Volume II & III

CHAPTER 1.
THE BOOKS OF ACCOUNTS, REGISTRIES

AND CASH RECORDS
Sec. 01. Books of Accounts. – The books of accounts used by the local government unit shall consist of
the following:
1. records for recording transactions in chronological order, known as the journals or books
of original entry; and
2. records for classifying and summarizing the effects of the transactions on individual
accounts, known as ledgers or books of final entry.
Sec. 02. Books of Original Entry. – Books of original entry or journals, shall be used to record in time
sequence, financial transactions and information presented in duly certified and approved accounting
documents.
The books of original entry shall consist of the following journals:
1. General Journal
2. Special Journals
a. Cash Receipts Journal

b. Check Disbursements Journal
c. Cash Disbursements Journal
The basis of recording in the journals shall be the Journal Entry Voucher (JEV).
Sec. 03. General Journal. – This journal (Annex 1) shall be used to record all transactions which can not
be entered in the special journals. It provides columns for the date, the JEV number, particulars which
give explanation for the transactions recorded, the account code used, posting reference and the debit
and credit amount.
Sec. 04. Special Journals. – The special journals are specifically designed to record transactions which
are repetitive in nature. Special columns are provided to facilitate summation and postings in the general
ledger.
Sec. 05. Cash Receipts Journal (CRJ). – This journal (Annex 2) is used to record all collections and
deposits reported during the month. It provides columns for the date, RCD number, JEV number, name of
collecting officer, collections (debit and credit), deposits (debit and credit) and sundry columns in the
collections and deposits columns (debit and credit).
Sec. 06. Check Disbursements Journal (CkDJ). – This journal (Annex 3) is used to record check
payments made by the treasurer/cashier. It provides columns for the date, RCI number, JEV number,
payee, debit and credit columns for appropriate disbursements accounts and sundry columns (debit and
credit).
Sec. 07. Cash Disbursements Journal (CDJ). – This journal (Annex 4) is used to record all payments in
cash by disbursing officers out of their cash advances. It provides columns for the date, reference/RD
number, JEV number, accountable officer, debit and credit columns for appropriate disbursements
accounts and sundry columns (debit and credit).
Sec. 08. Books of Final Entry. – The books of final entry are the General Ledger and Subsidiary
Ledgers.
Sec. 09. General Ledger (GL). – The General Ledger (Annex 5) is a book of final entry containing
accounts arranged in the same sequence as the chart of accounts. Totals of columns in the special
journals and the individual entries in the General Journal are directly posted in this book. At the end of
each month, the accounts are footed and at the end of the year, these are totaled, ruled and closed and
the balance extracted to serve as the opening balance of the new fiscal year.
Sec. 10. Subsidiary Ledger (SL). – The Subsidiary Ledger (Annex 6) is a book of final entry containing
the details or breakdown of the balances of the controlling account appearing in the General ledger.
Postings to the subsidiary ledgers generally come from the source documents. Examples of general
ledger accounts which has subsidiary ledgers are Cash – Disbursing Officers, Cash in Bank – Local
Currency Current Accounts, Accounts Receivable, Accounts Payable, Special Accounts in the General
Fund, etc. The totals of the subsidiary ledger balances shall be reconciled to their respective control
account at the end of every month.
Sec. 11. Supplies Ledger Card (SLC). – The Supplies Ledger Card (Annex 7) is a subsidiary ledger to
be maintained by the accounting office for each type of supplies, crops and other inventory items, to
record acquisition, issuance and disposal. The SLC shall be the basis in filling up the Supplies Availability
Inquiry (SAI).
Sec. 12. Work, Other Animals and Breeding Stocks Ledger Card. – The Work, Other Animals and
Breeding Stocks Ledger Card (Annex 8) is a subsidiary ledger to be kept for each large cattle which
includes cows, horses, mules, asses, carabaos and other members of the bovine family, acquired by
purchase or raised which attained the age of one year.
Small animals like pigs, goats, etc. shall also be singly recorded in this form and taken-up as inventory
upon reaching marketable age or are ready for use.
Sec. 13. Property, Plant and Equipment Ledger Card (PPELC). – The Property, Plant and Equipment
Ledger Card (Annex 9) is a subsidiary ledger to be kept for each class of property, plant and equipment
which shall record the acquisition, description, custody, estimated life, rate of depreciation, disposal and
other information about the property, plant and equipment, based on the source documents of the
transactions.
Sec. 14. Investment Ledger Card (ILC). – The Investment Ledger Card (Annex 10) is a subsidiary
ledger to be kept for each type of investment which shall record the number of shares acquired,
acquisition cost and other relevant information.
Sec. 15. Real Property Ledger Card (RPLC). – The Real Property Ledger Card (Annex 11) is a
subsidiary ledger card to be kept for each real property (land) which record the property description,
location, acquisition cost, additions, and disposition.
Sec. 16. Construction in Progress Ledger Card (CIPLC). – The Construction in Progress Ledger Card
(Annex 12) is a subsidiary ledger card to be kept for each construction in progress which records the
amount paid per billing of the contractor in case of construction by straight contract and the amount paid
for materials, labor and overhead in case of construction by administration.
Sec. 17. Registries. – Registries are accounting records which shall be maintained to monitor
accounts/assets not recorded in the books of accounts.
Sec. 18. Registry of Appropriations, Allotments and Obligations (RAAO). – The Registry of
Appropriations, Allotments and Obligations is prepared per function/program/project, allotment class,
current/continuing appropriations and fund. This record shall be maintained by the accounting office to
monitor appropriations, allotments received and the obligations incurred against said allotments. The
balance is extracted every time an entry is made to prevent incurrence of obligations in excess of
allotments received or approved appropriations.
The RAAOs are as follows:
 Registry of Appropriations, Allotments and Obligations – Capital Outlay (RAAOCO);

 Registry of Appropriations, Allotments and Obligations – Maintenance and Other
Operating Expenses (RAAOMO);
 Registry of Appropriations, Allotments and Obligations – Personal Services (RAAOPS);
and
 Registry of Appropriations, Allotments and Obligations – Financial Expenses (RAAOFE).
Sec. 19. Registry of Appropriations, Allotments and Obligations – Capital Outlay (RAAOCO). – The
Registry of Appropriations, Allotments and Obligations – Capital Outlay (Annex 13)shall be used to record
appropriations, allotments received and obligations incurred for capital outlay.
Sec. 20. Registry of Appropriations, Allotments and Obligations – Maintenance and Other
Operating Expenses (RAAOMO). – The Registry of Appropriations, Allotments and Obligations –
Maintenance and Other Operating Expenses (Annex 14) shall be used to record appropriations,
allotments received and obligations incurred for purchase of inventories and expenses classified under
Maintenance and Other Operating Expenses in the Chart of Accounts.
Sec. 21. Registry of Appropriations, Allotments and Obligations – Personal Services (RAAOPS). –
The Registry of Appropriations, Allotments and Obligations – Personal Services (Annex 15) shall be used
to record appropriations, allotments received and obligations incurred for expenses classified under
Personal Services in the Chart of Accounts.
Sec. 22. Registry of Appropriations, Allotments and Obligations – Financial Expenses (RAAOFE).
– The Registry of Appropriations, Allotments and Obligations – Financial Expenses (Annex 16) shall be
used to record appropriations, allotments received and obligations incurred for expenses classified under
Financial Expenses in the Chart of Accounts.
Sec. 23. Registry of Public Infrastructures (RPI). – The Registry of Public Infrastructures (Annex 17)
shall be used to record completed infrastructures for use of the general public. A separate Registry shall
be maintained for each class of property or asset, as follows:
 Plazas, Parks and Monuments

 Roads Highways and Bridges
 Harbors, Seawalls, River Wall and Others
 Runways
 Railways
 Waterways, Aqueduct, etc.
 Irrigation canals and laterals
 Reforestation Projects
 Other Public Infrastructures.
Sec. 24. Registry of Reforestation Project (RRP). – The Registry of Reforestation Project (Annex 18)
shall be used to record expenses incurred on reforestation projects.
Sec. 25. Cash Records. – Cash Records shall be used to record collections, deposits, withdrawals and
disbursements of cash. It shall be maintained by the Accountable Officers.
Sec. 26. Cashbook – Cash in Treasury. – Cashbook for Cash in Treasury (Annex 19) shall be used to
record collections (Debit column) and deposits to the bank (Credit column) based on the RCD. The
cashbook shall be maintained by the Treasurer by fund and shall be updated and balanced daily. The
Accountable Officer shall, at the end of the month or when required to do so by proper competent
authority, rule and foot the cashbook. He shall likewise accomplish the following certification in the
cashbook:
I HEREBY CERTIFY that the foregoing is a correct and complete record of the cash transactions had by
me in my capacity as Treasurer/Cashier of ___________ during the period from ____________, 20___ to
___________, 20__, inclusive, as indicated in the corresponding columns.
Signature Over Printed Name

________________, 20___
Deposits shall also be recorded in the debit column of the Cashbook – Cash in Bank.
Sec. 27. Cashbook – Cash in Bank. – Cashbook for Cash in Bank (Annex 20) shall be used to record
deposits of collections (Debit column) and withdrawals from the bank thru issuance of checks (Credit
column). The cashbook shall be maintained by bank account and by fund and shall be updated and
balanced daily. The Accountable Officer shall, at the end of the month or when required to do so by
proper competent authority, rule and foot the cashbook. He shall likewise accomplish the following
certification in the cashbook:
me in my capacity as Treasurer/Cashier of ___________ during the period from ____________, 20___ to

________________, 20___
Sec. 28. Cashbook – Cash Advances. – The accountable officer shall maintain a cashbook for cash
advances (Annex 21) to record the cash advances received (Debit column) and payments, refunds and
adjustments (Credit column) and the balance (Balance column). The Accountable Officer shall, at the end
of the month or when required to do so by proper competent authority, rule and foot the cashbook. He
shall likewise accomplish the following certification in the cashbook:
me in my capacity as Disbursing Officer of ___________ during the period from ____________, 20___ to

________________, 20___
CHAPTER 2. ACCOUNTING FORMS AND REPORTS
Sec. 29. Accounting Forms and Reports. – The Accounting Forms and Reports constitute the means
by which financial transactions and information are reported and recorded in the journals.
Sec. 30. Allotment and Obligation Slip (ALOBS). – The Allotment and Obligation Slip (Annex 22) shall
be used to record allotments received and to request for obligation charged against the allotments. It shall
be prepared before processing the claim to ensure that funds are available for the purpose.
Sec. 31. Journal Entry Voucher (JEV). – The Journal Entry Voucher (Annex 23)shall be used for all
transactions of the government, whether cash receipts, cash/check disbursements or non-cash
transactions. It shall be prepared by the Accounting Unit based on transaction documents presented.
Accounting journal entries shall be reflected therein and it shall serve as the basis for recording the
transactions in the appropriate journals.
Sec. 32. Disbursement Voucher (DV). – The Disbursement Voucher (Annex 24) shall be used by local
government agencies for all money claims. The number shall be indicated on the DV and on every
supporting document of the claim. The supporting documents shall be listed on the face of the voucher
and in case more space is needed, the back of the DV shall be used.
Sec. 33. Petty Cash Voucher (PCV). – The Petty Cash Voucher (Annex 25) shall be used for
disbursements out of the Petty Cash Funds.
Sec. 34. General Payroll (GP). – The General Payroll (Annex 26) shall be used for the payment of
salaries, wages, overtime pay, honoraria and other emoluments of government officers and employees.
Sec. 35. Daily Wage Payroll (DWP). – The Daily Wage Payroll (Annex 27) shall be used for claims of
laborers/casual employees and other daily wage earners.
Sec. 36. Index of Payment (IP). – The Index of Payment (Annex 28) shall be used to record payments
made to each employee, supplier, and other agency creditor.
Sec. 37. Purchase Order (PO).– The Purchase Order (Annex 29) shall be used to support purchase of
equipment, supplies and materials, etc.
Sec. 38. Purchase Request (PR). – The Purchase Request (Annex 30) shall be used to request for the
purchase of inventory/item not available on stock and it shall be the basis of preparing the Purchase
Order.
Sec. 39. Acceptance and Inspection Report (AIR). – The Acceptance and Inspection Report (Annex
31) shall be used to acknowledge the receipt of supplies and equipment purchased and inspection made
thereof.
Sec. 40. Supplies Availability Inquiry (SAI). – The Supplies Availability Inquiry (Annex 32) shall be used
to inquire the availability of supplies on stock from the Accounting Unit.
Sec. 41. Requisition and Issue Slip (RIS). – The Requisition and Issue Slip (Annex 33) shall be used to
request supplies and materials that are carried in stock.
Sec. 42. Acknowledgement Receipt for Equipment (ARE). – The Acknowledgement Receipt for
Equipment (Annex 34) shall be used to report on the receipt of property and equipment for official use
from the Property Officer.
Sec. 43. Summary of Supplies and Materials Issued (SSMI). – The Summary of Supplies and
Materials Issued (Annex 35) shall be prepared weekly by the Supply Officer and shall be used by the
Accounting Unit as a basis in preparing the JEV to record the supplies and materials issued.
Sec. 44. Stock Card (SC). – The Stock Card (Annex 36) shall be used to record all receipts and
issuances of supplies. It shall be maintained by the Supply and Property Unit for each item in stock.
Sec. 45. Property Card (PC). – The Property Card (Annex 37) shall be used by the Supply and Property
Unit to record the acquisition, description, custody, disposal and other information about the property,
plant and equipment. It shall be kept for each class of property, plant and equipment.
Sec. 46. Work, Other Animals and Breeding Stocks Property Card (WOABSPC). – The Work, Other
Animals and Breeding Stocks Property Card (Annex 38) shall be used by the Property Office to record
details on the acquisition, birth of offspring and disposition of work, other animals and breeding stocks.
Sec. 47. Check Register. – The Check Register (Annex 39) shall be used to record all checks issued
and where claimants shall be required to acknowledge receipt of the check.
Sec. 48. Accountant’s Advice of Local Check Disbursements. – An Accountant’s Advice of Local
Check Disbursements (Annex 40) shall be prepared by the Accountant daily for each depository account,
in four copies to be distributed as follows:
Original – Bank

Duplicate – Accountant
Triplicate – Treasurer
Quadruplicate – Auditor
Sec. 49. Report of Collections and Deposits (RCD). – The Report of Collections and Deposits (Annex
41) shall be prepared by the following:
1. Collectors – for collections received and remittances made.

2. Liquidating Officers– for collections received from collectors and remittances to the
Treasurer/Cashier.
3. Treasurer/Cashier– for collections received from liquidating officers, taxpayers and other
sources and deposits to depository banks.
The RCD shall consist of four (4) sections, namely: Section A for Collections; Section B for
Remittances/Deposits; Section C for the Report on the Accountability for Accountable Forms; and Section
D for the Summary of Collections and Remittances/ Deposits.
Section A is composed of two parts: Part 1 for collections made by collecting officers as well as the type
of accountable forms issued, serial numbers and amount of collections; and Part 2 for collections made
by liquidating officers/treasurers from collecting officers. Section B presents remittances of
collecting/liquidating officers to treasurers and deposits of treasurers to depository bank. Section C
reports on the accountability for accountable forms which shall include the name of forms and number,
beginning balance, received, issued and ending balance. Section D contains the summary of collections
and remittances/deposits and breakdown of collections as to cash and details of checks received.
The accountable officer shall certify as to the correctness of the report. The liquidating officer/treasurer
shall verify the report and acknowledge receipt of collections/remittances.
The report and all supporting documents shall be submitted to the Accountant for the preparation of the
JEV.
Sec. 50. Report of Accountability for Accountable Forms (RAAF). – The Report of Accountability for
Accountable Forms (Annex 42) shall be used to report the quantity of accountable forms received, issued
or cancelled by the accountable officer as of the end of the month.
Treasurers/Collectors/tellers and other accountable officers shall render this report of accountability for
accountable forms at the end of the month for consolidation by the local treasurer. Such report shall also
be prepared in case of transfer of office or accountability by the accountable officer.
Sec. 51. Consolidated Report of Accountability for Accountable Forms (CRAAF). – The
Consolidated Report of Accountability for Accountable Forms (Annex 43) shall be prepared by the
Treasurer to consolidate the RAAF of accountable officers. The consolidated report accompanied by the
individual reports shall be submitted to the unit auditor concerned for verification not later than the fifth
day of the ensuing month.
Sec. 52. Abstract of Real Property Tax Collections. – The Abstract of Real Property Tax Collections
(Annex 44) shall be prepared by the accountant to facilitate the distribution of real property tax collections.
At the end of the month a copy of the abstract shall be submitted to the Provincial Accountant for
reconciliation.
Sec. 53. Liquidation Report (LR). – The Liquidation Report (Annex 45) shall be prepared by the
concerned employees/officers concerned to liquidate cash advances for travel or for other purposes
except those cash advances granted to Regular/Special Disbursing Officer.
Sec. 54. Report of Disbursements (RD). – The Report of Disbursements (Annex 46) shall be prepared
by the Accountable/Disbursing Officers to support the liquidation of their cash advances. The report shall
be certified as to correctness by the Disbursing Officer and forwarded to the Accounting Unit for the
preparation of the JEV.
Sec. 55. Report of Checks Issued (RCI). – The Report of Checks Issued (Annex 47) shall be prepared
by the Cashier/Disbursing Officers daily to report checks issued during the period including cancelled
ones.
Sec. 56. Report on the Physical Count of Inventories (RPCI). – The Report on the Physical Count of
Inventories (Annex 48) shall be used to report the physical count of supplies by type of inventory as of a
given date. It shows the balance of inventory items per cards and per count and shortage/overage, if any.
Sec. 57. Report on the Physical Count of Property, Plant and Equipment (RPCPPE). – The Report
on the Physical Count of Property, Plant and Equipment (Annex 49) shall be used to report the physical
count of property, plant and equipment by type as of a given date. It shows the balance of property and
equipment per cards and per count and shortage/overage, if any.
Sec. 58. Waste Materials Report (WMR). – The Waste Materials Report (Annex 50) shall be used to
report all waste materials such as destroyed spare parts and other materials considered scrap due to
replacement.
Sec. 59. Inventory and Inspection Report for Unserviceable Property (IIRUP). – The Inventory and
Inspection Report for Unserviceable Property (Annex 51) shall be used as basis to record dropping from
the books the unserviceable properties carried in the Property, Plant and Equipment and Inventory
accounts.
CHAPTER 1. INTRODUCTION
Sec. 1. Definition. – The Chart of Accounts provides the framework within which the accounting records
are constructed. It is a list of general ledger accounts consisting of real and nominal accounts.
Sec. 2. Rationale. – The Chart of Accounts is prescribed for use by all sectors of the government. The
descriptions of all the accounts and the instructions as to when these are to be debited and credited are
provided to achieve uniformity in the recording of government financial transactions.
Sec. 3. Elements of Financial Statements. – Elements of financial statements of government agencies

are those elements that relate to the status or measurement of financial position and measurement of
performance of government agencies which are relevant to decisions that would require the commitment
of resources. Those elements directly related to the measurement of financial positions as shown in the
balance sheet are assets, liabilities and equity. The elements directly related to the measurement of
performance which is shown in the Statements of Income and Expenses are revenue/income and
expenses. The definitions of the different elements are as follows.
a. Assets – economic resources of an agency that are recognized and measured in

conformity with generally accepted accounting principles. Assets also include certain
deferred charges that are not resources but that are recognized and measured in
conformity with generally accepted accounting principles.
b. Liabilities – economic obligations of an agency that are recognized and measured in
conformity with generally accepted accounting principles. Liabilities also include certain
deferred credits that are not obligations but that are recognized and measured in
conformity with generally accepted accounting principles.
c. Equity – the interest of the government in an agency which is the excess of an agency’s
assets over its liabilities.
d. Revenue/Income – increase in economic benefits during the accounting period in the
form of inflows or enhancements of assets or decreases of liabilities that results in
increases in equity.
e. Expenses – decreases in economic benefits during an accounting period in the form of
outflow or depletions of assets or incurrence of liabilities that results in decrease in
equity.
Sec. 4. Balance Sheet Accounts. – The balance sheet accounts consist of assets, liabilities and equity.
These are classified into the following:
Assets –
Current Assets
Cash
Receivables
Marketable Securities
Inventories
Prepaid Expenses
Other Current Assets
Long-Term Investments
Property, Plant and Equipment
Other Assets
Liabilities –
Current Liabilities
Long-Term Liabilities
Other Liabilities
Equity –
Government Equity
Project Equity
Sec. 5. Revenue/Income and Expense Accounts. – The revenue/income and expense accounts
consist of the following:
Revenue/Income –
General Income Accounts
Agency Specific Income Accounts
Expenses –
Personal Services
Maintenance and Other Operating Expenses
Financial Expenses
Sec. 6. Classification of Revenue/Income. – The revenue/income accounts are classified into:
a. General Income Accounts – This account group encompasses all types of

revenue/income generated by all sectors of government in the exercise of their
administrative and regulatory function, income from public enterprises/investments, and
income from grants and donations including subsidies.
b. Specific Income Accounts – This account group encompasses all taxes, fees and
charges imposed by a specific sector of government for taxes due on income, property,
use or sale of goods and services, international trade and transactions and other taxes as
well as those arising from their regulatory and proprietary functions.
Sec. 7. Classification of Expenses. - The expense accounts are classified into:
a. Personal Services (PS) – This account classification includes basic pay, allowances,
bonus, cash gifts, incentives and benefits and other personnel benefits of officers and
employees of the government.
b. Maintenance and Other Operating Expenses (MOOE) – This account classification
includes expenses necessary for the regular operation of an agency like traveling
expenses, repairs and maintenance, subsidies, etc.
c. Financial Expenses (FE) - This account classification includes bank charges, interest
expenses, commitment charges and other financial charges. It also includes losses
incurred relative to foreign exchange transactions.
Sec. 8. Intermediate Accounts. –The intermediate accounts are accounts which are closed ultimately to
the Government Equity account at the end of accounting period.
Sec. 9. Account Codes. –The New of Chart of Account consists of three-digit codes grouped as follows:
Accounts Account Code
Assets 100-299
Asset Contra Accounts 300-399
Liabilities 400-499
Equity 500-599
Revenue/Income 600-799
General Account 600-699
Agency Specific Account 700-799
Expenses 800-999
Personal Services 801-830
Maintenance and Other 831-950

Operating Expenses
Financial Expenses 951-960
Chapter 2. THE CHART OF ACCOUNTS
Sec. 10. The Chart of Accounts. – The Chart of Accounts is prescribed for use of the national
government agencies, local government units and government-owned and/or controlled
corporations.

CHART OF ACCOUNTS
Account Code Account Title
ASSETS
Current Assets
Cash
101 Cash in Treasury
102 * Cash – National Treasury, Modified Disbursement System (MDS)
103 * Cash – Bangko Sentral ng Pilipinas
105 Petty Cash Fund
106 * Cash – Collecting Officers
107 Cash – Disbursing Officers
110 Cash in Bank – Local Currency, Current Account
111 Cash in Bank – Local Currency, Savings Account
112 Cash in Bank – Local Currency, Time Deposits
113 Cash in Bank – Foreign Currency, Current Account
114 Cash in Bank – Foreign Currency, Savings Account
115 Cash in Bank – Foreign Currency, Time Deposits
Receivables
121 Accounts Receivable
122 Notes Receivable
123 Loans Receivable, Current
124 Real Property Tax Receivable
125 Special Education Tax Receivable
126 Interest Receivable
127 * Currency Swap Receivables
128 Due from Officers and Employees
129 Due from Other Funds
130 Due from NGAs
131 Due from LGUs
132 Due from GOCCs
133 Due from NGOs/POs
134 * Due from National Treasury
135 * Due from Central Office
136 * Due from Regional Offices/Staff Bureaus
137 * Due from Operating Units
138 Receivables – Disallowances/Charges
139 Other Receivables
301 Allowance for Doubtful Accounts
Marketable Securities

140 Treasury Bills
141 Stocks
142 Bonds
143 Other Marketable Securities

Inventories
144 Raw Materials Inventory
145 Work In Process Inventory
146 Finished Goods Inventory
147 Merchandise Inventory
148 Accountable Forms Inventory
149 Office Supplies Inventory
150 Medical, Dental and Laboratory Supplies Inventory
151 Food/Non-Food/Supplies Inventory
152 Gasoline, Oil and Lubricants Inventory
153 Agricultural Supplies Inventory
154 Livestock and Crops Inventory
155 Spare Parts Inventory
156 Construction Materials Inventory
157 Other Agricultural Products Inventory
158 Confiscated Goods Inventory
160 Other Inventory Items
Prepaid Expenses

161 Prepaid Rent
162 Prepaid Insurance
164 Prepaid Interest
165 Other Prepaid Expenses
Other Current Assets

166 Guaranty Deposits
167 Deposits on Letters of Credit
168 Advances to Contractors
170 Other Current Assets
Long-Term Investments

171 Loans Receivable – Long-Term, LGUs
172 * Loans Receivable – Long-Term, GOCCs
173 Loans Receivable – Long-Term, Others
174 Investments in Stocks
175 Investments in Bonds
176 Investments in GOCCs
177 Sinking Fund – Cash
178 Sinking Fund – Securities
179 Other Long-Term Investments
Property, Plant and Equipment
201 Land
202 Land Improvements
302 Accumulated Depreciation – Land Improvements
203 Leasehold Improvements
303 Accumulated Depreciation – Leasehold Improvements
204 Buildings
304 Accumulated Depreciation – Buildings
205 School Buildings
305 Accumulated Depreciation – School Buildings
206 Markets and Slaughterhouses
306 Accumulated Depreciation – Markets and Slaughterhouses
207 Hospitals and Health Centers
307 Accumulated Depreciation – Hospitals and Health Centers
208 Other Structures
308 Accumulated Depreciation – Other Structures
209 Industrial Machineries
309 Accumulated Depreciation – Industrial Machineries
210 Other Machineries
310 Accumulated Depreciation – Other Machineries
211 Firefighting Equipment and Accessories
311 Accumulated Depreciation – Firefighting Equipment and Accessories
212 Construction and Heavy Equipment
312 Accumulated Depreciation – Construction and Heavy Equipment
214 Technical and Scientific Equipment
314 Accumulated Depreciation – Technical and Scientific Equipment
215 I T Equipment and Software
315 Accumulated Depreciation – IT Equipment
216 Telegraph, Telephone, Cable, TV and Radio Equipment
316 Accumulated Depreciation - Telegraph, Telephone, Cable, TV
and Radio Equipment
217 Artesian Wells, Reservoirs, Pumping Stations and Conduits.
317 Accumulated Depreciation – Artesian Wells, Reservoirs, Pumping
Stations and Conduits
218 Motor Vehicles
318 Accumulated Depreciation – Motor Vehicles
219 Watercrafts
319 Accumulated Depreciation – Watercrafts
220 Trains
320 Accumulated Depreciation – Trains
221 Aircrafts/Aircraft Ground Equipment
321 Accumulated Depreciation – Aircrafts/Aircraft Ground Equipment
222 Office Equipment
322 Accumulated Depreciation – Office Equipment
223 Other Equipment
323 Accumulated Depreciation – Other Equipment
224 Furniture and Fixtures
324 Accumulated Depreciation – Furniture and Fixtures
225 Ordnance
325 Accumulated Depreciation – Ordnance
226 Books
326 Accumulated Depreciation – Books
227 Other Property, Plant and Equipment
327 Accumulated Depreciation – Other Property, Plant and Equipment
228 Work/Other Animals
229 Breeding Stocks
230 Construction in Progress – Agency Assets
231 Construction in Progress – Plaza, Parks and Monuments
232 Construction in Progress – Roads, Highways and Bridges
233 Construction in Progress – Ports, Lighthouses, Harbors, Seawalls, River
Walls and Others
234 Construction in Progress – Airports and Runways
235 Construction in Progress – Railways
236 Construction in Progress – Waterways, Aqueducts, etc.
237 Construction in Progress – Irrigation, Canals and Laterals
238 Construction in Progress – Electrification, Power and Energy Structures
241 Construction in Progress – Other Public Infrastructures
242 Construction in Progress – Reforestation Projects
243 Public Infrastructures
244 Reforestation Projects
245 Arts, Archeological Specimen and Other Exhibits
249 Items in Transit
Other Assets

251 Other Assets
LIABILITIES AND EQUITY
LIABILITIES
Current Liabilities
401 Accounts Payable
402 Notes Payable
403 Loans Payable – Current, Domestic
404 * Loans Payable – Current, Foreign
406 Interests Payable
407 * Tax Refunds Payable
408 Guaranty Deposits Payable
409 * Tax Credit Certificates Payable
410 Withholding Taxes Payable
411 GSIS Payable
412 PAG-IBIG Payable
413 PHILHEALTH Payable
414 Performance/Bidders/Bail Bonds Payable
427 * Currency Swap Payable
428 Due to Officers and Employees
429 Due to Other Funds
430 Due to NGAs
431 Due to LGUs
432 Due to GOCCs
433 * Due to National Treasury
435 * Due to Central Office
436 * Due to Regional Offices/Staff Bureaus
437 * Due to Operating Units
439 Retirement Gratuity Benefits Payable
440 Deferred Credits to Income
441 Other Deferred Credits
448 Deferred Real Property Tax Income
449 Deferred Special Education Tax Income
450 Other Payables
Long-Term Liabilities
451 Loans Payable – Long-Term, Domestic
452 * Loans Payable – Long-Term, Foreign
453 Mortgage Payable
454 Bonds Payable – Long-Term, Domestic
455 * Bonds Payable – Long-Term, Foreign
460 Other Long-Term Liabilities
Other Liabilities

465 Other Liabilities
EQUITY
501 Government Equity
502 Project Equity
Intermediate Accounts

531 Cost of Goods Sold
532 Income and Expense Summary
533 Prior Years’ Adjustments
534 Retained Operating Surplus
537 Invested Equity
538 * Subsidy to Regional Offices/Staff Bureaus
539 * Subsidy to Operating Units
540 * Gain or Loss on Unreconciled Accounts
REVENUE/INCOME
General Income Account

601 * Subsidy Income from National Government
602 * Subsidy from Central Office
603 * Subsidy from Regional Office/Staff Bureaus
604 Subsidy from Other LGUs
605 Subsidy from Other Funds
606 Subsidy from Special Accounts
611 * Income from Government Services
612 * Income from Government Business Operations
613 Sales Revenue
621 * Rent Income
622 * Insurance Income
623 Dividend Income
624 Interest Income
625 Gain on Sale of Securities
626 Gain on Sale of Assets
627 Sale of Confiscated Goods and Properties
628 Foreign Exchange (FOREX) Gain
639 Miscellaneous Operating and Service Income
641 Fines and Penalties – Government Services and Business Operations
651 Income from Grants and Donations
Specific Income Account
Income Taxes

701 * Income Tax – Individuals
702 * Income Tax – Partnership
703 * Income Tax – Corporations
Property Taxes

711 Real Property Tax
712 Property Transfer Tax
713 Special Education Tax
714 Special Assessment Tax
715 Real Property Tax on Idle Lands
716 * Stock Transfer Tax
717 * Capital Gains Tax
718 * Donors' Tax
719 * Estate Tax
Taxes on Goods and Services
721 * Excise Taxes on Articles
722 * Value Added Tax
723 Business Taxes and Licenses
724 Franchise Tax
725 Professional Tax
726 Occupation Tax
727 Printing and Publication Tax
735 Miscellaneous Taxes on Goods and Services
Taxes on International Trade and Transactions

736 * Import Duties
Other Taxes

741 * Documentary Stamp Tax
742 Community Tax
743 * Science Stamp Tax
745 Weights and Measures
746 Share from Internal Revenue Collections
747 Share from Tobacco Excise Tax
748 Share from Economic Zones
749 Share from Expanded Value Added Tax (EVAT)
750 Share from National Wealth
751 Amusement Tax
752 Sand and Gravel Tax
753 Tax on Delivery Trucks and Vans
754 * Tax on Forest Products
755 * Immigration Taxes
759 Miscellaneous Other Taxes
760 Fines and Penalties – Tax Revenue
Other Specific Income

761 Registration Fees
762 Tuition/Affiliation Fees
763 Hospital Fees
764 Medical, Dental and Laboratory Fees
765 Library Fees
766 Athletic and Cultural Fees
767 Comprehensive Examination Fees
768 Transcript of Records Fees
769 Diploma and Graduation Fees
770 Inspection Fees
771 Permit Fees
772 Garbage Fees
773 Clearance/Certification Fees
774 * Franchising/Licensing Fees
775 Fishery Rentals, Fees and Charges
776 Printing and Publication Income
777 Income from Canteen Operations
778 Income from Dormitory Operations
779 Receipts from Lease of Properties
780 Receipts from Communication Facilities
781 Receipts from Waterworks Systems
782 Receipts from Transportation Systems
783 Receipts from Markets
784 Receipts from Slaughterhouses
785 Receipts from Cemeteries
786 Toll Fees
787 Landing and Parking Fees
788 Other Income from School Services
789 Other Income from School Business Operations
790 Other Income from Hospital Services
791 Other Income from Hospital Business Operations
792 Other Specific Income of LGUs
799 Fines and Penalties – Other Specific Income
EXPENSES
Personal Services

801 Salaries and Wages – Regular Pay
802 Salaries and Wages – Part Time Pay
803 Salaries and Wages – Casual/Contractual
804 Personnel Economic Relief Allowance (PERA)
805 Additional Compensation (ADCOM)
806 Representation Allowance (RA)
807 Transportation Allowance (TA)
808 Clothing Allowance
809 Honoraria
810 Hazard Pay
811 Overtime and Night Pay
812 Holiday Pay
813 Christmas Bonus
814 Cash Gift
815 Productivity Incentive Benefits
816 Other Bonuses and Allowances
817 Life and Retirement Insurance Contributions
818 PAG-IBIG Contributions
819 PHILHEALTH Contributions
820 ECC Contributions
821 Pension and Retirement Benefits
822 Terminal Leave Benefits
823 Health Workers’ Benefits
824 Subsistence and Quarters’ Allowances
825 Longevity Pay
830 Other Personnel Benefits
Maintenance and Other Operating Expenses

831 Traveling Expenses – Local
832 Traveling Expenses – Foreign
833 Training and Seminar Expenses
834 Water
835 Electricity
836 Cooking Gas
837 Telephone/Telegraph and Internet
838 Postage and Deliveries
839 Subscription Expenses
840 Advertising Expenses
841 Rent Expense
842 Insurance Expense
843 Fidelity Bond Premium
844 Survey Expense
845 Storage Expense
846 Zoological/Animal Maintenance Expenses
847 Printing and Binding Expenses
848 Accountable Forms Expenses
849 Office Supplies Expenses
850 Medical, Dental and Laboratory Supplies Expenses
851 Food/Non-Food Expenses
852 Gasoline, Oil and Lubricants Expenses
853 Agricultural Supplies Expenses
854 Legal Services
855 Auditing Services
856 Consultancy Services
857 General Services
858 Security and Janitorial Services
859 Taxes, Duties and Licenses
860 Tax Credit Subsidy
861 * Tax Exemption Expenses
862 Public Infrastructure Repairs and Maintenance
863 Reforestation Project Maintenance
864 Buildings Maintenance
865 School Buildings Maintenance
866 Markets and Slaughterhouses Maintenance
867 Hospitals and Health Centers Maintenance
868 Other Structures Maintenance
869 Industrial Machineries Maintenance
870 Other Machineries Maintenance
871 Firefighting Equipment and Accessories Maintenance
872 Construction and Heavy Equipment Maintenance
874 Technical and Scientific Equipment Maintenance
875 IT Equipment Maintenance
876 Telegraph, Telephone, Cable, TV and Radio Equipment Maintenance
877 Artesian Wells, Reservoirs, Pumping Stations & Conduits Maintenance
878 Motor Vehicles Maintenance
879 Watercrafts Maintenance
880 Trains Maintenance
881 Aircrafts/Aircraft Ground Equipment Maintenance
882 Office Equipment Maintenance
883 Other Equipment Maintenance
884 Furniture and Fixtures Maintenance
885 Ordnance Maintenance
886 Other Repairs and Maintenance
887 Awards and Indemnities
888 Rewards and Other Claims
889 Grants and Donations
890 Representation Expense
891 Extraordinary and Miscellaneous Expenses
892 Confidential and Intelligence Expenses
893 Anti-insurgency/Contingency Expenses
894 Subsidy to National Government Agencies
895 Subsidy to Local Government Units
896 Subsidy to Government Corporations
897 Subsidy to Other Funds
898 Subsidy to Special Accounts
901 Membership Dues to International Institutions
902 Depreciation – Land Improvements
903 Depreciation – Leasehold Improvements
904 Depreciation – Buildings
905 Depreciation – School Buildings
906 Depreciation – Markets and Slaughterhouses
907 Depreciation – Hospitals and Health Centers
908 Depreciation – Other Structures
909 Depreciation – Industrial Machineries
910 Depreciation – Other Machineries
911 Depreciation – Firefighting Equipment and Accessories
912 Depreciation – Construction and Heavy Equipment
914 Depreciation – Technical and Scientific Equipment
915 Depreciation – IT Equipment
916 Depreciation – Telegraph, Telephone, Cable, TV and Radio Equipment
917 Depreciation – Artesian Wells, Reservoirs and Pumping Stations and
Conduits
918 Depreciation – Motor Vehicles
919 Depreciation – Watercrafts
920 Depreciation – Trains
921 Depreciation – Aircrafts/Aircraft Ground Equipment
922 Depreciation – Office Equipment
923 Depreciation – Other Equipment
924 Depreciation – Furniture and Fixtures
925 Depreciation – Ordnance
926 Depreciation – Books
927 Depreciation – Other Property, Plant and Equipment
928 Obsolescence – IT Software
929 Bad Debts Expense
937 Discount on Real Property Tax
938 Discount on Special Education Tax
947 Loss on Sale of Assets
948 Loss of Assets
950 Other Expenses
Financial Expenses

951 Bank Charges
952 Interest Expenses
953 * Commitment Charges
954 Documentary Stamps Expenses
955 Other Financial Charges
956 Foreign Exchange (FOREX) Loss
957 * Debt Services Subsidy to GOCCs
958 * Loss on Guaranty

* For Use of National Government Agencies

CHAPTER 3. DESCRIPTION OF ACCOUNTS
Sec. 11. Description of Accounts. Each account in the chart of accounts is

defined/described. Instructions on when to debit and credit the balance sheet and intermediate
accounts are also presented.
ASSETS
CASH
Sec. 12. Cash in Treasury (101). This account is used to record in the books of local
government units the amount of cash in their respective Treasuries.
Debit this account for:
Central Bank notes, coins, checks, bill of exchange and drafts
received by local treasurers
Money order received by local treasurers
Other legal tenders received
Credit this account for:
Deposits with depository banks

Withdrawals or reductions of the above items
Sec. 13. Petty Cash Fund (105). This account is used to record in the books of the agency,
the cash advances granted to regular or special disbursing officers for the creation of Petty
Cash Fund and payment of petty or miscellaneous authorized expenditures which cannot be
conveniently paid by check.
Cash advances granted as Petty Cash Fund to duly designated

regular or special disbursing officers for payment of petty or
miscellaneous authorized expenditures
Final liquidation of Petty Cash Fund

Refund of unused portion at year-end
Sec. 14. Cash – Disbursing Officers (107). This account is used to record the amount of
cash advances granted to either regular or special disbursing officers of the agency.
Cash advances to duly designated regular or special disbursing

officers for payment of salaries and wages
Cash advances to postmasters and telegraph operators for
authorized disbursements
Cash advance to special disbursing officers for specific purpose or
activity
Liquidation/Authorized official payments made by disbursing

officers/postmasters/telegraph operators
Refund of unused portion of advances upon completion of the
purpose/activity or at end of year
Incurrence of cash shortage
Sec. 15. Cash in Bank – Local Currency, Current Account (110). This account is used to
record deposits/withdrawals in local currency in a current account maintained with Authorized
Government Depository Banks (AGDBs).
Deposits of local currency in current account

Credit advices/memos received
Interest earned net of withholding tax
Checks issued
Debit advices/memos received
Sec. 16. Cash in Bank – Local Currency, Savings Account (111). This account is used to
record deposits/withdrawals in local currency in a savings account maintained with AGDBs.
Deposits of local currency in savings account

Withdrawal or reduction of deposits

Sec. 17. Cash in Bank – Local Currency, Time Deposits (112). This account is used to
record placement in local currency of excess cash or cash not earmarked for immediate use
with AGDBs for a specified period.
Deposits of local currency for a specific period

Withdrawal of deposits or redemption upon maturity

Sec. 18. Cash in Bank – Foreign Currency, Current Account (113). This account is used
to record deposits and withdrawal in foreign currency in current account maintained with
AGDBs.
Deposits of foreign currency in current account

Credit advices /memos received
Checks issued
Sec. 19. Cash in Bank – Foreign Currency, Savings Account (114). This account is used
to record deposits/withdrawals in foreign currency in savings account maintained with AGDBs.
Deposits of foreign currency in savings account

Withdrawals or reduction of deposits

Sec. 20. Cash in Bank – Foreign Currency, Time Deposits (115). This account is used to
record time deposits in foreign currency maintained with AGDBs.
Deposits of foreign currency for a specific period

Withdrawals or reduction of deposits due to redemption at maturity
RECEIVABLES
Sec. 21. Accounts Receivable (121). This account is used to record the amount due from
customers/clients resulting from services rendered, trading/business transactions or sale of
merchandise or property which are expected to be collected in the regular course of business
or over a definite period.
Services rendered on account

Sale of merchandise or property on account
Other amount due from customers/client resulting from
trading/business
transactions/ operations
Collection of the amount due from customers/ clients

Authorized write-off of accounts
Sec. 22. Notes Receivable (122). This account is used to record the value of promissory
notes, time drafts, trade acceptances and other negotiable short-term instruments from trade
debtors.
Value of promissory notes, time drafts, trade acceptances and other

negotiable short-term instruments received
Collections made from promissory notes, time drafts, trade

acceptances
and other negotiable short-term instruments
Sec. 23. Loans Receivable, Current (123). This account is used to record the amount of
short-term loans and current portion of long-term loans granted by the LGU to duly authorized
recipients in accordance with existing agreement.
Short-term loans granted to duly authorized recipients

Current portion of long-term loans receivables
Collections made from the loans granted

Sec. 24. Real Property Tax Receivable (124). This account is used to record the amount
due from taxpayers for basic real property taxes.
Amount due from taxpayers for basic real property taxes
Collection of the amount due from taxpayers
Sec. 25. Special Education Tax Receivable (125). This account is used to record the
amount due from taxpayers for additional levy on real property taxes accruing to Special
Education Fund.
Amount due from taxpayers for additional levy on real property taxes
Collection of the amount due from taxpayers
Sec. 26. Interest Receivable (126). This account is used to record the uncollected interest
earned from short term/long term investments.
Interest earned but not yet collected
Collection of the interest earned Authorized write-off of accounts
Sec. 27. Due from Officers and Employees (128). This account is used to record the
amount due from officers and employees of the agency and advances granted for official
travels.

Overpayment of salaries, fringe benefits and other emoluments
Cash shortages
Cash Advances granted for travel (local and foreign) subject to
liquidation
Other receivables from officers and employees
Collection of overpayment of salaries, fringe benefits and other

emoluments
Collections of cash shortages
Liquidation of cash advances granted for travel
Refund of excess/unused portion of cash advances
Sec. 28. Due from Other Funds (129). This account is used to record the amount due from
other funds of the LGUs.
Receivables from other funds of LGUs
Receipt of amount due from other funds of LGUs
Sec. 29. Due from NGAs (130). This account is used to record the amount due from
departments, bureaus and other offices of the National Government.
Amount advanced for the account of NGAs

Overpayment to NGAs
Amount due from DBM for IRA, Share from National Wealth,
etc. covered by allotment advice
Adjustment
Collection of receivables from NGAs

Receipt of IRA
Sec. 30. Due from LGUs (131). This account is used to record the amount due from
provinces, cities, municipalities, barangays and other local government units.
Advances granted to LGUs

Share of LGUs from Real Property Tax (Basic and additional)
Overpayment to LGUs
Collections of receivables from LGUs

Sec. 31. Due from GOCCs (132). This account is used to record the amounts due from
Government-Owned and/or Controlled Corporations including Government Financial
Institutions (GFIs).
Amount paid for the account of GOCCs/GFIs

Insurance claim from General Insurance Fund of GSIS
Overpayment to GOCCs/GFIs
Loans granted to GOCCs/GFIs
Collections of receivables from GOCCs/GFIs

Sec. 32. Due from NGOs/POs (133). This account is used to record the release of funds
entrusted to Non-Governmental Organizations/Peoples’ Organizations (NGOs/POs) for the
implementation of government projects.
Release of funds entrusted to NGOs/POs
Liquidation of funds entrusted to NGO/POs

Refund of unused fund
Sec. 33. Receivables – Disallowances/Charges (138). This account is used to record the
amount due from officers and employees and those outside of government agencies for audit
disallowances/charges which have become final and executory.
Amount due from officers and employees resulting from audit

disallowances/charges which have become final and
executory
Amount due from contractors, suppliers or entities resulting
from audit disallowances/ charges which have become
final and executory
Cash settlement of audit disallowances/charges

Compliance to requirements or non-cash settlement
Sec. 34. Other Receivables (139). This account is used to record the amount due from other
debtors, not falling under any of the specific types of receivables.
Amount due from debtors and entities which cannot be

classified under the specific receivable accounts
Collection of the amount due from other debtors

Authorized write-off
Sec. 35. Allowance for Doubtful Accounts (301). This account is used to record the
reduction in the value of trade receivable accounts which is estimated as uncollectible.
Accounts of customer/clients which have been determined to be

uncollectible for which authority to write-off has been granted
Estimated amount of uncollectible accounts
MARKETABLE SECURITIES
Sec. 36. Treasury Bills (140). This account is used to record purchase/acquisition of short-
term debt instruments issued by the National Government, the maturity of which is within one
year.
Cost of treasury bills purchased
Resale or disposition of treasury bills
Sec. 37. Stocks (141). This account is used to record the cost of stocks acquired as
temporary investments.
Purchase of stocks
Sale/resale or disposition of stocks
Sec. 38. Bonds (142). This account is used to record the cost of bonds acquired as
temporary investments.
Purchase of bonds
Resale or disposition of bonds
Sec. 39. Other Marketable Securities (143). This account is used to record the cost of other
marketable securities acquired as temporary investments.
Purchase of other types of marketable securities
Resale or disposition of other types of marketable securities

INVENTORIES
Sec. 40. Raw Materials Inventory (144). This account is used to record the value of raw
materials purchased for use in production.
Raw materials purchased for use in production
Raw materials issued for use in production

Inventory shortage/loss
Sec. 41. Work-In-Process Inventory (145). This account is used to record the cost and/or
other appropriate value of job or work orders which have been started but unfinished or still in
the process of manufacture as of the end of the accounting period.
Raw materials, labor and overhead put into production
Cost or value of the finished products

Sec. 42. Finished Goods Inventory (146). This account is used to record the cost of
completed job or work orders and goods manufactured/produced/processed.
Cost or value of the finished products
Finished products transferred to Merchandise Inventory Account

Finished products issued
Sec. 43. Merchandise Inventory (147). This account is used to record the cost or other
appropriate value of merchandise and other property which have been purchased or produced
for sale. It includes but not limited to drugs and medicines for hospitals/sanitaria, finished
products fabricated/manufactured/ produced out of agency/schools’ manufacturing operations
which are intended for sale.
Articles purchased for sale

Goods or merchandise for sale which have been manufactured
or produced, conversion cost of which have been charged
to appropriations or allotments
Cost of drugs and medicines of hospitals/sanitaria for sale to
patients
Sale, issuance or other modes disposition of the above items
Sec. 44. Accountable Forms Inventory (148). This account is used to record the cost or
appropriate value of accountable forms acquired/requisitioned for use in the course of
government operations and/or sale.
Cost or appropriate value of accountable forms
Sale/Issuance of accountable forms (at cost)

Other modes of disposition
Sec. 45. Office Supplies Inventory (149). This account is used to record the value of
consumable items and accounting forms purchased or acquired for use in the course of
government operations.
Purchase of office supplies and materials

Cost of office supplies and materials acquired free of charge or
thru donation
Use/consumption of the above items

Sec. 46. Medical, Dental and Laboratory Supplies Inventory (150). This account is used to
record the appropriate value of medical, dental and laboratory supplies acquired for use in the
course of government operations. It includes drugs and medicines purchased for consumption
of hospital/sanitary/clinic/center and other items used in research activities.
Purchase of –
Medical and dental supplies
Drugs and medicines for clinic/hospital/sanitary/center
consumption
Laboratory supplies for use in research activities

Sec. 47. Food/Non-Food/Supplies Inventory (151). This account is used to record the
appropriate value of food and non-food inventory in hospitals (Dietary Units) and penitentiary.
It also includes those items purchased for distribution to people affected by
calamities/disasters/areas in conflict. All purchases of perishable items shall be directly
charged to Food and Non-food Expense (851)
Purchase of food and non-food for use by patients, inmates

and people affected in calamity-ridden areas
Use/Consumption
Sec. 48. Gasoline, Oil and Lubricants Inventory (152). This account is used to record the
cost of gasoline, oil and lubricant purchased for stock to be used in government operations.
Purchase of gasoline, oil and lubricants for stock to be consumed

in government operations

Adjustment
Sec. 49. Agricultural Supplies Inventory (153). This account is used to record the cost or
appropriate value of agricultural supplies purchased or acquired thru donation for use in the
implementation of government programs, or intended for sale.
Purchase or receipt of donated fertilizers and pesticides

Purchase or receipt of donated other agricultural supplies
Sale of fertilizers and pesticides and other agricultural supplies

Issuance or consumption for the implementation of projects
Sec. 50. Livestock and Crops Inventory (154). This account is used to record the cost or
appropriate value of fruits/crops harvested and livestock acquired or purchased to be used in
the dispersal program/project of the government. It is also used to record livestock produced
and offered for sale upon reaching marketable age.
Purchase or acquisition of livestock to be used in the dispersal

program/project of the government
Livestock offered for sale upon reaching marketable age
Value of harvested fruits and crops
Issuance/dispersal of livestock to the recipient

Sale of livestock/fruits and crops
Sec. 51. Spare Parts Inventory (155). This account is used to record the cost or appropriate
value of spare parts purchased for the repair of vehicles, aircraft, industrial machinery and
other equipment.
Purchase of spare parts for use in the repair of vehicles,

aircraft, industrial machinery and other equipment
Issuance of spare parts

52. Construction Materials Inventory (156). This account is used to record the cost or
appropriate value of construction materials purchased for projects undertaken by
administration.
Purchase of construction materials for projects undertaken by

administration
Construction materials issued

Sec. 53. Other Agricultural Products Inventory (157). This account is used to record the
cost or appropriate value of produce from fishery and other agricultural products not elsewhere
classified which are intended for sale.
Inventory of produce from fishery and other agricultural products

Adjustment
Sale or other modes of disposition of fish and other agricultural

products
Adjustment
Sec. 54. Confiscated Goods Inventory (158). This account is used to record the cost or
appraised value of confiscated goods and properties which are decided in favor of the
government.
Confiscated goods and properties
Sale of confiscated goods and properties

Other modes of disposal of confiscated goods and properties
Sec. 55. Other Inventory Items (160). This account is used to record the cost or appropriate
value of inventories which cannot be classified under specific inventory accounts.
Inventory of forms/brochures/leaflets/motor vehicle plates/car

stickers, etc.
Inventory of workbooks for distribution to public schools
Inventory of waste products/scrap materials
Other inventory items
Sale/Issuance of other inventory items

PREPAID EXPENSES
Sec. 56. Prepaid Rent (161). This account is used to record the advance payment for
lease/rental of buildings, land, equipment, office space, vehicle and property, plant and
equipment for use in government operations.
Advance payment and deposit for lease/rental of land, buildings,

office space, equipment, vehicles and other properties for
use in government operations
Expired or expense portion at the end of the accounting period
Sec. 57. Prepaid Insurance (162). This account is used to record the advance payment for
fidelity bond premiums of accountable officers insurance premiums and government
properties.
Advance payment for -

Fidelity bond premiums of accountable officers
Insurance premiums of government properties
Expired or expense portion at end of the accounting period

Sec. 58. Prepaid Interest (164). This account is used to record the advance payment of
interest for loans contracted/guaranteed by the government.
Interest payments made in advance for loans contracted/guaranteed

by the government
Expired or expense portion at the end of the accounting period
Sec. 59. Other Prepaid Expenses (165). This account is used to record other prepaid
expenses not included with any specific prepaid accounts.
Other prepaid expenses
Expired portion of the other prepaid expenses at the end of accounting

period
OTHER CURRENT ASSETS
Sec. 60. Guaranty Deposits (166). This account is used to record the amount of cash
deposits, subject to refund to secure or guaranty compliance with certain requirements in a
transaction.
Deposits for the exercise of an option to levy or lease

Deposits to secure coinage
Deposits to secure BSP Notes
Deposits to secure stocks and bonds of GOCCs
Other deposits to guaranty performance
Refund/forfeiture of the above deposits
Sec. 61. Deposits on Letters of Credit (167). This account is used to record deposits made
for opening letters of credit.
Deposits made for opening domestic/foreign letters of credit
Application/utilization of deposits for domestic/ foreign letters of credit
Sec. 62. Advances to Contractors (168). This account is used to record the payment
authorized by law to be made in advance to contractors upon submission of the required bond
or stand by letter of credit.
Payment of authorized advances to contractors
Recoupment of authorized advances to contractors
Sec. 63. Other Current Assets (170). This account is used to record deposits on containers
and other current assets which cannot be classified under any of the foregoing accounts.
Deposit on containers such as drums, gas, or oxygen or

acetylene tanks, bottles and other containers
Other current assets which cannot be classified under any of
the specific current accounts
Sale or disposition of the above items

Refund/Forfeiture of deposits made
LONG-TERM INVESTMENTS
Sec. 64. Loans Receivable – Long-Term, LGUs (171). This account is used to record long
term loans granted/relent to LGUs.
Long-term loans granted to LGUs
Transfer of the current portion of the loan to Loans Receivable,

Current
Sec. 65. Loans Receivable – Long-Term, Others (173). This account is used to record
long-term loans granted to private entities as authorized.
Grant of long-term loans to private entities as authorized
Transfer of the current portion of the loan to Loans Receivable,

Current
Sec. 66. Investments in Stocks (174). This account is used to record long-term investments
in stocks of government and private corporations.
Subscription to capital stocks of government and private corporations
Sale of stocks
Sec. 67. Investments in Bonds (175). This account is used to record long-term investments
in bonds of government and private corporations.
Purchase of bonds issued by government and private corporations
Redemption of bonds
Resale of bonds
Sec. 68. Investments in GOCCs (176). This account is used to record long-term
investments/loans to GOCCs/GFIs.
Long-term investments/loans to GOCCs/GFIs
Payments received or settlement made for investments
Sec. 69. Sinking Fund – Cash (177). This account is used to record cash set aside for the
liquidation of long-term debt and for the purchase of sinking fund securities reserved for
liquidation of long-term debts.
Setting aside of cash as sinking fund.
Purchase of sinking fund securities for the purpose of investment

and liquidation of long-term debt.
Sec. 70. Sinking Fund – Securities (178). This account is used to record securities
purchased out of sinking fund cash to generate income while waiting for the liquidation of long-
term indebtedness.
Purchase of sinking fund securities.
Redemption of securities
Sale of securities
Adjustment
Sec. 71. Other Long –Term Investments (179). This account is used to record all other
types of long-term investments which cannot be classified under specific investment accounts.
It includes cost of stocks/securities purchased from service enterprises as required before
service connection is made and loans granted to private entities, as authorized.

All other types of long-term investments
Cost of stocks/securities purchased from power and telephone
companies and other service enterprises as required before
service connection is made or the needed service can be
rendered.
Sale or disposition of other types of long-term investments

Sale or disposition of stocks/securities purchased for power and
telephone companies and other service enterprises
PROPERTY, PLANT and EQUIPMENT
Sec. 72. Land (201). This account is used to record the cost or appraised value or other
appropriate value of land acquired by the government including property rights and interests.
Purchase of land
Transfer from government agencies, private entities and individuals
Transfer due to court order
Transfer from other funds
Free acquisition/donation
Appreciation
Acquisition of land levied and forfeited by LGU for want of bidders
Sale
Transfer to government agencies
Transfer to other funds
Donation
Redemption of forfeited land
Sec. 73. Land Improvements (202). This account is used to record the cost or appropriate
value of land improvements which are more or less permanent or capital in nature such as;
flagpoles, sidewalks, fences, driveways, parking areas, etc.
Construction of land improvements

Transfer of land to where it was constructed by government agencies,
private entities and individuals
Sale of Land to where it was constructed

Transfer to other government agencies
Involuntary destruction
Donation of land to where it was constructed
Sec. 74. Accumulated Depreciation - Land Improvements (302). This account is used to
record the cumulative reduction in value of land improvements due to use in the course of
operation or in production of income.
Accumulated amount of depreciation charged against the land

improvement upon destruction or transfer/sale of land to
where it was constructed.
Periodic charges as depreciation expense for land improvements
Sec. 75. Leasehold Improvements (203). This account is used to record the cost or
appropriate value of improvements made on leased property.
Cost or appropriate value of improvements on leased property
Reduction of leasehold improvements due to destruction

Sec. 76. Accumulated Depreciation - Leasehold Improvements (303). This account is

used to record the cumulative reduction in value of leasehold improvements due to use in the
course of operation or in production of income.
Accumulated amount of depreciation charged against the leasehold

improvements upon demolition or termination of the lease

Periodic charges as depreciation expense for leasehold improvements
Sec. 77. Buildings (204). This account is used to record the cost or appraised value of the
buildings purchased or constructed (other than school buildings, market, slaughterhouse,
hospitals and health centers), including related improvements which are capital in nature.
Purchase or construction of buildings

Additions, improvements, alteration, replacements, major repairs,
etc. which are capitalized when it extends the life, increase
the capacity or improve the efficiency or safety of the property
Transfer from other government agencies, private entities and
individuals
Sale
Transfers to government agencies
Demolition
Donation
Sec. 78. Accumulated Depreciation - Buildings (304). This account is used to record the
cumulative reduction in value of buildings (other than school buildings, market,
slaughterhouse, hospitals and health centers) due to use in the course of operation or in
production of income.
Accumulated amount of depreciation charged against the building

upon retirement, sale or demolition
Periodic charges as depreciation expenses for buildings
Sec. 79. School Buildings (205). This account is used to record the cost or appraised value
of school buildings purchased or constructed including related improvements which are capital
in nature.
Purchase or construction of school buildings

etc. which are capitalized when it extends the life, increase the
capacity or improve the efficiency or safety of the property
Sale
Demolition
Donation
Sec. 80. Accumulated Depreciation - School Buildings (305). This account is used to
record the cumulative reduction in value of school buildings due to use in the course of
Cumulative amount of depreciation charged against the building upon

retirement, sale or demolition
Periodic charges as depreciation expenses for school buildings
Sec. 81. Markets and Slaughterhouses (206). This account is used to record the cost or
appraised value of markets and slaughterhouses acquired or constructed.
Purchase or construction of markets and slaughterhouses

the capacity or improve the efficiency or safety of the property
Sale
Donation
For purposes of identifying the particular asset account the following sub-accounts
shall be used:
206-01 - Markets
206-02 – Slaughterhouse
Sec. 82. Accumulated Depreciation - Markets and Slaughterhouses (306). This account
is used to record the cumulative reduction in value of markets and slaughterhouses due to use
in the course of operation or in production of income.
Cumulative amount of depreciation charged against markets and

slaughterhouses upon retirement, sale or demolition
Periodic charges as depreciation expenses for markets and

slaughterhouses
For purposes of identifying the particular depreciation account the following sub-
accounts shall be used:
306-01 - Accumulated Depreciation, Markets

306-02 - Accumulated Depreciation, Slaughterhouse
Sec. 83. Hospitals and Health Centers (207). This account is used to record the cost or
appraised value of hospitals and health centers acquired or constructed.
Purchase or construction of hospitals and health centers

Sale
Demolition
Donation
For the purpose of identifying the particular asset account the following sub-accounts
shall be used:
207-01 – Hospitals
207-02 – Health Centers
Sec. 84. Accumulated Depreciation - Hospitals and Health Centers (307). This account is
used to record the cumulative reduction in value of hospitals and health centers due to use in
the course of operation or in production of income.
Cumulative amount of depreciation charged against hospitals and

health centers upon retirement, sale or demolition
Periodic charges as depreciation expenses for hospitals and health

centers
shall be used:
307-01 – Accumulated Depreciation, Hospitals

307-02 – Accumulated Depreciation, Health Centers
Sec. 85. Other Structures (208). This account is used to record the cost or appraised value
of other structures acquired or constructed.
Purchase or construction of other structures

Sale
Demolition
Donation
Sec. 86. Accumulated Depreciation - Other Structures (308). This account is used to
record the cumulative reduction in value of other structures due to use in the course of
Cumulative amount of depreciation charged against other structures

upon retirement, sale or demolition
Periodic charges as depreciation expense for other structures
Sec. 87. Industrial Machineries (209). This account is used to record the cost or appraised
value of industrial machineries acquired or purchased.
Purchase of industrial machineries

Additions, improvements, alterations, replacements, major repairs,
capacity or improve the efficiency or safety of the property.
Items found at station
Free acquisition donation
Sale
Donation
Sec. 88. Accumulated Depreciation - Industrial Machineries (309). This account is used
to record the cumulative reduction in value of industrial machineries due to use in the course of
Cumulative amount of depreciation charged against industrial

machineries upon retirement, sale or destruction
Periodic charges as depreciation expenses for industrial machineries
Sec. 89. Other Machineries (210). This account is used to record the cost or appraised
value of machinery and equipment acquired or purchased.
Purchase of machinery and equipment

Sale
Donation
Sec. 90. Accumulated Depreciation – Other Machineries (310). This account is used to
record the cumulative reduction in value of machinery due to use in the course of operation or
in production income.
Cumulative amount of depreciation charged against other machinery

upon retirement, sale or destruction
Periodic charges as depreciation expenses for other machinery
Sec. 91. Firefighting Equipment and Accessories (211). This account is used to record the
cost or appraised value of firefighting equipment and accessories acquired or purchased.
Purchase of firefighting equipment and accessories

Sale
Donation
shall be used:
211-02 – Firefighting Equipment

211-02 – Accessories
Sec. 92. Accumulated Depreciation - Firefighting Equipment and Accessories (311).

This account is used to record the cumulative reduction in value of firefighting equipment and
accessories due to use in the course of operation.
Cumulative amount of depreciation charged against firefighting

equipment and accessories upon retirement, sale or destruction
Periodic charges as depreciation expenses for firefighting equipment

and accessories
For the purpose of identifying the depreciation of the particular asset account the
following sub-accounts shall be used:
311-01 – Accumulated Depreciation, Firefighting Equipment

311-02 – Accumulated Depreciation, Accessories
Sec. 93. Construction and Heavy Equipment (212). This account is used to record the cost
or appraised value of construction and heavy equipment purchased or acquired.
Purchase of construction and heavy equipment

the capacity or improve the efficiency or safety of the property.
Sale
Donation
Sec. 94. Accumulated Depreciation - Construction and Heavy Equipment (312). This
account is used to record the cumulative reduction in value of construction and heavy
equipment due to use in the course of operation or in production of income.
Cumulative amount of depreciation charged against construction

and heavy equipment upon retirement, sale or destruction
Periodic charges as depreciation expenses for construction

and heavy equipment
Sec. 95. Technical and Scientific Equipment (214). This account is used to record the cost
or appraised value of technical and scientific equipment acquired or purchased.
Purchase of technical and scientific equipment

Sale
Donation
shall be used:
214-01 – Technical Equipment

214-02 – Scientific Equipment
Sec. 96. Accumulated Depreciation - Technical and Scientific Equipment (314). This
account is used to record the cumulative reduction in value of technical and scientific
equipment due to use in the course of operation or in production of income.
Cumulative amount of depreciation charged against technical

and scientific equipment upon retirement, sale or destruction
Periodic charges as depreciation expenses for technical and

scientific equipment
For the purpose of identifying the depreciation of the particular asset account, the
314-01 – Accumulated Depreciation - Technical Equipment

314-02 – Accumulated Depreciation - Scientific Equipment
Sec. 97. IT Equipment and Software (215). This account is used to record the cost or
appraised value of IT equipment and software acquired, purchased or developed.
Purchase of IT equipment and software developed

Sale
Donation
shall be used:
215-01 – IT Equipment (from PCs to more complex mainframes)

215-02 – IT peripheral equipment (such as printers, external devices
for back-up storage and similar items)
215-03 – Software (consisting of operating systems, application software
and the like)
Sec. 98. Accumulated Depreciation - IT Equipment (315). This account is used to record
the cumulative reduction in value of IT equipment and software due to use in the course of
Cumulative amount of depreciation charged against IT equipment

upon
retirement, sale, obsolescence or destruction
Periodic charges as depreciation expense for IT equipment
Sec. 99. Telegraph, Telephone, Cable, TV and Radio Equipment (216). This account is
used to record the cost or appraised value of telegraph, telephone, cable, TV and radio
equipment acquired.
Purchase of telegraph, telephone, cable, TV and radio equipment

Sale
Donation
shall be used:
216-01 – Telegraph
216-02 – Telephone
216-03 – Cable
216-04 – TV
216-05 – Radio Equipment
Sec. 100. Accumulated Depreciation - Telegraph, Telephone, Cable, TV and Radio

Equipment (316). This account is used to record the cumulative reduction in value of
telegraph, telephone, cable, TV and radio equipment due to use in the course of operation or
in production of income.
Cumulative amount of depreciation charged against telegraph,

telephone, TV cable and radio equipment upon retirement,
sale or destruction
Periodic charges as depreciation expenses for telegraph, telephone,

cable, TV and radio equipment
316-01 – Accumulated Depreciation, Telegraph

316-02 – Accumulated Depreciation, Telephone
316-03 – Accumulated Depreciation, Cable
316-04 – Accumulated Depreciation, TV
316-05 – Accumulated Depreciation, Radio Equipment
Sec. 101. Artesian Wells, Reservoirs, Pumping Stations and Conduits. (217). This
account is used to record the cost or appraised value of artesian wells, reservoirs, pumping
stations and conduits acquired/ purchased/constructed.
Purchase/construction of artesian wells, reservoirs, pumping

stations, etc.
Sale
Donation
For the purpose of identifying the particular asset account, the following sub-accounts
shall be used:
217-01 – Artesian Wells

217-02 – Reservoirs
217-03 - Pumping Stations
217-04 – Conduits
Sec. 102. Accumulated Depreciation - Artesian Wells, Reservoirs, Pumping Stations,

and Conduits (317). This account is used to record the cumulative reduction in value of
artesian wells, reservoirs, pumping stations and conduits due to use in the course of operation
or in production of income.
Cumulative amount of depreciation charged against artesian wells,

reservoirs, pumping stations and conduits upon retirement, sale
or destruction
Periodic charges as depreciation expenses for artesian wells,

reservoirs, pumping stations and conduits
317-01 – Accumulated Depreciation, Artesian Wells

317-02 – Accumulated Depreciation Reservoirs
317-03 – Accumulated Depreciation Pumping Stations
317-04 – Accumulated Depreciation Conduits.
Sec. 103. Motor Vehicles (218). This account is used to record the cost or appraised value
of motor vehicles acquired or purchased.
Purchase of motor vehicles

Sale
Donation
Sec. 104. Accumulated Depreciation - Motor Vehicles (318). This account is used
to record the cumulative reduction in value of motor vehicles due to use in the course
of operation or in production of income.
Cumulative amount of depreciation charged against motor

vehicles

Periodic charges as depreciation expense for motor vehicles
Sec. 105. Watercrafts (219). This account is used to record the cost or appraised
value of watercrafts acquired or purchased.
Purchase of watercrafts
Additions, improvements, alterations, replacements, major
repairs,
the
Transfer from government agencies, private entities and
individuals
Sale
Donation
Sec. 106. Accumulated Depreciation - Watercrafts (319). This account is used to

record the cumulative reduction in value of watercrafts due to use in the course of
Cumulative amount of depreciation charged against watercrafts

upon its retirement, sale or destruction
Periodic charges as depreciation expenses for watercrafts

Sec. 107. Trains (220). This account is used to record the cost or appraised value of
trains acquired or purchased.
Purchase of trains
repairs,
the
individuals
Sale
Donation
Sec. 108. Accumulated Depreciation - Trains (320). This account is used to record
the cumulative reduction in value of trains due to use in the course of operation or in
Cumulative amount of depreciation charged against trains upon

retirement, sale or destruction
Periodic charges as depreciation expenses for trains
Sec. 109. Aircrafts/Aircraft Ground Equipment (221). This account is used to

record the cost or appraised value of aircraft acquired or purchased.
Purchase of aircrafts
repairs,
the
individuals
Sale
Donation
For the purpose of identifying the particular asset account the following sub-
221-01 – Aircrafts
221-02 – Aircraft Ground Equipment
Sec. 110. Accumulated Depreciation – Aircrafts/Aircraft Ground Equipment

(321). This account is used to record the cumulative reduction in value of
aircrafts/aircraft ground equipment due to use in the course of operation or in
Cumulative amount of depreciation charged against

aircrafts/aircraft
ground equipment upon retirement, sale or destruction
Periodic charges as depreciation expenses for aircraft

For the purpose of identifying the depreciation of the particular asset account,
the following sub-accounts shall be used:
321-01 – Accumulated Depreciation, Aircrafts

321-02 – Accumulated Depreciation, Aircraft Ground Equipment
Sec. 111. Office Equipment (222). This account is used to record the cost or
appraised value of office equipment acquired.
Purchase of office equipment

repairs,
the
individuals
Sale
Donation
Sec. 112. Accumulated Depreciation - Office Equipment (322). This account is

used to record the cumulative reduction in value of office equipment due to use in the
Cumulative amount of depreciation charged against office

equipment
upon retirement, sale or destruction.
Periodic charges as depreciation expenses for office equipment
Sec. 113. Other Equipment (223). This account is used to record the cost or
appraised value of other equipment acquired or purchased not falling under specific
property, plant and equipment accounts.
Purchase of other types of equipment

repairs,
the
individuals
Sale
Donation
Sec. 114. Accumulated Depreciation - Other Equipment (323). This account is

used to record the cumulative reduction in value of other equipment due to use in the
Cumulative amount of depreciation charged against other

equipment
Periodic charges as depreciation expenses for other equipment
Sec. 115. Furniture and Fixtures (224). This account is used to record the cost or
appraised value of furniture and fixtures acquired or purchased.
Purchase of furniture and fixtures

repairs,
the
individuals
Sale
Donation
For the purpose of identifying the particular asset account, the following sub-
224-01 – Furniture
224-02 – Fixtures
Sec. 116. Accumulated Depreciation - Furniture and Fixtures (324). This account
is used to record the cumulative reduction in value of furniture and fixtures due to use
in the course of operation or in production of income.

Cumulative amount of depreciation charged against furniture
and
fixtures upon retirement, sale or destruction
Periodic charges as depreciation expense for furniture and

fixtures
For the purpose of identifying the depreciation of the particular asset account,
the following sub-accounts shall be used:
324-01 – Accumulated Depreciation, Furniture

324-02 – Accumulated Depreciation, Fixtures
Sec. 117. Ordnance (225). This account is used to record the cost or appraised value
of ordnance acquired or purchased.
Purchase of ordnance
repairs,
the
individuals
Sale
Donation
Sec. 118. Accumulated Depreciation - Ordnance (325). This account is used to

record the cumulative reduction in value of ordnance due to use in the course of
Cumulative amount of depreciation charged

against ordnance
Periodic charges as depreciation expenses for ordnance
Sec. 119. Books (226). This account is used to record the cost or appraised value of
books acquired or purchased. This cover books in libraries in various schools, in
government agencies, and those purchased for use by students with serviceable life of
more than one year.
Purchase of books
Transfer from government/private agencies and individuals
Sale
Donation
Sec. 120. Accumulated Depreciation - Books (326). This account is used to record
the cumulative reduction in value of books due to use in the course of operation or in
Cumulative amount of depreciation charged against books upon

retirement, sale or destruction
Periodic charges as depreciation expense for books
Sec. 121. Other Property, Plant and Equipment (227). This account is used to
record the cost or appraised value of other property, plant and equipment acquired or
purchased.
Purchase of other Property, Plant and Equipment

repairs,
the
individuals
Sale
Donation
Sec. 122. Accumulated Depreciation - Other Property, Plant and Equipment

(327). This account is used to record the cumulative reduction in value of other
property, plant and equipment due to use in the course of operation or in production of
income.
Cumulative amount of depreciation charged against other

property,
plant and equipment upon retirement, sale or destruction.
Periodic charges as depreciation expense for other property,

plant
and equipment
Sec. 123. Work/Other Animals (228). This account is used to record the cost or
appraised value of work animals acquired or purchased. This includes those in the zoo,
wildlife, sanctuary, etc.
Purchase of work/other animals

Offspring
individuals
Work/other animals found at station
Sale
Death
Donation
For the purpose of identifying the particular asset account, the following sub-
228-01 – Work Animals

228-02 – Other Animals
Sec. 124. Breeding Stocks (229). This account is used to record the cost or appraised
value of breeding stocks acquired or purchased.

Purchase of breeding stocks
Offspring
individuals
Sale
Death
Donation
Sec. 125. Construction in Progress – Agency Assets (230). This account is used to
record the cost or accumulated value of agency assets which are still under
construction to be used in operation.
Materials, labor, overhead and other costs while the asset is

under construction
Construction
Transfer to appropriate agency asset account upon completion
For the purpose of identifying the particular asset accounts, the following sub-
230 – 01 – Buildings
230 – 02 – School Buildings
230 – 03 – Markets and Slaughterhouses
230 – 04 – Hospitals and Health Centers
230 – 09 – Other Structures
Sec. 126. Construction in Progress - Plaza, Parks and Monuments (231). This
account is used to record the cost or accumulated value of plaza, parks, and
monuments which are still under construction.
Cost incurred while plaza, parks and monuments are under

construction
Transfer to Public Infrastructures account upon completion

Transfer of discontinued infrastructure projects to Public
Infrastructures
account
231 – 01 – Plaza
231 – 02 – Parks
231 – 03 – Monuments
Sec. 127. Construction in Progress – Roads, Highways and Bridges (232). This
account is used to record the cost or accumulated value of roads, highways and bridges
which are still under construction.
Cost incurred while roads, highways and bridges are under

construction

Infrastructures
account
232 – 01 – Roads
232 – 02 – Highways
232 – 03 – Bridges
Sec. 128. Construction in Progress – Ports, Lighthouses, Harbors, Seawalls, River

Walls and Others (233). This account is used to record the cost or accumulated
value of harbors, seawalls, river walls and other waterway improvements which are
still under construction.
Cost incurred while harbors, seawalls, river walls and others are
under construction

Infrastructures
account
233 – 01 – Ports
233 – 02 – Lighthouses
233 – 03 – Harbors
233 – 04 – Seawalls
233 – 05 – River Walls
233 – 06 – Others
Sec. 129. Construction in Progress – Airports and Runways (234). This account is
used to record the cost or accumulated value of airports and runways which are under
construction.
Cost incurred while runways and airports are under construction

Adjustment

Infrastructures
account
234 - 01 – Airports
234 – 02 – Runways
Sec. 130. Construction in Progress – Railways (235). This account is used to record
the cost or accumulated value of railways which are still under construction.
Cost incurred while railways are under construction

Infrastructures
account
Sec. 131. Construction in Progress – Waterways, Aqueducts, etc. (236). This

account is used to record the cost or accumulated value of waterways, aqueducts, etc.
which are under construction.
Cost incurred while waterways, aqueducts, etc. are under

construction

Infrastructures
account
236 – 01 – Waterways
236 – 02 – Aqueducts
236 – 03 – Others
Sec. 132. Construction in Progress – Irrigation, Canals and Laterals (237). This account
is used to record the cost or accumulated value of irrigation, canals and laterals which are
under construction.
Cost incurred while irrigation, canals and laterals are under

construction
Transfer to Public Infrastructures account upon completion.

Infrastructures
account
For the purpose of identifying the particular asset accounts, the following sub-accounts
shall be used:
237 – 01 – Irrigation
237 – 02 – Canals
237 – 03 – Laterals
Sec. 133. Construction in Progress – Electrification, Power and Energy (238). This
account is used to record the cost or accumulated value of electrification, power, energy and
related structural projects still under construction.
Cost incurred while the electrification, power, energy and related

structural projects are under construction

Infrastructures
account
Transfer to appropriate asset account upon completion in case the
project is meant to be an economic enterprise
Sec. 134. Construction in Progress – Other Public Infrastructures (241). This account is
used to record the cost or accumulated value of all other Public Infrastructures under
construction not classified under any specific type of public infrastructure accounts.
Cost incurred while other public infrastructures are under construction

Infrastructures
account
Sec. 135. Construction in Progress – Reforestation Projects (242). This account is used
to record the cost or accumulated value of all Reforestation Projects still under completion.
Cost incurred while the Reforestation Projects are still under

completion
Adjustment

Infrastructures
account
Sec. 136. Public Infrastructures (243). This account is used to record completed/turned
over public infrastructure projects and those projects which were discontinued by the
government. The account also includes completed/turned over public infrastructure projects
funded from outstanding long-term indebtedness.
Completed/turned-over public infrastructure projects

Completed public infrastructures funded out of outstanding loans
Discontinued public infrastructure projects
Transfer of completed/turned over/discontinued public infrastructures

to Registry of Public Infrastructures at end of accounting period
and/or full payment of loan
Transfer to other government agencies
Sec. 137. Reforestation Projects (244). This account is used to record completed/turned-
over reforestation projects and those projects which were discontinued by the government for
valid reason.
Completed/turned-over reforestation projects Discontinued

reforestation
projects
Transfer to Registry of Reforestation Projects at end of accounting

period
Sec. 138. Arts, Archeological Specimen and Other Exhibits (245). This account is used to
record the cost or accumulated value of art collections, archeological specimens and other
exhibits.
Purchase of arts, archeological items and other exhibits

Sale
Donation
For the purpose of identifying the particular asset accounts, the following sub-accounts
shall be used:
245 – 01 – Arts
245 – 02 – Archeological Specimen
245 – 03 – Other Exhibits
Sec. 139. Items in Transit (249). This account is used to record the cost or accumulated
value of imported equipment already paid but not yet delivered/received.
Value or cost of imported equipment purchased or paid but not

yet delivered/received
Value or cost of equipment delivered/purchased
Sec. 140. Other Assets (251). This account is used to record the value of obsolete and
unserviceable assets as well as other assets still serviceable but no longer used. These items
are not subject to depreciation.
Cost of obsolete and unserviceable assets including property and

equipment no longer used in the agency operation but still
serviceable
Sale
Donation
LIABILITIES
CURRENT LIABILITIES
Sec. 141. Accounts Payable (401). This account is used to record obligations/ indebtedness
to contractors/suppliers arising from the purchase of goods and services. This also includes
those held under escrow by government agencies and other obligations in connection with the
agencies’ operations, trade/business
Payment/liquidation/settlement of obligations
Settlement thru offsetting of transactions
Reversions

Amount of liabilities arising from goods delivered or services rendered
Excess payments received from private entities
Amount of liabilities arising from the cancellation of checks issued
for which replacement shall be made
For purposes of identifying the accounts, the following sub-accounts shall be used:
401-01 Trade
401-02 Non-Trade
Sec. 142. Notes Payable (402). This account is used to record liabilities arising from
promissory notes and trade acceptances.
Payments made to settle promissory notes and trade acceptances

Reversions
Value of promissory notes issued and trade acceptances
Sec. 143. Loans Payable - Current, Domestic (403). This account is used to record short
term loans and current portion of long-term indebtedness from domestic creditors.
Settlement or liquidation of loan
Receipt of the proceeds of short-term loan

Current portion of long-term indebtedness
Sec. 144. Interests Payable. (406) This account is used to record charges imposed on the
use of money belonging to others, such as interest on bonds, provisional advances, treasury
bills, treasury notes, certificates of indebtedness, and other interest bearing obligations.
Payments made to settle liabilities on interest

Amount of interest due
Sec. 145. Guaranty Deposits Payable (408). This account is used to record cash received
but which are refundable/returnable to the depositor (such as deposits on returnable
containers, rental deposits, etc.) or which have been collected or otherwise accumulated to be
remitted to third parties (such as funds held for others) or may be received to cover possible
future damage to property.
Refund of unused guaranty deposits

Refund/Forfeiture/Application of retention money/guaranty deposits
Deposits to guaranty performance of contracts

Contractors’ retention money
Sec. 146. Withholding Taxes Payable (410). This account is used to record the liability for
collections received or amounts withheld from officers and employees or other parties for
remittance to the Bureau of Internal Revenue (BIR). This consists of the National Internal
Revenue taxes due to the National Government.
Remittance to the BIR of collections received or amounts withheld.
Amount collected/withheld from officers and employees

Amounts collected/withheld from private individuals/companies on
the purchase of goods and services
For the purpose of identifying the classification of withholding taxes payable the
410 – 11 Individual Withholding Tax

410 – 12 Contractors Tax
410 – 13 Franchise Tax
410 – 14 VAT
410 – 19 Other Taxes
Sec. 147. GSIS Payable (411). This account is used to record the liability for collections
received or amounts withheld from officers and employees and government contribution for
remittance to the Government Service Insurance Systems (GSIS).
Remittance of collections received or amount withheld for the

account of the GSIS
Remittance of government contribution to the GSIS
Amount collected/withheld from officers and employees for the

account of the GSIS
Amount representing government contribution to the GSIS
To identify the nature of collection withheld, subsidiary accounts shall be used as

follows:
411 – 01 Life and Retirement Insurance Premiums

411 – 02 Optional Insurance Premiums
411 – 03 Salary Loan Installments
411 – 04 Policy Loan Installments
411 – 05 Optional Loan Installments
411 – 06 Real Estate Loan Installments
411 – 07 Emergency Loan Installments
411 – 09 Others
Sec. 148. PAG-IBIG Payable (412). This account is used to record the liability for collections
received or amounts withheld from officers and employees and government share for
remittance to the Home Development Mortgage Fund (HDMF).
Remittance of collections received or amounts withheld for the

account of the HDMF
Remittance of government contribution to HDMF
Amounts collected/withheld from officers and employees for the

account of the HDMF
Amount representing government contribution to the HDMF
To identify the nature of collection withheld, subsidiary accounts shall be used as

follows:
412 – 01 PAG-IBIG Contributions (Personal and Government Share)

412 – 02 Multi-purpose Loan Installments
412 – 03 Housing Loan Installments
412 – 09 Others
Sec. 149. PHILHEALTH Payable (413). This account is used to record the liability for
collections received or amounts withheld from officers and employees and government share
for remittance to the Philippine Health Insurance Corporation (PHIC).
Remittance of collections received or amounts withheld for the

account of the PHIC
Remittance of government contribution to the PHIC
Amounts collected/withheld from officers and employees for the account

of PHIC
Amounts representing government contribution to the PHIC
Sec. 150. Performance/Bidders/Bail Bonds Payable (414). This account is used to record
the liability arising from receipt of cash to guarantee performance of terms of contract,
participation in bidding and compliance with court orders.
Refund of bonds
Forfeiture in case of non-compliance
Cash Bond received to guarantee -

Performance of the terms of contract
Participation in bidding
Compliance with court orders
To identify the nature of collections withheld the following sub-accounts shall be used:
414 – 01 Performance Bonds

414 – 02 Bidders Bonds
414 – 03 Bail Bonds
Sec. 151. Due to Officers and Employees (428). This account is used to record amounts
due to officers and employees of the agency.
Payment or liquidation of obligations due to officers and employees

Settlement thru offsetting of transactions
Unpaid salaries, fringe benefits and other emoluments and other

obligations due to officials and employees of the agency
to officers and employees subject to replacement
Sec. 152. Due to Other Funds (429). This account is used to record the amount payable to
other funds maintained by an LGU.
Settlement of the liability

Adjustment
Liability to other funds maintained by an LGU.

Adjustment
Sec. 153 Due to NGAs (430). This account is used to record the amount of liabilities due to
national government agencies.
Payment received to settle or liquidate liabilities due to NGAs

Settlement thru offsetting of inter-agency/inter-office transactions
Reversion of Payables
Refund of excess transferred funds
Replacement of stale/cancelled checks
Receipt of goods delivered or services rendered by national

government agencies
Excess payments received from national government agencies
Amounts due arising from inter-agency transactions
Liabilities arising from the cancellation of checks issued for which
replacement shall be made
Sec. 154. Due to LGUs (431). This account is used to record the amount of liabilities due to
LGUs. These include collections received or amounts withheld for the account of LGUs,
advances made by LGUs for specific purpose, shares of other LGUs on Real Property Tax
(basic and additional) and deposits of LGUs with other local government treasuries.
Payment/liquidation/settlement of liabilities due to LGUs

Remittances to the LGUs concerned of collections received/withheld/
for the account of another LGU
Reversion of payables
Receipt of goods delivered or services rendered by LGUs

Amounts received or collected for the account of LGUs
Advances received from LGUs for specific purposes or expenditures
Share of LGUs on Real Property Tax (basic and additional)
Excess payments received from LGUs
for which replacement shall be made
The following sub-accounts shall be used for other local government units:
431 - 01 Provincial Government

431 - 02 City Government
431 - 03 Municipal Government
431 - 04 Barangay Government
Sec. 155. Due to GOCCs (432). This account is used to record liabilities to GOCCs. This
includes funds advanced or entrusted by government corporations to finance specific projects
or activities and amounts withheld from employees for the account of government corporations
other than GSIS and PHILHEALTH and PAG-IBIG.
Payment/liquidation/settlement of liabilities due to GOCCs

Liquidation of advances received from GOCCs
Remittance of amount withheld from employees for the account of
government corporations other than GSIS and PHILHEALTH
and PAG-IBIG
Receipt of goods delivered or services rendered by GOCCs

Advances received from GOCCs for specific purposes or expenditures
Amount withheld from employees for the account of government
corporations other than GSIS and PHILHEALTH and PAG-IBIG
Excess payments received from GOCCs
Liabilities arising from the cancellation of checks issued for which
replacement shall be made
Sec. 156. Retirement Gratuity Benefits Payable (439). This account is used to record
claims of retired government officers and employees for retirement gratuity benefits.
Payment/settlement of retirement gratuity claims of retired government

officers and employees
Amount set for claims of retirement gratuity of retired government

officers and employees
Sec. 157. Deferred Credits to Income (440). This account is used to record amount
collected for revenues not yet earned.
Income earned during the period
Collections for –
Services not yet rendered
Goods not yet delivered
Income not yet earned
Sec. 158. Other Deferred Credits (441). This account is used to record collections received
for items not specifically included in account "Deferred Credits to Income.
Transfer to appropriate account
Collection for items not specifically stated in account, Deferred

Credits to Income
Sec. 159. Deferred Real Property Tax Income (448). This is the reciprocal account for Real
Property Tax Receivable and is used to record the basic real property tax due at the beginning
of the year.
Recognition of RPT income upon collection of Real Property Tax due
Real Property Tax due
Sec. 160. Deferred Special Education Tax (449). This is the reciprocal account for Special
Education Tax (SET) receivable and is used to record the additional levy on real property tax
due at the beginning of the year.
Recognition of SET income upon collection of additional levy on

Real Property Tax
Special Education Tax due
Sec. 161. Other Payables (450). This account is used to record all other current liabilities not
falling under any of the specific current liability account including the current portion of other
long-term liabilities, and other liabilities of the government payment of which are held in
escrow.
Payments made to settle/liquidate the liability
Amount collected/withheld from officers and employees for the

account of private associations/entities
Amounts which had arisen from court order
Amounts for deposits held in escrow.
Current portion of other long-term liabilities
LONG-TERM LIABILITIES
Sec. 162. Loans Payable, Long-Term Domestic (451). This account is used to record long-
term indebtedness, in cash or in kind, from domestic creditors.
Transfer of the current portion of the loan to Current Liabilities
Receipt of the proceeds of long-term loans from domestic sources
Sec. 163. Mortgage Payable (453). This account is used to record long-term indebtedness
covered by a contract and secured by a collateral to guarantee payment.
Settlement/payment of the loan
Amounts received in exchange of the collateral
Sec. 164. Bonds Payable-Long-Term, Domestic (454). This account is used to record the
amount of long-term indebtedness to domestic creditors for bonds issued.
Settlement/payment of matured bonds
Bonds issued/floated
Sec. 165. Other Long –Term Liabilities (460). This account is used to record all other long-
term obligations not falling under any of the long-term liability accounts.
Settlement/Payment of other long-term liabilities
Set up of other long-term liabilities not classified under specific

accounts
OTHER LIABILITIES
Sec. 166. Other Liabilities (465). This account is used to record the other liabilities which
cannot be classified under the specific liability accounts.
Payment of liabilities
Set up of liabilities not classified under specific liability accounts
EQUITY
Sec. 167. Government Equity (501). This account represents the difference between the
assets and liabilities national government agencies and local government units.
Transfer of completed, turned over and discontinued public

infrastructures to the Registry of Public Infrastructures at
end of accounting period and/or full payment of loan
Closing of the debit balance of Invested Equity account
Year-end closing of the debit balance of Retained Operating
Surplus account
Closing of the credit balance of Invested Equity account

Year-end closing of the credit balance of Retained Operating
Surplus account
Sec. 168. Project Equity (502). This account represents the equity of national government
agencies, local government agencies, government owned and controlled corporations, foreign
funding corporations and private individuals for funds granted to local government agencies
under specific conditions and/or for specific purposes and projects. This account shall be used
in the Trust Fund books of LGUs only.
Transfer of completed projects to the General Fund of LGUs

Closing of expenditures at year end or upon project completion
Receipt of funds for specific purposes and projects under the

Trust Fund
For purposes of identifying the accounts, the following sub-accounts shall be used:
502 – 01 National Government Agency

502 – 02 Local Government Unit
502 – 03 Government Owned and Controlled Corporation
502 – 09 Others
INTERMEDIATE ACCOUNTS
Sec. 169. Cost of Goods Sold (531). This account is used to record the cost of goods or
merchandise sold in the course of business operation of a government agency or local
government unit such as drugs and medicines, supplies and materials, accountable forms with
face value, etc.
Cost of merchandise/accountable forms sold
Year-end closing to Income and Expenses Summary
Sec. 170. Income and Expense Summary (532). This account is used as a summary
account for subsidy received, revenues earned and expenses incurred during the year.
Year-end closing of the balances of –

Expenses incurred during the year
Cost of Goods Sold
Year-end closing of the credit balance (net result) of this account
to Retained Operating Surplus account
Year-end closing of the balance Revenue earned during the year

Year-end closing of the debit balance (net result) of this account
Sec. 171. Prior Years’ Adjustments (533). This account is used to record the adjustment of
prior years’ transactions affecting revenue and expenses and other adjustments which
increase or decrease the Retained Operating Surplus account of the Government.
Adjustment of excess revenue recorded in prior years

Payment of unrecorded expenses of prior years
Other adjustments of prior years’ transactions which result in the
decrease of the Retained Operating Surplus account
Setting up of receivable account for disallowances of prior years

expenses
Collection of prior years’ disallowances and refund of overpayments
of expenses pertaining to prior years
Other adjustments of prior years’ transactions which result in the
increase of the Retained Operating Surplus
Year-end closing of the credit balance (net result) of this account to
Retained Operating Surplus account
Sec. 172. Retained Operating Surplus (534). This account reflects the net result of Income
and Expense Summary and Prior Years’ Adjustments accounts prior to closing to the
Government Equity account.
Year-end closing of the credit balance (net result) of this account

to Government Equity account
Year-end closing of the debit balance (net result) of Prior Years’
adjustments account

to Government Equity account
Year-end closing of the credit balance of Prior Years’ Adjustments
account
Sec. 173. Invested Equity (537). This account is used to record the increases or decreases
of equity resulting from donation or transfer of property, plant and equipment, birth of work
animals, and discovery of mines and quarries.

Property, plant and equipment transferred to national government
agencies, local government units and/or government corporations
Property, plant and equipment donated to other entities
Year-end closing to Government Equity account
Property, plant and equipment transferred from national government

agencies, local government units and/or government corporations
Property, plant and equipment received from other entities as
donations
or contributions
Property, plant and equipment found at station and those confiscated
and used in the operations of the agency
Increase in the value of fixed assets as a result of appraisal
Offspring of work animals
Mines and quarries discovered and recorded in the books
Adjustment
Year-end closing to Government Equity account
REVENUE / INCOME
GENERAL INCOME
Sec. 174. Subsidy from Other Local Government Units (604). This account is used to
record financial assistance received from local government units for the purpose of pursuing
programs or policies of public interest.
Sec. 175. Subsidy from Other Funds (605). This account is used to record in the Special
Education Fund books funds received from the General Fund as aids or contributions.
Sec. 176. Subsidy from Special Accounts (606). This account is used to record the amount
received from Special Accounts within the General Fund maintained by Local Government
Units as aids or contributions.
Sec. 177. Sales Revenue (613). This account is used to record all income derived from
business operations of agencies engaged in trade, business and commerce.
Sec. 178. Dividend Income (623). This account is used to record dividends in cash derived
from investments on stocks of government corporations and private enterprises.
Sec. 179. Interest Income (624). This account is used to record all interest earned on
deposits with banks, loans and investments on bonds, treasury notes, treasury bills and
promissory notes held.
Sec. 180. Gain on Sale of Securities (625). This account is used to record the profits
realized on the sale of bonds and securities such as stocks/securities purchased including
stocks/securities secured from service enterprises as required before service connection is
made.
Sec. 181. Gain on Sale of Assets (626). This account is used to record the excess of the
proceeds from sale of assets over their net book value (accumulated depreciation deducted).
Sec. 182. Sale of Confiscated Goods and Properties (627). This account is used to record
income derived from the sale of goods/properties confiscated and decided in favor of the
government.
Sec. 183. Foreign Exchange (FOREX) Gain (628). This account is used to record gains in
the conversion of foreign currencies to Philippine Peso. In the case of revaluation of
outstanding foreign loan, it is the resulting difference when the prevailing exchange rate is
lower than the exchange rate at the time of the transactions or last adjustments.
Sec. 184. Miscellaneous Operating and Service Income (639). This account is used to
record all other income derived on account of governmental service and business operations
not elsewhere classified.
Sec. 185. Fines and Penalties – Government Services and Business Operations (641).
This account is used to record all fines and penalties levied in connection with non-tax sources
of income.
Sec. 186. Income from Grants and Donations (651). This account is used to record all non-
repayable grants, donations in cash and in kind received from other levels of government,
private sector or international institutions.

SPECIFIC INCOME
PROPERTY TAXES
Sec. 187. Real Property Tax (711). This account is used to record the ad valorem tax
imposed on real properties and their improvements. Real property includes land,
buildings, machinery, and other improvements affixed or attached to the real property.
Sec. 188. Property Transfer Tax (712).This account is used to record in the books of
the province/city taxes imposed on the sale, donation, barter or on any other mode of
transferring ownership or title of real property.
Sec. 189. Special Education Tax (713). This account is used to record the tax
collected on real property in addition to the basic real property tax, for the Special
Education Fund (SEF).
Sec. 190. Special Assessment Tax (714). This account is used to record proceeds
from special levy imposed by provinces, cities or municipalities on lands benefited by
public works projects or improvements.
Sec. 191. Real Property Tax on Idle Lands (715). This account is used to record the
annual ad valorem tax imposed upon idle lands in addition to the basic real property
tax.
TAXES ON GOODS AND SERVICES
Sec. 192. Business Taxes and Licenses (723). This account is used to record taxes
on businesses enumerated under Article 232 of IRR RA 7160. The following sub-
01- Business Taxes and Licenses – On domestic sales of

manufacturers,
assemblers, repackers, processors, brewers, distillers, rectifiers, and
compounders of liquors, distilled spirits, and wines or
manufacturers of
any article of commerce of whatever kind of nature.
02- Business Taxes and Licenses – Wholesalers, Distributors or

Dealers.
03- Business Taxes and Licenses – Exporters and on Manufacturers,

Millers,
Producers, Wholesalers, Distributors, Dealers or Retailers of
Essential
Commodities
04- Business Taxes and Licenses – Retailers
05- Business Taxes and Licenses – Contractors and Other Independent

Contractors
06- Business Taxes and Licenses – Banks and Other Financial

Institutions
07- Business Taxes and Licenses – Peddlers
08- Business Taxes and Licenses – Other Businesses
Sec. 193. Franchise Tax (724). This account is used to record taxes imposed by the
province/city on businesses enjoying franchise and operating within its territorial
jurisdiction.
Sec. 194. Professional Tax (725). This account is used to record the tax imposed on
all persons engaged in the exercise or practice of their profession requiring government
examinations or those who have passed the bar examinations or any board or other
examinations conducted by the Professional Regulation Commission pursuant to
Article 228, IRR R.A. No. 7160.
Sec. 195. Occupation Tax (726). This account is used to record the tax imposed on
all persons engaged in the exercise or practice of their profession or calling.
Sec. 196. Printing and Publication Tax (727). This account is used to record tax
imposed on the business of persons engaged in the printing and/or publication of
books, cards, posters, leaflets, handbills, certificates, receipts, pamphlets and other
printed materials of similar nature.
Sec. 197. Miscellaneous Taxes on Good and Services (735). This account is used to
record other taxes and charges imposed on goods and services.
OTHER TAXES
Sec. 198. Community Tax (742). This account is used to record tax levied upon
every inhabitant of the Philippines eighteen (18) years of age or over who has been
regularly employed on a wage or salary basis for at least 30 consecutive working days
during any calendar year, or who is engaged in business or occupation, or who owns
real property with an aggregate assessed value of P1,000 or more or who is required by
law to file an annual income tax return. The account shall also record the annual
community tax levied upon corporations engaged in or doing business in the
Philippines.
Sec. 199. Weights and Measures (745). This account is used to record the fees
imposed for sealing and licensing of weights and measures (Article 234, R.A. No.
7160).
Sec. 200. Share from Internal Revenue Collections (746). This account is used to
record the share of local governments from national internal revenue collections.
Sec. 201. Share from Tobacco Excise Tax (747). This account is used to record the
15 percent share of LGUs on local tobacco excise taxes provided under R.A. 7171.
Sec. 202. Share from Economic Zones (748). This account is used to record the
share of the LGU from the gross income paid by businesses and enterprises in special
economic zones in lieu of all national and local taxes.
Sec. 203. Share from Expanded Value Added Tax (EVAT) (749). This account is
used to record the LGU share from the 20% of the 50% of national taxes collected in
excess of the increase in collection for the immediate preceding calendar year.
Sec. 204. Share from National Wealth (750). This account is used to record the
share of local governments from the proceeds derived from the utilization and
development of the national wealth such as: lands of public domain, waters, minerals,
coal, petroleum, mineral oils, potential energy forces, gas and oil deposits, forest
products, wildlife, flora and fauna, fishery and aquatic resources, and all quarry
products (Article 386, IRR, R.A. No. 7160).
Subsidiary:
Share of LGUs from National Government –
This represents the forty (40%) percent share of LGUs from the gross
collections derived by the National Government during the preceding fiscal
year from mining taxes, fees or charges, including related surcharges, interest
or fines and from each share in any co-production, joint venture or production
sharing agreement in the utilization and development of the National Wealth
within their territorial jurisdiction.
Share of LGUs from Government Agencies and Government-Owned or

Controlled Corporations –
This represents the LGUs share from the proceeds derived by any government
agency or government-owned or controlled corporation engaged in the
utilization and development of national wealth within their territories based on
the one (1%) percent of the gross sales or receipts of the preceding calendar
year or forty (40%) percent of the mining taxes, royalties, etc. that the GA or
GOCCs would have paid if it were not otherwise exempt.
Sec. 205. Amusement Tax (751). This account is used to record taxes imposed on
gross receipts from admission fees collected by the proprietors, lessees or operators of
theaters, cinemas, concert halls, circuses, boxing stadia and other places of amusement.
(Article 229, IRR RA 7160)
Sec. 206. Sand and Gravel Tax (752). This account is used to record taxes imposed
on ordinary stones, sand, gravel, earth and other quarry resources such as but not
limited to marl, marble, granite, volcanic cinders, basalt, tuff and rock phosphate,
extracted from public lands or from the beds of seas, lakes, rivers, streams, creeks and
other public waters. (Article 227, IRR R.A. No. 7160).
Sec. 207. Tax on Delivery Trucks and Vans (753). This account is used to record
the annual fixed tax imposed on every truck, van or any vehicle used by manufacturers,
producers, wholesalers, dealers or retailers in the delivery or distribution of distilled
spirits, fermented liquors, softdrinks, cigars and cigarettes, and other products as may
be determined by the Sanggunian Panlalawigan or Sanggunian Panlungsod. (Article
230 and 237 of IRR RA 7160)
Sec. 208. Miscellaneous Other Taxes (759). This is used to record other taxes not
classified among the given tax accounts.
Sec. 209. Fines and Penalties - Tax Revenue (760). This account is used to record
all fines and penalties imposed in relation to tax revenues.
OTHER SPECIFIC INCOME
Sec. 210. Registration Fees (761). This account is used to record registration fees
collected by government agencies and local government units like registration of cart
and sledge, registration of large cattle, registration on civil status and marriage fees.
Sec. 211. Tuition/Affiliation Fees (762). This account is used to record

tuition/affiliation fees received from students of state universities and colleges and
other schools.
Sec. 212. Hospital Fees (763). This account is used to record regular charges by
hospital for service rendered to patients.
Sec. 213. Medical, Dental and Laboratory Fees (764). This account is used to
record fees received for medical, dental and laboratory examinations aside from
hospital fees.
Sec. 214. Library Fees (765). This account is used to record fees received by schools
and other agencies for use of the library.
Sec. 215. Athletic and Cultural Fees (766). This account is used to record fees
collected from students for athletic and cultural activities.
Sec. 216. Comprehensive Examination Fee (767). This account is used to record
fees collected from students and professionals for the conduct of comprehensive
examinations.
Sec. 217. Transcript of Records Fee (768). This account is used to record fees collected
from students for the issuance of transcript of records.
Sec. 218. Diploma and Graduation Fees (769). This account is used to record fees
collected from students for the production of diploma and conduct of graduation activities.
Sec. 219. Inspection Fees (770). This account is used to record fees collected for the
conduct of inspection by authorized government officials.
Sec. 220. Permit Fees (771). This account is used to record fees collected for the issuance
of permit by authorized government agencies and local government units like Mayor's Permit
Fees, Building Permit Fees, Burial Permit Fees, Bicycle Permit Fees, Tricycle Permit Fees,
Occupancy Permit Fees, Electrical Permit Fees, Plumbing Permit Fees, etc.
Sec. 221. Garbage Fees (772). This account is used to record fees collected for the
collection and disposal of wastes/garbage.
Sec. 222. Clearance/Certification Fees (773). This account is used to record fees collected
for the issuance of clearances/certificates to individuals/organizations/groups/
agencies/corporations by government agencies and local government units like Police
Clearance Fees, Zonal Location Clearance Fees, and others.
Sec. 223. Fishery Rentals, Fees and Charges (775). This account is used to record the
fees and charges imposed on the fishery privileges granted in the use of municipal waters and
issuance of licenses for the operation of fishing vessels weighing three (3) tons or less.
Sec. 224. Printing and Publication Income (776). This account is used to record receipts
from sale of printed materials and other publications produced by government agencies and
local government units.
Sec. 225. Income from Canteen Operations (777). This account is used to record income
from canteen/cafeteria/eatery operated by government agencies and LGU's.
Sec. 226. Income from Dormitory Operations (778). This account is used to record
receipts from dormitory operations.
Sec. 227. Receipt from Lease of Properties (779). This account is used to record income
realized from lease of properties.
Sec. 228. Receipt from Communication Facilities (780). This account is used to record
income realized from communication facilities owned by government agencies.
Sec. 229. Receipt from Waterworks Systems (781). This account is used to record income
realized from services rendered of waterworks systems.
Sec. 230. Receipt from Transportation System (782). This account is used to record
income realized from services rendered of transportations systems.
Sec. 231. Receipt from Markets (783). This account is used to record income realized from
the operation of the market including rental of market stalls, etc.
Sec. 232. Receipt from Slaughterhouses (784). This account is used to record income
realized from the operation of the slaughterhouse.
Sec. 233. Receipt from Cemeteries (785). This account is used to record income realized
from the operation of the cemeteries.
Sec. 234. Toll Fees (786). This account is used to record income realized from collection of
toll fees from roads, bridges and ferries owned/constructed and operated by government
agencies.
Sec. 235. Landing and Parking Fees (787). This account is used to record income realized
from the use of runways and airports by foreign and domestic airlines. This account shall also
be used to record income collected from operation of parking spaces.
Sec. 236. Other Income from School Services (788). This account is used to record
income from services rendered by schools, colleges and universities not elsewhere classified.
Sec. 237. Other Income from School Business Operations (789). This account is used to
record other income from business operations of schools, colleges and universities not
elsewhere classified.
Sec. 238. Other Income from Hospital Services (790). This account is used to record
income from other services rendered by hospitals not elsewhere classified.
Sec. 239. Other Income from Hospital Business Operations (791). This account is used to
record income from other hospital business operations not elsewhere classified.
Sec. 240. Other Specific Income of LGUs (792). This account is used to record all other
specific income of local government units from services rendered and business operations.
Sec. 241. Fines and Penalties - Other Specific Income (799). This account is used to
record all collections of fines and penalties relative to all the revenues classified under the
specific income.
EXPENSES
PERSONAL SERVICES
Sec. 242. Salaries and Wages - Regular Pay (801). This account is used to record the pay
proper of regular government employees for services rendered.
Sec. 243. Salaries and Wages - Part-Time Pay (802). This account is used to record the
pay proper of part-time government employees for services rendered.
Sec. 244. Salaries and Wages - Casual/Contractual (803). This account is used to record
the pay proper of casuals and contractual government employees for services rendered.
Sec. 245. Personnel Economic Relief Allowance (PERA) (804). This account is used to
record allowances granted to all appointive national and local government employees
occupying itemized plantilla positions, casual and contractual employees and to uniformed
personnel of the AFP, DILG and NAMRIA pursuant to the annual appropriation act.
Sec. 246. Additional Compensation (ADCOM) (805). This account is used to record the
payment of allowance authorized under Administrative Order No. 53 dated May 17, 1993
granted to all government personnel whether regular or casual; and those on temporary status
or contractual personnel whose employment is in the nature of a regular employee.
Sec. 247. Representation Allowance (RA) (806). This account is used to record
representation allowance granted to authorized officials and employees while in the actual
performance of their respective functions.
Sec. 248. Transportation Allowance (TA) (807). This account is used to record allowances
granted to authorized officials and employees for transportation expenses which shall be paid
from appropriations provided for their respective offices.
Sec. 249. Clothing Allowance (808). This account is used to record allowance granted to
government officials and employees for office uniforms at such amount as may be authorized
by applicable General Appropriations Act / Appropriation Ordinance which may be given in
kind or in cash.
Sec. 250. Honoraria (809). This account is used to record payment for services rendered by
government personnel performing activities or discharging duties in addition to, or over and
above their regular functions, and payment of services of personnel with expertise or
professional standing in recognition of his broad and superior knowledge in specific fields.
Sec. 251. Hazard Pay (810). This account is used to record compensation paid to employees
who are working or assigned in difficult, dangerous, strife-torn or embattled areas as certified
by the Department of National Defense, and whose lives are directly exposed to work
conditions which may cause injury, sickness or death or harmful change in the human
organism, such as; exposure to harmful chemicals, wastes and pollutants, micro-organisms
and other harmful elements, or situations that endanger life or health as certified by authorized
government agency.
Sec. 252. Overtime and Night Pay (811). This account is used to record payment for
working in excess of the minimum total hours set for a given period to employees of the
agency.
Sec. 253. Holiday Pay (812). This account is used to record compensation paid to
government employees who rendered authorized services on holidays.
Sec. 254. Christmas Bonus (813). This account is used to record year-end bonus to
government officials and employees as authorized by law.
Sec. 255. Cash Gift (814). This account is used to record cash gift granted to government
officials and employees as authorized by law.
Sec. 256. Productivity Incentive Benefits (815). This account is used to record the
payment of incentive benefits for the recognition of government officials and employees'
productivity and performance pursuant to law.
Sec. 257. Other Bonuses and Allowances (816). This account is used to record the
payment of other bonuses and allowances not classified under the specific accounts.
Sec. 258. Life and Retirement Insurance Contributions (817). This account is used to
record the government share in premium contributions to life insurance and retirement funds of
the GSIS.
Sec. 259. PAG-IBIG Contributions (818). This account is used to record the government's
share of premium contributions to the Home Development Mutual Fund (HDMF).
Sec. 260. PHILHEALTH Contributions (819). This account is used to record the
government share in premium contributions to health insurance funds maintained with the
Philippine Health Insurance Corporation (PHIC).
Sec. 261. ECC Contributions (820). This account is used to record the government's share
in premium contributions to the Employees' Compensation Commission (ECC).
Sec. 262. Pensions and Retirement Benefits (821). This account is used to record
pensions and retirement benefits of government officials and employees or their dependents
for past services rendered.
Sec. 263. Terminal Leave Benefits (822). This account is used to record payment for the
money value of the total accumulated leave credits of government officials and employees
upon retirement or voluntary separation.
Sec. 264. Health Workers’ Benefits (823). This account is used to record benefits given to
health workers.
Sec. 265. Subsistence and Quarters’ Allowances (824). This account is used to record
subsistence and quarters’ allowances given to government officials and employees.
Sec. 266. Longevity Pay (825). This account is used to record longevity pay given to
government officials and employees as authorized by law.
Sec. 267. Other Personnel Benefits (830). This account is used to record benefits not
otherwise classified under any of the specific personnel benefits accounts.
MAINTENANCE AND OTHER OPERATING EXPENSES
Sec. 268. Traveling Expenses - Local (831). This account is used to record expenses
incurred in the movement of persons within the Philippines whether employed in the
government or not, such as; transportation, travel per diems; hire of guides or patrol; ferriage;
transportation of personal baggage or household effects; bus, rail road, airline, and steamship
fares; tips, airport fees, porter fees, transfers, etc. of persons while on official travel; charter of
boats, launches, cars, road tolls, parking fees and all other similar expenses.
Sec. 269. Traveling Expenses - Foreign (832). This account is used to record expenses
incurred in the movement of persons outside the Philippines whether employed in the
government or not, such as; transportation of personal baggage or household effects; bus, rail
road, airline, and steamship fares; tips, airport fees, porter fees, transfers, passport fees, etc.
of persons while on travel; charter of boats, launches, cars, road tolls, parking fees and all
other similar expenses.
Sec. 270. Training and Seminar Expenses (833). This account is used to record expenses
incurred for participation/attendance of personnel to training, conferences and
seminar/workshops. It also includes expenses incurred related to training such as payment of
honoraria to lecturers, hand-outs given, supplies and materials used, etc.
Sec. 271. Water (834). This account is used to record costs of water used/consumed in
government facilities in connection with government operations and projects.
Sec. 272. Electricity (835). This account is used to record costs of electric power or
illumination used/consumed in government facilities in connection with government operations
and projects.
Sec. 273. Cooking Gas (836). This account is used to record the cost of cooking gas used in
connection with government operations, activities and projects.
Sec. 274. Telephone/Telegraph and Internet (837). This account is used to record the costs
of transmission of messages, such as: telephone, facsimile machine telegraph, wireless and
cable charges and tolls, telegraph messenger services, and internet services.
Sec. 275. Postage and Deliveries (838). This account is used to record the costs of postage
charges, rent of post office boxes and cost of deliveries of letters, other messages and
documents, cost of transporting official forms, documents/records and goods, etc.
Sec. 276. Subscription Expenses (839). This account is used to record the cost of
subscription to library materials, such as: magazines, periodicals, documents and other
reading materials.
Sec. 277. Advertising Expenses (840). This account is used to record the cost of
advertising and publication of notices in newspapers and magazines of general circulation,
television, radio and other forms of media.
Sec. 278. Rent Expenses (841). This account is used to record rental fees for the use of
facilities or equipment; and costs for the use of offices and grounds, quarters of personnel,
arsenal, barracks, warehouses, office machines, and other equipment.
Sec. 279. Insurance Expense (842). This account is used to record premiums for the
insurance of government properties such as building, equipment, motor vehicle, etc.
Sec. 280. Fidelity Bond Premium (843). This account is used to record expenses for
premium on fidelity bond of accountable officers.
Sec. 281. Survey Expense (844). This account is used to record expenses incurred for the
conduct of survey of government land.
Sec. 282. Storage Expenses (845). This account is used to record expenses paid to other
agencies or private individuals/entities for the storage/safekeeping of government goods and
properties.
Sec. 283. Zoological/Animal Maintenance Expenses (846). This account is used to record
expenses for food/medicines/veterinary/other maintenance needs of animals in government
zoos, wildlife, sanctuary, etc.
Sec. 284. Printing and Binding Expenses (847). This account is used to record the cost of
producing, printing, and binding materials such as: books, reports, catalogues, documents and
other reading matters.
Sec. 285. Accountable Forms Expenses (848). This account is used to record the cost of
accountable forms used in the course of government operations.
Sec. 286. Office Supplies Expenses (849). This account is used to record the costs of all
expendable commodities used in connection with government operations.
Sec. 287. Medical, Dental and Laboratory Supplies Expenses (850). This account is used
to record the cost of medicines and other medical, dental and laboratory supplies used during
the accounting period.
Sec. 288. Food/Non-Food Expenses (851). This account is used to record expenses for
food, clothing and other maintenance needs of patients in hospital, center, sanitarium and
inmates in penitentiary/sanitarium including those distributed to people affected by
calamities/disasters/ground conflict. All purchases of perishable items shall be recorded as an
expense under this account.
Sec. 289. Gasoline, Oil and Lubricants Expenses (852). This account is used to record the
cost of gasoline, oil and lubricants consumed by government vehicles and other equipment in
connection with government operations and projects.
Sec. 290. Agricultural Supplies Expenses (853). This account is used to record the cost of
fertilizers, pesticides and agricultural supplies issued for use in connection with government
operations and projects.
Sec. 291. Legal Services (854). This is used to record the cost of legal services rendered by
private lawyers to any government agency as authorized by law.
Sec. 292. Auditing Services (855). This account is used to record the amount due the
Commission on Audit for auditing services rendered or expenses incurred by the Auditing Unit
of any government agency.
Sec. 293. Consultancy Services (856). This account is used to record the cost of services of
individual/private companies, or other government agencies hired to undertake a specific work
or job requiring special or technical skills not available in the concerned agency.
Sec. 294. General Services (857). This account is used to record the expenditures for
services not elsewhere classified, such as carpentry, plumbing, electrical, etc.
Sec. 295. Security/Janitorial Services (858). This account is used to record the cost of
security/janitorial services contracted by the agency.
Sec. 296. Taxes, Duties and Licenses (859). This account is used to record payments and
provisions for all taxes, duties and licenses except income tax.
Sec. 297. Tax Credit Subsidy (860). This account is used to record the amount due to
taxpayers who are entitled/qualified to avail of the tax credit or duty drawback and tax
incentives authorized under the National Internal Revenue Code, Tariff and Customs Code of
the Philippines, and Omnibus Investment Code.
Sec. 298. Public Infrastructure Repairs and Maintenance (862). This account is used to
record the cost of repairing and maintaining public infrastructures owned by the government.
Sec. 299. Reforestation Project Maintenance (863). This account is used to record the cost
of maintaining reforestation projects owned by the government.
Sec. 300. Buildings Maintenance (864). This account is used to record the cost of repairing
and maintaining buildings owned by the government.
Sec. 301. School Buildings Maintenance (865). This account is used to record the cost of
repairing and maintaining school buildings owned by the government.
Sec. 302. Markets and Slaughterhouses Maintenance (866). This account is used to
record the cost of repairing and maintaining markets and slaughterhouses owned by the
government.
Sec. 303. Hospitals and Health Center Maintenance (867). This account is used to record
the cost of repairing and maintaining hospitals, sanitaria and health centers owned by the
government.
Sec. 304. Other Structures Maintenance (868). This account is used to record the cost of
repairing and maintaining structures owned by the government other than those classified
under specific structure maintenance accounts.
Sec. 305. Industrial Machineries Maintenance (869). This account is used to record the
cost of repairing and maintaining industrial machineries owned by the government.
Sec. 306. Other Machinery Maintenance (870). This account is used to record the cost of
repairing and maintaining other machineries owned by the government.
Sec. 307. Firefighting Equipment and Accessories Maintenance (871). This account is
used to record the cost of repairing and maintaining firefighting equipment and accessories
owned by the government.
Sec. 308. Construction and Heavy Equipment Maintenance (872). This account is used to
record the cost of repairing and maintaining construction and heavy equipment owned by the
government.
Sec. 309. Technical and Scientific Equipment Maintenance (874). This account is used to
record the cost of repairing and maintaining technical and scientific equipment owned by the
government.
Sec. 310. IT Equipment Maintenance (875). This account is used to record the cost of
repairing and maintaining IT equipment owned by the government.
Sec. 311. Telegraph, Telephone, Cable, TV and Radio Equipment Maintenance (876).
This account is used to record the cost of repairing and maintaining telegraph, telephone,
cable, TV and radio equipment owned by the government.
Sec. 312. Artesian Wells, Reservoirs, Pumping Stations and Conduits Maintenance
(877). This account is used to record the cost of repairing and maintaining artesian wells,
reservoirs, pumping stations and conduits.
Sec. 313. Motor Vehicles Maintenance (878). This account is used to record the cost of
repairing and maintaining motor vehicles owned by the government.
Sec. 314. Watercrafts Maintenance (879). This account is used to record the cost of
repairing and maintaining watercrafts owned by the government.
Sec. 315. Trains Maintenance (880). This account is used to record the cost of repairing and
maintaining trains owned by the government.
Sec. 316. Aircrafts/Aircraft Ground Equipment Maintenance (881). This account is used
to record the cost of repairing and maintaining aircrafts and aircraft ground equipment.
Sec. 317. Office Equipment Maintenance (882). This account is used to record the cost of
repairing and maintaining office equipment owned by the government.
Sec. 318. Other Equipment Maintenance (883). This account is used to record the cost of
repairing and maintaining equipment owned by the government other than those classified
under specific equipment maintenance accounts.
Sec. 319. Furniture and Fixtures Maintenance (884). This account is used to record the
cost of repairing and maintaining furniture and fixtures owned by the government.
Sec. 320. Ordnance Maintenance (885). This account is used to record the cost of repairing
and maintaining ordnance owned by the government.
Sec. 321. Other Repairs and Maintenance (886). This account is used to record the cost of
repairing and maintaining other types of property, plant and equipment owned by the
government not classified under specific property, plant and equipment accounts.
Sec. 322. Awards and Indemnities (887). This account is used to record indemnities for
destruction of property, death or injury to persons, awards by courts or by administrative
bodies. Examples are indemnities for persons injured or killed or property destroyed through
military action, indemnities for property taken by the government through civil action, awards
and compensation provided by laws.
Sec. 323. Rewards and Other Claims (888). This account is used to record payments of
rewards for any informer or for any act done in connection with the apprehension of an
offender. This also includes indemnities paid to persons in the government service who
become disabled on account of sickness, injuries, or death which occurred or which were
contracted or sustained in the performance of official duty.
Sec. 324. Grants and Donations (889). This account is used to record all non-repayable
transfers of funds and property given to other levels of government, private sector, non-
government organizations, or international institutions and other funds. Grants encompass
reparations and gifts given for particular projects or programs, general budget support or for
any other purposes.
Sec. 325. Representation Expense (890). This account is used to record expenses incurred
for meetings, conferences and official entertainment as authorized by law.
Sec. 326. Extraordinary and Miscellaneous Expenses (891). This account is used to
record extraordinary expenses incurred by government officials and those of equivalent rank
as maybe authorized by the Department of Budget and Management (DBM) for public
relations, membership fees in government associations and in national professional
organizations duly accredited by the Professional Regulation Commission.
Sec. 327. Confidential and Intelligence Expenses (892). This account is used to record the
cost of services which are confidential in nature, rendered by persons who are temporarily
employed by authorized administrative or executive officers to carry on successfully
administrative activities; compensation of informers employed to detect the whereabouts of
criminals or the existence of prohibited games which compensation shall not exceed 10% of
the fines imposed upon the convicts and other expressly authorized confidential expenses for
which appropriations have been approved specifically for the purpose.
Sec. 328. Anti-insurgency/Contingency Expenses (893). This account is used to record
unforeseen expenses arising from the occurrence of insurgency/natural calamities or financial
dislocation on account thereof.
Sec. 329. Subsidy to National Government Agencies (894). This account is used to record
the amount transferred to NGAs pursuant to a provision of Law, memorandum of agreement,
etc.
Sec. 330. Subsidy to Local Government Units (895). This account is used to record
financial assistance granted to a local government unit for the purpose of pursuing programs or
policies of public interest.
Sec. 331. Subsidy to Government Corporations (896). This account is used to record
financial assistance granted to a government-owned and/or controlled corporation to cover
operational expenses that are not supported by corporate revenues or to cover corporate
deficit and losses.
Sec. 332. Subsidy to Other Funds (897). This account is used to record in the General
Fund (GF) books amount transferred to Special Education Fund (SEF) as aids or contributions.
Sec. 333. Subsidy to Special Accounts (898). This account is used to record the amount of
funds transferred to special accounts in the GF.
Sec. 334. Membership dues to International Institutions (901). This account is used to
record membership dues, contributions/cost of approved participation in international
organizations.
Sec. 335. Depreciation - Land Improvements (902). This account is used to record
depreciation of Land Improvements due to wear and tear, and deterioration.
Sec. 336. Depreciation - Leasehold Improvements (903). This account is used to record
depreciation of leasehold improvements due to wear and tear, and deterioration.
Sec. 337. Depreciation - Buildings (904). This account is used to record depreciation of
buildings used in government operations due to wear and tear, and deterioration.
Sec. 338. Depreciation - School Buildings (905). This account is used to record
depreciation of school buildings used in government operations due to wear and tear and
deterioration.
Sec. 339. Depreciation - Markets and Slaughterhouses (906). This account is used to
record depreciation of markets and slaughterhouses used in government operations due to
wear and tear and deterioration.
Sec. 340. Depreciation - Hospitals and Health Centers (907). This account is used to
record depreciation of hospitals and health centers used in government operations due to wear
and tear and deterioration.
Sec. 341. Depreciation - Other Structures (908). This account is used to record
depreciation of other structures used in government operations due to wear and tear, technical
innovations and deterioration.
Sec. 342. Depreciation - Industrial Machineries (909). This account is used to record
depreciation of industrial machineries used in government operations due to wear and tear,
obsolescence and/or technological innovation.
Sec. 343. Depreciation - Other Machineries (910). This account is used to record
depreciation of machinery and equipment used in government operations due to wear and
tear, obsolescence and/or technological innovation.
Sec. 344. Depreciation - Firefighting Equipment and Accessories (911). This account is
used to record depreciation of firefighting equipment and accessories used in government
operations due to wear and tear, obsolescence and/or technological innovation.
Sec. 345. Depreciation - Construction and Heavy Equipment (912). This account is used
to record depreciation of construction and heavy equipment used in government operations
due to wear and tear, obsolescence and/or technological innovation.
Sec. 346. Depreciation - Technical and Scientific Equipment (914). This account is used
to record depreciation of technical and scientific equipment used in government operations due
to wear and tear, obsolescence and/or technological innovation.
Sec. 347. Depreciation - IT Equipment (915). This account is used to record depreciation of
IT equipment used in government operations due to wear and tear, obsolescence and/or
technological innovation.
Sec. 348. Depreciation - Telegraph, Telephone, Cable, TV and Radio Equipment (916).
This account is used to record depreciation of telegraph, telephone, cable, TV and radio
equipment used in government operations due to wear and tear, obsolescence and/or
Sec. 349. Depreciation - Artesian Wells, Reservoirs and Pumping Stations and Conduits
(917). This account is used to record depreciation of artesian wells, reservoirs and pumping
stations used in government operations due to wear and tear, obsolescence and/or
Sec. 350. Depreciation - Motor Vehicles (918). This account is used to record depreciation
of motor vehicles used in government operations due to wear and tear, obsolescence and/or
Sec. 351. Depreciation - Watercrafts (919). This account is used to record depreciation of
watercrafts used in government operations due to wear and tear, obsolescence and/or
Sec. 352. Depreciation - Trains (920). This account is used to record depreciation of trains
used in government operations due to wear and tear, obsolescence and/or technological
innovation.
Sec. 353. Depreciation – Aircrafts/Aircraft Ground Equipment (921). This account is used
to record depreciation of aircrafts used in government operations due to wear and tear,
obsolescence and technological innovation.
Sec. 354. Depreciation - Office Equipment (922). This account is used to record
depreciation of office equipment used in government operations due to wear and tear,
obsolescence and technological innovation.
Sec. 355. Depreciation - Other Equipment (923). This account is used to record
depreciation of other equipment not included under the foregoing classification of equipment,
used in government operations due to wear and tear, obsolescence and technological
innovation.
Sec. 356. Depreciation - Furniture and Fixtures (924). This account is used to record
depreciation of furniture and fixtures used in government operations due to wear and tear and
deterioration, obsolescence and technological innovations
Sec. 357. Depreciation - Ordnance (925). This account is used to record depreciation of
ordnance used in government operations due to wear and tear, obsolescence and
Sec. 358. Depreciation - Books (926). This account is used to record depreciation of books
used in government operations due to wear and tear and obsolescence.
Sec. 359. Depreciation - Other Property, Plant and Equipment (927). This account is used
to record depreciation of other property, plant and equipment used in government operations
due to wear and tear, deterioration, obsolescence and technological innovation.
Sec. 360. Obsolescence - IT Software (928). This account is used to record the reduction in
the book value of IT Software used in the operation due to change in
legislation/policies/regulations, obsolescence and technological innovation.
Sec. 361. Bad Debts Expense (929). This account is used to record the amount of
receivables estimated to be uncollectible.
Sec. 362. Discount on Real Property Tax (937). This account is used to record discount
granted on the basic RPT paid in case of advance and prompt payment.
Sec. 363. Discount on Special Education Tax (938). This account is used to record
discount granted on the additional one percent tax on RPT in case of advance and prompt
payment.
Sec. 364. Loss on Sale of Assets (947). This account is used to record the amount of loss
resulting from the sale of assets where the proceeds is lower than the net book value (book
value less accumulated depreciation).
Sec. 365. Loss of Assets (948). This account is used to record the costs of losses of
government funds and property due to thief, fortuitous events/calamities/civil unrest and war
based on approved relief from accountabilities.
Sec. 366. Other Expenses (950). This account is used to record the cost of all other
expenses not otherwise classified under any of the specific expense accounts. This includes
books distributed to public schools, survey expenses, etc.
FINANCIAL EXPENSES
Sec. 367. Bank Charges (951). This account is used to record the amount levied by a bank
for various services, such as charges for cost of check booklets, inter-branch transactions, cost
of stoppage of payment, etc.
Sec. 368. Interest Expenses (952). This account is used to record charges imposed as a
consequence of the use of money belonging to others, such as interest on bonds, loans,
advances, treasury bills, treasury notes, certificate of indebtedness, and other interest bearing
financial obligations.
Sec. 369. Documentary Stamps Expense (954). This account is used to record
documentary stamps expense for treasury bills issued by the National Government and other
transactions of national government agencies.
Sec. 370. Other Financial Charges (955). This account is used to record other charges
imposed by creditors such as: front-end fees, management fees, and other charges not
classified under the specific accounts on financial expenses.
Sec. 371. Foreign Exchange (FOREX) Loss (956). This account is used to record losses
incurred in the conversion of foreign currencies to the Philippine peso.
CHAPTER 4. THE NEW CODING STRUCTURE
Sec. 372. Coding defined. - Coding is the systematic assignment of numbers to distinguish items within
a given classification from each other.
Sec. 373. Advantages. - The New Coding System is designed to achieve uniformity in accounting and
reporting facility in consolidating financial data; and adaptability to computerization.
Sec. 374. LGU code. - A series of numbers is assigned to provinces, cities and municipalities. Please
refer to Appendix A for the LGU Code. The coding structure for LGU codes shall be:
Examples:
Caloocan City 00-001-00
Province of Pampanga 03-061-00
Municipality of Apalit, Pampanga 03-061-01
Municipality of Jolo, Sulu 14-295-03
Sec. 375. Fund/Special Account Code. - The following fund codes and special account codes shall be
used by local government units:
Fund Code
General Fund 100
Special Education Fund 200
Trust Fund 300
The following special account codes shall be used under the General Fund:
Special Account Code

General Fund Proper 001
20% Development Fund 002
80% Share from National Wealth 003
Bond Issues 004
Convention/Conference Center 005
Electric Light and Power System 006
Hospital 007
Housing Projects 008
Ice Plant 009
Loans 010
Market Operation 011
Parking Space 012
Recreational Center 013
School 014
Slaughterhouse Operation 015
Sports Center 016
Telephone System 017
Toll Roads, Bridges and Ferries 018
Transportation System 019
Waterworks System 020
Sec. 376. Account Code. - The code of accounts prescribed in Chapter 2 on the Standard Chart of
Accounts shall be used.
Sec. 377. Responsibility Area. - The responsibility area code shall be composed of the functional
classification of expenditures and transfers. Please refer to Appendix B. The coding structure shall be:

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Volume II & III

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CHAPTER 1.

THE BOOKS OF ACCOUNTS, REGISTRIES

The books of original entry shall consist of the following journals:

a. Cash Receipts Journal

The RAAOs are as follows:

 Registry of Appropriations, Allotments and Obligations – Capital Outlay (RAAOCO);

 Plazas, Parks and Monuments

Signature Over Printed Name

Signature Over Printed Name

Signature Over Printed Name

CHAPTER 2. ACCOUNTING FORMS AND REPORTS

Original – Bank

1. Collectors – for collections received and remittances made.

Sec. 3. Elements of Financial Statements. – Elements of financial statements of government agencies

a. Assets – economic resources of an agency that are recognized and measured in

Sec. 6. Classification of Revenue/Income. – The revenue/income accounts are classified into:

a. General Income Accounts – This account group encompasses all types of

Sec. 7. Classification of Expenses. - The expense accounts are classified into:

Accounts Account Code

Asset Contra Accounts 300-399

General Account 600-699

Agency Specific Account 700-799

Personal Services 801-830

Maintenance and Other 831-950

Chapter 2. THE CHART OF ACCOUNTS

Marketable Securities

Prepaid Expenses

Other Current Assets

Long-Term Investments

Other Assets

LIABILITIES AND EQUITY

Other Liabilities

Intermediate Accounts

General Income Account

Specific Income Account

Income Taxes

Property Taxes

Taxes on International Trade and Transactions

Other Taxes

Other Specific Income

Personal Services

Maintenance and Other Operating Expenses

Financial Expenses

* For Use of National Government Agencies

Sec. 11. Description of Accounts. Each account in the chart of accounts is

Debit this account for:

Credit this account for:

Deposits with depository banks

Debit this account for:

Cash advances granted as Petty Cash Fund to duly designated

Credit this account for:

Final liquidation of Petty Cash Fund

Debit this account for:

Cash advances to duly designated regular or special disbursing

Credit this account for:

Liquidation/Authorized official payments made by disbursing

Debit this account for:

Deposits of local currency in current account

Credit this account for:

Debit this account for:

Deposits of local currency in savings account

Credit this account for:

Withdrawal or reduction of deposits