The ₱177,900 Question

The ₱177,900 Question

The following are from Financial Statements for the annual audits for years 2009, 2010, 2011 and 2012.   You will see the "Advances to suppliers" does not appear in years 2009 and 2010 and then appears in 2011.  In 2011, "Advances to suppliers" is ₱177,900.  "Advances to suppliers" are defined as "Advances to suppliers are excess payments made to suppliers or subcontractors."  In 2012, "Advances to suppliers" is then "-".

What happened to the ₱177,900?  How was this recorded in the books?  Are there Official Receipts covering this ₱177,900?  If written off, who authorized ₱177,900 being written off?  If not written off, what happened?

Then there are questions concerning why suppliers and subcontractors are given excess payments.  In this US, the tradition is 1/3 to start, 1/3 during and then 1/3 upon completion.  I was told here only 10% is withheld until completion.

2009 - 2010

2011

 

2012