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Section 4 of 2002 NGA-LGU states that 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.

Books of Accounts. The Books of Accounts are as follows:

Journals
Cash Receipts Journal (CRJ)
Cash Disbursements Journal (CDJ)
Check Disbursements Journal (CKDJ)
General Journal (GJ)

Ledgers
General Ledger (GL)
Subsidiary Ledgers, where applicable for:
Cash
Receivables
Inventories
Investments
Property, Plant and Equipment
Liabilities
Income
Expenses

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

The Treasurers/Collectors shall prepare the Report of Collections and Deposits (RCD)
daily and the Report of Accountability for Accountable Forms (RAAF) monthly.

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:

1. Registry of Appropriations, Allotments and Obligations Capital Outlay (RAAOCO)


2. Registry of Appropriations, Allotments and Obligations Maintenance and Other
Operating Expenses (RAAOMO)
3. Registry of Appropriations, Allotments and Obligations Personal Services
(RAAOPS)
4. Registry of Appropriations, Allotments and Obligations Financial Expenses
(RAAOFE).

Accounting for Borrowings and Loans. All borrowings and loans incurred shall be recorded direct to
the appropriate liability accounts.

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
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:

a. Appropriations, Allotments and Obligations


b. Collections and Deposits