Professional Documents
Culture Documents
ILLUSTRATIVE ENTRIES
TRUST RECEIPTS OTHER THAN INTER-AGENCY TRANSFERRED FUNDS
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Annex O
463
Annex E
ILLUSTRATIVE ENTRIES
TRUST RECEIPTS - INTER-AGENCY TRANSFERRED FUNDS
SOURCE (AGENCY A) REGULAR AGENCY FUND BOOKS IMPLEMENTING AGENCY (Agency B) TRUST FUND BOOKS
Transactions Account Account Account Account
Title Code Debit Credit Title Code Debit Credit
ASSUMPTION: RESEARCH AND DEVELOPMENT WITH PPE COMPONENT
Per MOA, PPE will be donated to the IA after the project completion (beyond one year project)
APPROPRIATIONS, ALLOTMENTS AND OBLIGATIONS
1) Receipt of GAA Posting to the appropriate RAPAL and RAOD
MOOE 200,000
CO 300,000
Total 500,000
2) Receipt of allotment from the DBM Posting to the appropriate RAPAL and RAOD
MOOE 200,000
CO 300,000
Total 500,000
6) Transfer of funds to IA-National Due from National Government Agencies 10303010 450,000 Cash - Collecting Officers 10101010 450,000
Government Agency 450,000 Cash - Modified Disbursement System Due to NGAs 20201050 450,000
(MDS), Regular 10104040 450,000
7) Remittance of collections Cash - Treasury/Agency Deposit, Trust 10104030 450,000 Cash - Treasury/Agency Deposit, Trust 10104030 450,000
to the Bureau of the Treasury 400,000 Cash - Collecting Officers 10101010 450,000 Cash - Collecting Officers 10101010 450,000
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Annex E
SOURCE (AGENCY A) REGULAR AGENCY FUND BOOKS IMPLEMENTING AGENCY (Agency B) TRUST FUND BOOKS
Transactions Account Account Account Account
Title Code Debit Credit Title Code Debit Credit
11) Receipt of supplies and materials 75,000 Office Supplies Inventory 10404010 75,000
Accounts Payable 20101010 75,000
13) Issuance of supplies and materials Office Supplies Expenses 50203010 67,500
to project end-users 67,500 Office Supplies Inventory 10404010 67,500
14) Payment of research expenses 100,000 Research, Exploration and Development Expenses 50207020 100,000
Cash - Modified Disbursement
System (MDS), Trust 10104060 100,000
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Annex E
SOURCE (AGENCY A) REGULAR AGENCY FUND BOOKS IMPLEMENTING AGENCY (Agency B) TRUST FUND BOOKS
Transactions Account Account Account Account
Title Code Debit Credit Title Code Debit Credit
15) Remittance of withholding tax thru TRA
a. Constructive receipt of NCA Cash - Tax Remittance Advice 10104070 17,411
Cash - Treasury/Agency Deposit, Trust 10104030 17,411
ADJUSTING ENTRIES
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Annex E
SOURCE (AGENCY A) REGULAR AGENCY FUND BOOKS IMPLEMENTING AGENCY (Agency B) TRUST FUND BOOKS
Transactions Account Account Account Account
Title Code Debit Credit Title Code Debit Credit
PRE CLOSING TRIAL BALANCES SOURCE AGENCY BOOKS AGENCY BOOKS
Debit Credit Debit Credit
Due from National Government Agencies 10303010 275,000 Cash - Treasury/Agency Deposit, Trust 10104030 25,000
Subsidy from National Government 40301010 450,000 Office Supplies Inventory 10404010 7,500
Research, Exploration and Development Expenses 50207020 175,000 Technical and Scientific Equipment 10605140 250,000
Accumulated Depreciation - Technical and
Scientific Equipment 10605141 23,750
Due to NGAs 20201050 258,750
Total 450,000 450,000 Total 282,500 282,500
CLOSING ENTRIES
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Annex E
SOURCE (AGENCY A) REGULAR AGENCY FUND BOOKS IMPLEMENTING AGENCY (Agency B) TRUST FUND BOOKS
Transactions Account Account Account Account
Title Code Debit Credit Title Code Debit Credit
20) Closing of expenses Revenue and Expense Summary 30301010 175,000
Research, Exploration and Development Expenses 50207020 175,000
21) Closing of Revenue and Revenue and Expense Summary 30301010 275,000
Expense Summary account Accumulated Surplus/(Deficit) 30101010 275,000
Due from National Government Agencies 10303010 275,000 Cash - Treasury/Agency Deposit, Trust 10104030 25,000
Accumulated Surplus/(Deficit) 30101010 275,000 Office Supplies Inventory 10404010 7,500
Technical and Scientific Equipment 10605140 250,000
Accumulated Depreciation - Technical and
Scientific Equipment 10605141 23,750
Due to NGAs 20201050 258,750
Total 275,000 275,000 Total 282,500 282,500
YEAR 2 TRANSACTIONS
25) Issuance of supplies and materials Office Supplies Expenses 50203010 7,500
to project end-users 7,500 Office Supplies Inventory 10404010 7,500
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Annex E
SOURCE (AGENCY A) REGULAR AGENCY FUND BOOKS IMPLEMENTING AGENCY (Agency B) TRUST FUND BOOKS
Transactions Account Account Account Account
Title Code Debit Credit Title Code Debit Credit
26) Payment of research expenses 25,000 Research, Exploration and Development Expenses 50207020 25,000
Cash - Modified Disbursement
System (MDS), Trust 10104060 25,000
16) Recording of depreciation (6 months) Depreciation - Machinery and Equipment 50501050 11,875
Assume: estimated life of equipment = 10 years; Accumulated Depreciation - Technical and 11,875
residual value = 5%; and acquisition date = Jan. 5 Scientific Equipment 10605141
([250,000-(250,000 x .05)] ÷ 10 ÷ 2= 23,750)
To record depreciation for six months
29) Transfer of PPE to IA Donations 50299080 214,375 Due to NGAs 20201050 214,375
Research, Exploration and Development Expenses 50207020 35,625 Income from Grants and Donations in Kind 40402020 214,375
Cost 250,000 Due from National Government Agencies 10303010 250,000
Less: Acc. Depn 35,625 To record the transfer of PPE from Source Agency
CA of Equipment 214,375 To record the transfer of PPE to IA
Note: In case the PPE should be turned over to SA, the accounting entry shall be as follows:
Transfer of PPE to IA Technical and Scientific Equipment 10605140 250,000 Due to NGAs 20201050 214,375
Research, Exploration and Development Expenses 50207020 35,625 Accumulated Depreciation - Technical and
Cost 250,000 Accumulated Depreciation - Technical and Scientific Equipment 10605141 35,625
Less: Acc. Depn 35,625 Scientific Equipment 10605141 35,625 Technical and Scientific Equipment 10605140 250,000
CA of Equipment 214,375 Due from National Government Agencies 10303010 250,000
To record the transfer of PPE from Source Agency
To record the transfer of PPE to IA
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Annex E
ILLUSTRATIVE ENTRIES
TRUST RECEIPTS - INTER-AGENCY TRANSFERRED FUNDS
To record replenishment of MDS accounts of Agency A To record replenishment of MDS accounts of Agency A
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Annex E
BTr BOOKS BIR BOOKS
Transactions Account Account Account Account
Title Code Debit Credit Title Code Debit Credit
receipts collection of Agency B. receipts collection of Agency B.
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Annex E
BTr BOOKS BIR BOOKS
Transactions Account Account Account Account
Title Code Debit Credit Title Code Debit Credit
To record replenishment of
negotiated MDS checks.
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Annex E
BTr BOOKS BIR BOOKS
Transactions Account Account Account Account
Title Code Debit Credit Title Code Debit Credit
15) 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
Business Tax 40103030 17,411
To record responding entry for
remittance of withholding tax thru TRA To record revenue for income thru TRA
ADJUSTING ENTRIES
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Annex E
BTr BOOKS BIR BOOKS
Transactions Account Account Account Account
Title Code Debit Credit Title Code Debit Credit
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
CLOSING ENTRIES
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Annex E
BTr BOOKS BIR BOOKS
Transactions Account Account Account Account
Title Code Debit Credit Title Code Debit Credit
20) Closing of expenses Revenue and Expense Summary 30301010 450,000
Subsidy to NGAs 50214010 450,000
21) 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
YEAR 2 TRANSACTIONS
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Annex E
BTr BOOKS BIR BOOKS
Transactions Account Account Account Account
Title Code Debit Credit Title Code Debit Credit
26) 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 record replenishment of
negotiated MDS checks.
Cost 250,000
Less: Acc. Depn 35,625
CA of Equipment 214,375
Note: In case the PPE should be turned over to SA, the accounting entry shall be as follows:
Transfer of PPE to IA
Cost 250,000
Less: Acc. Depn 35,625
CA of Equipment 214,375
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