OVERVIEW OF GOVERNMENT ACCOUNTING

GOVERNMENT ACCOUNTING VS. BUSINESS ACCOUNTING

Compared to the accounting of business entities, government accounting places greater emphasis on
the following:

a. Sources and utilization of government fund; and

b. Responsibility, accountability and liability of entities entrusted with government funds and
properties.

RESPONSIBILITY, ACCOUNTABILITY AND LIABILITY OVER GOVERNMENT FUNDS AND PROPERTY

a. Government resources must be utilized efficiently and effectively in accordance with the law.
b. The head of a government agency is directly responsible in implementing this policy.
c. All other personnel entrusted with the custody of the government resources are responsible to
the head of the government agency, are accountable for the safeguarding thereof, and are liable
for any losses.

COMMISSION ON AUDIT

Responsibilities of COA

a. Promulgate accounting and auditing rules for government entities

b. Keep the general accounts
c. Submit financial reports

DEPARTMENT OF BUDGET AND MANAGEMENT

Responsibilities of DBM

a. Implementation of the national budget (set the goals and prioritization of the budget)

BUREAU OF TREASURY

Responsibilities of BTr

a. Cash custody and control of disbursements

GOVERNMENT AGENCIES

Responsibility of government agencies

a. Maintain accounting books and budget registries which are reconciled with the cash records of
the BTr and the budget records of the COA and DBM
The GAM for NGAs

a. The Government Accounting Manual for National Government Agencies (GAM for NGAs) is
promulgated by the COA under the authority conferred to it by the Philippine Constitution
b. The Gam for NGAs was promulgated to harmonize the government accounting standards with
the International Public Sector Accounting Standards (IPSAS). The IPSASs are based on the IFRS.

OBJECTIVE OF THE GAM FOR NGAs

To update the following:

a. Standards, policies, guidelines and procedures in accounting for government funds and property
b. Coding structure and accounts; and
c. Accounting books, registries, records, forms, reports and financial statements

BASIC ACCOUNTING AND BUDGET REPORTING PRINCIPLES

a. Compliance with PPSAS and relevant laws, rules and regulations

b. Accrual basis of accounting
c. Budget basis for presentation of budget information in the financial statements
d. Revised Chart of Accounts
e. Double entry bookkeeping
f. Financial statements based on accounting and budgetary records
g. Fund cluster accounting
Fund Clusters: (Code/Fund Clusters)
01 – Regular Agency Fund
02 – Foreign Assisted Project Fund
03 – Special Account – Locally Funded/Domestic Grants Fund
04 – Special Account – Foreign Assisted/Foreign Grants Fund
05 – Internally Generated Funds
06 – Business Related Funds
07 – Trust Receipts

QUALITATIVE CHARACTERISTICS

a. Understandability
b. Relevance
c. Materiality
d. Timeliness
e. Reliability
f. Faithful Representation
g. Substance over Form
h. Neutrality
i. Prudence
 j. Completeness
k. Comparability

COMPONENTS OF GENERAL-PURPOSE FINANCIAL STATEMENTS

a. Statement of Financial Position

b. Statement of Financial Performance
c. Statement of Changes in Net Assets/Equity
d. Statement of Cash Flows
e. Statement of Comparison of Budget and Actual Amounts; and
f. Notes to the Financial Statements

THE BUDGET PROCESS

NATIONAL BUDGET (government budget) is the government’s estimate of the sources and uses of
government funds within a fiscal year. This forms the basis for expenditures and is the government’s key
instrument for promoting its socio-economic activities.

Performance-Informed Budgeting (PIB) – National Expenditure Plan (NEP) and GAA 2014 will show the
link between the fund allocated for government programs and the projected results and outcomes of
these.

The Budget Cycle

1. Budget Preparation
a. Budget Call – issued by DBM. It includes next year fiscal year’s targets, agency’s budget
ceiling and other guidelines in the completion and submission of agency budget proposal.
b. Budget Hearings – Government agencies defend their budget before the technical panel of
DBM and subject for review and recommendation.
c. Presentation to the Office of the President – proposed budget is presented by DBM to the
President and its cabinet members for further refinement.
2. Budget Legislation
a. House Deliberations – c/o the House Appropriation Committee (composed of 129
members/representatives). End product is House version of General Appropriations Bill
(GAB)
b. Senate Deliberations – c/o Senate Finance Committee. End product is Senate version of
General Appropriations Bill (GAB).
c. Bicameral Deliberations – to harmonize the two GABs.
d. President’s Enactment – President and DBM will review the GAB. End product is General
Appropriations Act (GAA)
 The Approved Budget

Appropriation – is the authorization made by a legislative body to allocate funds for purposes
specified by the legislative or similar authority.

The approved budget consists of the following:

a. New General Appropriations – annual authorizations for incurring obligations, as

listed in the GAA
b. Continuing Appropriations – authorizations to support the incurrence of obligations
beyond the budget year (e.g. multi-year construction projects)
c. Supplemental Appropriations – additional appropriations to augment the original
appropriations which proved to be insufficient
d. Automatic Appropriations – authorizations programmed annually which do not
require periodic action by Congress.
e. Unprogrammed Appropriations – standby appropriations which may be availed only
upon the occurrence of certain instances.
f. Retained Income/Funds – collections which the agencies can use directly in their
operations
g. Revolving Funds – receipts from business-type activities of agencies which are
authorized to be constituted as such. These are self-liquidating and all obligations
and expenditures incurred by virtue of said business-type activity shall be charged
against the fund.
h. Trust Receipts – receipts by a government agency acting as agent.

3. Budget Execution

a. Release Guidelines and BEDs – DBM will issue guidelines in the release and utilization of
funds. Agency’s are required to submit their Budget Execution Documents (BED) as
reporting requirements to the DBM every November 30 before that particular financial year.

Budget Execution Documents:

1. Financial Plan
2. Physical Plan
3. Monthly Disbursement Plan
4. Annual Procurement Plan for common use supplies and equipment

Major recipients of budget:

I. NGAs
II. LGUs
III. GOCCs
 b. Allotment – DBM set limit for allotments issued to an agency on an aggregate preparing
allotment release program which corresponds to the total amount of agency’s specific
budget under the GAA. Allotment is an authorization issued by DBM to government
agencies to incur obligations for a specific amount contain in the appropriations in a form of
budget release document (ARP).

c. Incurrence of Obligations
d. Disbursement Authority – DBM issues disbursement authority. This is the point where the
government agencies obtain access to government funds.

I. Notice of Cash Allocation (NCA) – authority issued by the DBM to central, regional
and provincial offices and operating units to cover their cash requirements. The NCA
specifies the maximum amount of cash that can be withdrawn from a government
servicing bank in a certain period.
II. Notice of Transfer of Allocation – authority issued by an agency’s Central Office to
its regional and operating units to cover the latter’s cash requirements.
III. Non-Cash Availment Authority – authority issued by the DBM to agencies to cover
the liquidation of their actual obligations incurred against available allotments for
availment of proceeds from loans/grants through supplier’s credit/constructive
cash.
IV. Cash Disbursement Ceiling – authority issued by the DBM to agencies with foreign
operations allowing them to use the income collected by their Foreign Service Posts
to cover their operating requirements.

1. Appropriation – authorization by a legislative body to allocate funds for specific

purposes.
2. Allotment – authorization to agencies to incur obligations (i.e. obligational authority)
3. Obligation – amount contracted by an authorized officer for which the government is
held liable
4. Disbursement – actual amount paid out of the budgeted amount

4. Budget Accountability – this phase occurs concurrently with budget execution. Budget is
regularly monitored to determine the conformance of actual results with planned target.

Steps in Budget Accountability:

a. Budget Accountability Reports – government agencies are required to submit the following
accountability reports:
i. Monthly Report of Disbursements
ii. Quarterly Physical Report of Operations
iii. Statement of Appropriation, Allotment, Obligation and Disbursement Balances
iv. Summary of Appropriation, Allotment, Obligations, Disbursements Balances by
Object of Expenditure
 v. List of Allotments and Sub-allotments
vi. Statement of Approved Budget Utilization, Disbursements and Balances
vii. Summary of Approved Budget Utilization, Disbursements and Balances by Object of
Expenditure
viii. Quarterly Reports of Revenue and Other Receipts
ix. Aging of Due and Demandable Obligation

Submission of Reports

i – every month

ii-viii – within 30 days after each quarter

ix – submitted to COA within 30 days after each year

b. Performance Reviews – done by COA and DBM. Performed the periodic reviews in agency’s
performance and budget accountability and report to the President.

c. Audit – COA audits the agency.

GOVERNMENT ACCOUNTING PROCESS

This process is similar to that of a business entity, except that it incorporates budgetary controls, such as
recording in the budget registries and preparing periodic budget accountability reports.

Books of Accounts and Registries

1. Journals

a. General Journal
b. Cash Receipt Journal
c. Cash Disbursements Journal
d. Check Disbursements Journal

2. Ledgers

a. General Ledgers
b. Subsidiary Ledgers

3. Registries (Budget Record. Maintained by Budget Division)

a. Registries of Revenue and Other Receipts (RROR) – used to monitor the revenue and other
receipts estimated or budgeted, collected and remitted/deposited to the National
Government/Bureau of Treasury.
b. Registry of Appropriations and Allotments (RAPAL) – used and monitor when there is
appropriations and allotment movement.
 c. Registries of Allotments, Obligations and Disbursements (RAOD) – shows the allotment received
for the year, obligations incurred, and the actual disbursement.
d. Registries of Budget, Utilization and Disbursements (RBUD) – to record the approved special
budget and the corresponding utilization of disbursement that is charged to Retained Earnings.

Object of Expenditures

1. Personnel Services (PS) – pertain to all types of employee benefits.

2. Maintenance and Other Operating Expenses (MOOE) – pertain to various operating expenses
other than employee benefits and financial expenses.
3. Financial Expenses (FE) – pertain to finance costs.
4. Capital Outlays (CO) – pertain to capitalizable expenditures

Obligation Request Status – another form used by the government in terms of monitoring
disbursements and budget

a. Incurrence of obligations shall be made through the issuance of ORS

b. Prepared by the requesting/originating office
c. Head of the requesting/originating office shall certify as to the necessity and legality of charges
to the budget under his/her supervision, and validity.

BASIC TRANSACTIONS OF THE GOVERNMENT

1. Receipt of Appropriation

Entity A receives its GAA consisting of

the following:

PS 100,000.00

MOOE 60,000.00

FE -

CO 200,000.00
Total Appropriations
for CY 2020 360,000.00

Registries and Other Journal

Records Entry
RAPAL None
2. Allotment

Entity A receives its allotment from

DBM consisting of the following:

PS 90,000.00

MOOE 40,000.00

FE -

CO 170,000.00
Total Allotments
for CY 2020 300,000.00

Registries and
Other Records Journal Entry
RAPAL None
RAOD - PS  
RAOD - MOOE  
RAOD - CO  

3. Incurrence of Obligation

Entity A enters into the following contracts:

a. PS - Employment Contracts (Job Order) amounting to P70,000
b. MOOE - Purchase contract for office supplies worth P25,000
c. CO - Purchase contract for office equipment worth P160,000

Registries and
Other Records Journal Entry
RAOD - PS None
RAOD - MOOE  
RAOD - CO  
3 ORS  

Note: In government entity, obligation means an act of a duly authorized official which binds the
government to the immediate or eventual payment of a sum of money. In business entity,
another term for liability.
 Notice of Obligation Request and Status Adjustment (NORSA)

- Use in adjusting obligations recorded in RAOD and ORS.

- The adjustment shall be affected through a positive entry (addition) or a negative entry
(reduction).

4. Notice of Cash Allocation (NCA) – specifies the maximum amount of withdrawal that an entity can
make from a government bank for the period indicated. Collecting officers shall not issue an
Official Receipt (OR) for the receipt of NCA.

Entity A receives NCA from the DBM amounting to P200,000, net of tax

Registries and
Other Records Journal Entry
RANCA Cash - MDS Regular 200,000
  Subsidy from National Government 200,000
   

Registry of Allotments and Notice of Cash Allocation (RANCA) – used to determine the amount of
allotment not covered by NCA and to monitor the available balance of NCA.

Registry of Allotment and Notice of Transfer of Allocation (RANTA) – used to determine the
amount of allotments not covered by NTA and to monitor the available balance of NTA

5. Disbursement

Employees have rendered services and are now entitled to compensation

Set up of payable to officers and employees upon arrival of payroll
   
Salaries and Wages 35,000
Personal Economic Relief Allowance 5,000
Gross Compensation 40,000
Withholding Tax -10,000
GSIS -2,000
Pag-ibig -2,000
Philhealth -1,000
Total Deductions -15,000
 Net 25,000

Registries and Other

Records Journal Entry

ORS Salaries and Wages, Regular 35,000.00  

RAOD - PS PERA 5,000.00  

  Due to BIR 10,000.00
  Due to GSIS 2,000.00
  Due to Pag-ibig 2,000.00
  Due to Philhealth 1,000.00
  Due to Officers and Employees   25,000.00

Registries and
Grant of cash Other Records Journal Entry advance for
payroll ORS Advances for Payroll 25,000
  CASH - MDS, Regular 25,000
   

Registries and
Other Records Journal Entry
Liquidation of   Due to Officers/Employees 25,000 Payroll Fund
  Advances for Payroll 25,000
   

Entity A remits the P15,000 withheld to the other government agencies

Registries and Other

Records Journal Entry

ORS Due to GSIS 2,000.00  

RAOD - PS Due to Pag-ibig 2,000.00  
  Due to Philhealth 1,000.00  
   Cash - MDS, Regular 5,000.00
       

TAX REMITTANCE ADVICE (TRA)

- Agencies, constructive remittance of taxes withheld to the BIR or customs duties

withheld to BOC, and the constructive receipt of NCA for those taxes and customs duties
- BIR/BOC, Constructive receipt of taxes revenue or custom duties
- BTr, Constructive receipt of the taxes and customs duties remitted.

Remittance of the Withholding Taxes

Registries and
Other Records Journal Entry
  Cash - TRA 10,000.00  
  Subsidy from the National Government 10,000.00
  To recognize the constructive receipt of NCA for TRA
  Due to BIR 10,000.00  
  Cash - TRA 10,000.00
To recognize the constructive remittance of taxes withheld
  to the BIR through TRA

Books of BIR Books of BTR

           

Cash - TRA 10,000.00   Subsidy to NGAs 10,000.00  

Income Tax 10,000.00 Cash - TRA 10,000.00

To recognize constructive receipt of taxes To recognize constructive receipt of
remitted by NGAs through TRA   remittance of taxes by NGAs through TRA

6. Collection
- PD 1445 requires all collections must be remitted to the National Treasury
- Collection and Remittance are recorded in the Cash Receipts Journal

Entity A bills revenue of P100,000 for rent income

 Registries and
Other Records Journal Entry
Entity  None Accounts Receivable 100,000.00   A
collects   Rent/Lease Income 100,000.00
       

P100,000 from the billed revenue and remits the collection to the BTr

Registries and Other

Records Journal Entry

 None Cash - Collecting Officers 100,000.00  

  Accounts Receivable 100,000.00

  To recognize collection of billed income  
Cash - Treasury/Agent Deposit,
  Regular 100,000.00  

  Cash – CO 100,000.00
  To recognize remittance of income to BTr  
     
       

Government entities are required to revert any unused NCA at the end of the accounting period.

Cash - MDS, Regular

Receipt
NCA 200,000.00    

  25,000.00 Advance for payroll

Remittance to GSIS,
Pag-ibig and
  5,000.00 Philhealth

    170,000.00 end

Registries and
Other
Records Journal Entry
Subsidy from
RANCA National Government 170,000.00  

  Cash - MDS, Regular 170,000.00

  To recognize reversion of unused NCA
Basic Recordings/Summary

Transaction Recording in:  

  Registries & Other Records Journal & Ledger
a. Appropriation RAPAL None
RAPAL and appropriate
b. Allotment RAOD None
c. Incureence of Obligations ORS and apprpriate RAOD None
d. NCA RANCA Cash - MDS, Regular xx
    Subsidy from NG xx
updating of ORS and
e. Disbursements appropriate RAOD Expense/Asset xx
    Payable xx
     
    Payable xx
    Cash-MDS, Regular xx
updating of ORS and
f. Tax Remittance Advice appropriate RAOD Cash - TRA xx
(TRA is used for remittance of Subsidy from NG xx
taxes withheld  
    Due to BIR xx
    Cash - TRA xx
g. Billings, Collections and RROR, RCD/CRReg (not
Remittances illustrated) Accounts Receivable xx
    Income xx
     
    Cash - CO xx
    Accounts Receivable xx
     
    Cash-Treasury/Agency
    Deposit, Regular xx
    Cash - CO xx
h. Reversion of Unused NCA RANCA Subsidy from NG xx
    Cash-MDS, Regular xx
Account Code in the RCA

Government Accounting Cycle

1. Appropriation
2. Allotment
3. Incurrence of Obligation
4. Disbursement Authority - NCA
5. Disbursements
6. Billings, Collections and Remittances
7. Unadjusted Trial Balance
8. Adjusting Entries
9. Pre-closing Trial Balance
10. Closing Entries
11. Post-Closing Trial Balance
12. Preparation of Financial Statements

Section 50 – Adjusting Journal Entries

 1. Accrued Items
2. Deferred Items
3. Unused NCA
4. Petty Cash Fund
5. Unreleased Commercial Checks
6. Allowance for/Accumulated Impairment Losses of asset accounts
7. Write-down of inventories
8. Correction/Reclassification of Entries
9. Adjustment for Reversal of Impairment Losses
10. Depreciation Expense
11. Exchange Differences on Foreign Currency
12. Other Adjustments

REVENUE AND OTHER RECEIPTS

Revenue – gross inflow of economic benefits or service potential during the reporting period
when those inflows result in and increase in equity, other than increases relating to
contribution from owners. Received or receivable.
Receipts – is the actual cash collections from all sources during a period.

Fundamental Principles for Revenue

All revenues accruing to an entity by virtue of the provisions of existing law orders and
regulations shall be deposited/remitted in the National Treasury (NT) or in any duly authorized
government depository and shall accrue to the General Fund (GF) of the NG.
Except as may otherwise be specifically provided by law or competent authority, all moneys
and property officially received by a public officer in any capacity or upon any occasion must be
accounted for as government funds and government property.

Amounts received in trust and from business-type activities of government may be separately
recorded and disbursed in accordance with such rules and regulations.
Receipts shall be recorded as revenue of special, fiduciary or trust funds or funds other than the
GF, only when authorized by law as implemented by rules and regulations issued by the
Permanent Committee.

No payment of any nature shall be received by a collecting officer without immediately issuing
an official receipt in acknowledgment thereof.
Where mechanical devices (e.g. electronic official receipt) are used to acknowledge cash
receipts, the COA may approve, upon request, exemption from the use of accountable forms.

At no instance shall temporary receipts be issued to acknowledge the receipt of public funds.
Pre-numbered ORs shall be issued in strict numerical sequence. All copies of each receipt shall
be exact copies or carbon reproduction in all respects of the original.

An officer charged with the collection of revenue or the receiving of moneys payable to the
government in the form of checks issued in payment of government obligations, upon proper
endorsement and identification of the payee or endorsee.
At no instance should money in the hands of the CO be utilized for the purpose of cashing
private checks.
Under such rules and regulations as the COA and the Department of Finance (DOF) may
prescribe, the Treasurer of the Philippines and all AGDB shall acknowledge receipt of all funds
received by them, the acknowledgment bearing the date of actual remittance or deposit and
indicating from whom and on what account it was received.

Sources of Revenue of the Government

Revenue may arise from exchange and non-exchange transactions:
a. Exchange transaction – transactions in which one entity receives assets or
services or has liabilities extinguished and directly gives approximately equal
value to another entity in exchange. Examples: sale of goods and rendering of
services
b. Non-exchange transactions – these are transactions in which an entity either
receives value from another entity without direct giving approximately equal
value in exchange. Examples: tax revenue, fines and penalties, and donations.
Sale of Goods
Revenue from sale of goods shall be recognized when all of the following conditions are
satisfied:
a. Significant risks and rewards of ownership of goods are transferred to the
buyer.
b. The entity does not retain continuing managerial involvement or effective
control over the goods sold
c. It is probable that economic benefits will flow to the entity
d. Revenue can be measured reliably; and
e. Costs relating to the transaction can be measured reliably.
Rendering of Services
Revenue from rendering of services is recognized on a straight line basis over the
contract term.
However, revenue is recognized by reference to the stage of completion if the outcome
of the transaction can be estimated reliably, such as when all of the following conditions
are satisfied.
a. The stage of completion can be measured reliably
b. It is probable that economic benefits will flow to the entity
c. Revenue can be measured reliably
d. Costs relating to the transaction can be measured reliably
When the outcome cannot be estimated reliably, revenue is recognized only to the
extent of recoverable cost.

Interest, Royalties and Dividends

a. Interest is recognized on a time proportion basis that takes into account the
effective yield of asset
b. Royalties is recognized as they are earned in accordance with the substance of the
relevant agreement
c. Dividends are recognized when the entity’s right to receive payment is established.

Measurement of Revenue from Exchange Transactions

a. Revenue from exchange transactions are measured at fair value of the consideration
received or receivable.
b. Any trade discounts and volume rebates shall be taken into account.
c. When cash flows are deferred, the fair value of the consideration is the present
value of the consideration receivable.
Example: Entity A is authorized to print accounting manuals for sale to other NGAs.
Assume that on July 6, 2020, Entity A sold accounting manuals on account with a list
price of P100,000 less trade discounts of 10%, 10% and 5%. The invoice price of the
merchandise is computed as follows

List Price 100,000.00

Less: 10% x 100,000 10,000.00
90,000.00
Less:10% x 90,000 9,000.00
81,000.00
Less: 5% x 81,000 4,050.00
Total 76,950.00

The journal entry shall be as follows:

Account Title Account Code

Accounts Receivable 10301010 76,950.00
Sales Revenue 40202160 76,950.00

Example: Assume that on August 5, 2020 , Entity A received a 60-day, 9%, P12,000
promissory note from X entity for accounting manuals sold. On October 4, 2020,
Entity X paid cash in settlement of its note.

The accounting entries should be as follows

Account Title Account Code Debit Credit

Aug-05
Notes Receivable 10301020 12,000.00
Sales Revenue 40202160 12,000.00
To recognize the sale

Oct-04
Cash - Collecting Officers 10101010 12,180.00
Notes Receivable 10301020 12,000.00
Interest Income 40202210 180.00
To recognize the collection of notes receivable

Interest = P12,000 x 9% x 60/360 = P180

Exchanges of Goods and Services

Similar – no revenue is recognized

Dissimilar – revenue is recognized, measured using the following order of priority:
 Fair value of the goods or services received, adjusted by the amount of any
cash transferred.
 Fair value of the goods or services given up, adjusted by the amount of any
cash transferred.
Non-exchange Transactions

Revenue from non-exchange transactions are derived mostly from taxes, fines and
penalties, gifts, donations and goods in kind.

Tax Revenue

Type of Tax Taxable Event

Income Tax Earning of Taxable Income
Value Added Tax Undertaking of a taxable activity
Goods and Service Tax Purchase or sale of taxable goods or
services
Customs Duty Movement of dutiable goods or services
across the customs boundary
Death duty Death of the owner of the taxable
property
Property Tax Passage of the time period for which
the tax is levied

Gifts, Donations and Goods in-Kind

 Recognized as revenue measured at fair value when it is probable that future

economic benefits will flow to the entity.
 If without condition, recognized immediately as revenue.
 If with condition, initially recognized as liability and recognized as revenue
only when the condition is satisfied.

Others

 Services in Kind – not recognized as revenue

 Debt Forgiveness – carrying amount of debt forgiven is recognized as
revenue
 Bequests – (transfers made according to the provision of a deceased
person’s will) recognized as revenue measured at fair value, if asset
recognition criteria are met.
  Grant with Condition – initially recognized as liability until condition is
satisfied
 Pledges – (unenforceable promises to give) not recognized as revenue
 Concessionary Loans – (loans w/ below market rate) difference between
fair value and transaction price is recognized as revenue, if non-exchange
transaction.

Impairment Losses and Allowance for Impairment Losses

When an amount already recognized as revenue becomes uncollectible, it is recognized

as expense (i.e. impairment loss) rather than as an adjustment to the revenue originally
recognized.

Other Receipts

Subsidy from NG and other NGAs Recognized as revenue from assistance

and subsidy
Receipts from: Not recognized as revenue

a. excess cash advance

b. overpayment of expenses
c. performance bonds and security
deposits
d. collections on behalf of other
entities; and
e. inter or intra-agency fund transfers
Receipt of NCA
Account Title Account Code Debit Credit

Regular
Cash - Modified Disbursement
System (MDS) - Regular 10104040 100,000.00
Subsidy from Nat'l Government 40301010 100,000.00
To recognize receipt of NCA for Regular Agency Fund

Special Account
Cash - Modified Disbursement
System (MDS) - Special Account 10104050 100,000.00
Cash-Treasury Agency Deposit,
Special Account 10104020 100,000.00
To recognize receipt of NCA for Special Account in the General Fund

Cash - Modified Disbursement

System (MDS) - Trust 10104060 100,000.00
Cash-Treasury Agency Deposit,
Trust 10104030 100,000.00
To recognize the receipt of NCA for Trust Receipt Fund

Receipt of NCAA

Account Title Account Code Debit Credit

Accounts Payable 20101010 950,000.00

Subsidy from Nat'l Government 40301010 950,000.00
To recognize the receipt of NCAA
Receipt of CDC

Account Title Account Code Debit Credit

Cash - Collecting Officers 10101010 100,000.00
Passport and Visa Fees 40201120 100,000.00
To recognize collection of revenue of FSPs

Cash in Bank-Foreign Currency,

Current Account 10103020 100,000.00
Cash - Collecting Officers 10101010 100,000.00
To recognize deposit of collections to authorized servicing bank of FSPs

Cash-Constructive Income
Remittance 10104080 80,000.00
Subsidy from Nat'l Government 40301010 80,000.00
To recognize receipt of CDC from DBM

Quarters Allowance - Civilian 50102070 50,000.00

Rents - Buildings and Structures 50299050 30,000.00
Cash in Bank- Foreign Currency
Current Account 10103020 80,000.00
To record payment of expenses charged to CDC

2. BTr Books

Account Title Account Code Debit Credit

Subsidy to NGAs 50214010 80,000.00
Cash- Constructive Income
Remittance 10104080 80,000.00
To recognize constructive receipt of remitted collections by FSPs and disbursements
charged to the issued CDCs to FSPs

Receipt of Subsidy/Assistance from other NGAs, LGUs, GOCCs and Other Funds

The collecting Officer shall issue OR upon receipt of cash subsidy/assistance.

Account Title Account Code Debit Credit
Cash - Collecting Officers 10101010 100,000.00
Subsidy from other NGAs 40301020 50,000.00
 Assistance from LGUs 40301030 25,000.00
Assistance from GOCCs 40301040 25,000.00
To recognize receipt of subsidy/assistance from other government agencies

Cash-Treasury/Agency Deposit,
Trust 10104030 100,000.00
Cash-Collecting Officers 10101010 100,000.00
To recognize remittance of collections to BTR

Dishonored Checks
a. Collections remitted to BTr

Account Title Account Code Debit Credit

1. Cancellation of OR due to Dishonored Checks
Other Receivables 10305990 xxx
Cash-Treasury/Agency Deposit, Regular 10104010 xxxx
To recognize the cancellation of current year's deposited collections due to
dishonored checks

Other Receivables 10305990 xxx

Accumulated Surplus/(Deficit) 30101010 xxx
To recognize the cancellation of prior year's deposited collections due to
dishonored checks

2. Redemption of Dishonored Check

Cash - Collecting Officers 10101010 xxx
Other Receivables 10305990 xxx
To recognize replacement of dishonored check

Cash-Treasury/Agency Deposit, Regular 10104010 xxx

Cash - Collecting Officers 10101010 xxx
To recognize the remittance of the replacement of dishonored check

Cash Overage/Shortage of Collecting Officer

a. Cash Overage
Account Title Account Code Debit Credit
Cash - Collecting Officers 10101010 xxx
Miscellaneous Income 40609990 xxx
To recognize forfeiture of cash overage of the Collecting Officer
Cash-Treasury/Agency Deposit, Regular 10104010 xxx
Cash - Collecting Officers 10101010 xxx
To recognize the remittance of forfeited cash overage to the BTr

a. Cash Shortage
Account Title Account Code Debit Credit
Due from Officers and Employees 10305020 xxx
Cash - Collecting Officers 10101010 xxx
To recognize cash shortage of Collecting Officer

Cash - Collecting Officers 10101010 xxx

Due from Officers and Employees 10305020 xxx
To recognize restitution of cash shortage

Cash-Treasury/Agency Deposit, Regular 10104010 xxx

Cash - Collecting Officers 10101010 xxx
To recognize the remittance of restituted cash shortage to BTr