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1. Bored Games Co. is a domestic general partnership domiciled in the Philippines.

The address of its registered office is at Padre Noval St. Sampaloc, Manila.
2. The principal activity of the company is providing service through rental of board
games. It also offers complementary food.
3. The companys financial statements shall be prepared in compliance with the
Philippine Financial Reporting Standards (PFRS) which is the prevailing
accounting standards in the Philippines.
4. The accounting method of the company will be in accrual basis.
5. The companys business is VAT registered.
6. The service price will be 40% above cost.
7. The Net Sales of the company is based on its projected demand which is at its
yearly normal capacity.
8. That the company will continue to increase its market share for the succeeding
years of its operations
9. The profit of the company will be adjusted by the inflation rate of 4% every year.
10. The company shall establish a Petty Cash Fund amounting to Php 20,000 for the
purchase of office supplies, payment for the purchase of inventory, and other
petty expenses of the company.
11. The company will use the straight-line method for the depreciation of its
12. The company shall also establish a Change Fund of Php 10,000 which will be
replenished back to the vault at the end of the day.
13. 20% of the total amount of the store equipments will be deferred by the company
at the beginning of the year for the repairs and maintenance of the store
equipments which will be adjusted every year end to reflect the correct amount
that should be deferred.
14. The company will accrue for the payment of utilities which includes an amount of
Php 179,953 for electricity and Php 35,768 for the payment of water. Which will
also be adjusted every year end to reflect the correct amount of utilities that
should be accrued every year
15. The contract of lease will be valid for five years and includes monthly rent of Php
30,000, one month advance payment and 12 month deposit which will be
returned upon termination or nonrenewal of the contract.
16. The estimated useful lives are as follows:
Useful lives Buildings and leasehold land Shorter of 50 years and the lease term
Motor vehicles 4 years
Plant and equipment 5 15 years
The residual values and useful lives of property, plant and equipment are reviewed, and
adjusted as appropriate, at each balance sheet date.
17. The inventories shall be on a first in first out basis.