Government Accounting Cycle

Appropriation – upon the enactment of GAA

- No Journal Entry
- Budget Registry: RAPAL
- Enter the appropriation in the appropriation column (per nature of expense)
- PS, MOOE, FE, CO
- P1, 000, 000. (PS – 400, 000; MOOE -100, 000; FE – 100, 000; CO – 400, 000)
Appropriations Allotments Unappropriated Allotments
PS MOOE FE CO Total PS MOOE FE CO Total PS MOOE FE CO Total
400K 100K 100K 400K 1M 400K 100K 100K 400K 1M

Allotment – Obligational authority

- Green light / go signal to enter into contract.
- No Journal Entry
- Budget Registry: RAPAL, RAOD (for every nature of expense) – PS, MOOE, FE,
CO
- P820,000 from the DBM.
- PS – 350, 000
- MOOE – 100, 000
- FE – 50, 000
- CO – 320, 000
 Appropriations Allotments Unappropriated Allotments
(Appropriations – Allotments)
PS MOOE FE CO Total PS MOOE FE CO Total PS MOOE FE CO Total
400K 100K 100K 400K 1M 400K 100K 100K 400K 1M
400K 100K 100K 400K 1M 350K 100K 50K 320K 820K 50K - 50K 80K 180K

RAOD – PS
Allotment Obligations Unobligated Disbursement Unpaid Obligations
Allotment Due and Not yet Due and
Demandable demandable
350, 000 - 350, 000 - - -

RAOD – MOOE
Allotment Obligations Unobligated Disbursement Unpaid Obligations
Allotment Due and Not yet Due and
Demandable demandable
100, 000 - 100, 000 - - -

RAOD – FE
Allotment Obligations Unobligated Disbursement Unpaid Obligations
Allotment Due and Not yet Due and
Demandable demandable
50, 000 - 50, 000 - - -

RAOD – CO
Allotment Obligations Unobligated Disbursement Unpaid Obligations
Allotment Due and Not yet Due and
Demandable demandable
320, 000 - 320, 000 - - -
Obligation – entered into contracts
- There is no liability yet.
- Obligation is not equivalent to liability
- Liability will only arise when the goods or services are delivered.
- No Journal Entry
- ORS
o For every obligation (contract entered), we prepare one ORS
o ORS should originate from the requesting party
- Update Budget Registry: RAOD (obligation section)
PS – 300, 000 (ORS)
Job Order – 300, 000
RAOD
MOOE – 100, 000 (ORS)
Payment of Maintenance Expenses – 40, 000
Payee: Cairo Ramos
Office: General Services Office

Purchase of Supplies - 55,000

Payee: Ciara Saplagio
Office: Accounting Office

Travel Expenses – 5, 000

Payee: Darryl Nebria
Office: Administration Office
 Capital Outlays – 300, 000 (ORS)
Purchase of Equipment – 300, 000
Payee: Gina Perez
Office: Customer Service Department

RAOD – PS
Allotment Obligations Unobligated Disbursement Unpaid Obligations
Allotment Due and Not yet Due and
Demandable demandable
(delivered and (obligated/contracted
payable) , not yet delivered)
350, 000 - 350, 000 - - -
350, 000 300, 000 50, 000 - - 300, 000

RAOD – MOOE
Allotment Obligations Unobligated Disbursement Unpaid Obligations
Allotment Due and Not yet Due and
Demandable demandable
100, 000 - 100, 000 - - -
100, 000 100, 000 - - - 100, 000

RAOD – FE
Allotment Obligations Unobligated Disbursement Unpaid Obligations
Allotment Due and Not yet Due and
Demandable demandable
50, 000 - 50, 000 - - -

RAOD – CO
Allotment Obligations Unobligated Disbursement Unpaid Obligations
Allotment
 Due and Not yet Due and
Demandable demandable
320, 000 - 320, 000 - - -
320, 000 300, 000 20, 000 - - 300, 000

Notice of Cash Allocation – disbursement authority

- Green light / go signal to pay
- This means the availability of funds
- Journal Entry
- Update RANCA
- For the current year’s appropriation 600, 000
- For the prior year’s accounts payable and not yet due and demandable obligations 25, 000

a. Cash – MDS, Regular 600, 000

Subsidy from National Government 600, 000
b. Cash – MDS, Regular 25, 000
Subsidy from National Government 25, 000

Date Reference
AMOUNT
Allotment Notice of Cash Balance
 Received Allocation

Utilize Unutilized Unfunded

Received
d NCA Allotment
(a) (b) ( c) (b - c) (a - b)
600,000.0 220,000.0
January 8, 2020 NCA 820,000.00 600,000.00 0 0
625,000.0 195,000.0
January 8, 2020 NCA 820,000.00 25,000.00 0 0

Disbursement – actual payment

- Pay only those which have been delivered
- Journal Entry (Payment of check)
- Update RAOD and ORS (payable, due and demandable)
JO Maintenance Supplies Travel Expense Equipment
Expense
Obligated 300, 000 100, 000 300, 000
Delivered Gross Salaries and Wages 200, 000 Water 1, 000 Prior – 5, 000 5,000 300, 000
(subject (PERA) 50, 000 Electricity 5, 000 Present – 30, 000
for Withholding Taxes (Due to BIR) 20, 000 Telephone 2, 000 Total: 35, 000
disbursem GSIS (Due to GSIS) 9, 000 Janitorial 10, 000
ent) Pag-IBIG (Due toPag-IBIG) 2, 000 Security 12, 000
PhilHealth (Due to PhilHalth) 1, 000 Total: 30, 000
With.Taxes 2, 000
Amount of services delivered P250, 000 Net 28, 000
Payment - paid 218, 000 to employees Paid 28, 000 Paid 31, 500 Release P5, 000 but actual Paid 280, 000
Withheld 2, 000 Withheld 3, 500 travel expense is only 2, 000. Withheld 20, 000
Excess was redeposited
Set up the Expense Account (Delivered Disbursement/Payment Disbursement/Payment Cash – Advance Cash – Advance
already) – payable (ORS) ORS and RAOD ORS RAOD ORS, RAOD ORS, RAOD

Salaries and Wages 200, 000 Water 1, 000 Supplies Expense 35, 000 Advances to O& E 5, 000 Equipment 300, 000
PERA 50, 000 Electricity 5, 000 Due to BIR 3, 500 Cash – MDS, Regular 5K Due to BIR 20, 000
Due to BIR 20, 000 Telephone 2, 000 Cash MDS, Reg 31,500 Cash MDS, Regular 280K
Due to GSIS 9, 000 Janitorial 10, 000
Due to Pag-IBIG 2, 000 Security 12, 000 Liquidation
Due to PhilHealth 1, 000 Due to BIR 2, 000
Due to Officer and Emp 218, 000 Cash – MDS, Regular 28, 000 Travel Expense 2, 000
Cash – MDS, Regular 3, 000
Cash Advance – Disbursement : ORS, Advances to O&E 5K
RAOD

Advances for Payroll 218, 000

Cash, MDS – Regular 218, 000

Liquidation

Due to Officer and Employees 218, 000

Cash, MDS- Regular

RAOD – PS
Allotment Obligations Unobligated Disbursement Unpaid Obligations
Allotment Due and Not yet Due and
Demandable demandable
(payable/ (obligation –
delivered– payable/delivered)
 disbursement)
350, 000 - 350, 000 - - -
350, 000 300, 000 50, 000 - - 300, 000
350, 000 300, 000 50, 000 218, 000 32, 000 50, 000

RAOD – MOOE
Allotment Obligations Unobligated Disbursement Unpaid Obligations
Allotment Due and Not yet Due and
Demandable demandable
100, 000 - 100, 000 - - -
100, 000 100, 000 - - - 100, 000
100, 000 100, 000 28, 000 2, 000 * 70, 000**
100, 000 100, 000 59, 500*** 5, 500 **** 35, 000
100, 000 100, 000 5, 000 5, 500 30, 000
Due and Demandable = 30, 000 (Maintenance) – Payment 28, 000 = 2, 000*
Not yet Due = Obligation 100, 000 – Payable 30, 000 (Maintenance) = 70, 000 **

Disbursement * = 28, 000 (Maintenance)+ 31, 500 (Supplies) = 59, 500***

Total Payable Maintenance + Supplies - Payment (Maintenance and Supplies)

Due and Demandable = (30, 000 + 35, 000) – (28, 000 + 31, 500)
= 65, 000 – 59, 500
= 5, 500 ****

Total Obligations - Total Payable

Not Yet Due and Demandable = 100, 000 - 65, 000
= 35, 000

Total Payable Maintenance + Supplies + Travel - Payment (Maintenance and Supplies and Travel)
Due and Demandable = (30, 000 + 35, 000+ 5, 000) – (28, 000 + 31, 500 +5, 000)
= 70, 000 – 64, 500
= 5, 500
 Total Obligations - Total Payable
Not Yet Due and Demandable = 100, 000 - 70, 000
= 30, 000
RAOD – CO
Allotment Obligations Unobligated Disbursement Unpaid Obligations
Allotment Due and Not yet Due and
Demandable demandable
320, 000 - 320, 000 - - -
320, 000 300, 000 20, 000 - - 300, 000
320, 000 300, 000 20, 000 280, 000 20, 000* -
Payable : 300, 000
Payable – Payment = 300, 000 – 280, 000*
Obligation – Payable = 300, 000 – 300, 000

REMITTANCES (all dues will be paid)

Journal Entry:
Due to GSIS 9, 000
Due to Pag-IBIG 2, 000
Due to PhilHealth 1, 000
Cash – MDS, Regular 12, 000

Update ORS and RAOD

RAOD – PS
Allotment Obligations Unobligated Disbursement Unpaid Obligations
 Allotment Due and Not yet Due and
Demandable demandable
(payable/ (obligation –
delivered– payable/delivered)
disbursement)
350, 000 - 350, 000 - - -
350, 000 300, 000 50, 000 - - 300, 000
350, 000 300, 000 50, 000 218, 000 32, 000 50, 000
350, 000 300, 000 50, 000 230, 000 20, 000 50, 000

Remittance to BIR / BOC of Taxes

Entity A – Taxes (BIR) – BTr – Entity A (Subsidy)

Instead of actual remittance of taxes, constructive remittance is applied
– TAX REMITTANCE ADVICE – constructive remittance of taxes, constructive receipt of subsidy

Constructive Receipt of Subsidy

Cash – TRA (amount of withheld taxes) 45, 500
Subsidy from National Government 45, 000

Constructive Remittance of Taxes

Due to BIR 45, 500
Cash – TRA 45, 500
Update: RAOD / ORS
RAOD – PS
Allotment Obligations Unobligated Disbursement Unpaid Obligations
Allotment Due and Not yet Due and
Demandable demandable
(payable/ (obligation –
delivered– payable/delivered)
disbursement)
350, 000 - 350, 000 - - -
350, 000 300, 000 50, 000 - - 300, 000
350, 000 300, 000 50, 000 218, 000 32, 000 50, 000
350, 000 300, 000 50, 000 230, 000 20, 000 50, 000
350, 000 300, 000 50, 000 250, 000 - 50, 000

RECEIPTS:
BILLING, COLLECTION, REMITTANCE
Bill: Receivable
The entity billed the following revenue / income:
Power supply system fees 100, 000
Landing and parking fees 80 , 000
Total 180, 000

Journal Entries:
Accounts Receivable 180, 000
Power Supply Fees 100, 000
 Landing and Parking Fees 80, 000

Collection: Receipt of Cash / Collection by the collecting officer (Cash – CO)

COLLECTION OF BILLED RECEIPTS
1. Entity A collects P100, 000 accounts receivable from the billing above and remits P90, 000 of the collection
2. Entity A collects P45, 000 accounts receivable from prior year’s billings and remits total collection

Journal Entries:
Collection:
Cash - Collecting Officer (CO) 145, 000
Accounts Receivable 145, 000

Update: RROR

COLLECTION OF UNBILLED RECEIPTS

Entity A collects unbilled service income (no AR involved) of P370, 000 and remits P340, 000 of the total collection
a. Permit fees 200, 000
b. Registration Fees 160, 000
c. Other Service Income 10, 000

Cash – CO 370, 000

Permit fees 200, 000
Registration Fees 160, 000
 Other Service Income 10, 000

Remittance: Depositing of collection by the CO to the national treasuries

(based on prior problem: Remittance: 90, 000 + 45, 000 = 135, 000)

Cash – MDS, Regular 135, 000

Cash – CO 135, 000

Cash – MDS, Regular 340, 000

Cash – CO 340, 000

Direct Remittance:
Entity A collect unbilled tax revenue through direct deposit in Authorized Agent Banks, P30, 000

Cash – MDS, Regular 30, 000

Tax Revenue 30, 000

Bill, Collect, Remit (AR, CASH – CO, CASH –MDS)

Collect, Remit ( CASH –CO (revenue) ; CASH –MDS)
Remit (CASH – MDS (revenue))