Annex B

Illustrative Accounting Entries - Typical transactions of Central/Regional Offices and Operating Units (CO/RO/OU) receiving Notice of Cash Allocation direct from DBM and ROs/OUs receiving funding checks from CO/RO. CENTRAL OFFICE (CO) Transactions Account Title
Account Code Debit Credit

REGIONAL OFFICE (RO) Account Title

Account Code Debit Credit

OPERATING UNITS Account Title

Account Code Debit

Receipt of Allotment/NCA andTransfer of Subsidy 1. Receipt of allotment for: Allotment Class CO MOOE PS Total 2. Receipt of Notice of Allocation from DBM CO 1,800 260 200 2,260 CO 2,000 RO Posting in allotment column of OU Registry of Allotments and ObligationsCapital Outlay, Maintenance and Other Operating Expenses, Personal Services 150 150 OU Cash - National Treasury, MDS 150 Subsidy Income from National Government Negative posting in allotment column of Registry of Allotments and ObligationsCapital Outlay 102 601 2,000 2,000 Posting in allotment column of Registry of Allotments and ObligationsMaintenance and Other Operating Expenses, Personal Services Posting in allotment column of Registry of Allotments and ObligationsMaintenance and Other Operating Expenses, Personal Services

250 250 RO 250

Cash - National Treasury, MDS Subsidy Income from National Government Posting in allotment column of Registry of Allotments and ObligationsCapital Outlay

102 601

250 250

Cash - National Treasury, MDS Subsidy Income from National Government

102 601

150

3. Release of sub-allotment to Regional Offices Allotment Class MOOE CO Total 4. Release of Letter Advice of Allotment to OU Allotment Class MOOE CO Total 5. Transfer of subsidy to Regional Office thru funding check or fund transfer 6. Transfer of subsidy to Operating Unit thru funding check or fund transfer Payment of Expenses 7. Obligation for Personal Services

RO 160 1,500 1,660

OU 50 700 750 Subsidy to Regional Offices/Staff Bureaus Cash - National Treasury, MDS 1,400 538 102 1,400 1,400

Negative posting in allotment column of Registry of Allotments and ObligationsCapital Outlay, Maintenance and Other Operating Expenses

Posting in allotment column of Registry of Allotments and ObligationsCapital Outlay, Maintenance and Other Operating Expenses

Cash in Bank-Local Currency, Curr. Acct. Subsidy from Central Office

110 602

1,400 1,400

Subsidy to Operating Units Cash in Bank-Local Currency, Curr. Acct. 600

539 110

600 600

Cash in Bank-Local Currency, Curr. Acct. Subsidy from Regional Office/Staff Bureau

110 603

600

CO 140

RO 250

OU Posting in obligation column of 130 Registry of Allotments and ObligationsPersonal Services

Posting in obligation column of Registry of Allotments and ObligationsPersonal Services

Posting in obligation column of Registry of Allotments and ObligationsPersonal Services

130

Annex B
Illustrative Accounting Entries - Typical transactions of Central/Regional Offices and Operating Units (CO/RO/OU) receiving Notice of Cash Allocation direct from DBM and ROs/OUs receiving funding checks from CO/RO. CENTRAL OFFICE (CO) Transactions 8. Recording of expenses for salaries and wages CO 125 10 5 140 14 6 2 1 23 117 CO 117 RO 226 16 8 250 25 12 4 2 43 207 RO 207 Salaries and Wages-Regular Pay OU PERA 118 Additional Compensation 8 Withholding Taxes Payable 4 GSIS Payable 130 PAGIBIG Payable PHILHEALTH Payable 13 Due from Officers and Employees 5 2 1 21 109 OU Cash-Disbursing Officers 109 Cash - National Treasury, MDS Due from Officers and Employees Cash-Disbursing Officers GSIS Payable PAG-IBIG Payable PHILHEALTH Payable Cash - National Treasury, MDS Withholding Taxes Payable Subsidy Income from National Government 801 804 805 410 411 412 413 128 125 10 5 14 6 2 1 117 Salaries and Wages-Regular Pay PERA Additional Compensation Withholding Taxes Payable GSIS Payable PAGIBIG Payable PHILHEALTH Payable Due from Officers and Employees 801 804 805 410 411 412 413 128 226 16 8 25 12 4 2 207 Salaries and Wages-Regular Pay PERA Additional Compensation Withholding Taxes Payable GSIS Payable PAGIBIG Payable PHILHEALTH Payable Due from Officers and Employees 801 804 805 410 411 412 413 128 118 8 4 Account Title
Account Code Debit Credit

REGIONAL OFFICE (RO) Account Title

Account Code Debit Credit

OPERATING UNITS Account Title

Account Code Debit

Salaries & Wages - Regular Pay PERA Additional Compensation Total Less: Withholding Tax GSIS Life & Ret. Premiums PAGIBIG Premiums PHILHEALTH Premiums Net 9. Granting of Cash Advance

107 102 128 107 411 412 413 102 410 601

117 117 117 117 6 2 1

Cash-Disbursing Officers Cash - National Treasury, MDS Due from Officers and Employees Cash-Disbursing Officers

107 102 128 107 411 412 413 102 410 601

207 207 207 207 12 4 2

Cash-Disbursing Officer Cash - National Treasury, MDS Due from Officers and Employees Cash-Disbursing Officer

107 102 128 107 411 412 413 102 410 601

109

10. Liquidation of Cash Advance Remittance of Salary Deductions 11. Remittance of Salary Deductions

109

GSIS Payable PAG-IBIG Payable PHILHEALTH Payable 9 Cash - National Treasury, MDS Withholding Taxes Payable Subsidy Income from National Government

GSIS Payable PAG-IBIG Payable PHILHEALTH Payable 18 Cash - National Treasury, MDS Withholding Taxes Payable Subsidy Income from National Government

5 2 1

12. Issuance of TRA for Withholding taxes

14 14

25 25

13

Receipt of Bills/Claims 13. Receipt of bills from Meralco and PLDT 13.1 Obligation

posting in obligation column of Registry of Allotments and ObligationsMaintenance and Other Operating Exp.

posting in obligation column of Registry of Allotments and ObligationsMaintenance and Other Operating Exp.

posting in obligation column of Registry of Allotments and ObligationsMaintenance and Other Operating Exp.

13.2 Recording of payables based on bills received CO 30 10 40 RO 40 15 55 OU Electricity 8 Telephone/Telegraph and Internet 5 Accounts Payable 13 Accounts Payable Cash - National Treasury, MDS 835 837 401 30 10 Electricity Telephone/Telegraph and Internet 40 Accounts Payable 835 837 401 40 15 Electricity Telephone/Telegraph and Internet 55 Accounts Payable 835 837 401 8 5

MERALCO PLDT

14. Payment of bills

401 102

40 40

Accounts Payable Cash in Bank-Local Currency, Curr. Acct.

401 110

55 55

Accounts Payable Cash in Bank-Local Currency, Curr. Acct.

401 110

13

15. Grant of Cash Advance for travel 15. 1. Obligation

Posting in obligation column of Registry of Allotments and ObligationsMaintenance and Other Operating Exp.

Posting in obligation column of Registry of Allotments and ObligationsMaintenance and Other Operating Exp.

Posting in obligation column of Registry of Allotments and ObligationsMaintenance and Other Operating Exp.

131

Annex B
Illustrative Accounting Entries - Typical transactions of Central/Regional Offices and Operating Units (CO/RO/OU) receiving Notice of Cash Allocation direct from DBM and ROs/OUs receiving funding checks from CO/RO. CENTRAL OFFICE (CO) Transactions 15.2. Grant of Cash Advance CO 8 16. Liquidation of Cash Advance for travel 17. Collections 17.1. Receipt of collection Overpayment of salaries Refund of Cash Advance-travel CO 5 RO 10 RO 8 Account Title OU Due from Officers and Employees 12 Cash - National Treasury, MDS OU Travelling Expense - Local 7 Due from Officers and Employees
Account Code Debit Credit

REGIONAL OFFICE (RO) Account Title Due from Officers and Employees Cash in Bank-Local Currency, Curr. Acct. Travelling Expense - Local Due from Officers and Employees
Account Code Debit Credit

OPERATING UNITS Account Title Due from Officers and Employees Cash in Bank-Local Currency, Curr. Acct. Travelling Expense - Local Due from Officers and Employees
Account Code Debit

128 102 831 128

8 8 5 5

128 110 831 128

10 10 8 8

128 110 831 128

12

CO 5 3 8

RO 3 2 5

OU 2 Cash-Collecting Officers 5 Due from Officers and Employees 7 Salaries and Wages-Regular Pay Negative posting in obligation column of Registry of Allotments and ObligationsMaintenance and Other Operating Expenses and Personal Services Subsidy Income from National Government Cash-Collecting Officers

106 128 801

8 3 5

Cash-Collecting Officers Due from Officers and Employees Salaries and Wages-Regular Pay Negative posting in obligation column of Registry of Allotments and ObligationsMaintenance and Other Operating Expenses and Personal Services

106 128 801

5 2 3

Cash-Collecting Officers Due from Officers and Employees Salaries and Wages-Regular Pay Negative posting in obligation column of Registry of Allotments and ObligationsMaintenance and Other Operating Expenses and Personal Services

106 128 801

17.2. Adjustment of obligation

17.3. Deposit of collection

601 106

Subsidy Income from National Government 8 Cash in Bank-Local Currency, Curr. Acct. Cash-Collecting Officers Posting in allotment column of Registry of Allotments and ObligationsMaintenance and Other Operating Exp.

601 110 106

3 2

Subsidy Income from National Government Cash in Bank-Local Currency, Curr. Acct. 5 Cash-Collecting Officers Posting in allotment column of Registry of Allotments and ObligationsMaintenance and Other Operating Exp.

601 110 106

2 5

18. Payment of one year rental 18.1. Obligation

CO 12

RO 3

OU Posting in allotment column of 2 Registry of Allotments and ObligationsMaintenance and Other Operating Exp. Prepaid Rent Cash - National Treasury, MDS Posting in obligation column of Registry of Allotments and ObligationsMaintenance and Other Operating Exp. 161 102 12 12

18.2. Payment 19. Purchase of Office Supplies 19.1. Earmarking of fund prior to signing of Purchase Order (PO)

Prepaid Rent Cash in Bank-Local Currency, Curr. Acct. Posting in obligation column of Registry of Allotments and ObligationsMaintenance and Other Operating Exp.

161 110

3 3

Prepaid Rent Cash in Bank-Local Currency, Curr. Acct. Posting in obligation column of Registry of Allotments and ObligationsMaintenance and Other Operating Exp.

161 110

19.2. Recording of Payable for Office Supplies received

CO 30

RO 35

OU Office Supplies Inventory 20 Accounts Payable

149 401

30 30

Office Supplies Inventory Accounts Payable

149 401

35 35

Office Supplies Inventory Accounts Payable

149 401

20

20. Purchase of Equipment 20.1. Earmarking of fund for Equipment per PO

Posting in obligation column of Registry of Allotments and ObligationsCapital Outlay No Entry

Posting in obligation column of Registry of Allotments and ObligationsCapital Outlay No Entry 222 401 401 102 401 50 80 72 8 Office Equipment 50 Accounts Payable Accounts Payable Cash in Bank-Local Currency, Curr. Acct. Withholding Taxes Payable 222 401 401 110 410 135 170 154 16

Posting in obligation column of Registry of Allotments and ObligationsCapital Outlay No Entry Office Equipment 135 Accounts Payable Accounts Payable Cash in Bank-Local Currency, Curr. Acct. Withholding Taxes Payable 222 401 401 110 410 120 140

20.2. Serving of PO to dealer 20.3. Receipt of Equipment with Invoice 21. Payment of Payables for supplies and equipment Total Less: Withholding Taxes CO 50 CO 80 8 72 RO 135 RO 170 16 154

OU Office Equipment 120 Accounts Payable OU 140 14 126 Accounts Payable Cash - National Treasury, MDS Withholding Taxes Payable

132

Annex B
Illustrative Accounting Entries - Typical transactions of Central/Regional Offices and Operating Units (CO/RO/OU) receiving Notice of Cash Allocation direct from DBM and ROs/OUs receiving funding checks from CO/RO. CENTRAL OFFICE (CO) Transactions Construction of Building 22. Construction of Building 22.1. Earmaking of funds prior to Signing of contract Account Title
Account Code Debit Credit

REGIONAL OFFICE (RO) Account Title

Account Code Debit Credit

OPERATING UNITS Account Title

Account Code Debit

CO 200

RO 600

OU Posting in obligation column of 500 Registry of Allotments and ObligationsCapital Outlay Advances to Contractors Cash - National Treasury, MDS 168 102 230 401 168 401 102 410 30 30 150 120 30 120 105 15

Posting in obligation column of Registry of Allotments and ObligationsCapital Outlay Advances to Contractors Cash in Bank-Local Currency, Curr. Acct. Construction in Progress-Agency Assets Accounts Payable Advances to Contractors Accounts Payable Cash in Bank-Local Currency, Curr. Acct. Withholding Taxes Payable 168 110 230 401 168 401 110 410 90 90 400 310 90 310 270 40

Posting in obligation column of Registry of Allotments and ObligationsCapital Outlay Advances to Contractors Cash in Bank-Local Currency, Curr. Acct. Construction in Progress-Agency Assets Accounts Payable Advances to Contractors Accounts Payable Cash in Bank-Local Currency, Curr. Acct. Withholding Taxes Payable 168 110 230 401 168 421 102 410 75

22.2. Payment of advances to Contractors

22.3. Receipt of 1st Progress Billing

CO 150

RO 400

OU Construction in Progress-Agency Assets 300 Accounts Payable Advances to Contractors OU Accounts Payable 225 Cash - National Treasury, MDS 30 Withholding Taxes Payable 195 OU Construction in Progress-Agency Assets 200 Accounts Payable OU Accounts Payable 200 Cash - National Treasury, MDS 20 Withholding Taxes Payable 180

300

22.4. Payment of 1st Progress billing Total Less: Withholding Taxes

CO 120 15 105 CO 50 CO 50 5 45

RO 310 40 270 RO 200 RO 200 20 180

225

22.5. Receipt of final billing for the completion of the building 22.6. Payment of final billing Total Less: Withholding Tax Net Amount 22.7. Transfer to account to Building after completion & turn-over 23. Remittance of taxes thru TRA

230 401 401 102 410

50 50 50 45 5

Construction in Progress-Agency Assets Accounts Payable Accounts Payable Cash in Bank-Local Currency, Curr. Acct. Withholding Taxes Payable

230 401 401 110 410

200 200 200 180 20

Construction in Progress-Agency Assets Accounts Payable Accounts Payable Cash in Bank-Local Currency, Curr. Acct. Withholding Taxes Payable

230 401 401 110 410

200

200

CO 200 CO 28 CO 25

RO 600 RO 76 RO 30

OU Buildings 500 Construction in Progress-Agency Assets OU Withholding Taxes Payable 64 Subsidy Income from NG OU Office Supplies Expenses 14 Office Supplies Inventory

204 230 410 601 849 149

200 200 28 28 25 25

Buildings Construction in Progress-Agency Assets Withholding Taxes Payable Subsidy Income from NG Office Supplies Expenses Office Supplies Inventory

204 230 410 601 849 149

600 600 76 76 30 30

Buildings Construction in Progress-Agency Assets Withholding Taxes Payable Subsidy Income from NG Office Supplies Expenses Office Supplies Inventory

204 230 410 601 849 149

500

64

24. Issuance of office supplies per RSMI ADJUSTING ENTRIES 1. Recording of actual rent expense

14

CO 12

RO 3

OU Rent Expenses 2 Prepaid Rent

841 161

12 12

Rent Expenses Prepaid Rent

841 161

3 3

Rent Expenses Prepaid Rent

841 161

2. Depreciation Buildings Office Equipment Total CO 10 5 15 RO 30 12 42 OU 25 Depreciation - Buildings 12 Depreciation - Office Equipment 37 Accum. Depn. - Buildings Accum. Depn. - Office Equipment 904 922 304 322 10 5 Depreciation - Buildings Depreciation - Office Equipment 10 Accum. Depn. - Buildings 5 Accum. Depn. - Office Equipment 904 922 304 322 30 12 Depreciation - Buildings Depreciation - Office Equipment 30 Acc. Depn. - Buildings 12 Acc. Depn. - Office Equipment 904 922 304 322 25 12

133

Annex B
Illustrative Accounting Entries - Typical transactions of Central/Regional Offices and Operating Units (CO/RO/OU) receiving Notice of Cash Allocation direct from DBM and ROs/OUs receiving funding checks from CO/RO. CENTRAL OFFICE (CO) Transactions CLOSING ENTRIES 1. Adjustment of RAO for unobligated allotment CO PS 90 MOOE 30 120 Account Title
Account Code Debit Credit

REGIONAL OFFICE (RO) Account Title

Account Code Debit Credit

OPERATING UNITS Account Title

Account Code Debit

RO 25 17 42

OU Posting in allotment column of 22 Registry of Allotments and Obligations 8 Maintenance and Other Operating Exp. 30

Posting in allotment column of Registry of Allotments and Obligations Maintenance and Other Operating Exp.

Negative posting in allotment column of Registry of Allotments and Obligations Maintenance and Other Operating Exp.

2. Setting up of liability of OU for unrefunded cash equivalent to the unobligated allotment for MOOE 3. Setting up of liability of RO for unrefunded cash equivalent to the unobligated allotment for MOOE 4. Reversion of Unused NCA Due from Regional Offices/Staff Bureaus Subsidy to Regl.Offices/Staff Bureaus Subsidy Income from National Government Cash-National Treasury, MDS Subsidy Income from National Government Income and Expense Summary 136 538 601 102 601 532 17 17 131 131 1,903

Due from Operating Units Subsidy to Operating Units Subsidy from Central Office Due to Central Office Subsidy Income from National Government Cash-National Treasury, MDS

137 539 602 435 601 102 601 602 532 532 801 804 805 831 835 837 841 849 539 904 922 533 502 502 501

8 8 17 17 22 22 326 1,383

Subsidy from Regional Office/Staff Bureau Due to Regional Office/Staff Bureaus

603 446

Subsidy Income from National Government Cash-National Treasury, MDS

601 102 601 603 532 532 801 804 805 831 835 837 841 849 904 922 533 502 502 501

32

5. Subsidy Income from the National Government

Subsidy Income from National Government 1,903 Subsidy from CO Income and Expense Summary Income and Expense Summary Salaries and Wages-Regular Payroll PERA Additional Compensation Traveling Expense, Local Electricity Telephone/Telephone/Internet Rent Expenses Office Supplies Expenses Subsidy to Operating Units Depreciation - Buildings Depreciation - Office Equipment Income and Expense Summary Retained Operating Surplus Retained Operating Surplus Government Equity

Subsidy Income from National Government Subsidy from Regional Office/Staff Bureau 1,709 Income and Expense Summary Income and Expense Summary Salaries and Wages-Regular Payroll PERA Additional Compensation Traveling Expense, Local Electricity Telephone/Telephone/Internet Rent Expenses Office Supplies Expenses Depreciation - Buildings Depreciation - Office Equipment Income and Expense Summary Retained Operating Surplus Retained Operating Surplus Government Equity

193 592

6. Expenses

Income and Expense Summary Salaries and Wages-Regular Payroll PERA Additional Compensation Traveling Expense, Local Electricity Telephone/Telegraph and Internet Rent Expenses Office Supplies Expenses Subsidy to Regional Offices/Staff Bureaus Depreciation - Buildings Depreciation - Office Equipment Income and Expense Summary Retained Operating Surplus Retained Operating Surplus Government Equity

532 801 804 805 831 835 837 841 849 538 904 922 533 502 502 501

1,615 120 10 5 5 30 10 12 25 1,383 10 5 288 288 288 288

977 223 16 8 8 40 15 3 30 592 30 12 732 732 732 732

201

7. Income and Expense Summary

584

8. Retained Operating Surplus

584

134

Annex B

ITS
Credit

150

600

135

Annex B

ITS
Credit

13 5 2 1 109

109

109

13

13

13

136

Annex B

ITS
Credit

12

5 2

20

120

126 14

137

Annex B

ITS
Credit

75

225 75

195 30

200

180 20

500

64

14

25 12

138

Annex B

ITS
Credit

32

785

116 8 4 7 8 5 2 14 25 12

584

584

139