Paolo Auto Supply (picture ng shop)

Owner: Address:
David, Ronaldo O. 1528 Pedro Gil St., Paco, Manila 562-22-88

Contact No.:

History The business started on the 25th of July, 2005. It started with a capital of P 800,000 with a rent of P 15,000 monthly. The business is owned by a man named, Ronaldo O. David. For the first few years, the business only had 3 suppliers for its battery, oils and gas but, as years go by the number of suppliers increased. It is operating for 8 years now and the capital is eventually reimbursed.

III. Documentation of Manual System

SUPPLI ER

ADJUST MENT

CUSTOM ER

PURCHA SE INVENTO RY DATA

RECEIVI NG

SALES

PAYMEN T CASH DISB. JOURNAL GENERA L GENERA L

In relation with the above flow chart, the Accounting System of Paolo Auto Supply starts with the Purchasing of Merchandise on their trusted suppliers on account and or cash basis and as soon as they receive the merchandise, they will immediately record the cost and quantity on their Inventory data. For the payment, they record it on a daily basis in their Cash disbursement Journal and post it on a quarterly basis along with the Inventory Data in the General Ledger. With Regards to their Sales, they accept cash or credit sales. Upon selling merchandise they will record it immediately on the General Ledger. All Official Receipts, be it for Sales or Purchases, are accumulated for checking of the business accountant. As for the Income and Expenses of the business, these are recorded on a daily basis using their own-made Microsoft Excel Program which is consists

of 4 columns, the first column is for the product name, the second column is for the Gross Price of the product sold, the third column is for the Net Price of the product sold and the fourth column is for the Daily expenses. At the end of the day, Gross and net amounts are computed, the resulting amount would be netted with expenses and the result would be the profit for the day. Every quarter, the accountant collects all the receipts and records it on the books of the business. He checks every transaction occurred for the last four months and properly records all of it in the respective books. The accountant then at year end turns over the books for checking of the Bureau of Internal Revenue.