Accounting for Revenue and

Other Receipts
Lester C. Arnado
 TRA A serially-numbered document that should be
used by the NGAs in the remittance of

Other Receipts
Tax Remittance withheld taxes on funds coming from DBM. This
advice form is being attached to every
withholding tax return filed as payment
for taxes withheld

National Government Agencies – the constructive remittance to BIR and BOC of taxes and
custom’ duties withheld and the constructive receipt of NCA for those taxes and custom
duties
BIR and BOC – the constructive receipt of tax revenue and custom duties
BTr – the constructive receipt of taxes and custom duties remitted
 Other Receipts

The total Notice of Allocation (NCA) received by Agency X for the first quarter of the
current year included NCA for TRA in the amount of P50,000. Said amount was later
remitted to BIR for tax withheld by Agency X. This remittance was appropriately
recognized by Bureau of Treasury.
 Other Receipts

 Books of Agency X (withholding Agency)

Account Title Account Debit Credit

Code
Cash- Tax remittance advice 10104070 P50,000
Subsidy from National Government 40301010 P50,000
(To recognize constructive receipt of NCA for TRA)

Due to BIR 20201010 P50,000

Cash- Tax remittance advice 10104070 P50,000
(To recognize constructive remittance to BIR of taxes withheld through TRA)
 Other Receipts

 BIR books

Account Title Account Debit Credit

Code
Cash- Tax remittance advice 10104070 P50,000
Income Tax 40101010 P50,000
(To recognize constructive receipt of taxes remitted by NGAs through TRA)
 Other Receipts

 BTr books

Account Title Account Debit Credit

Code
Subsidy to NGAs 50214010 P50,000
Cash- Tax remittance advice 10104070 P50,000
(To recognize constructive receipt of remittance of taxes by NGAs through TRA)
 Other Receipts

The total Notice of Allocation (NCA) received by Agency X for the first quarter of the
current year included NCA for TRA in the amount of P50,000. Said amount was later
remitted to BIR for tax withheld by Agency X. This remittance was appropriately
recognized by Bureau of Treasury.
 Other Receipts

TRA
Advances for Payroll
For payment of salaries,
A serially-numbered document that should be
Advances to Officers
used by the NGAs in the remittance of
Employees
withheld taxes on funds coming from DBM. This
and
Taxother
wages, and Remittance
personnel For official travels
form is being attached to every
advicebenefits
withholding tax return filed as payment
Refund of excess
for taxes withheld
cash advances
Advances to Special granted to officers
and employees
National Government Agencies – the constructive remittance to BIR and BOC of taxes and
Advances for Operating
Disbursing Officer
custom’ duties withheld and the constructive receipt of NCA for those taxes and custom
For specialduties
purpose/time-bound Expenses
undertakings to be liquidated Granted to regular disbursing
BIR and BOC – the constructive
within specific period. It includes receipt of tax revenue and custom duties
officer for operating expenses of
labor
BTrpayroll for projects receipt of taxes and custom duties remitted
– the constructive operating/field units and foreign
undertaken by administration. The post not maintaining complete set
same is credited upon liquidation. of books
 Other Receipts

The following excess cash advances granted to officers and employees of Bureau ABC
were made available:
Excess
Advances granted to employees for official travel P 20,000
Advances granted to disbursing officer for operating 30,000
expenses
Advances granted to disbursing officer for payroll 10,000

The entire excess cash advances were collected by collecting officer and remitted to
Bureau of Treasury.
 Other Receipts

Account Title Account Debit Credit

Code
Cash- Collecting Officers 10101010 P60,000
Advances to Officers and Employees 19901040 P20,000
Advances for Operating Expenses 19901010 P30,000
Advances for Payroll 19901020 P10,000
(To recognize collection of refund of excess cash advances)

Cash- Treasury/Agency Deposit, Regular 10104010 P60,000

Cash- Collecting Officers 10101010 P60,000
(To recognize remittance of collections to BTr)
Responsibility Accountability Liability over
over
Government
Miscellaneous Transactions over
Government
Government
Funds and
Funds and Funds and Property
Property Property

isExpenditures
ItEvery
theofficer
declaredof of government
any
policy
government funds
of the State or all
agency
that uses
whoseof duties
government
resources ofpermit property
the government in shall
to require violation
the of lawor
possession
be managed, or
regulations
expended
custody shallinbe
orofutilized
government a funds
personal
accordance liability
orwith lawsofand
property theregulations,
shall official
be or employee
accountable foundand
and therefore
safeguarded toagainst
be
fordirectly
theloss
orsafekeeping
wastage through
thereofillegal
in conformity
or improperwith
disposition,
law. Everywith
Accountable responsible
a view toOfficer
ensuring
shall therefore.
efficiency,
be properly
economy and effectiveness in bonded the operations
in accordance
of government.
with lawThe responsibility to take
care that such policy is faithfully adhered to rests directly with the chief or head of the
government agency concerned.
 Miscellaneous Transactions

1
RECEIPT OF
SUBSIDY/ASSISTANCE
FROM OTHER NGAS,
LGUS, GOCCS, AND
OTHER FUNDS

3
 Miscellaneous Transactions

The Collecting Officer of agency ABC received the following cash

subsidy/assistance and issued official receipts:

Subsidy from Bureau XYZ P 200,000

Assistance from local government of Bataan 100,000
Assistance from GSIS 100,000

Accordingly, these collections were remitted to Bureau of Treasury.

 Other Receipts

Account Title Account Debit Credit

Code
Cash- Collecting Officers 10101010 P400,000
Subsidy from Other NGAs 40301020 P200,000
Assistance from LGUs 40301030 P100,000
Assistance from GOCCs 40301040 P100,000
(To recognize receipt of subsidy/assistance from other government agencies)

Cash- Treasury/Agency Deposit, Trust 10104030 P400,000

Cash- Collecting Officers 10101010 P400,000
(To recognize remittance of collections to BTr)
 Miscellaneous Transactions

1 PERFORMANCE
RECEIPT OF BOND/SECURITY
SUBSIDY/ASSISTANCE DEPOSITS
FROM OTHER NGAS,
LGUS, GOCCS, AND
OTHER FUNDS
2

3
 Miscellaneous Transactions

The Collecting Officer of agency DEF received P20,000 cash for

the performance bond from Contractor X to guaranty full
performance of their contract. Said amount was remitted to
Bureau of Treasury.
 Other Receipts

Account Title Account Debit Credit

Code
Cash- Collecting Officers 10101010 P20,000
Guaranty/Security Deposits Payable 19901010 P20,000
(To recognize collection of performance bond/security deposits)

Cash- Treasury/Agency Deposit, Trust 10104030 P20,000

Cash- Collecting Officers 10101010 P20,000
(To recognize remittance of collections to BTr)
 Miscellaneous Transactions

1 3
PERFORMANCE
RECEIPT OF BOND/SECURITY REFUND OF
SUBSIDY/ASSISTANCE DEPOSITS OVERPAYMENT
FROM OTHER NGAS, OF EXPENSES
LGUS, GOCCS, AND
OTHER FUNDS
2

3
 Miscellaneous Transactions

Bureau A inadvertently overpaid its supplier by P5,000 for the

office supplies it purchased. Accordingly, full refund was
received by Bureau A and remitted the same to Bureau of
Treasury.
 Other Receipts

Account Title Account Debit Credit

Code
Cash- Collecting Officers 10101010 P5,000
Office Supplies Expense 50203010 P5,000
(To recognize collection of refund of overpayment of expenses)

Cash- Treasury/Agency Deposit, Regular 10104010 P5,000

Cash- Collecting Officers 10101010 P5,000
(To recognize remittance of collections of refund of overpayment of expenses to BTr)
 Miscellaneous Transactions

1 3 COLLECTIONS MADE ON
BEHALF OF ANOTHER
PERFORMANCE
ENTITY OR NON-
RECEIPT OF BOND/SECURITY REFUND OF GOVERNMENT/PRIVATE
SUBSIDY/ASSISTANCE DEPOSITS OVERPAYMENT ORGANIZATIONS
FROM OTHER NGAS, OF EXPENSES
LGUS, GOCCS, AND
OTHER FUNDS
2 4

3
 Miscellaneous Transactions

Agency X collected fees accruing to the University of the Philippines legal

research fund in the amount of P3,000 and remitted the same to Bureau of
Treasury. The UP legal research fund and Bureau of Treasury appropriately
recognized this in their respective books.
 Other Receipts

 Books of Agency X

Account Title Account Debit Credit

Code
Cash- Collecting Officers 10101010 P3,000
Due to NGAs 20201050 P3,000
(To recognize collection of fees accruing to the UP-LRF)

Due to NGAs 20201050 P3,000

Cash- Collecting Officers 10101010 P3,000
(To recognize remittance of collections to BTr for the account of UP-LRF)
 Other Receipts

 Books of BTr

Account Title Account Debit Credit

Code
Cash in Bank- Local currency, Savings Account 10102030 P3,000
Cash- Treasury/Agency Deposit, Trust 10104030 P3,000
(To recognize receipt of remitted collections for UP-LRF)
 Other Receipts

 Books of UP-LRF

Account Title Account Debit Credit

Code
Cash- Treasury/Agency Deposit, Trust 10104030 P3,000
Trust Liabilities 20401010 P3,000
(To recognize remitted collections for UP-LRF by other NGAs)
Intra-Agency and Inter-agency
Intra-agency
Fund Transactions
Fund
Transfer

These are cash received from central office/regional

office/operating units of an entity for the purpose of
implementing specific projects.
 Miscellaneous Transactions

 Intra-agency Fund Transfer

In an intra-agency transaction, the central Office (CO) of DOH made fund

transfer to its Regional Office (RO) in the amount of P500,000 for the
implementation of its campaign against dengue in Zone A of Region X. Said
amount was accordingly remitted to Bureau of Treasury by the RO.
 Intra-agency and Inter-agency
Fund Transfer

Account Title Account Debit Credit

Code
Cash- Collecting Officers 10101010 P500,000
Due to Regional Offices 20301030 P500,000
(To recognize receipt of intra-entity fund transfer)

Cash- Treasury/Agency Deposit, Trust 10104030 P500,000

Cash- Collecting Officers 10101010 P500,000
(To recognize remittance of collections to BTr)
 Intra-Agency and Inter-agency
Fund Transactions
A Memorandum of Agreement (MOA)
When the IA is a Bureau/Regional Depending on the MOA, the fund
Office of the SA, the procedures 11 1
shalltransfers
Agency
be entered
MOA(SA)
may be
and the
provides
into by the
treated asSource
Implementing
a condition
a) If the
that the
for centrally managed projects
The Chief accountant/Head of the AgencyThe
fund(IA)
fund forto
shall the
be be undertaking
transferred
spent as specified byand
or the
sub-
shall be followed in accordance
Accounting Division/Unit of the
with entries herein provided.
IA shall, on the basis of the Notice
10 Inter-agency
Intra-agency 2
latterallotted
of the
any
SA, the IA
Memorandum
amount
project
excessto shall
the IA
shall
sufficient
of the
beshall former.
returned
ofrecognize
Agreement
for three
be a)tointhe
the receipt
shall
The
months
an
of the fund as asset at its fair value
ofThe
record
Finality if Decision
IA Auditor
in the books
disbursements
shall (NFD),
outofof
audit the
accounts
the trust 9 Fund The check
provide
operation
the 3
for the
with
IA
shall
subject be
a corresponding
for
implementation
toissued
requirements
depositofand
submission tothe
inforthe
replenishment
liability,
its
reporting.
reports
the SA shall recognize a receivable
name
projectupon
while in
trust account
of
of

any audit disallowances

accounts in accordanceas with its authorizedby government depository.
Transfer
disbursements
corresponding the
to the IA,
fundOrtransfer;
b) the total
The SA shall draw
receivable.
existing a JEV to
COA regulationstake up The IAor
project shall
cost, issue itsbeofficial receiptbyin
b) Ifasthe
may MOA determined
provides
the reports. The amount to take
up the liquidation in the RCI shall 8 4
the Heads acknowledgement.
of
stipulations the
shall recognize the
or two agenciesthe
no condition,
case. receipt of fund as
in IA
either
be net of cash advances granted
The IA shall return to the SA any
by the IA to its accountable
unused balance These These
upon are cash
are
completioncash
received 7
receivedfrom from 6
another
central
entity
A 5
separate
office/regional
for the
asset at its fair value with
subsidiary
corresponding
purpose
account shall berecognize
recordwhile
revenue,
maintained
for each
the SA
by the IA
officer. shall an expense
of the project, stipulated in the
Within ten (10) days after office/operating
of implementing
units of anspecific
entity for
projects.
thewhether
purpose or not ofa separate
corresponding to thebank
MOAthe end of each month/end of the agreed period for the project, the IA shall submit the Report
account
fund transfer.
of Checks Issued (RCI) and the RCDisb toimplementing specific
report the utilization Only actual project is
projects.
of the funds. opened.shall be reported.
expenses
The reports shall be approved by the Head of the IA.
 Miscellaneous Transactions

 Inter-agency Fund Transfer

Based on the Memorandum of agreement for a land beautification project,

Agency- “Source” of a national government made an inter-agency transfer of
fund to Agency- “Implement” by issuing check in the amount of P700,000,
which was already obligated by Agency- “Source” for that purpose. Upon
receipt of the check, Agency- “Implement” remitted this to Bureau of
Treausry.
 Intra-agency and Inter-agency
Fund Transfer

Account Title Account Debit Credit

Code
Cash- Collecting Officers 10101010 P700,000
Due to NGAs 20201050 P700,000
(To recognize receipt of inter-entity fund transfer)

Cash- Treasury/Agency Deposit, Trust 10104030 P700,000

Cash- Collecting Officers 10101010 P700,000
(To recognize remittance of collections to BTr)
 Other Receipts

An MDS check issued by Agency Z of the national government in the amount of

P20,000, for payment of a professional services, becomes stale. Accordingly, the stale
Accounting
check, which is still in the possession of the payee, was cancelled and a new check is
issued for replacement. for
Cancelled
Checks
 Other Receipts

 Cancellation and Replacement of Stale/Voided/Spoiled MDS check issued in the current year
Account Title Account Debit Credit
Code
Cash- MDS, Regular 10104040 P20,000
Accounts Payable 20101010 P20,000
(To recognize the cancellation of stale/voided/spoiled MDS checks)

Accounts Payable 20101010 P20,000

Cash- MDS, Regular 10104040 P20,000
(To recognize the replacement of stale/voided/spoiled MDS checks)

Cash- MDS, Regular 10104040 P20,000

Other Professional Services 50211990 P20,000
(To recognize the cancellation of stale/voided/spoiled MDS checks without
replacement)
 Other Receipts

 Cancellation and Replacement of Stale/Voided/Spoiled MDS check issued in the prior year
Account Title Account Debit Credit
Code
Accumulated Surplus/(Deficit) 30101010 P20,000
Accounts Payable 20101010 P20,000
(To recognize the cancellation of stale/voided/spoiled MDS checks)

Accounts Payable 20101010 P20,000

Cash- MDS, Regular 10104040 P20,000
(To recognize the replacement of stale/voided/spoiled MDS checks)

Accumulated Surplus/(Deficit) 30101010 P20,000

Other Professional Services 50211990 P20,000
(To recognize the cancellation of stale/voided/spoiled MDS checks without
replacement)
 Other Receipts

 Cancellation and Replacement of Stale/Voided/Spoiled commercial check issued in the current and prior year
Account Title Account Debit Credit
Code
Cash in Bank- Local Currency, Current account 10102020 P20,000
Accounts Payable 20101010 P20,000
(To recognize the cancellation of stale/voided/spoiled commercial checks)

Accounts Payable 20101010 P20,000

Cash in Bank- Local Currency, Current
10104040 P20,000
account
(To recognize the replacement of stale/voided/spoiled commercial checks)

Accumulated Surplus/(Deficit) 30101010 P20,000

Other Professional Services 50211990 P20,000
(To recognize the cancellation of stale/voided/spoiled commercial checks without
replacement)
 Other Receipts

Assume that the entity incurred overpayment of office supplies:

Amount paid Accounting P 100,000

Should be 90,000
Overpayment for 10,000
Disallowances
 Other Receipts

 Recording of disallowances for prior year’s

current transactions
year’s transactions
Account Title Account Debit Credit
Code
Receivables- Disallowances/Charges 10305010 P10,000
Office SuppliesSurplus/(Deficit)
Accumulated Expense 50203010
30101010 P10,000
(To recognize the overpayment of purchased office supplies directly issued to end-
user)

Cash- Collecting Officers 10101010 P10,000

Receivables- Disallowances/Charges 10305010 P10,000
(To recognize the settlement of disallowances)

Cash- Treasury/Agency Deposit, Regular 10104010 P20,000

Cash- Collecting Officers 10101010 P20,000
(To recognize the deposit of collection)
Other Receipts
At the close of the business day, the Collecting Officers shall
prepare the Report of Collections and Deposits (RCD) for
submission to Accounting Office/Unit.

The RCD shall be supported by documentary evidence such as

duplicate copies of ORs and validated deposit slips.
Reporting of
Collections
The Collecting government entity issuing electronic Official
and Deposits
Receipt (eOR) should generate and submit daily to the Auditor a
copy of RCD.

Field Offices (FOs)/Operating Units (OUs) without complete set of

books shall record their collections of income chronologically in
the cash Receipt Register (CRReg).
THANKS FOR LISTENING