Annex N

ILLUSTRATIVE ENTRIES
TRUST RECEIPTS DEPOSITED WITH AGDB

AGENCY BOOKS
Transactions Account Account
Title Code Debit Credit

ASSUMPTION: COLLECTION OF PROCESSING FEES AUTHORIZED AS SPECIAL ACCOUNT

1) Collections of following: Cash - Collecting Officers 10101010 500,000

Donations for calamity victims 500,000 Trust Liabilities - Disaster Risk Reduction
and Management Fund 20401020 500,000
500,000
To take up collection of donations
for calamity victims

2) Deposit of collections to the Cash in Bank - Local Currency,

Authorized Government Depository Bank 500,000 Current Account 10102020 500,000
Cash - Collecting Officers 10101010 500,000

To record remittance of collections

to the BTr

3) Purchase of the following:

Welfare Goods 290,000 Welfare Goods for Distribution 10402020 290,000
Disaster Response and Rescue Disaster Response and Rescue Equipment 50209040 200,000
Equipment (April 5, 20X5) 200,000 Due to BIR 20201010 26,250
Total 490,000 Cash in Bank - Local Currency,
Less: Withholding tax 26,250 Current Account 10102020 463,750
1% withholding tax on income 4,375
5% withholding of final tax (VAT) 21,875
Net Amount Paid 463,750 To record issuance of check.

4) Remittance of Taxes thru TRA Due to BIR 20201010 26,250

Cash in Bank - Local Currency,
Current Account 10102020 26,250

5) Distribution of welfare goods 275,500 Welfare Goods Expenses 50203060 275,500

Welfare Goods for Distribution 10402020 275,500

6) Recording of depreciation (9 months) Depreciation - Machinery and Equipment 50501050 28,500

Accumulated Depreciation - Disaster
Assume that Estimated Life is 5 years Response and Equipment 10605091 28,500
Depreciation for 9 months =
(200-000 - (20000,000x 5%) / 5 x 9/12) 28,500

7) Adjustment for expenses chargeable to Trust Liabilities - Disaster Risk Reduction

liability (Due to NGA) and Management Fund 20401020 304,000
Welfare Goods Expenses 50203060 275,500
Depreciation - Machinery and Equipment 50501050 28,500

PRE-CLOSING TRIAL BALANCE AGENCY BOOKS

Cash in Bank - Local Currency,

Current Account 10102020 10,000
Welfare Goods for Distribution 10402020 14,500
Disaster Response and Rescue Equipment 50209040 200,000
Accumulated Depreciation - Disaster
Response and Equipment 28,500
Trust Liabilities - Disaster Risk Reduction
and Management Fund 20401020 196,000
Total 224,500 224,500

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