Barangay Manual

Barangay Accounting
System Manual
For Use by
City/Municipal
Accountants
Objectives of the Manual
1. Prescribes uniform guidelines and

procedures in accounting for barangay
funds and property;
2. Provides new coding and chart of accounts

in accordance with the New Government
Accounting System; and
3. Prescribes accounting records to be
maintained and financial statements to be
rendered.
Financial
Registers Books of Books of Statements
and Basis of Original Final Trial
and
Reports Recording Entry Entry Balance Schedules
Cash Receipts Statement of
and Deposits Pre- Income and
Register and Expenses
G Post
Cash Ls Closing Balance
J
Disbursements TB Sheet
E G
Register
Vs J Statement of
Check Cash Flows
Disbursements S
Register Statement of
Changes in
L
Cash on Hand Government
and in Bank Equity
s
Register Schedule of Accounts
Petty Cash Fund Receivable
Register Schedule of Accounts
Payable
Inspection and
Registries of PI and Schedule of Public
Acceptance
Report RP Infrastructures/Schedule of
Reforestation Projects
Liquidation Report
Recording and Generation of Financial Statements and Reports/Schedules

General Accounting Policies
1. Modified Accrual Accounting

2. Barangay Books of Accounts
3. Bookkeeping Procedures
4. Chart of Accounts
5. Journal Entry Voucher
6. Appropriations and Commitments
7. Financial Expenses
8. Petty Cash Fund
9. Payroll Fund
10. Advances to Officers and Employees
11. Recognition of Liability
12. Purchase/Issuance of Supplies &
Materials
13. Depreciation of PPE
14. Public Infrastructures and Reforestation
Projects
15. Reclassification of Assets

16. Borrowings and Loans
17. Completed Public Infra
18. Trial Balance
19. Financial Statements and Schedules
20. Consolidation of Trial Balance and FS
RECEIPTS and DEPOSITS
Accounting Policies –
1. CRDReg – shows the receipts and deposits
of the barangay. Recording is based on the
SCD and CM.
2. SCD – shall be used to ascertain the
correctness of receipts and deposits recorded
in the CHBReg
3. CHBReg – shall be used in reconciling the
deposits and in the preparation of Bank
Reconciliation Statement (BRS)
4. BRS- shall be prepared by the City/Municipal
Accountant and shall be submitted to the
COA Auditor on or before the 20th of the
following month.
5. Interest earned on bank deposits shall be
recorded at gross.
Illustrative Accounting
Entries
1. Collection of the BT as reported in CRDReg
Account Title Account Code Dr. Cr
Cash in Vault 101 xxx
Tax on Sand, Gravel and Other Quarry

Products 593 xxx
Income from Grants and Donations 662 xxx
Permit Fees 605 xxx
Fines and Penalties – Permits and Licenses 609 xxx
Clearance and Certification Fees 613 xxx
Garbage Fees 616 xxx
Rent Income 642 xxx
Subsidy from Other NGAs 652 xxx
Other Service Income 628 xxx
To record collections for the period ____to____ per CRDReg No.

___________.
2. Collections of the BT as deputized by City/Municipal

Treasurer
Account Account
Title Code Dr. Cr

Due to LGUs 418 xxx
To record collections for the period ____to_____ per CRDReg

No. ___________.
3. Deposit of Collections with AGDB
Account Title Account

Code Dr. Cr
Cash in Bank, Local Currency, Current Account 111 xxx

To record deposits of collections for the period _________ per CRDReg

No. ___________.
4. Remittance of collections by deputized BT to the City/

Municipal Treasurer

Code Dr. Cr
Due to LGUs 418 xxx

To record deposit of collections per certified CRDReg No.___________

5.a Credit Memo from the bank for direct deposit of

barangay share from IRA and RPT

Code Dr. Cr
Internal Revenue Allotment 665 xxx

Real Property Tax 588 xxx
To record barangay share from IRA and RPT directly deposited to the
authorized bank as reported in the CRDReg No. __________.
5.b Interest on bank deposit as reflected in the

BnkS/passbook
Account Title Code Dr. Cr

Cash in Bank, Local Currency, Savings Account 112 xxx
Cash in Bank, Local Currency, Time Deposit 113 xxx
Interest Income 664 xxx
To record interest earned for the quarter ending _______, 2006 per bank
statement/passbook for the period _____ and in the CRDReg No. _____.
Cash Shortage
6.a Recognition of cash shortage
Loss of Assets 961 xxx

To record the shortage incurred by the BT during the cash examination
conducted on ____ per COA Auditor’s report.
6.b Set-up of accountability of BT for the cash shortage incurred
Due from Officers and Employees 123 xxx

Other Deferred Credits 455 xxx
To record the accountability of the BT over the cash shortage incurred.

Cash Shortage
6.c Receipt of COA Decision granting relief to the BT for the cash
shortage

To close the receivable and other deferred credits accounts due to COA
Decision No. ___ dated ____ granting relief to the BT for the shortage
incurred.
6.d Receipt of payment of cash shortage due to COA Decision

denying the request for relief from cash accountability

To record payment made by the BT for shortage incurred per CRDReg No.
(OR No.__ dated __ ) as the request for relief from cash accountability was
denied per COA Decision No___ dated ___ .
Cash Shortage
6.e Adjustment of Other Deferred Credits Account


Miscellaneous Income 678 xxx
To adjust the deferred credits account due to COA’s denial of the
request for relief from cash accountability and payment by AO of the
shortage.
Dishonered Check
7.a Receipt of BnkS with Debit Memo (DM) and original of the
dishonored check
Other Receivables 149 xxx

To record receipt of DM for check no.___ dated___ paid by ____

which was dishonored and returned by the bank.
7.b Receipt of payment for the dishonored check

Other Receivables 149 xxx
To record the receipt of payment received equivalent to the
dishonored check per CRDReg No. __ (OR No.__ dated __).
Receipt of proceeds from
borrowings and other loans
8.a Proceeds received by the BT

Interest Expense 975 xxx
Bank Charges 971 xxx
Loans Payable - Domestic 444 xxx
To record the proceeds of loan secured from the___ (name of the

bank/lending institution) as per SB Resolution No___ dated___ net of
the bank charges and interest charged thereon per CRDReg No___ (OR
No___ dated___).
Receipt of proceeds from
borrowings and other loans
8.b Proceeds directly credited to the bank account of the barangay
Cash in Bank, LCCA 111 xxx

Interest Expense 975 xxx
Bank Charges 971 xxx
Loans Payable - Domestic 444 xxx
To record the proceeds of loan secured from the (name of the

bank/lending institution) per SB Resolution No.___ dated ___ net of the
bank charges and interest charged thereon per CRDReg No. ____ (CM
dated___).
Refund of excess cash advance
from officers and employees
9.a Refund of Payroll Fund


Payroll Fund 106 xxx
To record the refund of the BT of unclaimed salaries/honoraria per

CRDReg No___ (OR No______ dated _____).
9.b Refund of cash advances for travel


Advances to Officers and Employees 148 xxx
To record the refund of excess cash advances given to the PB for

official travel to Manila per CRDReg No.___(OR No_____ dated_______).
Performance Bond (Cash)
10. Receipt of Performance Bond (cash)

Performance/Bidders/Bail Bonds Payable 427 xxx
To record the receipt of cash bond from supplier ____ per CRDReg
No. ____ (OR No____ dated ____).
Settlement of Audit disallowanaces
11. Receipt on settlement of audit disallowances

Receivables – Disallowances/Charges 146 xxx
To record the payment of audit disallowances/charges by Mr.____as

per CRDReg No______ (Audit Charge No______ dated ______ and OR No
_______ dated_____ ).
Cash Refunds
12. Cash Overages

To record the cash overage discovered during the cash examination

conducted on ____per report dated _____ and CRDReg No. ___ (OR No.
_____ dated ___ ).
Refund of petty Cash
13. Refund of PCF balance due to resignation/replacement of Petty

Cash Fund Custodian (PCFC)

Petty Cash Fund 104 xxx
To record the refund of PCF balance due to resignation of the PCFC,

as per CRDReg No ____ (OR No____ dated ____) and PCFReg No.___ .
Financial Assitance
14. Receipt of financial assistance from the city/municipality/

province

Subsidy from Other LGUs 656 xxx
To record the receipt of CM for the subsidy given by the city/

municipality/province of ______
15. Receipt of financial assistance from National Government

Agencies, ex: from PDAF of Congressmen or Senators

Cash In Bank, LCCA 111 xxx
Subsidy from Other NGAs 652 xxx
To record the receipt of subsidy from agency sponsored by
Congressmen or Senators _______________.
Financial Assistance
16. . Receipt of PPE from National Government Agencies, ex: from

PDAF of Congressmen or Senators
Property Plant and Equipment (Specific PPE Account) ??? xxx

To record the receipt of PPE from agency sponsored by

Congressmen or Senators.
17. . Receipt of PPE donated by private entities

Property Plant and Equipment (Specific PPE Account) ??? xxx

To record the receipt of PPE from private entities

APPROPRIATIONS
AND COMMITMENTS
Appropriations and Commitments
1. Yearly, the SACB of each

barangay for the five funds
shall be consolidated by fund
for submission to the DBM and
COA.
2. The City/Municipal Budget Officer

shall prepare the CSACB
(Appendix7) of all barangays under
the city/municipality in 3 copies.
3. CSACB shall be submitted to the following offices

within sixty (60) days after the 31st of December
1. GAFMIS, COA thru the Audit Team Leader/Auditor
2. DBM thru its regional offices
3. City/Municipal Budget Officer file
The report for submission to COA shall be prepared in

printed and digital copies (diskette or compact disc).
DISBURSEMENTS
Disbursements
1. Disbursements by checks and in

cash shall be recorded in the books
based on the certified CKDReg and
CDReg submitted by the BRK to the
City/Municipal Accountant on or
before the 5th day of the following
month.
Disbursements
2. Taxes withheld from interest earned

on bank deposits reported in the
bank statement/passbook shall be
accounted for as expense and shall
be covered by an appropriation;
Disbursements
3. The CDReg and the Petty Cash

Fund Register (PCFReg) shall
be used as reference in posting
the transaction in the SL
maintained for the AOs; and
Disbursements
Accounting Policies
4. At year end, expenses for

unreplenished PCF reflected in
the PCFReg shall be recorded
thru a JEV
Disbursements by Checks
Illustrative Accounting
Entries
1. Disbursements as recapitulated in the CkDReg

Advances to Officers and Employees 148 xxx
Honoraria 720 xxx
Traveling Expenses - Local 751 xxx
Training Expenses 753 xxx
Office Supplies Expenses 755 xxx
xxx
Electricity Expenses 767 xxx
Water Expenses 766 xxx
Telephone Expenses, Landline 772 xxx
To record checks issued per certified CkDReg No. ___ for
_____, 2007.
2. Cash purchase of office equipment

Office Equipment 221 xxx

Due to BIR 412 xxx
To record the purchase of office equipment per CkDReg

No.__ (Check No. __ dated __).
3. Remittance of taxes withheld to Bureau of Internal Revenue (BIR)

Due to BIR 412 xxx

To record the remittance of taxes withheld to the BIR per

CkDReg No. __ (Check No. __ dated __).
4. Establishment of the PCF
Petty Cash Fund 104 xxx

To record the grant of PCF per SB Resolution No.___ dated

____and CkDReg No. _____ (Check No. ___ dated __ ).
5. Replenishment of the PCF

Accountable Forms Expenses 756 xxx
Traveling Expenses – Local 751 xxx
Drugs and Medicines Expenses 759 xxx
Military and Police Supplies Expenses 764 xxx
Postage and Deliveries 771 xxx
Telephone Expenses – Mobile 773 xxx
Transportation and Delivery Expenses 784 xxx

To record replenishment of PCF per CkDReg No. _____
(Check No. ______ dated ____).
6. Payment of Accounts Payable

Accounts Payable 401 xxx

Due to BIR 412 xxx
To record payment of accounts payable per CkDReg No.____
(Check No ______ dated _____).
7. Payment of repairs and maintenance of motor vehicles
Repairs and Maintenance - Motor Vehicles 841 xxx

Due to BIR 412 xxx
To record payment of repairs and maintenance of motor

vehicles per CkDReg No. _____ (Check No ____ dated ____ )
Other Related Transactions
8.a Lost/Spoiled/Stale check for replacement

Accounts Payable (or appropriate
liability account previously debited) 401 xxx
To record the receipt of original lost/spoiled/stale Check No.

___ dated____ issued in favor of ____ (stoppage of payment
issued to the bank) and request for replacement.
8.b Replacement of the check
Accounts Payable (or appropriate

liability account previously restored) 401 xxx
To record the replacement of Check No.__ dated ____
reported lost/ spoiled/stale per CkDReg No.__ (Check No.__
dated ___).
8.c Taxes withheld by the bank (per bank statement)
Taxes, Duties and Licenses 891 xxx

Cash in Bank, LCSA 112 xxx
Cash in Bank, LCTD 113 xxx
To record taxes withheld by the bank from the interest

earned on deposits.
8.d Prior year’s expenses
Prior Years’ adjustments 684 xxx

To record payment of unrecorded prior year’s expenses per

CkDReg No.___ (Check. No.___ dated __ ).
Accounting for Payroll Fund
Pro-forma Accounting Entries

1. Payment of salaries and honorarium (per recapitulation in the
CDReg)
Salaries and Wages – Regular 701 xxx

Salaries and Wages – Casual 705 xxx
Honoraria 720 xxx
Due to BIR 412 xxx
To record the payment of salaries and honoraria per certified CDReg

No. _______.
Supplies and Materials
1. Supplies and materials purchased shall be

directly charged to appropriate supplies and
materials expense account.
2. Small items like stapler, puncher, ruler,
mechanical tools, and other barangay
supplies, with a life of more than one year,
but small enough to be considered as PPE,
shall be classified as expense upon
purchase.
3. The disposal of obsolete supplies and

materials and unserviceable small items
shall be covered by Inventory and
Inspection Report of Unserviceable
Property (IIRUP).
4. Cost of transporting supplies and
materials to the barangay shall be
charged to Delivery Expense account.
Illustrative
Accounting
Entries
1a. Purchase of Supplies and Materials and small

tangible items
a. Purchase on account covered by IAR

Other Supplies Expenses 765 xxx
To record the items received per IAR and set up the

corresponding liability.
1b. Purchase of Supplies and Materials
b. Cash Purchases

Other Supplies Expenses 765 xxx
Due to BIR 412 xxx
Cash in Bank LCCA 111 xxx
To record purchases on cash CKD Reg No. (Check

No.___dated____.
2. Receipt of supplies and materials as financial

assistance from private parties.

To record the items received from private entities

3. Receipt of supplies and materials as subsidy from the

city/municipality/province.

Subsidy from other LGUs 656 xxx
To record the items received from the

city/municipality/province.
4. Proceeds from sale of obsolete supplies, materials and

unserviceable items.

To record sale of obsolete supplies, materials and
unserviceable items per CRDreg No. ___dated____.
Property, Plant and Equipment
1. Cost of PPE – includes

purchase cost or invoice cost
and all incidental costs
2. Cost of assets under construction shall

include all costs incurred during
construction.
Expenses incurred after the completion of the projects
shall be charged to operation
3. All projects under construction shall be

recorded under “Construction in
Progress – Agency Assets”.
Upon completion, it shall be closed and

recorded in its appropriate PPE account
4. All PPE except land shall be subject to

depreciation. A 10% residual value shall be
set aside in computing the depreciation
using the straight line method.
5. Depreciation shall start on the month
following the month of purchase or
completion of the project.
Estimated Useful Lives of PPE –
(COA Circular No. 2003-007 dated December
11, 2003)
No. of
Property
years
LAND IMPROVEMENTS
Land Improvements 10
BUILDINGS - those that are predominantly
Wood 10
Mixed 20
Concrete 30
LEASEHOLD IMPROVEMENTS (Note 1)
Land 10
Buildings
Wood 10
Mixed 20
Concrete 30
OFFICE EQUIPMENT, FURNITURE AND
FIXTURES
Office Equipment 5
Furniture and Fixtures 10
IT Equipment – Hardware 5
Library Books 5
Estimated Useful lives of PPE –
(COA Circular No. 2003-007 dated December 11, 2003)
No. of
Property
years
MACHINERIES AND EQUIPMENT
Machinery 10
Agricultural, Fishery and Forestry 10
Communication Equipment 10
Construction and Heavy Equipment 10
Firefighting Equipment and Accessories 7
Medical, Dental and Laboratory Equipment 10
Military and Police Equipment 10
Sports Equipment 10
Technical and Scientific Equipment 10
Other Machineries and Equipment 10
TRANSPORTATION EQUIPMENT
Motor Vehicles 7
Watercrafts 10
Other Transportation Equipment 10
OTHER PROPERTY, PLANT AND 5
EQUIPMENT
Note 1
The estimated useful life shall depend on the length of the
lease. It shall be the period of the lease or the estimated
useful life of the assets, as given, whichever is lower.
6. Fully depreciated PPE which are still in

operation shall remain as PPE for balance
sheet presentation
7. Disposal of unserviceable PPE shall be
covered by IIRUP. The same shall be
dropped from the books only after its
disposal
8. Grants and donations in kind shall be booked up

at appraised cost in the absence of any cost at
the time of receipt.
9. Transfer of PPE from other government agencies
shall be recorded in the books at net book value,
based on the JEV supporting the donation/
grant/transfer.
10. Lost PPE shall be dropped from the books upon

receipt of the notice of loss. The loss shall be
charged to account “Loss of Assets” at an amount
equal to the net book value.
Sample Computation:
Cost of motor vehicle P400,000
Accumulated Depreciation 257,000
Net Book Value or Loss of Assets P143,000
11. The accountability of the AO over the loss of

depreciable asset shall be based on the “sound value”.
The sound value shall be computed by deducting the
estimated depreciation of the lost asset based on the
replacement cost.
Sample Computation:
Replacement Cost P500,000
Accumulated Depreciation 321,000
Net Book Value or Sound Value P179,000
12. Repairs and maintenance of equipment shall be

charged to account “Repairs and Maintenance” of the
specific equipment. Major repairs which resulted in
increased economic benefits or service potential shall
be added to its carrying amount (Item 7.3 of the Philippine
Government Accounting Standards, COA Resolution No. 2006-006
dated January 31, 2006.)
Pro-forma
Accounting
Entries
Purchase of PPE
a. On account covered by IAR

Office Equipment 221 xxx

IT Equipment 223 xxx
Motor Vehicles 241 xxx
To record the delivery and receipt of PPE per IAR No. __ and
Invoice No, ___ dated _____.
Depreciation - Office Equipment 921 xxx

Depreciation - Motor Vehicles 941 xxx
Accum. Depreciation - Office Equipment 321 xxx
Accum. Depreciation - Motor Vehicles 341 xxx
To record depreciation expense for the month of _______
a. Disposal thru sale (less than net book value)

Gain/Loss on Sale of Disposed Assets 682 xxx
To record sale of unserviceable motor vehicle at less than net
book value per CRDReg. No. _________
b. Disposal thru sale (above net book value)

Gain/Loss on Sale of Disposed Assets 682 xxx
Motor Vehicle 241 xxx
c. Disposal thru donation

Donations 878 xxx

Repairs and Maintenance – Office Equipment 821 xxx

Repairs and Maintenance – IT Equipment 823 xxx
Repairs and Maintenance – Motor Vehicles 841 xxx
To record payment of repairs and maintenance of PPE per

CkDReg No. (Check No. ______dated ____)
a. Recording of the loss
Loss of Assets 961 xxx

To record loss of motor vehicle (ex. Owner Type Jeepney
SWK722 of the barangay per notice of loss and police report ____
dated _____.
b. Setting up of the accountability of the accountable
officer for loss of motor vehicle

To set up the accountability of the accountable officer for the
lost motor vehicle.
c. Receipt of COA Decision granting the AO relief from property
accountability

To adjust the journal entry made taking up the accountability of

the accountable officer for the lost motor vehicle based on COA
Decision No. ____ dated granting relief from property
accountability
d. Receipt of COA Decision denying the request of the AO for

relief from property accountability
NO ENTRY
e. Receipt of payment of AO for property lost

To record the receipt of payment for lost motor vehicle per

CRDReg No. ____________
f. Adjustment of account “Other Deferred Credits”


To adjust Other Deferred Credits account and recognize

income due to payment by the AO.
PUBLIC
INFRASTRUCTURES
AND
REFORESTATION
PROJECTS
Pubic Infrastructures and
1. All costs incurred on the construction of

Public Infrastructures and Reforestation
Projects shall be part of the cost of the
project,
Expenses incurred after the completion shall
be charged to operation
2. All projects under construction shall be recorded

under the specific Construction in Progress –
Public Infrastructures and Construction in
Progress – Reforestation Project accounts.
Upon completion, it shall be transferred to the
specificPublic Infrastructures and Reforestation
Projects accounts
3. Completed Public Infrastructures and Reforestation

Projects during the year shall be transferred to the
appropriate Registry of Public Infrastructures and
Reforestation Projects at yearend
4. A separate Registry shall be maintained for each
Public Infrastructures and Reforestation projects to
monitor its status, cost and cumulative cost of
repairs and maintenance
5. All public infrastructures and reforestation projects
are not subject to depreciation
6. Repairs and maintenance of public infrastructures

and reforestation projects shall be charged to the
appropriate repairs and maintenance expense
account of the specific projects; and
7. The total cost of each public infrastructures and
reforestation projects shall be disclosed in the
Notes to Financial Statements
4. Transfer of Public Infrastructures and Reforestation Projects to

the Registries at year end
a. Public Infrastructures
Government equity 501 xxx

Roads, Highways and Bridges 251 xxx
To record transfer of the completed road to the Registry of

Public Infrastructure – Roads, Highways and Bridges at
yearend.
4. Transfer of Public Infrastructures and Reforestation Projects to

the Registries at year end
b. Reforestation Projects
Government Equity 501 xxx

Reforestation – Upland 261 xxx
To record transfer of the completed reforestation project to

the Registry of Reforestation Projects at yearend.
5. Repairs and Maintenance
a. Public Infrastructures
Repairs and Maintenance Roads Highways and 851 xxx

Bridges 111 xxx
Cash in Bank – LCCA
To record the cost of repairs of Barangay roads .

Monitoring of Barangay Public
Infrastructures And reforestation Projects
Monitoring of Barangay Public Infrastructures

and Reforestation Projects
To monitor the cost including repair and maintenance
incurred on these projects, separate registries shall be
maintained for each specific public infrastructures and
reforestation projects. The registries shall include, but
are not limited to the following:
1. Registry of Public Infrastructures (RPI) – Roads (Appendix 8)
2. Registry of Public Infrastructures (RPI) – Bridges
3. Registry of Public Infrastructures (RPI) – Parks
4. Registry of Public Infrastructures (RPI) – Monuments
5. Registry of Reforestation Projects (RRP) – (Appendix 9)
Trial Balance
Trial Balance is a list of all the accounts with

balances in the GL. The accounts shall be listed
following the sequence in the chart of accounts.
The TB is prepared to check the equality of the
debit and credit balances of all GL accounts as of
a given period and to serve as basis for the
preparation of Financial Statements (FS).
Submission of Trial Balance
Trial Balances (TBs) shall be submitted within thirty (30) days

after the close of each month. The yearend Pre-Closing and
Post-Closing TBs shall be submitted on or before February 14
of each year. The Trial Balances shall be prepared in four
copies to be distributed as follows:
Original – COA Auditor who has supervision over the

City/Municipality where the barangay is located
2nd copy – Sangguniang Barangay
3rd copy – PB/BRK
4th copy – City/Municipal Accountant
Closing Entries
Closing Entries
1. Income Accounts
2. Expense Accounts
3. Income and Expense Summary
Closing Entries
4. Prior Years’ Adjustments

5. Retained Operating
Surplus
6. Transfer of PI and RP to
the Registries
Working Trial Balance
Tool for sorting and accumulating

information needed for the
preparation of the financial
statements. It is a columnar sheet
used to adjust and close the account
balances.
Working Trial Balance
Un- Pre- Statement Post -

Accounts adjusted Adjust- Closing of Closing Closing
Trial ments Trial Income Entries Trial Balance
Balance Balance and Balance Sheet
Expenses
A B C D E F G H
Title Code Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr Cr
Financial Statements
Balance Sheet
Statement of Income and Expenses
Statement of Changes in
Government Equity
Statement of Cash Flows
Balance Sheet, Defined
Balance Sheet (BS) is a formal statement

showing the financial condition of the barangay
as of a particular date. It shows information on
the three elements of financial position, namely:
assets, liabilities and government equity. It shall
be prepared based on information taken from the
yearend Post–Closing TB. Samples of the BS in
detailed and condensed formats are shown in
Appendices 12 and 13.
Statement of Income and Expenses,
Defined
Statement of Income and Expenses (SIE) is a

statement showing the results of operations of
the barangay for a particular period ended. This
statement shall be prepared based on
information taken from the Pre-Closing TB.
Samples of the detailed and condensed SIE are
shown in Appendices 14 and 15.
Statement of Cash Flows, Defined
Statement of Cash Flows (SCF) is a statement

summarizing all cash transactions of the
barangay. It shall be prepared using the Direct
Method. It shows the amount of cash received
and disbursed for the operating, investing and
financing activities and the net cash provided
by/(used in) each activity as of a given date. The
ending balance of SCF should tally with the cash
balance per BS. A sample of the SCF is shown in
Appendix 16.
Statement of Changes in Government
Equity, Defined
Statement of Changes in Government Equity

(SCGE) shown in Appendix 17 is a statement
showing the result or changes in Government
Equity account as of a given period.
Supporting Schedules
Schedule of Public Infrastructures

Schedule of Reforestation Projects
Schedule of Accounts Receivable
Schedule of Accounts Payable
Other Schedules that may be required
Notes to Financial Statements
Notes to Financial Statements shall be made an

integral part of the FSs. The disclosures pertain
to additional information to enhance the value of
financial data in the FSs. These may explain
information that cannot be expressed in money
terms and description of present accounting
policies.
Distribution of reports
Original - COA Auditor who has supervision

over the City/Municipality where
the barangay is located
2nd Copy - Sangguniang Barangay
3rd Copy - PB/BRK
4th Copy - City/Municipal Accountant
Statement of Management
Responsibility
The FSs shall be supported with the

Statement of Management Responsibility for
the Financial Statements (Appendix 22).
Consolidation of Trial Balance
The City/Municipal Accountant shall prepare the Consolidated

Pre-Closing and Post-Closing Trial Balances of all barangays
under the city/municipality at yearend.
Consolidation of Financial Statements
The City/Municipal Accountant shall consolidate the following

FSs and schedules of all barangays under the city/municipality
at yearend.
a. Detailed and Condensed Balance Sheet
b. Detailed and Condensed Statement of Income and
Expenses
c. Statement of Cash Flows (Direct Method)
d. Statement of Changes in Government Equity
e. Schedule of Infrastructure Projects and Reforestation
Projects (if applicable)
f. Schedule of Accounts Receivable
g. Schedule of Accounts Payable
• Submission of Consolidated TBs and FSs.
The City/Municipal Accountant shall submit the
Consolidated TBs and FSs for Barangays together with those of the
City/Municipality to the GAFMIS Sector, Commission on Audit,
Central Office, and COA Auditor/ATL in printed and digital copies
within 60 days after the 31st of December.

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Barangay Accounting

1. Prescribes uniform guidelines and

2. Provides new coding and chart of accounts

Recording and Generation of Financial Statements and Reports/Schedules

1. Modified Accrual Accounting

15. Reclassification of Assets

1. Collection of the BT as reported in CRDReg

Account Title Account Code Dr. Cr

Cash in Vault 101 xxx

Tax on Sand, Gravel and Other Quarry

To record collections for the period ____to____ per CRDReg No.

2. Collections of the BT as deputized by City/Municipal

Cash in Vault 101 xxx

To record collections for the period ____to_____ per CRDReg

3. Deposit of Collections with AGDB

Account Title Account

Cash in Bank, Local Currency, Current Account 111 xxx

To record deposits of collections for the period _________ per CRDReg

4. Remittance of collections by deputized BT to the City/

Account Title Account

Due to LGUs 418 xxx

To record deposit of collections per certified CRDReg No.___________

5.a Credit Memo from the bank for direct deposit of

Account Title Account

Cash in Bank, Local Currency, Current Account 111 xxx

Internal Revenue Allotment 665 xxx

5.b Interest on bank deposit as reflected in the

Account Title Code Dr. Cr

Cash in Bank, Local Currency, Current Account 111 xxx

6.a Recognition of cash shortage

Account Title Code Dr. Cr

Loss of Assets 961 xxx

6.b Set-up of accountability of BT for the cash shortage incurred

Account Title Code Dr. Cr

Due from Officers and Employees 123 xxx

To record the accountability of the BT over the cash shortage incurred.

Other Deferred Credits 455 xxx

6.d Receipt of payment of cash shortage due to COA Decision

Cash in Vault 101 xxx

6.e Adjustment of Other Deferred Credits Account

Other Deferred Credits 455 xxx

Other Receivables 149 xxx

To record receipt of DM for check no.___ dated___ paid by ____

7.b Receipt of payment for the dishonored check

Account Title Code Dr. Cr

Cash in Vault 101 xxx

8.a Proceeds received by the BT

Account Title Code Dr. Cr

Cash in Vault 101 xxx

To record the proceeds of loan secured from the___ (name of the

8.b Proceeds directly credited to the bank account of the barangay

Account Title Code Dr. Cr

Cash in Bank, LCCA 111 xxx

To record the proceeds of loan secured from the (name of the

9.a Refund of Payroll Fund

Cash in Vault 101 xxx

To record the refund of the BT of unclaimed salaries/honoraria per

9.b Refund of cash advances for travel

Cash in Vault 101 xxx

To record the refund of excess cash advances given to the PB for

10. Receipt of Performance Bond (cash)

Account Title Code Dr. Cr

Cash in Vault 101 xxx

11. Receipt on settlement of audit disallowances

To record collections for the period to per CRDReg No.

To record collections for the period to_ per CRDReg

To record receipt of DM for check no._ dated_ paid by ____