Modes of Disbursements

• Check
• Cash
• Cashless payments:
• Advice to Debit Account (ADA)
• Electronic Modified Disbursement System
(eMDS)
• Cashless Purchase Card System (Credit Card)
• Non-Cash Availment Authority (NCAA)
• Tax Remittance Advice (TRA)

GOVT ACCTG & ACCTG FOR NPOs by: Z.B.Millan

 Disbursements through Check
MDS Check
Asset/Expense/Liability account xxx
Cash-Modified Disbursement
System (MDS), Regular xxx

Commercial Check
Asset/Expense/Liability account xxx
Cash in Bank-Local
Currency, Current Account xxx

GOVT ACCTG & ACCTG FOR NPOs by: Z.B.Millan

 Disbursements through Cash

Advances for/to… (Appropriate Account) xxx

Cash-Modified Disbursement
System (MDS), Regular xxx
To record the grant of cash advances
Expenses (Appropriate Account) xxx
Advances for/to… (Appropriate Account) xxx
To record the liquidation of cash advances

GOVT ACCTG & ACCTG FOR NPOs by: Z.B.Millan

Disbursements through Advice to Debit Account (ADA)

• The ADA is an accountable form used as an

authorization issued by a government agency to
the MDS-GSB instructing the bank to debit a
specified amount from its available NCA to pay the
creditors/payees listed in the LDDAP-ADA.

Accounts Payable xxx

Cash-Modified Disbursement
System (MDS), Regular xxx
To recognize payment of payables to
suppliers/contractors through ADA

GOVT ACCTG & ACCTG FOR NPOs by: Z.B.Millan