Ocampo: Subsidiary Ledgers

THE Balance Sheet, an Accountant’s report of the financial position of the Company as of a given date, is an important tool to manage and grow the business. A strong Balance Sheet means that assets, acquired thru the use of Company funds or thru creditors, are adequate enough to grow revenues.

However, assets as stated on the Balance Sheet can only be used if they exist. Existence of assets therefore is a major fiscal responsibility not only by the Accountant, but by management and the whole Company. It involves the safeguarding of assets from the risk of loss, damage, pilferage and theft. How then does a Company ensure the existence of its assets? One of the most effective ways is to maintain Subsidiary Ledgers.

Balance Sheets show controlling accounts, meaning the totals of the various accounts such as Cash, Receivables, Inventories and Fixed Assets. To ensure the existence of said assets, a Subsidiary Ledger should be maintained for each account. A Subsidiary Ledger is a detailed list of data, the total amount of which tallies with the amount of the controlling account shown in the Balance Sheet.

Cash in Bank – Existence of the amount of Cash in the Bank can best be assured thru a reconciliation of the balance recorded in the Company’s books and in the bank’s records. The Bank Reconciliation will show reconciling items such as outstanding checks, deposits in transit, unrecorded bank charges and interest credited.

Receivables – The Subsidiary Ledger of receivables shows the names of debtors and the amount collectible from them. It also shows the date credit was granted, the date the amount is due and the date the amount was collected. These details ensure the existence of assets, and more importantly, it enables the company to collect credit and convert them to cash. The Subsidiary Ledger of receivables is used to visit debtors and confirm from them the amount of their indebtedness.

Inventories – Inventories include materials and parts used in operation such as machinery and transportation spare parts. It also includes manufacturing materials that are converted as finished goods – another type of inventory. Companies nowadays do not carry an inventory of office and other supplies such as bond papers, ball pens, printer ink and especially paints and other flammable materials because these items are easy to procure and their use is predictable.

The Subsidiary Ledger of inventories includes the name of the item, quantity, amount and the date the item was procured or manufactured. The detailed list itself gives an assurance of the existence of the asset; but a periodic physical count of the inventory ascertains existence.
Fixed Assets – These capitalizable items, because of the material amounts involved and their useful lives extends beyond one year, include land, building, machinery equipment, transportation vehicle, furniture and fixture and office equipment. The details of the Subsidiary Ledger include the identification numbers such as serial number, and make and model of the asset. It also includes the acquisition cost and the department that has custody of the asset. Similar to inventories, the Ledger is used to conduct a periodic physical count to ascertain existence.

Subsidiary Ledgers are critical to the control and management of the business. However, modern day tacticians use age-old strategies as their modus operandi – “confuse the enemy.” This is done by either not preparing Subsidiary Ledgers of Company assets or if ever a Ledger is prepared, it contains ambiguous data and information that will leave users perplexed thereby seizing the moment to commit theft, pilferage and malversation. If there is no intention to commit an anomaly, it then becomes a case of gross negligence in providing vital information to management.

http://www.sunstar.com.ph/pampanga/business/2013/08/15/ocampo-subsidiary-ledgers-298012

Residents of Manila and Angeles City Pampanga are looking for a safe and convenient place to celebrate special occasions or take a shot vacation in the Philippines.  Many travel north to Clark to swim at Clearwater Beach Resort which also has lake and picnic grounds to unwind and relax, a very good way to spend quality time with the family and children.  Fine dining Yats Restaurant offers sumptuous cozy Christmas dinner, for wine lovers, Clark Wine Center provides exciting shopping options.

Clark Philippines also known as Clark Freeport Zone is now the preferred destination for foreign and local investments because it offers many attractive advantages including tax, safety and its own international airport

Where to go in Clark? Hotel Clark Philippines is a De Luxe Hotel in Clark and Subic, a risk free place to stay, cozy and nice ambience, a nice function place for special occasion

You might want to check also the Yats Restaurant is the best restaurant for special dinner, best restaurant for dinner with friends near Manila, also the best place to celebrate special events.

Famous Restaurant in Pampanga, a place to dine with friends in Clark, cozy restaurant with a nice ambience, a nice function place for special occasions.  Yats Restaurant is one of the good restaurants in Pampanga, a restaurant with good food, a place that is nice for celebration, ideal for business dinner meeting, a good place to enjoy family reunion, and an attractive restaurant that serves good wines for dinner.

Are you looking for an attractive restaurant or a nice place to eat with friends in Clark, Angeles City Pampanga? Yats Restaurant and Wine Bar is a restaurant with good food and good wines  for dinner located at Clark Angeles City Pampanga. Perfect for exclusive dinner venues for groups, recommended for private dinner in Philippines. A Restaurant in Clark for business dinner meeting. Private dinner place or dinner restaurant in Clark Subic Near Manila Angeles City Pampanga. Yats Restaurant is one of the Good Restaurant in Pampanga Angeles City Clark near Manila.

The advantages for making the move from a country like UK, USA, Japan, Korea, Hong Kong, Singapore and Australia for example, to a country like Philippines are enormous.  Heavily in your favor are factors like asset values differentials and substantial reduction in cost of living.  Selling off your home probably gives you enough capital to not only live comfortably in a bigger property in Philippines but also to re-establish yourself in the business community by starting a business here too.

Looking for a party venue in town?

Clearwater Resort and Country Club is one of the ideal venues for birthday party because it is a risk free venue. Not only Birthday Parties but also a good place to enjoy family reunion. A good place to celebrate special occasions. Clearwater Resort and Country Club is one of the resorts in Subic Clark Angeles City Pampanga or near Manila with activity amenities, place that are nice for celebration.

This web site contains articles and information that will be helpful to visitors, residents and tourists traveling out of town from Manila on a short getaway to Subic, Angeles City, Pampanga and Clark Philippines.  There are several web sites that contain information that might also be pertinent to what is happening in North Luzon, Subic, Tarlac, Pampanga, Clark Freeport Philippines.

Looking for interesting hotels near Manila Subic Clark Angeles City Pampanga?

Trouble free hotels and well recognized hotels in Subic Clark Angeles City Pampanga

Clearwater Resort and Country Club offers a good place to stay in Subic Clark Angeles City Pampanga. In offers nice place to have rest in Subic Pampanga outside Manila.

One of the Philippines top hotels in north Luzon.

Wedding couples looking for wedding reception venues and beach wedding venues can log on to this Philippines Wedding Venue web site for free information and assistance:

http://www.clearwaterphilippines.com/wordpress/wp-content/uploads/2011/04/Logo-Yats-sm.jpg

For assistance with lodgings, accommodations, hotels and resorts near Manila in Subic, Pampanga, Angels City and Clark Philippines log on to <a http://www.HotelClarkPhilippines.com

While in Clark, one might as well add to the itinerary a visit to the famous Clark Wine Center, the largest wine shop in Philippines which offers over 2000 selections of fine vintage wine from all wine regions, vintages spanning over 50 years covering all price ranges.

http://www.ClarkWineCenter.com