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PART 4 – BOOKKEEPING AND FINANCIAL REPORTING

BOOKKEEPING SYSTEM

A. General Policies - Bookkeeping

1. Using the established Chart of Accounts and prescribed books of accounts, the Bookkeeper
shall record all the business transactions.

2. Monthly preparation of financial statements shall be done not later than 10 days after the end
of each month.

3. An Aging Schedule of Accounts Receivable and Accounts Payable shall also be prepared.

4. The system of accounting that shall be consistently practiced is the accrual basis.

5. Inventories shall be recorded using the “periodic system” thus monthly inventory is
necessary for the preparation of monthly financial statements.

6. Bookkeeping system shall be presented simply since most transactions are on sales and
payments. Therefore, the following modified books shall be maintained:

6.a. Sales and Cash Receipts Journal

6.b. Cash Disbursements Journal
6.c. General Journal

7. Recording to the Sales and Cash Receipts Journal, Cash Disbursement Journal and General
Journal shall be based on the Cash Receipts Voucher, Check Voucher and Journal Voucher
respectively.

8. Accounting files/records are to be kept for a minimum period of three (3) years.

B. Systems and Procedures - Bookkeeping

1. Based on original copies of source documents, the Bookkeeper records all business
transactions in its appropriate journal. The source documents referred to are as follows:

Cash Receipts Voucher - Weekly Sales and Collection Report (with attached Cash Sales,
Official Receipts and Deposit Slip/s).
Check Vouchers - (Purchase Order/s, Job Order/s, Payroll, and Petty Cash Fund
replenishment Summary, Supplier’s Official Receipts or equivalent).
Journal vouchers – with detailed description as to the nature of the transaction in the
voucher or as attached.
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2. The Bookkeeper then posts the data to its appropriate Subsidiary Ledgers after recording the
transaction to its respective journal,
3. From the balances in the Subsidiary Ledger, the Bookkeeper prepares an Aging Schedule of
Accounts Receivable and Accounts Payable that helps in analyzing which payments are
behind their due date, and by how many days.

4. Prepare Trial Balance, Income Statement, Balance Sheet, Statement of Cash Flow monthly
and Bank Reconciliation Statement monthly based on the balances in the Journal.

5. File all accounting records in correct order.

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C. System Flow – Bookkeeping

Cash
Receipt Check Journal
Voucher Voucher Voucher

File File

Sales & Cash Cash

General
Receipts Journal Disbursements
Journal
Journal

File File
File

Subsidiary Ledgers Trial Subsidiary Ledgers

Balance

Aging Schedule of Income Schedule of

Accounts Receivable Statement Depreciation and
Accounts Payable
Balance
Sheet

Bank
Reconciliation
Statement of
Statement
Cash Flow
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D. Duties and Responsibilities - Bookkeeper

I. JOB IDENTIFICATION

Job Title : Bookkeeper

II. ORGANIZATIONAL RELATIONSHIP

Reports to : The Manager

III. PURPOSE OF THE JOB

The bookkeeper prepares Check Voucher (CV), Cash Receipts Voucher (CRV),
Journal Voucher (JV). He maintains records of financial transactions by establishing
accounts; posting transactions. The creation of financial transactions includes posting
information to accounting journals or accounting software from such source documents as
invoices to customers, cash receipts, and supplier invoices. The bookkeeper also
reconciles accounts to ensure their accuracy.

IV. DUTIES AND RESPONSIBILITIES

1. Prepares Cash Receipts Vouchers (CRV) based on valid and authentic support
documents.

The support documents referred to are as follows:

- Weekly Sales and Collection Report
- Cash Sales
- Official Receipts
- Validated Deposit Slips

2. Prepares Check Vouchers (CV) based on valid and authentic support documents.
The support documents referred to are as follows (original copies):

- Purchase Orders/Job Orders

- Delivery receipts or equivalent
- Official receipts or equivalent
- Fund replenishment summary
- Payroll

3. Prepares Journal Voucher (JV) for accruals, account adjustments, correcting

entries or other transactions not recorded through Check Voucher of Cash
Receipt Voucher.

4. Takes charge of processing payroll.

5. Records all transactions to its appropriate Books of Accounts.

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6. Files all accounting documents/records in a proper order.

7. Prepares the monthly Trial Balance, Income Statement, Balance Sheet, Statement
of Cash Flow, Bank Reconciliation Statement, Schedule of Depreciation, Aging
Schedule of Accounts Receivables and Schedule of Accounts Payable.

8. Ensures implementation of the established policies, systems and procedures and

recommends any improvement.

9. Performs other duties as may be required by the superior officer

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E. Forms and Format

E.1. Sales and Cash Receipts Journal

MIRACLES MEGA CONSTRUCTION

Sales and Cash Receipts Journal

Date Referen Cash Cash Credit Gravel Gravel (itemized

ce Sales Sales 3/8 3/4 other
items
sold)

TOTAL

The above-simplified Sales and Cash Receipts Journal shall be used in

recording sales and other cash collections. The basis of recording in this book shall
be the Cash Receipts Voucher. Monthly balances shall be determined and the
amount is reflected in the financial statements. (Suggested using 10-14 column
journal)

E.2. Cash Disbursements Journal

MIRACLES MEGA CONSTRUCTION

Cash Disbursements Journal

Date Reference Regular Salaries and (Itemized Total

Purchases Wages Other Payments
Payments)

TOTAL

The above-simplified Cash Disbursements Journal will be used to record all

daily payments. The basis of recording shall be the Check Vouchers. Monthly
balances shall be considered final and the amount is reflected in the financial
statement. Other payments column has to be enumerated. (Suggested using 16-
colunm journal)
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E.3. General Journal

MIRACLES MEGA CONSTRUCTION

General Journal
Date Reference Depreciation Payables Other Accounts

TOTAL

The General Journal shall be used to record all transactions that cannot be
accommodated in the Sales and Disbursements Journals, such as depreciation,
adjusting entries, and others. The basis of recording in this journal shall be the
Journal Voucher. Monthly balances shall be considered final and the amount is
reflected in the financial statements. (Suggested using 8-column journal)

E.4. Cash Receipts Voucher

MIRACLES MEGA CONSTRUCTION
Leganes, Iloilo City
CASH RECEIPTS VOUCHER
Date:________________________ CRV Number: (pre-numbered)

Particulars Amount Particulars Amount

Prepared by: ____________________ Approved by: _______________________

Received Payment in full:______________________________________________

The Cash Receipts Voucher (CRV) shall cover cash receipts. All documents
supporting the sales and cash receipts (i.e., Weekly Sales Report, CS, OR) shall be
attached in this document.
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E.5. Check Voucher

MIRACLES MEGA CONSTRUCTION CENTER
Leganes, Iloilo City
CHECK VOUCHER
Date:________________________ CV Number: (pre-numbered)
Pay to___________________________________ Check Number:____________
For : ________________________________________________________________

Particulars Amount Particulars Amount

Prepared by: ____________________ Approved by: _______________________

Received Payment in full:______________________________________________

The Check Voucher (CV) shall cover all payments made by checks. All
documents supporting the payment shall be attached in this document.
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E.6. Journal Voucher

MIRACLES MEGA CONSTRUCTION

Leganes, Iloilo City

JOURNAL VOUCHER
Date:_____________________ JV Number: (pre-numbered)
For : ______________________________________________________________

Particulars Amount Particulars Amount

Prepared by: ____________________ Approved by: _______________________

The Journal Voucher (JV) shall cover all accruals, account adjustments or other
transactions not covered by CRV or CV.