Beruflich Dokumente
Kultur Dokumente
: All Provincial, City and Municipal Treasurers; COA Regional Directors, Division
Auditors, Provincial and City Auditors and Others Concerned.
SUBJECT : Guidelines in the Implementation of Letter of Instruction No. 348 and Presidential
Decree No. 777.
Pursuant to the policy contained in Presidential Letter of Instructions No. 348, dated
December 19, 1975 directing the closing of the books of accounts of the Government as of
December 31, 1975, and as of December 31, 1976, and Section 3 of Presidential Decree No.
777, dated August 24, 1975, changing the fiscal year to a calendar year basis, the following
guidelines and instructions are hereby promulgated.
1. All budgetary accounts of provinces, cities and municipalities shall be closed as of
December 31, 1975, in order to reflect the results of operations during the six-month period
ended that date. All uncollected revenues and receipts as well as unexpended balances of
appropriations as of December 31, 1975, shall not be closed or rreverted to the unappropriate
surplus.
2. Illustrative special closing entries in order to reflect the results of operations during
the first six months ending December 31, 1975, are provided in Appendix "A". This will be
effected thru Special Journal Voucher.
Under the continuing appropriation concept, the balances of all budgetary accounts as of
December 31, 1975, shall be transferred to the succeeding month and year, January 1, 1976,
through Special Journal Voucher in the manner indicated below (Data taken from illustrative
example in Appendix "A")
Debit
Revenue receivable, Ca
P200,000
Revenue from taxation, Ca-3 to 16
Other incidental revenue, Ca 21-39
Other receipt, Ca 54 to 73
Appropriations
Unappropriated Surplus, C
300,000
Credit
P100,000
70,000
30,000
300,000
3. The closed budgetary accounts shall not be reflected in the succeeding month's trial
balance. Instead, a "Statement of Income and Expenses" shall be prepared from these
accounts and appended to the trial balance beginning January, 1976 until June 30, 1976. The
format of said statement is provided below:
B.
EXPENDITURES -------------------------------------------------Pxxx
(List also below the details of
expenditures by organizational unit
and by object of expenditure)
____
EXCESS OF INCOME OVER EXPENDITURE
Pxxx
====
AMOUNT PERTAINING TO
JULY 1 TO
JAN. 1 TO
DEC. 31, 1975
JUNE 30, 1976
A. INCOME
(List details below) as in No. 3
Pxxx
Pxxx
Pxxx
B. EXPENDITURES
(List details below) as in No. 3
Pxxx
Pxxx
Pxxx
C. EXCESS OF INCOME
OVER EXPENDITURES
Pxxx
====
Pxxx
====
Pxxx
===
6. Preparatory to changing the fiscal year to a calendar year basis, all budgetary
accounts shall likewise be closed as of December 31, 1976 in accordance with the usual
procedures for fiscal year end closing of accounts. After closure of the accounts as of
December 31, 1976, the "Statement of Income and Expenses" shall farther be updated to
include the results of operations up to December 31, 1976. This shall be shown in the operating
statement as follows:
GRAND
TOTAL
JULY 1 TO
DEC. 31, 1975
A. INCOME
(List details below) as in No. 3
Pxxx
Pxxx
Pxxx
Pxxx
B. EXPENDITURES
(List details below) as in No. 3
Pxxx
Pxxx
Pxxx
Pxxx
C. EXCESS OF INCOME
OVER EXPENDITURES
Pxxx
====
Pxxx
====
Pxxx
====
Pxxx
===
7. All other statements and/or schedules that are ordinarily appended to support the
local government units trial balances as required by this Commission shall also be submitted
together with the trial balances for each of the fiscal periods ending December 31, 1975, June
30, 1976 and December 31, 1976, on or before the twentieth day following the end of each
fiscal period.
8. This circular shall take effect December 31, 1975.
(SGD.) FRANCISCO S. TANTUICO, JR., Acting Chairman
Appendix A
ILLUSTRATIVE CLOSING ENTRIES FOR DECEMBER 31, 1975
I.
Assume that the following transactions were extracted from the preliminary trial balance of Province
X
Account
Debit
Balance
Debit
Total
Credit
Total
P200,000
P500,000
200,000
50,000
50,000
P300,000
300,000
120,000
80,000
P200,000
P500,000
P500,000
300,000
Debit
Credit
Credit
Balance
A. Revenue Account
Revenue Receivable, Ca Revenue from taxation, Ca-3 to 16
Other incidental revenue, Ca-21 to 39
Other receipts, Ca-54 to 73
P100,000
70,000
30,000
B. Appropriate Account
Appropriations (Details omitted
for simplicity) C-?-?
Unappropriated Surplus, C
P300,000
P200,000
(P200,000)
(P100,000)
( 70,000)
( 30,000)
B. Appropriate Account
Appropriations (Details omitted
for simplicity) C-?-?
Unappropriated Surplus, C
III.
(P300,000)
(P300,000)
Final trial balance as of Dec. 31, 1975 after effecting the closing journal entries:
Account
Debit
Balance
Debit
Total
Credit
Total
Credit
Balance
A. Revenue Account
Revenue Receivable, Ca Revenue from taxation, Ca-3 to 16
Other incidental revenue, Ca-21 to 39
Other receipts, Ca-54 to 73
P300,000
200,000
50,000
50,000
P300,000
200,000
50,000
50,000
P200,000
Pq00,000
P200,000
300,000
B. Appropriate Account
Appropriations (Details omitted
for simplicity) C-?-?
Unappropriated Surplus, C
P100,000