You are on page 1of 14

Sec. 36. Proforma Accounting Entries.

The following are pro-forma accounting entries for income,


collection and deposit:

Particulars

Account Title

Acct.
Code

Debit

Credit

INCOME
1. Real Property Tax Basic
A. Books of the
Municipality
a. Setting-up of RPT
Receivable
RPT = P1,000
RPT Sharing:
Municipal - 40%
Province - 35%
Barangay - 25%

Real Property Tax


Receivable
Deferred Real
Property Tax Income

b. Receipt of
Payment

Cash in Treasury
Real Property Tax
Receivable

1,000
1,000

100
100

c. Distribution of
Collection
RPT Sharing:
Municipal - 40%
Province - 35%
Barangay - 25%

Deferred Real Property


Tax Income
Real Property Tax
Due to LGUs

d. Deposit of Collections

Cash in Bank LCCA


Cash in Treasury

100

e. Remittance of Share
(Province)

Due to LGUs
Cash in Bank LCCA

35

f. Remittance of Share
(Barangay)

Due to LGUs
Cash in Bank LCCA

25

a. Upon receipt of the


Summary of the JEV
from the Municipal
Accountant

Due from LGUs


Real Property Tax

35

b. Upon receipt of share

Cash in Bank LCCA


Due from LGUs

35

B.

100
40
60

100
35
25

Books of the
Province
35

35

2. Operating and Service Income


a. Receipt of Income

Cash in Treasury
Receipts from Markets
Garbage Fees

100
90
10

Particulars
b. Deposit of Collections

Account Title
Cash in Bank LCCA
Cash in Treasury

Acct.
Code

Debit
100

Credit
100

3. Share from Internal Revenue Collections


a. Receipt of Notice of
Funding Check Issued
from the DBM and
credit memo from
the bank for Share
from Internal Revenue
Collections

Cash in Bank LCCA


Share from Internal
Revenue Collections

1,000

b. Receipt of Notice of
Funding Check Issued
from the DBM for
Share from Internal
Revenue Collections

Due from NGAs


Share from Internal
Revenue Collections

1,000

1,000

1,000

4. Grants and Donations


a. 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

100

b. Receipt of grants and


donations in kind Motor Vehicle:
Original Cost P1,000
Less: Acc. Depn. 200
Book Value
P 800

Motor Vehicles
Invested Equity

800

(At the end of Year)


Invested Equity
Government Equity

100

800
800
800

5. BORROWINGS
a. Receipt of borrowed
funds from bank Principal - P1,000
Bank Charges - 10
Interest Expense- 12

Cash in Bank LCCA


Loans Payable
Current, Domestic
Bank Charges
Interest Expenses
Cash in Bank LCCA

1,000

b. Receipt of borrowed
funds from other
agency Principal P1,000
Interest Expense - 6

Cash in Treasury
Loans Payable
Current, domestic
Interest Expenses
Cash in Bank LCCA

1,000

c. Payment of loan
amortization

Loans Payable
Current, Domestic
Cash in Bank - LCCA

6. SUBSIDIES

1,000
10
12
22

1,000
6
6
200
200

Particulars

Account Title

Acct.
Code

Debit

Credit

a. 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

500
500

SPECIAL EDUCATION FUND BOOKS


Receipt of subsidy funds
from Other funds

Cash in Treasury
Subsidy from Other
Funds

500
500

b. 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

500
500

BOOKS OF SPECIAL ACCOUNT (OPERATION OF PUBLIC MARKET)


Receipt of subsidy from
General Fund Proper

Cash in Bank LCCA


Subsidy from Special
Accounts

110

500

606

500

7. REFUND OF CASH ADVANCES


a. Cash Advance by an Officer for Local Travel
a. To take up the cash
advance
b. To take up refund of
cash advance

Due from Officers &


Employees
Cash in Bank LCCA
Cash in Treasury
Due from Officers &
Employees

10
10
10
10

b. Cash Advance by a Disbursing Officer for Salaries and Wages


a. To take up the cash
advance

Cash Disbursing
Officers
Cash in Bank LCCA

10
10

Particulars
b. To take up refund of
cash advance

Account Title
Cash in Treasury
Cash Disbursing
Officers

Acct.
Code

Debit
10

Credit

10

8. RECEIPT OF CASH BONDS


a. To take up receipt of
performance bond in
cash

Cash in Treasury
Performance/ Bidders/
Bail Bonds Payable

50

b. To take up deposit of
performance bond

Cash in Bank LCCA


Cash in Treasury

50

c. To take up refund of
performance bond

Performance/ Bidders/
Bail Bonds Payable
Cash in Bank LCCA

50
50
50
50

Sec. 52. Pro-forma Accounting Entries. Pro-forma accounting entries for disbursement
transactions are shown below:
Particulars

Account Title

Acct.
Code

Debit

Credit

1. Payment through Cash Advances


a. Cash advance for personal services
Enter obligation in RAAOPS for P18,000 Salaries and Wages, P5,000
Additional Compensation, and P3,000 Personnel Economic Relief
Allowance (PERA).
1. Grant of cash advance
for payroll

2. Liquidation of cash
advance for payroll

Cash Disbursing
Officers
Cash in Bank LCCA
Salaries and Wages
Regular Pay
PERA
Additional
Compensation
Withholding Taxes
Payable
GSIS Payable
PAG-IBIG Payable
Cash Disbursing
Officers

107
110

21,000

801
804

18,000
3,000

805

5,000

21,000

410
411
412

2,000
1,500
1,500

107

21,000

Enter obligation in RAAOPS for P1,500 Life and Retirement Insurance


Contributions and P1,500 PAG-IBIG Contributions.
3. Government share for
life and retirement
insurance and PAGIBIG Contributions

Life and Retirement


Insurance
Contributions
PAG-IBIG

817

1,500

Particulars

Account Title
Contributions
GSIS Payable
PAG-IBIG Payable

Acct.
Code

818
411
412

Debit
1,500

Credit
1,500
1,500

b. Petty Cash Fund


For establishment of fund, Enter obligation in RAAOMO as Other Expenses for
P6,000
1. Release of cash
advance for petty
cash fund
miscellaneous
expenses

Petty Cash Fund


Cash in Bank LCCA

105
110

6,000
6,000

Enter obligation in RAAOMO for Office Supplies P2,500, Travelling


Expenses P500, Office Equipment Maintenance P1,000 and Other
Expenses of P800.
2. Replenishment of
petty cash fund
during the year

Traveling Expenses
Local
Office Supplies
Expenses
Office Equipment
Maintenance
Other Expenses
Cash in Bank LCCA

831

500

849

2,500

882
950
110

1,000
800
4,800

Enter obligation in RAAOMO for Office Supplies P4,000 and Traveling


Expenses of P1,000.
3. Liquidation at year
end

Traveling Expenses
Local
Office Supplies
Expenses
Petty Cash Fund

831

1,000

849
105

4,000
5,000

Cancel RAAOMO for setting up of petty cash fund at the start of the year
and refund for a total of P6,000.
4. Return of unused
Petty Cash Fund.

Cash in Treasury
Petty Cash Fund

101
105

1,000

Due from Officers and


Employees
Cash in Bank LCCA

128
110

1,000

Traveling Expenses
Local

831

900

1,000

c. Cash advance for travel


Enter obligation in RAAOMO for Travel of P1,000
1. Grant of cash advance

2. Liquidation of cash
advance during the

1,000

Particulars
current year
(assuming only P900
was utilized and P100
was refunded)

Account Title
Due from Officers and
Employees

Acct.
Code

Debit

128

Credit
900

Adjust RAAOMO for refund of cash advance of P100


3. For amount refunded
where official receipt
was issued

Cash in Bank LCCA


Due from Officers and
Employees

110

100

128

100

2. Payment by Check
a. Maintenance and Other Operating Expenses

Enter obligation in RAAOMO for rent P3,000


1. Payment of rent

Rent Expense
Cash in Bank LCCA

841
110

3,000
3,000

Enter obligation in RAAOMO for electricity of P1,500 and


telephone/internet of P2,000
2. Payment of utilities
(MERALCO and
PLDT)

Electricity
Telephone/Telegraph
and Internet
Cash in Bank LCCA

835

1,500

837
110

2,000
3,500

Enter obligation in RAAOMO for training and seminar expenses of P1,000


3. Payment of seminar
fee

Training and Seminar


Expenses
Cash in Bank LCCA

833
110

1,000
1,000

b. Financial Expenses

Enter obligation in RAAOFE for bank charges of P300


1. Bank charges upon
receipt of bank
statement

Bank Charges
Cash in Bank LCCA

951
110

300
300

Enter obligation in RAAOFE for interest expense of P400


2. Interest Expense

Interest Expenses

952

400

Particulars

Account Title
Cash in Bank LCCA

Acct.
Code

Debit

110

Credit
400

c. Office Equipment Enter obligation in RAAOCO for P6,000 for purchase of


equipment
1. Issuance of PO to
dealer
2. Receipt of office
equipment

No entry
Office Equipment
Cash in Bank LCCA

222
110

6,000
6,000

d. Construction of Roads by Contract Enter obligation in RAAOCO for P800,000


for construction of road.
1. Payment of first
Construction in
billing for 50%
Progress Roads,
accomplishment
Highways and
Bridges
232
400,000
Withholding Taxes
Payable
410
40,000
Cash in Bank LCCA
110
360,000
2. Payment of second
billing 100%
accomplishment

3. Remittance of taxes
withheld

Construction in
Progress Roads,
Highways and
Bridges
Withholding Taxes
Payable
Cash in Bank LCCA
Withholding Taxes
Payable
Cash in Bank LCCA

232

400,000

410
110

40,000
360,000

410
110

80,000

Public Infrastructure
Construction in
Progress Roads,
Highways and
Bridges

243

800,000

Government Equity
Public Infrastructures

501
243

80,000

If funded from regular agency income


4. To take up roads
completed

5. To transfer completed
roads to Registry of
Public Infra- structures
at the end of the year

232

800,000
800,000
800,000

Note: Using the JEV for the above transactions, the public infrastructures shall
be recorded in the Registry of Public Infrastructures.

If funded from a loan


6 To record completed
roads

Public Infrastructures
Construction in
Progress Roads,

243

800,000

Particulars

At year end,upon full


payment of laon

Account Title
Highways and
Bridges
Government Equity
Public Infrastructures

Acct.
Code

Debit

232
501
243

Credit
800,000

800,000
800,000

e. General Repair/Construction of Building by Administration


1. Approval of the
project P1M

No entry

Enter obligation in RAAOCO for P600,000 for construction


materials
2. Issue PO for building
materials: Lumber,
nails, cement, sand
and gravel, paints,
etc. = P600,000
3. Payment for
construction materials
received

4. Issuance of materials
P590,000

No Entry

Construction Materials
Inventory
Withholding Taxes
Payable
Cash in Bank LCCA
Construction in
Progress Agency
Assets
Construction Materials
Inventory

156

600,000

410
110

230

60,000
540,000

590,000

156

590,000

Enter obligation in RAAOCO for P380,000 for labor


5. Cash advance
granted to Disbursing
Officer for payroll

Cash Disbursing
Officers
Cash in Bank LCCA

6. Liquidation by
Disbursing Officer of
paid payroll

Construction in
Progress Agency
Assets
Withholding Taxes
Payable
Cash Disbursing
Officers

7. Remittance of
withholding tax
8. Accomplishment
Report approved by

107
110

350,000

230

380,000

350,000

410

30,000

107

350,000

Withholding Taxes
Payable
Cash in Bank LCCA

410

Buildings
Construction in

204

30,000

110

30,000
970,000

Particulars
the LCE

Account Title
Progress Agency
Assets

Acct.
Code

Debit

Credit

230

970,000

f. Acquisition of Land

Enter obligation in RAAOCO for P2million for purchase of land


1. Payment made for
land purchased

2. Remittance of
withholding tax

Land
Withholding Taxes
Payable
Cash in Bank LCCA

Withholding taxes
Payable
Cash in Bank LCCA

201

2M

410
110

410
110

200,000
1.8M

200,000
200,000

g. Land and Building


Enter obligation in RAAOCO for P600,000 for land and P400,000 for
building
1. Payment of the land
and building
(assessed value of
land is P600,000) for
P1,000,000

Land
Building
Withholding Taxes
Payable
Cash in Bank LCCA

2. Remittance of
withholding tax

Withholding Taxes
Payable
Cash in Bank LCCA

201
204
410

600,000
400,000
100,000

110
410
110

900,000
100,000
100,000

h. Purchase of Inventories
Enter obligation in RAAOMO for purchase of P2,500 worth of spare arts
1. Payment of delivered
spare parts

Spare Parts Inventory


Withholding Taxes
Payable
Cash in Bank LCCA

155

2,500

410
110

250
2,250

i. 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

3,000
300
2,700

Particulars

Account Title

Acct.
Code

Debit

Credit

j. Fund Transfers

Enter obligation in RAAOMO for subsidy to LGU XYZ


1. Cash assistance to
LGU XYZ

Subsidy to Local
Government Units
Cash in Bank LCCA

895
110

30,000
30,000

k. Enter obligation in RAAOMO for subsidy to SEF


1. Cash transfer to SEF
as subsidy

Subsidy to Other
Funds
Cash in Bank LCCA

897
110

10,000
10,000

l. Enter obligation in RAAOMO for grants and donation to Trust Fund


1. Cash transfer to Trust
Fund as counterpart
LGU funds.

Grants and Donations


Cash in Bank LCCA

889
110

500,000
500,000

Sec. 61. Pro-forma Accounting Entries. The following the are pro-forma accounting entries
for miscellaneous transactions:
Particulars

Account Title

Acct.
Code

Debit

Credit

1. Cash Shortage
a. Cash shortage of the of the Disbursing Officer
To take up cash
shortage

Due from Officers and


Employees
Cash Disbursing
Officers

128

50

107

50

b. Cash Shortage of the Treasurer


To take up cash
shortage

Due from Officers and


Employees
Cash in Treasury

128
101

50

2. Grant of Relief from Accountability for Loss of Government Funds

50

Particulars
To record the loss of
fund by a Disbursing
Officer (allegedly thru
theft ) = P50

Account Title
Due from Officers and
Employees
Cash Disbursing
Officers

To take up relief from


accountability

Loss of Assets (current


year) or Prior
Years adjustments
(prior years)
Due from Officers and
Employees

Acct.
Code

Debit

128

Credit

50

107

948

50

50

128

50

3. 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

Cash in Treasury
Other Specific Income
of LGU

101

50

128

50

4. Cash Overage
To take up cash
overage discovered
during cash
examination

50

792

50

5. Dishonored Checks

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

Receipt of
refund/settlement

Real Property Tax


Receivable
Deferred Real
Property Tax
Income

124

50

448

50

Due to LGUs
Real Property Tax
Income
Cash in Bank LCCA

431

30

711
110

20

Cash in Treasury
Real Property Tax
Receivable

101

50

124

6. Lost/Destroyed/Stale/Obsolete Checks

Check issued in the current/prior year for replacement

50

50

Particulars
Check cancellation
Replacement

Account Title
Cash in Bank LCCA
Accounts Payable
Accounts Payable
Cash in Bank LCCA

Acct.
Code

110
401
401
110

Debit
50

Credit
50

50
50

7. Disallowances and Charges


a. Recording of disallowance for current years transaction
When the disallowance
becomes final and
executory
Overpayment of Office
Supplies
Amount paid P100
Should be
- 90
Difference
- 10
Settlement of
Disallowance

Receivables
Disallowances/
Charges
Office Supplies
Expense

Cash in Treasury
Receivables
Disallowances/
Charges

138

10

849

101

10

10

138

10

b. Recording of disallowance for prior years transaction


When the disallowance
becomes final and
executory

Settlement of
disallowance

Receivables
Disallowances/
Charges
Prior Years
Adjustments
Cash in Treasury
Receivables
Disallowances/
Charges

138

10

533
101

10
10

138

10

c. Settlement of Charges
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 - P 100
Should be
- 110
Charge
- 10

Receivables
Disallowances/
Charges
Franchise Tax

138
724

10
10

Particulars
Settlement

Account Title
Cash in Treasury
Receivables
Disallowances/
Charges

Acct.
Code

101

Debit

Credit

10

138

10

c.2 Recording of charges which collection were made in the prior year
When the charge
becomes final and
executory

Settlement

Receivables
Disallowances/
Charges
Prior Years
Adjustments
Cash in Treasury
Receivables
Disallowances/
Charges

138

10

533
101

10
10

138

10

8. Refund of Overpayment
a. Overpayment taken up as receivable
To record overpayment
of salaries and wages
(When overpayment is
ascertained)

Due from Officers and


Employees
Salaries and Wages
Regular Pay

To record refund of
overpayment

Cash in Treasury
Due from Officers and
Employees

128

10

801
101

10
10

128

10

b. Refund of overpayment not taken up as receivable


Refund of
overpayment of
Salaries and Wages
Regular Pay during the
current year

Cash in Treasury
Salaries and Wages
Regular Pay

101

To take up refund of
over payment in the
ensuing year

Cash in Treasury
Prior Years
Adjustments

101

Closing Entries

10

801

533

10

10
10

Acct.

Particulars

1. To close the Revenue


accounts to the
Income and Expense
Summary account.

Account Title

Real Property Tax


Share from Internal
Revenue Collections

Code

Debit

711

100

746

10,000

723

50

761

20

Credit

Business Taxes &


Licenses
Registration Fees
Income and Expense
Summary
532

2.

2.

To close the
Income and
Expense Summary
to Retained
Operating Surplus
account.

To close the
Retained
Operating
Surplus to
Government
Equity
account.

10,170

Income and Expense


Summary
Retained Operating
Surplus

Retained Operating
Surplus
Government Equity

532

5,670

534

534
501

5,670

5,670
5,670