Annex A

Illustrative Accounting Entries - Typical transactions of Central/Regional Offices and Operating Units (CO/RO/OU) receiving Notice of Cash Allocation direct from DBM. REGULAR AGENCY BOOKS Transactions CO/RO/OU Account Title Account Code 222 401 501 Debit 1,000 350 650 Credit

Beginning Balances

Office Equipment Accounts Payable Government Equity

Receipt of allotment and NCA 1. Receipt of allotment for: Allotment Class CO MOOE PS FE Total 2. Receipt of Notice of Cash Allocation from DBM - P4,500 Payment of Expenses 3. Obligation for PS GAA CA 186

3,340 1,010 550 100 5,000

Posting in allotment column of the Registry of Allotments and ObligationsCapital Outlay, Maintenance and Other Operating Expenses, Personal Services and Financial Expenses

55 55 Cash - National Treasury, MDS Subsidy Income from National Government 102 601 4,500 4,500

P 500

Posting in obligation column of Registry of Allotments and Obligations - Personal Services 440 30 30 500 50 30 5 3 2 10 Salaries and Wages - Regular Pay PERA Additional Compensation Due to Officers and Employees Withholding Tax Payable GSIS Payable PAG-IBIG Payable PHILHEALTH Payable Other Payables 801 804 805 428 410 411 412 413 450 440 30 30 400 50 32 5 3 10

4. Recording of expenses Salaries PERA Additional Compensation Total Less: Salary Deductions. Withholding tax Life & Ret. premiums PAGIBIG premiums PHILHEALTH premiums GSIS-Salary loan Employees' Association Net Amount 5. Grant of Cash Advance for payroll - P400 6. Liquidation of Cash Advance 7. Remittance of Salary Deductions

100 400 Cash - Disbursing Officers Cash - National Treasury, MDS Due to Officers and Employees Cash - Disbursing Officers GSIS Payable PAG-IBIG Payable PHILHEALTH Payable Other Payables Cash - National Treasury, MDS 107 102 428 107 411 412 413 450 102 400 400 400 400 32 5 3 10 50

121

Annex A
Illustrative Accounting Entries - Typical transactions of Central/Regional Offices and Operating Units (CO/RO/OU) receiving Notice of Cash Allocation direct from DBM. REGULAR AGENCY BOOKS Transactions CO/RO/OU Account Title Account Code Debit Credit

8. Obligation for government share CA 186 - Life & Ret. Contribution GAA - PAG-IBIG Contribution GAA - PHILHEALTH Contribution

30 5 3 38

Posting in obligation column of Registry of Allotments and Obligations - Personal Services

9. Remittance of Govt. Share CA 186 - Life & Ret. Contribution GAA - PAG-IBIG Contribution GAA - PHILHEALTH Contribution

30 5 3 38

Life and Retirement Insurance Contributions PAG-IBIG Contributions PHILHEALTH Contributions Cash - National Treasury, MDS

817 818 819 102

30 5 3 38

Receipt of Bills / Claim 10. Obligation for: Rent ( for 1 year) Office Supplies MERALCO bill PLDT bill Travelling expense of Mr. Alex Cruz TOTAL 11. Payment of one year rent (July 1, 2002 to June 30, 2003) 12. Advance payment to Procurement Service (PS) for office supplies 13. Receipt of office supplies and invoice from Procurement Service. 14. Payment of MERALCO bill

70 150 50 40 110 420

Posting in obligation column of Registry of Allotments and Obligations - Maintenance and Other Operating Expenses

Prepaid Rent Cash - National Treasury, MDS Due from NGAs Cash - National Treasury, MDS Office Supplies Inventory Due from NGAs Electricity Cash - National Treasury, MDS Telephone/Telegraph and Internet Cash - National Treasury, MDS Due from Officers and Employees Cash - National Treasury, MDS Traveling Expense - Local Due from Officers and Employees Cash - Collecting Officers Due from Officers and Employees

161 102 130 102 149 130 835 102 837 102 128 102 831 128 106 128

70 70 150 150 150 150 50 50 40 40 110 110 98 98 12 12

150

15. Payment of PLDT bill

16. Granting of cash advance for travel of Mr. Alex Cruz 17. Liquidation of cash advance for travel of Mr. Alex Cruz 18. Refund of excess cash advance for travelling expense of Mr. Alex Cruz

122

Annex A
Illustrative Accounting Entries - Typical transactions of Central/Regional Offices and Operating Units (CO/RO/OU) receiving Notice of Cash Allocation direct from DBM. REGULAR AGENCY BOOKS Transactions CO/RO/OU Account Title Account Code Debit Credit

19. Adjustment of obligation by P12 for refund of excess advance for traveling expense

Negative posting in obligation column of Registry of Allotments and Obligations Maintenance and Other Operating Expenses Subsidy Income from National Government Cash - Collecting Officers 601 106 12 12

20. Deposit of collection from excess advance to BTr Petty Cash Fund 21. Obligation for Petty Cash Fund (PCF) for - P35

Posting in obligation column of Registry of Allotments and Obligations Maintenance and Other Operating Expenses Petty Cash Fund Cash - National Treasury, MDS Posting in obligation column of Registry of Allotments and Obligations Maintenance and Other Operating Expenses Office Supplies Expenses Postage and Deliveries Cash - National Treasury, MDS 849 838 102 20 10 30 105 102 35 35

22. Establishment of Petty Cash Fund (PCF)

23. Obligation of P30 for replenishment of Petty Cash Fund

24. Replenishment of Petty Cash Fund Bond paper Postage stamps

20 10 30

25. Closing of the Petty Cash Fund within the year due to retirement of the PCF Custodian 26. Adjustment of obligation for refunded PCF per ALOBS supported by Official Receipt

Cash - Collecting Officers Petty Cash Fund Negative posting in obligation Registry of Allotments and Obligations Maintenance and Other Operating Expenses Subsidy Income from NG Cash - Collecting Officers Posting in obligation column of Registry of Allotments and Obligations Maintenance and Other Operating Expenses Petty Cash Fund Cash - National Treasury, MDS

106 105

5 5

27. Deposit of collection from refund of Petty Cash Fund 28. Obligation for Petty Cash Fund for - P35 for the newly designated PCF Custodian

601 106

5 5

29. Establishment of Petty Cash Fund for the newly designated PCF Custodian Purchase of Equipment 30. Obligation for office equipment per Purchase Order - P100

105 102

35 35

Posting in obligation column of Registry of Allotments and Obligations Capital Outlay

123

Annex A
Illustrative Accounting Entries - Typical transactions of Central/Regional Offices and Operating Units (CO/RO/OU) receiving Notice of Cash Allocation direct from DBM. REGULAR AGENCY BOOKS Transactions CO/RO/OU Account Title Account Code 130 102 222 130 Debit 100 100 100 100 Credit

31. Payment to Procurement Service for office equipment

Due from NGAs Cash - National Treasury, MDS Office Equipment Due from NGAs Posting in obligation column of Registry of Allotments and Obligations Capital Outlay IT Equipment and Software Accounts Payable Accounts Payable Cash - National Treasury, MDS Withholding Taxes Payable

32. Receipt of office equipment based on Invoice/ delivery receipt 33. Obligation prior to approval of purchase order for IT Software - P400

34. Receipt of IT Software based on invoice/delivery receipt from Computer Technologies (corporation) 35. Payment of IT Software to Computer Technologies Gross 400 Less: Withholding Tax (VAT) 36 364 Construction of Building 36. Obligation for building prior to the signing of the contract - P700

215 421 421 102 410

400 400 400 364 36

Posting in obligation column of Registry of Allotments and Obligations Capital Outlay Cash - Collecting Officers Performance/Bidders/Bail Bonds Payable Due from National Treasury Cash - Collecting Officers Advances to Contractors Cash - National Treasury, MDS Construction in Progress - Agency Assets Accounts Payable Advances to Contractors 106 414 134 106 168 102 230 401 168 50 50 50 50 105 105 350 300 50

37. Receipt of cash from the contractor paid as performance bond 38. Deposit of ( cash) performance bond to BTr thru AGDB 39. Payment of 15% of contract amount as advances to contractor - P700 x 15% 40. Receipt of 1st progress billing for building 50% of P700 Less: Recoupment Net Amount 41. Payment of 1st progress billing for building Accounts Payable Less: 10% Retention 35 Withholding Tax 27 Net Amount

P350 50 P300

300 62 238

Accounts Payable Cash - National Treasury, MDS Guaranty Deposits Payable Withholding Taxes Payable

421 102 408 410

300 238 35 27

124

Annex A
Illustrative Accounting Entries - Typical transactions of Central/Regional Offices and Operating Units (CO/RO/OU) receiving Notice of Cash Allocation direct from DBM. REGULAR AGENCY BOOKS Transactions CO/RO/OU Account Title Account Code 230 401 168 Debit 340 285 55 Credit

42. Receipt of final billing for building 50% of P700 (delayed completion) Less: Liquidated Damages Net Amount Less: Recoupment Amount Due 43. Adjustment of RAOCO by P10 to reduce original amount of obligation due to liquidated damages

P350 10 P340 55 P285

Construction in Progress - Agency Assets Accounts Payable Advances to Contractors

Posting in obligation column of Registry of Allotments and Obligations Capital Outlay Accounts Payable Cash - National Treasury, MDS Withholding Taxes Payable 401 102 410 285 253 32

44. Final payment for building Accounts Payable Less: 10% Withholding Tax (VAT) Net Amount 45. Turn-over & acceptance of building Contract Amount Less: Liquidated Damages Net Cost Transfer of Funds to Implementing Agency 46. Obligation prior to approval of transfer of cash to another agency for construction of building-P250

285 32 253

700 10 690

Buildings Construction in Progress - Agency Assets

204 230

690 690

Posting in obligation column of Registry of Allotments and Obligations Capital Outlay Due from NGAs Cash - National Treasury, MDS Buildings Due from NGAs 130 102 204 130 250 250 250 250

47. Issuance of check to implementing agency (IA)

48. Receipt of liquidation reports/turn-over of building by IA - P250 Fund Assistance to NGOs/POs 49. Approval of fund assistance to NGOs/POs - P150 for livelihood project

Posting in obligation column of Registry of Allotments and Obligations Maintenance and Other Operating Expenses Due from NGOs/POs Cash - National Treasury, MDS 133 102 150 150

50. Issuance of check to NGOs/POs

51. Receipt of liquidation reports from NGOs / POs Travelling Expense-Local Training and seminar expenses Office supplies expense Total

50 30 20 100

Travelling Expense-Local Training and Seminar Expenses Office Supplies Expense Due from NGOs/POs

831 833 849 133

50 30 20 100

125

Annex A
Illustrative Accounting Entries - Typical transactions of Central/Regional Offices and Operating Units (CO/RO/OU) receiving Notice of Cash Allocation direct from DBM. REGULAR AGENCY BOOKS Transactions CO/RO/OU Account Title Account Code Debit Credit

Grants and Donations 52. Obligation of amount for tuition fees of employees (under scholarship grants) - P70

Posting in obligation column of Registry of Allotments and Obligations Maintenance and Other Operating Expenses Grants and Donations Accounts Payable Accounts Payable Cash - National Treasury, MDS Posting in obligation column of Registry of Allotments and Obligations Maintenance and Other Operating Expenses Grants and Donations Cash - National Treasury, MDS Cash - National Treasury, MDS Subsidy Income from National Government Accounts Payable Cash - National Treasury, MDS 889 102 102 601 401 102 50 50 350 350 200 200 889 401 401 102 70 70 70 70

53. Recording of the bill from educational institution for tuition fees of scholars 54. Payment of tuition fees of scholars

55. Obligation of stipend/book allowances of scholars - P 50

56. Payment of stipend/book allowance to scholars Payment thru ADA 57. Receipt of NCA for PY accounts payable - P350

58. Payment of PY accounts payable - P200

Public Infrastructures 59. Receipt of cash from contractor paid as performance bond for the construction of roads 60. Deposit of cash (performance bond) to BTr thru AGDB

Cash - Collecting Officers Performance/Bidders/Bail Bonds Payable Due from National Treasury Cash - Collecting Officers Posting in obligation column of Registry of Allotments and Obligations Capital Outlay Advances to Contractors Cash - National Treasury, MDS

106 414 134 106

150 150 150 150

61. Obligation for construction of roads prior to signing of contract - P2,000

62. Payment of 15% of contract amount for the advances to the contractor for the construction of roads P2,000 x 15% 63. Receipt of progress billing for construction of roads 50% of P2,000 1000 Less: Recoupment 150 Net Amount 850

168 102

300 300

Construction in Progress - Roads, Highways and Bridges Accounts Payable Advances to Contractors

232 401 168

1,000 850 150

126

Annex A
Illustrative Accounting Entries - Typical transactions of Central/Regional Offices and Operating Units (CO/RO/OU) receiving Notice of Cash Allocation direct from DBM. REGULAR AGENCY BOOKS Transactions CO/RO/OU Account Title Account Code 401 102 410 408 Debit 850 660 90 100 Credit

64. Payment of bill for the construction of roads Accounts Payable (1,000 -150) Less: Withholding Tax 90 10% Retention 100 Net Amount 65. Presentation of final billing for roads 50% of P2,000 Less: Liquidated Damages Net Cost Less: Recoupment Amount Due

850 190 660

Accounts Payable Cash - National Treasury, MDS Withholding Taxes Payable Guaranty Deposits Payable

1,000 50 950 150 800

Construction in Progress - Roads, Highways and Bridges Accounts Payable Advances to Contractors

232 401 168

950 800 150

66. Adjustment of RAOCO by P50 to reduce original amount of obligation

Negative posting in obligation column of Registry of Allotments and Obligations Capital Outlay Accounts Payable Cash - National Treasury, MDS Withholding Taxes Payable Guaranty Deposits Payable 401 102 410 408 800 619 86 95

67. Payment of final bill for the construction of roads Accounts Payable Less: Withholding Tax 86 10% Retention 95 Net Amount 68. Turn-over and acceptance of roads Contract amount Less: Liquidated Damages Net Cost Remittance of Withholding Taxes Thru TRA 69. Remittance of Withholding Tax thru TRA Salaries IT Software (Corporation) Building (Corporation) Roads (Corporation) Total

800 181 619

2,000 50 1,950

Public Infrastructures Construction in Progress - Roads, Highways and Bridges

243 232

1,950 1,950

50 36 59 176 321

Withholding Taxes Payable Subsidy Income from National Government

410 601

321 321

Release of Performance Bond 70. Receipt of NCA for deposited performance bonds received Cash-National Treasury, MDS from contractors for the construction of the following: Due from National Treasury Building Roads Total 71. Refund of performance bonds to contractors . 50 150 200 Performance/Bidders/Bail Bonds Payable Cash-National Treasury, MDS

102 134

200 200

414 102

200 200

Refund of Retention Fees 72. Refund of retention fees to contractors .

Guaranty Deposits Payable

408

406

127

Annex A
Illustrative Accounting Entries - Typical transactions of Central/Regional Offices and Operating Units (CO/RO/OU) receiving Notice of Cash Allocation direct from DBM. REGULAR AGENCY BOOKS Transactions CO/RO/OU Account Title Account Code 102 Debit Credit 406

Cash-National Treasury, MDS Building Roads Total P35 371 406

Issuance of Supplies and Materials 73. Receipt of the Report of Supplies and Materials Issued Office Supplies Expenses from the Property/Supply Unit Office Supplies Inventory office supplies - P140 Adjusting Entries 74. Recording of depreciation for the following: Cost Buildings 690 IT Equipment 400 Office Equipment 100 Total 1,190 75. Rent expense for the year

849 149

140 140

Depn. 35 40 10 85

Depreciation - Buildings Depreciation - IT Equipment Depreciation - Office Equipment Acc. Depn. - Buildings Acc. Depn. - IT Equipment Acc. Depn. - Office Equipment Rent Expense Prepaid Rent

904 915 922 304 315 322 841 161

35 40 10 35 40 10 35 35

128

Annex A
Illustrative Accounting Entries - Typical transactions of Central/Regional Offices and Operating Units (CO/RO/OU) receiving Notice of Cash Allocation direct from DBM. REGULAR AGENCY BOOKS Transactions CO/RO/OU Account Title Account Code Debit Credit

CLOSING ENTRIES 1. Unused NCA Subsidy Income from National Government Cash-National Treasury, MDS Subsidy Income from National Government Income and Expense Summary 601 102 601 533 187 187 2,667 2,667

2. Subsidy Income from the National Government and Income

3. Expenses

Income and Expense Summary Salaries and Wages-Regular Payroll PERA Additional Compensation Life and Ret. Insurance Contribution PAG-IBIG Contribution PHILHEALTH Contribution Traveling Expense, Local Training and Seminar Fees Electricity Telephone/Telegraph and Internet Postage and Deliveries Rent Expenses Office Supplies Expenses Grants and Donations Depreciation - Buildings Depreciation - IT Equipment Depreciation - Office Equipment Income and Expense Summary Retained Operating Surplus Retained Operating Surplus Government Equity Government Equity Public Infrastructures

535 801 804 805 817 818 819 831 833 835 837 838 841 849 890 904 915 922 532 534 534 501 501 243

1,131 440 30 30 30 5 3 148 30 50 40 10 70 40 120 35 40 10 1,536 1,536 1,536 1,536 1,950 1,950

4. Income and Expense Summary

5. Retained Operating Surplus

6. Transfer of Public Infrastructures account to the Registry of Public Infrastructures

129

Annex B
Illustrative Accounting Entries - Typical transactions of Central/Regional Offices and Operating Units (CO/RO/OU) receiving Notice of Cash Allocation direct from DBM and ROs/OUs receiving funding checks from CO/RO. CENTRAL OFFICE (CO) Transactions Account Title
Account Code Debit Credit

REGIONAL OFFICE (RO) Account Title

Account Code Debit Credit

OPERATING UNITS Account Title

Account Code Debit

Receipt of Allotment/NCA andTransfer of Subsidy 1. Receipt of allotment for: Allotment Class CO MOOE PS Total 2. Receipt of Notice of Allocation from DBM CO 1,800 260 200 2,260 CO 2,000 RO Posting in allotment column of OU Registry of Allotments and ObligationsCapital Outlay, Maintenance and Other Operating Expenses, Personal Services 150 150 OU Cash - National Treasury, MDS 150 Subsidy Income from National Government Negative posting in allotment column of Registry of Allotments and ObligationsCapital Outlay 102 601 2,000 2,000 Posting in allotment column of Registry of Allotments and ObligationsMaintenance and Other Operating Expenses, Personal Services Posting in allotment column of Registry of Allotments and ObligationsMaintenance and Other Operating Expenses, Personal Services

250 250 RO 250

Cash - National Treasury, MDS Subsidy Income from National Government Posting in allotment column of Registry of Allotments and ObligationsCapital Outlay

102 601

250 250

Cash - National Treasury, MDS Subsidy Income from National Government

102 601

150

3. Release of sub-allotment to Regional Offices Allotment Class MOOE CO Total 4. Release of Letter Advice of Allotment to OU Allotment Class MOOE CO Total 5. Transfer of subsidy to Regional Office thru funding check or fund transfer 6. Transfer of subsidy to Operating Unit thru funding check or fund transfer Payment of Expenses 7. Obligation for Personal Services

RO 160 1,500 1,660

OU 50 700 750 Subsidy to Regional Offices/Staff Bureaus Cash - National Treasury, MDS 1,400 538 102 1,400 1,400

Negative posting in allotment column of Registry of Allotments and ObligationsCapital Outlay, Maintenance and Other Operating Expenses

Posting in allotment column of Registry of Allotments and ObligationsCapital Outlay, Maintenance and Other Operating Expenses

Cash in Bank-Local Currency, Curr. Acct. Subsidy from Central Office

110 602

1,400 1,400

Subsidy to Operating Units Cash in Bank-Local Currency, Curr. Acct. 600

539 110

600 600

Cash in Bank-Local Currency, Curr. Acct. Subsidy from Regional Office/Staff Bureau

110 603

600

CO 140

RO 250

OU Posting in obligation column of 130 Registry of Allotments and ObligationsPersonal Services

Posting in obligation column of Registry of Allotments and ObligationsPersonal Services

Posting in obligation column of Registry of Allotments and ObligationsPersonal Services

130

Annex B
Illustrative Accounting Entries - Typical transactions of Central/Regional Offices and Operating Units (CO/RO/OU) receiving Notice of Cash Allocation direct from DBM and ROs/OUs receiving funding checks from CO/RO. CENTRAL OFFICE (CO) Transactions 8. Recording of expenses for salaries and wages CO 125 10 5 140 14 6 2 1 23 117 CO 117 RO 226 16 8 250 25 12 4 2 43 207 RO 207 Salaries and Wages-Regular Pay OU PERA 118 Additional Compensation 8 Withholding Taxes Payable 4 GSIS Payable 130 PAGIBIG Payable PHILHEALTH Payable 13 Due from Officers and Employees 5 2 1 21 109 OU Cash-Disbursing Officers 109 Cash - National Treasury, MDS Due from Officers and Employees Cash-Disbursing Officers GSIS Payable PAG-IBIG Payable PHILHEALTH Payable Cash - National Treasury, MDS Withholding Taxes Payable Subsidy Income from National Government 801 804 805 410 411 412 413 128 125 10 5 14 6 2 1 117 Salaries and Wages-Regular Pay PERA Additional Compensation Withholding Taxes Payable GSIS Payable PAGIBIG Payable PHILHEALTH Payable Due from Officers and Employees 801 804 805 410 411 412 413 128 226 16 8 25 12 4 2 207 Salaries and Wages-Regular Pay PERA Additional Compensation Withholding Taxes Payable GSIS Payable PAGIBIG Payable PHILHEALTH Payable Due from Officers and Employees 801 804 805 410 411 412 413 128 118 8 4 Account Title
Account Code Debit Credit

REGIONAL OFFICE (RO) Account Title

Account Code Debit Credit

OPERATING UNITS Account Title

Account Code Debit

Salaries & Wages - Regular Pay PERA Additional Compensation Total Less: Withholding Tax GSIS Life & Ret. Premiums PAGIBIG Premiums PHILHEALTH Premiums Net 9. Granting of Cash Advance

107 102 128 107 411 412 413 102 410 601

117 117 117 117 6 2 1

Cash-Disbursing Officers Cash - National Treasury, MDS Due from Officers and Employees Cash-Disbursing Officers

107 102 128 107 411 412 413 102 410 601

207 207 207 207 12 4 2

Cash-Disbursing Officer Cash - National Treasury, MDS Due from Officers and Employees Cash-Disbursing Officer

107 102 128 107 411 412 413 102 410 601

109

10. Liquidation of Cash Advance Remittance of Salary Deductions 11. Remittance of Salary Deductions

109

GSIS Payable PAG-IBIG Payable PHILHEALTH Payable 9 Cash - National Treasury, MDS Withholding Taxes Payable Subsidy Income from National Government

GSIS Payable PAG-IBIG Payable PHILHEALTH Payable 18 Cash - National Treasury, MDS Withholding Taxes Payable Subsidy Income from National Government

5 2 1

12. Issuance of TRA for Withholding taxes

14 14

25 25

13

Receipt of Bills/Claims 13. Receipt of bills from Meralco and PLDT 13.1 Obligation

posting in obligation column of Registry of Allotments and ObligationsMaintenance and Other Operating Exp.

posting in obligation column of Registry of Allotments and ObligationsMaintenance and Other Operating Exp.

posting in obligation column of Registry of Allotments and ObligationsMaintenance and Other Operating Exp.

13.2 Recording of payables based on bills received CO 30 10 40 RO 40 15 55 OU Electricity 8 Telephone/Telegraph and Internet 5 Accounts Payable 13 Accounts Payable Cash - National Treasury, MDS 835 837 401 30 10 Electricity Telephone/Telegraph and Internet 40 Accounts Payable 835 837 401 40 15 Electricity Telephone/Telegraph and Internet 55 Accounts Payable 835 837 401 8 5

MERALCO PLDT

14. Payment of bills

401 102

40 40

Accounts Payable Cash in Bank-Local Currency, Curr. Acct.

401 110

55 55

Accounts Payable Cash in Bank-Local Currency, Curr. Acct.

401 110

13

15. Grant of Cash Advance for travel 15. 1. Obligation

Posting in obligation column of Registry of Allotments and ObligationsMaintenance and Other Operating Exp.

Posting in obligation column of Registry of Allotments and ObligationsMaintenance and Other Operating Exp.

Posting in obligation column of Registry of Allotments and ObligationsMaintenance and Other Operating Exp.

131

Annex B
Illustrative Accounting Entries - Typical transactions of Central/Regional Offices and Operating Units (CO/RO/OU) receiving Notice of Cash Allocation direct from DBM and ROs/OUs receiving funding checks from CO/RO. CENTRAL OFFICE (CO) Transactions 15.2. Grant of Cash Advance CO 8 16. Liquidation of Cash Advance for travel 17. Collections 17.1. Receipt of collection Overpayment of salaries Refund of Cash Advance-travel CO 5 RO 10 RO 8 Account Title OU Due from Officers and Employees 12 Cash - National Treasury, MDS OU Travelling Expense - Local 7 Due from Officers and Employees
Account Code Debit Credit

REGIONAL OFFICE (RO) Account Title Due from Officers and Employees Cash in Bank-Local Currency, Curr. Acct. Travelling Expense - Local Due from Officers and Employees
Account Code Debit Credit

OPERATING UNITS Account Title Due from Officers and Employees Cash in Bank-Local Currency, Curr. Acct. Travelling Expense - Local Due from Officers and Employees
Account Code Debit

128 102 831 128

8 8 5 5

128 110 831 128

10 10 8 8

128 110 831 128

12

CO 5 3 8

RO 3 2 5

OU 2 Cash-Collecting Officers 5 Due from Officers and Employees 7 Salaries and Wages-Regular Pay Negative posting in obligation column of Registry of Allotments and ObligationsMaintenance and Other Operating Expenses and Personal Services Subsidy Income from National Government Cash-Collecting Officers

106 128 801

8 3 5

Cash-Collecting Officers Due from Officers and Employees Salaries and Wages-Regular Pay Negative posting in obligation column of Registry of Allotments and ObligationsMaintenance and Other Operating Expenses and Personal Services

106 128 801

5 2 3

Cash-Collecting Officers Due from Officers and Employees Salaries and Wages-Regular Pay Negative posting in obligation column of Registry of Allotments and ObligationsMaintenance and Other Operating Expenses and Personal Services

106 128 801

17.2. Adjustment of obligation

17.3. Deposit of collection

601 106

Subsidy Income from National Government 8 Cash in Bank-Local Currency, Curr. Acct. Cash-Collecting Officers Posting in allotment column of Registry of Allotments and ObligationsMaintenance and Other Operating Exp.

601 110 106

3 2

Subsidy Income from National Government Cash in Bank-Local Currency, Curr. Acct. 5 Cash-Collecting Officers Posting in allotment column of Registry of Allotments and ObligationsMaintenance and Other Operating Exp.

601 110 106

2 5

18. Payment of one year rental 18.1. Obligation

CO 12

RO 3

OU Posting in allotment column of 2 Registry of Allotments and ObligationsMaintenance and Other Operating Exp. Prepaid Rent Cash - National Treasury, MDS Posting in obligation column of Registry of Allotments and ObligationsMaintenance and Other Operating Exp. 161 102 12 12

18.2. Payment 19. Purchase of Office Supplies 19.1. Earmarking of fund prior to signing of Purchase Order (PO)

Prepaid Rent Cash in Bank-Local Currency, Curr. Acct. Posting in obligation column of Registry of Allotments and ObligationsMaintenance and Other Operating Exp.

161 110

3 3

Prepaid Rent Cash in Bank-Local Currency, Curr. Acct. Posting in obligation column of Registry of Allotments and ObligationsMaintenance and Other Operating Exp.

161 110

19.2. Recording of Payable for Office Supplies received

CO 30

RO 35

OU Office Supplies Inventory 20 Accounts Payable

149 401

30 30

Office Supplies Inventory Accounts Payable

149 401

35 35

Office Supplies Inventory Accounts Payable

149 401

20

20. Purchase of Equipment 20.1. Earmarking of fund for Equipment per PO

Posting in obligation column of Registry of Allotments and ObligationsCapital Outlay No Entry

Posting in obligation column of Registry of Allotments and ObligationsCapital Outlay No Entry 222 401 401 102 401 50 80 72 8 Office Equipment 50 Accounts Payable Accounts Payable Cash in Bank-Local Currency, Curr. Acct. Withholding Taxes Payable 222 401 401 110 410 135 170 154 16

Posting in obligation column of Registry of Allotments and ObligationsCapital Outlay No Entry Office Equipment 135 Accounts Payable Accounts Payable Cash in Bank-Local Currency, Curr. Acct. Withholding Taxes Payable 222 401 401 110 410 120 140

20.2. Serving of PO to dealer 20.3. Receipt of Equipment with Invoice 21. Payment of Payables for supplies and equipment Total Less: Withholding Taxes CO 50 CO 80 8 72 RO 135 RO 170 16 154

OU Office Equipment 120 Accounts Payable OU 140 14 126 Accounts Payable Cash - National Treasury, MDS Withholding Taxes Payable

132

Annex B
Illustrative Accounting Entries - Typical transactions of Central/Regional Offices and Operating Units (CO/RO/OU) receiving Notice of Cash Allocation direct from DBM and ROs/OUs receiving funding checks from CO/RO. CENTRAL OFFICE (CO) Transactions Construction of Building 22. Construction of Building 22.1. Earmaking of funds prior to Signing of contract Account Title
Account Code Debit Credit

REGIONAL OFFICE (RO) Account Title

Account Code Debit Credit

OPERATING UNITS Account Title

Account Code Debit

CO 200

RO 600

OU Posting in obligation column of 500 Registry of Allotments and ObligationsCapital Outlay Advances to Contractors Cash - National Treasury, MDS 168 102 230 401 168 401 102 410 30 30 150 120 30 120 105 15

Posting in obligation column of Registry of Allotments and ObligationsCapital Outlay Advances to Contractors Cash in Bank-Local Currency, Curr. Acct. Construction in Progress-Agency Assets Accounts Payable Advances to Contractors Accounts Payable Cash in Bank-Local Currency, Curr. Acct. Withholding Taxes Payable 168 110 230 401 168 401 110 410 90 90 400 310 90 310 270 40

Posting in obligation column of Registry of Allotments and ObligationsCapital Outlay Advances to Contractors Cash in Bank-Local Currency, Curr. Acct. Construction in Progress-Agency Assets Accounts Payable Advances to Contractors Accounts Payable Cash in Bank-Local Currency, Curr. Acct. Withholding Taxes Payable 168 110 230 401 168 421 102 410 75

22.2. Payment of advances to Contractors

22.3. Receipt of 1st Progress Billing

CO 150

RO 400

OU Construction in Progress-Agency Assets 300 Accounts Payable Advances to Contractors OU Accounts Payable 225 Cash - National Treasury, MDS 30 Withholding Taxes Payable 195 OU Construction in Progress-Agency Assets 200 Accounts Payable OU Accounts Payable 200 Cash - National Treasury, MDS 20 Withholding Taxes Payable 180

300

22.4. Payment of 1st Progress billing Total Less: Withholding Taxes

CO 120 15 105 CO 50 CO 50 5 45

RO 310 40 270 RO 200 RO 200 20 180

225

22.5. Receipt of final billing for the completion of the building 22.6. Payment of final billing Total Less: Withholding Tax Net Amount 22.7. Transfer to account to Building after completion & turn-over 23. Remittance of taxes thru TRA

230 401 401 102 410

50 50 50 45 5

Construction in Progress-Agency Assets Accounts Payable Accounts Payable Cash in Bank-Local Currency, Curr. Acct. Withholding Taxes Payable

230 401 401 110 410

200 200 200 180 20

Construction in Progress-Agency Assets Accounts Payable Accounts Payable Cash in Bank-Local Currency, Curr. Acct. Withholding Taxes Payable

230 401 401 110 410

200

200

CO 200 CO 28 CO 25

RO 600 RO 76 RO 30

OU Buildings 500 Construction in Progress-Agency Assets OU Withholding Taxes Payable 64 Subsidy Income from NG OU Office Supplies Expenses 14 Office Supplies Inventory

204 230 410 601 849 149

200 200 28 28 25 25

Buildings Construction in Progress-Agency Assets Withholding Taxes Payable Subsidy Income from NG Office Supplies Expenses Office Supplies Inventory

204 230 410 601 849 149

600 600 76 76 30 30

Buildings Construction in Progress-Agency Assets Withholding Taxes Payable Subsidy Income from NG Office Supplies Expenses Office Supplies Inventory

204 230 410 601 849 149

500

64

24. Issuance of office supplies per RSMI ADJUSTING ENTRIES 1. Recording of actual rent expense

14

CO 12

RO 3

OU Rent Expenses 2 Prepaid Rent

841 161

12 12

Rent Expenses Prepaid Rent

841 161

3 3

Rent Expenses Prepaid Rent

841 161

2. Depreciation Buildings Office Equipment Total CO 10 5 15 RO 30 12 42 OU 25 Depreciation - Buildings 12 Depreciation - Office Equipment 37 Accum. Depn. - Buildings Accum. Depn. - Office Equipment 904 922 304 322 10 5 Depreciation - Buildings Depreciation - Office Equipment 10 Accum. Depn. - Buildings 5 Accum. Depn. - Office Equipment 904 922 304 322 30 12 Depreciation - Buildings Depreciation - Office Equipment 30 Acc. Depn. - Buildings 12 Acc. Depn. - Office Equipment 904 922 304 322 25 12

133

Annex B
Illustrative Accounting Entries - Typical transactions of Central/Regional Offices and Operating Units (CO/RO/OU) receiving Notice of Cash Allocation direct from DBM and ROs/OUs receiving funding checks from CO/RO. CENTRAL OFFICE (CO) Transactions CLOSING ENTRIES 1. Adjustment of RAO for unobligated allotment CO PS 90 MOOE 30 120 Account Title
Account Code Debit Credit

REGIONAL OFFICE (RO) Account Title

Account Code Debit Credit

OPERATING UNITS Account Title

Account Code Debit

RO 25 17 42

OU Posting in allotment column of 22 Registry of Allotments and Obligations 8 Maintenance and Other Operating Exp. 30

Posting in allotment column of Registry of Allotments and Obligations Maintenance and Other Operating Exp.

Negative posting in allotment column of Registry of Allotments and Obligations Maintenance and Other Operating Exp.

2. Setting up of liability of OU for unrefunded cash equivalent to the unobligated allotment for MOOE 3. Setting up of liability of RO for unrefunded cash equivalent to the unobligated allotment for MOOE 4. Reversion of Unused NCA Due from Regional Offices/Staff Bureaus Subsidy to Regl.Offices/Staff Bureaus Subsidy Income from National Government Cash-National Treasury, MDS Subsidy Income from National Government Income and Expense Summary 136 538 601 102 601 532 17 17 131 131 1,903

Due from Operating Units Subsidy to Operating Units Subsidy from Central Office Due to Central Office Subsidy Income from National Government Cash-National Treasury, MDS

137 539 602 435 601 102 601 602 532 532 801 804 805 831 835 837 841 849 539 904 922 533 502 502 501

8 8 17 17 22 22 326 1,383

Subsidy from Regional Office/Staff Bureau Due to Regional Office/Staff Bureaus

603 446

Subsidy Income from National Government Cash-National Treasury, MDS

601 102 601 603 532 532 801 804 805 831 835 837 841 849 904 922 533 502 502 501

32

5. Subsidy Income from the National Government

Subsidy Income from National Government 1,903 Subsidy from CO Income and Expense Summary Income and Expense Summary Salaries and Wages-Regular Payroll PERA Additional Compensation Traveling Expense, Local Electricity Telephone/Telephone/Internet Rent Expenses Office Supplies Expenses Subsidy to Operating Units Depreciation - Buildings Depreciation - Office Equipment Income and Expense Summary Retained Operating Surplus Retained Operating Surplus Government Equity

Subsidy Income from National Government Subsidy from Regional Office/Staff Bureau 1,709 Income and Expense Summary Income and Expense Summary Salaries and Wages-Regular Payroll PERA Additional Compensation Traveling Expense, Local Electricity Telephone/Telephone/Internet Rent Expenses Office Supplies Expenses Depreciation - Buildings Depreciation - Office Equipment Income and Expense Summary Retained Operating Surplus Retained Operating Surplus Government Equity

193 592

6. Expenses

Income and Expense Summary Salaries and Wages-Regular Payroll PERA Additional Compensation Traveling Expense, Local Electricity Telephone/Telegraph and Internet Rent Expenses Office Supplies Expenses Subsidy to Regional Offices/Staff Bureaus Depreciation - Buildings Depreciation - Office Equipment Income and Expense Summary Retained Operating Surplus Retained Operating Surplus Government Equity

532 801 804 805 831 835 837 841 849 538 904 922 533 502 502 501

1,615 120 10 5 5 30 10 12 25 1,383 10 5 288 288 288 288

977 223 16 8 8 40 15 3 30 592 30 12 732 732 732 732

201

7. Income and Expense Summary

584

8. Retained Operating Surplus

584

134

Annex B

ITS
Credit

150

600

135

Annex B

ITS
Credit

13 5 2 1 109

109

109

13

13

13

136

Annex B

ITS
Credit

12

5 2

20

120

126 14

137

Annex B

ITS
Credit

75

225 75

195 30

200

180 20

500

64

14

25 12

138

Annex B

ITS
Credit

32

785

116 8 4 7 8 5 2 14 25 12

584

584

139

Annex C
Illustrative Accounting Entries - Typical Transactions of Agencies with Collections/Income to be recorded in the National Government (NG) Books Agency - National Government Books Transactions Account Debit Account Title
Code

Credit

Beginning Balances:

Cash - Collecting Officers Accounts Receivables Due to National Treasury Income from Govt. Services

106 121 433 6,000

1,000 5,000 6,000 6,000 6,000

A. Prior Year's Income 1. Deposit of prior year's collections

Due to National Treasury Income from Govt. Services Cash Collecting Officers Cash - Collecting Officers Accounts Receivables Due to National Treasury Cash Collecting Officers

433 1,000 106 106 121 433 106

1,000 1,000 1,500 1,500 1,500 1,500

2. Collection of prior years' receivables

3. Deposit of collections of prior years' receivables B. Current Year's Income 4. Billing of operating and service income

Accounts Receivables Due to National Treasury Income from Govt. Services Cash - Collecting Officers Accounts Receivables Cash - Collecting Officers Due to National Treasury Income Tax -Individuals Income Tax -Partnerships Income Taxes -Corporations Capital Gross Tax Value Added Tax Fines and Penalties

121 433 3,000 106 121 106 433 400 300 1,200 100 150 50

3,000 3,000

5. Collection of billed operating and service income 6. Collection of taxes Source Income Tax-Individuals Income Tax -Partnerships Income Tax -Corporations Property Transfer Tax Value Added Tax Fines and Penalties Total 7. Collection of rentals Amount 400 300 1,200 100 150 50 2,200

2,500 2,500 2,200 2,200

Cash - Collecting Officers Due to National Treasury Rent Income

106 433 300

300 300

Note: Subsidiary Ledger (SL) accounts shall be provided for "Due to National Treasury" account. The code of the income accounts under the Chart of Accounts shall be used as SL accounts and shall be indicated in the List of Collections which shall be submitted to the BTr.

135

Annex C
Illustrative Accounting Entries - Typical Transactions of Agencies with Collections/Income to be recorded in the National Government (NG) Books Agency - National Government Books Transactions Account Debit Account Title
Code

Credit

8. Deposit of income/collections to BTr thru AGDB a. Taxes

Due to National Treasury Income Tax -Individuals Income Tax -Partnerships Income Taxes -Corporations Capital Gross Tax Value Added Tax Fines and Penalties Cash - Collecting Officers Due to National Treasury Rent Income Cash - Collecting Officers

433 400 300 1,200 100 150 50 106 433 300 106

2,200

2,200 300 300

b. Rent Income

C. Accounting for Collection of Out-of-Town Checks with Bank Charges - Income from Government Services - P2,000 9. Collection upon issuance of OR Cash - Collecting Officers Due to National Treasury Income from Govt. Services Due to National Treasury Income from Govt. Services Cash - Collecting Officers 106 433 2,000 433 2,000 106 2,000 2,000 2,000 2,000

10. Remittance/Deposit to BTr thru AGDB

Note: BTr will record cash (at net amount), bank charges and income (at gross).

D. Accounting for Foreign Exchange Loss 11. Collection of Income from Govt. Services - $100 @ P50 Cash - Collecting Officers Due to National Treasury Income from Govt. Services Due to National Treasury Income from Govt. Services Cash - Collecting Officers 106 433 500 433 500 106 500 500 500 500

12. Remittance/Deposit to BTr thru AGDB

Note:There will be no bank charges and and foreign exchange loss to be ecorded in the agency's NG books.

Note: Subsidiary Ledger (SL) accounts shall be provided for "Due to National Treasury" account. The code of the income accounts under the Chart of Accounts shall be used as SL accounts and shall be indicated in the List of Collections which shall be submitted to the BTr.

136