The statement of Financial Position reports the

financial condition of the company. It includes the

assets, liabilities and partner's equity.

The Statement of Comprehensive Income determines the

revenues and expenses incurred by the company. It

merely reports the result of business operations in a

period.

The Statement of Changes in Owner's Equity includes the

partners share in net income or loss along with their

personal drawings.

The Statement of Cash Flows includes the reporting of

the cash inflows and outflows of the business during

the operating cycle. It includes the operating,

financing and investing activities.

8) Adjusting Entries

Adhering to the accounting principles it is therefore

necessary to have these entries to eliminate errors and

adjust accounts that need an adjustment. This will

bring the account to its true value and further

provides accuracy in decision making of the business'

partners.
9) Post Closing Entries

It is important to close nominal accounts and to close

income and expenditures incurred by the company in the

year of operations to ascertain proper accounting of

the business.

Accounting Process Diagram

Main Operating Cycles

A. Payroll Cycle

1. The employee will input the necessary data in their

respective daily time record. After which, the DTR will

be submitted to the manger.

2. The manger will verify the data, keep the record,

and then show it to the bookkeeper every 10th and 25th

day of the month.

3. The bookkeeper will compute the total days worked,

and other information needed. Then, he will prepare the

payroll sheet.

4. When the payroll sheet is done, the bookkeeper will

submit the information to the manager.

5. The manger then will prepare the pay slip for a

specific date.
B. Cash Receipts Flow Chart

1. The customer will choose what type of carwash

service he will avail.

2. The cashier will receive the charge payment from the

customer after the service is done.

3. The cashier will issue the receipts in duplicate,

for the customer and book record.

4. The cashier will remit the cash collections and

receipts to the manager.

5. The manger will keep the receipts and then save the

money into the vault.

6. The manger will then deposit the money in the bank

and the submit the receipt to the bookkeeper at the end

of the week.

7. The bookkeeper, who is not a regular employee, will

update the book record, particularly the Cash Receipts

Journal.
C. Cash Disbursement Cycle

1. The employee will make a request for cash

disbursement for any necessary expenses.

2. The cashier will fill up the request for cash

disbursement for any necessary expenses.

3. The manger will sign for approval, and command the

cashier to issue necessary amount of money.

4. The employee will surrender an official receipt to

the manager.

5. After verifying, the manger will keep the receipt

and then show it later to the bookkeeper.

6. The bookkeeper will update the book, particularly

the Cash Disbursement Journal.

Report Requirements

Financial No. of Time Period Received

Statement Copies
Statement of 1 Every six By the

Financial Position (6) months manager

Income Statement 1 Quarterly By the

manager
Statement of 5 (for Every six By the

Changes in every (6) months partners

Partner's Equity partner)

Statement of Cash 1 Every six By the

Flows (6) months manager

Notes to Financial 1 Every six By the

Statement (6) months manager

Financial Ratios 1 Every Six By the

(6) months manager

Business Forms

This form will be used in the entity's daily

transaction. This will include receipts from the

customers and it will serve as evidence each

transaction.

Echo Green Auto Car Wash

PURCHASE ORDER

Date: ________________________________________
P.O. No.: _____________________________________
Type of Service:________________________________
Units:________________________________________

__________________________________________
Signature over Printed Name

Cash Receipts Journal

This will be used to record cash received from sales.

Cash Receipts Journal

Page No.:_____

Date Order No. Dr Cr