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

c. Disbursements –

• By cash

• By check

d. Miscellaneous and Other transactions