Arago, Distura, Endaya, Abbagu & Co.

EVALUATION OF ACCOUNTING MANUAL

In terms of Expenditure Cycle: YES NO

The Cooperative…

1. Recognizes and records expense when it is paid.

2. Uses purchase requisition when there are not enough

inventory.

3. Uses purchase order to order needed additional inventory

4. Through authorized personnel, files out receiving report

for all deliveries after inspection and verification of the
quantity and quality.
5. Ensures that any refund from the returned purchases (if
there are any) will be received.
6. Through authorized personnel, approves vendor invoices
(bills) when the orders are received.
7. Through authorized personnel, matches receiving report
and purchase order to ensure they received all ordered
inventory.
8. Records purchases on credit when bill is received from
vendor.
9. Pays immediately after receiving ordered inventory.

10. Pays ordered inventory based on agreed terms with the

vendor if on credit.
11. Records utilities expenses (like electricity, water, etc.)
when it is paid.
12. Records every expense incurred in a ledger/journal.

13. Through authorized personnel, marks the supporting

documents of purchases “paid” to avoid duplicating
payment.
14. Maintains records of accounts payable.

15. Recognizes the acquired equipment as an asset.

16. Uses gathered documents like receipts, ledger/journal,

bills, invoices, etc. to determine the amount of expenses and
Cost of Sales to be reported in the Income Statement.
 Arago, Distura, Endaya, Abbagu & Co.

17. Uses gathered documents like receipts, ledger/journal,

bills, invoices, etc. to determine the balance of inventory,
accounts payable, and fixed assets to be reported in the
Balance Sheet/Statement of Financial Position.

In terms of Revenue Cycle: YES NO

The Cooperative…

1. Recognizes and records sales when cash is received.

2. Issues receipts for every sale transaction whenever cash is

received.

3. Retains duplicate copies of receipts for every sale

transaction.

4. Indicates in the receipts the date of sale, the amount of

cash received from the customer, the name of the customer,
and the name of the person who received cash.

5. Records every sale transaction in a ledger/journal.

6. Through authorized personnel, counts the cash collected

within the day before he gives the cash to the
owner/manager.

7. Restricts handling of cash to authorized personnel only.

8. Counts change funds every day.

9. Deposits the cash collected to a bank.

10. Uses gathered documents like receipts, ledger/journal,

etc. to determine the amount of sales to be reported in the
Income Statement.

11. Uses gathered documents like receipts, ledger/journal,

etc. to determine the balance of Cash to be reported in the
Statement of Financial Position/Balance Sheet.
 Arago, Distura, Endaya, Abbagu & Co.

In terms of Payroll Cycle: YES NO

The Cooperative…

1. Maintains complete personnel records including job

description, wage, and salary information.

2. Through authorized personnel, calculates employees’ work

time based on its method of timekeeping (i.e., logbook, Daily
Time Record, etc.).

3. Calculates the holiday pay based on established rates in the

Labor Code.
4. Through authorized personnel, subtracts the appropriate
pay deductions from the gross pay to arrive at the take-home
pay.

5. Maintains appropriate records for employee benefits and

compensation like bonus, 13th month pay, PhilHealth, SSS,
etc.

6. Through authorized personnel checks the Cash to be given

or paychecks to confirm all information once payroll is set.

7. Uses gathered documents like logbooks, payroll, etc. to

determine the cost of labor to be included in the computation
in the cost of products or the amounts of salaries and wages
to be reported in the Income Statement.

8. Use gathered documents like logbooks, payroll, etc. to

determine the amount of salaries and wages payable and the
balances to be remitted to respective agencies (PhilHealth,
SSS, BIR,etc.)