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DISBURSEMENTS

Accounting Policies and Guidelines. The NGAS policies in accounting for disbursements are as follows:

1. Disbursements by checks and in cash shall be recorded in the books thru a JEV based on certified Checks Disbursements Register (CkDReg) and Cash Disbursements Register (CDReg) submitted by the BRK to the City/Municipal Accountant on or before the 5th day of the following month; 2. Taxes withheld from interest earned on bank deposits and reported in the bank statement/passbook shall be accounted for as expense and shall be covered by an appropriation; 3. The CDReg and the Petty Cash Fund Register (PCFReg) shall be used as reference in posting the transaction in the SL maintained for the AOs; 4. At year end, expenses for unreplenished PCF reflected in the PCFReg shall be recorded in the books thru a JEV.

Accounting for Disbursements by Checks Pro-forma Accounting Entries


Upon receipt of the CkDReg, the City/Municipal Accountant shall prepare the JEVs to take up the transactions in the barangay books. The pro-forma accounting entries to take up the disbursements by checks are as follows: 1. Disbursements are recapitulated in the CkDReg Account Title Payroll Fund Advances to Officers and Employees Honoraria Traveling Expenses Local Training Expenses Office Supplies Expense Electricity Expense Water Expenses Telephone Expenses, Landline Cash in Bank, LCCA Account Code 106 148 720 751 753 755 767 766 772 111 Dr. xx xx xx xx xx xx xx xx xx xx for , Cr

To record checks issued per certified CkDReg No. 2007. 2. Cash purchase of office equipment Office Equipment Cash in Bank, LCCA Due to BIR 221 111 412 xx

xx xx

To record the purchase of office equipment per CkDReg No. (Check No. dated ) 3. Remittance of taxes withheld on the Bureau of Internal Revenue (BIR) Due to BIR Cash in Bank, LCCA 412 111 xx xx

No.

To record the remittance of taxes withheld to the BIR per CKDReg (Check No. dated )

4. Establishment of the PCF Petty Cash Fund Cash in Bank LCCA 104 111 xx xx dated and

To record the grant of PCF per SB Resolution No. CkDReg No. (Check No. dated ). 5. Replenishment of the PCF Office Supplies Expenses Accountable Forms Expenses Traveling Expenses Local Drugs and Medicines Expenses Military and Police Supplies Exp. Postage and Deliveries Telephone Expenses Mobile Transportation and Delivery Exp. Cash in Bank - LCCA 755 756 751 759 764 771 773 784 111

xx xx xx xx xx xx xx xx xx (Check No.

To record replenishment of PCF per CkDReg No. dated ). 6. Payment of Accounts Payable Accounts Payable Cash in Bank LCCA Due to BIR 401 111 412

xx xx xx (Check No.

dated

To record payment of payable per CkDReg No. )

7. Payment of repairs and maintenance of motor vehicles Repairs & Maintenance Motor 841 xx Vehicles Cash in Bank LCCA 111 xx Due to BIR 412 xx To record payment of repairs and maintenance of motor vehicles per CkDReg No. (Check No. dated ).

8. Other related transactions a. Lost/Spoiled/Stale check for replacement Cash in Bank LCCA 111 xx Accounts Payable or appropriate 401 xx liability account (previously debited) To record the receipt of original lost/spoiled/stale Check No. dated issued in favor of (notice of stoppage of payment issued to the bank) and request for replacement. b. Replacement Check Accounts Payable (or appropriate liability 401 xx acount previously restored) Cash in Bank LCCA 111 xx To record the replacement of Check No. dated reported lost/spoiled/stale per CkDReg No. (Check No. dated ) c. Taxes withheld by the bank (per bank statement) Taxes, Duties and Licenses 891 xx Cash in Bank LCCA 111 xx Cash in Bank LCSA 112 xx Cash In Bank LCTD 113 xx To record taxes withheld by the bank from the interest earned on deposits.

d. Prior Years expenses Prior Years Adjustments 684 xx Cash in Bank LCCA 111 xx To record payment of unrecorded prior years expenses per CkDReg No. (Check No. dated ).

Table 3 Accounting for Disbursements by Checks Narrative Procedures


Area of Responsibility/ Person Responsible Activity Seq A 1 Preparation of the JEV Receives and acknowledges the certified CkDReg together with SCkI, DMs and BnkS from the BRK Forwards the CkDReg together with SCkI, DMs and BnkS to the Barangay Bookkeeper for JEVpreparation Receives the CkDReg together with SCkI, DMs and BnkS. Verifies the footings, correctness of the recording and the recapitulations made. Note 1. In case of errors, the register shall be returned to the BRK for correction. 4 Prepares the JEV to record the disbursements per CkDReg and signs the Prepared by portion of the JEV. Forwards the JEV supported by the CkDReg and other supporting documents to the City/Municipal Accountant for approval. Reviews and approves the JEV and returns it to the Barangay Bookkeeper with the CkDReg and other supporting documents for the recording in the books. Recording of the JEV to the General Journal (GJ) and posting to the General Ledger (GL) and Subsidiary Ledgers (SLs) Receives the duly approved JEV

City/Municipal Accountant

2 Barangay Bookkeeper 3

City/Municipal Accountant

Barangay Bookkeeper

Records the JEV in the GJ kept for specific barangay. Posts the corresponding journal entries in the GLs and SLs. Files the approved JEV and supporting registers.

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ACCOUNTING FOR DISBURSEMENTS BY CHECKS


PROCEDURAL FLOW CHART (Table 3a) City/Municipal Accountant Barangay Bookkeeper

receives and acknowledges

receives and verifies

nNote 1
forwards

CkDReg ee
SCkI DMs BnkS

CkDReg
2 SCkI DMs BnkS

forwards 5

JEV

CkDReg SCkI DMs BnkS CkDReg SCkI DMs BnkS

Reviews and approves

JEV
6 8

JEV
10 files 9

Posts GJ GJ SL

Legend: CkDReg SCkI DMs BnkS JEV GJ GL SL Symbols: -

- Check Disbursements Register - Summary of Checks Issued - Debit memos - Bank Statement - Journal Entry Voucher - General Journal - General Ledger - Subsidiary Ledger

Flow of Documents Records/prepares


Books/Register Document File Process

Note: 1. In case of errors, the register shall be returned to to the BT/BRK for correction.