CHART OF ACCOUNTS

Account Title Definition

Statement of Financial Position
Current Assets
Check and Other Cash Items This account represents undeposited customer
checks.
Cash in Bank This account refers to money deposited in the
bank under the name of Epicurean.
Payroll Fund This account represents the currency and coins
set aside for the payment of salaries and wages.
Petty Cash Fund This account refers to a limited amount of
money under the custody of the Cashier meant
for minor expenditures.
Inventories
Raw Materials Inventory This account represents cost of raw materials
on hand.
Prepaid Expenses This account refers to payments in advance,
particularly on rent and insurance.
Non-current Assets
Property, Plant and Equipment
Machineries, Tools, and Equipment (MTE) This account refers to the cost of machineries,
tools and equipment.
Accumulated Depreciation - MTE This account refers to the total amount of
depreciation accumulated on Machineries,
Tools, and Equipment based on cost.
Furniture, Fixtures and Equipment (FFE) This account refers to the cost of movable and
immovable properties for office use and store
use such as but not limited to tables, chairs, and
computers.
Accumulated Depreciation - FFE This account refers to the total amount of
depreciation accumulated on Furniture,
Fixtures, and Equipment based on cost.
Leasehold Improvement
Current Liabilities
Loans Payable Current This account refers to the indebtedness to
financial institutions payable within one year
from the end of the accounting period.
Accrued Expense This account refers to expenses such as
Employee Benefits, Interest Expense and
Utilities Expense accrued at month and
year-end.
SSS/ECC/Philhealth/ Pag-IBIG Premium This account refers to amounts withheld from
Contributions Payable the compensation of employees representing
their premium contributions to SSS, Philhealth
and PagIBIG and the corresponding share of
Epicurean as employer.
Withholding Tax Payable This account refers to taxes withheld from
employees compensation, professional fees,
and rentals.
Non-current Liabilities
Loans Payable The account refers to indebtedness to financial
institutions payable beyond one year from the
end of the accounting period.
Equity
Partner A, Capital This refers to the paid-up capital given by the
partners.
Partner B, Capital This refers to the paid-up capital given by the
partners.
Partner A, Drawings This refers to withdrawals of partners on
operations.
Partner B, Drawings This refers to withdrawals of partners on
operations.

Statement of Comprehensive Income

Sales This account refers to the amount received
from customers for products sold.
Cost of Goods Sold This account refers to the total cost of products
sold.
Selling and Administrative Costs
Salaries & Wages This account refers to the amount incurred for
services rendered by employees.
Employee Benefits This account refers to the 13t h month pay given
to regular employees.
Professional Fees This account refers to the amount incurred for
outsourced accounting and auditing services.
Advertising and Promotion This account refers to expenses incurred for
advertising and promotion.
Office Supplies This account refers to expenses incurred for
office and various supplies.
Communication This account refers to amount incurred for
telephone and cellular load expenses.
Meetings and Conferences This account refers to amount incurred for the
conduct of the employees meetings.
Repairs and Maintenance This account refers to expenses incurred in the
repair and maintenance of equipment.
Depreciation This account refers to amount provided for
wear and tear of furniture, machineries and
equipment not directly used for production.
Insurance This account refers to expenses incurred to
insure the production equipment.
Rentals This account refers to amount incurred for the
lease of the Epicurean Shop.
Miscellaneous Expense This account refers to all other expenses
incurred by Epicurean not classified under any
of the specified expenses account.
Finance Cost
Interest Expense on Borrowings This account refers to interest incurred on both
short-term and long-term indebtedness.