Annex K

ILLUSTRATIVE ENTRIES
SPECIAL ACCOUNTS - FOREIGN ASSISTED / FOREIGN GRANTS FUND
AGENCY BOOKS BTr BOOKS
Transactions Account Account Account Account
Title Code Debit Credit Title Code Debit Credit

1) Receipt of grants and donation from foreign Cash in Bank - Foreign

entities/institutions deposited to the Currency, Savings Account 10103030 600,000
Bureau of the Treasury - P600,000 Income from Grants and Donations
in Cash 40402010 600,000
To recognize receipt of grants and donation
from various donors through AGDBs/GSBs

2) Receipt of Approved Special

Budget No entry
MOOE 200,000
Capital Outlays 400,000
600,000

3) Receipt of SARO from the DBM 600,000 Posting in the appropriate RAOD

4) Incurrence of obligation Posting of ORS in the appropriate RAOD

MOOE 200,000
Capital Outlays 400,000
600,000

5) Receipt of Notice of Cash Cash - Modified Disbursement System

Allocation from the DBM (MDS), Special Account 10104050 600,000
amounting to P600,000 Subsidy from National Government 40301010 600,000
To take up receipt of NCA for
Special Account.

6) Receipt of delivered Office Equipment Office Equipment 10605020 400,000

Accounts Payable 20101010 400,000
To recognize delivery of Office
Equipment.

7) Payments of expenses and Travelling Expenses - Local 50201010 30,000

accounts payable Training and Scholarship Expenses 50202020 100,000
Transportation and Delivery Expenses 50209040 20,000
Cash - Modified Disbursement
System (MDS), Special Account 10104050 150,000
To recognize issuance of MDS checks.

447
 Annex K

AGENCY BOOKS BTr BOOKS

Transactions Account Account Account Account
Title Code Debit Credit Title Code Debit Credit
Accounts Payable 20101010 400,000
Cash - Modified Disbursement
System (MDS), Special Account 10104050 400,000
To recognize payment of accounts payable.

8) Responding entry of the Bureau of the Cash in Bank - Local

Treasury for negotiated checks Currency, Savings Account 10102030 550,000
Cash in Bank - Foreign
Currency, Savings Account 10103030 550,000

Subsidy to NGAs 50214010 550,000

Cash in Bank - Local
Currency, Savings Account 10102030 550,000
To recognize negotiated MDS checks.

9) Adjustment for Unused/lapsed NCA Subsidy from National Government 40301010 50,000
Cash - Modified Disbursement System
(MDS), Special Account 10104050 50,000
To close lapsed/unused NCA.

PRE-CLOSING TRIAL BALANCE AGENCY BOOKS BTr BOOKS

Office Equipment 10605020 400,000 Cash in Bank - Foreign

Subsidy from National Government 40301010 550,000 Currency, Savings Account 10103030 50,000
Travelling Expenses - Local 50201010 30,000 Income from Grants and Donations
Training and Scholarship Expenses 50202020 100,000 in Cash 40402010 600,000
Transportation and Delivery Expenses 50209040 20,000 Subsidy to NGAs 50214010 550,000
Total 550,000 550,000 Total 600,000 600,000

9) Closing Entries for:

a. Income accounts Income from Grants and Donations
in Cash 40402010 600,000
Revenue and Expense Summary 30301010 600,000
To close income accounts to Revenue
and Expense Summary Account.

b. Expense accounts Revenue and Expense Summary 30301010 150,000

Travelling Expenses - Local 50201010 30,000
Training and Scholarship Expenses 50202020 150,000
Transportation and Delivery Expenses 50209040 20,000
To close expense accounts to Revenue
and Expense Summary Account.

448
 Annex K

AGENCY BOOKS BTr BOOKS

Transactions Account Account Account Account
Title Code Debit Credit Title Code Debit Credit
c. Subsidy Accounts Subsidy from National Government 40301010 550,000 Revenue and Expense Summary 30301010 550,000
Revenue and Expense Summary 30301010 550,000 Subsidy to NGAs 50214010 550,000
To close subsidy account

d. Revenue and Expense Summary Revenue and Expense Summary 30301010 400,000 Revenue and Expense Summary 30301010 50,000
Accumulated Surplus/(Deficit) 30101010 400,000 Accumulated Surplus/(Deficit) 30101010 50,000
To close Revenue and Expense Summary To close Revenue and Expense Summary
Account to Accumulated Surplus/(Deficit) Account to Accumulated Surplus/(Deficit)

POST-CLOSING TRIAL BALANCE AGENCY BOOKS BTr BOOKS

Debit Credit Debit Credit
Office Equipment 10605020 400,000 Cash in Bank - Foreign
Accumulated Surplus/(Deficit) 30101010 400,000 Currency, Savings Account 10103030 50,000
Accumulated Surplus/(Deficit) 30101010 50,000
Total 400,000 400,000 Total 50,000 50000

449
 Annex C
ILLUSTRATIVE ENTRIES
SPECIAL ACCOUNTS - LOCALLY FUNDED / DOMESTIC GRANTS FUND
AGENCY BOOKS BTr BOOKS
Transactions Account Account Account Account
Title Code Debit Credit Title Code Debit Credit

ASSUMPTION: COLLECTION OF PROCESSING FEES AUTHORIZED AS SPECIAL ACCOUNT

1) Collections of processing fees Cash - Collecting Officers 10101010 650,000

of P650,000 Processing Fees 40201130 650,000

To take up collection of
processing fees.

2) Remittance of collections to the Cash - Treasury/Agency Deposit, Cash in Bank - Local

Bureau of the Treasury - P600,000 Special Account 10104020 650,000 Currency, Savings Account 10102030 650,000
Cash - Collecting Officers 10101010 650,000 Cash - Treasury/Agency Deposit,
Special Account 10104020 650,000
To record remittance of collections
to the BTr To record remittance of collections
by the agency.
3) Receipt of Approved Special
Budget No entry
MOOE 200,000
Capital Outlays 400,000
600,000

4) Incurrence of obligation Posting of ObR in the appropriate RAO

MOOE 200,000
Capital Outlays 400,000
600,000

5) Receipt of Notice of Cash Cash - Modified Disbursement System

Allocation from the DBM (MDS), Special Account 10104050 575,000
amounting to P600,000 Cash - Treasury/Agency Deposit,
Special Account 10104020 575,000
To take up receipt of NCA for
Special Account.

6) Receipt of delivered Office Equipment Office Equipment 10605020 400,000

Accounts Payable 20101010 400,000
To record delivery of Office
Equipment.

60
 Annex C
AGENCY BOOKS BTr BOOKS
Transactions Account Account Account Account
Title Code Debit Credit Title Code Debit Credit
7) Payments of expenses Travelling Expenses - Local 50201010 30,000
Travelling Expenses - Local 30,000 Training and Scholarship Expenses 50202020 100,000
Training and Scholarship Expenses 100,000 Transportation and Delivery Expenses 50209040 20,000
Transportation and Delivery Expenses 20,000 Due to BIR 20201010 6,357
Total 150,000 Cash - Modified Disbursement
Less; Withholding tax on: System (MDS), Special Account 10104050 143,643
Training 6,357
10% withholding tax (income) 1,000 To record issuance of MDS checks.
1% withholding tax on income 893
5% withholding of final tax (VAT) 4,464
Net Amount Paid 143,643

8) Payment of accounts payable Accounts Payable 20101010 400,000

Total 400,000 Due to BIR 20201010 21,429
Less: Withholding tax 21,429 Cash - Modified Disbursement
1% withholding tax on income 3,571 System (MDS), Special Account 10104050 378,571
5% withholding of final tax (VAT) 17,857
Net Amount Paid 378,571 To record payment of accounts payable.

9) Replenishment by the Bureau of the Cash - Treasury/Agency Deposit,

Treasury Special Account 10104020 550,000
Cash in Bank - Local
Currency, Savings Account 10102030 550,000

To record replenishment of
negotiated MDS checks.

10) Remittance of Taxes thru TRA

a. Constructive receipt of NCA Cash - Tax Remittance Advice 10104070 27,786
Cash - Treasury/Agency Deposit,
Special Account 10104020 27,786

b. Remittance of taxes thru TRA Due to BIR 20201010 27,786 Cash - Treasury/Agency Deposit,
Cash - Tax Remittance Advice 10104070 27,786 Special Account 10104020 27,786
Cash - Tax Remittance Advice 10104070 27,786

11) Adjustment for Unused/lapsed NCA Cash - Treasury/Agency Deposit,

Special Account 10104020 52,786
Cash - Modified Disbursement System
(MDS), Special Account 10104050 52,786

To close lapsed/unused NCA.

PRE-CLOSING TRIAL BALANCE AGENCY BOOKS BTr BOOKS

Cash - Treasury/Agency Deposit, Cash in Bank - Local
Special Account 10104020 100,000 Currency, Savings Account 10102030 100,000

61
 Annex C
AGENCY BOOKS BTr BOOKS
Transactions Account Account Account Account
Title Code Debit Credit Title Code Debit Credit
Office Equipment 10605020 400,000 Cash - Tax Remittance Advice 10104070 27,786
Travelling Expenses - Local 50201010 30,000 Cash - Treasury/Agency Deposit,
Training and Scholarship Expenses 50202020 100,000 Special Account 10104020 72,214
Transportation and Delivery Expenses 50209040 20,000
Processing Fees 40201130 650,000
Total 650,000 650,000 Total 100,000 100,000
12) Closing Entries for:

a. Income accounts Processing Fees 40201130 650,000

Revenue and Expense Summary 30301010 650,000

To close income accounts to Revenue

and Expense Summary Account.

b. Expense accounts Revenue and Expense Summary 30301010 150,000

Travelling Expenses - Local 50201010 30,000
Training and Scholarship Expenses 50202020 100,000
Transportation and Delivery Expenses 50209040 20,000

To close expense accounts to Revenue

and Expense Summary Account.

c.Revenue and Expense Summary Revenue and Expense Summary 30301010 500,000
Accumulated Surplus/(Deficit) 30101010 500,000

To close Revenue and Expense Summary

Account to Accumulated Surplus/(Deficit)

f. Cash -TRA Account Cash - Tax Remittance Advice 10104070 27,786

Cash - Treasury/Agency Deposit,
Special Account 10104020 27,786

POST-CLOSING TRIAL BALANCE AGENCY BOOKS BTr BOOKS

Debit Credit Debit Credit
Cash - Treasury/Agency Deposit, Cash in Bank - Local
Special Account 10104020 100,000 Currency, Savings Account 10102030 100,000
Office Equipment 10605020 400,000 Cash - Treasury/Agency Deposit,
Accumulated Surplus/(Deficit) 30101010 500,000 Special Account 10104020 100,000

Total 500,000 500,000 Total 100,000 100,000

CONSOLIDATED POST-CLOSING TRIAL BALANCE

Debit Credit
Cash in Bank - Local
Currency, Savings Account 10102030 100,000
Office Equipment 10605020 400,000
Accumulated Surplus/(Deficit) 30101010 500,000

62
 Annex C
AGENCY BOOKS BTr BOOKS
Transactions Account Account Account Account
Title Code Debit Credit Title Code Debit Credit
Total 500,000 500,000

63