Accounting Systems Designed For Publiq Coffee and Beer

PUBLIQ COFFEE AND BEER: AN ACCOUNTING SYSTEM DESIGN AND
INSTALLATION
An Accounting System presented to
The Faculty of the Bachelor of Science in Accountancy program, Accountancy
Department, College of Business and Accountancy
University of Negros Occidental - Recoletos
In Partial Fulfillment of the Requirements for the Degree of Bachelor of Science in
Accountancy
Ma. Rizza T. Montao

Willianne Joy N. Montao
Ronnie C. Pahilagao Jr.
Louie Jim D. Pialda
Regina G. Semillano
May 2017
#51 Lizares Avenue, Bacolod City, Negros Occidental, Philippines
APPROVAL SHEET
This Accounting Systems Project entitled Accounting System Designed for PCB
prepared by Louie Jim D. Pialda, Ma. Rizza T. Montao, Willianne Joy N. Montao,
Rejina G. Semillano and Ronnie C. Pahilagao Jr. has been approved and accepted as a
partial fulfillment of the requirements for the degree of Bachelor of Science in
Accountancy.
Dr. Felix Cena, CPA Dr. Clarita Lacson, CPA
Dr. Jelyn Gaspillo
Dr. Clarita Lacson, CPA Mr. Dennis Udani, CPA, REA, REB
Head, Accountancy Department Professor, ACTOJT
Dr. Jelyn Gaspillo

Dean, College of Business and Accountancy
Executive Summary
PUBLIQ COFFEE AND BEER: AN ACCOUNTING SYSTEM DESIGN AND

INSTALLATION
Ma. Rizza T. Montao

Ronnie C. Pahilagao Jr.
Louie Jim D. Pialda
Regina G. Semillano
College of Business and Acountancy

Abstract
The objective of this study is to create an ideal accounting system to serve as a

skeleton for a mixed merchandising/service business and its processes. It is supported
with research findings which are collected and scrutinized in a manner where the users
can understand the applicability and significance of this specialized system. With the
advent of information technology age, it is also imbibed with appropriate technical
elements which is now use in every business such as the installation of software like
QuickBooks and SAP. The installation of a software has its own pros and cons for the
business and its processes. This specialized system is composed of the history and
theoretical background of the selected mixed merchandising/service business, employee
job descriptions, flowcharts of every business processes, general and specific internal
control policies, business machines, and etc. This is not only limited to the nature of the
business but the applicability of this specialized system can cater different forms of
business which is under the shelter of the mixed merchandising/service industry.
Keywords: mixed merchandising/service business, software, processes, applicability

Introduction products of the business is not limited to
coffee alone. Most of them used to sell
The true bliss of a traditional pastries and even food for dining such as
breakfast is attained with a cup of coffee. pasta, pizza, salad, etc. Theyre like
The sweet taste and beautiful aroma that restaurants, but in contrast, theyre not
it oozes brings that satisfaction and there to highlight food but they exist to
delight to every persons morning. Based highlight coffee. There are a lot of
on a reliable survey, it says that most of differences between them. One of them
the Filipinos cannot start a morning is the ambiance. You will really know if
without having a single cup of coffee its a restaurant, a coffee shop or
and it is fortified with the best estimate combined because usually a coffee shop
of 3,000,000 bags of coffee that were is a quiet, calm place compared to a
consumed by Filipinos in the past year resto. An ambiance that could suit a
(2016). This is a mass of a coffee. At person or a group who wants to relax,
present, many business entrepreneurs study, chill, do paper works or computer
engage in caf business. Mainly, a coffee works and usually it is a great place to
shop is a mixed service and merchandise hold meetings.
kind of business. Furthermore, the
and information from the business
mentioned. The information collected
Methodology from the supervisor are merely limited.
These information consists of the name
This study deals with a design of an
of the business, the date it was
Accounting System to be used by a
established, the operating hours, the
Mixed Service/Merchandise entity with
name of the partners, the menu that are
an integration of Accounting Software
being served, the meaning of their
such as Quickbooks, SAP, Oracle, etc.
business name, the number of employees
The participants of this study are the
they have, the responsibilities or roles of
business entrepreneurs who are engaged
their employees, the fixed asset they
in a service/merchandise mixed type of
have, the prices of their products and the
business. This study is started from
location of their business. Other
gathering of data from the chosen entity
information needed in this study are not
which is the Publiq: Coffee and Beer. In
given due to its confidentiality. Example
order to collect sufficient data for this
of which are the internal control of the
study, we used the interview method
business, their chart of accounts, their
with one of the supervisors of the
financial statements, their tax
business. This is to achieve an ideal
compliance and their records of
accounting system which is the main
transactions. The data collected is that
goal of this study.
limited to create a purely objective
accounting system with an installation to
an accounting software. With this, the
researchers have created a reasonable,
self-made information to comply the
Results, Discussion and Implications required data for an accounting system
The installation of this study to be made possible. One of them is the
commences from the collection of data chart of accounts. The chart of accounts
is created based on the need of the
business itself. It consist of asset (current expenses. In comparison to the accounts
and non-current), liabilities (current and that is used by the standard, the software
non-current), equity, revenue and has its own classifications, examples of
expense accounts. The fixed asset is which are Bank, Other Current Assets,
made using the mentioned equipment Fixed Asset, Other Current liabilities,
and furniture by the owner. The Long term liabilities and Cost of Goods
business is operated using the cash basis Sold. This is the major problem when
of accounting (they use cash receipts and using the Quickbooks. They dont
cash disbursements method of recording generate financial statements that are
transactions). The system and other based from Philippine Financial
relevant information are installed into Reporting Standards (PFRS). Based on
the software which is the Quickbooks. the research that has been made, it is
This information consists of chart of proven true that Quickbooks was not
accounts, the types of customers they fully patterned in a PFRS format. It is
have, and the journals they are using. hard to operate this software at first
Some of the information are made by the glance but it is easy and convenient to
researchers. These reasonable use if you will master it and the cycle it
information are made for completion of does. The effect of this study may affect
installation. Information such as the the view of the readers and other
daily transactions of the business; the researchers. They might see some of the
ordering of inventory needed to operate objectivity issues since the study is
the business, the receipt of inventory composed of assumptions. This study
from a supplier to the location of the can give an idea to a reader that the type
business, the payment of inventory of installation depends on the type of
bought from past purchasing business. They may be skeptic in reading
transactions, the cash receipts from the this study for it may contain a
take out and walk in customers, the questionable statements. The study will
assigning of account number in a be a great help to the community for it
particular account and the recording of enhances the idea of creating an
transactions into the general journal. effective way of doing business
After the installation into the software,
the researchers have found it both
convenient and difficult at the same
Conclusions and Recommendations
time. Convenient in a way that it can
easily generate transactions and reports Systematic recording is one of
that is needed by the business. It is easy the fundamentals in accounting for each
to operate a Quickbooks because it of the business transaction. The creation
directly record the transactions in their of an accounting system makes it easier
particular report. It is difficult in a way for the employee to keep track of all the
that some of the expectations are not business transactions and documents that
being complied by this software. are used for proper disclosures and
Example of which is the classifications reporting which are necessary for
of accounts. Normally, an account is decision making. But certain risks are
classified as current assets, non-current involved in the utilization of this
assets, current liabilities, non-current accounting system therefore the
liabilities, equity, revenues and researchers recommend the following:
thoroughly identify some significant convenience, improve and provide
details that could be found in the additions in IT controls as possible,
flowcharts and revise some of which that create chart of accounts based on the
could suit your business needs, provide companys needs, and delete irrelevant
additional controls that are needed by account titles. This is useful for an
your business, study an accounting accounting personnel if he/she ever
software first before using it, use an encounters operational/technical features
accounting software that could give you that are new to him/her.
References
Hall, J. A. (2008) Accounting Information Systems. Ohio, Natop Boulevard
Mason: Cengage Learning.
Johnstone, Gramling and Rittenberg (2014) Auditing. Pasay City, Ortigas
Avenue: Cengage Learning.
Retrieved on May 27, 2017 from goo.gl/mLGqpg
Retrieved on May 24, 2017 from goo.gl/Cp4FPF
Retrieved on May 18, 2017 from goo.gl/W0hjo8
Retrieved on May 16, 2017 from goo.gl/zpkxlN
Retrieved on May 16, 2017 from goo.gl/drjC36
Retrieved on May 15, 2017 from goo.gl/3ELomP

ACKNOWLEDGMENT
The researchers extend their deepest gratitude to the following:
To the Lord Almighty, who is always there in times of success and difficulties that the
researchers had encountered. We thank Him for guiding us in finishing this requirement
in ACTOJT which is the accounting system designed for PCB;
To our dear professor Mr. Dennis Udani, who guides us all throughout the study,
frequently checking our work, telling us to correct every mistake we made and supporting
us in everything we do. We acknowledge his expertise and efforts in finishing this study;
To Rggie Claridad and his family, for letting us stay in his house to do our work. We
thank them for being hospitable to us; they serve us food and other necessities we need;
To our parents, for giving us support and allowance for us to make this study possible.
We thank them for letting us do our work at any time and any place.
TABLE OF CONTENTS
I. INTRODUCTION
Statement of the Problem

Hypothesis
Theoretical Background and Related Literature
Scope and Limitations
Significance of the Study
Company Name and Logo
Mission Statement
Vision Statement
Organizational Chart
Job Description, Qualification, and Detailed Duties
Code of Conduct
Code of Discipline
Definition of Terms
II. METHODOLOGY
Research Design
Participants
Procedures
III. RESULTS, DISCUSSIONS, AND IMPLICATIONS
The Manual
Internal Control
Flowchart Symbols
General Accounting Plan
Flowcharts with Procedures and Policies
Business Forms
Book of Accounts
IV. CONCLUSIONS AND RECOMMENDATIONS
Conclusion
Recommendations
V. Proposed Program/Output
Review of the Accounting Information System

Installation of Accounting Software
Case Study
System Development
IT Controls
Simulation of Business Transactions
Chart of Accounts
Journal Entries
Financial Statements
Tax Compliance
Appendices
Appendix A. Business Machines

Appendix B. Letter of Approval
Appendix C. Curriculum Vitae
LIST OF TABLES
Table 1 Symbols used in Flowcharts
Table 2 Lines of Authority
Table 3 Detailed Chart of Accounts
Table 4 Journal Entries

LIST OF FIGURES
Figure 1 Logo of the Business
Figure 2 Organizational Chart of the Business
Figure 3.1 General Flowchart
Figure 3.2 Flow of Cash Receipts in the Business
Figure 3.3 Flow of Payroll in the Business
Figure 3.4 Flow of Petty Cash Disbursements in the Business
Figure 3.5 Flow of Petty Cash Replenishment in the Business
Figure 3.6.1 Flow of Cash Advance to Employees in the Business
Figure 3.6.2 Continuation Flow of Cash Advance to Employees in the Business
Figure 3.7 Flow of Purchase Returns in the Business
Figure 3.8.1 Flow of Purchasing of Inventory in the Business
Figure 3.8.2 Continuation of Flow of Purchasing of Inventory in the Business
Figure 3.9 Flow of Receiving of Inventory in the Business
Figure 4.1 Check Voucher
Figure 4.2 Purchase Requisition Form

Figure 4.3 Purchase Order
Figure 4.4 Receiving Report
Figure 4.5 Canvass Slip
Figure 4.6 Cash Advance Voucher
Figure 4.7 Tape Receipt Summary
Figure 4.8 Payroll Register
Figure 4.9 Pay slip
Figure 4.10 Time Card
Figure 4.11 Petty Cash Voucher
Figure 4.12 Petty Cash Replenishment
Figure 5.1 Home Page
Figure 5.2.1 Chart of Accounts
Figure 5.2.2 Continuation of Chart of Accounts
Figure 5.3.1 Customer Profile
Figure 5.3.2 Vendor Profile
Figure 5.3.3 Employee Profile
Figure 5.4.1 List of Item

Figure 5.4.2 Fixed Asset List
Figure 5.5.1 Purchase Order
Figure 5.5.2 Receipt of Inventory with bill
Figure 5.5.3 Payment for Purchases
Figure 5.6.1 Cash Sales
Figure 5.6.2 Deposit to bank
Figure 5.7.1 Summary of Inventory
Figure 5.7.2 Bill tracker
Figure 5.7.3 Summary of Job Profitability
Figure 5.8.1 Income Statement
Figure 5.8.3 Balance Sheet
Figure 5.8.3 First Continuation of Balance Sheet
Figure 5.8.4 Second Continuation of Balance Sheet
Figure 5.8.5 Statement of Cash Flows
Figure 5.9.1 Initial Investment
Figure 5.9.2 Continuation of Initial Investment
Figure 5.9.3 Purchase of Equipment through Debt

Figure 5.9.4 Prepayments of Store Supplies
Figure 5.9.5 Prepayments of Office Supplies
Figure 5.9.6 Prepayments of Advertising
Figure 5.9.7 Loan
Figure 5.9.8 Purchase of Accounting Software
Figure 5.9.9 Prepayment of Rent
Figure 5.9.10 Establishment of Petty Cash Fund
Figure 5.9.11 Petty Cash Replenishment
Figure 5.9.12 Expense and Office Prepayment
Figure 5.9.13 Expense and Rent Prepayment
Figure 5.9.14 Record Depreciation
Figure 5.9.15 Petty Cash Disbursement
Figure 5.9.16 Record Salaries
Figure 5.9.17 Expense a Prepayment of Store Supplies
Figure 5.9.18 Partial Payment of Loan
Figure 5.9.19 Expense a Prepayment of Advertising
Figure 6 Phases of Development

Chapter 1
INTRODUCTION
It seems like everyone loves coffee. Based on a survey, it says that most of
the Filipinos cannot start a morning without having a single cup of coffee. Evidently, an
estimate of 3,000,000 bags of coffee was consumed by Filipinos in the past year (2016).
It more attractive to most business entrepreneurs because it can be started and operated
with a low starting cost compared to another type of business. Most capitalist invested,
more or less 5,000,000 to start a decent, high-end coffee shop. The second reason why it
is very appealing is that even though it is a food service, it can generate high profit as the
booming restaurants did and technically speaking, it is a great advantage to any investor.
The primary purpose of building the coffee shop is to satisfy the need of every consumer
and coffee drinker. The next purpose of creating this kind of business is to help these
customers forget the tension of life. It will also be comfortable for people to meet their
peers or even just relax with the right mix of music. All of these considerations are in
consolidation. The demand for coffee is vastly growing, and therefore excellent service
must be prioritized. And so with these, the customers must be provided with a coffee of
quality.
Mainly, a coffee shop is a mixed service and merchandise kind of business. Service, in
simple term, is a verb that gives satisfaction or benefit to its customers. PCB is partly a
service type of business because a coffee shop operates by workers that render service to
its consumers. Workers such as baristas, waiters, and chefs are some of the employees
that are hired to provide service to the customers. Surely, they work to satisfy customers'
needs and wants. On the other hand, it is a merchandise type of business for it buys the
product, shortly processes them and sells them right away. Some of the coffee shops
already have their suppliers and just used to mix the coffee.
Coffee shops are not limited to coffee alone. Most of them used to sell pastries and even
food for dining such as pasta, pizza, salad, etc. They are like restaurants, but in contrast,
they're not there to highlight the food, but they exist to highlight the coffee. There are
differences between them. One of them is the ambiance. You will know if it's a
restaurant, a coffee shop or combined because usually, a coffee shop is a quiet, calm
place compared to a resto. An ambiance that could suit a person or a group who wants to
relax, study, chill, do paper works or computer works and it is a good place to hold
meetings.
Statement of the Problem
This study aims to create an accounting information system for a mixed service
and merchandise entity of a newly established business. Based on a given fact, that most
businesses rely solely on the manual recording of their transaction, it can arise the skeptic
view of every sector that uses the financial information. These sectors, such as the
auditors and government agencies, will probably doubt the reliability of information a
particular business have. Not just these aforementioned sectors, but also, the other users
of financial information.
Here are some of the authorized disclosures that are gathered from an authorized
personnel. This business is basically using the cash method of accounting where they
only recognize cash receipts and cash disbursements in their book of accounts. Any
people inside the vicinity may receive the inventory and just record them directly in their
journal. Depreciation is not even recorded. They do not establish any chart of accounts.
We can say that this business is really that unorganized. Ergo, there must be a needed
solution in the formulation of objective information and that is the installation of
accounting software and internal control in the business.
Hypothesis
Integration of Business Software to a newly established entity will result in an
efficient and effective accounting system.
Theoretical Background and Review of Related Literature
This study is anchored upon the concept of having an accounting information
system applied to a business venture in which it incorporates the technological and
organizational approaches towards systematic flow of processes. The design focuses on
the computerized recording of transactions and offers better process between alternatives
available. This will also show the application of management information system that
will support the management regarding managerial decisions.

This composition is essential for any other business and also for upcoming
entrepreneurs. Clearly, in todays business world, data flow is important. It must be
accurate, controllable, and easy to handle that is why there is high percentage of the
demand for information system for a business. Information systems can increase
productivity due to its ease of use. It can also eradicate activities that are not essential as
well as improve coordination among different processes that happens in a business. It can
be used to assist in the analysis of data needed by the management; decisions can be
accessed any time because of the precise and faster flow of data.
There are also beneficial concepts that can be obtained with the use of an
information system. Most companies may it be big or small in size, it is still
advantageous to have software. This will speed up processes that by the time to serve a
customer arrives it would be faster than the usual manual system of processing
transactions.
Management Information System or Accounting Information System is crucial for
any business for it allows managers or any person concerned to monitor the planned and
actual performances done by the venture. The operations of the business would be more
efficient since it is supported by reliable network systems. There is also control with the
information system built, and is maintained seemly over every activity happening in the
entity.
The Management Information System includes distinctive kinds of record-
keeping or accounting techniques in which it keeps track of the business. The beginning
of automation started where punch cards and tabulating cards were used in counting and
tallying. Until, innovation spread and these cards evolved and became database records.
Almost all businesses around the world are assisted by automated systems.
The role of the accounting information system depends on the nature and function
of a business particularly on its size and type. Its general purpose is to facilitate in the
systematic allocation of work; it will also provide financial information that is of great
help for the business. AIS effectuate ease in achieving success for the business. It is also
concerned about the consolidation of information which drives innovation of certain
accounting practices. The system produces information that is helpful regarding external
or internal decisions
Therefore, with the information system present, business development can
increase over the years because it can cope up with the increasing demand in the
economy hence information system is of great importance in every business.

Scope and Limitation
The extent of this study is limited only to the entity having a Service-Merchandise
Mixed type of business, and due to the limited information from our chosen
establishment, this study also has its limitation accordingly:
This study assumes PCB as a non-VAT entity since the owners provided us a very
limited information as to tax compliance. The researchers did not include any input vat
and output vat in their chart of accounts but also we still consider the percentage tax and
have created an appropriate chart of accounts for it. We also stated possible tax
compliance for this business to serve as guide for the reader to have a skeptical idea if by
chance they would do research such as this.
Since there is no existing chart of accounts of the company, the researchers
created one that suits the needs of the business, but the chart of accounts made may not
pattern to the chart of accounts that we can see in Quickbooks since this accounting
software is formulating its own account that could be used when you are doing
transactions.
This study is a copy free study where it is formulated from zero having a super
limited information. Therefore, it consists a lot of reasonable assumption that could give
the reader the idea or a subjective conclusion.

In general, the scope of this study deals more with the reasonable information
taken from a reliable source.
Significance of the Study
This study is of great benefit to the following entities:
Publiq Coffee and Beer (PCB) General Manager/Owners. Every detail
of this accounting system is primarily dedicated to PCB. The integration of new
accounting software in the company will safeguard company's assets and will
ensure the day-to-day operation of PCB. Tax compliance is also provided to settle
payments and reports regularly so as to avoid penalties and interests.
Investors and Entrepreneurs. As financier of a business, investors and
entrepreneurs always look on the profitability of the firm. This study also
provides financial data that will help the investors and entrepreneurs completely
aware of the operational and financial transactions of a small business such as
PCB.
Accounting professionals. An accounting system is essential to the
working environment of all accounting professionals. With the integration of
accounting software to PCB, any person assigned in the desk jobs of accounting
for the business will find ease and assurance that it all work well and that all
transactions are recorded timely and accurately.

UNO-R Research Office and CBA Faculty. This study is the result of
the students' learning in their academics. CBA Faculty members will be assured
that application of their teachings is materialized. To the Research Office, the
standard procedures, reports, and formats were integrated into this study; this
manifests that the process that the Research Office is enforcing is properly
executed.
Accountancy Students. This study provides a full guide of the integration
of an accounting system to a small business such as PCB. This is a complete set
of all usual transactions and its corresponding journal entries with internal control
measures set for the firm. Accountancy students may use it as reference to all
their queries of the accounting aspect.
Company Name and Logo

Figure 1 Logo of the Business
The partners want to come up with the idea of creating a business that could suit the taste
of its market. Its market is huge; may it be a professional, a student or a senior citizen.
So, they establish a business which they called the PCB. PCB is a coffee shop and a bar
station at the same time for it offers both coffee and beer, not just coffee and beer but also
some food that will suit your taste.
In line with their capacity of raising big amounts of capital, they have decided to increase
their investment in a way that they will generate more profit. Ergo, they came up with an
idea of creating another bar station with a twist. They called it "PCB." Technically, the
name is self-explanatory (its target market is the public). If you want to grasp any
information with regards to this business, you will see that its location is at the Ramos
intersection where many people cross, and many vehicles are also passing on that road. In
their location, we can only say that it can attract a lot of customers, especially students,
given that Lacson Street is the most famous Street in Bacolod. They have the edge over
other locally built coffee shops. Not only of their excellent location but also they serve
good quality coffee and good tasting beers that are worth trying.
Mission Statement
Public Coffee and beer aim to provide products that are high in quality and value
and provided with outstanding services at the lowest possible prices. As coffee shop and
bar at the same time, we are committed to empowering the lives of our customers by
providing them happiness, joy, and satisfaction through food, music beverages, coffee,
and arts for all ages. We care about the health and well-being of our customers. We are
consistent in preparing healthy and delicious food, premium quality coffee, espresso
beverages, coffee, cocktails and more by our traditional Filipino touch. PCB keeps the
concept fresh, exciting and on the cutting edge of the hospitality and entertainment
industry.
Vision Statement
PCB believes in establishing as the perfect coffee business partner. The company
must continue evolving to improve its products. The main aim is to keep PCB on the lead
of coffee quality. We want to be a leader in innovation, and food service industry by
committing to a culture of quality, excellence, great quality product and passion. We, the
PCB thrive to create a more vibrant, healthy and economically strong community as well
as to provide a friendly and diverse atmosphere for our guests to socialize and enjoy.
Organizational Chart
PARTNERS
GENERAL MANAGER
OPERATIONS MANAGER ACCOUNTING HEAD
BOOKKEEPER CASHIER (2)
KITCHEN
BARISTA (2) WAITERS (6)
PESONELL (4)
Figure 2 Organizational Chart of the Business

Job Description
Position General Managers/Owners
Reports to None
Supervises All
Job Description They are the pioneers/founders of the business where they
invest capital in terms of money or an equipment and industry to
create the business. They must also ensures the policies and goals
of the company that will lead to companys prosperity.
Detailed Duties
They must give the final decision in case there is a need of approval with respect
to the operations of the business.
Ensures profitability of the business through decision making.
Responsible for planning for the company through marketing research to identify
trends and potential markets for the products. To decide benefits for its
employees, provides benefit information and forms.
Handle complains and requests
Have to keep up with innovative products to remain competitive.

Position Operations Supervisor
Reports to General Manager
Supervises Barista, Waiter and Kitchen Personnel
Job Description The operations manager is responsible for the daily
operation of the business. His role involves overseeing the
production of goods and/or provision of services to its customers. It
is his job to make sure a business is running as well as it possibly
can, with an efficient service that meets the expectation and needs
of the customers.
Detailed Duties
Verifies and approves business transactions and related
documents such as purchase order, purchase requisitions,
tape receipts, receiving report, canvass slip and other
supporting documents.
Develops strategic plan to achieve the companys mission
and objectives and to improve profitability of the business.
He is also part of the planning stage together with the
finance manager and the general manager.
Ensures the quality of the products that will be offered to
the customers.
Research new technologies and alternative methods of
efficiency.
Oversee inventory.
Controls time ins and outs of the employees.
Qualifications
Candidate must possess at least Bachelors/College degree
in Food or Beverage Service Management or equivalent.
At least (2) years of working experience in the related field
are required for this position.
Required skill/s: Food and Beverage Managing skill.
Must have a good moral conduct and no records of any
criminal/illegal offenses.
Position Accounting Head
Reports to General Manager
Supervises Cashier and bookkeeper
Job Descriptions Finance manager is in charge of the financial activities of
the business. They are responsible to produce financial reports, do
investment activities, develop strategic financial plans and long
term financial goals.
Detailed Duties:
Acts as an HR personnel.
Providing and interpreting financial information.
Monitoring future cash flow and predicting future trends.
Formulating and strategic and long term plans.
Analyzing competitors and market trends
Conducting reviews and evaluations for cost reduction
opportunities.
Manage companys financial accounting.
Developing external relationships (e.g. Auditors, Solicitor,
bankers and tax personnel)
Acts as an internal auditor and checks the work of the
bookkeeper.
Qualifications:
Graduate of Bachelor of Science in Accountancy, preferably
CPA.
Must have at least (2) years of working experience.
Good level of competence in Microsoft Software.
Good in written and verbal communication skills.
Able to manage high volume workload.
Person with good moral character and integrity.
Able to work effectively.

Position Bookkeeper
Reports to Accounting Head
Supervises Cashier
Job Descriptions One of the responsibilities of a hired bookkeeper is to account
financial transactions by establishing a chart of accounts, defining
bookkeeping policies and procedures. He must maintain subsidiary
ledger accounts by verifying, allocating and posting transactions.
He must also do the balancing of subsidiary accounts by recording
entries.
Detailed Duties
Prepares bank reconciliation
Prepares Check Voucher and Checks
Maintains Journal for transactions
Update accounting records
Prepare special journals
Qualifications:
Must be a graduate of Accounting course or equivalent.
Knows how to operate accounting software

At least 2 years of working experience in the related field are
required in this position.
Required Skill: Good communication, good management and
decision making.
Must have a good moral conduct.
Must have no record of any criminal/illegal offenses.

Position Cashier
Reports to Accounting Head
Supervises None
Job Description He/She is responsible in the cash register. His/her
responsibility is to ensure that the cash that flows in and out of the
cash register are duly authorized and the amounts must consolidate
with the record
Detailed Duties
Manning the cash register and handling cash transaction
with customers.
Scanning goods and collect payments.
Issuing receipts and refunds.
Keep report of transactions.
Provide useful information to the bookkeeper.
Acts as a petty cash fund custodian.
Prepares petty cash voucher.
Handles petty cash fund.
Prepare petty cash replenishment report and cash position
report.
Qualifications:
Candidate must at least have a high school diploma and
enrolled in the business field in college for at least 2 years.
At least 1 year working experience as a cashier.
Must have an accuracy in arithmetic.
Computer literate, knowledgeable in operation POS
machine and handling credit card transaction.
Must be customer service oriented and with positive
disposition.
Must have a sense of integrity
Must have a pleasing personality.

Position Barista
Reports to Operations Manager
Supervises None
Job Description The Baristas are personnel who are like bartenders at the
bar, but a barista is usually found in the coffee shops. They are the
one who does the right mix of coffee to serve the customer. Their
obligation is to create a good coffee that would suit the taste of its
customers.
Detailed Duties:
Prepares coffee for the customer.
Receive inventory
Prepares purchase requisition.
Qualifications:
Candidate must have a high school or any vocational
diploma.
At least 1 year working experience in the related field.
Must not have any records of criminal/illegal offenses.

Position Kitchen Personnel
Supervises None
Job Description Kitchen personnel are the one who are in charge in the
kitchen to cook food for the customers. They are skilled workers
who give customers satisfaction.
Detailed Duties:
Set up a working station with then needed ingredients and
kitchen equipment.
Cook for the customers.
Create purchase requisitions to be ordered
Receives inventory
Qualifications:
Must have enrolled in college, preferably Hospitality
Management Course.
Knows how to cook many kinds of dishes.
At least 1 year working experience inside the kitchen or any
restaurant.
Must be a Filipino resident.

Position Waiters/Waitress
Supervises None
Job Description Waiters are responsible for taking orders, bringing food and
drink to the customers and take payment and change.
Detailed Duties
Providing excellent customer service to ensure satisfaction
Taking customer orders and delivering food and beverages
in a timely fashion
Making menu recommendations, answering questions and
sharing additional information upon request
Qualifications:
Candidate must possess at least a high school diploma.
At least 1 year of working experience in the related field.
Has a pleasing personality.

Code of Conduct
Employees have the primary duty to comply with the following basic standards of
conduct to office policies and work regulations.
1. Attendance
Attendance and punctuality are expected from all concerned in order to make
effective use of time and as a professional courtesy to others. Reporting on time means
working efficiently. Working hours start at 10 AM to 6 PM for first shift and 6 PM to 2
AM for the second shift. A grace period of 15 minutes is allowed for employees with
emergency matters to finish.
2. Integrity
Integrity, honesty and professional behavior are expected to be observed in all
dealings with customers, regulators, co-employees, and the public in general. Engaging in
fraud (directly or indirectly), or connivance and facilitation in committing fraud are not
tolerated. Employees must work following adhering to companys policies at all times.
3. Office Decorum
Decorum must be observed to promote harmony and respect within the PCB and
in dealing with customers. Employees should act with dignity when wearing the
companys uniform or corporate attire.
4. Responsible Behavior
Responsible behavior and courtesy both within the organization and in public
must be observed at all times. The way we deal with customers and our demeanor in
public significantly contribute to the public perception of PCB as a reputable restaurant.
5. Disclosure of Information
Building and maintaining trust is a basic part of our relationship with customers.
Unauthorized disclosure, use and passing on of sensitive/confidential information are
strictly prohibited. This applies to verbal, inferred or written disclosures. All
sensitive/confidential information obtained in the course of employment, engagement of
services or other work related with PCB must not be divulged unless authorized in
accordance with internal and regulatory requirements and must not be used for any
personal or financial gain. (confidentially, must include trade secrets, recipe and
processes which must embedded in this statement)
6. Acceptance/Solicitation of Tips, Gifts, and Bribery
Tips are usual in this type of business. It connotes that customers are satisfied to
the service they received. Generally, all tips are centralized. It must be placed in a jar and
at the end of the day, it will be distributed equally to all employees who worked for the
said day. On the other hand, employees, suppliers, partners and other 3rd parties are not
encouraged in giving or receiving gifts or entertainment if these might improperly
influence the recipients decision making or might be perceived to do so. They must not
also offer or take any form of illegal or improper payment. Bribery and kickbacks to
obtain favors are not tolerated in the company.

7. Conflict of Interest
Managers and employees should act in a manner that will serve the best interest of
PCB and its management. This requires that all business decisions and actions must be
aligned to the principles and values of PCB, and should not be driven by personal
motivations or influenced by personal relationships which may interfere in the exercise of
objective and independent judgment.
Disclosures against possible or perceived conflict of interest, may include, but
need not be limited to the following:
A. Interest in businesses
Any financial interest or management participation of an immediate
family member in the business of a supplier, competitor, or customers, whether
publicly- listed or privately held, should be disclosed.
B. Employment or engagement of services
Engagement by a supplier, contractor, or customer's business as a director,
adviser, officer, employee or consultant needs to be disclosed and requires
approval of PCB. Similar engagement of an immediate family member (parent,
brother, sister, spouse, child) shall likewise need to be disclosed.
C. Employment in another entity or in political office
This includes disclosure on engagement in another occupation or holding
concurrent position in a government, or political office or agency.

D. Political Activity
The company will maintain a neutral view on political issues and will
exert tolerance as to employees involvement in any political party or
participating/engaging in a political campaign as long as it will not violate other
peoples rights
E. Relatives/Next of Kin
Disclosure should be made when a superior or employee has a relative
employed in PCB. This is to ensure that management has knowledge as to the
lines of authority of the involved employees to avoid connivance and any other
infractions tolerated by either of the persons involved.
Next-of-kin relationship should also be disclosed when it begins to exist
with another employee where one exercises superior-subordinate relationship or
control relationship with the employee. For relationship developed within the
company, the involved employees must not do acts that will affect the companys
image and the fulfilment of their tasks such as Public Display of Affection or
abandonment of work due to the said relationship.
Directors and employees are responsible for identifying, assessing and
managing conflicts of interest whether actual or potential that arises in their day to
day work. Full disclosure of any conflict of interest should be made on an annual
basis or as necessary.
8. Outside Employment
Full time employees should not take up any outside employment. Written
approval of the General Manager is required prior to acceptance of outside employment.
The following scenarios are covered:
Part-time jobs:
Teaching or tutoring
Consultancy
Private practice of a profession
Other similar activities that affect the availability of employees
Approval, which must be in writing, may be given to take up part-time
employment and other similar engagements only in circumstances where the interests of
PCB will not be prejudiced.
9. Reporting Internal Fraud, Breach of the Code, or Other Unethical/Illegal Activities
PCB believes that the key to long-term sustainability and success largely depends
on having a good name and solid reputation in the industry. Any employee who becomes
aware of any violations of law, regulations or policies should report the same to
appropriate authorities, with protection from reprisal and discrimination. Reporting of
violations should be done in good faith and without malice. This helps to promote and
maintain a culture of strong ethics, integrity, honesty, accountability and transparency.
All employees involved in the operations must report it to the Operations Manager and
desk jobs employees must report it to the Accounting Head, the Heads has the
responsible to relay it to the General Manager and to maintain the confidentiality of the
whistle-blower from retaliation.
10. Media Contact
Only authorized individuals or parties shall be allowed to contact or talk to any
representative of the media (print, broadcast, wires, and online) on PCB matters. All
inquiries or contacts made by the media should be referred to the General Manager.
Similarly, the unauthorized creation of unofficial social media account bearing the PCB
brand or corporate name is not allowed.
11. Treatment of PCBs Assets
PCBs assets (physical, financial or intellectual) may be used only for authorized
purposes. Managers and employees are also responsible for safeguarding PCBs assets to
prevent loss, theft, destruction or unauthorized use.
Any unauthorized use, or unnecessary access, or destruction of PCBs assets such
as funds, property, confidential data, information, equipment and/or systems, for personal
gain or for purposes of maligning or harming PCB, its owners, employees, and/or its
customers, or for any ill motive, including attempts thereto, shall be considered as a
violation of this Code and shall be dealt with accordingly.
13. Gambling, Drinking Alcoholic Beverages, Use of Prohibited Drugs

Gambling, drinking alcoholic beverages, use or sale of prohibited drugs, and other
similar vices, done during working hours and within PCBs premises are strictly
prohibited.
14. Compliance with Laws, Regulations and Internal Standards, Policies and Procedures
Managers and employees are expected to comply fully with appropriate laws and
regulations, as well as with the internal standards or policies and procedures of PCB.
They are individually responsible for complying with the spirit, not just the letter, of the
laws, regulations, and internal policies and procedures.
15. Fair Treatment of Customers
PCBs business is its customers. Therefore, managers and employees are
responsible in ensuring that customers are treated fairly in all dealings with them. The
minimum standards to ensure that customers are treated fairly are the following:
Communications are fair and not misleading.
Ensure that customers are given quality service.
Employees should only market and sell products and services, which
have been approved for sale.
Products and services are suitable and appropriate, taking into account
the needs of the customers, their financial and risk profile and
objectives.
Complaints should be handled in a prompt, friendly, fair and effective
manner.
16. Relationship with Colleagues
Managers and employees are expected to treat others with dignity and with utmost
professional respect and courtesy regardless of differences, positions, ranks, ages, or
other types of distinctions.
17. Respect for Community and Environment
Managers and employees should promote actively PCBs corporate social
responsibility and care for the environment through the initiatives and partnerships with
civil society, governments and other stakeholders. They also have to recognize their role
to be involved in community-related issues and activities as a way of giving back to the
communities in which they operate.
Code of Discipline
Staff shall conduct themselves in a manner which reflects PCB positively, by working
cooperatively to achieve the objectives. Staff shall fulfill their functions in a diligent and
competent manner with due regard for the value and principles contained in the mission
and vision of the company. Any infractions cited below constitutes disciplinary sanctions
Class A Offenses
Below are serious offenses that will constitute immediate dismissal of employee
committing the said infractions:

1. Theft, fraud, forgery, bribery, corruption, making false statements, and other
seriously dishonest practices, including fraudulent or dishonest time-keeping;
2. Sexual harassment or indecent assault;
3. Insubordination gross or serious or with serious aggravating circumstances;
4. Willful damage to Company property or property of other employees; and
5. Gross negligence or dishonesty.
6. Breach of confidentiality
Class B Offenses
Below are offenses that will constitute to disciplinary sanctions. If aggravated, this
may also lead to the dismissal of employee:
1. Tardiness or coming in the office late than the exact time of duty.
1st offense Written warning
2nd offense Three days suspension
3rd offense One week suspension
4th offense Dismissal
2. Not wearing proper or prescribed uniform

4th offense - Dismissal
3. Being in possession of or under the influence of alcohol or alcoholic beverages or
substances, or any substance having a narcotic producing effect, or having alcohol
smelling on the breath during working hours, or having consumed alcohol
beverages or any substance having a narcotic producing effect during working
hours or prior to reporting for duty.
2nd offense One week suspension
3rd offense Dismissal
4. Offensive behavior, disorderly behavior, insulting, aggressive, or abusive
language or behavior, discriminatory language or insults, racism or racist
language or insults, discriminatory language or behavior on arbitrary grounds,
victimization, swearing or foul language of any sort use of vulgar or abusive
language, etc.

5. Unauthorized or unexplained absence without leave for more than 5 days
(AWOL)
6. Intimidation or inciting employees to any form of defiance of management
authority, including to violence or act such as strike
7. Acceptance of gifts and/or tips from customers
4th offense - Dismissal

8. Refusal, or neglect, or failure to carry out, any authorized instruction in respect of
normal work process, policy or procedure, or work performance standard.
9. Non-disclosure of information that may affect the PCBs image and operations
10. Outside employment without approval from General Manager
Due Process
Such as the gravity of the class A and B offenses, a due process is to be properly
executed to the employee who committed the said infraction. Note that during this
course, Committee may give preventive suspension to the employees involved of the
offenses to avoid occurrence of the same.
1. Administrative Investigation
Employee/s involved are called up for a hearing. The Committee consists
of the General Manager, Operations Manager and Accounting Head (if they too are
not involved in the case) who will interrogate the employee/s and get their opinion
toward the incident. This procedure must be documented in paper or thru video for
references during the deliberation of the Committee. For theft, which constitutes
criminal action, police blotter is needed to find an investigation from the authority.
Police investigation report may use during the deliberation of the Committee.
2. Deliberation of the Committee
After the Administrative Investigation, the Committee will deliberate the
hearing based on the facts gathered and the viewpoints of the employee/s. During this
process, the Committee may opt to call for the witnesses and/or whistle-blowers of
the incident that has transpired. The Committee, with the General Manager as their
Head may refer it to the lawyer as to applicability on the law and the sanction of those
infractions.
3. Sanction
If the Committee has proven that such act is a clear violation of the
companys policy per stated in this Code, corresponding sanction such as termination
and the like must be imposed. For employees proven otherwise, he/she will be
reinstated and will be back to work as soon as the Committee has advised. His/her
wage will be provided for those days he/she was given the preventive suspension.
Definition of Terms
The following are the relevant terminologies used in this study:
Chart of Accounts. Listing of all entity account names and numbers used by an
entity to determine each class of items. This list would ascertain uniformity in the
classification of the account when recording transactions. It is used to unionize the
finances of the entity and to segregate expenditures, revenue, assets, and liabilities to give
interested parties a better knowledge of the financial status of the entity.
Organizational Chart. Representation by which members of the organization are
organized graphically with their existing positions. It is used in the study to identify the
lines of authority among employees.
Business Documents. Significant papers used to be a source evidence of
transactions that happened inside the entity. These documents are accountable forms
utilized by the business in the ordinary course.
Journals and ledgers. Books of accounts where the transactions are consolidated
and serve as a basis for creating financial statements. The employees use this as a
reference in combining the reports regularly.

Internal control. Consists of rules and regulations established by the personnel in
an entity to serve as a guide to operating the business. The purpose of this is to safeguard
assets and to ensure that all employees are working properly.
Flowchart. A presentation where you can see how a particular process operates in
an entity. It consists of boxes and other diagrams to represent a business, file and other
compositions
Financial Reports. They are the final documents which serve as a guide in
decision making. They are the consolidated file that is used to be the topic of discussion
in a business meeting.
Business Machines. These are machines used in operation. These are necessary
equipment needed to ensure that the business activities are working operationally.
Chapter II
METHODOLOGY
Research Design
This study deals more with designing of Accounting System for the benefit of a
Mixed Service/Merchandise entity with an integration of Accounting Software such as
Quickbooks, SAP, Oracle, etc. Just like how a system is defined, an accounting system is
a basis for operating a business. Some of which are computer generated in tracking
business activities with information technology. This innovative thing is a helpful tool in
creating an idea of how the system works within the chosen entity especially to the
subject of this study which is the PCB. This study encourages the business entrepreneurs
engaging this type of business to have good system in operating their business. This will
be enhanced by installing an accounting software for them to have a computer based
records and for the security of their important business information and more importantly
their transactions to be secured as they are doing their daily operations.
The content of this study may include ideas and important information that could
lead you to favorable and unfavorable conclusion for this study is basically structured
though the ideas of the researchers based on the given reasonable information and
objective data.
Participants
The participants of this study are the business entrepreneurs who are engaged in a
service/merchandise mixed type of business. Entrepreneurs that owns a public or a
private business. They are the primary participants in this study for they are the ones who
usually engage in decision making inside the business. Other participants include the
Operations Managers, Finance Managers and even Supervisors may be considered. This
study is intended for these people for they will most likely use this study in the future for
the enhancement of their business.
Procedures
This study is started from gathering of data from the chosen entity which is the PCB. The
data were gathered from one of its supervisors present. The gathered data were deemed
limited due to business' confidentiality. After the gathering of data, its analysis is whether
what type of business it is and what is composed of. In analyzing the business comes the
idea of creating an accounting system which is the main purpose of this study with
integration to an accounting software.

Chapter 3
RESULTS, DISCUSSIONS, AND IMPLICATIONS
The Manual
The manual represents and illustrates the accounting system, methods, procedures, and
standards followed in accumulating, classifying, recording business events and
transaction for PCB.
Objectives of the Manual.
1. To serve as the fundamental reference as a source of information
(financial and non-financial) necessary for the management and other intended
parties
2. To facilitate proper flow of transactions and events occurring in the
course of the business and which are important considerations in management's
decision-making.
3. To achieve the different routinary administrative activities like billing,
paying, receiving and procuring.
To define the responsibilities and liability to be assumed by each
employee, thereby establishing different accountability for each transaction and
minimize anomalies within the organization.
Internal Control
To safeguard companys assets is to establish a strong internal control system.
Through internal controls, the risk of material misstatements, errors, and frauds could be
prevented promptly.
Internal controls provide policies and procedures on how to conduct the business
accordingly. It also involves information communications and employees roles and
accountabilities to work assigned. It is designed to avoid redundancy in the system and
duplication of employees tasks as well.
Also, internal controls set for all accounting procedures and allow the company to
keep records, manage and arrange financial transactions. With an efficient internal
control system, management can make suitable judgments and accurate projections for
the entity.
An internal control system is proven to be effective when all transactions are
accounted for: all cash are deposited intact on the day the payment is received, and
suppliers as well are satisfied with regular payments. Also, part of it is meeting regulatory
requirements and complying with legal mandates; so as avoiding penalties and illegal
operation.
Effective internal controls are depending on the personnel implementing it.
Connivance and irregularities are prevented when tasks are delegated in a manner that
one knows that he/she is accountable to his/her assignment. And that he/she knows
his/her worth as stakeholder of the company.
Flowcharts Symbols
Flowcharts are used in designing and documenting complex processes or programs.
Like other types of diagrams, they help visualize what is going on and thereby help the
viewer to understand a process, and perhaps also find flaws, bottlenecks, and other less
prominent features within it. There are many different types of flowcharts, and each type
has its repertoire of boxes and notational conventions.
The following illustrations are different from the basic flowcharts people often seen,
and it is called Account Flowcharts. Those flowcharts are primarily based on the
accounting procedures or process. This accounting flowchart depicts the flow of data in
an organization. Accounting flowchart lists various components and users or
authorizations involved in the system. It is based on the accounting process and thus
includes specific factors to describe the accounts in a better way. It has all the facilities to
deal with financial, revenue purchase, sales, sales return, purchase return payroll, etc.
That are used in almost every accounting process.
Accounting Flowcharts are helpful in figuring out the bugs of the system or helps us
to understand the following changes required from time to time. It is also useful in
ascertaining he security lapses in the accounting system. Moreover, in future, if you want
to upgrade your system then we can easily do so with the help of an accounting flowchart
as one can quickly understand the existing system and its functioning.
Below are the relevant flowchart symbols used in this system:
Name Symbol Description
Denotes a manual
Manual Operation operation, one which
requires an operator
A printed document or
Document report, used to show as
either input or output
Represents journal and

Input/Output
book of accounts
An input of data on cards

Punched Card or an output of information
on cards
Denotes the beginning, end

Terminal or Interrupt or point of interruption in a
program
An entry or exit to a part of

On page connector
the flowchart
Table 1 Symbols used in Flowcharts

GENERAL ACCOUNTING PLAN
TRANSACTION
CASH RECEIPTS ACCOUNTS PAYABLE PETTY CASH ADVANCES FIXED ASSETS PAYROLL OTHERS
CYCLE
PReq
TR PO PCV CAS PReq TC
Other
SOURCE
DOCUMENTS TRS CS PCL OS RR PS
RR
SUMMARY REPORT DCPR PCRR CV PR
BOOK OF ORIGINAL CRJ PJ CDJ CDJ CDJ GJ GJ
FINANCIAL
GENERAL LEDGER TRIAL BALANCE
STATEMENTS
SUBSIDIARY LEDGER A/P FA
Figure 3.1 General Flowchart

Legend
TR Tape Receipt TC - Time Card
TRS- Tape Receipt PS - Pay Slip
DCPR Daily Cash Position Report PR - Payroll Register
PReq- Purchase Requisition
PO Purchase Order CRJ - Cash Receipts Journal
CS Canvass Slip PJ - Purchase Journal
RR Receiving Report CDJ - Cash Disbursement Jo
PCV Petty Cash Voucher GJ - General Journal
PCL Petty Cash Log A/P - Accounts Payable
PCRR Petty Cash Replenishment Report FA - Financial Assets
CAS Cash Advance Slip CV Check Vouch

Flowcharts with Procedure and Policies
Cash Receipts.
Policies.
1. The receiving, recording of Cash Receipts in the Cash Receipts
Journal and depositing of money should be done by separate persons. The
cashier is the responsible for the receiving of cash and preparing the Tape
Receipt Summary together with the Daily Cash Position Report. The
Accounting Head is in charge of the checking, and the Bookkeeper is
responsible for recording and filing the tape receipt summary and the
validated daily cash position report.
2. The cashier is the authorized person to issue tape receipts for all
cash received. Receipts should be in duplicate.
3. A duplicate of the tape receipt summary should be forwarded to
the general manager along with the cash collected at the end of the day.
4. Safeguarding cash before a deposit is the responsibility of the
general manager.
5. All cash received should be deposited to the bank at the end of
the day by the general manager. Cash collections received after 3 PM or

after the banking hours should be kept inside the safety vault and should
be deposited at the first hour of the next banking day.
6. Recording of all cash receipt transactions should be done by the
bookkeeper
Cash Receipts
CASHIER ACCOUNTING HEAD BOOKKEEPER
START Records and files

Compares Tape validated tape
Receipt Summary receipt summary
and validated
daily cash position
Prints report
tape
Customer
receipt in
duplicate
Validated Tape
2
Receipt Summary File by
Tape Receipt 1 date
Validated Daily Cash
Position Report
Prepares Tape
Receipt Summary
and Daily Cash
Position Report
END
Tape Receipt
Summary
Daily Cash
Position Report
Figure 3.2 Flow of Cash Receipts in the Business

Procedures.
All cash paid by the customers is received by the cashier.
The cashier issues tape receipt in duplicate. One copy is kept by
the cashier, and the other one is given to the customer.
At the end of the cashier's shift, the cashier prepares tape receipt
summary and daily cash position report in duplicate. All cash received
during his/her shift supported by a single copy of the tape receipt
summary, and the daily cash position report is forwarded to the general
manager.
The general manager reconciles and validates the cash received
from the cashier with the tape receipt summary and daily cash position
report.
The general manager deposits cash sales at the end of the day or
the first hour of the next banking day.
The Accounting Head forwarded one copy each of the validated
deposit slip and validated daily cash position report together with the
validated tape receipt summary to the bookkeeper.
The bookkeeper records them and uses them for bank
reconciliation purposes. The documents are then filed by date.

Payroll.
Policies.
The employee's personal files should be updated whenever there
are changes like retrenchment, resignation, promotions, dismissals, the
hiring of new employees, and changes in salary rates.
Employees shall be provided with time cards to track the number
of hours worked.
Missing entries in the time cards, as well as reporting to work
without uniform will be considered absent.
Wages and salary rates shall be equal or better than those
prevailing in the community for jobs in a comparable industry requiring
similar skills and experience.
Employees are paid manually.
Payroll sheet must be prepared two (2) days before pay day
showing the employee's name, regular pay, overtime pay, holiday pay.
Deductions such as under time, reporting to work late, withholding taxes,
SSS, and Philhealth contributions.
Payroll dates.
1st payroll will fall on the 15th day of the month covering the
period starting the 28th day of the previous month until the 12th day of the
month.
2nd payroll will fall on the 30th day of the month covering the
period starting the 13th day of the previous month until the 27th day of the
month.
If payroll dates fall on weekends, payroll shall be made on Fridays.
The employees' earning records must be updated to comply with
the year-end BIR
Requirements.
a. Regular Employees
1. Employees are required to comply eight (8) hours of work per,
with one (1) rest day per week. Working hours will be from 8 AM to 12
NN and resumes at 1 PM to 5 PM with 15-minute break periods for both
the morning and the afternoon working hours.
2. Employees are granted leave credits such as:
- Vacation leave (2.5 days)
- Sick leave (2.5 days)

- Emergency leave (3 days)
- Maternity leave (60 days)
- Paternity leave (7 days)

Payroll
EMPLOYEE OPERATIONS MANAGER BOOKKEEPER ACCOUNTING HEAD GENERAL MANAGER CASHIER
Accounting
START head verifies Encashment
Operations Bookkeeper
payroll Approves of checks and
Manager consolidates
register, Payroll distributes
signs time weekly time
payroll Documents payslip to
card cards
report, and employees
alpha list
Employee
punches
time card Prepares and
computes Payroll Register
payroll
register,
payroll report Payroll Register Payroll Report
Signed time and alpha list CASH
card Alpha List
Payroll Report
Payslip
Alpha List
Time Card
Payroll Register
Payroll Report
Signs
Alpha List
checks
Employees
Prepares
Check
voucher and
generates Issues and
payslips signs check CHECK
for payroll
Payslip 2
Payslip 1
Check
Voucher
Figure 3.3 Flow of Payroll in the Business

Procedures.
1. The Operations Manager signs and approved time card record
for the week.
2. The Bookkeeper consolidates each employee time card weekly,
which includes overtime, tardiness, and absences. Validates the summary
of time cards, and identifies employee/personnel entitled for payroll then
prepares Payroll Report, Alpha list, and the Payroll Register.
3. The Accounting Head verifies the Payroll Report, Alpha List,
and Payroll Register and sends it to the General Manager for approval
4. The General Manager approves all the payroll documents and
sends it back to the Bookkeeper.
5. The Bookkeeper then prepares Check Voucher and generates
two (2) copies of payslips one as an attachment for filing and the other
one is for the employees.
6. The Accounting Head will issue and sign the check for payroll
7. The General Manager will also sign the check.
8. The Cashier will encash the check and distributes the cash to the
employees together with their payslips.

Petty Cash Fund.
Policies.
1. A Petty Cash Fund amounting to P10, 000.00 is established, and
the account shall be operated under the imprest basis.
2. The fund is maintained to cover the day to day cash
expenditures of not more that 1,000.00 and must not be used for frequently
purchased items.
3. The cashier (PCF custodian) must be the only person who would
have access and responsibility for the fund.
4. Disbursements out of the fund shall be covered by a petty cash
voucher, and only vouchers signed by the approving officer shall be paid
by the cashier.
5. Petty cash vouchers must be sequentially numbered and be kept
and handled only by the cashier.
6. A designated employee should conduct a surprise review of
petty cash to the fund. The petty cash custodian must at all times be ready
to present the fund for physical count and audit by authorized person(s).
7. The Petty Cash Fund shall be kept in a vault for safekeeping.

8. A petty cash fund should be replenished when total expenditures
from the account reached 90% of the total fund.

Petty Cash Disbursement
EMPLOYEE CASHIER BOOKEEPPER
Validates
START Bookkeeper
Cashier Official receipt
updates
checks and prepares
General
request petty cash
Ledger
voucher
2
Reimbursement Petty cash
of petty cash? requisition Petty Cash Voucher 1 General
slip Journal
No Yes
Petty cash Employee fills

Official Employee Bookkeeper
requisition up and signs
Receipt files
slip petty cash
documents
voucher
Cashier releases
the amount C
requested, and
stamps all the
documents
PAID
Petty Cash
Voucher
Official Receipt
Figure 3.4 Flow of Petty Cash Disbursement in the Business

Petty Cash Disbursements.
Procedures.
The Petty cash disbursement comes in two ways:
Reimbursement.
a. The employee requests for reimbursement of the petty expenses
(less than P1, 000.00) incurred and surrendered the OR to the Cashier.
b. The cashier validates the official receipts and prepares the Petty
Cash Voucher (PCV), accomplished in duplicate.
c. The employee who requested for reimbursement attaches his
signature in the PCVs.
d. The Cashier releases the amount requested, stamps all the
documents PAID and files the OR with the second copy of the PCV and
forwards the first copy of PCV to the bookkeeper for filing.
e. The bookkeeper updates the General Ledger and General Journal
files the document by date.
Petty Cash Paid in Advance.
a. The employee prepares fully accomplished petty cash requisition
slip.
b. The cashier checks request and give the employee the cash
needed.
c. The employee will submit official receipts to the Cashier.
d. The cashier validates the official receipts and prepares the Petty
Cash Voucher (PCV), accomplished in duplicate.
e. The employee who requested for reimbursement attaches his
signature in the PCVs.
f. The Cashier stamps all the documents PAID and files the OR
with the second copy of the PCV and forwards the first copy of PCV to
the bookkeeper for filing.
g. The bookkeeper updates the General Ledger and General
Journal files the document by date.

Petty Cash Replenishment
Cas hier Bookkeeper Accounti ng Ma nager Genera l Ma nager
OR
Start
A
PCRR
OR
Prepares
PCRR based PCRR
on PCV s
with Check
supporting Voucher
Review the App roves
OR
documents
and signs Ch eck
and prepares
the check
the check
voucher
OR
PCRR
Signs the
OR
check
PCRR for
enca shment
OR Check
Voucher
PCRR
Check
Voucher
OR
PCRR
Prepares Check
the Check Voucher
based on
supporting Ch eck
documents
OR
PCRR
Check
Voucher
Ch eck A
OR D
PCRR
Check
Voucher
Ch eck
Encas h
the
Check
Figure 3.5 Flow of Petty Cash Replenishment in the Business

Petty Cash Replenishment.
Procedures.
1. The Cashier prepares the Petty Cash Replenishment Report
(PCRR) based on the PCVs together with the supporting ORs and
forwards it to the bookkeeper for checking.
2. The Bookkeeper prepares Check Voucher supported by the
PCRR, OR and PCV and forwards it to the Accounting Manager.
3. The Accounting Manager stamps the Check Voucher "PAID"
and signs the Check, and forwards it to the General Manager.
4. The General Manager checks the disbursements and signs the
check for encashment.
5. The Cashier forwards the CV, PCRR, and OR to the bookkeeper
for filing and encashes the check for replenishment.

Advances to Employees.
Policies.
1. The Cash advance slip should be pre-numbered.
2. Cash Advances are not allowed if an employee has outstanding
advances.
3. Advances should be approved by the general manager.
4. Employees must fill up the cash advance voucher as evidence
for recording purposes.
5. Cash advance vouchers must be stamped "PAID" upon
deduction from the employee's salary.

Cash Advance to Employees
Employee Bookkeeper Accounting Manager General Manager Cashier
Cash Advance
START Cash Advance Cash Advance Cash Advance
Voucher
Voucher Voucher Voucher
Prepares
Cash
Advance
Voucher
Outstanding Verifies Approves Prepares Check
credit Cash Cash Voucher and Check
balance Advance Advance
No Yes Voucher Voucher
Cash Advance
Voucher Pay the
outstanding Cash Advance Cash Advance Cash Advance
balance Voucher Cash Advance
Voucher Voucher Voucher
B
Check Voucher
Cash Advance
Voucher
Check
Receives Check Voucher

check
voucher A
and
check
Cash
D
Advance
Voucher
Check D
Voucher
Phase
Check C
Figure 3.6.1 Flow of Cash Advance to Employees in the Business

Cash Advance to Employees
Accounting Manager General Manager
Cash Advance
A Voucher
Check Voucher
Check
Verifies
Check
Voucher
and Approves
Check Check
Voucher
and
Check
Cash Advance
Cash Advance
Voucher
Voucher
Check Voucher
Check Voucher
Check
Check
Figure 3.6.2 Continuation of Flow of Cash Advance to Employees in the Business

Procedures.
1. An employee prepares cash advance voucher indicating the
desired amount.
2. Bookkeeper checks if the employee has an outstanding balance.
If an employee has an outstanding balance, then the employee must pay
first before availing the cash advance.
3. The Accounting Manager verifies the cash advance voucher.
4. The General Manager approves the cash advance voucher.
5. The Cashier prepares for the Check Voucher and Check.
6. The Accounting Manager verifies the Check Voucher and signs
the check.
7. The General Manager approves the Check Voucher and signs
the check.
8. The Employee receives the check and signs the Check Voucher.
9. The Bookkeeper files the Check Voucher and cash advance
voucher by date
Purchase Returns
Kitchen Personnel/Barista Operations Manager General Manager Bookkeeper- Accounts Payable
2
Start
Purchase Requisition
Purchase 1
Return Slip
Debit Memo
Picks
returned Compares
goods and purchase
prepares return slips
purchase Compares
with actual
return slips Approves Purchase
goods
Purchase Return Slip
Requisition with Debit
Memo
2
2
Purchase 1
Purchase 1 Return Slip Purchase Return Slip
Return Slip 2
2
1 Debit Memo
1

Prepares adjusting
entry in journal
voucher
D
Debit Memo Journal
D Supplier Voucher
System
Figure 3.7 Flow of Purchase Returns in the Business

Purchase Returns.
Procedures.
1. Kitchen Personnel/Barista picks returned goods and prepares
purchase return slips.
2. Operation Manager compares the purchase return slip with the
actual goods to be returned.
3. General Manager approves the purchase requisition with the
purchase return slip.
4. The Operations Manager sends the purchase return slip together
with the actual goods to be returned to the supplier.
5. The supplier will issue a debit memo.
6. The Bookkeeper compares the debit memo with the purchase
return slip. Once done, the Bookkeeper prepares to adjust entry in the
journal voucher system.

Purchasing
Kitchen Personnel Operations Manager General Manager
START
Purchase Requisition Purchase Requisition
Canvass Slip Canvass Slip
Prepares
Purchase
Requisition
and Canvass
Slip
Verifies
Purchase Approves
Requisition Purchase
and canvass Requisition
slip and and Canvass
recommends slip and
supplier recommended
supplier
Purchase
Requisition
Canvass Slip
Canvass Slip
Canvass Slip
Figure 3.8.1 Flow of Purchasing Inventory in the Business

Purchasing
Operations Manager General Manager Bookkeeper
A
Canvass slip
Purchase Order
Canvass Slip
Prepares
Purchase
Order Purchase Order
Approves Records
Purchase Requisition Purchase Purchase
Order Order
Canvass Slip
Purchase Order
Canvass Slip PJ
Canvass slip
Purchase Order
Supplier
D
Purchase Order
D
Figure 3.8.2 Continuation of Flow of Purchasing Inventory in the Business

Purchasing.
Procedures.
1. Kitchen Personnel prepares purchase requisition and canvass
slip, in duplicate copies.
2. The Operations Manager verifies the purchase requisition and
canvass slip and recommends the supplier.
3. The General Manager approves the purchase requisition,
canvass slip, and the recommended supplier.
4. The Operations Manager prepares the purchase order, in
triplicate copies.
5. The General Manager approves the purchase order.
6. The supplier receives the purchase order.
7. The Operations Manager files a copy of the purchase requisition,
canvass slip, and purchase order.
8. The Bookkeeper records in the purchasing journal and files a
copy of the purchase requisition, canvass slip and purchase order by date.
Receiving
Kitchen Personnel Operations Manager Accounting Manager Bookkeeper
START Checks Counterchecks

ordered ordered goods
goods with with actual
actual goods goods received Receiving Report
received
Receives
ordered
goods and
checks
ordered
goods
Encodes Receiving
Report
2
1
Receiving Report Receiving Report
D
Prepares
Receiving
Report and Purchasing and
attaches Receiving System
Delivery
Receipt Verifies
receiving Counterchecks
report receiving
report
2
1 2
1
Receiving Report
Receiving Report
Receiving Report
Figure 3.9 Flow of Receiving Inventory in the Business

Receiving.
Procedures.
1. The Kitchen Personnel receives and checks the ordered goods
from the supplier. The Kitchen Personnel prepares to receive the report, in
duplicate and attaches the delivery receipt.
2. The Operations Manager checks the ordered goods with the
actual goods received and verifies the receiving report.
3. The General Manager counterchecks the ordered goods with the
actual goods received and checks the receiving report.
4. The Bookkeeper encodes receiving a report to the purchasing
and receiving system and files the documents by date.

Bank Reconciliation.
The Cash general ledger account contains financial information regarding
collections from the customer, disbursement of checks and other cash
transactions. The account is linked with the bank records. After each month ends,
the bank usually delivers a bank statement to the company showing the financial
data concerning the company checks, deposits, service charges and collections
made. When the company receives the bank statement, the company should verify
the list against the book records. This process of confirming amounts is referred to
as a Bank Reconciliation. This is to ensure that the amount of cash reported in the
company's books as consistent with the amount shown on the bank statement.
Policies.
1. The Bookkeeper must prepare a monthly bank reconciliation
based on the bank statement received from the bank.
2. A valid bank statement must be authenticated and duly signed
by the authorized representative of the company's bank.
3. The Bookkeeper must carefully examine the amounts recorded
in the ledger with the lists of the bank. Any differences in the cash balance
must be verified immediately.
4. Adjusting entries for credit and debit memos and book error
must be recorded in the books.

5. The related statement of bank reconciliation and bank statement
should be filed properly by the bookkeeper.
Bank Reconciliation
Cash per books xxx
Add: Credit memo xxx
Less: Debit memo xxx
Non-sufficient fund checks xxx
Bank charges xxx
Book errors xxx
Adjusted Cash Balance xxx
Credit memo items not representing deposits credited by the bank to the
account of the depositor but not yet reflected in the books. Example notes
receivable, proceeds of bank loan and matured time deposits.
Debit memo items not representing checks paid by the bank, which
charged or debited by the bank to the account of the depositor but not yet
recorded in the book as cash disbursement. Example NSF checks and bank
service charge.
Book error errors in the company's cash account result from entering an
incorrect amount, entering a transaction that does not belong in the account, or
omitting a transaction that should be in the account.
Fixed Assets.
Policies.
1. All PPE acquisitions, disposals, retirement, transfer,
dismantlement, and abandonment should be requested by an authorized
person and should be accompanied by capital budget.
2. A funding approval for PPE acquisition should be approved by
the general manager, classified and recorded in the proper accounting
period.
3. All PPE should be handled with care, should be used by
authorized personnel and for business purposes only.
4. All fixed assets should have serial numbers based on the
database.
5. All insurable PPE should have adequate insurance coverage.

6. PPE records should be maintained and checked quarterly with
the control accounts, and material differences should be investigated.
7. Land should be appraised every five years by an independent
appraiser.
Depreciation.
Policies.
1. All PPE should be depreciated, except for land.
2. The method of depreciation to be used should be straight line
method.
3. The estimated useful lives and salvage values of all depreciable
assets should be based on professional judgment.
4. New information that proves the inaccuracy of previous
estimates of the depreciable assets' useful lives should be accounted for
changes in accounting estimates.
5. Extensions to the useful lives of depreciable assets due to repairs

should be capitalized.
Accounts Payable.
Policies.
1. An Accounts Payable ledger control account should be maintained
and regularly checked against balances in the subsidiary ledger by
the Bookkeeper.
2. Account Payable ledger records should be kept by the Bookkeeper
of the receiving of goods, invoice authorization and payment
routines.
3. Statement from supplier should be checked against Purchase ledger
account.
4. Checks and Electronic payments should should be correctly
authorized.
Recording of Transactions.
For all business, recording accounting transactions is important in order to
keep track of and understand the financial health of the company.
Internal Control Objectives:
To ensure that all transactions are timely and properly documented and
recorded in the appropriate books of accounts.
Policies.
Recording Phase.
i. The appropriate documents evidencing business transactions are
prepared or received. This documentation provides the basis for
making an initial record of each transaction.
ii. Financial transactions are recorded in chronological order in the
books of original entry based from supporting documents such as
official receipts, cash vouchers, and journal vouchers.
iii. Each financial transaction as classified and recorded in the journal
is then posted timely and properly to their appropriate accounts in
the General Ledger.
Summarizing Phase.
iv. At the end of the year, adjusting entries to correct and update the
accounts shall be prepared, recorded and posted.

v. Balances of all the accounts in the General Ledger are then
extracted in the Trial Balance shall be prepared. It serves as a
check on the accuracy of recording and posting.
vi. Financial statements summarizing operations and showing the
financial condition shall be prepared from the information taken
from the Trial Balance.
Clearing or Preparatory Phase.
vii. Temporary or nominal accounts shall be closed.
viii. A post-closing Trial Balance shall be taken to determine the
equality of the debits and credits after posting and closing entries.
ix. To facilitate recording and adjusting routines in the succeeding
period, accruals and prepayments which were established by
adjusting entries shall be reversed.
x. Entries in the books of accounts shall be made in ink. Any erasures
shall be countersigned by the accountant in charge of handling the
records.
xi. Entries in the books of accounts shall be made in ink. Any erasures
shall be countersigned by the accountant in charge of handling the
records.
Business Forms
Introduction.
In an accounting system, documents such as business papers and forms are
essential to gather, process, store and give information. Business papers and forms
are written documentations or evidence of transactions which are used in the
following manner:
To serve as a basis for recording transactions.
To provide a historical record of completed business transactions.
To provide a uniform means for transmitting information, and
To fix responsibility for the creation, recording or completion of the business
transactions.
The company uses documents to communicate, transact business and
analyze its productivity. The use of the business papers and forms is needed to
maintain an effective internal control. It helps the personnel in charge of handling
and recording of transactions to perform their duties and responsibilities legibly
and with integrity. It helps both the users of financial information and the
management of essential information. Business papers and forms should be
presented in good form for the transaction to be easily understood. Some of them
are prepared by employees and business owners, while others are drafted by
professionals from outside the company, such as accountants and lawyers.

Figure 4.1 Check Voucher
Figure 4.2 Purchase Requisition Form
Figure 4.3 Purchase Order
Figure 4.4 Receiving Report
Figure 4.5 Canvass Slip
Figure 4.6 Cash Advance Voucher
Figure 4. 7 Tape Receipt Summary
Figure 4.8 Payroll Register
Figure 4.9 Payslip
Figure 4.10 Time Card
Figure 4.10 Petty Cash Voucher
Figure 4.12 Petty Cash Replenishment Form
Book of Accounts
In today's time, some form of documentation usually supports business
transactions. These source documents, as they are called are the books of account. It
refers to the records or books in which all financial information about a business or entity
is recorded and maintained. Books of accounts are essential to a business' decision
making, strategies formulating, evaluating the financial performance and making sure
that business is complying with the rules of regulatory bodies. In this study, the books of
accounts are based on the software that was installed.
Books of account are a part of every business. It is important for it provides
information from raw data which are the source documents. These books of account are
needed in creating the financial information, which is the Financial Statement, to be
presented or to be given to the primary and secondary users. For business or taxpayer
engaged in the sale of goods or properties, it is required to maintain at least six books of
account - General Journal, General Ledger, Cash receipts journal, Cash disbursements
Journal, Sales Journal, Purchases journal.
General Journal. Where double entry bookkeeping entries are recorded by
debiting one or more accounts and crediting other one or more accounts with the same
total amount.
Cash Receipts Journal. The journal where you record all cash that has been
received.
Cash Disbursements Journal. The opposite side of the cash receipt journal. It is
the journal where you record all transactions where cash has been paid out.
Purchases Journal - It used to record all purchases of inventory on credit.
General Ledger - contains summarized information about all of an organization's
business event data.
Accounts Payable Subsidiary Ledger. A type of accounting ledger that is kept
separately containing the accounts of all of a company's creditors. It shows the
transaction history and amounts owed separately for each supplier from whom the
business receives credit for purchases.
Fixed Asset Subsidiary Ledger. An accounting ledger that provides a listing of
fixed assets and related information such as acquisition date, depreciation method, useful
life, historical costs, accumulated depreciation, fixed assets general ledger account and so
on. It is used to manage purchasing, sale, allocation and retirement of fixed assets.
Chapter IV
CONCLUSIONS AND RECOMMENDATION
Conclusion
Having an unreliable manual recording and an unorganized flow of transactions in
the business could deal a lot of jeopardy. Again, here are some of the authorized
disclosures that are gathered from an authorized personnel. This business is basically
using the cash method of accounting where they only recognize cash receipts and cash
disbursements in their book of accounts. Any people inside the vicinity may receive the
inventory and just record them directly in their journal. Depreciation is not even
recorded. They do not establish any chart of accounts. These are the factors could really
harm the interest of the partners, not just their interest, but also the interest of the
employees inside it.
Based on the given data, the researchers have created a good control inside the
business, establish chart of accounts that is needed to create a financial statement, a pro
forma financial statement for them to use and for formality of the business, a flowchart
for their flow of transactions, lines of authority that serves as a basis for handling
transactions, converted their cash basis method of accounting into an accrual method of
accounting in order for the business to conform with the Philippine Financial Reporting
Standards ( though cash basis is acceptable but accrual basis is preferable), business
forms for their documentation, and even an installed accounting software for them to use
in their business which will be discussed in the next chapter.

The researchers have created the aforementioned things for them to use and those
came from a reliable information and data with a thorough study. In line with this, the
researchers concluded that this study will be beneficial to PCB and to the partners for
they can have a good start since they are only operation for about a year.
Recommendations
The researchers have gathered a lot of information and have created an
accounting system designed for PCB with an accounting software. Since there is
still a chance that this accounting system will not work, we recommend the
readers do the following:
Thoroughly identify some significant details that could be found in the flowcharts
and revise some of which that could suit your business' needs.
Provide additional controls that are needed by your business.
Study an accounting software first before using it.
Use an accounting software that could give you convenience.
Improve and provide additions in IT controls as possible.
Create Chart of accounts based on the company's needs.
Delete irrelevant account titles

Chapter V
PROPOSED PROGRAM/OUTPUT
Review of the Accounting Information System
Spreadsheets have been the key aspect for many years. Spreadsheet is likely used
in the older generation and with this spreadsheet system, a lot of fraudulent actions and
unreliable transactions occurred due to lack of security in the system. These are some of
the disadvantages of using a manual system of accounting but spreadsheets are still
considered to be vital within a business due to some of its advantages, which are the time
and the cost. The idea of having a spreadsheet is to organize information which the user
needs. Spreadsheets have been applied successfully in many, different fields to aid the
business in their operations.
Over the past 50 years, some different approaches or models have represented.
Accounting information systems. Each new design evolved because of the shortcomings
and limitations of its predecessor. An interesting feature in this evolution is that the
newest technique does not immediately replace older models. Thus, at any point in time,
various generations of systems exist across different organizations and may even coexist
within a single enterprise. Accounting itself is a system that people has been using for
thousands of years, the system records financial information about a person or business,
businesses use it in order to be able to keep and track their financial accounts and other
financial information in a safe and efficient way.
Thousands of years ago this information was engraved in rocks, books and other ways,
but it was very hard to keep record and access the accounts as the system becomes
complex. Before, people had to look for financial records in rooms or places where they
stored this information, it was time consuming and not efficient.
Nowadays with the implementation of new emerging technologies, the way businesses
keep this financial information has become computerized. At the moment businesses use
computers with a computerized accounting system in order to perform many other new
activities than what they were able to do in the past. Businesses can access financial
information from different department in the organization, access to the information
through computers and find financial data very fast, being more efficient. The modern
auditor needs to be familiar with the operational features of all AIS approaches that he or
she is likely to encounter. In summary, spreadsheets and manual system of accounting
still exist in todays time. Some of them are usually used by small entities who cannot
afford having an accounting software. This is usually used by large and medium
enterprises which needs an accurate accounting of transactions and a security for its
objectivity, reliability and security.

Installation of Accounting Software - Quickbooks
The Home Page.
This is the page that we can see after we log in our account into the Quickbooks. Here, we can see every
possible transaction that we need.
Figure 5.1The Home Page

Step 1: Creation of Chart of Accounts.
We can see in the upper left of the Home Page that there is chart of accounts. There is a need to create chart of
accounts before we start every transaction in this software.
Figure 5.2.1 Chart of Accounts

Figure 5.2.2 Continuation of Chart of Accounts
Step 2: Creation of Customer, Vendor and Employee Profile.
After creating chart of accounts, we need to create profiles for our customers, vendors and employees. We can
see at the top of this picture that there are vendors, employees and Customers Tab. Click it and Create for your own
business.
Figure 5.3.1 Customer Profile

Figure 5.3.2 Vendor Profile
Figure 5.3.3 Employee Profile
Step 3: Creation of Lists.
After we have created profiles, we need to formulate our lists. These lists are the basis of the transaction where
there are individual information for each item such as the price and the costs.
Figure 5.4.1 List of Item

Figure 5.4.2 Fixed Asset List
Step 4: Creating Transactions through Expenditure Cycle
Since we have initiated putting the primary information we need in the QuickBooks, we are now ready to create
transactions out of it. First of all is the purchasing cycle. The purchasing cycle composes of the ordering of items we need,
Receiving those items, Accepting the Bill and paying it.
Figure 5.5.1 Purchase Order

Figure 5.5.2Receipt of Inventory with Bill
Figure 5.5.3 Payment for Purchases
Step 5: Creating Transactions through Revenue Cycle
In this step, we will see the inflow of cash in the business. These cash are considered as the revenue of the
business since they are into cash basis. This is also the step where the depositing of the cash received happens.
Figure 5.6.1 Cash Sales

Figure 5.6.2 Deposit to Bank
Step 6: Reviewing Summary of Reports
So here, the reports that the software is generating, are the reports that happened during the transaction stage
(Revenue and Expenditure Cycle). Examples are the balance of Accounts Payable as of the particular date, the balance of
inventory, the bills that are outstanding and the job profitability of the business.
Figure 5.7.1 Summary of Accounts Payable

Figure 5.7.2 Summary of Inventory
Figure 5.7.3 Bill Tracker
Figure 5.7.4 Summary of Job Profitability
Step 7: Viewing the Financial reports
After every transaction that occurred in this software is automatically recorded and updated in the financial
statement. This is the good thing about having this software for we can update our standing as of today. We can also see how
much income we earned for this particular date. Other information is the flow of cash in the business that suits to answer the
question if where did the cash go.
Figure 5.8.1 Income Statement

Figure 5.8.2 Balance Sheet
Figure 5.8.3 First Continuation of Balance Sheet
Figure 5.8.4 Second Continuation of Balance Sheet
Figure 5.8.5 Statement of Cash Flows
Step 8: Formulating General Journals
The general journal we used in the manual system is just as the same if we use the Quickbooks. There is an
advantage in creating a general journal using a QuickBooks because the amount as of date of a particular account is always on
update.
Figure 5.9.1 Initial Investment

Figure 5.9.2 Continuation of Initial Investment
Figure 5.9.3 Acquisition of Equipment through Debt
Figure 5.9.4 Prepayment of Store Supplies
Figure 5.9.5 Prepayment of Office Supplies
Figure 5.9.6 Prepayment of Advertising
Figure 5.9.7 Loan
Figure 5.9.8 Purchase of Accounting Software
Figure 5.9.9 Prepayment of rent
Figure 5.9.10 Establishment of Petty Cash Fund
Figure 5.9.11 Petty Cash Replenishment
Figure 5.9.12 Expense an Office Prepayment
Figure 5.9.13 Expense a Prepayment of Rent
Figure 5.9.14 To Record Depreciation
Figure 5.9.15 Disbursement of Petty Cash Fund
Figure 5.9.16 To Record Salaries
Figure 5.9.17 Expense a Prepayment of Store Supplies
Figure 5.9.18 Partial Payment of Loan
Figure 5.9.19 Expense a Prepayment of Advertising
Case Study
Advantages, Disadvantages and Cost Constraint of Quickbooks.
The launch of QuickBooks in the Philippines has enabled companies to
work online and come up with the reports where all information needed by the
management is satisfied. However, the familiarity of using the software enables
the user to identify its limitations as to usage, complexity and all other issues.
Presented below are advantages and disadvantages, and cost constraints of using
QuickBooks.
Advantages.
1. Uses familiar applications, user - friendly
2. Produces good accounting reports
3. Do the calculations, results to accurate financial data
4. It saves time and money for a user, no tasks duplication.
5. Allows users to retrieve and manage large amounts of financial data.
6. Provides organized financial data and information
Disadvantages.
1. Expensive and costly for updates and modifications.
2. Software's audit trail cannot fully cover all financial transactions

3. Software has some new releases and features; it makes more
complicated to use.
4. Double entry and keying errors
5. Limited data file size
6. Some application lacks integration
Cost Constraints.
The accounting software is expensive and costly for a starting
small business. Adding up to the cost is the expenses that the company
will spend in modifying the system for suitability of the business. Any
updates or add-ons to the program may entail another cost that the entity
will bear.
Lines of Authority
Table 2. Lines of Authority
Classification Duties and Responsibilities
General Manager .
1. Approves payroll documents

2. Signs all checks for payment and for encashment
3. Approves cash advance voucher
4. Approves check voucher and check
5. Approves purchase requisition and canvass slip
6. Approves purchase requisition
Accounting Manager
1. Verifies payroll register, payroll report and alpha list
2. Issued check for payroll
3. Signs check prior to the General Manager signature
4. Issues check for all types of disbursements
5. Verifies cash advance voucher
6. Verifies check voucher and check
7. Counterchecks ordered goods with actual goods received and
Receiving report
Operations Manager
1. Signs in time card
2. Checks ordered goods with actual goods received
3. Verifies receiving report
4. Verifies purchase requisition and canvass slip
5. Compares purchase return slips with actual goods
Bookkeeper
1. Reviews the documents and prepares check voucher
2. Updates general ledger
3. Records all transactions to the general journal
4. Consolidates weekly time cards
5. Computes payroll register, payroll report and alpha list
6. Updates receiving report
7. Compares purchase return slip and debit memo
8. Files documents
Cashier
1. Prepares check voucher and check
2. Enchases the check for petty cash replenishment
Kitchen personnel/ Barista

1. Receives ordered goods and checks ordered goods
2. Prepares purchase requisition and canvass slip
3. Prepares receiving report
4. Picks returned goods and prepares purchase return slips
______________________________________________________________________________________
System Development
A responsive, user-oriented information system is a valuable asset of the modern
business organization. A well-designed system can increase business performance by
reducing inventories, eliminating non-value added activities, improving customer service,
and coordinating supply chain activity.
Most of the entities in today's time have advanced technology to have an
advantage over direct competitors. But some still have the traditional way of doing
accounting. Recording business transaction, ledger preparation, analyzing the process of
financial statements is the primary activities that we can see in business. But a change
would occur if we will introduce software and technologies into it. If companies will
adapt to an integrated accounting system, the outcome would most likely be accurate and
convenient for technology is already advanced to commit an error. A good accounting
system will yield for a continuous outcome. If it would be integrated with proper
planning, it would most likely have an advantage over the other existing businesses. It is
the reason why most of the existing industries became prosperous for they have a proper
planning and are flexible enough to adapt to changes and developments.
Phase 1: Systems Strategy.
The business needed a strategy for it to survive, and with this, it needs to
have a strong foundation before it must be operated. A plan for a system requires
a good understanding of the business. This understanding may be sourced out

from the mission statement of the company, analysis of the standing of the firm
with regards to its competitors and the current market condition. These sources
reflect the current position of the business with regards to its ability to survive in
the long run. Ergo, There must be a strategic plan to meet various and complex
needs of the users.
Phase 2: Project Initiation.
After the planning stage, there is an enactment of the scheme. It is where
the business is already starting to its operation considering the plan that has been
proposed in the first phase. It is the conceptualization of the design that has been
made, and evaluation of the strategic systems plan with regards to its feasibility
and cost-benefit characteristic. In this phase, the plan will be assessed if it would
use an in-house development or it would prefer to use commercial package or
both.
Phase 3: In-house Development.
It is sometimes called the manual system where it would create a system
that would suit the characteristics of the business. In this phase, there are only two
activities that will be considered (i.e. Construct the system and deliver the
system). The in-house development setup includes analyzing user needs,

designing processes and databases, creating new views, programming the
application, testing and implementing the completed system.
Phase 4: Commercial Packages.
We are currently in the phase four of development where there is already
an installation of software packages. This phase is the main focus of this study.It
is nice to have a manual system, but it is more beneficial if the company would
use software packages such as Quickbooks, SAP, and Oracle for they offer a
significant contribution to your business. A company can save time if they do
have this software package. Lower initial cost, shorter implementation time, better
controls, and rigorous vendor testing are some of the advantages that the software
packages possess. All of these benefits translate into cost saving for the user.
Having commercial packages entails risks because not all software would suit the
needs of your business. Therefore, choosing a suitable package is one of the
factors.
Phase 5: Maintenance and Support.
Maintenance involves both acquiring and implementing the latest software
versions of commercial packages and making in-house modifications to existing
systems to accommodate changing user needs. Maintenance may be relatively
trivial, such as modifying an application to produce a new report, or more
extensive, such as programming new functionality into a system. The feedback
loops from maintenance to
The project initiation and systems strategy steps, respectively, despite these
relationships.
Figure 6 Phases of Development
IT Controls
There are a lot of circumstances that we must expect. Such calamities and other
man-made activities that could sabotage business operations and its records. Although the
possibility for it to happen may be low, it could cause fatal to the business. If these
circumstances happen, the business will lose its data processing facilities and worse, the
whole business. To be ready, the business must have its IT controls to secure its data and
other confidential information to safeguard the reputation of the entity. The following are
the examples of IT controls that we might consider:
Physical Control.
The physical condition of the computers may be a cause of its destruction.
Data from the computers will be harmed once it is prone to disaster due to its
physical location. For example, if the computer center would be in the area near
the coast, there is a probability that computers will be washed away unexpected
high tide or a great tsunami would occur. Ergo, the business' data is at risk. Also,
computers must be in a suited temperature to prevent it from overheating. Air
conditioned room for computers is a must. The computers must be stored at a cold
temperature to keep it from overheating. Fire suppression must also be
considered.
Access.
Access to the computer and QuickBooks must be limited to the authorized
personnel only. Programmers and other employees who have access to the data
must be required to log on the record before signing into the computer. This
procedure is to prevent manipulation of business records. In our chosen entity, the
bookkeeper has the only access to the business information. If ever manager/s
would like to obtain information, he/she must record its access to the time of
login. The bookkeeper must not give any Username and password to any
unauthorized personnel.
Back-up and Recovery.
Unexpected circumstances might happen to the data. The safest way of
preventing these events to happen and to have a secured data is to have a backup
file to another computer. It is important to have a backup file and update it from
time to time in case fortuitous and human-made disasters would happen. This
method is to protect the records of the business.
Maintenance.
Computer maintenance must also be considered because computers are
depreciating every time. Sometimes it does not function well. So, it's better to
have it maintained in its good condition for the business records to be secured.
Simulation of Business Transaction
In today's world, business ventures had increased rapidly. No matter what
business one may have, it is important to keep track of the assets, liabilities, revenue and
expenses of an entity. Without good recording techniques, it would be difficult for the
business to keep track of their records. This is an important element in business because
for one to be able to find potential investors. The government also requires contributions
from the revenue earned. That is why with an organized or systematic record keeping, a
business can easily file taxes. QuickBooks is financial accounting software created to
help business entities to easily record transactions and as well as come up with financial
statements. With QuickBooks, some of the problems that some business experience can
be eliminated because of the easy flow of recording transactions which QuickBooks can
offer. Managers should be able to see how the business runs and or how much the
business spends and earns. Financial information could be of great impact when it comes
to decision making or strategic planning of the business. It also can help managers or
business owners who lack accounting knowledge to understand some accounting
procedures.
PCB is a new business in Bacolod. Based on the interview that we conducted, we
found out that PCB is not using any accounting software nor prepares financial
statements. They simply set off their expenses against their revenue, which can be a
problem if they want to figure out where some of their money goes. Therefore, with these
situations, we made systematic procedures to record their transactions as well as prepare
their financial statements with the help of QuickBooks. It will allow them to operate
effectively because the data that is generated from QuickBooks can be exported to Excel.
QuickBooks can also track sales and can summarize them. It can also produce reports
that are useful for the managers to quickly understand the current business standing and
to know if the venture is healthy or not. QuickBooks is customizable as to how one wants
to work it.
Chart of Accounts
A chart of accounts (COA) is a financial, organizational tool that provides a
complete listing of every account in an accounting system. It is a complete list of
accounts that a company has for recording transactions or recordkeeping system. Its
significant purpose is to segregate assets, liabilities, expenses and revenue accounts so
that users can easily understand the company's financial details. The chart of accounts
varies from company to company, and it has the control to bring about its chart of
accounts that best suit its needs.
The chart is organized in order by account number to lessen complications of
locating particular accounts. It may be sorted numerically, alphabetically, or
alphanumerically. Accounts are usually listed by their order in the financial statements
beginning with the balance sheet and then the income statement.
Coding Scheme.
The first figure in the general ledger account structure represents the account
type. The account types are as follows:
Table 3 Coding Scheme
Code ACCOUNT TYPE

100000 Assets
200000 Liabilities
300000 Equity
400000 Revenues
500000 Expenses
Assets.
Resources owned by a company in which they are consumed or

used; as a result of past transactions or events and from which future
economic benefits are expected to flow to the entity.
Liabilities.
Present obligations or financial debt of an entity arising from past

transactions, the settlement of which is supposed to result in an outflow
from the entity of resources embodying economic benefits.
Equity.
The residual interest of the owners in the net assets of a

corporation, measured by the excess of assets over liabilities.
Revenues.
The gross inflow of economic benefits during the period arising in

the course of ordinary activities of an enterprise when those inflows result
in an increase in equity, other than those relating to contributions from
owners.
Expenses.
A decrease in economic benefits during the accounting period in

the form of outflow or decrease in asset and increase in liability that result
in a reduction in equity other than distribution to equity participants.
Specific Coding.
Table 3 Specific Coding
Code Account Title

100100 Cash and Cash Equivalents
100010 Cash in Bank
100020 Cash on Hand
100030 Petty Cash Fund
100200 Advances to Employees
100300 Merchandise Inventory

100310 Merchandise Inventory Ingredients
100320 Merchandise Inventory Beer
100330 Merchandise Inventory Condiments
100400 Prepaid Expenses

100410 Office Supplies
100420 Prepaid Rent

100430 Store Supplies
100440 Prepaid Advertising
100500 Property, Plant and Equipment
Code Account Title

100510 Office Equipment
100511 Accumulated Dep. - Office Equipment
100520 Store Equipment
100521 Accumulated Dep. - Store Equipment
100530 Furniture and Fixtures
100531 Accumulated Dep.Furniture & Fixtures
100600 Intangible Assets

100610 Computer Software (Net of Amortization)
200100 Trade and other Payable

200110 Accounts Payable
200120 Salaries Payable
200130 Accrued Expenses
200140 Withholding Tax Payable
200150 SSS Contribution Payable
200160 Philhealth Contribution Payable
200170 PAG-IBIG Contribution Payable
200180 Interest Payable
200200 Current portion of long-term borrowings
Code Account Title
200300 Income Tax Payable
200400 Non- Current Liability

200410 Notes Payable
200420 Loans Payable
200500 Other Non-Current Liabilities
300100 Partner A Capital

300110 Partner A Drawings
300200 Partner B Capital

300210 Partner B Drawings
400100 Cash Sales

400200 Other Income
400210 Interest Expense
Code Account Title
500100 Cost of Goods Sold

500110 Purchases
500120 Purchase Returns and Allowances
500130 Purchase Discount
500200 Administrative Expenses

500210 Office Salaries
500220 Statutory Contribution Expense
500230 Depreciation Expense
500240 Utilities Expense
500250 Office Supplies Expense
500260 Security Labor Contract
500270 Taxes and Licenses
500280 Professional Fees
500290 Rent Expense
500300 Selling Expense

500310 Sales Salaries
500320 Advertising
500330 Store Supplies Expense
500340 Freight In
500350 Miscellaneous Expense
Detailed Chart of Accounts
Table 3
includes currency, coins, or checks received but not yet deposited;

Cash and Cash
100100 highly liquid investments with a maturity of three months or less at
Equivalents
the time of purchase; most liquid currents assets.
100110 Cash on Hand Cash that is held on hand and subject for deposit
includes demand deposits or checking account and savings deposit

100120 Cash in Bank which have been placed on deposit with a financial institution and
are unrestricted as to withdrawal.
Debits deposit of cash on hand, and interest earned from deposits.
Credits withdrawal of cash deposited, and payments of bank
charges.
used to pay small amount of expenses, which cannot be paid

100130 Petty Cash Fund conveniently by one company by means of check.
Debits setting up of petty cash, and replenishment of petty cash.

Credits adjusting entry at the end of the period for petty cash
expenses incurred.
is a binding settlement of outstanding amounts; created after

confirmation that goods have been shipped, or after a service has
Customers
100200 been performed,; corrections to claims or claims from credit
Invoice
memos for a customer. It contains information such as invoice
amount, customer details/supplier details, and terms of payment.
are goods that have been acquired by a distributor, wholesaler, or

Merchandise
100300 retailer from suppliers, with the intent of selling the goods to third
Inventory
parties.
Merchandise
is an item of the inventory which is used to prepare a specific dish
100310 Inventory
in cooking.
Ingredients
Merchandise
100320 is an item of the inventory which is alcoholic liquids.
Inventory Beer
Merchandise
is an item in the inventory consisting substances such as a relish,
100330 Inventory
vinegar, or spice, used to flavour or complement food.
Condiments
100400 Prepaid Expenses are assets that become expenses as they expire or get used up.
100410 Office Supplies assets used to administer office works.
100420 Prepaid Rent Rent paid in advance.
100430 Store Supplies assets used in the operation inside the caf.
Prepaid prepayment of a future ad would be recorded as an asset until
100440
Advertising the advertisement runs.
Property, Plant included in this classification are land, buildings, machinery, office
100500
and Equipment equipment, vehicles, furniture and fixtures used in a business
are equipment used in the office by businesses; major items of

100510 Office Equipment
immovable property used in furnishing an office.
Debits acquisition of equipment, and appraisal of value.
Credits sale of equipment, adjustment to net book value, and

asset revaluation lower than the book value.
Accumulated
is a contra asset which accumulates the amount of depreciation
100511 Dep. - Office
taken on office equipment since it was acquired.
Equipment
100520 Store Equipment are equipment used in the store by businesses.
Accumulated
is a contra-asset account which accumulates the amount of
100521 Dep. - Store
depreciation taken on store equipment since it was acquired.
Equipment
Furniture and are movable furniture, fixtures or other equipment that has no
100530
Fixtures permanent connection to the structure of a building or utilities.
Accumulated
is a contra asset account which accumulates the amount of
100531 Dep.Furniture
depreciation taken on furniture and fixture since it was acquired.
& Fixtures
an identifiable nonmonetary asset without physical substance, and

100600 Intangible Assets must be controlled by the entity as a result of past events and from
which future economic benefits will flow from it.
is an intangible asset that assists bookkeepers and accountants in
Computer
recording and reporting on a firms financial transactions. Software
100610 Software net of
allows detailed tracking of financial transactions and near
Amortization
instantaneous reporting and analysis.
Trade and Other are payables that included an account that is owed from the
200100
Payables suppliers and other people engaging the business.
200110 Accounts Payable are payables incurred through purchasing.
200120 Salaries Payable a laibility which represents the net pay to the employees.
Accrued
2001230 includes expenses already incurred but not yet paid.
Expenses
represents the estimated income tax of the employee that the

employer must pay. It is an amount specified by law representing
Withholding Tax
200140 the estimated income tax of the individuals deducted by the
Payable
employer from their wages and salaries and remitted to the taxing
authority.
is the form of consideration given by the entity to SSS in exchange

SSS Contribution
200150 for the services rendered by the employees which are still unpaid at
Payable
the end of the period.
Philhealth is the form of consideration given by the entity to PhilHealth in

200160 Contribution exchange for the services rendered by the employees which are still
Payable unpaid at the end of the period.
PAG-IBIG is the form of consideration given by the entity to PAG-IBIG in

200170 Contribution exchange for the services rendered by the employees which are still
Payable unpaid at the end of the period.
is the interest that has been incurred ( has already occurred) but has
200180 Interest Payable
not been paid as of the date of balance sheet.
Current portion notes payable may come in a form of a promissory note in which it
200200 of long term is an unconditional promise in writing made by one person to
borrowings another and are settled within the entitys normal operating cycle.
is a type of account in the current liabilities section of a company's

Income Tax
200300 balance sheet comprised of taxes that must be paid to the
Payable
government within one year.
Non- Current
200400 are liabilities not assigned to common non-current liabilities.
Liability
is a written promissory note; a borrower obtains a specific amount

200410 Notes Payable of money from a lender and promises to pay it back with interest
over a predetermined time period.
are amounts that have been loaned to the business and that it still
200420 Loans Payable
owes.
Other Non-
200500 Current are liabilities not assigned to common non-current liabilities.
Liabilities
refers to the sum of business resources owned by Partner A. The

Partner A account in which the owners investment is recorded plus the net
300100
Capital income earned by the business minus the drawings made by the
owner.
Partner A is used to record the current years withdrawals of business assets

300110
Drawings by the sole proprietor for personal use.
refers to the sum of business resources owned by Partner A. The
Partner B account in which the owners investment is recorded plus the net
300200
Capital income earned by the business minus the drawings made by the
owner
Partner B is used to record the current years withdrawals of business assets

300210
Drawings by the sole proprietor for personal use.
The income generated from sale of goods or services, or any other

400100 Revenues use of capital or assets, associated with the main operations of
an organizationbefore any costs or expenses are deducted.
sales in which the buyer's payment obligation to the seller is

400200 Cash Sales
settled.
represents income from activities other than normal business

400300 Other Income
operations, such as investment interest.
Cost of Goods are the direct costs attributable to the production of the goods
500100
Sold sold by a company.
500110 Purchases refer to purchase of inventory for the current period.
Purchase Returns
500120 refer to purchase returned to suppliers due to some defects.
and Allowances
Purchase
500130 refers to discount availed on purchase.
Discount
Administrative
500200 constitute costs of administering the business.
Expenses
500210 Office Salaries refer to the payment given to the employees of the business.
Statutory
500220 Contribution are the additional amount withheld form the company's employees.
Expense
Depreciation is the portion of a tangible capital asset allocated or charged as

500230
Expense expense at the end of the period.
expenses related to use fuel, electricity, telecommunication

500240 Utilities Expense
facilities and water.
Office Supplies
500250 are expenses incurred through usage of supplies by the company.
Expense
Security Labor
500260 costs for the security agency provided.
Contract
Taxes and are payments to governmental agencies for taxes and licenses,
500270
Licenses business and property taxes.
are prices charged by individuals specially trained in specific fields

500280 Professional Fees of arts and sciences, such as doctors, architects, lawyers, and
accountants.
500290 Rent Expense cost incurred by a business to utilize property.
500300 Selling Expense constitute costs which are directly related to selling.
500310 Sales Salaries is the fixed pay earned by employees.
500320 Advertising is charged to expenses in promoting the business.
Store Supplies includes supplies which are used in the selling operations of the
500330
Expense business.
is the transportation cost associated with the delivery of goods from

500340 Freight In
a supplier to the receiving entity.
Miscellaneous is paid as an expense which is not significant to warrant a particular

500350
Expense classification in selling.
Journal Entries
Table 4 Journal Entries
Journal Entries Debit Credit
Cash in Bank xxx

Owner, Capital xxx
Owner Cash Investment
Non-Cash Asset xxx

Owner, Capital xxx
Owner Non-Cash Investment
Owner, Drawings xxx

Cash in Bank xxx
Owner Drawing
Petty Cash Fund xxx

Cash in Bank xxx
Establish petty cash fund
Kitchen Equipment xxx

Cash in Bank xxx
Acquisition of Kitchen Equipment
Furniture and Fixtures xxx

Cash in Bank xxx
Purchase of Furniture
Current portion of Long term borrowings xxx

Cash in Bank xxx
Payment of Short term Note
Store Supplies xxx

Cash in Bank xxx
Purchases of Store Supplies
Prepaid Insurance xxx

Cash in Bank xxx
Advance payment of insurance
Office Supplies xxx

Cash in Bank xxx
Purchases of Office Supplies
Other Prepaid Expenses xxx

Cash in Bank xxx
Prepayments of other expenses
Computer Software xxx

Cash in Bank xxx
Purchase of Computer Software
Cash in Bank xxx

Loan Payable xxx
Obtain a bank loan
Loans Payable xxx

Cash in Bank xxx
Payments for loan
Purchases xxx
Freight in xxx
Accounts Payable xxx
Purchases of Inventory on account

Purchase Discount xxx
Cash in Bank xxx
Payment of purchases with discount

Purchase Returns xxx
Returns for damaged inventories
Cash on Hand xxx

Sales xxx
Sales of Inventory
Cash on Hand xxx

Other Income xxx
Sales other than inventory
Interest Expense xxx

Cash in Bank xxx
Payment of interest
Advertising xxx
Cash in Bank xxx
Payment of Advertising
Advances to Employees xxx

Miscellaneous- Selling xxx
Miscellaneous- Admin xxx
Cash in Bank xxx
Replenishment of Petty Cash Fund
Salaries and Wages Payable xxx

Advances to Employees xxx
Deduction of Advances
Taxes and Licenses xxx

Cash in Bank xxx
Payment for Taxes
Sales Salaries xxx

Offices Salaries xxx
SSS Contribution Payable xxx
Phil Health Contribution Payable xxx
PAG-IBIG Contribution Payable xxx
Other Contribution Payable xxx
Withholding Tax Payable xxx
Salaries and Wages Payable xxx
Recognizing for Salaries and Wages
Salaries and Wages Payables xxx

Cash in Bank xxx
Payment for Salaries and Wages
Miscellaneous Expense xxx

Cash in Bank xxx
Payment for Utilities
Repairs and Maintenance xxx

Cash in Bank xxx
Payment for Repairs and Maintenance
Adjusting Entries
Other Expenses xxx

Petty Cash Fund xxx
Expenses not yet replenished in petty cash fund
Salaries Expense xxx

Accrued Salaries Expense xxx
Salaries not yet paid at the end of the year

Interest Payable xxx
Interest not yet paid at the end of the year
Office Supplies Expense xxx

Store Supplies Expense xxx
Office Supplies xxx
Store Supplies xxx
Adjusting Prepayments for Office and Store
Supplies
Insurance Expense xxx

Prepaid Expense xxx
Expired Portion of Insurance
Other Expenses xxx
Other Prepaid Expenses xxx
Adjustments for other prepayments
Depreciation Expenses xxx

Accumulated Depreciation- Building xxx
Accumulated Depreciation- Office Equipment xxx
Accumulated Depreciation- Furniture and Fixtures xxx
Accumulated Depreciation- Kitchen Equipment xxx
Recognizing depreciation annually
Office Supplies Expense xxx

Office Supplies xxx
Adjustment for used up Office-
Supplies
Other Expenses xxx

Accrued Expenses xxx
Recognition of Other Expenses not yet paid
Closing Entries
Sales xxx
Other income xxx
Inventory, end xxx
Income summary xxx
To close all income account
Income Summary xxx

Purchase Discount xxx
Purchase Returns xxx
Repairs and Maintenance xxx
Taxes and Licenses xxx
Security Contract Labor xxx
Utilities xxx
Sales Salaries xxx
Offices Salaries xxx
Insurance Expense xxx
Depreciation expense xxx
Offices supplies expense xxx
Store Supplies Expense xxx
Advertising xxx
Freight in xxx
Income Tax Expense xxx
Miscellaneous- Admin xxx
Miscellaneous- Selling xxx
Inventory, beginning xxx
Other Expenses xxx
To close all expense account to income summary
Income Summary xxx

Owners, Capital xxx
To Close income summary to the Capital account
Owner's Capital xxx

Owner's Drawings xxx
To close the drawing account to capital
Pro forma Financial Statements
Table 5 Pro forma Financial Statements
PUBLIQ Coffee and Beer
STATEMENTS OF FINANCIAL POSITION
May 31
Note 2017 2016
ASSETS
Current Assets
Cash 1 Xxx Xxx
Advances to Employees Xxx Xxx
Merchandise Inventory Xxx Xxx
Prepaid expenses Xxx Xxx
Total Current Assets Xxx Xxx
Noncurrent Assets Xxx

Property and equipment - net 2 Xxx Xxx
Other noncurrent assets 3 Xxx Xxx
Total Noncurrent Assets Xxx Xxx
Total Assets Xxx Xxx
LIABILITIES AND PARTNERS EQUITY

Current Liabilities
Accounts payable and other current liabilities 4 Xxx Xxx
Noncurrent Liabilities
Long term liabilities Xxx Xxx
Total Liabilies Xxx Xxx

Partners Equity
Partner B, Capital Xxx Xxx
Partner A, Capital Xxx Xxx
Total Liabilities and Partners Equity Xxx Xxx

See Notes to the Financial Statements.
STATEMENTS OF COMPREHENSIVE INCOME
Years Ended May 31

Note 2017 2016
REVENUE
Cash sales Xxx Xxx
Other Income Xxx xxx
COST OF GOODS SOLD 5 (Xxx) (xxx)
Gross Profit Xxx Xxx
OPERATING EXPENSES (Xxx) (Xxx)
Operating Income Xxx Xxx

FINANCE COST (Xxx) (Xxx)
Net Income Xxx Xxx
STATEMENTS OF CHANGES IN PARTNERS EQUITY

Years Ended May 31
2015 2014
PARTNER A, CAPTAL
Balance at beginning of year Xxx Xxx

Net Income Xxx Xxx
Total Xxx Xxx
Withdrawals (Xxx) (Xxx)
Balance at end of year Xxx Xxx
PARTNER B, CAPTAL
Balance at beginning of year Xxx Xxx

Net Income Xxx Xxx
Total Xxx Xxx
Withdrawals (Xxx) (Xxx)
Balance at end of year Xxx Xxx
STATEMENTS OF CASH FLOWS
Years Ended May 31

Note 2017 2016
CASH FLOWS FROM OPERATING
ACTIVITIES
Net Income Xxx Xxx
Adjustments for:
Depreciation and amortization Xxx Xxx
Operating income before working capital changes Xxx Xxx
Changes in:
Receivables (Xxx) (Xxx)
Merchandise inventory (Xxx) (Xxx)
Prepaid expenses and other current assets (Xxx) (Xxx)
Accounts payable and other current liabilities (Xxx) (Xxx)
Net cash provided by (used in) operating activities (Xxx) (Xxx)
CASH FLOWS FROM INVESTING ACTIVITIES

Acquisitions of property and equipment (Xxx) (Xxx)
Net cash used in investing activities Xxx Xxx
NET INCREASE (DECREASE) IN CASH Xxx Xxx

CASH AT BEGINNING OF YEAR Xxx Xxx
CASH AT END OF YEAR Xxx Xxx

NOTES TO FINANCIAL STATEMENTS
1. Cash
This account consists of:
2017 2017
Petty cash fund Xxx Xxx
Cash in bank
Cash on Hand Xxx xxx
Cash in bank earns interest at the respective bank deposit rates. Interest in cash in bank amounted
to ________xxx________ and _______xxx________ in 2015 and 2014, respectively.
2. Property and Equipment
Movements and balances in this account are as follows:
For the Year Ended May 31, 2017 and 2016

Furnitur Laborato
e, ry Compute
Fixtures and rs
Building and Other Librar and
Improveme Equipme Equipme y Peripher
nts nt nt Books als Total
Cost
June 1, 2015
Additions
May 31, 2016
Additions
May 31, 2017
June 1, 2015
Depreciation
and
amortization
May 31, 2016
Depreciation
and
amortization
May 31, 2017
Carrying
Amount
May 31, 2015
May 31, 2016
3. Other Noncurrent Assets
2017 2016
Computer Software Xxx Xxx
Accumulated Amortization Xxx Xxx
Computer Software net Xxx Xxx
4. Accounts Payable and Other Current Liabilities
Note 2017 2016

Withholding Tax Payable xxx
SSS Contributions Payable xxx
Pag-Ibig Contributions Payable xxx
Philhealth Contributions Payable xxx
Income taxpayable xxx
Total Accounts payable and Other Current

Liabilities Xxx xxx
5. Cost of Goods Sold
a. Cost of sales consist of:
2017 2016
Inventory, beginning of year
Add purchases during the year
Total goods available for sale
Less inventory, end of year
Tax Compliance
PCB is a non-VAT partnership business of two (2) individuals. Below is a list of

BIR forms that the company must process and pay to BIR regularly to avoid
administrative irregularities:
1903 - Application for Registration for Corporations/Partnerships (Taxable/Non-

Taxable)
0605 Annual Registration Payment Form
2551M - Monthly Percentage Tax Return
2551Q - Quarterly Percentage Tax Return
1601 E Monthly Remittance Return of Creditable Income Taxes Withheld

(Expanded)
1604 E - Annual Information Return of Creditable Income Taxes Withheld

(Expanded)/ Income Payments Exempt from Withholding Taxes
1601 C Monthly Remittance Return of Income Taxes Withheld on

Compensation
2316 Annual Certificate of Compensation Payment / Tax Withheld For

Compensation Payment With or Without Tax Withheld
2305 - Certificate of Update of Exemption and of Employer's and Employee's

Information, if needed only
Business Machine
Kitchen Tools and Equipment.
Espresso Machine.
A device that is used by the baristas or coffee makers that press out the
coffee into tiny bits and filter it using an almost 100 degrees Celsius of
water. It is the primary equipment that is utilized in a business such as
coffee shops and other specialized restaurants. This machine is widely
used all over the country because most people loves coffee.
Coffee Grinder.
A machine that is used to grind the coffee or a mill for grinding coffee.
This machine is used before an espresso machine will be utilized.
Refrigerator.
Something that refrigerates; especially a room or appliance for keeping

food or other items cool.
Freezer.
One that freezes or keeps cool; especially a compartment, room or device

for freezing food or keep it frozen.
Kitchen Stove.
A portable of a fixed apparatus that burns fuel or uses electricity to

provide heat or a device that generates heat for a particular purpose (as for
cooking or heating). It is usually joined with stove pipe and a gasoline
tank.
Frying Pan.
A metal pan with a handle that is used for frying foods. It is sometimes
called a heated pan. Typically 250 to 350 mm in diameter with relatively
low sides that goes outwards, a medium-sized handle, and no cover.
Kitchen Knife.
A kitchen knife is a cutting instrument consisting of a sharp blade fastened

to a handle or a weapon resembling a knife. It is usually used in the
kitchen to cut ingredients, and other spices for the food would be
presentable at the same time proportion to the taste of the menu.
Kitchen Cutting Board.
A cutting board is a hard board by which materials are put on it to be

cut.The kitchen cutting board is usually used in preparing food; Kitchen
cutting boards are often made of wood or plastic and come in various
widths and sizes. Some of them are in the form of a metal
Microwave Oven.
A microwave oven in which food or a menu is cooked by the heat

produced by the absorption of microwave molecules in the food. This
equipment induces diametric molecules in the solid food to go around and
produce heat energy in a process known as dielectric heating. Microwave
ovens cook foods rapidly and expeditiously because excitation is relatively
single, high water content food item; food is more equally heated end-to-
end (except in heterogeneous, heavy objects) than mostly occurs in
another cooking method.
Office Tools and Equipment
Stapler.
It is a device that uses staple wires to attach files and papers to consolidate
them.
Scissor.
Scissor is a cutting instrument having two blades whose cutting edges

slide past each other.
Scotch Tape Dispenser.
It is an object that clenches a roll of tape and has a mechanism at one end
to snip the tape. Dispensers differ widely based on the adhesive tape they
are dispensing.
Printer.
A printer is a device used for printing, especially a machine for printing

from photographic negatives or as a device that produces printouts.
Computer.
It is an instrument that can be instructed to carry out a comprehensive set

of arithmetic or formal operations automatically. The power of computers
to precede generalized sequences of operations, called programs, enables
them to perform a broad range of tasks.
Furniture and Fixtures
Sofa.
A long seat, usually with back and arms that are used by two or
more people. It is often found in the visitor's area.
Wooden Chair.
A seat with a back on which one person sits, typically having four
legs and often having arms.
Table.
A table is a type of furniture with four legs and a flat top, providing a
firmly leveled surface on which things may be put unto it, and that can be
utilized for such purposes as eating, sleeping, working, or other activities.
Lamp.
A tool for giving light, either one having an electric light bulb together
with its holder and shade or screen, or one oxidizing gas or a liquid fuel
and consisting of a wick or mantle and a glass shade.
High Chair.
A tiny chair with long legs for a baby or small child, fitted with a tray that
is used as a table at dining times.
Toilet.
A determinate receptacle into which a person may urinate or defecate,

typically consisting of a big bowl connected to a system for flushing away
the waste matter into a drain or septic tank.
Sink.
A sink in a kitchen, used for washing dishes and preparing food.

Authorization Letter
Curriculum Vitae
Ronnie Pahilagao Jr.
27th Street, Bacolod City, Negros Occidental |
pahilagaoronnie@yahoo.com | +639325549669
+ OBJECTIVES
To secure a cooperative education in the field of Accounting that will challenge and
strengthen my education and professional skills.
To bring out and harness the best of my potential for the glory of God and for the benefit of
my employer, my community and myself.
+ QUALIFICATIONS
Has an excellent knowledge of bookkeeping/accounting
Dedicated and hardworking individual
Exceptionally Versatile
Has good communication skill
Has a value of humility and willing to learn in any ways
+ EDUCATION
March 2014 Present Tertiary Education
University of Negros Occidental-Recoletos
Bacolod City
June 2010 March 2014 Secondary Education
Colegio San Agustin - Bacolod
Bacolod City
June 2004 March 2010 Primary Education
Colegio San Agustin - Bacolod
Bacolod City
+ ACHIEVEMENTS AND AFFILIATIONS
Eagle Awardee in Highschool (Top 10)

Deans Lister A.Y. 2014 2015
Consistent Honor Student in Highschool
JPIA Academics Committee Head
Active in Seminars for Accountancy Students
JPIA Vice President for Non Academics
Participated twice in Riverside Inventory Count
+ ADDITIONAL SKILLS
Can deal with different types of people

Can do Manual and Computer
Knows how to operate all Microsoft Office
Works.
Completed a SAP Business One
Accurate Problem Solving skills
Knows how to operate Quickbooks
13.5Kms., Marietta Village, Brgy.Taloc, Bago City
09126411359
liannejoy30@gmail.com
Objectives:
To acquire valuable knowledge and skills to complement those that I have learned
from school in an actual job environment;
To offer my services to your firm throughout the duration of my training.
Education:
Bachelor of Science in Accountancy: University Of Negros Occidental

Recoletos (2014 to present)
Secondary Education: University Of Negros Occidental Recoletos (2010 to

2014)
Primary Education: University Of Negros Occidental Recoletos (2004 -2010)
Summary of Qualifications:
Oriented in Microsoft Office Applications such as MS Word, PowerPoint, and

Excel
Knows how to operate QuickBooks and SAP Business One Applications
Has the capacity to do bookkeeping job
Proficient in speaking and writing in English, Filipino, and Hiligaynon languages
Trust-worthy, versatile, hardworking, team-player, and fast learner
Seminars and Trainings:
Participant, Inventory Count (Riverside Hospital)

Bangko Sentral ng Pilipinas Seminar (Cebu City, Philippines)
Board of Accountancy, Meet the Examiner Forum (University of Saint Lasalle
Bacolod)
Achievements:
Consistent Deans List 1st and 2nd Semester A.Y. 2014-2015

1st and 2nd Semester A.Y. 2015-2016
1st Semester A.Y. 2015-2017
Organizations:
2014-Present Member/Treasurer (A.Y. 2016-2017), Junior Philippine

Institute of Accountants UNO-R Chapter
2014- Present Member, NECONFED
References:
Clarita T. Lacson, CPA, PhD

Head, Accountancy Department
College of Business and Accountancy
Deinns L. Udani, CPA, REB, REA

Faculty, College of Business and Accountancy
dennisudani@mail.com
Ma. Rizza T. Montao|
ASSISTANT COMPTROLLER2013-Current, EM-B Capital Lending Corp.
Checks all company disbursements

Prepares consolidated financial statements monthly
Prepares management reports for Board Meeting
Checks all payroll-related documents and upload payroll files
ACCOUNTING CLERK/OJTSummer 2012, Gomez, and Gomez, CPAs
Encodes cash receipts for VAT purposes

Journalizes entries of assigned company
MANAGING EDITORA.Y. 2009-2013, Tolentine Star of UNO-R
Writes news articles, and other journalistic write-ups

Edits articles prior to Associate Editor
Organizes
________________________________________
SKILLS
Accounting and arithmetic

Journalism
Public Speaking and communication
_________________________________________
ACHIEVEMENTS
B.S. Accounting Technology, Cum Laude

Campus Journalism Awardee
IWAG Awardee
Outstanding Leader Awardee
_________________________________________
EDUCATION
B.S. Accountancy
University of Negros Occidental Recoletos
A.Y. 2016 - Present
B.S. Accounting Technology, Cum Laude

A.Y. 2009 2013
High School, Valedictorian

Lopez Jaena National High School
A.Y. 2005 - 2009
Elementary, Valedictorian
Pandanon Silos Elem. School
A.Y. 2003-2005
_________________________________________
CHARACTER REFERENCES
CHRISTINE G. NEPOMUCENO, CPA

Comptroller
EM-B Capital Lending Corp.

(034) 432-0790
IVY GONZALES - ABOY

English Professor
ASHRAF RIOS KHATER

Engineering Professor
REJINA G. SEMILLANO
Red Street, Canson Subdivision, Brgy. II Poblacion

La Carlota City, Negros Occidental, 6130
rejinasemillano2016@gmail.com| 0916-3432-940
OBJECTIVES:
Seeking for a suitable On-The- Job Training where I could practice my knowledge and utilize my
accounting skills to carry out task with efficiency and professionalism in helping increase your companys
performance and to expose myself to the real business world
EDUCATIONAL BACKGROUND:
Tertiary Bachelor of Science in Accountancy

University of Negros Occidental-Recoletos
Bacolod City
June 2014- Present
Secondary Doa Hortencia Salas Benedicto National High School

La Carlota City
2010-2014
Primary La Carlota South Elementary School- I

La Carlota City
2005-2010
QUALIFICATIONS:
Possesses responsible leadership qualities.

Excellent in written & oral communications skills
Quick learner
Self-motivated with a commitment in providing quality service
SKILLS:
Able to use computers and proficient in Microsoft office (Word, Excel, Power point)
Has knowledge of using SAP (Systems, Applications and Products) Software and Quick
Books Accounting Software.
Can work under pressure
Able to perform the assigned task accurately and on time
CHARACTER REFERENCES:

Accounting Systems Designed For Publiq Coffee and Beer

Enviado por

Dados do documento

Título original

Direitos autorais

Formatos disponíveis

Compartilhar este documento

Compartilhar ou incorporar documento

Opções de compartilhamento

Você considera este documento útil?

Este conteúdo é inapropriado?

Direitos autorais:

Formatos disponíveis

Accounting Systems Designed For Publiq Coffee and Beer

Enviado por

Direitos autorais:

Formatos disponíveis

PUBLIQ COFFEE AND BEER: AN ACCOUNTING SYSTEM DESIGN AND

An Accounting System presented to

The Faculty of the Bachelor of Science in Accountancy program, Accountancy

Department, College of Business and Accountancy

University of Negros Occidental - Recoletos

In Partial Fulfillment of the Requirements for the Degree of Bachelor of Science in

Ma. Rizza T. Montao

#51 Lizares Avenue, Bacolod City, Negros Occidental, Philippines

partial fulfillment of the requirements for the degree of Bachelor of Science in

Dr. Felix Cena, CPA Dr. Clarita Lacson, CPA

Dr. Jelyn Gaspillo

Dr. Jelyn Gaspillo

PUBLIQ COFFEE AND BEER: AN ACCOUNTING SYSTEM DESIGN AND

Ma. Rizza T. Montao

College of Business and Acountancy

The objective of this study is to create an ideal accounting system to serve as a

Keywords: mixed merchandising/service business, software, processes, applicability

Hall, J. A. (2008) Accounting Information Systems. Ohio, Natop Boulevard

Mason: Cengage Learning.

Johnstone, Gramling and Rittenberg (2014) Auditing. Pasay City, Ortigas

Avenue: Cengage Learning.

Retrieved on May 27, 2017 from goo.gl/mLGqpg

Retrieved on May 24, 2017 from goo.gl/Cp4FPF

Retrieved on May 18, 2017 from goo.gl/W0hjo8

Retrieved on May 16, 2017 from goo.gl/zpkxlN

Retrieved on May 16, 2017 from goo.gl/drjC36

Retrieved on May 15, 2017 from goo.gl/3ELomP

The researchers extend their deepest gratitude to the following:

in ACTOJT which is the accounting system designed for PCB;

Statement of the Problem

III. RESULTS, DISCUSSIONS, AND IMPLICATIONS

IV. CONCLUSIONS AND RECOMMENDATIONS

Review of the Accounting Information System

Appendix A. Business Machines

Table 1 Symbols used in Flowcharts

Table 2 Lines of Authority

Table 3 Detailed Chart of Accounts

Table 4 Journal Entries

Figure 1 Logo of the Business

Figure 2 Organizational Chart of the Business

Figure 3.1 General Flowchart

Figure 3.2 Flow of Cash Receipts in the Business

Figure 3.3 Flow of Payroll in the Business

Figure 3.4 Flow of Petty Cash Disbursements in the Business

Figure 3.5 Flow of Petty Cash Replenishment in the Business

Figure 3.6.1 Flow of Cash Advance to Employees in the Business

Figure 3.6.2 Continuation Flow of Cash Advance to Employees in the Business

Figure 3.7 Flow of Purchase Returns in the Business

Figure 3.8.1 Flow of Purchasing of Inventory in the Business

Figure 3.8.2 Continuation of Flow of Purchasing of Inventory in the Business

Figure 3.9 Flow of Receiving of Inventory in the Business

Figure 4.1 Check Voucher

Figure 4.2 Purchase Requisition Form

Figure 4.4 Receiving Report

Figure 4.5 Canvass Slip

Figure 4.6 Cash Advance Voucher

Figure 4.7 Tape Receipt Summary

Figure 4.8 Payroll Register

Figure 4.9 Pay slip

Figure 4.10 Time Card

Figure 4.11 Petty Cash Voucher

Figure 4.12 Petty Cash Replenishment

Figure 5.1 Home Page