Annex M

ILLUSTRATIVE ENTRIES
TRUST RECEIPTS - INTER-AGENCY TRANSFERRED FUNDS
REMITTED TO THE NATIONAL TREASURY
BTr BOOKS BIR BOOKS
Transactions Account Account
Account Title Debit Credit Account Title Debit Credit
Code Code
ASSUMPTION: RESEARCH AND DEVELOPMENT WITH PPE COMPONENT
Per MOA, PPE will be donated to the IA after the project completion (beyond one year project)

Assumption:
Beg. Balance
Cash in Bank Local Currency,
Savings Account 10102030 500,000
Accumulated Surplus/(Deficit) 30101010 500,000

1) Receipt of NCA for Trust

MOOE 200,000
CO 250,000
Total 450,000

BTR - Regular Agency Fund

2) Transfer of funds to IA-National Subsidy to NGAs 50214010 450,000
Government Agency 450,000 Cash in Bank Local Currency,
Current Account 10102020 450,000 450,000
Cash in Bank Local Currency,
Savings Account 10102030 450,000
To recognize replenishment of MDS accounts of Agency A

BTR - Trust Fund

3) Remittance of collections Cash in Bank - Local
to the Bureau of the Treasury 400,000 Currency, Savings Account 10102030 450,000
Cash - Treasury/Agency Deposit,
Trust 10104030 450,000
To recognize deposit of trust
receipts collection of Agency B.

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BTr BOOKS BIR BOOKS

Transactions Account Account
Account Title Debit Credit Account Title Debit Credit
Code Code
BTR - Trust Fund
4) Payment of accounts payable Cash - Modified Disbursement
System (MDS), Trust 10104060 307,589
AP for equipment 250,000 Cash in Bank Local Currency,
AP for supplies and materials 75,000 Current Account 10102020 307,589 307,589
325,000 Cash in Bank - Local
Less: Withholding Tax Currency, Savings Account 10102030 307,589
1% withholding tax on income 2,902 To recognize negotiated
5% withholding of final tax (VAT) 14,509 MDS checks.
Total Taxes 17,411

Net Amount paid 307,589

5) Payment of research expenses 100,000 BTR - Trust Fund

Cash - Modified Disbursement
System (MDS), Trust 10104060 100,000
Cash in Bank Local Currency,
Current Account 10102020 100,000 100,000
Cash in Bank - Local
Currency, Savings Account 10102030 100,000
To recognize negotiated
MDS checks.

6) Remittance of withholding tax thru TRA

a. Constructive receipt of NCA BTR - Trust Fund
BIR Regular Agency Fund
Cash - Treasury/Agency Deposit,
Trust 10104030 17,411 Cash - Tax Remittance Advice 10104070 17,411
b. Remittance of taxes thru TRA Cash - Tax Remittance Advice 10104070 17,411 Income Tax or 40101010
To recognize responding entry for Business Tax 40103030 17,411
remittance of withholding tax thru TRA To recognize revenue for income thru TRA
ADJUSTING ENTRIES

BTR - Trust Fund

7) Charging of MDS disbursements Cash - Treasury/Agency
against the Treasury Deposit Deposit, Trust 10104030 407,589
Cash - Modified Disbursement
System (MDS), Trust 10104060 407,589
To recognize charging of MDS disbursements against treasury deposit.

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BTr BOOKS BIR BOOKS

Transactions Account Account
Account Title Debit Credit Account Title Debit Credit
Code Code
PRE CLOSING TRIAL BALANCES BTr BOOKS BIR BOOKS
Debit Credit Debit Credit
BTR - Regular Agency Fund BIR - Regular Agency Fund
Cash in Bank - Local Cash - Tax Remittance Advice 10104070 17,411
Currency, Savings Account 10102030 50,000 Income Tax or 40101010
Subsidy to NGAs 50214010 450,000 Business Tax 40103030 17,411
Accumulated Surplus/(Deficit) 30101010 500,000

Total 500,000 500,000 Total 17,411 17,411

BTR - Trust Fund

Cash in Bank - Local
Currency, Savings Account 10102030 42,411
Cash - Tax Remittance Advice 10104070 17,411
Cash - Treasury/Agency Deposit,
Trust 10104030 25,000
Total 42,411 42,411

CLOSING ENTRIES

8) Closing of revenue Income Tax or 40101010

Business Tax 40103030 17,411
Revenue and Expense Summary 30301010 17,411
To recognize closing to revenue to
Revenue and Expense Summary account

9) Closing of expenses Revenue and Expense Summary 30301010 450,000

Subsidy to NGAs 50214010 450,000
To recognize closing of expenses to
Revenue and Expense Summary account

10) Closing of Revenue and Accumulated Surplus/(Deficit) 30101010 450,000 Revenue and Expense Summary 30301010 17,411
Expense Summary account Revenue and Expense Summary 30301010 450,000 Accumulated Surplus/(Deficit) 30101010 17,411
To recognize closing of Revenue and To recognize closing of Revenue and
Expense Summary account Expense Summary account

11) Closing of Cash TRA Accumulated Surplus/(Deficit) 30101010 17,411

Cash - Tax Remittance Advice 10104070 17,411
To recognize closing of Cash-TRA

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BTr BOOKS BIR BOOKS

Transactions Account Account
Account Title Debit Credit Account Title Debit Credit
Code Code
POST CLOSING TRIAL BALANCES BTr BOOKS BIR BOOKS

Cash in Bank - Local

Currency, Savings Account 10102030 50,000 none
Accumulated Surplus/(Deficit) 30101010 50,000
Total 50,000 50,000 Total 0 0

YEAR 2 TRANSACTIONS
12) Payment of research expenses 25,000 BTR - Trust Fund
Cash - Modified Disbursement
System (MDS), Trust 10104060 25,000
Cash in Bank Local Currency,
Current Account 10102020 25,000 25,000
Cash in Bank - Local
Currency, Savings Account 10102030 25,000
To recognize negotiated
MDS checks.

460