Stardust Infant Wears Inc.

Company overview

Duly incorporated in January 1997, STARDUST INFANT WEARS, INC. is engaged in the
manufacturing, importation and distribution of quality infant wears and accessories under the brand
CHILD CARE.

Company size

51-200 employees

Average Processing time

19 days

Vision

To become the leading manufacturer and wholesaler of safe, high quality and affordable infant
wears and accessories in the market with customer satisfaction the primordial concern.

To provide the most affordable products without compromising quality and safety.

To develop products according to the needs of our valuable customers taking into consideration
the affordability, aesthetics and safety of their babies.

To have a workplace with an atmosphere conductive to professional growth and satisfaction of

our employees.

Mission

STARDUST INFANT WEARS INCORPORATED are ardent about infants. We are driven to satisfy
our most valued asset, our CUSTOMERS. Our goal is to always be consistent with regard to our products
and services.

Our driving force is our EMPLOYEES. The COMPANY is PROUD of this Main ASSET. We value
THEM by providing a workplace devoid of any racial or gender discrimination and by allowing them to
grow professionally and intellectually.
ORGANIZATIONAL CHART

Managing director

Factory manager

Marketing manager Production H.R.D Manager Finance manager

manager

Senior Administrative staff Accounts Commercial

merchandisers manager manager

Merchandisers
Cutting manager Sewing room Finishing room
manager manager

Junior
merchandisers Helpers Line supervisor Supervisors
 CHART OF ACCOUNTS

Statement of Financial Condition

Asset Accounts

Account Account Title Description/Explanation of Account

Code
10000 ASSETS Assets are resources controlled by the entity as a result
of past events and from which future economic
benefits are expected to flow to the entity.
11000- Current Assets Cash and other assets that are reasonably expected to
17000 be realized in cash or intended for sale or
consummation within twelve months after the balance
sheet date, or the normal operating cycle of the
business, unless it is restricted from being exchanged
or used to settle a liability for at least twelve months
after the balance sheet date (PFRFC Chapter IV, Section
2.1.)
11100- Cash and Cash Equivalents Cash and short term, highly liquid investments, and
11140 held to meet short-term cash commitments rather
than for investment or other purposes. An investment
normally qualifies as a cash equivalent only when it has
a short maturity of, say, three months or less from the
date of acquisition. (PFRFC Chapter VII, Sections 2)
11110 Cash on Hand This account cash items such as currencies and coins,
including cash equivalents such as checks, awaiting for
deposit.
11120 Cash in Bank – Restricted This includes amounts received all cash deposited in
bank which is set aside for specific purpose which is
available for current use but expendable only as
authorized by the party which gives the funds.
11130 Cash in Bank – Unrestricted This includes amounts received all cash deposited in
bank which is available for use and not restricted for
specific purposes.
11140 Petty cash This account represents the amount of petty cash
which is intended to pay small expenses which cannot
be paid conveniently by means of check.
11200- Loans And Receivables These refer to financial assets with fixed or
determinable payments that are not quoted in an
active market. A receivable is recognized for the
difference between the gross receivable and the
related unearned interest income (PFRFC Chapter 10,
Section 4.1., par. 5).
11210 Accounts Receivables Trade This account refers to the amount due from customers
– Current resulting from sales of goods /merchandise which is
expected to be collected within the credit terms set by
the Board of Directors.
11220 Accounts Receivables Trade This account refers to total trade receivables due from
- Past Due customers which remain unpaid beyond the credit
terms set by the BOD.
11221 Allowance for Uncollectible Representing accounts receivable the company does
Accounts not expect to collect.
11230 Installment Receivables – Current This account refers to the amount due from customers
for sale of merchandise/goods on a deferred payment
or installment plan.
11240 Notes Receivable- Short term A written promise to receive a specific amount of cash
from the customer. Principal that is to be received
within one year or less.
11250 Interest Receivable Amount of interest that has been earned, but which
has not yet been received.
11260 Loans Receivable This account would include short-term loans made to
debtors other than trade debtors.
11270 Advances to Officers and This account refers to duly approved cash advances for
Employees official business to officers and employees.
11280 Due from Accountable Officers and This account refers to total collectibles due from
Employees accountable officers and employees arising from
shortages, losses and unliquidated cash advances
beyond the prescribed period, that are subject to
immediate settlement.
11290 Other Current Receivables This account refers to transactions/adjustments not
classified under any of the receivable accounts
mentioned.
11300 Financial asset at fair value This account refers to financial assets with quoted
through profit or loss price in the form of debt or equity securities that are
held for trading purposes.
11310 Financial asset at cost This refers to financial assets in the form of debt or
equity securities which are not quoted in an active
market and are expected to be realized in cash within
one year from the reporting period (net of
impairment).
11400 Inventories These are assets: (a) held for sale in the ordinary
course of business; (b) in the process of production for
such sale; or c) in the form of materials or supplies to
be consumed in the production process or in the
rendering of services.
11410 Finished Goods Inventory Cost of goods that have been completed by the
manufacturing process but which have not yet been
sold to customers.
11420 Work in Process Inventory Cost of materials that have been partially converted
through the production process.
11430 Raw Materials Inventory Total cost of all materials on hand and in transit at the
end of the accounting period.
11440 Unused Office Supplies Cost of supplies in the office that has not yet been
used.
11450 Unused Factory Supplies Cost of supplies in factory that has not yet been used.
11500 Prepaid Expenses This account refers to payments made in advance, to
be amortized within one (1) year (e.g. insurance,
interest, rentals, etc.)
11610 Prepaid rent Cost of rent that is paid in advance.
11620 Prepaid insurance Cost of insurance that is paid in advance.
11630 Deposit to Suppliers Amount paid in advance to suppliers.
11710 Input Tax This account refers to value-added tax due from or
paid by a VAT registered entity on the importation or
local purchases of merchandise/goods or services
including lease or use of property.
11720 Creditable VAT An amount of Value Added Tax withheld by a supplier
arising from sale or procurement of goods/services
from a taxable institution.
11800 Other Current Assets This account refers to current assets not falling in any
of the above categories.
12000 Non-Current Assets All other assets not classified as current to include
tangible, intangible, operating and financial assets of a
long term nature.
12100 Notes Receivable - Long Term A written promise to receive a specific amount of cash
from the customer. Principal that is to be received
within more than one year.
12200 Due from Branch This account refers to receivables from Branches and
should be closed at the end of the reporting period.
13000 Property, Plant and Equipment These are tangible assets that:(a) are held for use in
the production or supply of goods or services, for
rental to others, or for administrative purposes, and (b)
are expected to be used during more than one period.
13110 Land This account refers to the acquisition cost of the land
used for its main operation plus all incidental costs.
13120 Land Improvements This account refers to the cost of improvements after
land acquisitions such as fencing, roadways,
landscaping, etc, that are subject to depreciation over
their useful lives.
13121 Accumulated Depreciation – Land This account refers to the total amount of
Improvements depreciation/ impairment loss on land improvement
that are set up periodically and charged against the
current operations.
13130 Building and Improvements This account refers to the acquisition/construction cost
of the building and its improvement on the land owned
and used for its main operation.
13131 Accumulated Depreciation – This account refers to the total amount of
Building and Improvements depreciation/ impairment cost on building that are set
up periodically and charged against the current
operations.
13140 Furniture, Fixtures & Equipment This account refers to the cost of movable (furniture),
(FFE) immovable (fixtures) properties and office /
 production/ store equipment used in the ordinary
course of business such as but not limited to desks,
chairs, cabinets, computers, vaults, including incidental
expenses incurred in acquiring them, up to the time
they are received and ready for use.
13141 Accumulated Depreciation - FFE This account refers to the total amount of
depreciation/ impairment cost on Furniture, Fixture
and Office Equipment that are set up periodically and
charged against the current operations
13150 Machineries, Tools and This account refers to the cost of machineries, tools
Equipment and equipment owned and used in producing goods,
providing services and repairs.
13151 Accumulated Depreciation – This account refers to the total amount of depreciation
Machineries, Tools and Equipment on machineries, tools and equipment that are set-up
periodically and charged against the current
operations.
13160 Transportation Equipment This account refers to the cost of equipment owned
and used in transporting goods, services or personnel
such as motorcycles, pick-ups, vans and other vehicles.
13161 Accumulated Depreciation - This account refers to the total amount of
Transportation Equipment depreciation/ impairment cost on Transportation
Equipment that are set up periodically and charged
against current operations.
14000 Intangible Assets Identifiable non-monetary asset without physical
substance for which future economic benefits are
expected to flow back and amortized over the
estimated useful life.
15000 Other Non-Current Assets Assets which do not fit into any of the preceding
classifications.
16000 Miscellaneous Assets This account refers to assets not falling in any of the
above categories.

Liabilities account

No. Account Title Description/Explanation of Account

20000 LIABILITIES Liabilities are present obligations of the company
arising from past events, the settlement of which is
expected to result in an outflow of resources
embodying economic benefits.
21000- Current Liabilities Obligations reasonably expected to be settled within
28000 the normal business operating cycle, that: (a) is due
within 12 months after balance sheet date; (b) is held
primarily for the purpose of being traded; (c) does not
have an unconditional right to defer settlement of the
liability for at least 12 months after balance sheet date.
21100 Trade and Other Payables Amount billed to a company by its suppliers for goods
delivered to or services consumed by the company in
 the ordinary course of business.
21110 Accounts Payable Trade Amount owed to suppliers who provided goods and
services to the company but did not require immediate
payment in cash.
21120 Accounts Payable Non Trade This account refers obligations/ indebtedness to
suppliers for purchase of goods and services not
intended for sale (e.g. supplies, periodicals and etc.)
21130 Note Payable-Short Term The amount of principal due on a formal written
promise to pay within one year or less.
21140 Interest Payable Amount owed for interest on Notes Payable up until the
date of the balance sheet.
21150 Bank Loans Payable - Short Term Amount of loans from bank and due within a year
21160 Other Payables This account refers to payables not falling in any of the
above categories.
21200 Accrued Expenses This account refers to expenses that have been incurred
but not yet paid as of the end of accounting period.
21210 Accrued Salary Expense Amount of liability remaining at the end of reporting
period for salaries earned by employees but not yet
paid to them.
21220 Accrued Rent Expense Amount owed for rent incurred but not yet paid.
21230 Withholding Tax Payable Amount that the company withheld from employees’
wages and salaries as prescribed by law.
21240 Premium Contributions Payable This account refers to amounts withheld from the
compensation income of employees representing their
premium contributions to different agencies and the
corresponding share of the company as employer.
21241 SSS Contributions Payable This account refers to amounts withheld from the
compensation income of employees representing their
premium contributions to SSS agency and the
corresponding share of the company as employer.
21242 PhilHealth Contributions Payable This account refers to amounts withheld from the
compensation income of employees representing their
premium contributions to PhilHealth agency and the
corresponding share of the company as employer.
21243 Pag-ibig Contributions Payable This account refers to amounts withheld from the
compensation income of employees representing their
premium contributions to Pag-ibig agency and the
corresponding share of the company as employer.
21250 Output Tax This account refers to value added tax on the sale of
taxable merchandise/ goods and services.
21260 VAT Payable This account refers to excess of output tax over input
tax.
21270 Income Tax Payable Amount of income taxes currently due.
21280 Insurance Payable Cost of insurance incurred but not yet paid.
21290 Other Accrued Expenses This account refers to other accrued expenses that
cannot be classified under any of the preceding accrued
expenses accounts.
21300 Advances from Customers
21400 Other Current Liabilities
22000 Non-Current Liabilities
22100 Notes Payable-Long Term
22200 Bank Loans Payable - Long Term
22300 Discounts on Loans Payable
22400 Due to Branch
22500 Other Non-Current Liabilities
Equity Account
No. Account Title
30000 EQUITY
30110 Subscribed Share Capital- Common
30120 Subscription Receivable - Common
30130 Paid-up Share Capital – Common
30131 Treasury Shares Capital -Common
30210 Subscribed Share Capital-Preferred
30220 Subscriptions Receivable -Preferred
30230 Paid-up Share Capital-Preferred
30231 Treasury Shares Capital -Preferred
30300 Deposit for Share Capital
Subscription
Amounts received in advance of delivering goods.
This account refers to other liabilities that cannot be
classified under any of the preceding current liability
accounts.
Liabilities payable beyond one year.
The amount of principal due on a formal written
promise to pay within more than a year.
Amount of loans from bank and due within more than a
year.
This account represents the interest deducted from the
loan value/principal to be amortized over the term of
the loan using effective interest method. This is a
contra account to Bank Loans Payable.
The account is used to record inter-office transactions
in the books of Branch.
The totality of all other liabilities that cannot be
classified after any of the preceding liability accounts.
Description/Explanation of Account
Residual interest in the assets after deducting all its
liabilities.
This account refers to the share capital subscribed by
investors and is payable over a certain period of time.
This account refers to the total unpaid subscribed share
capital of investors.
This account refers to collected subscribed share capital
- common.
This account refers to common shares bought back and
held in treasury.
This account refers to the preferred share capital
subscribed by investors and is payable over a certain
period of time.
This account refers to the total unpaid subscribed
preferred share capital of shareholders.
This account refers to collected subscribed preferred
share capital.
This account refers to preferred shares previously issued
and reacquired and held in treasury, but not retired or
cancelled, and maybe re-issued to existing shareholders.
This account refers to amount paid by the investors for
capital subscription equivalent to the value of less than

30400 Net Loss
30500 Revaluation Surplus
Statement of Operations
No. Account Title
40000 REVENUE
40110 Sales
40120 Installment Sales
40130 Sales Returns and Allowances
40140 Sales Discounts
40200 Other Income
40210 Interest Income
40220 Realized Gross Profit
40230 Miscellaneous Income
50000 Cost of Goods Sold
51000 Cost of Goods Sold
one share and additional subscriptions in excess of
authorized capital pending approval of the amendments
to increase Authorized Share Capital. This may also
include the amount of share capital paid but not yet
covered by subscription contract. Subsidiary ledgers
shall be maintained for this account.
This account refers to temporary account to record
losses in operations incurred during the reporting
period.
This account refers to the appraisal increase in the
revaluation of land which are allowed subject to the
guidelines issued by the Authority.
Description/Explanation of Account
Income that arises in the course of the ordinary
activities of a cooperative and is referred to by a variety
of names including sales, service income, commission,
interest, dividends, royalties and rent.
This account refers to invoice price of all merchandise/
goods sold or services rendered whether paid or on
account.
This account refers to sales to customers of
merchandise/goods on a deferred payment plan or
installment plan.
This account refers to deductions from the invoice price
due to returns resulting from damage, defects or errors
in the kind or quality of goods delivered/sold to
customers.
This account refers to deductions allowed to customers
for settlement/prompt payment of their accounts.
Income received by the company other than its main
operation.
The amount of interest that has been earned during a
specific time period.
This account refers to income earned from the
installment sales.
This account refers to all other income earned for which
no specific account has been set up. This may include
winnings from raffle, contest, and competition resulting
from income generating activity/fund raising.
The cost/value of commodity sold as determined using
physical or perpetual inventory system.
This account refers to account used to record cost of
finished goods sold under perpetual inventory system.
51110 Purchases This account refers to cost of merchandise/goods
bought whether paid or on account under periodic
inventory system.
51120 Purchases Return and Allowances This account refers to deductions from invoice cost due
to damage, defects, or errors in the kind or quality of
goods bought.
51130 Purchases discounts This account refers to reductions in the cost of product
bought due to the early payment.
51140 Freight-in This account refers to the cost of transporting
merchandise/ goods from the place of purchase to
storage area. Should form part of the Cost of Good
Available for Sale.
51150 Factory Overhead This account refers to all cost other than raw materials
and direct labor used in the production/manufacturing/
process of good.
51200 Inventory Loss This account refers to reduction in inventory due to
spoilage, breakage and variance between inventory per
books and per count.

Expenses

No. Account Title Description/Explanation of Account

60000 EXPENSES
60110 Salaries Expense
60120 Wages Expense
60130 Employees' Benefits
60140 Retirement Benefit Expenses
60210 SSS Contribution
60220 Philhealth Contribution
Gross outflows of economic resources and incurrence of
obligations in the course of the ordinary activities of the
cooperative when those outflows result in decreases in
surplus.
Expenses incurred for the work performed by salaried
employees during the accounting period. These
employees normally receive a fixed amount on a
weekly, monthly, or annual basis.
Expenses incurred for the work performed by non-
salaried employees during the accounting period. These
employees receive an hourly rate of pay.
This account refers to benefits given to employees
directly involved in providing services other than
salaries and wages such as but not limited to 13th
month pay, bonus, allowances, and subsistence
allowances including human resource development.
The cost of providing retirement benefits to employees
directly involved in providing services. The cost of
retirement benefits is recognized as an expense in the
periods during which the services are rendered.
This account refers to the company's share in the
employees' contribution to SSS.
This account refers to the company's share in the
employees' contribution to Philhealth.
60230 Pag-ibig Contribution
60300 Professional and Consultancy Fees
60400 Supplies Expense
60500 Rent Expense
60600 Generation Cost
60700 Insurance
60800 Repairs and Maintenance
60900 Gas, Oil & Lubricants
61000 Taxes and Licenses
61100 Advertising Expense
61210 Depreciation Expense
61220 Amortization Expense
61230 Impairment Loss
61300 Training/ Seminars
61400 Travel and Transportation
61500 Communication Expense
61600 Incidental Expenses
61700 Bank Charges
61800 Miscellaneous Expenses
This account refers to the company's share in the
employees' contribution to Pag-ibig.
This account refers to amount incurred for professional
and consultancy services.
Cost of supplies used up during the period.
Cost of occupying rented facilities during the accounting
period.
Cost incurred in the generation of power, water and
other utilities that were used during the accounting
period.
This account refers to expenses incurred to insure the
equipment used in manufacturing.
This account refers to expenses incurred in the repair
and maintenance of machineries and equipment used in
the delivery of goods except major repairs that prolong
the life of the asset.
This account refers to amounts incurred for gasoline,
fuel and lubricants for machineries and equipment used
in the delivery of goods.
This account refers to expenses incurred for taxes, fees
and charges due to government entities, both national
and local.
Costs incurred by the company for ads, promotions, and
other selling and expenses (other than salaries).
Tear of building, machineries and equipment used in
operations.
This account refers to amount provided for amortization
of intangible assets.
This account refers to difference between the carrying
value and the recoverable value of the assets directly
used in the delivery of services.
This account refers to an amount incurred for officers
and staff directly involved in providing services for
attending trainings and seminars/conducting seminars.
This account refers to amount incurred for fares, toll
fees, board and lodging, per diem, and meal allowance
of officers and employees while on official travel.
This account refers to amount incurred for transmission
of messages such as courier, telephone, e-mail, fax,
internet, messengerial, and all other means of
communication used.
This account refers to expenses incurred to cover the
cost of expenditures which are not anticipated /
expected such as accidents not covered by insurance.
This account refers to bank fees and other charges
excluding cost of checkbooks.
This account refers to all other expenses incurred but

Other Gains and Losses
No. Account Title
70100 Interest Income
70200 Gain or Loss on Sale of Assets
70300 Gains or Losses in Financial Assets
through Profit and Loss
70400 Gains or Losses from Foreign
Exchange Valuation
70500 Prior Years' Adjustment
not classified under any of the specified expenses
account.
Description/Explanation of Account
Interest and dividends earned on bank accounts,
investments or notes receivable.
Occurs when the company sells one of its assets (other
than inventory) for more or less than the asset’s book
value.
This account refers to the cumulative gains (losses)
arising from change in the fair value and from the
disposal of financial assets through profit and loss.
This account refers to gains or losses arising from
retirement or conversion of foreign currency exchange
rate fluctuation per actual transaction.
This account refers to adjustments on transactions
affecting income and expenses incurred in the previous
year(s) which are taken up on the current year.