Petty cash fund

Deposits by depositor-----book debits less

items not representing deposits

Deposits acknowledged by the bank------

Imprest Fund System
bank credits less items not representing
- GR: Fixed bal for PCF
deposits
- Ex. to GR (Not fixed if):
1. Replenishment (PCF not
- OUTSTANDING CHECKS
fixed if Rep. /= Exp.)
OC, beg
2. Incurrence or exp /= rep
Checks issued by depositor
- When: recording of exp: upon
Less: checks paid by the bank
replenishment or balance sheet date
=OC, end

Checks issued by depositor-----book

Fluctuating Fund System
credits less items NOT representing checks
- Not fixed PCF bal
- Recording of exp: date of incurrence
Checks paid by the bank------bank debits
less items NOT representing checks
Shortage & Overage

Per accountability
- All items placed inside the petty
cash box: petty cash fund,
Employee salary, collection,
postage stamps
Per count
- All items seen inside the petty cash
box

Proof of cash
- 2 mos. Bank recon
- 4 column bank recon; beg, end, rec,
disb.

Beg.
Rec
(Disb)
= end
- DIT, beg (Sometimes missing)
- DIT computation

DIT, beg
Deposits by depositor
Deposits acknowledged by bank
= DIT end
COST

Cost Accounting
- determine how much an object,
project, or service cost. 3. By function
- Focuses on techniques and methods 3.1 Production/Project Cost
in determining cost 1. Materials
- PURPOSE - Direct Materials
- Planning and controlling - Indirect materials
- Improving quality and 2. Labor
efficiency - Direct labor
- Making decisions - Indirect Labor
- Internal or external purposes
Direct Materials + Direct Labor = Prime
Cost vs. Expense Cost
Cost
- Amt paid or incurred in acquiring 3. Manufacturing overhead
goods or services - Indirect product cost
- Sfp as ASSET
Conversion costs =
CLASSIFICATION OF COSTS direct labor +
manufacturing
1. By nature of expense overhead
- Material Costs Project costs
- For manufacturing a
product or rendering 3.2 General and Administrative
a service Costs
- Labor costs - Assigned to either marketing
- Compensation and or production
other benefits paid -
- Expenses

2. By nature of traceability to a cost

object
- Direct Cost
- Direct materials
- Raw materials
- Direct labor
- Paid to factory
workers
- Indirect Cost
- Indirect materials
- Indirect labor
- Indirect expenses
DIRECT MATERIAL
- Raw material; steel sheet ng kotse,
plastic sa laruan, etc.
INDIRECT MATERIAL
- Cannot be traced to specific
materials
- Maliliit na bagay na mahirap matrace
kung ga’no ang halaga or dami.
- Glue, thread, etc.
DIRECT LABOR
- For workers who physically convert
RM to finished goods.
INDIRECT LABOR
- Cannot be traced to products
- Machine helpers, supervisor, etc.
- Nagmamanage nung mismong mga
gumagawa
- Di sila involved physically sa
process ng production
MANUFACTURING
OVERHEAD/FACTORY OVERHEAD
- Indirect material, indirect labor
CAPITAL INTENSIVE OPERATIONS
- more on machineries
LABOR INTENSIVE OPERATIONS
- More on labor
Financial vs Management
Fin
- External
- Historical (all bus. transac.
transformed to FS)
- Verifiability
- Precision
- Focuses on whole org
- mandatory
Man
- Internal
- Future
- Planning and control of future bus
ope
- Timeliness
- Focuses on segments of an
organization
- Not mandatory
- No prescribed formats
PRODUCT COST
- Raw materials, labors, indirect costs
- Manufacturing product
- Components: materials, cost of
labor, overhead
- Materials: direct materials and
indirect materials
Direct Materials + Direct Labor =
prime cost
Direct labor + overhead =
conversion cost
PERIOD COST
- Operating expenses
- Marketing and advertising, selling
and distribution, and administrative
expenses (office expenses)
COST BEHAVIORS
VARIABLE COST
- Dependent to lvl of production
- Cost of materials and cost of direct
labor computed per piece
- Constant per unit but varies when
presented in totak
FIXED COST
Y = a + bx
MIXED COST
- Both variable and fixed
- High-low method
- Least square regression method
STEP COST
- Depends on level or range of activity
vc= change in cost divided by change in
activity
Financial Instrument

Financial Asset
- Cash
- Equity ins of another entity
- A contractual right to receive assets
(receivables)
- Receivable; accounts, loans, bonds,
trading securities
Fin liab
- Contractual oblig to deliver cash of

Recog criteria

CCE
Before maturity of 3 months
Treasury bills/notes
Time deposits
Money market ins/commercial
Redeemables preference shares (3 mos
before maturity)

Prob 1-3
Prob 1-6
Prob 1-10
Prob 1-13
Prob 1-15
Prob 1-21
Prob 1-28