PURCHASE BOOK

DATE PURCHASED FROM TERMS INV. NO. F

2011
Dec. 1 Arboleda Co., Inc. 2/10, n/30 101
2 Genius Paper Products P 300,000 down.
bal. 2/10, n/45 111
3 Sapphire Corporation 2/10, n/30 1082
6 Genius Paper Products 27% - 150 day note 127
7 Arboleda Co., Inc. n/30 107
9 Arboleda Co., Inc. n/30 112
10 Genius Paper Products 2/10, n/45 130
12 Sapphire Corporation n/30 1090
15 Genius Paper Products n/30 135
16 Arboleda Co., Inc. 2/10, n/45 117
18 Sapphire Corporation n/30 1095
20 Genius Paper Products 2/10, n/45 140 ▼
21 Arboleda Co., Inc. n/30 120
22 Genius Paper Products 1/10, n/30 145
23 Sapphire Corporation n/15 1099
24 Arboleda Co., Inc. 1/10, n/20 127
26 Genius Paper Products P 2,500 down, bal. 147
27 Sapphire Corporation n/30 1100
28 Genius Paper Products 2/10, n/30 151
29 Arboleda Co., Inc. 1/10, n/15 130
ACCOUNTS PAYABLE MERCHANDISE INVENTORY INPUT TAX DR. Legend

413,750.00 376,136.00 37,614.00

- -
1,425,000.00 1,295,455.00 129,545.00
459,600.00 417,818.00 41,782.00
1,600,000.00 1,454,545.00 145,455.00
34,200.00 31,091.00 3,109.00
87,500.00 79,545.00 7,955.00
1,250,000.00 1,136,364.00 113,636.00
14,000.00 12,727.00 1,273.00
13,250.00 12,045.00 1,205.00
85,000.00 77,273.00 7,727.00
85,000.00 77,273.00 7,727.00
127,875.00 116,250.00 ○ 11,625.00 ○
5,000.00 4,545.00 455
130,000.00 118,182.00 11,818.00
12,250.00 ▼ 11,136.00 ○ 1,114.00 ○
25,750.00 ▼ 23,409.00 ○ 2,341.00 ○
45,000.00 40,909.00 4,091.00 ▼
13,325.00 12,114.00 1,211.00
165,000.00 150,000.00 15,000.00
19,125.00 17,386.00 1,739.00
6,010,625.00 5,464,203.00 ☂ F1 546,422.00 ☂
-1001 -106 -111
127875/1.1 (VAT)

Replaced incorrect balance of 111,136. Amount based on 12,250/1.1 (VAT)

Replaced incorrect balance of 234,009. Amount based on 25,750/1.1 (VAT)
Traced from Purchase Invoice

Footed
31-Dec-11
Cost of Sales Cutoff Schedule

Sales Date Client Terms

Invoice

1256 12/15/2011 Ida Coronel 2/10, n/30

1257 12/17/2011 Luli Samson 2/10, n/30
1258 12/23/2011 Susan de Leon 2/10, n/30
1259 12/23/2011 Building Blocks, Inc. Cash
1260 12/23/2011 Building Blocks, Inc. Cash
1261 12/27/2011 Cora Tayag 2/10,n/30
1262 12/27/2011 Cora Tayag 2/10, n/30
1263 12/29/2011 Centenio, Antonio & Tantoco, CPAs Cash
1264 12/30/2011 Eagle Contractors C.O.D.
1265 12/30/2011 Dynasty Corporation C.O.D.
1266 12/30/2011 Benitez Merchandising 2/10,n/30
1267 1/3/2012 Benitez Merchandising C.O.D.
1268 1/3/2012 Luli Samson 2/10,n/30

Legend
F7.2 Obtained from Sales book
F2.2 Unrecorded sales Obtained from Sales Invoice
F7.1.1 Computation of cost of sale for unrecorded sales invoice
F7.1.2 Cost of sale obtained from General journal (page 3)
ales Cutoff Schedule

Sales Cost of sale Sales already Should be included

recorded ? in Dec. 31, 2011
sales

F7.2 138, 285 F7.1.2 86,659 YES YES

F7.2 86,850 F7.1.2 54,409 YES YES
F7.2 204,475 F7.1.2 127,955 YES YES
F7.2 75,805 F7.1.2 117,041 YES YES
F7.2 111,395 F7.1.2 YES YES
F7.2 208,600 F7.1.2 181,205 YES YES
F7.2 81,275 F7.1.2 YES YES
F7.2 736,000 F7.1.2 461,068 YES YES
F2.2 165,550 F7.1.1 103,409 NO YES
F2.2 186,250 F7.1.1 114, 181 NO YES
F2.2 232,000 F7.1.1 145,455 NO YES
F2.2 93,750 F7.1.1 57,955 NO NO
F2.2 29,755 F7.1.1 18,636 NO NO
DIFFERENCE
(Adjustments in
cost of sales)

103,409
114 181
145,455
COMPLETE SALES BOOK

Date Sold To Terms Inv. No.

1-Dec Eagle Contractors 2/10, n/30 1251
3-Dec Dynasty Corporation 2/10. n/30 1252
7-Dec Sampollo Company 2/10, n/30 1253
10-Dec Benitez Merchandising 2/10, n/30 1254
1255
15-Dec Ida Coronel 2/10, n/30 1256
17-Dec Luli Samson 2/10, n/30 1257
22-Dec Susan de Leon 2/10, n/30 1258
23-Dec Building Blocks Cash 1259
1260
27-Dec Cora Tayag 2/10, n/30 1261
1262
1263

ADJUSTMENTS:
12/30/2011 F2.2 Eagle Contractors Ω C.O.D. 1264
12/30/2011 F2.2 Dynasty Corporation Ω C.O.D. 1265
12/30/2011 F2.2 Benitez Merchandising Ω 2/10, n/30 1266
Total
Legend
F2.2 Obtained from Sales Invoices.
Ω During the conduct of the audit investigation, the audit team has found that the following s
In this case, the following should be noted and adjusted to avoid understatement of sales a
F7.1.2 Cost of sales obtained from General journal (page 3)
F71.1 Cost of sales computed from unrecorded sales invoice
Ф Total cost of sales occurred for December 2011 obtained from General ledger and adjusted for the c
 F Accounts Receivable Cash Sales Credit Sales Credit Output TOTAL SALE
246,825 224,386 22,439 246,825 F7.1.2
4,625 4,205 420 4,625 F7.1.2
58,035 52,759 5,276 58,035 F7.1.2
711,950 647,227 64,723 711,950 F7.1.2
309,525 281,386 28,139 309,525 F7.1.2
138,285 125,714 12,571 138,285 F7.1.2
86,850 78,955 7,895 86,850 F7.1.2
204,475 185,886 18,589 204,475 F7.1.2
75,805 68,914 6891 75,805 F7.1.2
111,395 101,268 10127 111,395 F7.1.2
208,600 189,636 18964 208,600 F7.1.2
81,275 73,886 7389 81,275 F7.1.2
736,000 669,091 66909 736,000 F7.1.2
2,786,445 187,200 2,703,313 270,331 2,973,645 F7.1.2

165,550 150,500 15050 165,550 F7.1.1

186,250 169,318 16932 186,250 F7.1.1
232,000 210909 21091 232,000 F7.1.1
3,018,445 539,000 3,234,040 323,404 3,557,445

s found that the following sales were not recorded.

d understatement of sales and cost of sales.

edger and adjusted for the cost of unrecorded sales.

TOTAL COST OF SALE
154,545.00
2,714.00
36,364.00
639,427.00

86,659.00
54,409.00
127,955.00
117,041.00

181,205.00
461,068.00
1,861,387.00

103,409.09
114,181.00
145,455.00
2,224,432.09