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Sec. 01. Objectives of the Manual. – The New Government Accounting System Manual presents the basic policies and procedures; the new coding system and chart of accounts; the accounting books, reports/forms and financial statements, and illustrative accounting entries to be adopted by all local government units effective January 1, 2002. The objectives of the Manual are to prescribe the following: a) b) c) Uniform guidelines and procedures in accounting for government funds and property; New coding structure and new chart of accounts; and New accounting books, reports/forms, financial statements and accounting entries.
Loans, interests, bonds issued, and other contributions for specific purposes; Development projects funded from the Share in the Internal Revenue Collections; and Such other special accounts which may be created by law or ordinance.
Chart of Accounts and Account Codes. A new coding structure and a new chart of accounts with a three-digit account numbering system shall be adopted. Books of Accounts. The Books of Accounts are as follows: Journals • • • • Ledgers • • • • • • • • • • Cash Receipts Journal (CRJ) Cash Disbursements Journal (CDJ) Check Disbursements Journal (CKDJ) General Journal (GJ) General Ledger (GL) Subsidiary Ledgers, where applicable for: Cash Receivables Inventories Investments Property, Plant and Equipment Liabilities Income Expenses
Sec. 02. Coverage. – This Manual shall be used by all local government units (LGUs). Sec. 03. Legal Basis. – This Manual is prescribed by the Commission on Audit pursuant to Article IX-D, Section 2 par. (2) of the 1987 Constitution of the Republic of the Philippines which provides that: "The Commission on Audit shall have exclusive authority, subject to the limitations in this Article, to define the scope of its audit and examination, establish the techniques and methods required therefor, and promulgate accounting and auditing rules and regulations, including those for the prevention and disallowance of irregular, unnecessary, excessive, extravagant, or unconscionable expenditures, or uses of government funds and properties". (underscoring supplied) Chapter 2. BASIC FEATURES AND POLICIES
All the above records shall be maintained by the accounting unit of the LGUs. However, treasurers and disbursing officers shall also maintain their respective cash records such as: • • • Cashbook – Cash in Treasury Cashbook – Cash in Bank Cashbook – Cash Advances
Sec. 04. Basic Features and Policies. – The new government accounting system has the following basic features and policies, to wit: 1. Accrual Accounting. A modified accrual basis of accounting is used. Under this method, all expenses shall be recognized when incurred. Income shall be on accrual basis (e.g. Share from Internal Revenue Collections) except for transactions where accrual basis is impractical (e.g. Market Fees) or when other methods may be required by law. One Fund Concept. This system adopts the one fund concept. Separate fund accounting shall be done only when specifically required by law or by a donor agency or when otherwise necessitated by circumstances subject to prior approval of the Commission. As required under Sections 308, 309 and 310 of the Local Government Code, separate books shall be maintained for the General Fund, Special Education Fund and Trust Fund. Special Accounts in the General Fund. Special accounts in the General Fund complete with subsidiary ledgers, shall be maintained for the following: • Public utilities and other economic enterprises; 9.
The Treasurers/Collectors shall prepare the Report of Collections and Deposits (RCD) daily and the Report of Accountability for Accountable Forms (RAAF) monthly.
10. Financial Statements. The following statements shall be prepared: • • • Balance Sheet Statement of Income and Expenses Statement of Cash Flows
11. Notes to Financial Statements shall accompany the above statements. 12. Trial Balance. The two money-column trial balance shall be used. 13. Appropriations, Allotments and Obligations. Journal entry shall no longer be prepared to record the appropriations, receipt of allotments and incurrence of obligations. In lieu of this, separate registries shall be maintained by the Accounting Unit to control the appropriations, allotments and obligations for each of the four classes of expenditures, namely:
• • • •
Registry of Appropriations, Allotments and Obligations – Capital Outlay (RAAOCO) Registry of Appropriations, Allotments and Obligations – Maintenance and Other Operating Expenses (RAAOMO) Registry of Appropriations, Allotments and Obligations – Personal Services (RAAOPS) Registry of Appropriations, Allotments and Obligations – Financial Expenses (RAAOFE).
22. A Summary of all Public Infrastructures (based on the different registries) shall be prepared annually and included in the Notes to Financial Statements. 23. Depreciation. The straight-line method of depreciation shall be used. A residual value equivalent to ten percent (10%) of the cost shall be set-up and depreciation shall start on the second month after purchase/completion of the property, plant and equipment. Public infrastructures shall not be charged any depreciation. 24. Reclassification of Obsolete and Unserviceable Assets, as well as Assets No Longer Used by the Agency to “Other Assets” Account. Assets declared by proper authorities as obsolete and unserviceable, including assets of the agency no longer used, shall be reclassified to “Other Assets” account from the corresponding inventory and property, plant and equipment accounts. 25. Allowance for Doubtful Accounts. An Allowance for Doubtful Accounts shall be set up for estimated uncollectible receivables. This will allow for a fair valuation of receivables. Allowance for Doubtful Accounts shall be provided only for trade receivables. 26. Elimination of Contingent Accounts. Contingent accounts shall no longer be used. All financial transactions shall be recorded using the appropriate accounts. Cash shortages and disallowed payments shall be recorded under receivable accounts “Due From Officers and Employees” and “Receivables– Disallowances/Charges”, as the case may be. 27. Recognition of Liability. Liability shall be recognized at the time goods and services are accepted or rendered and supplier/creditor bills are received. 28. Interest Accrual. Whenever applicable and appropriate, interest income and/or expense shall be accrued and recognized in the books of accounts. 29. Accounting for Borrowings and Loans. All borrowings and loans incurred shall be recorded direct to the appropriate liability accounts. 30. Elimination of corollary and negative entries. The use of corollary and negative entries shall be stopped. Acquisition/Disposition of assets shall be debited/credited direct to the appropriate asset accounts. If an error is committed, a correcting entry shall be prepared to adjust the original entry.
14. Financial Expenses. Financial expenses such as bank charges, interest expenses, commitment fees and other related expenses shall be separately classified from Maintenance and Other Operating Expenses (MOOE). 15. Perpetual Inventory of Supplies and Materials. Supplies and materials purchased for inventory purpose shall be recorded using the perpetual inventory system. Regular purchases shall be coursed thru the inventory account and issuances thereof shall be recorded as they take place except those purchased out of petty cash fund which shall be for immediate use and not for stock. Such case shall be charged immediately to the appropriate expense accounts. 16. Valuation of Inventory. Cost of ending inventory of supplies and materials shall be computed using the moving average method. 17. Maintenance of Supplies and Property, Plant and Equipment Ledger Cards. The Accounting Unit shall maintain Supplies Ledger Cards by stock number and Property, Plant and Equipment Ledger Cards by category of assets. 18. Construction of Assets. For assets under construction, the Construction Period Theory shall be applied for costing purposes. Bonus paid to the contractor for completing the work ahead of time shall be added to the total cost of the project. Liquidated damages charged and paid for by the contractor shall be deducted from the total cost of the asset. Any related expenses incurred during the construction of the project, such as, license fees, permit fees, clearance fees, etc. shall be capitalized. 19. Public Infrastructures. Public infrastructures are assets for use of the general public, such as roads, bridges, waterways, railways, plazas, monuments, etc. A Registry of Public Infrastructures (RPI) shall be maintained according to classification to record all infrastructures for use of the general public. The following are the Registries to be maintained, classified by category of property, plant and equipment: • • • Registry of Public Infrastructure – Bridges (RPIB) Registry of Public Infrastructure – Roads (RPIR) Registry of Public Infrastructure – Plazas, Monuments, etc. (RPIP)
Chapter 3. ACCOUNTING SYSTEM A. GENERAL ACCOUNTING PLAN Sec. 05. General Accounting Plan. – The General Accounting Plan shows the overall accounting cycle in the Local Government Unit. Transactions shall emanate from the different offices/departments of the local government units (LGUs). These offices/departments will provide/produce the source documents and other accounting forms leading to the perfection of the transaction, whether it be budgetary, collections or disbursements. The source documents and accounting forms shall be the basis for the preparation of reports by the Office of the Treasurer. The Office of the Accountant shall record the transactions to the registries or to the corresponding books of original entry. Posting to the books of final entry and
20. During construction these infrastructures shall be recorded in the books under the account “Construction in Progress”. Upon completion, the completed asset shall be transferred to the account “Public Infrastructure”. At the end of the year, completed assets under “Public Infrastructure” shall be transferred to the respective registry. 21. Completed public infrastructures funded out of a loan shall, however, be retained in the books of accounts until the loan is fully paid.
preparation of the financial reports shall also be undertaken by the Office of the Accountant. The General Accounting Plan (Table 1) is presented as to the following type of transactions: 1) 2) 3) 4) B. Appropriations, Allotments and Obligations Collections and Deposits Disbursements – a) By cash b) By check Miscellaneous and Other transactions
Sec. 06. Budgetary Accounts. – Budgetary accounts are composed of appropriations, allotments and obligations. Sec. 07. Accounting for Appropriations. – Appropriation refers to an authorization made by ordinance, directing the payment of goods and services from local government funds under specified conditions or for specific purposes.
GENERAL ACCOUNTING PLAN (MS Excel file)
– The Chief Accountant shall record paid disbursement vouchers in the Status of Obligation portion (Payments) of the ALOBS. PERSON / UNIT RESPONSIBLE Office of the Accountant Office of the Budget Officer c) Enters the allotments in the RAAOs. to wit: 1. Accounting Procedures for Budgetary Accounts. e) Certifies the ALOBS as to the existence of appropriations based on the appropriation ordinance. Signs the appropriate box for requesting office. together with the supporting documents.Personal Services and Obligations . On the first business day of the fiscal year. – A common terminology and classification shall be used consistently throughout the budget. are recorded in the registries maintained by the accountant where they may be compared with the actual developments of the period. the accounts and the financial reports.Maintenance and and Obligations . The Accountant. Budgetary reserves which are stand by appropriations ready for release in case of calamities. – Allotment is the authorization issued by the Local Chief Executive (LCE) to a department/office of the LGU. the entire annual budget of the local government unit shall be recorded in the Registry of Appropriations. shall enter the allotment in the RAAOs. the necessary adjustments shall be made in the registry. Budget Officer Chief Accountant Office of the Accountant Budget Officer and Chief Accountant Sec. The appropriations. – Obligations refer to the amounts committed to be paid by the LGU for any lawful act made by an accountable officer for and in behalf of the local government unit concerned. Assigns ALOBS number and forwards the same to the Office of the Accountant. Allotments (RAAOCO) Registry of Appropriations. for specified amounts. Obligations shall be taken up in the registries as they are incurred. 10. Adjust accordingly the amount of recorded obligations in the RAAOs. upon receipt of the Advice of Allotment. within the appropriation ordinance. Sec. 12. Any balance appearing in the ALOBS after full payment of obligations shall form part of unobligated allotment. – Summarized hereunder is the process in accounting for budgetary accounts: PROCESS a) Records in the appropriate RAAOs the approved appropriation per Appropriation Ordinance. g) Records paid disbursement vouchers in the Status of Obligation portion (Payments) of the ALOBS.Financial Expenses Sec. At the end of each month. Allotments Other Operating Expenses (RAAOMO) Registry of Appropriations.The local sanggunian approves the annual budget thru the issuance of appropriation ordinance. Office of the Accountant Heads of departments/offices d) Prepares ALOBS based on disbursement vouchers/purchase requests and/or supporting documents. Adjustment of Obligations. For each obligation. The Budget Officer shall certify to the existence of appropriation that has been legally made for the purpose by signing the appropriate box in the ALOBS and assign the ALOBS number thereto. the Chief Accountant and the Budget Officer shall reconcile their records on allotments available for obligation. Registry of Appropriations. 2. Accounting for Obligations. the requesting department/office shall prepare the Allotment and Obligation Slip (ALOBS) signed by the department or office head as requesting official and forward this. 11. Allotments and Obligations (RAAO). in the amounts approved by the legislative body and confirmed by the reviewing authorities. reconcile records on allotments available for obligation. to the Budget Officer. h) At the end of each month. f) Certifies the ALOBS as to the obligations of allotments. 3. Separate registries shall be maintained for the four classes of expenditures per responsibility center. In case the LGU is operating on a re-enacted budget. The Accountant shall review the ALOBS and certify as to obligation of the allotment by signing the appropriate box in the ALOBS. Records the obligation in the appropriate column of the RAAOs and in the Status of Obligation portion (Obligation) of the ALOBS. Once current budget is approved. Any balance appearing in the ALOBS after full payment of obligations shall form part of unobligated allotment. Sec. 09. b) Forwards the advice of allotments to the Office of the Accountant and returns the work plan to the concerned departments/ offices.Capital Outlays and Obligations . Forwards the same to the Office of the Budget Officer. 4 . Allotments are released quarterly based on the Work and Financial Plan and Request for Release of Allotment. 08. which allows it to incur obligations. 4. The Chief Accountant shall adjust accordingly the amount of recorded obligations in the RAAO using the same ALOBS number as reference. The Accountant shall record the amount of obligation in the RAAOs. Allotments (RAAOPS) Registry of Appropriations. Sec. Terminology and Classification. said re-enacted budget shall likewise be recorded in the registry. He shall also fill up the Status of Obligation. as well as supplemental budget are similarly recorded in the RAAO. Accounting for Allotments. Allotments (RAAOFE) and Obligations .
located in or nearest to their respective areas of jurisdiction. underwriting fees. for each fund in their custody or administration. janitorial. – The main sources of income of LGUs are as follows: a. General Income Accounts.g. – Local treasurer shall maintain depository accounts in the name of their respective local government units with banks.) Auditing Services Other Services (e. etc. cash gifts. construction equipment. hazard pay. PERA. telephone. Land Improvements and Leasehold Improvements outlay Buildings and Other Structures outlay (e. Sec.g. technical and scientific equipment. h.) Government Shares on Employees’ Contributions Subsidies (e. Subsidy to LGUs.) Furniture and Fixtures outlay Work Animals outlay Breeding stocks Machineries and Equipment outlay (e. etc. etc.) Repairs and Maintenance Printing and Binding Travel Consultancy Light. vans. i.g. security.g. dump trucks.) Allowances (e. j. Reservoirs. guarantee fees) Loan Amortization INCOME/COLLECTIONS AND DEPOSITS Sec. Earnings of its depository accounts shall accrue exclusively thereto. bad debts. f. spare parts. g. overtime and night pay. etc.) Crops Supplies (e. fees and charges Share from Internal Revenue Collections Share from National Wealth The sources of income are further classified into general income accounts and specific income accounts. plaza.For this purpose. Sec.g.) Artesian Wells. – Officers of the local government authorized to receive and collect monies arising from taxes. Tax revenues. b. – The following major classification comprise the specific income accounts for LGUs: 1. monuments. etc. Trains and Motor Vehicles outlay (e. parks.g. motorcycles.g. c. Sec. l.) Benefits (e. – Local accountants and treasurers shall maintain separate books and depository accounts. 18. RAAOPS – • • • • c. industrial machineries. 13. 16. Sec. Bank Charges Interest Expenses Commitment Charges Other Financial Charges (e. hauling. bonus. etc. cars. k. Archeological Specimen and Other Exhibits Salaries and Wages (e. dental and laboratories. Plant and Equipment outlay Reforestation Projects Arts. – The following shall comprise the General Income Accounts applicable to LGUs: a. except depreciation. discount on Real Property Tax and Special Education Tax. hospital and health centers. 14. obsolescence.g. goats. • • • • • C. gasoline and oil. respectively. Specific Income Accounts. office. Water and Gas Communication (e. RAAOMO – • • • • • • • • • • • • • Investments outlay (e. Remittance of Government Monies to the Local Treasury. medical. b. etc. regular pay. etc.g. part-time pay.g. Income from Grants and Donations Sec.g. bonds) Land. loss on sale of assets. Sources of Income of LGUs. swine. etc. loss of assets. Depository Accounts. Property Taxes • d. preferably government-owned. postage. revenue.g. hogs.) Livestock (e.g.) Public Infrastructures outlay (e. bridges etc. 15. e. chicken.) Extraordinary and Miscellaneous Expenses All other expenditures in the Chart of Accounts for MOOE. etc. Subsidy to Other Funds. markets and slaughterhouses. RATA. stocks. holiday pay. telegraph.g. c. RAAOCO – • • • • • • • • • • • • • • • • b. Pumping Stations and Conduits outlay Books outlay Ordnance outlay IT Equipment and Software outlay Other Property. Subsidy from Other LGUs Subsidy from Other Funds Subsidy from Special Accounts Sales Revenue Dividend Income Interest Income Gain on Sale of Securities Gain on Sale of Assets Sale of Confiscated Goods and Properties Foreign Exchange (FOREX) Gains Miscellaneous Operating and Service Income Fines and Penalties – Government Services and Business Operations m. 17. d. school buildings. Separation of Books and Depository Accounts. RAAOFE – 5 . or receipts of any kind shall remit the full amount received and collected to the treasury of such local government unit which shall be credited to the particular account or accounts to which the monies in question properly belong. pension. the following specific expenditures shall be recorded in the appropriate RAAOs: a.) Aircrafts. internet. etc. productivity.
Borrowings. b. the following: a. for purposes of reconciliation with the weekly summary of JEVs. Upon receipt of the advice from the bank or lending agency informing the release of the proceeds. buildings. Modified Accrual – Modified accrual method of accounting shall be used for real property taxes. Receipt of Performance Bonds. equipment. 6 . However. the Chief Accountant shall draw a Journal Entry Voucher (JEV) to record the debit to Real Property Tax Receivable/Special Education Tax Receivable and crediting to Deferred Real Property Tax Income/Deferred Special Education Tax Income. 19.2. b. the account Deferred Real Property Tax Income/Deferred Special Education Tax Income shall be debited while the Real Property Tax Income due to the municipality is recognized/credited. c. Real Property Tax Receivable and Special Education Tax Receivable shall be established. Accrual Method – Accrual method of accounting shall be used to record Share from Internal Revenue Collections in the books of accounts. 20. – Cash advances for official travel shall be taken up as a receivable from the concerned official or employee. A copy of the abstract shall be furnished the Provincial Accountant. 24. Sale of Property. At the beginning of the year. – Discounts for advance and prompt payment of Real Property Tax and the additional one percent (1%) tax accruing to the Special Education Fun shall be recognized in the year the taxes are due. Sec. 4. Sec. Sec. 26. generally with interest from the bank. The share of the Province and Barangay shall also be credited to Due to LGUs. Fines and Penalties arising from real property taxes shall be distributed to concerned LGUs in accordance with the sharing prescribed under the Local Government Code for Real Property Tax and the additional one percent (1%) tax for the Special Education Fund. charges and other revenues. Said discounts shall be apportioned to the concerned LGUs in accordance with the sharing prescribed for real property tax and additional one percent (1%) tax under the Local Government Code. Plant and Equipment Refund of Cash Advances Receipt of Performance/Bidders’ Bonds a. – Payment of delinquencies for real property taxes/special education taxes prior to CY 2002 shall be recognized as a direct credit to Real Property Tax Income/Special Education Tax Income account. – Real Property Tax Receivables/Special Education Tax Receivables shall be established at the beginning of the year based on Real Property Tax Account Register/Taxpayer’s index card. Discount on Real Property Tax/Special Education Tax. and private sector. certified check or surety. 22. Share from Internal Revenue Collections shall be taken up as Due from NGAs and credited to Share from Internal Revenue Collections. Borrowings Sale of Property. Sec. Basis of Recording Real Property Tax/Special Education Tax. either from tax revenue or other specific income. Upon collection of Real Property Taxes from taxpayers. another local government unit. Performance bond in cash or certified check shall be acknowledged by the issuance of official receipt and recorded in the books by the Accountant drawing a JEV for the purpose. Upon receipt of the Notice of Funding Check Issued from Department of Budget and Management (DBM). the Accountant shall draw a Journal of Entry Voucher taking up the transaction. shall be recognized as income of the year it was collected. – Performance bond posted by contractor or supplier to guaranty full and faithful performance of the their work may be in the form of cash. shall be the basis of the Provincial Accountant to draw the JEV taking up the RPT Income. All borrowings incurred shall be recorded direct to the appropriate liability accounts. the Municipal Accountant shall likewise prepare the Abstract of Real Property Tax to facilitate the distribution of real property tax collection. Based on the list. Real Property Tax Income/Special Education Tax Income shall be recognized upon receipt of collection. Refund of Cash Advances. Any refund made shall be credited to this account. – Sale of property. Every end of the week. Plant and Equipment account shall be credited upon transfer of ownership. plant and equipment refers to the proceeds from the sale of land. Sec. – Borrowings are proceeds of repayable obligations. 3. c. – The following accounting methods shall be adopted in recording income: At the end of the month. thereafter the Municipal Accountant shall furnish the Provincial Accountant with a summary of the JEVs showing the breakdown of the amounts Due to LGUs. Cash in Bank shall be debited upon receipt of Bank Credit Advice as to receipt of the Share from Internal Revenue Collections regardless of whether or not the Notice of Funding Check Issued has been received from DBM. The appropriate Property. fees. The account Due from LGU shall be debited and Real Property Tax Income credited. Cash Basis – Cash basis of accounting shall be used for all other taxes. Sec. Sec. but not limited to. Methods of Accounting for Income. In case of surety bond. This is in view of the need to record in the books not mere income estimates from real property taxes but actual receivables from said taxes. Plant and Equipment. which shall be supported with copies of the JEVs. 28. Fines and Penalties. Plant and Equipment. At the beginning of the year. Other Receipts. national agency. However. Taxes on Goods and Services Other Taxes Other Specific Income Sec. an acknowledgment receipt shall be issued by the authorized official. Sec. The summary. – Other receipts of the local government units shall be comprised of. the same shall be credited to Deferred Real Property Taxes Income/Deferred Special Education Tax Income. Delinquencies for Real Property Tax/Special Education Tax Prior to CY 2002. 21. d. furniture and other similar property which are recorded in the books as Property. Refunds made shall be credited to the receivable account previously set up. 23. Sec. 27. Cash advances for salaries and wages shall be recorded as debits to the account Cash – Disbursing Officer. to avoid appropriating uncollected revenues which might result to huge cash overdraft. the Treasurer shall furnish the Chief Accountant of a duly certified list showing the name of taxpayers and the amount due and collectible for the year. – Fines and Penalties. 25.
Sec. shall be submitted to the treasurer/cashier to whom the cash collected shall be turned over. may deposit the collections in the authorized depository bank near the field office of the LGU. He shall indicate his verification by affixing his signature at the back of the triplicate copy of the last official receipt issued. Consolidates collections and remits to the Treasurer/Cashier. At the close of each business day. c. or in a depository bank account maintained in the name of the barangay. In the case of collectors assigned to the field. Remit to the Liquidating Officer (if one is designated) or Treasurer.000. issues and the ending balances on hand. Reporting for Collections and Deposits.00. make a physical count of the accountable forms remaining in the custody of the collector/teller and check the same against the new balances on hand column. the Cashier or designated liquidating officer. He shall record all deposits made in the cashbook and prepare the RCD. The barangay treasurer shall deposit all collections intact with the city/municipal treasurer. or cash tickets and the like. 29. b. Sec. 30. the fifth copy to be retained by the collector/teller. Sec. Records deposit in the Cashbook – Cash in Bank. Prepare Journal of Entry Voucher and record in the Cash Receipt Journal. Sec. Pro–forma Accounting Entries. Sec. PERSON / UNIT RESPONSIBLE Collector/Teller Liquidating Officer Treasurer Treasurer Treasurer Accountant Sec. – Collectors/tellers shall issue a receipt to acknowledge collections made. He shall count the money turned over to him and sign the certification and receipt portion of all copies of RCD. Records in the Cashbook – Cash in Treasury. 31. Prepare Report of Collections and Deposits. Sec. When travel distance of the field office to the local treasury may expose government funds to the risk of loss while in transit. The liquidating officer shall perform the procedures for the receipt and verification of collections turned over to him.Sec. – The Treasurer/Cashier shall verify the Report of Collections and Deposits. upon authorization by the Treasurer. The receipt maybe in the form of prenumbered Official Receipts. receipts. Verification of Collections and Accountable Forms. The fourth copy of the RCD of the liquidating officer and RCDs of collectors/tellers shall be retained by the liquidating officer. Prepares RCD. – The following is a summary of the receipt and collection process in the LGU: PROCESS Receive payment from taxpayers/ creditors and issue Official Receipt (OR). – The Treasurer may designate liquidating officers from among the collectors/tellers whenever necessary. consolidates the same and prepares RCD. collection and deposit: 7 . Designation of Liquidating Officers. 33. check the statement of accountable forms as to initial balances on hand. 35. 32. – The Accountant shall determine the account classification of the collections covered by the RCD and the supporting papers submitted by the Treasurer/Cashier and shall accomplish the Journal Entry Voucher. cities and municipalities shall follow the same procedures in turning over their collections to the treasurer/cashier concerned. The original and two copies. The procedures in reporting collections and deposits prescribed in this Chapter shall be observed. Receipts and Collection Process. these collectors/tellers shall accomplish the Report of Collections and Deposits (RCD) in four copies. Receive remitted collections. Check remittances and verifies accountable forms of collectors/tellers. The Treasurer/Cashier shall acknowledge receipt of the cash and all accompanying documents by signing all copies of the RCD of liquidating officer on the certification and receipt portion of the form. The liquidating officer shall turn over intact the cash collections to the Treasurer/Cashier together with the originals and two copies of the RCDs of collectors/tellers and the duplicates of the official receipts issued. turnover of collections shall be made at least once a week or as soon as the collections reach P5. 34. Collector s/tellers shall turn over their collections to their designated liquidating officer. within five (5) days from receipt thereof. – The following are pro-forma accounting entries for income. – The Treasurer/Cashier shall deposit intact all his collections as well as all collections turned over to him by the collectors/tellers with the authorized depository bank daily or not later than the next banking day. The accountant shall also maintain the Abstract of Real Property Tax Collections to facilitate the distribution and remittance of the shares of the different government units concerned in the real property tax collections. together with the duplicates of the official receipts issued. Forward RCD to Accounting Unit with copies of ORs and validated deposit slips. Barangay Treasurers deputized to collect taxes imposed by provinces. – Collections by field collectors shall be remitted to the Cashier or designated liquidating officer of the field office of the LGU. Deposit collections in the appropriate bank account per authorized depository bank. 36. He shall also accomplish the RCD in four copies to summarize the collections turned over to him by the collectors/tellers as well as his own collections. Accounting for Collections and Deposits. a. Deposit of Field Collections. The RCD shall however be prepared in five copies. The fourth copy of the RCD shall be retained by the collector/teller concerned. four copies to be submitted to the liquidating officer. where travel time from their places of assignment to the Treasurer’s Office is more than one day. Deposit of Collections.
Cod e Debit Credi t Particulars Account Title Receipts from Markets Garbage Fees INCOME 1.000 b. Receipt of grants and donations in cash (Donations in kind shall be booked-up using the appropriate asset account) Cash in Treasury Income from Grants and Donations 101 651 100 100 a.25% d. Receipt of Income Cash in Treasury 101 100 8 .000 Cash in Bank –LCCA Loans Payable – Current. Upon receipt of the Summary of the JEV from the Municipal Accountant b.000 10 12 1. Distribution of Collection RPT Sharing: Municipal . Deposit of Collections e. Receipt of Notice of Funding Check Issued from the DBM and credit memo from the bank for Share from Internal Revenue Collections b. Grants and Donations Cash in Bank – LCCA Cash in Treasury Due to LGUs Cash in Bank – LCCA Due to LGUs Cash in Bank – LCCA 110 101 431 110 431 110 100 35 25 100 35 25 b.Particulars Account Title Acct .40% Province .35% Barangay .000 1. Upon receipt of share 800 800 Cash in Bank – LCCA Due from LGUs 110 131 35 35 2. BORROWINGS a. Setting-up of RPT Receivable RPT = P1. Deposit of Collections Acct . Real Property Tax – Basic A.000 1. Books of the Municipality a.000 Cash in Treasury Real Property Tax Receivable Deferred Real Property Tax Income Real Property Tax Due to LGUs 101 124 448 711 431 100 100 100 40 60 Due from NGAs Share from Internal Revenue Collections 130 746 1. Books of the Province Due from LGUs Real Property Tax 131 711 35 35 Real Property Tax Receivable Deferred Real Property Tax Income 124 448 1. Depn. Operating and Service Income a. Remittance of Share (Province) f. Remittance of Share (Barangay) B.000 Motor Vehicles Invested Equity (At the end of Year) Invested Equity Government Equity 218 537 537 501 800 800 a.25% b. Cod e 783 772 110 101 Debit Credi t 90 10 Cash in Bank – LCCA Cash in Treasury 100 100 3. Receipt of Notice of Funding Check Issued from the DBM for Share from Internal Revenue Collections Cash in Bank –LCCA Share from Internal Revenue Collections 110 746 1. Receipt of grants and donations in kind Motor Vehicle: Original Cost P1.35% Barangay .000 4. Receipt of Payment c.40% Province .000 1. Share from Internal Revenue Collections a.000 Less: Acc.000 RPT Sharing: Municipal . 200 Book Value P 800 5. Domestic Bank Charges Interest Expenses 110 403 951 952 1. Receipt of borrowed funds from bank Principal P1.
LCCA 101 403 952 110 1. DISBURSEMENTS Sec. Payment of loan amortization 7.000 6 1. To take up the cash advance b. Cod e 110 606 Debit Credi t Receipt of subsidy from General Fund Proper Cash in Treasury Loans Payable – Current. Cash Advance by an Officer for Local Travel a. 37. RECEIPT OF CASH BONDS a. Special Accounts (subsidy from General Fund proper to Operation of Public Market) BOOKS OF GENERAL FUND PROPER Transfer of subsidy to Special Account Subsidy to Special Accounts Cash in Bank – LCCA 898 110 500 c. To take up refund of cash advance Due from Officers & Employees Cash in Bank – LCCA Cash in Treasury Due from Officers & Employees 128 110 101 128 10 10 10 10 403 110 200 200 6. REFUND OF CASH ADVANCES a. To take up refund of cash advance 10 10 SPECIAL EDUCATION FUND BOOKS Receipt of subsidy funds from Other funds Cash in Treasury Subsidy from Other Funds 101 605 500 500 8. – Disbursements refer to the settlement of government payables/obligations by cash or by check.Particulars Bank Charges Interest Expense- Account Title Cash in Bank –LCCA 10 12 Acct . Cod e 110 Debit Credi t 22 Particulars Account Title Acct . domestic Interest Expenses Cash in Bank – LCCA Loans Payable – Current. To take up the cash advance Cash – Disbursing Officers Cash in Bank – LCCA Cash in Treasury Cash – Disbursing Officers 107 110 101 107 10 10 b.000 Interest Expense 6 c. Disbursements.000 6 Cash in Bank – LCCA Subsidy from Special Accounts 500 500 b. Domestic Cash in Bank . SUBSIDIES a. Cash Advance by a Disbursing Officer for Salaries and Wages a. To take up deposit of performance bond Cash in Treasury Performance/ Bidders/ Bail Bonds Payable Cash in Bank – LCCA Cash in Treasury Performance/ Bidders/ Bail Bonds Payable Cash in Bank – LCCA 101 414 110 101 414 110 50 50 50 50 b. To take up receipt of performance bond in cash b. Subsidy from Other Funds (General Fund to Special Education Fund) GENERAL FUND BOOKS Transfer of subsidy to Special Education Fund (Aid to SEF to finance its projects) Subsidy to Other Funds Cash in Bank – LCCA 897 110 500 500 b. To take up refund of performance bond 50 50 500 D. Receipt of borrowed funds from other agency Principal P1. BOOKS OF SPECIAL ACCOUNT (OPERATION OF PUBLIC MARKET) 9 .
sign Box B and forward to Treasurer. 3. – The steps in disbursements through issuance of check is shown below: PROCESS a. Prepare Accountant’s Advice of Local Check Disbursements and submit to Local Chief Executive or authorized approving officer Treasurer PERSON / UNIT RESPONSIBLE Concerned Office Disbursements shall be covered by Disbursement Vouchers (DV) or payrolls and paid either by check or in cash. 39. Gather supporting documents. NPO. propriety and legality of the claim (Box A of DV) by the head of the department or office who has administrative control of the fund concerned. Check completeness of documents. Disbursement vouchers for expenditures appropriated for the operation of the Sanggunian shall be approved by the provincial Vice Governor. – Approval of disbursements by the Local Chief Executive (LCE) himself shall be required whenever local funds are disbursed. 4. and approved ALOBS. (Box C of DV) Supervisor/Head of Department Accounting Unit 2. Treasurer Sec. these duties shall devolve upon their immediate assistants. LBP. Personal Services Maintenance and Other Operating Expenses Capital Outlay Financial Expenses Sec. 43. h. – Disbursements from the general fund shall require the following certifications on the DV: 1. the city Vice Mayor or the municipal Vice Mayor. BIR. expenses for light. In the case of municipalities where no Administrator has been appointed. PS of the DBM and others. b. Sign Box A of DV and submit to the Accounting Unit. PHILHEALTH. Accountant retains copy of DV and forwards to Treasurer. the officer next-in-rank shall automatically perform his function and shall be fully responsible therefor. e. prepare DV and forward to Head of Department. or the municipal Vice Mayor. return to Accountant for recording in the books as Accounts Payable (AP). JEV shall be prepared by Accounting Unit and JEV number reflected in the DV. It shall be drawn by the local Treasurer and countersigned by the local Administrator. Approve transaction (Box D) and forward DV to Cashier. 40. Prepare. Reporting of Checks Issued. 38. 44. Sec. In case. assign number to DV. f. Check Disbursement Process. 41.Typical transactions for which disbursements are made are as follows: 1. water. c. checks shall be countersigned by the municipal Mayor. of expenditures appropriated for the operation of the Sanggunian. For purposes of releasing checks. Sec. For AP. where the authority to approve may be delegated. Release of Checks. however. In case of temporary absence or incapacity of the aforesaid officials. The Allotment and Obligation Slip (ALOBS) shall be an integral part of the DV. – All checks issued including cancelled checks shall be recorded chronologically in the Cashbook – Cash in Bank. Certification and approval of vouchers and payrolls as to validity. Payments by Check. Countersign check and forward to Accountant for preparation of the Accountant’s Advice of Local Check Disbursements. Recording Check Disbursements in the Cashbooks. Verify claim. In case of temporary absence or incapacity of the department head or chief of office. Certification on Disbursements. except for regularly recurring administrative expenses such as: payrolls for regular or permanent employees. remittances to government creditor agencies such as GSIS. sign check and forward check with DV to countersigning officer. as the case may be. g. 2. Note: If funds are not available. the city Vice Mayor. It shall be submitted to the Accountant for preparation of Journal of Entry Voucher based on individual checks issued and recording in the Check Disbursements Journal. 42. the Treasurer shall maintain a Check Register where all checks issued shall be recorded chronologically and where the claimants shall be required to acknowledge receipt thereof. Approval of Disbursements. (Box B of DV) Certification that funds are available for the purpose by the Local Treasurer. certify cash availability (Box C) and forward to approving officer. – Checks shall be drawn only on duly approved disbursement vouchers. d. – The Treasurer shall release the check only to the payee or his duly authorized representative. – The checks released to claimants shall be reported in the Report of Checks Issued (RCI) which shall be prepared daily by the Treasurer for each fund. Sec. checks drawn shall be countersigned by the provincial Vice Governor. DBP. Administrator/ ViceMayor for the Local Sanggunian Disbursements Accountant 10 . as the case may be. 3. Necessary documents supporting the disbursement vouchers and payrolls as certified to and reviewed by the Accountant. JEV for AP is recorded in General Journal. Sec. Sec. telephone and telegraph services.
Current Account. Record check in the Check Register and release check to claimant. supporting documents and JEV to the Office of the Auditor. Unused cash shall be returned to the Treasurer who shall issue an Official Receipt to acknowledge the amount returned. the PCVs and its supporting documents. Prepare DV for cash advance corresponding to the net amount of payroll/s. Disbursements from the fund shall be through the Petty Cash Voucher (PCV) which shall be signed by the payee to acknowledge the amount received. Another ALOBS shall be prepared taking up the liquidation and recorded in the RAAO based on the actual expenses incurred. Cash payments shall be made only on duly approved payrolls/disbursement vouchers. check and supporting documents to Cashier/Treasurer. a Disbursement Voucher shall be prepared to liquidate the previous cash advance and serve as a claim for reimbursement of the deficiency in amount. 48. Prepare the JEV based on individual checks/voucher. Prepare Report of Checks Issued. Post monthly to the General Ledger/Subsidiary Ledgers. the Liquidation Report form shall be prepared by the officers/employees concerned and submitted to the accounting unit as basis for preparation of the JEV to record liquidation. Cash advances. PERSON / UNIT RESPONSIBLE Treasurer Sec. Cash Advances for Travel. – Cash advances for travel shall be recorded as debit to the account Due from Officers and Employees and a credit to Cash in Bank – Local Currency. – Disbursements by cash shall be made from a cash advance drawn and maintained in accordance with COA rules and regulations. are properly acknowledged by the Accountant. b) Office of the Treasurer c) Accounting Unit d) Local Chief Executive 11 . the Accountable/Disbursing Officer shall prepare the Report of Disbursements and submit the original and duplicate copy with vouchers/payrolls/petty cash vouchers to the Accountant. A new Cash Advance for Petty Cash Fund shall be set up in the ensuing year. sign “Prepared By” portion (approved by Chief Accountant). PERSON / UNIT RESPONSIBLE Concerned offices Accountant Sec. DV. – Petty cash fund shall be maintained under the imprest system. j. recorded in the RAAO and obligated as Other Expenses. sign Box B and forward to Approving Officer. For liquidation of travel where the amount of cash advance is equal to or more than the travel expenses incurred. Current Account (LCCA). the PCVs and its supporting documents. Record disbursement in Cashbook – Cash in Bank. i. Sec. Gather duly certified and approved payrolls to be paid out of cash advance. In case the amount of cash advance is less than the travel expenses incurred. 45. At the end of the year. He shall ensure that receipt of the report and supporting documents. Payments in Cash. prepare the Journal of Entry Voucher (JEV) and record the transaction in the Cash Disbursements Journal.000. The ALOBS setting up the fund at the beginning of the year shall be cancelled. and record JEV in the Check Disbursements Journal. Petty cash fund shall be set up at the beginning of the year. 47. assign number to DV. Payments out of the Petty Cash Fund. the petty cash fund shall be fully liquidated by preparing a Report of Disbursement supported by the list/summary of PCVs. The Accountant shall verify the report including the completeness of the supporting documents. by regular and special disbursing officers shall be recorded through a debit to Cash – Disbursing Officers and a credit to Cash in Bank – Local Currency. from regular and special cash advances. Reporting of Cash Disbursements. 46. Accounting Unit A Disbursement Voucher shall be prepared for replenishments of the petty cash fund during the year duly supported by a list/summary of PCVs. – Disbursement process for payment of salaries and wages out of cash advances is as follows: PROCESS a) Processing of Payrolls to be paid by cash is the same as that of steps (a) to (e) for check disbursements.PROCESS bank. – To account for cash disbursements. The fund shall be sufficient for the nonrecurring. Payments out of the fund shall be made through the use of PCVs duly supported by official receipts and other required documents. Forward RCI. Sec. Sec.00. emergency and petty expenses of the LGU for one month. The official receipt shall be attached to the PCV. Approves DV and forward to Treasurer for preparation of checks. Sign Box A of DV and submit to the Accounting Unit. Each PCV shall not exceed Php1. Cash Disbursement Process. k. Check completeness of documents/ previous cash advance liquidated. ALOBS shall be prepared for each replenishment and recorded in the RAAO based on actual expenses incurred. Return DV. Forward RCI with DV and supporting documents to Accounting Unit. An ALOBS shall be prepared for the fund. 49.
– Pro-forma accounting entries for disbursement transactions are shown below: Acct . agency assets and public infrastructures shall be taken up in the books as "Construction in Progress” with the appropriate asset classification. In the books of accounts. motor vehicles. etc. Sign "Certified Correct” portion of Report of Disbursement and submit to Accounting Unit. installation costs. – Property.000 l) Sec. As soon as the project is completed. Record disbursement in Cashbook – Cash Advances. These are charged against appropriations/allotments for capital outlay when obligated. during the construction period shall be added to the total cost of the project. plant and equipment acquired through purchase shall include all costs incurred to bring it to the location necessary for its intended use. the latter account is closed to the Government Equity and the asset is recorded in the Registry of Public Infrastructures (RPI). Post monthly to the General Ledger/ Subsidiary Ledger. Prepare Report of Disbursement. machineries. 51. 21. Liquidation of cash 12 . plant and equipment to be constructed may be classified as agency assets and public infrastructures. Grant of cash advance for payroll Cash – Disbursing Officers Cash in Bank – LCCA Salaries and Wages 107 110 21. Pro-forma Accounting Entries. Property. books. At the end of the year. For public infrastructures funded out of regular income. like buildings. Plant and Equipment. while public infrastructures are those to be used by the general public. plant and equipment include land and land improvements. liquidated damages charged to the contractor for delayed completion should be deducted from the total cost. 1. P5.000 Additional Compensation. PERSON / UNIT RESPONSIBLE Treasurer Property. However. and public infrastructure. 52. like transportation. Account Title Payment through Cash Advances Debit Credit a. Forward Report of Disbursement and supporting documents including JEV to the Office of the Auditor. Purchase of Supplies. check and supporting documents to Cashier/Treasurer. etc. and P3.000 Personnel Economic Relief Allowance (PERA). Cash advance for personal services Accountant Enter obligation in RAAOPS for P18. the Construction in Progress for agency asset is closed to the appropriate asset account. and forward check with DV to countersigning officer. Sec. 50. Encash check and pay claimants. – Purchase of supplies and materials for stock regardless of whether or not they are consumed within the accounting period shall be recorded as assets using the Inventory account following the Perpetual Inventory Method (refer to Chapter 7 – Supplies or Property). equipment. During the construction period. ordnance. buildings. supplies and materials purchased out of the Petty Cash Fund for immediate use or for emergency shall be taken up as expenses. the Construction in Progress account is transferred to the Public Infrastructures account upon completion. Prepare JEV to record the liquidation of cash advance. Return unused cash to the Treasurer/ Cashier.000 2. Prepare Accountant’s Advice of Local Check Disbursements and return DV.PROCESS e) Prepare and sign check. Record JEV in the Cash Disbursements Journal (CDJ). completed public infrastructures funded out of a loan shall be closed to the Government Equity account only upon full payment of the loan. Purchase or Construction of Property. Cod e f) Administrator g) Accountant h) Treasurer/ Disbursing Officer Disbursing Officer i) j) Disbursing Officer k) Accountant Particulars 1. Countersign check and forward to Accountant for preparation of Advice. etc. the purchase is immediately recorded as asset. This means that expenses such as license fees and bonus paid to contractor for completing the work ahead of schedule. Sec. of cash advance granted on the face of OR. However. Record the refund as credit to cash advance and attach OR to the Cashbook – Cash Advances. Agency assets are those to be used by the LGU concerned.000 Salaries and Wages. An official receipt (OR) shall be issued by the Treasurer/Cashier to acknowledge the return of unused cash and indicate check no. A disclosure of public infrastructures completed funded from loans shall be made in the Notes to Financial Statements. freight. attach paid payrolls/ supporting documents and copy of OR for unused cash advance returned to Treasurer/Cashier. The construction period theory shall be used in recording both types of assets. However.
Payment by Check a. 2.000. Payment of rent Rent Expense Cash in Bank – LCCA 841 110 3.500 Enter obligation in RAAOMO for Office Supplies P4.500.000 Cancel RAAOMO for setting up of petty cash fund at the start of the year and refund for a total of P6. 3.000 900 900 b.000 and Other Expenses of P800.500 1.500 1. Release of cash advance for petty cash fund miscellaneous expenses Petty Cash Fund Cash in Bank – LCCA 105 110 6.000 800 4.500 1.500 and telephone/internet of P2.000 2. Cod e 801 804 805 410 411 412 107 Debit 18.000 817 818 411 412 1. Cash in Treasury Petty Cash Fund 101 105 1. Travelling Expenses P500. Office Equipment Maintenance P1.000 Cash in Bank – LCCA Due from Officers and Employees 110 128 100 100 Enter obligation in RAAOMO for Office Supplies P2.000 and Traveling Expenses of P1.500 PAG-IBIG Contributions. Cash advance for travel Enter obligation in RAAOMO for Travel of P1.000 1.500 Life and Retirement Insurance Contributions and P1. Government share for life and retirement insurance and PAGIBIG Contributions Life and Retirement Insurance Contributions PAG-IBIG Contributions GSIS Payable PAG-IBIG Payable c.500 2. Liquidation of cash advance during the current year (assuming only P900 was utilized and P100 was refunded) Due from Officers and Employees Cash in Bank – LCCA Traveling Expenses – Local Due from Officers and Employees 128 110 831 128 1. 3.000 Credit 5.000 2.000 1. Enter obligation in RAAOMO as Other Expenses for P6.000 6. 4.000 1. Petty Cash Fund For establishment of fund. Liquidation at year end Traveling Expenses – Local 831 1.Particulars advance for payroll Account Title – Regular Pay PERA Additional Compensation Withholding Taxes Payable GSIS Payable PAG-IBIG Payable Cash – Disbursing Officers Acct .500 21.000 13 .000 Enter obligation in RAAOPS for P1.500 1.000 3. Grant of cash advance 2.000. Maintenance and Other Operating Expenses Enter obligation in RAAOMO for rent P3.000 1. For amount refunded where official receipt was issued 2.000 5. Return of unused Petty Cash Fund.500 1. Payment of utilities (MERALCO and PLDT) Electricity Telephone/Telegrap h and Internet Cash in Bank – LCCA 835 837 110 1.000 3.500 1.000 1.000 3.000 Credit Particulars Account Title Office Supplies Expenses Petty Cash Fund Acct .000 Adjust RAAOMO for refund of cash advance of P100 3. Replenishment of petty cash fund during the year Traveling Expenses – Local Office Supplies Expenses Office Equipment Maintenance Other Expenses Cash in Bank – LCCA 831 849 882 950 110 500 2. Cod e 849 105 Debit 4.800 Enter obligation in RAAOMO for electricity of P1.
00 0 6. c. Highways and Bridges Government Equity Public Infrastructures 243 800. Highways and Bridges Withholding Taxes Payable 232 501 243 800. the public infrastructures shall be recorded in the Registry of Public Infrastructures. 1. Cod e 110 410 110 Debit Credit 360. Payment of second billing 100% accomplishment Construction in Progress – Roads. Issuance of PO to dealer 2.000 d.000 80. Interest Expense Interest Expenses Cash in Bank – LCCA 952 110 400 400 5.000 If funded from regular agency income – 4.000 At year end. Bank charges upon receipt of bank statement Bank Charges Cash in Bank – LCCA 951 110 300 300 232 501 243 Enter obligation in RAAOFE for interest expense of P400 2.000 for construction materials 232 410 400. accomplishment Highways and Bridges 232 400.000 Enter obligation in RAAOMO for training and seminar expenses of P1. Office Equipment – Enter obligation in RAAOCO for P6.000 3.000 14 .00 0 800.00 0 800.000 for construction of road.000 Cash in Bank – LCCA 110 360. Financial Expenses Enter obligation in RAAOFE for bank charges of P300 1.000 1.000 If funded from a loan – 6 To record completed roads Public Infrastructures Construction in Progress – Roads.00 0 800. Payment of seminar fee Training and Seminar Expenses Cash in Bank – LCCA 833 110 1. Payment of first Construction in billing for 50% Progress – Roads.structures at the end of the year Note: Using the JEV for the above transactions. Approval of the project P1M No entry Enter obligation in RAAOCO for P600.000 800.000 2. Construction of Roads by Contract – Enter obligation in RAAOCO for P800.00 0 40.000 80.00 0 Withholding Taxes Payable 410 40.Particulars Account Title Acct . Highways and Bridges Government Equity Public Infrastructures 243 800.upon full payment of laon – e.000 for purchase of equipment 1. Receipt of office equipment Office Equipment Cash in Bank – LCCA No entry 222 110 6. To take up roads completed Public Infrastructure Construction in Progress – Roads. Remittance of taxes withheld Account Title Cash in Bank – LCCA Withholding Taxes Payable Cash in Bank – LCCA Acct .000 b. To transfer completed roads to Registry of Public Infra. General Repair/Construction of Building by Administration 1. Cod e Debit Credit Particulars 3.000 800.
Land and Building Withholding taxes Payable Cash in Bank – LCCA 410 110 200.00 0 970.000 900. etc.000 970.000.00 0 30.000) for P1. nails.Particulars 2.000 for building 1.250 i. Issuance of materials P590.000 for labor 5. Remittance of withholding tax Land Building Withholding Taxes Payable Cash in Bank – LCCA Withholding Taxes Payable Cash in Bank – LCCA 201 204 410 110 410 110 600.000 4. Issue PO for building materials: Lumber.700 f. paints.8M Construction Materials Inventory Withholding Taxes Payable Cash in Bank – LCCA Construction in Progress – Agency Assets Construction Materials Inventory 156 410 110 600. Enter obligation in RAAOMO for purchase of office supplies 1. Payment of office supplies delivered Office Supplies Inventory Withholding Taxes Payable Cash in Bank – LCCA 149 410 110 3. Cod e Debit Credit No Entry Particulars Account Title Payable Cash in Bank – LCCA Acct .00 0 100.000 300 2. Cash advance granted to Disbursing Officer for payroll 6.000 Enter obligation in RAAOCO for P600.000 1.000 for land and P400. Accomplishment Report approved by the LCE Withholding Taxes Payable Cash in Bank – LCCA Buildings Construction in Progress – Agency Assets 107 110 350.00 0 350.00 0 400.000 540. Cod e 410 110 Debit Credit 200.000 Enter obligation in RAAOCO for P380. Payment for construction materials received Account Title Acct . Payment of the land and building (assessed value of land is P600.000 350. cement.000 30. Purchase of Inventories Enter obligation in RAAOMO for purchase of P2. Liquidation by Disbursing Officer of paid payroll Cash – Disbursing Officers Cash in Bank – LCCA Construction in Progress – Agency Assets Withholding Taxes Payable Cash – Disbursing Officers 7.00 0 2.000 2.000 g. Remittance of withholding tax 60.00 0 200. Remittance of withholding tax 8. Payment made for land purchased Land Withholding Taxes 201 2M j.000 230 410 107 410 110 204 230 380. Fund Transfers Enter obligation in RAAOMO for subsidy to LGU – XYZ 15 .00 0 590.000 230 156 590. = P600.000 30.500 250 2. Acquisition of Land Enter obligation in RAAOCO for P2million for purchase of land 1.000 100.00 0 100.500 worth of spare arts 1. sand and gravel.000 3. Payment of delivered spare parts Spare Parts Inventory Withholding Taxes Payable Cash in Bank – LCCA 155 410 110 2.000 h.
the RPT/SET Receivables and corresponding Deferred RPT/SET Income shall be restored. a copy of the decision shall likewise be forwarded to the Chief Accountant for the preparation of the JEV. MISCELLANEOUS TRANSACTIONS Sec. etc.000 10. theft. the amount shall be forfeited in favor of the government and an official receipt shall be issued by the collector/teller. As soon as a shortage is definitely established. In case of dishonor of check payments for Real Property Tax (RPT) or Special Education Tax (SET). the treasurer shall immediately notify the bank concerned for the stoppage of payment. force majeure. In case the request for relief is denied. The Treasurer shall record the JEV number in the Cashbook-Cash in Bank as reference in the entry effecting the cancellation of the dishonored check. 5. He shall also notify the collector/teller of the dishonor and the cancellation of the official receipt. 54. He shall prepare the Journal of Entry Voucher (JEV) taking up the dishonored check by crediting the Cash in Bank account and debiting the appropriate income account. The cash overage shall be taken up as Other Specific Income. Dishonored Checks. theft or robbery. Sec. – A check is considered lost when it is misplaced.000 l. 84-373A. Loss of Cash and Property Accountability Cash Overage Dishonored Check Lost/Destroyed/Stale/Obsolete and Fraudulently Encashed Check Settlement of Suspensions/Disallowances/Charges Refund of Overpayments Sec. – Loss of cash and property may be due to malversation. These transaction types seldom take place or ideally should not happen at all. RPT Income. In case the request for relief from accountability for loss of property caused by fire. The Accountant shall cancel the official receipt if still in his possession.000 Credit 30. Cash in Bank and RPT Discount shall be adjusted accordingly. as determined by the auditor. constructive cancellation of the official receipt covering the dishonored check shall be immediately effected by the Treasurer on the copy in his possession. Cash transfer to SEF as subsidy Subsidy to Other Funds Cash in Bank – LCCA 897 110 10. Upon submission of sworn statement from the payee that a check issued by the LGU is lost. k. Grants and Donations Cash in Bank – LCCA 889 110 500. fire. – Miscellaneous transactions refer to transactions that are unique and not recurring in the ordinary course of operations of the government. Enter obligation in RAAOMO for grants and donation to Trust Fund 1. the loss shall be taken up as a receivable from the accountable officer/persons liable and shall be credited to the appropriate asset account. He shall furnish the Treasurer with a copy of the duly approved JEV. Cash shortage discovered during cash examination conducted by auditors is reported through the Report of Cash Examination within ten (10) working days from the completion of examination pursuant to COA Memorandum No. robbery or other causes. such payment is refused or cannot be obtained. Cod e 895 110 Debit 30. Loss of Cash and Property. 16 . the Auditor shall issue a memorandum pertaining thereto and the Accountant shall draw a Journal of Entry Voucher to take up the shortage as a receivable from the accountable officer concerned. Cash assistance to LGU –XYZ Account Title Subsidy to Local Government Units Cash in Bank – LCCA Acct .Particulars 1. 55. The collector/teller shall note the cancellation in the triplicate copies of the receipt. Miscellaneous Transactions. or when it is lost due to fortuitous event. a report thereon shall be prepared by the accountable officer concerned for purposes of requesting relief from accountability. Cash Overage. Copy of the JEV shall be furnished the treasurer as basis for him to debit the amount in the Cashbook – Cash in Bank. Grant of Relief from Accountability. 4. 6. The Treasurer shall then inform the Auditor who shall effect the cancellation in the duplicate copy of official receipt.000 E. The following maybe considered miscellaneous transactions: 1. in case the same has already been submitted for audit. Upon receipt of the debit memo and the dishonored check(s) from the bank. 57.00 0 500. The Treasurer shall immediately photocopy the dishonored checks and record as credit in the Cashbook–Cash in Bank and cancel payment in the taxpayer’s index card. 3. a copy of the decision shall be forwarded to the Chief Accountant who shall draw a JEV to record the transaction. Sec. The Treasurer shall forward the debit memo and the photocopy of the dishonored checks to the Accountant. Restitution shall be acknowledged by the issuance of an official receipt. immediate payment of the shortage shall be demanded from the accountable officer. If request for relief from accountability is denied. Enter obligation in RAAOMO for subsidy to SEF 1. The loss shall be debited to the Loss of Assets account and credited to the appropriate asset account. 56. force majeure or other causes is granted. The accounts Due to LGUs. The auditor issues an audit report in case of shortage in property accountability. – When a request for relief for shortages or loss of funds is granted. theft. waylaid or left behind inadvertently/negligently by the payee or holder in due course or by the custodian/carrier thereof and after diligent search cannot be found or located. 53. The loss shall be debited to the Loss of Assets account and credited to the appropriate receivable account. Sec. 2. No accounting entry shall be made but the loss shall be disclosed in the notes to financial statements pending result of request for relief from accountability.000 Sec.). He shall forward the sworn statement to the accountant who shall prepare the JEV to cancel the payment made. Cash transfer to Trust Fund as counterpart LGU funds. 58. Cancellation of Lost Check Issued. – In case the cash examination disclosed cash overage. – A check is said to be dishonored when upon its being duly presented for payment. In case of loss of property due to other causes (theft.
Cod e Debit Credi t a. – Disallowances and charges shall be taken up in the books of accounts only when they become final and executory. At least one month before a check becomes stale. the cancelled check shall be presented in the RCI after the last check issued for the period indicated in the report. Sec. 61. The original DV and supporting documents shall be returned to the Accountant who shall prepare a JEV to record the transaction as Accounts Payable. For spoiled checks which are immediately cancelled and for which the Report of Checks Issued (RCI) has not yet been prepared. Cash Overage To take up cash overage discovered during cash examination 5. – The following the are pro-forma accounting entries for miscellaneous transactions: b. Dishonored Checks Cash in Treasury Other Specific Income of LGU 101 792 50 50 17 . Suspensions in audit and settlement thereof shall not be recorded in the books of accounts. Pro-forma Accounting Entries. if it has been outstanding for over six months from date of issue or as prescribed by the depository bank. the cancelled check shall be attached to the RCI and reported chronologically with the other checks issued and the word “Cancelled” shall be indicated on the report. mutilated. Disallowances and Charges. Cash Shortage Account Title Acct . 2. 60. A check is considered spoil when. The Accountant shall prepare the Journal of Entry Voucher (JEV) to take up the Receivable – Disallowances and Charges and credit the appropriate expense account for the current year or prior years’ adjustment if pertaining to expenses of previous years. For checks which became spoiled or stale in the hands of the payee and which require replacement. Spoiled and Stale Checks.Sec. the original DV and supporting documents are still with the Treasurer. A spoiled or stale check shall be marked cancelled on its face and reported as follows: Particulars 1. Sec. 3. Suspensions. The replacement check shall also be reported chronologically in the RCI. Cash shortage of the of the Disbursing Officer To take up cash shortage Due from Officers and Employees Cash – Disbursing Officers 128 107 50 50 1. Cash settlement of disallowances shall be recorded thru the JEV by debiting Cash in Treasury and crediting the Receivable – Disallowances and Charges account. defaced or with erasures/errors affecting the genuineness of any material information contained therein. Cash Settlement in case of denial of Request for Relief from Accountability To take up payment/settlement Cash in Treasury Due from Officers and Employees 101 128 50 50 4. it is torn. For stale checks which have been unclaimed and thus. – Checks may be cancelled when they become spoiled or stale. A certified copy of the DV shall be requested from the Auditor for presentation to the Administrator/Local Chief Executive who shall countersign the check. The cancelled check shall be reported and attached to the RCI prepared at the period of cancellation. a new check may be issued upon submission of the spoiled or stale check to the Treasurer. 59. Grant of Relief from Accountability for Loss of Government Funds To record the loss of fund by a Disbursing Officer (allegedly thru theft ) = P50 To take up relief from accountability Due from Officers and Employees Cash – Disbursing Officers Loss of Assets (current year) or Prior Years’ adjustments (prior years) Due from Officers and Employees 128 107 50 50 948 128 50 50 3. Cash Shortage of the Treasurer To take up cash shortage Due from Officers and Employees Cash in Treasury 128 101 50 50 2. the Treasurer shall send a written notice to the payee of the existence of the check. It is stale.
P 100 Should be 110 Charge 10 Receivables – Disallowances/ Charges Franchise Tax 6. Lost/Destroyed/Stale/Obsolete Checks Check issued in the current/prior year for replacement Check cancellation Replacement Cash in Bank – LCCA Accounts Payable Accounts Payable Cash in Bank – LCCA 110 401 401 110 50 50 50 50 138 724 10 10 Settlement 7.P100 Should be 90 Difference 10 Settlement of Disallowance c.1 Recording of charges which collection were made in the current year When the charge becomes final and executory – Underpayment of Franchise Tax Amount Paid . Refund of Overpayment 18 . Recording of disallowance for current year’s transaction Cash in Treasury Receivables – Disallowances/ Charges 101 138 10 10 When the disallowance becomes final and executory – Overpayment of Office Supplies Amount paid . Cod e 138 533 101 138 Debit 10 Credi t 10 10 10 Settlement of disallowance c. Settlement of Charges c. Recording of disallowance for prior year’s transaction 8.Particulars Account Title Acct . Disallowances and Charges a.2 Recording of charges which collection were made in the prior year Receivables – Disallowances/ Charges Office Supplies Expense When the charge becomes final and executory 10 Receivables – Disallowances/ Charges Prior Years’ Adjustments Cash in Treasury Receivables – Disallowances/ Charges 138 849 10 138 533 101 138 10 10 10 10 Cash in Treasury Receivables – Disallowances/ Charges 101 138 10 10 Settlement b. Cod e Debit Credi t From payment of real property tax in the current year or prior year Upon receipt of advice of dishonored check and cancellation of Official Receipt Real Property Tax Receivable Deferred Real Property Tax Income Due to LGUs Real Property Tax Income Cash in Bank – LCCA Receipt of refund/settlement Cash in Treasury Real Property Tax Receivable 124 448 431 711 110 101 124 30 20 50 50 50 50 50 Particulars When the disallowance becomes final and executor Account Title Receivables – Disallowances/ Charges Prior Years’ Adjustments Cash in Treasury Receivables – Disallowances/ Charges Acct .
advance payment of real property taxes).Particulars Account Title Acct . Adjusting entries for prepayments are required at the statement date to record the portion of the prepayment that represents the expense incurred or the revenue earned in the current accounting period. 65.000 Refund of overpayment of Salaries and Wages – Regular Pay during the current year To take up refund of over – payment in the ensuing year F. Prepaid expenses expire either with the passage of time (e.g. rent) or through use and consumption (e. liabilities and equity accounts at the statement date and the Statement of Income and Expenses the net income/(loss) for the period.g. 2. Account Title Office Supplies Expense Office Supplies Inventory Deferred Credits to Income Real Property Tax Debit 2. The depreciable or estimated life for different types of agency assets are presented in Table 2 (Annex 7). The use of the adjusting entries makes it possible to report on the Balance Sheet the appropriate assets. Cod e 130 746 Credi t Sec. periodic adjusting entries for depreciation are included in this category. – Accruals are revenues earned and expenses incurred in the current accounting period that have not yet been recorded. Adjusting entry for accrued revenues is a debit to a receivable account and a credit to an income account. Adjusting entries are required every time financial statements are prepared. Accruals. bad debts. the entry is a debit to Bad Debts Expense and a credit to Allowance for Doubtful Accounts. The adjusting entry for unearned revenues is a debit to a liability account and a credit to revenue account. Report of supplies utilized for P2. supplies). – Prepayments are expenses paid or revenues received before they are incurred or earned. hence. Adjusting Entries.g.000 Cash in Treasury Prior Years’ Adjustments 101 533 10 10 2. Prepayments. Cod e 849 149 Credi t Cash in Treasury Due from Officers and Employees 101 128 10 10 b.000 20. For bad debts.500 2. 64. 62. Adjusting entry for accrued expenses is a debit to the appropriate expense account and a credit to a payable account.500 ADJUSTING AND CLOSING ENTRIES Sec. Types of Adjusting Entries. Unearned revenues are recorded as a liability when received and considered earned upon rendition of service (e. Sec. supplies. Examples are interest. Examples are accrued salaries.00 19 . Adjusting entries for accruals are required to record revenues earned and expenses incurred in the accounting period. Examples are rent. Illustrative accounting entries: Acct . 63.500. b. Application of advance RPT for P2. and Accruals Sec. Prepayments. Particulars 1.000. etc. the entry is a debit to depreciation expense and a credit to accumulated depreciation. Illustrative accounting entries: Acct . Receipt of the Notice of Funding Check Issued for the Account Title Due from NGAs Share from Internal Revenue Debit 20. etc. For depreciation. – There are two types of adjusting entries: a. etc.g. 440 711 2. tuition fees) or the passage of time (e. Acquisition of productive facilities is viewed essentially as long term prepayments. Subcategories of prepayments are prepaid expenses and unearned revenues. Refund of overpayment not taken up as receivable Cash in Treasury Salaries and Wages – Regular Pay 101 801 10 10 Particulars 1. Cod e Debit Credi t a. share from internal revenue collections covered by notice of funding checks issued. The adjusting entry for prepaid expenses is a debit to the expense account and a credit to the asset account. – Adjusting entries are accounting journal entries made in order to ensure that revenues and expenses are recorded in the period when they are earned or incurred following the revenue recognition and the matching principles. Overpayment taken up as receivable To record overpayment of salaries and wages (When overpayment is ascertained) To record refund of overpayment Due from Officers and Employees Salaries and Wages – Regular Pay 128 801 10 10 Prepaid expenses are expenses paid in cash and recorded as assets before they are used or consumed.
Pre-Closing Trial Balance. Debit all revenue accounts balances and credit the total to the Income and Expense Summary account. Debit the credit balance of the Income and Expense Summary account and credit the amount in the Retained Operating Surplus account. The procedure followed in the reduction of the balances is called the closing process.000 50. Cod e 532 534 Debit 5. 69. To uncover errors in journalizing and posting. Acct . Illustrative accounting entries: Sec. Retained Operating Surplus Government Equity 534 501 5. and Prove the equality of the two columns. 5.Particulars December Share from Internal Revenue Collections for P20. with the debit balances in the left column and credit balances on the right column.670 2. Sec. 3. Procedures in the Preparation of the Trial Balance. in case of a net loss.000. Purpose of the Trial Balance. These reports shall be submitted to the following: Business Taxes & Licenses Registration Fees Income and Expense Summary 723 761 532 50 20 10. TRIAL BALANCE. Particulars 1. and As basis for the preparation of the financial statements. c.670 5. – The pre-closing trial balance is the trial balance prepared from the general ledger accounts after the adjusting journal entries have been journalized and posted. Trial Balance. b. Account Title Income and Expense Summary Retained Operating Surplus Acct . This is also termed as adjusted trial balance. 6.170 20 . Credit the debit balance of the Income and Expense Summary account and debit the amount in the Retained Operating Surplus account. Cod e Debit Credi t 0 Particulars 2. – The procedures in trial balance preparation shall be: a. 68. for both the current and continuing appropriations. Credit all expense accounts balances and cost of goods sold and debit the total to the Income and Expense Summary account. The closing process is as follows: 1. Credit all debit balances of the intermediate accounts and credit the total to the Government Equity account.000. Allotments and Obligations. 70. It shall be supported by the Status of Appropriations. in case of a net income. FINANCIAL REPORTS AND STATEMENTS Sec. – Closing journal entries are the accounting entries prepared to reduce all balances of the nominal accounts to zero at the end of the accounting period in order to prepare the accounts for the next accounting period. Debit all credit balances of the intermediate accounts and debit the total to the Government Equity account. Sec.670 Chapter 4. To close the Income and Expense Summary to Retained Operating Surplus account. Unpaid salaries and wages of employees. Monthly pre-closing trial balance for each fund shall be submitted not later than the twentieth day after the end of the month. 67.00 0 3. at end of accounting period.670 Credit 5. Salaries and Wages – Regular Pay Due to Officers & Employees 801 428 50. 4. List the account titles and their debit/credit balances based on the accounts and amount reflected in the general ledger. Account Title Real Property Tax Share from Internal Revenue Collections Sec. Total the debit and credit columns. P50. – Trial balance is a list of all the general ledger accounts and their balances at a given time. Debit 100 10. To close the Revenue accounts to the Income and Expense Summary account. 2. – The trial balance is prepared: a. c.000 Credit b. Account Title Collections Acct . The accounts are listed in the order in which they appear in the ledger. To prove the mathematical equality of the debits and credits after posting. Closing Journal Entries. 66. Cod e 711 746 To close the Retained Operating Surplus to Government Equity account.
program project and activity (See Annex 1). – The status of appropriations. It shall form an integral part of the financial statements. The use of the worksheet facilitates the end-of-period accounting and reporting process. The following worksheet format shall be used: Name of LGU Worksheet As of ____________. 2. The statement shall be signed by the Chief Accountant and the Head of the Agency or his authorized representative. Cr. – A worksheet is the accountants informal device for accumulating and sorting information needed for the financial statements. Sec. Adjustment s Dr. c. The following interim financial statements and the Notes to Financial Statements shall be prepared and submitted quarterly: a. Separate schedules shall be prepared for current appropriation and for continuing appropriations using the following column headings: Function/Program/ Project/ Activity Appropriation s Allotmen t Obligatio n Unobligat ed Balance To facilitate the preparation of the interim financial statements. Balance Sheet show all the debit and credit items in the adjusted trial balance of all the asset. Balance Sheet Dr. Statement of Income and Expenses shows all the debit and credit items in the adjusted trial balance for all the income and expense accounts. Statement of Income and Expenses. and Statement of Cash Flows The interim reports shall be prepared employing the same accounting principles used for annual reports. Adjusting entries shall be prepared for the interim period. Account title and code columns show the account titles/codes of the general ledger accounts. 21 . Year-end Financial Statements. The post-closing trial balance with supporting schedules shall be distributed as follows: COA Central Office thru the Unit Auditor COA Regional Office COA Unit Auditor Local Chief Executive Local Sanggunian Local Treasurer Local Accountant – 1 copy – 1 copy – 1 copy – 1 copy – 1 copy – 1 copy – 1 copy 6. without closing the books of accounts. 76. Adjusted trial balance shows the balances of all the accounts after the adjustment at the end of the accounting period. Also. Interim Reports. Statement of Income and Expenses. 75. Balance Sheet. Cr. – Post-closing trial balance is the trial balance prepared at the end of the year after the closing entries are journalized and posted in the general ledgers. Cr. Sec. Trial balance column reflects amounts obtained from the general ledger balances. b. Statement of Income & Expenses Dr. 72.COA Unit Auditor – Original copy Local Sanggunian – 1 copy Local Treasurer – 1 copy Local Accountant – 1 copy The trial balance at the end of the quarter shall also be supported by a schedule of subsidiary ledger balances of the controlling accounts in the General Ledger and an additional copy shall be submitted to the COA Regional Office thru the Unit Auditor. The difference between the income and expenses shall be reflected as Net Income/Loss to be extended to the credit column of the Balance Sheet. Allotments and Obligations. Cr. allotments and obligations is a schedule prepared showing the appropriation. and Summary of Public Infrastructures (Annex 8). 5. Sec. liability. allotments and obligations of each function. Sec. c. Cod e Trial Balance Dr. all of which shall be transmitted to the concerned agencies. The Chief Accountant shall likewise prepare the consolidated financial statements for all funds and the Notes to the Financial Statements. – Interim reports are financial statements required to be prepared at any given period or at a financial reporting period shorter than a full financial year. b. equity and intermediate accounts affecting directly the Government Equity account. expense and intermediate) are closed and the real accounts (assets. Adjustment columns are the adjustments effected for the prepayments and accruals. 71. all the nominal accounts (revenue. Cr. and Statement of Cash Flows Sec. Allotments and Obligations. Statement of Management Responsibility for Financial Statements. 3. Sec. 4. the use of the worksheet is recommended. It is a columnar sheet of paper used to adjust the account balances and prepare the financial statements. Status of Appropriations. 73. Status of Appropriations. Statement of Management Responsibility for Financial Statements (Annex 2) shows the agencies’ responsibility for the preparation and presentation of its financial statements. Balance Sheet. Subsidiary Schedule of General Ledger account balances. 74. – Local accountants shall prepare at the end of the year the following financial statements for each fund: a. 20_____ Accounts Title 1. c. liability and equity) are shown with balances. Worksheet. Adjusted T/B Dr. It shall be submitted not later than the fourteenth day of February after the end of the calendar year with the following supporting schedules: a. In the Post-closing Trial Balance. b. Post-closing Trial Balance. it helps accountants prepare the financial statements on a more timely basis.
and the supplementary local cost of meeting such needs. and 5. which shall be reflected in the form of an annual school board budget corresponding to its share of the proceeds of the special levy on real property constituting the special education fund and such other sources of revenue as the Local Government Code and other laws or ordinances may provide. or district supervisor. Educational research. practices or methods of applying them. Sports development. 3. even though the events do not affect the propriety of the financial statements themselves. Customary or routine disclosure – which are information about measurement bases of important assets. addition to the basic real property tax. – The Notes to the Financial Statements (Annex 6) are the accountant’s means of amplifying or explaining the items presented in the main body of the statements. important long term commitments not recognized in the body of the statements. Sec. city. statement of income and expenses and statement of cash flows. 2. Basis of Recording Special Education Tax – Special Education Tax Receivables shall be established at the beginning of the year based on Real Property Tax Account Register/Taxpayer’s index card. Notes to the Financial Statements. Narrative descriptions or detailed analyses of amounts shown on the face of the balance sheet. as the case maybe. and Holding of sports activities at the division. 3. It presents the detailed information of the income and expenses recognized during the period covered. (Article 184(f) of the IRR of the Local Government Code) The annual school board shall give priority to the following: 1.changes in accounting principles. 80. 5. 4. the annual supplementary budgetary needs for the operation and maintenance of public schools within the province. shall prepare the budget of the school board concerned. These are explanatory notes on the accounts and/or accounting policies which will give additional information value to the financial statements. facilities and equipment. It presents information on the assets. Statement of Cash Flows. and barangay levels. 85.. Balance Sheet. Based on the list. (Article 363 of the IRR of the Local Government Code) Sec. Special Education Fund. repair and maintenance of school buildings and other facilities of public elementary and secondary schools.Sec. 78. 82. 2. Construction and repair of school buildings. Statement of Income and Expenses. – The Balance Sheet (Annex 3) shows the financial condition of the agency at a specific date. in a format that reconciles the beginning and ending cash balances. Establishment and maintenance of extension classes when necessary. the proceeds of the special education fund shall be divided equally between the provincial and municipal school boards. which a province or city. city superintendent. the Chief Accountant shall draw a Journal Entry Voucher (JEV) to record the Special Education Tax Receivables. Construction. or municipality as the case maybe. Operation and maintenance of public schools. Sec. Application of Proceeds of the Additional One Percent (1%) Special Education Fund Tax. the accountant is expected to report the economic substance rather than the legal form of the transactions and to make adequate disclosure. if knowledge of the events might affect the interpretation of the statements. Summary of significant accounting policies adopted and followed by the reporting entity. 79. – The Statement of Cash Flows (Annex 5) shows the agency’s cash activities. At the beginning of the year. (b) In case of provinces. 2. Chapter 5. 84. Sec. The Notes to Financial Statements include the following: 1. 83. contingent assets/liabilities. 81. 77. In the Notes. – The Special Education Fund (SEF) consist of the proceeds of one percent (1%) tax on the assessed value of real property in Sec. – The Local School Board shall determine in accordance with the criteria set by DECS. investing and financing activities of an agency during a period. – Payment of delinquencies for special education taxes prior to CY 2002 shall be recognized as a direct credit to Special Education Tax Income account. projects and activities of the school board for the ensuing fiscal year. and Disclosures of subsequent events – disclosure of events that affect the agency directly and that occur between the date of. It reports cash receipts and cash payments and net change in cash resulting from operating. etc. Delinquencies for Special Education Tax prior to CY 2002. the financial statements and date of completion of the statements are necessary. may levy and collect. or a municipality within the Metropolitan Manila Area. (c) Said proceeds shall be allocated as determined and approved by the local school boards concerned only for the following purposes: 1. Sec. – The Statement of Income and Expenses (Annex 4) shows the income and expenses of the agency at the end of a particular period. SPECIAL FUNDS A. Special Education Fund Budget. 3. district. restrictions on assets. 22 . Disclosures of changes in accounting principles. – (a) The proceeds of the additional one percent (1%) real property tax accruing to special education fund shall be automatically released to the local school boards. liability and the government equity of the agency. Such budget shall be supported by programs. Purchase of books and periodicals. Sec. 4. ACCOUNTING FOR SPECIAL EDUCATION FUND Sec. A majority of all the members shall be necessary to approve the budget. or end of the period covered by. (Article 184(b)(1) of the IRR of the Local Government Code) The division superintendent. municipal. the Treasurer shall furnish the Chief Accountant with a duly certified list of the name of taxpayers and the amount due and collectible for the year.
Sec. The division/city superintendent of schools or the district supervisor concerned. Cod e 125 I. 88.000 for Provincial Share 449 500. This shall then be forwarded to the Chief Accountant who shall certify as to obligations of allotments and shall record the same in the appropriate Registry of Appropriations.00 0 Deferred Special Education Tax Income Special Education Tax Due to LGUs 449 713 431 200. He shall likewise prepare separate financial reports such as the Trial Balance. Separate Registries. Inventory Process. – The additional one percent (1%) tax on real property shall be collected simultaneously with the basic real property tax. 92. Statement of Cash Flows and supporting schedules. 91.00 0 2. This shall be forwarded to the Budget Officer who. the Treasurer shall also certify as to cash availability in the contract.00 0 100. Collection Procedures for the Special Education Tax. separate perpetual inventory records and stock cards shall be maintained by the Accounting Unit and the General Services Officer or the Treasurer. Deposit of collections with authorized depository bank 4. Statement of Income and Expenses.00 0 100. frequency of deposit of collection with the bank. He shall certify the ALOBS to that effect and number the same in accordance with the prescribed codes. – The Treasurer and/or the concerned accountable officers shall maintain separate cashbooks for the SEF which shall be in accordance with the prescribed format.00 0 Credit 1. However. based on the approved school board budget. Computation of Shares of LGUs in RPT – 50% of P200.00 0 23 . the proceeds of the additional one per cent tax shall be deposited in a separate depository account. as the case maybe. – Disbursement procedures including the reports to be submitted by the accountable officer concerned are the same as those for the General Fund. For disbursements. 89. preparation of report of collections. – The Treasurer shall certify as to cash availability for the fund in the Disbursement Voucher and Purchase Request. Sec. indicating therein the amount paid for the basic tax and the additional one percent tax. Certification as to Cash Availability.00 0 100. – The Allotment and Obligation Slips (ALOBS) pertaining to the fund shall be prepared and signed by authorized official of the requesting department or office. Sec. as the case maybe. Further. This certification shall serve as the required certification under the law. the collecting officer shall prepare separate reports of collections for the two taxes.000 Cash in Bank – LCCA Cash in Treasury 110 101 200. preparation of report of accountability for accountable forms as well as consolidation of reports of accountable forms shall be the same as that prescribed for collections in the General Fund. Disbursement Procedures. Remittance of share to Province ( Special Education Tax) – P100. allotment and obligations and books of accounts for SEF. propriety. disbursements shall be approved by the Local Chief Executive concerned as co-chairman of the local school board. For infrastructure projects undertaken by contract. Particulars Account Title Special Education Tax Receivable Deferred Special Education Tax Income Debit 500. Books of Accounts. – Pro-forma accounting entries for the fund. 90. Sec. Sec. – The Chief Accountant shall maintain separate registries for appropriation. shall certify vouchers or payrolls as to validity. separate set of JEVs shall also be prepared which shall be numbered in accordance with the prescribed codes. – The perpetual inventory method and the moving average method shall likewise be adopted in the accounting and costing of inventory. to be submitted within the prescribed timeframe. shall verify the existence of appropriation for the proposed expenditure. follows: SPECIAL EDUCATION FUND (SEF) Acct . However. Set-up Special education Tax Receivable Total Receivables – P500.00 0 Cash in Treasury Special Education Tax Receivable 101 125 200. Sec. The general procedures.00 0 200. separate weekly Summary for Supplies and Materials Issued pertaining to the fund shall be prepared. Preparation and Control of ALOBS for Special Education Fund. The ALOBS shall form an integral part of the disbursement voucher/payroll and the certifications of the local budget officer and the accountant thereon shall serve as their certification of the disbursement as required by law.000. Pro-forma Accounting Entries.00 0 Due to LGUs (Province) Cash in Bank – LCCA 431 110 100.00 0 200. the forms and reports for the holding of inventory shall also be followed. 93. Procedures for the turn over of collections. Sec. verification of collections and accountable forms. A single official receipt shall be issued for both taxes.Sec.00 0 3. 86. Balance Sheet.00 0 Provincial Share – P250. Allotments and Obligations (RAAO). 87. However. and legality of the claim involved. Likewise. Collection of Special Education Tax – P200. and Financial Reports for Special Education Fund. Separate Cashbooks for Special Education Fund.
Ins.000 9. Refund of cash advance 101 128 110 101 20 20 20 20 17. Cod e Debit Credit I. Capital Outlay – RAAOCO) Memo entry in RAAOPS Acct .050 2. Obligation for PS – Salaries of teachers for extension class – P30.050 5.000 6.850 Pag-ibig 600 PhilHealth 500 W/holding Tax 1. Grant of cash advance 801 107 410 30. Allotments and Obligations (Personal Services– (RAAOPS.000 8. Liquidation of cash advance Traveling Expenses – Local Due from Officers & Employees Memo entry in RAAOMO Cash in Treasury Due from Officers & Employees Cash in Bank – LCCA Cash in Treasury Memo entry in 831 128 480 480 413 500 15. Memo entry in RAAOPS 18.850 500 600 3.000 Capital Outlay 30.000 Less: Deductions – (Personal Share) Life & Ret.I.950 11. Obligation for Government Share: Life & Ret. Particulars 5. MOOE – RAAOMO. Grant of cash advance for payroll Account Title Memo entry in Registry of Appropriations .000 25.000 1.850 600 500 5.000 16. Deposit of cash refund 10. Obligation of bill 24 .000 Net Pay per Payroll P25. Receipt of allotment for – Allotment Class: Personal Services P50.950 107 110 25. Adjustment of obligation of travel. Obligation of Traveling Expenses – P500 13. Particulars Contributions P2. Cod e Debit Credit Cash Disbursing Officers Cash in Bank – LCCA Salaries and Wages – Regular Pay Cash – Disbursing Officers Withholding Taxes Payable Life & Retirement Insurance Contributions PAG-IBIG Contributions PHILHEALTH Contributions Cash in Bank – LCCA Memo entry in RAAOMO 817 818 819 110 2. P 2.850 600 14.050 Due from Officers & Employees Cash in Bank – LCCA 128 110 500 500 GSIS Payable PAG-IBIG Payable PHILHEALTH Payable 411 412 2. Remittance of salary deductions 12.000 25.000 MOOE 20. Withholding Taxes Payable GSIS Payable PAG-IBIG Payable PHILHEALTH Payable Cash in Bank – LCCA 410 411 412 413 110 1.850 Pag-ibig Contributions 600 PhilHealth Contributions 500 Total P3. Payment of Salaries Salaries per Payroll P 30.000 7.000 Total P100. Payment of Government Share Account Title Acct .
Closing of Income and Expense Summary Income and Expense Summary Retained Operating Surplus Retained Operating Surplus Government Equity 532 534 63.000 2. or which have been received as a guaranty for the fulfillment of some obligation.000 27.770 B.000 Sec.000 23.000 6. TRUST FUND Depreciation–Office Equipment Accumulated Depreciation – Office Equipment 922 322 6. agent or administrator. – Grants and donations coming from foreign funding institutions. other levels of government and private 25 .000 5. Closing of Income Accounts Electricity Cash in Bank – LCCA Memo entry in RAAOMO 835 110 800 800 2. Cod e 713 605 532 Debit 100. Particulars 1. Closing of Expense Accounts Account Title Special Education Tax Subsidy from Other Funds Income and Expense Summary Income and Expense Summary Salaries & Wages – Regular Pay Life & Retirement Insurance Contributions PAG-IBIG Contributions PHILHEALTH Contributions Traveling Expenses – Local Electricity Depreciation–Office Equipment Acct .23 0 30. Definition of Trust Fund.000 532 801 817 818 819 831 835 922 41. 95.77 0 63. 94. Cod e Debit Credit I. Closing of Retained Operating Surplus 534 501 63.000 Closing Entries : 4. Sec. – Trust Fund shall consist of private and public monies which have officially come into the possession of the local government or of a local government official as trustee. Obligation of Equipment per Purchase Order – P30.000 3. Particulars received from MERALCO 19. Payment of MERALCO bill – P800 20.0 00 5. P6. Receipts Accruing to the Trust Fund. Receipt of fund transfer from General Fund thru bank Adjusting Entries: 1.000 Office Supplies Inventory Withholding Taxes Payable Cash in Bank – LCCA Memo entry in RAAOCO 149 410 110 500 20 480 22. Payment of equipment with Invoice/Delivery Receipt Office Equipment Withholding Taxes Payable Cash in Bank – LCCA Cash in Bank – LCCA Subsidy from Other Funds 222 410 110 110 605 30.000 5.I. A trust fund shall only be used for the specific purpose for which it was created or for which it came into the possession of the local government unit.000 Credit 105. Payment of office supplies Account Title RAAOMO Acct . Depreciation of Equipment using the Straight Line Method: Equipment : Life Amount 5 yrs. Obligation for the purchase of Office Supplies – P500 21.77 0 63.850 600 500 480 800 6.770 24.000 3.
For other projects. – Disbursements from trust funds shall be in accordance with the specific purpose stated in the trust agreement/approved budget between the trustor and trustee (LGU) as certified by the Chief Accountant. PERSON / UNIT RESPONSIBLE Concerned Office 2. Procedures for the turn over of collections. preparation of report of collections. Statement of Cash Flows and supporting schedules. Prepare Report of Checks Issued (RCI). Sec. – The construction period theory shall apply for expenditures on infrastructure projects of the Trust Fund. Record disbursement in Cashbook – Cash in Bank. Disbursements within Trust Agreement/Approved Budget. Countersign check and forward to Accountant for preparation of the Accountant’s Advice. Gather supporting documents. 3. Expenditures shall be closed to Project Equity account at year-end or upon project completion. Sec. Sec. Disbursement Process. In case of receipt of funds through the bank. assign number to DV/Payroll. Treasurer 5. frequency of deposit of collection with the bank. DV. 7. propriety and legality of the claim involved by the department/ office head concerned. Equity of the LGU on projects under a trust agreement shall also accrue to the Trust Fund. Loans of LGUs for income generating projects from the Municipal Development Fund Office (MDFO) requiring counterpart funding from LGUs shall not be recorded in the Trust Fund but as a Special Account in the General Fund. Prepare the JEV based on individual checks/voucher. Local Chief Executive/ Administrator of the Fund Treasurer 6. Certification and approval of vouchers and payrolls as to validity. Administrator 8. Post monthly to the General Ledger/Subsidiary Ledgers 11. 99. expenditures shall be debited to the appropriate expenditure account. Approve transaction (Box D) and forward DV to Cashier. d. Accounting Unit Accountant 26 . Sec. Issue check to claimant. Sec. Project Expenditures. Prepare Accountant’s Advice of Local Check Disbursements and return DV. whichever comes first. preparation of report of accountability for accountable forms as well as consolidation of reports of accountable forms shall be the same as that prescribed for collections in the General Fund. Certification and Approval of Disbursements from Trust Funds. Prepare and sign check and forward check with DV to countersigning officer. Supervisor/Head of Department Accounting Unit 4. Accountant 9.institutions/individuals for specific projects/purpose shall accrue to the Trust Fund. and Approval by the Administrator of the fund. 101. Separate Books of Accounts and Financial Reports for Trust Fund. – Disbursements from the Trust Fund shall be as follows: a. Certification as to existence of funds held in trust and completeness and propriety of supporting documents by the Accountant. 97. 102. Separate Cashbooks for Trust Fund. check and supporting documents to Cashier/Treasurer. prepare DV/payroll and forward to Head of Department. Check completeness of documents and verify existence of funds held in trust. – The Chief Accountant shall maintain separate books of accounts for Trust Fund. The certification on the DV as to existence of funds held in trust shall serve this purpose. Balance Sheet. Sign Box A of DV and submit to the Accounting Unit. sign Box B and forward to Treasurer. and record JEV in the Check Disbursements Journal. PROCESS 1. 96. the Accountant shall draw a JEV based on the bank credit memo. – Cash collections for the Trust Fund shall be acknowledged through the issuance of an official receipt. Forward RCI. Treasurer Sec. Sec. 98. Verify claim. He shall likewise prepare separate financial reports such as the Trial Balance. b. Disbursement by check 10. forward RCI with DV and supporting documents to Accounting Unit. supporting documents and JEV to the Office of the Auditor for final custody and post audit. c. 100. – Disbursements from the Trust Fund shall require: a. Certification as to cash availability by the Treasurer. – The Treasurer and/or the concerned accountable officers shall maintain separate cashbooks for the Trust Fund which shall be in accordance with the prescribed format. to be submitted within the prescribed timeframe. verification of collections and accountable forms. Collection Procedures for the Trust Fund. These receipts shall be credited to the Project Equity account. sign “Prepared By” portion (approved by Chief Accountant). certify cash availability (Box C) and forward to approving officer.
000 410 110 502 243 212 50.000 900.00 0 1. The transferred equipment shall be recorded as follows: General Fund Public 243 2.00 Books: Infrastructures 0 Construction and Heavy Equipment 212 500.000 50.000 27 . Sec. completed infrastructure project shall be recorded in the Registry of Public Infrastructures with the TF JEV No. Transfer of completed construction to Public Infrastructure Public Infrastructures Construction in Progress – Roads. Purchase of equipment 2.000.000 i. Account Title Credit f. 103.500. Remittance of taxes w/held 410 110 200. Highways & Bridges Withholding Taxes Payable Cash in Bank – LCCA b. Debi t 1. Cod e II. – Accounting entries for typical transactions under the trust funds are as follows: Acct .000.00 0 h.00 0 500. Acct .500. the forms and reports for the holding of inventory shall also be followed.00 0 Credit For payments through cash advances. 104. However. Construction of road – P2M b. Purch ase of constr uction Equipment – P500. Likewise.00 0 2. Sec. procedures 1 to 5 for check disbursement shall be followed. Cod e 232 410 110 II. Inventory Process. separate weekly Summary for Supplies and Materials Issued pertaining to the fund shall be prepared.000 Construction in Progress – Roads.000 50. Highways & Bridges Withholding Taxes Payable Cash in Bank – LCCA 232 410 110 1. as basis. Highways & Bridges Withholding Taxes Payable Cash in Bank – LCCA Construction and Heavy Equipment Withholding Taxes Payable Cash in Bank – LCCA Withholding Taxes Payable Cash in Bank – LCCA Project Equity Public Infrastructures Construction and Heavy Equipment 243 1.000 c. Receipt of grant direct to bank from NGA for: a.000 b. – The perpetual inventory method and the moving average method shall likewise be adopted in the accounting and costing of inventory. Submission of statement of disbursements to grantor d. III.00 0 100.500. Submission of full liquidation to grantor and transfer of completed road and equipment to GF for LGU use 2. Issuance of check with approved DV for payment to contractor upon receipt of first billing – 50% accomplished Cash in Bank – LCCA Project Equity 502-01 P2.000.500.000 200.000 Receipt of grant from NGA a.000 110 502 2. The general procedures.00 0 232 Particulars 1.PROCESS PERSON / UNIT RESPONSIBLE Payments through cash advances Particulars check with approved DV for payment to contractor upon receipt of second billing – 100% accomplished Account Title Progress – Roads. Pro-forma Accounting Entries for Trust Funds. The rest of the procedures shall be the same as that of the General Fund.000.000. Payment of withholding tax 212 410 110 500.000.00 0 g. Debi t 100.000 450. separate perpetual inventory records and stock cards shall be maintained by the Accounting Unit and the General Services Officer or the Treasurer as the case maybe.000 900. III. Issuance of Construction in No entry Note: Under the GF books.000 e.
Debi t 500.000 110 502 2. Cod e 537 II.000 100.500. III.00 0 2. 3M LGU Funded Office supplies -1M Salaries of project Personnel . Project budget as agreed upon between grantor and LGU for project: Grantor Building 1.000.00 0 2.000.000 30.00 0 Particulars c.500.00 0 g. Issuance of office supplies 149 110 100.000 2. Issuance of check with approved DV for payment to contractor for Construction of Building.000 Receipt of grant with counterpart fund from LGU a. Debi t Credit 2. Issuance of check with approved DV for purchase of supplies and materials i.00 0 2. Remittance of withholding tax Account Title Construction in Progress – Agency Assets Withholding Taxes Payable Cash in Bank – LCCA Acct . Transfer of Public Infra.000 30.00 0 e.500.000 Withholding Taxes Payable Cash in Bank – LCCA 410 110 50.000.000 Office Supplies Expenses 849 60.000 f. 4M Total 2M b.structure to RPI 2.000 500. 50% accomplished. Issuance of check with approved DV for cash advance on salaries and wages of project administrative personnel Cash – Disbursing Officers Cash in Bank – LCCA 107 110 170.000 502-02 500. Remittance of tax withheld 410 110 30.500.2M Equipment .Particulars Account Title Invested Equity Acct . Invested Equity Government Equity Government Equity Public Infrastructures 537 502 502 243 2.. Liquidation of Cash Advances Salaries and Wages – Casual/ Contractual Withholding Taxes Payable Cash – Disbursing Officers Withholding Taxes Payable Cash in Bank – LCCA Office Supplies Inventory Cash in Bank – LCCA 803 410 107 200. Closing of Invested Equity to Government Equity b.000 170.00 0 At the end of the year: a.000 Note: Entry in LGU General Fund books shall be – Grants and Donations Cash in Bank – LCCA 889 110 500.000 28 . III.000 450.000 h.000.000 170. Receipt of funds from foreign funding institution thru national government agency Cash in Bank – LCCA Project Equity 502-01 1. Cod e 230 410 110 II. d.000 50.000 Credit 50.
III.000 30.000 End of Year u. o. Debi t 0 Credit 1.000 Salaries and Wages – Casual/Contractual Withholding Taxes Payable Cash – Disbursing Officers Withholding Taxes Payable Cash in Bank – LCCA Office Supplies Expenses Office Supplies Inventory 803 410 107 200.000 Project Equity Building IT Equipment and Software 502 204 215 1.000 Project Completion v. Remittance of withholding tax 410 110 30.000 170. Cod e 230 II.000 70. Issuance of check for installation of equipment End of Year m. Purchase of IT equipment 215 410 110 250. Issuance of office supplies 200.000 200.00 0 j.000 60.000 70.200.000 40.Closing.000 25.000 k.000 Withholding Taxes Payable Cash in Bank – LCCA Property Plant and Equipment – Building 410 110 70.000 40. III. plant and equipment account Account Title Construction in Progress – Agency Assets Cash – Disbursing Officers Cash in Bank – LCCA Acct .00 0 29 .00 0 300.000 s. Transfer of construction in progress to 204 1. Issuance of check with approved DV for payment to contractor for Construction of Building – 100% accomplished. Liquidation of salaries and wages 107 110 170.Particulars Account Title Office Supplies Inventory IT Equipment and Software Withholding Taxes Payable Cash in Bank – LCCA Withholding Taxes Payable Cash in Bank – LCCA Acct .000 803 849 Succeeding year n.000 30. Closing of expenses to Project Equity 849 149 40.000 Project Equity 502-02 P260.000 50.00 0 1.200.000 q.000 170.000 25.000 630.000 p. Remittance of withholding tax 410 110 25.200. of expenses to Project Equity IT Equipment and Software Cash in Bank – LCCA 215 110 50.000 Salaries and Wages – Casual/ Contractual Office Supplies Expenses 502 260. Issuance of check for cash advance on salaries and wages r.500.200. Debi t Credit 60.000 225. Cod e 149 II.000 Particulars property. Remittance of withholding tax Construction in Progress – Agency Assets Withholding Taxes Payable Cash in Bank – LCCA 230 410 110 700.000 t. Transfer of building and equipment to the General Fund as follows: Project Equity Salaries and Wages – Casual/ Contractual Office Supplies Expenses 502 803 849 240.000 l.00 General Fund Books: Building IT Equipment and 204 1.
Balance Sheet Statement of Income and Expenses Statement of Cash Flows These reports shall form part of the schedules of the General Fund trial balance.00 0 Electric. interests. each shall have its own set of subsidiary ledger (e. Cod e 215 537 537 501 II. – Profits or income derived from the operation of public utilities and other economic enterprises. and other contributions for specific purposes. 110. – The following shall be the subcodes for the special accounts: SPECIAL ACCOUNT General Fund Proper Market Operation Slaughterhouse Operation Waterworks System SUB-CODE 01 02 03 04 Sec. III.000. Provide adequate information as to the assets. the following financial statements shall be prepared: a. 107.g. 109. Also. 105. any excess shall form part of the general fund of the local government unit concerned. 111.Particulars Account Title Software Invested Equity Invested Equity Government Equity Acct . Sec. liabilities and equity of each special account. b. Sec. Debi t 300.500. – At the end of the year.00 0 Chapter 6. Determine whether the income generated by the public utilities or economic enterprises are sufficient to meet their respective operating costs. – Local government units shall maintain special accounts in the General Fund for public utilities and other economic enterprises. shall first be applied for the return of the advances or loans made therefor.00 0 Credit (18) 20. Reporting. Sec. Sub-codes for the Special Accounts.00 0 1.8 subsidiary ledgers for the market). and development projects funded from the share of the local government concerned from the internal revenue collections and development of national wealth and such other special accounts which may be created by law or ordinance. Special Accounts Subsidiary Ledger. Code 110 Debit 100.500. 8 markets .000 (01) 746 Acct. – Accounting procedures for the operation of the special accounts are adopted in order to: a. Receipt of Share from IRC for P100. 108. Light and Power System Telephone System Toll Roads.000 30 . In case the local government unit maintains a number of the same economic enterprise.000 Share from Internal Revenue Collections (IRC) 100. 106. Transaction a.000 SPECIAL ACCOUNT Credit 1. b. bond issues. loans. SPECIAL ACCOUNTS Sec. Sec. after deduction of the cost of improvement. repair and other related expenses of the public utility or economic enterprises concerned. – Special accounts shall be maintained through the use of complete subsidiary ledger.500. Special Accounts in the General Fund. Sec. Pro-forma Accounting Entries. Bridges and Ferries Transportation System Hospital School Sports Center Recreational Center Housing Projects Convention/Conference Center Parking Space Ice Plant Cemetery 20% Development Fund 80% Share from Energy Sources Share from Development of National Wealth Loans Interests Bond Issues SUB-CODE 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 At end of year: 1. post-closing trial balance shall be prepared for each special account. c. Objectives for the Maintenance of Special Accounts. Profit from Operation. Cash in Bank – LCCA Cash in Bank –LCCA P80.
000 Office of the Treasurer 8.LCCA 7. Tax 50. Fund 2. Fund 2.000 Office of the Treasurer 8.500 Cash in Bank .000 Discount on RPT 6. Code Debit Credit b.000 Office Supplies Inventory 2.000 410 (01) (02) (18) 1.000 2.500 (net of 10% discount) Market fees 40.000 (01) (18) 20. Report of Utilization of Office Supplies c.000 Operation of Market No accounting entry 3.000 Programs under the 20% Dev. Fund 2.000 Office Supplies Inventory Office Supplies Inventory Office Supplies Inventory 149 (01) (02) (18) 6.00 Office Supplies Expense 1.000 65.000 Office Supplies Inventory 3. Code Debit Credit Transaction Less: Withholding tax 1.000 Bus.000 2.000 Office Supplies Inventory Office Supplies Inventory (01) Office Supplies Inventory 10. Requisition of Office Supplies for the following: Operation of Market P10.500.000 Discount on RPT (01) (02) 937 (01) (01) (01) (02) 124 723 783 0 6.LCCA 9.50 0 149 20.000 Programs under the 20% Dev.Basic 58.000 Cash in Bank – LCCA Cash in Bank .000 Business Taxes & Licenses Business Taxes & Licenses 50.000 1.000 Office of the Treasurer 20% Dev. Receipt of collections for P148.000 50. e.000 d.000 Office Supplies Expenses Entry in the RAAOMO 3.000 Office Supplies Expense Office Supplies Expense (01) (02) (18) 849 0 6.000 Net 19. Cash in Bank .000 Receipts from Markets Receipts from Markets 40.000 (02) (18) (01) (02) (18) Acct.00 0 110 19. Obligation of the requested supplies.000 1.000 500 100 f.000 Total 20.600 IV.000 Cash in Treasury Cash in Treasury 108.50 101 148.000 Acct.900 Withholding Taxes Payable 400 Withholding Taxes Payable Withholding Taxes Payable Withholding Taxes Payable 8. Distribution: RPT.Transaction Share from IRC 80.000 31 .500 RPT Receivable RPT Receivable 65.LCCA 1.000 40.500 Cash in Treasury 40. Payment of Office Supplies for the following: Operation of Market P10.
Examples are stationery. k. spare parts. ( Sec.800 Office Equipment (02) 4. and related services.80 410 440 a. Code 898 Debit 12. 112.000 4. 32 .000 606 Office of the Accountant 4. – Supplies or property include everything. as well as trucking. stationery. Cash in Bank – LCCA 110 12. SUPPLIES OR PROPERTY ACCOUNTING FOR SUPPLIES OR PROPERTY Sec. except real property. Examples are furniture.000. Non-expendable supplies or property are proper charges to capital outlay of the LGU. Obligation of Subsidy to the Operation of the Market from the GF Proper for P12.0 00 12. fixtures. furniture. hauling. project or activity.800 Withholding Tax 440 Net 8. security. 356c of the LGC) Sec.Transaction Acct.000 Gross 8. Expendable supplies or property – referring to articles which are normally consumed in use within one year or converted in the process of manufacture or construction. or those having a life expectancy of more than one year but which shall have decreased substantially in value after being put to use for only one year. h. Classification of Supplies or Property.000 Withholding Taxes Payable Withholding Taxes Payable (01) 240 Withholding Taxes Payable (02) 200 Cash in Bank – LCCA Cash in Bank – LCCA Cash in Bank – LCCA (01) (02) 4. Code Debit Credit Transaction Subsidy to Special Accounts Subsidy to Special Accounts (01) 12.800 Chapter 7. materials for construction or personal property of any sort.800 Office of the Market Master 4. 113. janitorial. including non-personal or contractual services such as the repair and maintenance of equipment and furniture. fuel. transport equipment and other equipment.000 (01) Acct. Office of the Accountant Office of the Market Master No accounting entry 5.000 Entry in the RAAOMO b.000 Cash in Bank – LCCA (02) 12. which may be needed in the transaction of public business or in the pursuit of any undertaking. Request for procurement of office equipment of the following offices.00 0 Credit g.000 110 12. Payment of the procured equipment: Subsidy from Special Accounts (02) 12.560 3.360 Office Equipment Office Equipment (01) 4. Definition of Supplies or Property. whose serviceable life is more than one year and which add to the assets of the government. Expendable supplies forms part of the maintenance and operating expenses of the LGU. j. Transfer of the funds for P12.000 Cash in Bank – LCCA Cash in Bank – LCCA 12.000 l. whether in the nature of equipment.000 Subsidy from Special Accounts i.360 222 0 8. Non-expendable supplies or property – referring to articles which are not consumed in use and ordinarily retain their original identity during the period of use. Obligation of the requested equipment Entry in the RAAOCO Receipt of the transferred funds. – Supplies or property shall have the following classification: 110 8.
New unit costs were calculated on Jan. Moving Average Method.13 5 Delivery Receipt/ Invoice No. 26 and 30 when additional units were acquired. Plant and Equipment Ledger Card (PPELC) for each category of plant.09 4. the new unit cost of P11. detailed inventory records are maintained for each inventory item.for supplies carried in stock. as the case maybe. Purchase Request (PR) . 16 Jan. 116. property. 29 @ 11 3. and that the estimated amount of such expenditure has been obligated. Non-personal services – includes. except those purchased out of the petty cash fund which shall be for immediate use and for stock in which case shall be charged immediately to the appropriate expense accounts.Every PR must be accompanied by an ALOBS showing the certification of the local budget officer and the local accountant. the cost assigned to the 500 units issued on this date. shall prepare a PR for supplies and materials needed for the quarter based on the approved Annual Procurement Program.80 0 500 @ 11. plant and equipment. property and equipment and Work. 16.665. a PR shall be prepared. P1. 114.0 9 300 @ 11. Jan. (c) Preparation of Requisition .35 400 @ P2.21 7 3. but is not limited to repairing.0 9 2.Approval of requisitions by the head of office or department concerned who has administrative control of the appropriation against which the proposed expenditure is chargeable is deemed sufficient. ) Sec. that an appropriation therefore exists.c. Receipt/ Invoice No. 30 100 @ 12 1.3 00 200 @ 11. The balance per stock card/property cards should always reconcile with the ledger cards of the accounting unit. an inventory control account is maintained in the General Ledger on a current basis. The Local Treasurer shall certify as to cash availability in the purchase request. (e) Approval of Requisitions . and furnishing of necessary repair parts or other supplies as part of the services performed. or the municipal treasurer.00 0 6.39 (On Jan. If supplies are available. 1 Jan 12 Jan. redecorating. Subsequent requisition from stock shall be made by the head of office or department needing the supplies. Illustrative calculation of inventory using this method is as follows: Ball pen Reference Beg.33 100 @ 11. Under the perpetual inventory method.for supplies not carried in stock.41 7 Sec. The Chief Accountant shall maintain the perpetual inventory records comprising of Supplies Ledger Cards (SLC) for each commodity/stock. RIS No. regardless of whether or not they are consumed within the accounting period.3 3 5.Any order for supplies shall be filled by the provincial general services officer. This is a method of calculating cost of inventory on the basis of weighted average on the date of issue. 12. cleaning.20 0 200 @11. as the case maybe shall likewise maintain stock cards and property cards for supplies. Delivery 33 . Then on Jan. the Office of the General Services Officer (GSO) or the Municipal Treasurer. the city general services officer. shall be recorded as inventory following the perpetual inventory method. the RIS shall be prepared and submitted to the GSO/Local Treasurer for the issuance of supplies. The General Services Officer or the Municipal Treasurer. 26 Jan. as the case maybe. Sec. janitorial. except in case of requisition for supplies to be carried in stock which shall be approved by the local chief concerned. for any office or department of the LGU concerned only upon written requisition. Non-personal services are proper charges to maintenance and operating expenses of the LGU.43 5 2. Such ledger cards shall contain the details of the property. security and related services. the peso balance. – The moving average method of costing shall be used for costing inventories. hauling. – Purchase of supplies and materials for stock. Requisition Procedures.80 0 1. Balance per actual inventory Delivery Receipt/ Invoice No. 115. The Chief Accountant shall compute the inventory cost monthly using the method. A Supplies Availability Inquiry (SAI) shall be used to inquire as to availability of supplies needed from the Office of the Chief Accountant.800 less P5.At the beginning of the year. the total cost. (d) Certification on Allotment and Obligation Slip (ALOBS) .21 8 11. Regular purchases shall be coursed thru the inventory account and issuances thereof shall be recorded as they take place. Examples are contractual services like trucking.33 was found by dividing P6.Requisitions shall be accomplished using the following forms: (1) and (2) Requisition Issue Slip (RIS) . RIS No. Property. Date Jan. They should also reconcile with other property records like Acknowledgement Receipt for Equipment (ARE).135 represented the previous balance P6. (b) Forms to be used . 300 400 @ 12 4.800. Other Animals and Breeding Stocks Ledger Card (WOABSLC) for each type of livestock. and work animals in their custody to account for the receipt and disposition of the same. by 600. the number of units at hand. plant and equipment and livestock account in the inventory control account in the general ledger. If the supplies needed are not available from stock. – (a) Requirement of Requisition . In addition. Perpetual Inventory Method.66 5 Received Issued Balance 200 @ P10 600 @ 11. The head of office or department needing the supplies shall certify as to their necessity for official use and shall specify the project or activity where the supplies or property are to be used.
Plant and Equipment Ledger Cards for each category of assets. Prepare ALOBS covering the requisition under the PR. Inventory Process. Prepare Disbursement Voucher (DV). – The following is the general process to be followed in the control of inventory: PROCESS a. Record delivered items in the stock/property cards. as the case maybe. Property Unit/LGU Inspector h. Process DV and follow disbursement process. Acceptance and Inspection of Purchases. PROCESS approved annual procurement program. Plant and Equipment Ledger Card/Work. shall consolidate weekly the RIS for which supplies and materials were issued using the Summary of Supplies and Materials Issued (SSMI). – Immediately after the LGU has performed all the required procedures adopting a particular mode of procurement. Sec. and the Local Chief Executive and the Local Treasurer. PERSON / UNIT RESPONSIBLE Office of the GSO or the Municipal Treasurer or the office authorized to prepare the same. prepare Acceptance and Inspection Report (AIR) and signs acceptance portion. Approve Purchase Order. Sec. The Budget Officer and the Chief Accountant. d. 118. g. plant and equipment. Thereafter. Property. as the case maybe. The AIR and other supporting documents shall be forwarded to the Chief Accountant for the preparation of the DV and recording of deliveries in the appropriate ledger cards. Acceptance and inspection shall be made using the Acceptance and Inspection Report (AIR). and signs inspection portion of the AIR. Deliveries of supplies or property shall be immediately recorded in the property records on the basis of the AIR and other supporting documents. a purchase/letter order or contract shall be issued. and Real Property Ledger Cards for land. The purchase order or contract shall be released only to. 120. Based on the SSMI. b. Inspect items. for the ALOBS. 117. The date when the purchase/letter order was received by the supplier or contractor shall be indicated clearly. Sec. a JEV shall be prepared to record the expenditures using appropriate expenditure accounts. on the basis of the AIR. Property Records to be Maintained. f. the Chief Accountant shall reconcile the JEV with the appropriate ledger cards. Recording of Deliveries of Supplies or Property in the Books of Accounts. Sec. – The Chief Accountant shall maintain Supplies Ledger Cards per stock number. Receive delivered items. 121. 119. the awardee or his duly authorized representative. sign box A and forward the same with the delivery receipt/invoice/ appropriate documents to Accounting Unit. for the PR. Reporting on Issuance of Supplies/materials. who shall compute cost of supplies issued and ending inventory using the moving average method. Upon receipt of the AIR and other supporting documents. Prepare JEV. Inspection of purchases shall be made by the authorized inspector/s for conformity with specification in the order. and signed for by.Sec. i. Issuance of Purchase Orders or Contract. e. Reconcile JEV with the entries in the ledger cards recorded on the basis of GSO/Local Treasurer Accounting Unit 34 . – The General Services Officer or the Local Treasurer. at the beginning of the year and of each subsequent quarters. – Deliveries of items purchased by the local government units shall be accepted first by the general services officer or municipal treasurer as the case maybe before inspection. the Chief Accountant shall record the deliveries in the appropriate ledger cards. GSO/Local Treasurer Local Chief Executive GSO/Local Treasurer c. Other Animals and Breeding Stocks Ledger Card. shall number each type of supplies and maintain Stock Cards per stock number. Approve ALOBS and the PR. He shall likewise maintain Property Cards per category of property. The SSMI together with the original copy of the RIS shall be submitted to the Chief Accountant. – The General Services Officer or the Local Treasurer. Prepare Purchase Request (PR) for supplies and materials needed for the quarter based on the PERSON / UNIT RESPONSIBLE Office of the General Services Officer (GSO) or the Municipal Treasurer as the case maybe. Prepare Purchase Order. 122. Sec. Upon completion of the disbursement process pertaining thereto the Chief Accountant shall prepare the JEV taking up the in the books the procurement made. Record delivered items in Supply Ledger Card/Property.
Disposal of Supplies or Property. – The following are the pro-forma accounting entries for supplies or property: j. Plant and Equipment (RPCPPE). advise Requisitioning Unit Accounting Unit Particulars Account Title Acct .the AIR.2 Office Supplies - (Enter obligation in 35 . Receipts of Issuance. k. 124. – The local chief executive shall require periodic physical inventory of supplies or property. Prepare Requisition and Issue Slip (RIS) and forward to Property /Supply Unit. Physical count of inventory items by type shall be conducted semestrally and reported in the Report of the Physical Count of Inventories (RPCI). Requisitioning Unit GSO/Local Treasurer n. For transfer of equipment. The Waste Materials Report (WMR) and the Inventory and Inspection Report of Unserviceable Property (IIRUP) shall be used . o. Sec. Sec. 123. – All issuances of supplies or property shall be properly receipted using the forms prescribed under applicable rules and regulations on supply and property management in local government units. Pro–Forma Accounting Entries. if procurement is on credit Accounts Payable Payment of Withholding Taxes Invoice Payable Cash in Bank – LCCA Spare Parts Inventory Withholding Taxes Payable Cash in Bank – LCCA Motor Vehicles Maintenance Spare Parts Inventory 155 401 100 100 401 410 110 155 410 110 878 155 100 80 100 80 50 20 20 Accounting Unit If Procurement is on Cash Sec. Prepare JEV on the basis of SSMI. . Consolidate RIS for which supplies and materials were issued and prepare the Summary of Supplies and Materials Issued (SSMI) and forward to Accounting Unit. 125. 126. Inventory of Supplies or Property. GSO/Local Treasurer 1. Prepare Stock Availability Inquiry (SAI) and forward to Accounting Unit.P100) PR for spare parts Spare Parts Inventory Record delivery of Accounts Payable items and charge invoice. Cod e Debit Credit l. PROCESS PERSON / UNIT RESPONSIBLE concerned not later than July 31 and January 31 of each year for the first and second semesters. This shall be submitted to the Auditor concerned not later than January 31 of each year. 1. Sec. plant. requisitioning unit. and equipment by type shall be made annually and reported on the Report on the Physical Count of Property. Release supplies/equipment and record issuance in the stock cards/property cards. respectively.Disposal procedures shall be in accordance with applicable rules and regulations on supply and property management in local government units.1 Spare parts (enter Obligation in Issuance of the RAAOMO. Supplies and Materials 1. This shall be submitted to the Auditor 50 Spare parts worth P50 used for repairs of motor vehicles. the Acknowledgement Receipt for Equipment (ARE) shall however be used. Physical count of property. and record withdrawals in Supply Ledger Cards (SLC). Verify records. m.
000) Furniture and Fixtures Accounts Payable Accounts Payable Withholding Taxes Payable Cash in Bank – LCCA 224 401 401 410 110 20.000 18. Record delivery of items and charge invoice.000) Office Equipment Accounts Payable Accounts Payable Withholding Taxes Payable Cash in Bank – LCCA 222 401 401 410 110 20.000) Security and Janitorial 858 10.2 20 Withdrawal of Office Supplies for office use.000 20.000 18.000 Record charge invoice and Delivery of item. Cod e Debit Credit 149 401 100 100 (Enter obligation in RAAOCO-P20.000 2. Non-Personal Services 3.000 20.0 00 Accounts Payable Withholding Taxes Payable Cash in Bank – LCCA 401 410 110 100 20 80 20.3 Accountable Forms Issuance Issuance of PR for Furniture and Fixture P20. Equipment 36 . Payment of Charge Invoice Account Title the RAAOMO-P100) Office Supplies Inventory Accounts Payable Acct .00) Accountable Forms Inventory Withholding Taxes Payable Cash in Bank – LCCA Accountable Forms Expenses Accountable Forms Inventory 148 410 110 848 148 100 100 100 20 80 3. Payment of delivered Equipment Account Title Acct . if procurement is on credit.Particulars Issuance of PR for office supplies P100.000 al of supplies Withdraw office (Enter obligation in the RAAOMOP120.000 20.000 2.000 of PR for accountable forms Procurement on a cash basis (Enter obligation in the RAAOMO – P100.000 Record Charge Invoice and delivery of item Payment of delivered furniture and fixture (Enter Obligation in RAAOCO-P20.000 If procurement is on cash basis Office Supplies Inventory Withholding Taxes Payable Cash in Bank – LCCA Office Supplies Expenses Office Supplies Inventory 149 410 110 849 149 100 80 100 100 2. 1.1 Security Services Issuance of contract for security services P120. Cod e Debit Credit Particulars 2.000 2.1 Office Equipment Issuance of PR for Office Equipment -P20.
000 Payment of monthly billing 3.2 Plumbing Services Signing of contract for Plumbing Services – P120.P10.Particulars Receipt of monthly Billing.000 1.000 10.000 1.000 37 .000 Credit 10. Cod e 401 401 410 110 Debit 10.000) General Services Accounts Payable Accounts Payable Withholding Taxes Payable Cash in Bank – LCCA 857 401 401 410 110 10.000 9.000 Receipt of monthly billing – P10.000 9.000 (Enter obligation in the RAAOMOP120.000 Payment of Monthly Billing Account Title Services Accounts Payable Accounts Payable Withholding Taxes Payable Cash in Bank – LCCA Acct .000 10.
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