases Total Debits C-2.2 Cash Disbursements N-1.4 Reclassification to Note Payable
(1,906,500) N-1.1
N-1.4
(1,600,000) N-1.1
(4,123,275)
Ending Balance
(7,629,775) 5,124,090
Total Difference Unrecorded Purchases Less: Cash Purchases included in credit to GL Cash Voucher 107 112 1090 135 120 147 1100
F-4 F-4
252,250 155,600
F-1.2 F-1.2 F-1.2 F-1.2 F-1.2 F-1.2
34,200 87,500 14,000 13,250 5,000 45,000
F-1.2
13,325
12/31/11
«
6,743,240
5,798,350 407,850 N-1.3 «N-1.3
C-2.2 N-1.4
(1,906,500) N-1.1
N-1.4
« -1.3 (1,600,000) N-1.1 N
###
(4,123,275)
«
(7,629,775) 5,319,665
407,850
212,275
«
«
Effect LEGEND:
«
Footed/Cross-Footed
ADJUSTING JOURNAL ENTRIES
a.
Adjusting entries of two unrecorded purchases of P252,250 and P155,600 already made in F-4 Purchase Cut Off
Additionally, the following errors were noted: 1. The General Ledger November 30 balance does not equal the total Subsidiary Ledger November 30 balances. A difference of P1,181,770 exists. *The auditors deemed it appropriate to follow the General Ledger balance. 2. Cash Voucher 306 of P1,554,500 was erroneously recorded as P155,450 in the subsidiary ledger. 3. Purchase Invoice 147 was recorded as a credit purchase in the subsidiary ledger when in fact it is a cash purchase. 4. Cash purchases were included as credit purchases in the Accounts Payable General Ledger.
III. CONCLUSION
Adjusting entries of the unrecorded purchases for December are already proposed in F-4 Inventory Purchase Cut Off. The difference of P1,181,770 between the General Ledger and Subsidiary Ledger beginning balances can be an overstatement of the GL beginning balance or an understatement of the SL beginning balance but such cannot be determined with certainty because only December supporting documents are available to the auditors. The slide error of the recording of CV 306 was committed only in the subsidiary ledger. It was properly recorded as P1,554,500 in the Cash Disbursements Book and the General Ledger. The recording of the cash purchase of P45,000 in the SL and all the other cash purchases of P212, 275 included as credit to the GL should be removed in the Accounts Payable Ledgers. No exceptions noted in the other payables: SSS, Medicare Premiums Payable, Withholding Taxes Payable and HDMF Premiums Payable.
The account of Gwendo Reyes has a credit balance of P50,000. The entry for Advances from Customers is already proposed in E-1 AR General and Subsidiary Ledg Reconciliation.
Prepared by: MGR Reviewed by:
LCC
N-1
Difference -
###
195,575 195,575
195,575
-
ts.
ing balance or an vailable to the ash Disbursements credit to the GL
and Subsidiary Ledger
Date: 2/19/2012 Date:
2/23/2012
ACCOUNT
DATE
2011 Dec. 1 6 31
Accounts Payable ITEM
ACCOUNT NO.
F
GJ 11 GJ 11 GJ 11
DEBIT
P
1,906,500.00 1,600,000.00 4,123,275.00
DATE
2011 Nov. 30 Dec. 31
ITEM
Balance
Footed/Cross-Footed
CREDIT
P PJ 12
Balance
«
F
N-1.1 1001 CREDIT
6,743,240.00 6,010,625.00 5,124,090.00
«
ACCOUNTS PAYABLE SUBSIDIARY LEDGERS Arboleda Co., Inc. 456 Quezon Boulevard Extension, Quezon City
NAME: ADDRESS:
DATE
PARTICULARS
DEBIT
2011 Nov. 30 Balance Dec. 1 PI 101 CV 304 CV 306 PI 117 CV 311 PI 127 CV 316
175,000.00 155,450.00 85,000.00 25,750.00
PI 130
Sapphire Corporation 85 Quarry Avenue, Parañaque City
NAME: ADDRESS:
DATE
PARTICULARS
DEBIT
2011 Nov. 30 Balance Dec. 3 PI 1082 5 CV 301 10 CV 305 18 PI 1095 23 PI 1099
972,750.00 114,900.00
28 CV 318
85,000.00
Genius Paper Products 951 Del Sol Avenue, Pasay City
NAME: ADDRESS:
DATE
PARTICULARS
2011 Nov. 30 Balance Dec. 1 converted to 90-day
DEBIT
1,906,500.00
2 PI 111 2 CV 300 6 PI 127 6 converted to 27% 150 10 PI 130 15 CV 309 20 PI 140 22 PI 145 26 PI 147 26 CV 313 26 CV 314 26 CV 315
300,000.00 1,600,000.00 625,000.00
32,500.00 127,875.00 25,000.00
28 PI 151
«
Footed/Cross-Footed
N-1.2
UBSIDIARY LEDGERS ACCOUNT NO.:
1001
CREDIT
BALANCE
Quezon City
413,750.00
85,000.00 25,750.00 19,125.00
1,554,500.00 1,968,250.00 1,793,250.00 1,637,800.00 1,722,800.00 1,637,800.00 1,663,550.00 1,637,800.00 1,656,925.00
ACCOUNT NO.:
1002
CREDIT
BALANCE
«
y
459,600.00
85,000.00 12,250.00
2,100,470.00 2,560,070.00 1,587,320.00 1,472,420.00 1,557,420.00 1,569,670.00 1,484,670.00
ACCOUNT NO.:
1003
CREDIT
BALANCE
1,906,500.00 --
«
s-Footed
1,425,000.00 1,600,000.00 1,200,000.00 127,870.00 130,000.00 45,000.00
165,000.00
1,425,000.00 1,125,000.00 2,725,000.00 1,125,000.00 2,325,000.00 1,700,000.00 1,827,870.00 1,957,870.00 2,002,870.00 1,970,370.00 1,842,495.00 1,817,495.00 1,982,495.00
«
BEGINNING PURCHASE BOOK
CASH 1 2 3 6 7 8 9 10 12 15 15 16 20 21 22 23 24 27 28 29
101 111 1082 127 107 1095 112 130 1090 135 147 117 140 120 145 1099 127 1100 151 130
AP 413,750.00 1,425,000.00 459600 1,600,000.00
34,200.00 85,000.00 87,500.00 1,250,000.00 14,000.00 13,250.00 45,000.00 85,000.00 127,875.00 5,000.00 130,000.00 12,250.00 25,750.00 13,325.00 165,000.00 19,125.00 212,275.00
PURCHASE INVOICES 29 30
7729 825
5,798,350.00 252,250.00 155,600.00
212,275.00
6,206,200.00
DISBURSEMENTS
Non-AP 2 5 7 9 10
12 14 15 20 21 26
27 28
300 301 302 303 304 305 306 307 308 309 310 311 312 313 314 315 316 317 318 319
AP 300000 972750
34200 87500 175000 114900 1554500 14000 1080000 625000 13250 85000 5000 32500 127875 25000 25750 13325 85000 942840
«
Footed/Cross-Footed
BEGINNING CREDITS
Arboleda 1,554,500.00
Sapphire 2,100,470.00
413,750.00 459,600.00
85,000.00
85,000.00
12,250.00 25,750.00
19,125.00
«
543,625.00
556,850.00
155,600.00
«
TOTAL CREDITS
699,225.00
556,850.00
oss-Footed
DEBITS 972,750.00
175,000.00 114,900.00 1,554,500.00
85,000.00
25,750.00 85,000.00
to Note Payable to Note Payable
1,840,250.00 -
1,172,650.00 -
TOTAL DEBITS
1,840,250.00
1,172,650.00
AP AUDITED
413,475.00
1,484,670.00
N-1.3 Genius Paper Products 1,906,500.00
5,561,470.00
1,425,000.00 1,600,000.00
1,250,000.00
127,875.00 130,000.00
165,000.00 4,697,875.00
«
5,798,350.00 N-1
«
6,206,200.00 N-1
252,250.00 4,950,125.00
300,000.00
625,000.00
32,500.00 127,875.00 25,000.00
1,110,375.00 1,906,500.00 1,600,000.00
«
4,123,275.00
4,616,875.00
« «
7,629,775.00 N-1
2,239,750.00
4,137,895.00
PURCHASE BOOK DATE
PURCHASED FROM
2011 Dec. 1 Arboleda Co., Inc. 2 Genius Paper Products 3 Sapphire Corporation 6 Genius Paper Products 7 Arboleda Co., Inc. 9 Arboleda Co., Inc. 10 Genius Paper Products 12 Sapphire Corporation 15 Genius Paper Products 16 Arboleda Co., Inc. 18 Sapphire Corporation 20 Genius Paper Products 21 Arboleda Co., Inc. 22 Genius Paper Products 23 Sapphire Corporation 24 Arboleda Co., Inc. 26 Genius Paper Products 27 Sapphire Corporation 28 Genius Paper Products 29 Arboleda Co., Inc.
F
ACCOUNTS PAYABLE
TERMS
INV. NO.
2/10, n/30 P 300,000 down. bal. 2/10, n/45 2/10, n/30 27% - 150 day note n/30 n/30 2/10, n/45 n/30 n/30 2/10, n/45 n/30 2/10, n/45 n/30 1/10, n/30 n/15 1/10, n/20 P 2,500 down, bal. n/15 n/30 2/10, n/30 1/10, n/15
101
413,750.00
111 1082 127 107 112 130 1090 135 117 1095 140 120 145 1099 127 147 1100 151 130
1,425,000.00 459,600.00 1,600,000.00 34,200.00 87,500.00 1,250,000.00 14,000.00 13,250.00 85,000.00 85,000.00 127,875.00 5,000.00 130,000.00 12,250.00 25,750.00 45,000.00 13,325.00 165,000.00 19,125.00 6,010,625.00 (1001)
CR.
N-1 N-1 N-1 N-1
N-1
N-1 N-1
MERCHANDISE INVENTORY
DR.
INPUT TAX DR.
376,136.00 1,295,455.00 417,818.00 1,454,545.00 31,091.00 79,545.00 1,136,364.00 12,727.00 12,045.00 77,273.00 77,273.00 116,250.00 4,545.00 118,182.00 11,136.00 23,409.00 40,909.00 12,114.00 150,000.00 17,386.00
37,614.00 129,545.00 41,782.00 145,455.00 3,109.00 7,955.00 113,636.00 1,273.00 1,205.00 7,727.00 7,727.00 11,625.00 455.00 11,818.00 1,114.00 2,341.00 4,091.00 1,211.00 15,000.00 1,739.00
5,464,203.00 (106)
546,422.00 (111)
F-1.2 Adjustments
0.09090909 0.09090909 0.09090909 0.09090909 0.09090909 0.09090909 0.09090909 0.09090909 0.09090909 0.09090909 0.09090909 0.09090909 0.09090909 0.09090909 0.09090909 0.09090909 0.09090909 0.09090909 0.09090909 0.09090909 0.09090909
37,614 129,545 41,782 145,455 3,109 7,955 113,636 1,273 1,205 7,727 7,727 11,625 455 11,818 1,114 2,341 4,091 1,211 15,000 1,739
0.09090909
546,420
GENIUS PAPER PRODUCTS 951 Del Sol Avenue, Pasay City | VAT 2011-005-219 | TIN 4004-0070356 CHARGED TO:
GRACE CORPORATION
ADDRESS:
12 Ninoy Aquino Avenue, Paranaque City
TERMS:
bal 2/10, n/45
DATE:
PARTICULARS
15,000 pads 16 column worksheet - Vernal
UNIT PRICE
P
13,500 pads 14 column worksheet - Vernal
50.00 50.00
VAT INCLUDED
Received the above products in good order and condition. BY: RES. CERTIFICATE NO.:
arboleda company, inc. 456 Quezon Boulevard Extension, Quezon City | VAT 2011-013-357 | TIN 4004-099-951 CHARGED TO: ADDRESS:
GRACE CORPORATION 12 Ninoy Aquino Avenue, Paranaque City DETAILS
5,000 boxes Pencil Plain - Mongol 7,500 pieces Bic Ballpen - Red VAT INCLUDED
UNIT PRICE
P
70.00 8.50
Received the above products in good order and condition. BY:
RES. CERTIFICATE NO.:
Sapphire Corporation 82 Quarry Avenue, Pananaque City | VAT 2011-053-852 | TIN 4004-064-456
GRACE CORPORATION 12 Ninoy Aquino Avenue, Paranaque City
CHARGED TO: ADDRESS:
PARTICULARS
UNIT PRICE
5,000 boxes Charcoal Pencil - Staedler 800 pairs Scissors
P
90.00 12.00
VAT INCLUDED
Received the above products in good order and condition. BY:
RES. CERTIFICATE NO.:
GENIUS PAPER PRODUCTS 951 Del Sol Avenue, Pasay City | VAT 2011-005-219 | TIN 4004-0070356 CHARGED TO:
GRACE CORPORATION
ADDRESS:
12 Ninoy Aquino Avenue, Paranaque City
TERMS:
99.150 day note
DATE:
PARTICULARS
17,000 pads 12 column worksheet - Vernal 15,000 pads 10 column worksheet - Vernal VAT INCLUDED
UNIT PRICE
P
50.00 50.00
Received the above products in good order and condition. BY: RES. CERTIFICATE NO.:
GENIUS PAPER PRODUCTS 951 Del Sol Avenue, Pasay City | VAT 2011-005-219 | TIN 4004-0070356 CHARGED TO:
GRACE CORPORATION
ADDRESS:
12 Ninoy Aquino Avenue, Paranaque City
TERMS:
2/10, n/45
DATE:
PARTICULARS
7,500 pads Intermediate Pad - Old Mill 8,500 pads Yellow paper - Old Mill 4,250 reams Bond Paper - Whitey
UNIT PRICE
P
3,000 reams Onion Skin - Milky
15.00 30.00 130.00 110.00
VAT INCLUDED
Received the above products in good order and condition. BY: RES. CERTIFICATE NO.:
Sapphire Corporation 82 Quarry Avenue, Pananaque City | VAT 2011-053-852 | TIN 4004-064-456 CHARGED TO: ADDRESS:
GRACE CORPORATION 12 Ninoy Aquino Avenue, Paranaque City PARTICULARS
350 boxes Thumbtacks - Golden VAT INCLUDED
UNIT PRICE
P
40.00
Received the above products in good order and condition. BY:
RES. CERTIFICATE NO.:
arboleda company, inc. 456 Quezon Boulevard Extension, Quezon City | VAT 2011-013-357 | TIN 4004-099-951 CHARGED TO: ADDRESS:
GRACE CORPORATION 12 Ninoy Aquino Avenue, Paranaque City DETAILS
UNIT PRICE
600 bottles Quink Ink
P
57.00
VAT INCLUDED
Received the above products in good order and condition. BY:
RES. CERTIFICATE NO.:
arboleda company, inc. 456 Quezon Boulevard Extension, Quezon City | VAT 2011-013-357 | TIN 4004-099-951 CHARGED TO: ADDRESS:
GRACE CORPORATION 12 Ninoy Aquino Avenue, Paranaque City DETAILS
5,000 meters Plastic Cover VAT INCLUDED
UNIT PRICE
P
17.50
Received the above products in good order and condition. BY:
RES. CERTIFICATE NO.:
F-1.3
S
P
No. 111
2 December 2011 UNIT PRICE
50.00
AMOUNT
P
50.00
750,000.00 675,000.00
P
1,425,000.00
ISSUED AT:
No. DATE:
101
1 December 2011
ORDER NO.: UNIT PRICE
70.00
AMOUNT
P
8.50
350,000.00 63,750.00
P
413,750.00
ISSUED AT:
No. DATE:
1082
Dec. 3, 2011
ORDER NO.: UNIT PRICE
AMOUNT
90.00 12.00
P
450,000.00 9,600.00
P
459,600.00
ISSUED AT:
S
P
No. 127
6 December 2011 UNIT PRICE
50.00
AMOUNT
P
50.00
850,000.00 750,000.00
P
1,600,000.00
ISSUED AT:
S
P
No. 130
10 December 2011 UNIT PRICE
15.00 30.00 130.00
AMOUNT
P
110.00
112,500.00 255,000.00 552,500.00 330,000.00
P
1,250,000.00
ISSUED AT:
1090
No. DATE:
Dec. 12, 2011
ORDER NO.: UNIT PRICE
40.00
AMOUNT
P
14,000.00
P
14,000.00
ISSUED AT:
No. DATE:
107
7 December 2011
ORDER NO.: UNIT PRICE
57.00
AMOUNT
P
34,200.00
P
34,200.00
ISSUED AT:
No. DATE:
112
9 December 2011
ORDER NO.: UNIT PRICE
17.50
AMOUNT
P
87,500.00
P
87,500.00
ISSUED AT:
CASH DISBURSEMENTS BOOK DATE
PAID TO
EXPLANATION
CV#
CHECK NO.
Dec. 2 Genius Paper Products
BANK CR.
PURCH. DISC. CR.
2011 Downpayment, 2/10, n/45
300
12345
5 Sapphire Corp.
Partial payment
301
12346
972,750.00
7 Bureau of Internal Revenue
Remittance for November
302
12347
34,200.00
9 Social Security System
Remittance for November
303
12348
87,500.00
10 Arboleda Co., Inc.
Partial payment
304
12349
175,000.00
Sapphire Corp.
Partial payment
305
12350
114,900.00
Arboleda Co., Inc.
Full payment
306
12351
1,554,500.00
12 Caltex Gas
25 liters gasoline
307
12352
14,000.00
14 Paymaster
Salaries 12.01-12.15
308
12353
1,080,000.00
15 Genius Paper Products
Partial payment
309
12354
625,000.00
Light bill
310
12355
13,250.00
20 Arboleda Co., Inc.
Full payment
311
12356
83,300.00
21 Archer Supplies
plastic bags
312
12357
5,000.00
26 Genius Paper Products
Partial payment
313
12358
32,500.00
Genius Paper Products
Full payment
314
12359
125,315.00
Genius Paper Products
Downpayment
315
12360
25,000.00
Arboleda Co., Inc.
Full payment
316
12361
25,490.00
27 XYZ Ads
100 pcs. Brochures
317
12362
13,325.00
28 Sapphire Corp.
Full payment
318
12363
85,000.00
30 Paymaster
Salaries 12.15-12.31
319
12364
942,840.00
MERALCO
P
300,000.00
P
1,700.00
2,560.00 260.00
### P
6,308,870.00
P
4,520.00
(101)
(3005)
ü
ü
C-2.2
MENTS BOOK ACCOUNTS PAYABLE (DR.) AMOUNT P
ACCOUNT NAME
SUNDRY DR. (CR.) F
AMOUNT
300,000.00 972,750.00 Withholding Taxes Payable
1005 P
34,200.00
SSS Premiums Payable
1004
87,500.00
Gasoline Expense
4007
14,000.00
Salaries Expense
4002
1,238,760.00
Withholding Taxes Payable
1005
(64,800.00)
SSS Premiums Payable
1004
(72,360.00)
HDMF Premiums Payable
1006
(21,600.00)
Light, Water and Telephone
4008
13,250.00
Supplies Expense
4003
5,000.00
Advertising Expense
4016
13,325.00
Salaries Expense
4002
1,101,600.00
SSS Premiums Payable
1004
(72,360.00)
Withholding Taxes Payable
1005
(64,800.00)
175,000.00 114,900.00 1,554,500.00
625,000.00 85,000.00 32,500.00 127,875.00 25,000.00 25,750.00 85,000.00
3
HDMF Premiums Payable P
4,123,275.00 (1001)
ü
N-1
1006
(21,600.00) P
2,190,115.00
N-1.4 Page 1
GENERAL JOURNAL Date
Particulars
F
2011 Dec. 1 Accounts Payable 1001 Notes Payable 1002 Issuance of 90-day 24% note to Genius Paper Products.
6 Accounts Payable 1001 Notes Payable 1002 Issuance of 150-day 27% note to Genius Paper Products.
Debit
Credit
1,906,500.00 1,906,500.00
1,600,000.00 1,600,000.00
GRACE CORPORATION Accounts Payable Confirmation December 31, 2011
I. OBJECTIVES 1
To verify the accuracy and existence of the accounts payable balanc
1 2
Accuracy Existence
1 2 3
Obtain a list of the company's creditors and its balances (or check su Request and collect from the creditors a statement of account indica Compare the balances taken from the subsidiary ledger to those ind
II. ASSERTIONS
III. PROCEDURES
IV. FINDINGS
Creditor Name
Conf #
WP REF
Genius Paper Products
AP - 1 N-1.2
Sapphire Corporation
AP - 2 N-1.2
Arboleda Co., Inc.
AP - 3 N-1.2
III. CONCLUSION
In conclusion, the balaces included in the accounts payable confirmations a given the lack of signatures, the auditor decided that further substantive p
TION
of the accounts payable balances
ors and its balances (or check subsidiary ledger if not provided) rs a statement of account indicating the company's liability balance he subsidiary ledger to those indicated in the creditor's statement of account
Balance per SL
WP REF
Balance per Statement of Account
Difference
Remarks
1,982,495.00
N-2.1
1,982,495.00
-
Balance is OK but with no signature
1,484,670.00
N-2.1
1,484,670.00
1,656,925.00
N-2.1
1,656,925.00
-
Balance is OK but with no signature
-
Balance is OK but with no signature
accounts payable confirmations are equal to those indicated in their corresponding subsidiary ledgers. However, cided that further substantive procedures must be performed to support the assertions presented.
Prepared by: JGN Reviewed by: MGR
N-2
Date: 2/25/2012 Date: 2/29/2012
Our records show that the balance of was due from Name of Supplier / Creditor : By (in print) : Signature :
Our records show that the balance of was due from Name of Supplier / Creditor : By (in print) : Signature :
Our records show that the balance of was due from
P GRACE CORPORATION
as of
1,982,495.00 December 31, 2011 GENIUS PAPER PRODUCTS
Jordan Miguel
Position : Date :
P GRACE CORPORATION
as of
January 25
1,484,670.00 December 31, 2011 SAPPHIRE CORPORATION
Samantha Reyes
Position : Date :
P GRACE CORPORATION
as of
January 10
1,656,925.00 December 31, 2011
Name of Supplier / Creditor : By (in print) : Signature :
ARBOLEDA CO., INC. Joshua Madrigal
Position : Date :
January 20
N-2.1 N-2 Conf. No. AP - 1
as itemizes in the attached statement ber 31, 2011
CTS Chief Accountant January 25, 2005
N-2 Conf. No. AP - 2
as itemizes in the attached statement ber 31, 2011
ION Chief Accountant January 10, 2005
N-2 Conf. No. AP - 3
as itemizes in the attached statement ber 31, 2011
C. Chief Accountant January 20, 2005
GRACE CORPORATION Purchase Cut-Off December 31, 2011
I. OBJECTIVES 1
To determine whether purchases and corresponding payables are re
1
Completeness
1 2
Examined all purchases from December 2011 to January 4, 2012. Traced purchases invoices to the purchase book to determine wheth
II. ASSERTIONS
III. PROCEDURES
IV. FINDINGS
There are two Purchase Invoices (7729 and 825) that are not recorded as p the Purchase Cut-off table.
III. CONCLUSION
The December purchases and its corresponding payables have been determ Cut-off (please refer to F4) except for the Purchase Invoice Nos. 7729 and 8
N-3
ng payables are recorded in the appropriate period
anuary 4, 2012. o determine whether the purchase transactions are recorded in the proper accounting period.
not recorded as purchases and payables in the proper accounting period. Please Refer to F-4 for
s have been determined to be recorded in the appropriate accounting period using the Purchase ce Nos. 7729 and 825. Necessary adjusting entries have been made. No other exceptions noted.
Prepared by: Date: RIT 3/13/2012 Reviewed by: Date:
BAG
3/20/2012
GRACE CORPORATION Client Inquiry December 31, 2011
I. OBJECTIVES 1 2
To determine if there are pledges for liabilities. To determine if such pledges are properly presented and disclose
1 2
Rights and Obligations Presentation and Disclosure
1 2
Obtained copy of contracts, agreement, loans and the like relatin Reviewed such contracts and agreements. Inquired client for further information regarding pledges for liabili
II. ASSERTIONS
III. PROCEDURES
3
IV. FINDINGS
Only the loan balance of 10,000,000 have a collateral. * For full document and full audit discussion of such pledge, please refer to t
III. CONCLUSION
No exceptions noted. Sufficient and appropriate evidence were gathered to
N-4
ed and disclosed in the financial statements.
d the like relating to the payable accounts.
edges for liabilities.
*
please refer to the audit of Property, Plant and Equipment WP REF K-4.
ere gathered to support the assertions made.
Prepared by: ILW Reviewed by: LCC
Date: 6/3/2012 Date: 6/9/2012
GRACE CORPORATION Analytical Procedures - Accounts Payable December 31, 2011
I. OBJECTIVES 1 2
To be able to evaluate the fluctuations or unusual changes on the To assess whether amounts and other data relating to recorded t
1 2 3 4
Accuracy Valuation Presentation and Disclosure Rights and Obligations
1
Compared the difference between the audited balance of payabl (Balance of 2010 from 2009 and Balance of 2011 from 2010). The differences on the account balances where expressed in perc
II. ASSERTIONS
III. PROCEDURES
2
IV. FINDINGS
Accounts Payable Percent Increase (Decrease)
TB
Turnover Days outstanding Notes Payable Percent Increase (Decrease)
TB
Notes Payable to Officer Percent Increase (Decrease)
TB
SSS Medicare Premium Payable Percent Increase (Decrease)
TB
Withholding Taxes Payable Percent Increase (Decrease)
TB
HDMF Premiums Payable Percent Increase (Decrease)
TB
Accrued Interest Payable Percent Increase (Decrease)
For purposes on analyzing the payable accounts, the auditors mainly calcu Accounts Payable account wherein the auditors calculated for the 1 Accounts Payable Turnover: measures the number of ti accounting period. Formula: Cost of Sales*/Average Ac 2 Days in Accounts Payable Formula:
measures the average nu 365/Accounts Payable Tur
As seen in the table above, Accounts Payable turnover have decreas of payments to suppliers have decreased compared to the last perio As is evident in the Days in Accounts Payable ratio, the number of d 9 days to 20 days. Though 20 days is not a very poor figure, it still s on a more effcient and timely manner.
Percentage changes in payables does not call any special attention, increase, from below a million to more than 5 million. This explains t days oustanding. Maybe Grace Corporation's decreased performanc larger balances.
* Cost of Sales was used instead of total purchases because the au to determine the entire year's PURCHASES ON ACCOUNT.
III. CONCLUSION
Except for the analysis discussed in the findings, no other exceptions were
TION
tions or unusual changes on the balances of the payable accounts. other data relating to recorded transactions and events have been recorded appropriately.
n the audited balance of payables of the current year from the audited balance of the preceding years Balance of 2011 from 2010). lances where expressed in percentage by diving the variance from the prior balance of an account.
2009 900,000.00 -
TB
Payables 2010 906,500.00 0.72%
1
2011 5,319,665.00 487%
-
38.51 9.48
18.33 19.92
14,000,000.00 -
TB
21,000,000.00 50%
14,000,000.00 -
TB
21,000,000.00 50%
52,000.00 -
TB
62,000.00 19%
1
144,720.00 133%
40,500.00 -
TB
52,500.00 30%
1
129,600.00 147%
21,500.00 -
TB
29,500.00 37%
1
63,200.00 114%
1
66,565.00 -
-
### ###
2
13,506,500.00 -36% 1,700,000.00 -92%
unts, the auditors mainly calculated the percentage changes, except for the n the auditors calculated for the AP Turnover and Days in AP oustanding. measures the number of times a company pays its suppliers during a specific accounting period. Cost of Sales*/Average Accounts Payable measures the average number of days a payable is outstanding. 365/Accounts Payable Turnover
yable turnover have decreased from 28 days to 18 days. This means that the frequency ed compared to the last period. This is also considered a decrease in operational performance. yable ratio, the number of days a payable is oustanding have lengthened from ot a very poor figure, it still suggests a decrease in the companies ability to pay their payables
ot call any special attention, except that of the accounts payable which had a 487% han 5 million. This explains the decrease in the turnover and the increase in the tion's decreased performance in paying off payables was because of the now
total purchases because the auditors do not have enough documents RCHASES ON ACCOUNT.
dings, no other exceptions were noted.
Prepared by: ILW Reviewed by: LCC
N-5
ceding years
34785500 57050382
erformance.
heir payables
Date: 1/25/2012 Date: 2/10/2012
GRACE CORPORATION Notes Payable December 31, 2011
I. OBJECTIVES 1 2 3
To determine that notes payable exist as of the balance sheet date. To determine whether all notes payable were recorded properly. To determine whether amounts of notes payable were accurate.
1 2 3
Existence Completeness Valuation
1 2 3 4 5 6
Obtained a copy of accounts payable supporting documents such as Examined the terms of the contract. Vouchedfrom general ledger to supporting documents. Compared amounts per contracts and agreements with the general l Recalculated Interest. Noted for differences.
II. ASSERTIONS
III. PROCEDURES
IV. FINDINGS
Payee Alfredo P. Cacho- Officer Felicisimo Rey- Genius Paper Products Felicisimo Rey- Genius Paper Products PCI Bank BALANCE PER AUDIT Balance per Ledger Audit adjustment Proposed Adjusting Journal Entry:
Date of Note 10.01.11 12.01.11 12.05.11 12.28.11
Term 360 days 90 days 150 days 360 days
(a) Cash Discount on Notes Payable
Notes Payable To record proceeds from bank loan. *This entry were already reflected in Bank Reconcillation (C2) (b) Notes Payable
Notes Payable to Officer *This entry was made to reclassify the notes payable to officer separ required for it to be presented separately. No discount was reclassifi be noted than on the contract, the Payee should be the name of the Grace Corp can't have a liability payable to itself.
III. CONCLUSION
In conclusion, notes payable recorded in the ledger do exist and properly valu journal entry given by the auditor, no other exceptions noted.
O-1
e sheet date. properly. accurate.
ments such as promisory notes and bank confirmation.
h the general ledger.
Interest Rate Non-Interest Bearing Note 24% 27% 21%
Recorded or Not? O-1.1 Yes O-1.1 Yes O-1.1 Yes C-3.1 No
O-1.2
Amount 1,700,000 1,906,500 1,600,000 10,000,000 (a) 15,206,500 5,206,500 10,000,000
7,900,000 2,100,000 10,000,000
om bank loan. on (C2) 1,700,000
1,700,000 o officer separately from the notes payable account as it is was reclassified because the note was short-term. It should also e name of the officer and not Grace corporation. Simply because,
d properly valued, however a note payable to PCI bank were not recorded. Aside from the proposed adjusting
Prepared by: MZB Reviewed by: DAM
Date: 4/2/2012 Date: 4/13/2012
-1
PROMISSORY NOTE (Note Payable- Officer) P
1,700,000.00 O-1
For value received, I / we jointly and severally promise to pay, Grace Corporation or order, the sum of thousand 1,700,000.00 pesos (P none 12 Ninoy Aquino Ave interest rate of % payable at
If this note is placed in the hands of attorney for collection; the makes and endorsers addition, pay 25% of the amount due as attorney's fees and costs of collection (aside from the litigation allowed by the Rules of Court).
Signature
Alfredo P. Cacho Name in Print
58 Rizal Avenue, Manila Mailing Address Res. Cert. No.: AB582485 Date: January 30, 2011 Place of Issue: Manila
SIGNED IN THE PRESENCE OF:
PROMISSORY NOTE (Note Payable) P
1,906,500.00 O-1
For value received, I / we jointly and severally promise to pay, Genius Paper Products One million nine h or order, the sum of thousand five hundred 1,906,500.00 pesos (P 24 565 Solana Aven interest rate of % payable at
If this note is placed in the hands of attorney for collection; the makes and endorsers addition, pay 25% of the amount due as attorney's fees and costs of collection (aside from the litigation allowed by the Rules of Court).
Signature
Felicisomo Rey for Genius Paper Products Name in Print 565 Solana Avenue Pasay City Mailing Address Res. Cert. No.: AB513468 Date: January 30, 2011 Place of Issue: Pasay City
SIGNED IN THE PRESENCE OF:
PROMISSORY NOTE (Note Payable) P
1,600,000.00 O-1
For value received, I / we jointly and severally promise to pay, Genius Paper Products One million six hu or order, the sum of thousand 1,600,000.00 pesos (P 27 565 Solana Aven interest rate of % payable at
If this note is placed in the hands of attorney for collection; the makes and endorsers addition, pay 25% of the amount due as attorney's fees and costs of collection (aside from the litigation allowed by the Rules of Court).
Signature
Felicisomo Rey for Genius Paper Products Name in Print 565 Solana Avenue Pasay City Mailing Address Res. Cert. No.: AB513468 Date: January 30, 2011 Place of Issue: Pasay City
SIGNED IN THE PRESENCE OF:
O-1.1
RY NOTE le- Officer) October 1, 2011
360 days after date One million seven hundred ), Philippine Currency at an annual 12 Ninoy Aquino Ave., Paranaque City .
the makes and endorsers shall, in collection (aside from the costs of
Signature
Sarah B. Tuason for Grace Corporation Name in Print 12 Ninoy Aquino Avenue Paranaque City Mailing Address Res. Cert. No.: AB3486789 Date: January 19, 2011 Place of Issue: Paranaque City
SIGNED IN THE PRESENCE OF:
RY NOTE ayable) December 1, 2011
ninety days after date One million nine hundred six ), Philippine Currency at an annual 565 Solana Avenue, Pasay City .
the makes and endorsers shall, in collection (aside from the costs of
Signature
Sarah B. Tuason for Grace Corporation Name in Print 12 Ninoy Aquino Avenue Paranaque City Mailing Address Res. Cert. No.: AB3486789 Date: January 19, 2011 Place of Issue: Paranaque City
SIGNED IN THE PRESENCE OF:
RY NOTE ayable) December 5, 2011
150 days after date One million six hundred ), Philippine Currency at an annual 565 Solana Avenue, Pasay City .
the makes and endorsers shall, in collection (aside from the costs of
Signature
Sarah B. Tuason for Grace Corporation Name in Print 12 Ninoy Aquino Avenue Paranaque City Mailing Address Res. Cert. No.: AB3486789 Date: January 19, 2011 Place of Issue: Paranaque City
SIGNED IN THE PRESENCE OF:
ACCOUNT
DATE
Notes Payable ITEM
F
DEBIT
DATE
2011 Dec. 1 6
ACCOUNT DATE
Notes Payable - Officer ITEM
F
DEBIT
DATE
2011 Nov. 30
O-1.2 ACCOUNT NO.
ITEM
F
GJ 11 GJ 11
CREDIT
P
Balance
ACCOUNT NO. ITEM
Balance
1002
F
1,906,500.00 1,600,000.00 3,506,500.00
1003 CREDIT
P
1,700,000.00
GRACE CORPORATION Accrued Interest Payable December 31, 2011
I. OBJECTIVES 1 2 3
To determine that accrued interest payable exist as of the bala To determine whether all accrued interest payable were record To determine whether amounts of accrued interest payable we
1 2 3
Existence Completeness Valuation
1 2 3 4 5
Obtained a copy of notes payable contracts. Examined the terms of the contract. Recalculated interest. Determined the amount of accrued interest payable recorded Noted for differences.
II. ASSERTIONS
III. PROCEDURES
IV. FINDINGS
Payee Alfredo P. Cacho- Officer Felicisimo Rey- Genius Paper Products Felicisimo Rey- Genius Paper Products PCI Bank BALANCE PER AUDIT Balance per Ledger Audit adjustment
Proposed Adjusting Journal Entry: Interest Expense Accrued Interest Payable To adjust acrrued interest on
(a) No accrual of interest were made for short non-interest be
(b) Amortization of the discounted note were not necessarily b
III. CONCLUSION
In conclusion, accrued interest payable recorded in the ledger do exist exceptions noted. Sufficient and appropriate evidence were gathered to
ble exist as of the balance sheet date. st payable were recorded properly. ed interest payable were accurate.
est payable recorded for the period
Principal 1,700,000 1,906,500 1,600,000 10,000,000
Date of Note 10.01.11 12.01.11 12.05.11 12.28.11
Term 360 days 90 days 150 days 360 days
Interest Rate Non-Interest Bearing Note 24% 27% 21%
1,815 1,815
st acrrued interest on notes payable. short non-interest bearing note due to immateriality.
were not necessarily be made considering the materiality level and the days it was outstanding. No need to acrrue interest
n the ledger do exist , however there was an understatement in the account . Aside from the proposed adjusting journal en nce were gathered to support the assertions made.
O-2
Days Outstanding 30 26 -
Interest Accrued (a) 37,608 30,773 (b)
O-2.1
68,380 66,565 1,815
ing. No need to acrrue interest.
e proposed adjusting journal entry given by the auditor, no other
Prepared by: MZB Reviewed by: DEF
Date: 3/5/2012 Date: 3/15/2012
ACCOUNT DATE
Accrued Interest Payable ITEM
F
DEBIT
O-2.1 ACCOUNT NO. DATE
2011 Dec. 31
ITEM
F
GJ 12
1007 CREDIT
P
66,565.00 O-2
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