Professional Documents
Culture Documents
NEW GOVERNMENT
ACCOUNTING SYSTEM
(NGAS)
WHY THE NGAS ?
1. Simplify government accounting
Income Statement X /
Statement of / X
Operation
Balance Sheet / /
Cash Flow X /
Analysis of Cash / X
Account
THE NEW GAS AND
COMMERCIAL
ACCOUNTING (CA)
NGAS same as CA except for:
Salient Features of Government
Accounting
1. The requirement for appropriation,
allotment and obligation for every
expenditure (the obligation accounting
system)
2. Public Infrastructure separate from Plant,
Property and Equipment
3. Use of Special Accounts
REPEALING CLAUSE
SUBSIDIARY LEDGER
2003
Account Title: Performance/Bidders/Bail Bonds Payable Account Code: 427
Jan. 31 Bidder's bond for the purchase of office supplies
2003
Jan. 31 Receipt of Bidders Bond CRJ 7,500 7,500
Feb. 28 Receipt of Performance Bond CRJ 100,000 107,500
June 30 Refund of Bidders Bond CkDJ 7,500 100,000
SUBSIDIARY LEDGER
Agency
2003
with total contract price of P1 million RCD No. 2003-01-002 100,000 100,000
Chart of Accounts and Account Codes
– A three- digit account numbering system
is adopted.
Chart of Accounts and Account
Codes, continued…
The coding structure now identifies
responsibility centers.
Rationale
The Chart of Accounts is prescribed for
use by all sectors of the government. The
descriptions of all the accounts and the
instructions as to when these are to be
debited and credited are provided to
achieve uniformity in the recording of
government financial transactions.
Financial Statements – the following
statements is prepared monthly, quarterly
and annually.
– Balance Sheet – shows the financial condition of the
Agency at a specific date.
– Statement of Income and Expenses – shows
the income and expenses of the agency at the end of a
particular period.
– Statement of Cash Flows – shows the agency’s
cash activities.
– Statement of Government Equity – similar to
statement of equity
• No longer be used
• Acquisition of fixed/other assets be
recognized as capital expenditures
• Corrections of errors shall be by
reversing or adjusting entries, all in
the positive amount
Others
Allowance for doubtful accounts is provided.
Contingent accounts shall no longer be used
Interest income and expense shall be
accrued in normal manner.
Petty Cash Fund shall be maintained in
Imprest System
Cash deposits and foreign loans shall be
computed using the FX rate prescribed by
BSP. Any Forex Gain/Loss shall be
recognized, Forex loss being classified under
Financial Expenses.
SOURCE