Income/Collections and Deposits System (Revised)

This system covers the processes of acknowledging and reporting income/collections,

deposits of collections with Authorized Government Depository Bank (AGDB) or through the AGDB
for the account of the Treasurer of the Philippines, and recording of collections and deposits in the
books of accounts of the agency.
The sources of income and collections made by Agency are:
1. Taxes
4. Borrowings
2. Operating and Service Income
5. Miscellaneous Receipts
3. Grants and Donations
Methods of Accounting for Income:
1. Accrual Method used when income is realized (earned) during the accounting period
regardless of cash receipt. Account Receivable is set up and the general or
specific income accounts according to nature and classification are
credited.
2. Modified Accrual income of an agency is recorded as Deferred Credits to Income and the
appropriate receivable account is debited. The income account is recognized
upon receipt of collection and the Deferred Credits to Income account is
adjusted accordingly.
3. Cash Basis
accrual

shall be used for all other taxes, fees, charges and other revenues where
method is impractical. The income account is credited upon collection of the

cash
or its equivalent.
All collecting officers shall deposit intact all their collections with AGDB daily or not later than
the next banking day and shall record all the deposits made in the Cash Receipts Record.
Only National Government Agencies maintain one set of books:
1. Regular Agency books this shall be used to record the regular transactions of the
agency
like the receipt and utilization of Notice of Cash Allocation (NCA), and
collections
of income and other receipts which the agency are authorize to use. This
shall
consist of journals and ledgers, as follows:
Journals:
Cash Receipts Journal (CRJ)
Cash Disbursement Journal (CDJ)
Check Disbursement Journal (CkDJ)
General Journal (GJ)
Ledgers:
General Ledger (GL)
Subsidiary Ledgers (SL)
Receipt and Collection Process
1. The Collecting Officer (CO)receives payment from creditors and issues Official Receipt.
2. The CO records collections in Cash Receipt Record.
3. The CO deposits collections.

4. The CO records deposit in Cash Receipt Record.

5. The CO prepares the Report of Collections and Deposits and forwards to accounting unit with
copies of official receipts and validated Deposit Slips.
6. The accounting unit prepares Journal Entry Voucher (JEV) and records in the Cash Receipts
Journal.

Types
1.
2.
3.
4.
5.
6.

of collections as to authority to use:

Without authority to use.
With authority to use.
Authority with limitations
Income from sale of equipment.
Grants and donations intended for agency use.
Miscellaneous collections.

Illustrative Accounting Entries:

A. Without Authority to Use
As a general rule, all revenues regardless of amount and frequency of collection are to be
remitted to the National Treasury. NG books shall be discontinued.
1.

Receipt of cash payment of hospital fees

Cash collecting officers
Hospital fees

2.

10101010
40202170

xxx
xxx

Remittance to the treasury

Accumulated Surplus
Cash-collecting officers

30101010
10101010

xxx
xxx

B. With Authority to Use (RA Bks)

For agencies which are authorized to use income for their operations, the collections shall be
recorded as income in the Regular Agency (RA) books
1. Collection of prior years receivables
Cash- collecting officers
Accounts Receivables

10101010
10301010

xxx
xxx

2. Issuance of bill for the rent of an office space.

Accounts Receivables
Rent/Lease income

10301010
40202050

xxx
xxx

3, Record collection of rent payment.

Cash collecting officer
Accounts Receivable

10101010
10301010

4..Record temporary deposit to the NT thru the AGDB bank.

xxx
xxx

Cash-Treasury/Agency Deposit Trust

Cash collecting officer

10104010
10101010

xxx
xxx

5Release of NCA by DBM after request is made to the Bu of Treasury to use the deposited
collections as augmentation of MOOE.
Cash MDS, Trust
Cash-Treasury/Agency Deposit Trust

10101060
10104010

xxx
xxx

6.. Record disbursement for the repair (use of income).

Repairs and Maintenance Buildings
And Other Structures
Cash- MDS, Trust

50213040
10101060

xxx
xxx

C.Authority with Limitations

If the authority is subject to the limitation that any excess shall be remitted to the
National Treasury, such collections, ex.seminar and convention fees, the collections shall be
recorded in the RA books. The expenses shall be journalized, the balance/excess to be
remitted to the National Treasury.
1. Record collection of (ex.)seminar fees.
Cash collecting officer
Seminar/Training fees
2.

10101010
40202040

xxx
xxx

Record deposit of collection.

Cash in Bank Local Currency Current Account 10102020
xxx
Cash collecting officer
10101010

3.

xxx

Record payment of expenses.

Office supplies expense
Cash in Bank Local Currency Current Acct

50203010
10102020

xxx
xxx

4. Record the unused collections.

Cash collecting officer
Cash in Bank Local Currency Current Acct

10101010
10102020

xxx
xxx

5. Record remittance of excess to the Bu of Treasury through the AGDB.

Accumulated Surplus
Cash-collecting officers

30101010
10101010

xxx
xxx

D. Cash from another agency to implement its project (Inter-agency Transferred Funds). Under
existing regulations, the collections made by an Implementing Agency (IA) of cash from a
source agency (SA) to implement the latters project shall be remitted by the recipient
agency, the IA, to the BTr. The IA shall request the necessary NCA from the DBM)
1. Receipt of the check from the SA.
Cash collecting officers

10101010

xxx

Due to NGAs( SA)

20201050

xxx

2. Remittance of cash to the BTr

Cash-Treasury/Agency Deposit Trust
Cash-Collecting officers

10104010
10101010

xxx
xxx

3. Receipt of NCA from DBM

Cash-, MDS, Trust
Cash-Treasury/Agency Deposit Trust

10104060
10104010

xxx
xxx

4. Purchase of technical equipment

Technical & Scientific Equipment
Cash- MDS, Trust
Due to BIR

10605140
xxx
10104060
20201010

xxx
xx

5. Submission of liquidation report to the SA.and remittance to BIR.

Due to NGAs
20201050
xxx
Due to BIR
20201010
Technical and Scientific Equipment
10605140
Cash- MDS, Trust
10104060

xxx
xxx
xxx

If there is still a balance of funds transferred..

Due to NGAs
Cash- MDS, Trust

20201050 xxx
10104060

xxx