Annex A

Illustrative Accounting Entries - Typical transactions of Central/Regional Offices and Operating Units (CO/RO/OU) receiving Notice of Cash Allocation direct from DBM. REGULAR AGENCY BOOKS Transactions CO/RO/OU Account Title Account Code 222 401 501 Debit 1,000 350 650 Credit

Beginning Balances

Office Equipment Accounts Payable Government Equity

Receipt of allotment and NCA 1. Receipt of allotment for: Allotment Class CO MOOE PS FE Total 2. Receipt of Notice of Cash Allocation from DBM - P4,500 Payment of Expenses 3. Obligation for PS GAA CA 186

3,340 1,010 550 100 5,000

Posting in allotment column of the Registry of Allotments and ObligationsCapital Outlay, Maintenance and Other Operating Expenses, Personal Services and Financial Expenses

55 55 Cash - National Treasury, MDS Subsidy Income from National Government 102 601 4,500 4,500

P 500

Posting in obligation column of Registry of Allotments and Obligations - Personal Services 440 30 30 500 50 30 5 3 2 10 Salaries and Wages - Regular Pay PERA Additional Compensation Due to Officers and Employees Withholding Tax Payable GSIS Payable PAG-IBIG Payable PHILHEALTH Payable Other Payables 801 804 805 428 410 411 412 413 450 440 30 30 400 50 32 5 3 10

4. Recording of expenses Salaries PERA Additional Compensation Total Less: Salary Deductions. Withholding tax Life & Ret. premiums PAGIBIG premiums PHILHEALTH premiums GSIS-Salary loan Employees' Association Net Amount 5. Grant of Cash Advance for payroll - P400 6. Liquidation of Cash Advance 7. Remittance of Salary Deductions

100 400 Cash - Disbursing Officers Cash - National Treasury, MDS Due to Officers and Employees Cash - Disbursing Officers GSIS Payable PAG-IBIG Payable PHILHEALTH Payable Other Payables Cash - National Treasury, MDS 107 102 428 107 411 412 413 450 102 400 400 400 400 32 5 3 10 50

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Annex A
Illustrative Accounting Entries - Typical transactions of Central/Regional Offices and Operating Units (CO/RO/OU) receiving Notice of Cash Allocation direct from DBM. REGULAR AGENCY BOOKS Transactions CO/RO/OU Account Title Account Code Debit Credit

8. Obligation for government share CA 186 - Life & Ret. Contribution GAA - PAG-IBIG Contribution GAA - PHILHEALTH Contribution

30 5 3 38

Posting in obligation column of Registry of Allotments and Obligations - Personal Services

9. Remittance of Govt. Share CA 186 - Life & Ret. Contribution GAA - PAG-IBIG Contribution GAA - PHILHEALTH Contribution

30 5 3 38

Life and Retirement Insurance Contributions PAG-IBIG Contributions PHILHEALTH Contributions Cash - National Treasury, MDS

817 818 819 102

30 5 3 38

Receipt of Bills / Claim 10. Obligation for: Rent ( for 1 year) Office Supplies MERALCO bill PLDT bill Travelling expense of Mr. Alex Cruz TOTAL 11. Payment of one year rent (July 1, 2002 to June 30, 2003) 12. Advance payment to Procurement Service (PS) for office supplies 13. Receipt of office supplies and invoice from Procurement Service. 14. Payment of MERALCO bill

70 150 50 40 110 420

Posting in obligation column of Registry of Allotments and Obligations - Maintenance and Other Operating Expenses

Prepaid Rent Cash - National Treasury, MDS Due from NGAs Cash - National Treasury, MDS Office Supplies Inventory Due from NGAs Electricity Cash - National Treasury, MDS Telephone/Telegraph and Internet Cash - National Treasury, MDS Due from Officers and Employees Cash - National Treasury, MDS Traveling Expense - Local Due from Officers and Employees Cash - Collecting Officers Due from Officers and Employees

161 102 130 102 149 130 835 102 837 102 128 102 831 128 106 128

70 70 150 150 150 150 50 50 40 40 110 110 98 98 12 12

150

15. Payment of PLDT bill

16. Granting of cash advance for travel of Mr. Alex Cruz 17. Liquidation of cash advance for travel of Mr. Alex Cruz 18. Refund of excess cash advance for travelling expense of Mr. Alex Cruz

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Annex A
Illustrative Accounting Entries - Typical transactions of Central/Regional Offices and Operating Units (CO/RO/OU) receiving Notice of Cash Allocation direct from DBM. REGULAR AGENCY BOOKS Transactions CO/RO/OU Account Title Account Code Debit Credit

19. Adjustment of obligation by P12 for refund of excess advance for traveling expense

Negative posting in obligation column of Registry of Allotments and Obligations Maintenance and Other Operating Expenses Subsidy Income from National Government Cash - Collecting Officers 601 106 12 12

20. Deposit of collection from excess advance to BTr Petty Cash Fund 21. Obligation for Petty Cash Fund (PCF) for - P35

Posting in obligation column of Registry of Allotments and Obligations Maintenance and Other Operating Expenses Petty Cash Fund Cash - National Treasury, MDS Posting in obligation column of Registry of Allotments and Obligations Maintenance and Other Operating Expenses Office Supplies Expenses Postage and Deliveries Cash - National Treasury, MDS 849 838 102 20 10 30 105 102 35 35

22. Establishment of Petty Cash Fund (PCF)

23. Obligation of P30 for replenishment of Petty Cash Fund

24. Replenishment of Petty Cash Fund Bond paper Postage stamps

20 10 30

25. Closing of the Petty Cash Fund within the year due to retirement of the PCF Custodian 26. Adjustment of obligation for refunded PCF per ALOBS supported by Official Receipt

Cash - Collecting Officers Petty Cash Fund Negative posting in obligation Registry of Allotments and Obligations Maintenance and Other Operating Expenses Subsidy Income from NG Cash - Collecting Officers Posting in obligation column of Registry of Allotments and Obligations Maintenance and Other Operating Expenses Petty Cash Fund Cash - National Treasury, MDS

106 105

5 5

27. Deposit of collection from refund of Petty Cash Fund 28. Obligation for Petty Cash Fund for - P35 for the newly designated PCF Custodian

601 106

5 5

29. Establishment of Petty Cash Fund for the newly designated PCF Custodian Purchase of Equipment 30. Obligation for office equipment per Purchase Order - P100

105 102

35 35

Posting in obligation column of Registry of Allotments and Obligations Capital Outlay

123

Annex A
Illustrative Accounting Entries - Typical transactions of Central/Regional Offices and Operating Units (CO/RO/OU) receiving Notice of Cash Allocation direct from DBM. REGULAR AGENCY BOOKS Transactions CO/RO/OU Account Title Account Code 130 102 222 130 Debit 100 100 100 100 Credit

31. Payment to Procurement Service for office equipment

Due from NGAs Cash - National Treasury, MDS Office Equipment Due from NGAs Posting in obligation column of Registry of Allotments and Obligations Capital Outlay IT Equipment and Software Accounts Payable Accounts Payable Cash - National Treasury, MDS Withholding Taxes Payable

32. Receipt of office equipment based on Invoice/ delivery receipt 33. Obligation prior to approval of purchase order for IT Software - P400

34. Receipt of IT Software based on invoice/delivery receipt from Computer Technologies (corporation) 35. Payment of IT Software to Computer Technologies Gross 400 Less: Withholding Tax (VAT) 36 364 Construction of Building 36. Obligation for building prior to the signing of the contract - P700

215 421 421 102 410

400 400 400 364 36

Posting in obligation column of Registry of Allotments and Obligations Capital Outlay Cash - Collecting Officers Performance/Bidders/Bail Bonds Payable Due from National Treasury Cash - Collecting Officers Advances to Contractors Cash - National Treasury, MDS Construction in Progress - Agency Assets Accounts Payable Advances to Contractors 106 414 134 106 168 102 230 401 168 50 50 50 50 105 105 350 300 50

37. Receipt of cash from the contractor paid as performance bond 38. Deposit of ( cash) performance bond to BTr thru AGDB 39. Payment of 15% of contract amount as advances to contractor - P700 x 15% 40. Receipt of 1st progress billing for building 50% of P700 Less: Recoupment Net Amount 41. Payment of 1st progress billing for building Accounts Payable Less: 10% Retention 35 Withholding Tax 27 Net Amount

P350 50 P300

300 62 238

Accounts Payable Cash - National Treasury, MDS Guaranty Deposits Payable Withholding Taxes Payable

421 102 408 410

300 238 35 27

124

Annex A
Illustrative Accounting Entries - Typical transactions of Central/Regional Offices and Operating Units (CO/RO/OU) receiving Notice of Cash Allocation direct from DBM. REGULAR AGENCY BOOKS Transactions CO/RO/OU Account Title Account Code 230 401 168 Debit 340 285 55 Credit

42. Receipt of final billing for building 50% of P700 (delayed completion) Less: Liquidated Damages Net Amount Less: Recoupment Amount Due 43. Adjustment of RAOCO by P10 to reduce original amount of obligation due to liquidated damages

P350 10 P340 55 P285

Construction in Progress - Agency Assets Accounts Payable Advances to Contractors

Posting in obligation column of Registry of Allotments and Obligations Capital Outlay Accounts Payable Cash - National Treasury, MDS Withholding Taxes Payable 401 102 410 285 253 32

44. Final payment for building Accounts Payable Less: 10% Withholding Tax (VAT) Net Amount 45. Turn-over & acceptance of building Contract Amount Less: Liquidated Damages Net Cost Transfer of Funds to Implementing Agency 46. Obligation prior to approval of transfer of cash to another agency for construction of building-P250

285 32 253

700 10 690

Buildings Construction in Progress - Agency Assets

204 230

690 690

Posting in obligation column of Registry of Allotments and Obligations Capital Outlay Due from NGAs Cash - National Treasury, MDS Buildings Due from NGAs 130 102 204 130 250 250 250 250

47. Issuance of check to implementing agency (IA)

48. Receipt of liquidation reports/turn-over of building by IA - P250 Fund Assistance to NGOs/POs 49. Approval of fund assistance to NGOs/POs - P150 for livelihood project

Posting in obligation column of Registry of Allotments and Obligations Maintenance and Other Operating Expenses Due from NGOs/POs Cash - National Treasury, MDS 133 102 150 150

50. Issuance of check to NGOs/POs

51. Receipt of liquidation reports from NGOs / POs Travelling Expense-Local Training and seminar expenses Office supplies expense Total

50 30 20 100

Travelling Expense-Local Training and Seminar Expenses Office Supplies Expense Due from NGOs/POs

831 833 849 133

50 30 20 100

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Annex A
Illustrative Accounting Entries - Typical transactions of Central/Regional Offices and Operating Units (CO/RO/OU) receiving Notice of Cash Allocation direct from DBM. REGULAR AGENCY BOOKS Transactions CO/RO/OU Account Title Account Code Debit Credit

Grants and Donations 52. Obligation of amount for tuition fees of employees (under scholarship grants) - P70

Posting in obligation column of Registry of Allotments and Obligations Maintenance and Other Operating Expenses Grants and Donations Accounts Payable Accounts Payable Cash - National Treasury, MDS Posting in obligation column of Registry of Allotments and Obligations Maintenance and Other Operating Expenses Grants and Donations Cash - National Treasury, MDS Cash - National Treasury, MDS Subsidy Income from National Government Accounts Payable Cash - National Treasury, MDS 889 102 102 601 401 102 50 50 350 350 200 200 889 401 401 102 70 70 70 70

53. Recording of the bill from educational institution for tuition fees of scholars 54. Payment of tuition fees of scholars

55. Obligation of stipend/book allowances of scholars - P 50

56. Payment of stipend/book allowance to scholars Payment thru ADA 57. Receipt of NCA for PY accounts payable - P350

58. Payment of PY accounts payable - P200

Public Infrastructures 59. Receipt of cash from contractor paid as performance bond for the construction of roads 60. Deposit of cash (performance bond) to BTr thru AGDB

Cash - Collecting Officers Performance/Bidders/Bail Bonds Payable Due from National Treasury Cash - Collecting Officers Posting in obligation column of Registry of Allotments and Obligations Capital Outlay Advances to Contractors Cash - National Treasury, MDS

106 414 134 106

150 150 150 150

61. Obligation for construction of roads prior to signing of contract - P2,000

62. Payment of 15% of contract amount for the advances to the contractor for the construction of roads P2,000 x 15% 63. Receipt of progress billing for construction of roads 50% of P2,000 1000 Less: Recoupment 150 Net Amount 850

168 102

300 300

Construction in Progress - Roads, Highways and Bridges Accounts Payable Advances to Contractors

232 401 168

1,000 850 150

126

Annex A
Illustrative Accounting Entries - Typical transactions of Central/Regional Offices and Operating Units (CO/RO/OU) receiving Notice of Cash Allocation direct from DBM. REGULAR AGENCY BOOKS Transactions CO/RO/OU Account Title Account Code 401 102 410 408 Debit 850 660 90 100 Credit

64. Payment of bill for the construction of roads Accounts Payable (1,000 -150) Less: Withholding Tax 90 10% Retention 100 Net Amount 65. Presentation of final billing for roads 50% of P2,000 Less: Liquidated Damages Net Cost Less: Recoupment Amount Due

850 190 660

Accounts Payable Cash - National Treasury, MDS Withholding Taxes Payable Guaranty Deposits Payable

1,000 50 950 150 800

Construction in Progress - Roads, Highways and Bridges Accounts Payable Advances to Contractors

232 401 168

950 800 150

66. Adjustment of RAOCO by P50 to reduce original amount of obligation

Negative posting in obligation column of Registry of Allotments and Obligations Capital Outlay Accounts Payable Cash - National Treasury, MDS Withholding Taxes Payable Guaranty Deposits Payable 401 102 410 408 800 619 86 95

67. Payment of final bill for the construction of roads Accounts Payable Less: Withholding Tax 86 10% Retention 95 Net Amount 68. Turn-over and acceptance of roads Contract amount Less: Liquidated Damages Net Cost Remittance of Withholding Taxes Thru TRA 69. Remittance of Withholding Tax thru TRA Salaries IT Software (Corporation) Building (Corporation) Roads (Corporation) Total

800 181 619

2,000 50 1,950

Public Infrastructures Construction in Progress - Roads, Highways and Bridges

243 232

1,950 1,950

50 36 59 176 321

Withholding Taxes Payable Subsidy Income from National Government

410 601

321 321

Release of Performance Bond 70. Receipt of NCA for deposited performance bonds received Cash-National Treasury, MDS from contractors for the construction of the following: Due from National Treasury Building Roads Total 71. Refund of performance bonds to contractors . 50 150 200 Performance/Bidders/Bail Bonds Payable Cash-National Treasury, MDS

102 134

200 200

414 102

200 200

Refund of Retention Fees 72. Refund of retention fees to contractors .

Guaranty Deposits Payable

408

406

127

Annex A
Illustrative Accounting Entries - Typical transactions of Central/Regional Offices and Operating Units (CO/RO/OU) receiving Notice of Cash Allocation direct from DBM. REGULAR AGENCY BOOKS Transactions CO/RO/OU Account Title Account Code 102 Debit Credit 406

Cash-National Treasury, MDS Building Roads Total P35 371 406

Issuance of Supplies and Materials 73. Receipt of the Report of Supplies and Materials Issued Office Supplies Expenses from the Property/Supply Unit Office Supplies Inventory office supplies - P140 Adjusting Entries 74. Recording of depreciation for the following: Cost Buildings 690 IT Equipment 400 Office Equipment 100 Total 1,190 75. Rent expense for the year

849 149

140 140

Depn. 35 40 10 85

Depreciation - Buildings Depreciation - IT Equipment Depreciation - Office Equipment Acc. Depn. - Buildings Acc. Depn. - IT Equipment Acc. Depn. - Office Equipment Rent Expense Prepaid Rent

904 915 922 304 315 322 841 161

35 40 10 35 40 10 35 35

128

Annex A
Illustrative Accounting Entries - Typical transactions of Central/Regional Offices and Operating Units (CO/RO/OU) receiving Notice of Cash Allocation direct from DBM. REGULAR AGENCY BOOKS Transactions CO/RO/OU Account Title Account Code Debit Credit

CLOSING ENTRIES 1. Unused NCA Subsidy Income from National Government Cash-National Treasury, MDS Subsidy Income from National Government Income and Expense Summary 601 102 601 533 187 187 2,667 2,667

2. Subsidy Income from the National Government and Income

3. Expenses

Income and Expense Summary Salaries and Wages-Regular Payroll PERA Additional Compensation Life and Ret. Insurance Contribution PAG-IBIG Contribution PHILHEALTH Contribution Traveling Expense, Local Training and Seminar Fees Electricity Telephone/Telegraph and Internet Postage and Deliveries Rent Expenses Office Supplies Expenses Grants and Donations Depreciation - Buildings Depreciation - IT Equipment Depreciation - Office Equipment Income and Expense Summary Retained Operating Surplus Retained Operating Surplus Government Equity Government Equity Public Infrastructures

535 801 804 805 817 818 819 831 833 835 837 838 841 849 890 904 915 922 532 534 534 501 501 243

1,131 440 30 30 30 5 3 148 30 50 40 10 70 40 120 35 40 10 1,536 1,536 1,536 1,536 1,950 1,950

4. Income and Expense Summary

5. Retained Operating Surplus

6. Transfer of Public Infrastructures account to the Registry of Public Infrastructures

129