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Barangay Accounting

System Manual
For Use by
City/Municipal
Accountants

Objectives of the Manual


1. Prescribes uniform guidelines and
procedures in accounting for barangay
funds and property;
2. Provides new coding and chart of accounts
in accordance with the New Government
Accounting System; and
3. Prescribes accounting records to be
maintained and financial statements to be
rendered.

Registers
and
Reports
Cash Receipts
and Deposits
Register

Basis of
Recording

Cash
Disbursements
Register
Check
Disbursements
Register
Cash on Hand
and in Bank
Register

J
E
Vs

Books of
Original
Entry

Books of
Final
Entry

Trial
Balance

G
Ls

Preand
Post
Closing
TB

G
J

Statement of
Income and
Expenses
Balance
Sheet
Statement of
Cash Flows

S
L
s

Statement of
Changes in
Government
Equity
Schedule of Accounts
Receivable
Schedule of Accounts
Payable

Petty Cash Fund


Register
Inspection and
Acceptance
Report

Financial
Statements
and
Schedules

Registries of PI and
RP

Schedule of Public
Infrastructures/Schedule of
Reforestation Projects

Liquidation Report

Recording and Generation of Financial Statements and Reports/Schedules

General Accounting Policies


1. Modified Accrual Accounting
2. Barangay Books of Accounts
3. Bookkeeping Procedures
4. Chart of Accounts
5. Journal Entry Voucher
6. Appropriations and Commitments

7. Financial Expenses
8. Petty Cash Fund

General Accounting Policies


9.

Payroll Fund

10. Advances to Officers and Employees


11. Recognition of Liability
12. Purchase/Issuance of Supplies &
Materials
13. Depreciation of PPE
14. Public Infrastructures and Reforestation
Projects

General Accounting Policies


15. Reclassification of Assets
16. Borrowings and Loans
17. Completed Public Infra
18. Trial Balance
19. Financial Statements and Schedules
20. Consolidation of Trial Balance and FS

RECEIPTS and DEPOSITS


Accounting Policies
1. CRDReg shows the receipts and deposits
of the barangay. Recording is based on the
SCD and CM.
2. SCD shall be used to ascertain the
correctness of receipts and deposits recorded
in the CHBReg
3. CHBReg shall be used in reconciling the
deposits and in the preparation of Bank
Reconciliation Statement (BRS)

RECEIPTS and DEPOSITS


Accounting Policies
4. BRS- shall be prepared by the City/Municipal
Accountant and shall be submitted to the
COA Auditor on or before the 20th of the
following month.

5. Interest earned on bank deposits shall be


recorded at gross.

RECEIPTS and DEPOSITS

Illustrative Accounting
Entries

RECEIPTS and DEPOSITS


1. Collection of the BT as reported in CRDReg

Account Title

Account Code

Cash in Vault
Tax on Sand, Gravel and Other Quarry
Products
Income from Grants and Donations
Permit Fees
Fines and Penalties Permits and Licenses
Clearance and Certification Fees
Garbage Fees
Rent Income
Subsidy from Other NGAs
Other Service Income

101

Dr.

Cr

xxx

593
662
605
609
613
616
642
652
628

To record collections for the period ____to____ per CRDReg No.


___________.

xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx

RECEIPTS and DEPOSITS

2. Collections of the BT as deputized by City/Municipal


Treasurer
Account
Title

Cash in Vault

Due to LGUs

Account
Code

Dr.

101

xxx

418

To record collections for the period ____to_____ per CRDReg


No.
___________.

Cr

xxx

RECEIPTS and DEPOSITS

3. Deposit of Collections with AGDB


Account Title

Account
Code

Cash in Bank, Local Currency, Current Account

Cash in Vault

111

101

Dr.

Cr

xxx

xxx

To record deposits of collections for the period _________ per CRDReg


No.
___________.

RECEIPTS and DEPOSITS

4. Remittance of collections by deputized BT to the City/


Municipal Treasurer
Account Title

Due to LGUs

Cash in Vault

Account
Code

418

101

Dr.

Cr

xxx

xxx

To record deposit of collections per certified CRDReg No.___________

RECEIPTS and DEPOSITS


5.a Credit Memo from the bank for direct deposit of
barangay share from IRA and RPT

Account Title

Account
Code

Cash in Bank, Local Currency, Current Account


Internal Revenue Allotment
Real Property Tax

111
665
588

Dr.

Cr

xxx
xxx
xxx

To record barangay share from IRA and RPT directly deposited to the
authorized bank as reported in the CRDReg No. __________.

RECEIPTS and DEPOSITS

5.b Interest on bank deposit as reflected in the


BnkS/passbook

Account Title

Cash in Bank, Local Currency, Current Account


Cash in Bank, Local Currency, Savings Account
Cash in Bank, Local Currency, Time Deposit
Interest Income

Code

Dr.

111
112
113
664

xxx
xxx
xxx

Cr

xxx

To record interest earned for the quarter ending _______, 2006 per bank
statement/passbook for the period _____ and in the CRDReg No. _____.

Cash Shortage

6.a Recognition of cash shortage


Account Title

Loss of Assets
Cash in Vault

Code

Dr.

961
101

xxx

Cr

xxx

To record the shortage incurred by the BT during the cash examination


conducted on ____ per COA Auditors report.

6.b Set-up of accountability of BT for the cash shortage incurred


Account Title

Due from Officers and Employees


Other Deferred Credits

Code

Dr.

123
455

xxx

Cr

xxx

To record the accountability of the BT over the cash shortage incurred.

Cash Shortage
6.c Receipt of COA Decision granting relief to the BT for the cash
shortage
Account Title

Other Deferred Credits


Due from Officers and Employees

455
123

Cr

Dr.

Code

xxx
xxx

To close the receivable and other deferred credits accounts due to COA
Decision No. ___ dated ____ granting relief to the BT for the shortage
incurred.

6.d Receipt of payment of cash shortage due to COA Decision


denying the request for relief from cash accountability
Account Title

Cash in Vault
Due from Officers and Employees

Code

101
123

Dr.

Cr

xxx
xxx

To record payment made by the BT for shortage incurred per CRDReg No.
(OR No.__ dated __ ) as the request for relief from cash accountability was
denied per COA Decision No___ dated ___ .

Cash Shortage

6.e Adjustment of Other Deferred Credits Account


Account Title

Other Deferred Credits


Miscellaneous Income

Code

Dr.

455
678

xxx

To adjust the deferred credits account due to COAs denial of the


request for relief from cash accountability and payment by AO of the
shortage.

Cr

xxx

Dishonered Check
7.a Receipt of BnkS with Debit Memo (DM) and original of the
dishonored check
Account Title

Other Receivables
Cash in Bank, Local Currency, Current Account

To record receipt of DM for check no.___ dated___


which was dishonored and returned by the bank.

Code

Dr.

149
111

xxx

Cr

xxx

paid by ____

7.b Receipt of payment for the dishonored check


Account Title

Cash in Vault
Other Receivables

Code

Dr.

101
149

xxx

To record the receipt of payment received equivalent to the


dishonored check per CRDReg No. __ (OR No.__ dated __).

Cr

xxx

Receipt of proceeds from


borrowings and other loans

8.a Proceeds received by the BT

Account Title

Cash in Vault
Interest Expense
Bank Charges
Loans Payable - Domestic

Code

Dr.

101
975
971
444

xxx
xxx
xxx

Cr

xxx

To record the proceeds of loan secured from the___ (name of the


bank/lending institution) as per SB Resolution No___ dated___
net of
the bank charges and interest charged thereon per CRDReg No___ (OR
No___ dated___).

Receipt of proceeds from


borrowings and other loans

8.b Proceeds directly credited to the bank account of the barangay

Account Title

Cash in Bank, LCCA


Interest Expense
Bank Charges
Loans Payable - Domestic

Code

Dr.

111
975
971
444

xxx
xxx
xxx

Cr

xxx

To record the proceeds of loan secured from the (name of the


bank/lending institution) per SB Resolution No.___ dated ___ net of the
bank charges and interest charged thereon per CRDReg No. ____ (CM
dated___).

Refund of excess cash advance


from officers and employees
9.a Refund of Payroll Fund
Account Title

Cash in Vault
Payroll Fund

Code

Dr.

101
106

xxx

Cr

xxx

To record the refund of the BT of unclaimed salaries/honoraria per


CRDReg No___ (OR No______ dated _____).

9.b Refund of cash advances for travel


Account Title

Cash in Vault
Advances to Officers and Employees

Code

Dr.

101
148

xxx

Cr

xxx

To record the refund of excess cash advances given to the PB for


official travel to Manila per CRDReg No.___(OR No_____ dated_______).

Performance Bond (Cash)

10. Receipt of Performance Bond (cash)


Account Title

Cash in Vault
Performance/Bidders/Bail Bonds Payable

Code

Dr.

101
427

xxx

Cr

xxx

To record the receipt of cash bond from supplier ____ per CRDReg
No. ____ (OR No____
dated ____).

Settlement of Audit disallowanaces

11. Receipt on settlement of audit disallowances

Account Title

Cash in Vault
Receivables Disallowances/Charges

Code

Dr.

101
146

xxx

Cr

xxx

To record the payment of audit disallowances/charges by Mr.____as


per CRDReg No______ (Audit Charge No______ dated ______ and OR No
_______ dated_____ ).

Cash Refunds

12. Cash Overages


Account Title

Cash in Vault
Miscellaneous Income

Code

Dr.

101
678

xxx

Cr

xxx

To record the cash overage discovered during the cash examination


conducted on ____per report dated _____ and CRDReg No. ___ (OR No.
_____ dated ___ ).

Refund of petty Cash

13. Refund of PCF balance due to resignation/replacement of Petty


Cash Fund Custodian (PCFC)
Account Title

Cash in Vault
Petty Cash Fund

Code

Dr.

101
104

xxx

Cr

xxx

To record the refund of PCF balance due to resignation of the PCFC,


as per CRDReg No ____ (OR No____ dated ____) and PCFReg No.___ .

Financial Assitance
14. Receipt of financial assistance from the city/municipality/
province
Account Title

Cash in Bank, LCCA


Subsidy from Other LGUs

Code

Dr.

111
656

xxx

Cr

xxx

To record the receipt of CM for the subsidy given by the city/


municipality/province of ______

15. Receipt of financial assistance from National Government


Agencies, ex: from PDAF of Congressmen or Senators
Account Title

Cash in Vault
Cash In Bank, LCCA
Subsidy from Other NGAs

Code

Dr.

101
111
652

xxx
xxx

To record the receipt of subsidy from agency sponsored by


Congressmen or Senators _______________.

Cr

xxx

Financial Assistance
16. . Receipt of PPE from National Government Agencies, ex: from
PDAF of Congressmen or Senators
Account Title

Property Plant and Equipment (Specific PPE Account)


Income from Grants and Donations

Code

Dr.

???
662

xxx

Cr

xxx

To record the receipt of PPE from agency sponsored by


Congressmen or Senators.

17. . Receipt of PPE donated by private entities


Account Title

Property Plant and Equipment (Specific PPE Account)


Income from Grants and Donations
To record the receipt of PPE from private entities

Code

Dr.

???
662

xxx

Cr

xxx

APPROPRIATIONS
AND COMMITMENTS

Appropriations and Commitments

Accounting Policies

1. Yearly, the SACB of each


barangay for the five funds
shall be consolidated by fund
for submission to the DBM and
COA.

Appropriations and Commitments

Accounting Policies

2. The City/Municipal Budget Officer


shall
prepare
the
CSACB
(Appendix7) of all barangays under
the city/municipality in 3 copies.

Appropriations and Commitments

Accounting Policies

3. CSACB shall be submitted to the following offices


within sixty (60) days after the 31st of December
1. GAFMIS, COA thru the Audit Team Leader/Auditor
2. DBM thru its regional offices
3. City/Municipal Budget Officer file

The report for submission to COA shall be prepared in


printed and digital copies (diskette or compact disc).

DISBURSEMENTS

Disbursements
Accounting Policies

1. Disbursements by checks and in


cash shall be recorded in the books
based on the certified CKDReg and
CDReg submitted by the BRK to the
City/Municipal Accountant on or
before the 5th day of the following
month.

Disbursements

Accounting Policies

2. Taxes withheld from interest earned


on bank deposits reported in the
bank statement/passbook shall be
accounted for as expense and shall
be covered by an appropriation;

Disbursements

Accounting Policies

3. The CDReg and the Petty Cash


Fund Register (PCFReg) shall
be used as reference in posting
the transaction in the SL
maintained for the AOs; and

Disbursements

Accounting Policies

4. At year end, expenses for


unreplenished PCF reflected in
the PCFReg shall be recorded
thru a JEV

Disbursements by Checks

Illustrative Accounting
Entries

Disbursements by Checks
1. Disbursements as recapitulated in the CkDReg

Account Title

Payroll Fund
Advances to Officers and Employees
Honoraria
Traveling Expenses - Local
Training Expenses
Office Supplies Expenses
Electricity Expenses
Water Expenses
Telephone Expenses, Landline
Cash in Bank, LCCA

Code

Dr.

106
148
720
751
753
755
767
766
772
111

xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx

Cr

xxx

To record checks issued per certified CkDReg No. ___ for


_____, 2007.

Disbursements by Checks
2. Cash purchase of office equipment
Account Title

Office Equipment
Cash in Bank, LCCA
Due to BIR

Code

221
111
412

Dr.

Cr

xxx
xxx
xxx

To record the purchase of office equipment per CkDReg


No.__ (Check No. __ dated __).
3. Remittance of taxes withheld to Bureau of Internal Revenue (BIR)
Account Title

Due to BIR
Cash in Bank, LCCA

Code

412
111

Dr.

Cr

xxx

To record the remittance of taxes withheld to the BIR per


CkDReg No. __ (Check No. __ dated __).

xxx

Disbursements by Checks

4. Establishment of the PCF


Account Title

Petty Cash Fund


Cash in Bank, LCCA

Code

Dr.

Cr

104 xxx
111
xxx

To record the grant of PCF per SB Resolution No.___ dated


____and CkDReg No. _____ (Check No. ___ dated __ ).

Disbursements by Checks

5. Replenishment of the PCF

Account Title

Office Supplies Expenses


Accountable Forms Expenses
Traveling Expenses Local
Drugs and Medicines Expenses
Military and Police Supplies Expenses
Postage and Deliveries
Telephone Expenses Mobile
Transportation and Delivery Expenses
Cash in Bank, LCCA

Code

Dr.

755
756
751
759
764
771
773
784
111

xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx

To record replenishment of PCF per CkDReg No. _____


(Check No. ______
dated ____).

Cr

xxx

Disbursements by Checks
6. Payment of Accounts Payable
Account Title

Accounts Payable
Cash in Bank, LCCA
Due to BIR

Cr

Dr.

Code

401
111
412

xxx
xxx
xxx

To record payment of accounts payable per CkDReg No.____


(Check No ______ dated _____).

7. Payment of repairs and maintenance of motor vehicles


Account Title

Repairs and Maintenance - Motor Vehicles


Cash in Bank, LCCA
Due to BIR

Code

841
111
412

Cr

Dr.

xxx
xxx
xxx

To record payment of repairs and maintenance of motor


vehicles per CkDReg No. _____ (Check No ____ dated ____ )

Disbursements by Checks
Other Related Transactions

8.a Lost/Spoiled/Stale check for replacement

Account Title

Cash in Bank, LCCA


Accounts Payable (or appropriate
liability account previously debited)

Code

Dr.

111

xxx

401

Cr

xxx

To record the receipt of original lost/spoiled/stale Check No.


___ dated____ issued in favor of ____ (stoppage of payment
issued to the bank) and request for replacement.

Disbursements by Checks
Other Related Transactions

8.b Replacement of the check


Account Title

Accounts Payable (or appropriate


liability account previously restored)
Cash in Bank, LCCA

Code

401
111

Dr.

xxx

To record the replacement of Check No.__ dated ____


reported lost/ spoiled/stale per CkDReg No.__ (Check No.__
dated ___).

Cr

xxx

Disbursements by Checks
Other Related Transactions

8.c Taxes withheld by the bank (per bank statement)


Account Title

Taxes, Duties and Licenses


Cash in Bank, LCCA
Cash in Bank, LCSA
Cash in Bank, LCTD

Code

891
111
112
113

Dr.

xxx

To record taxes withheld by the bank from the interest


earned on deposits.

Cr

xxx
xxx
xxx

Disbursements by Checks
Other Related Transactions

8.d Prior years expenses


Account Title

Prior Years adjustments


Cash in Bank, LCCA

Code

684
111

Dr.

Cr

xxx
xxx

To record payment of unrecorded prior years expenses per


CkDReg No.___ (Check. No.___ dated __ ).

Accounting for Payroll Fund

Pro-forma Accounting Entries


1. Payment of salaries and honorarium (per recapitulation in the
CDReg)
Account Title

Salaries and Wages Regular


Salaries and Wages Casual
Honoraria
Payroll Fund
Due to BIR

Code

Dr.

701
705
720
106
412

xxx
xxx
xxx

Cr

xxx
xxx

To record the payment of salaries and honoraria per certified CDReg


No. _______.

Supplies and Materials


Accounting Policies

1. Supplies and materials purchased shall be


directly charged to appropriate supplies and
materials expense account.
2. Small items like stapler, puncher, ruler,
mechanical tools, and other barangay
supplies, with a life of more than one year,
but small enough to be considered as PPE,
shall be classified as expense upon
purchase.

Supplies and Materials


Accounting Policies

3. The disposal of obsolete supplies and


materials and unserviceable small items
shall be covered by Inventory and
Inspection Report of Unserviceable
Property (IIRUP).
4. Cost of transporting supplies and
materials to the barangay shall be
charged to Delivery Expense account.

Supplies and Materials

Illustrative
Accounting
Entries

Supplies and Materials


1a. Purchase of Supplies and Materials and small
tangible items
Account Title

Code

Dr.

755
756
759
764
765
401

xxx
xxx
xxx
xxx
xxx

Cr

a. Purchase on account covered by IAR


Office Supplies Expenses
Accountable Forms Expenses
Drugs and Medicines Expenses
Military and Police Supplies Expenses
Other Supplies Expenses
Accounts Payable

To record the items received per IAR and set up the


corresponding liability.

xxx

Supplies and Materials

1b. Purchase of Supplies and Materials


Account Title

Code

Dr.

755
756
759
764
765
412
111

xxx
xxx
xxx
xxx
xxx

Cr

b. Cash Purchases
Office Supplies Expenses
Accountable Forms Expenses
Drugs and Medicines Expenses
Military and Police Supplies Expenses
Other Supplies Expenses
Due to BIR
Cash in Bank LCCA

To record purchases on cash CKD Reg No. (Check


No.___dated____.

xxx
xxx

Supplies and Materials

2. Receipt of supplies and materials as financial


assistance from private parties.
Account Title

Office Supplies Expenses


Drugs and Medicines Expenses
Income from Grants and Donations

Code

Dr.

Cr

755 xxx
759 xxx
662
xxx

To record the items received from private entities

Supplies and Materials

3. Receipt of supplies and materials as subsidy from the


city/municipality/province.
Account Title

Office Supplies Expenses


Drugs and Medicines Expenses
Subsidy from other LGUs
To record the items received from the
city/municipality/province.

Code

Dr.

Cr

755 xxx
759 xxx
656
xxx

Supplies and Materials

4. Proceeds from sale of obsolete supplies, materials and


unserviceable items.
Account Title

Cash in Vault
Miscellaneous Income

Code

Dr.

Cr

101 xxx
678
xxx

To record sale of obsolete supplies, materials and


unserviceable items per CRDreg No. ___dated____.

Property, Plant and Equipment

Accounting Policies

1. Cost of PPE includes


purchase cost or invoice cost
and all incidental costs

Property, Plant and Equipment

Accounting Policies

2. Cost of assets under construction shall


include all costs incurred during
construction.
Expenses incurred after the completion of the projects
shall be charged to operation

Property, Plant and Equipment

Accounting Policies

3. All projects under construction shall be


recorded under Construction in
Progress Agency Assets.

Upon completion, it shall be closed and


recorded in its appropriate PPE account

Property, Plant and Equipment

Accounting Policies

4. All PPE except land shall be subject to


depreciation. A 10% residual value shall be
set aside in computing the depreciation
using the straight line method.
5. Depreciation shall start on the month
following the month of purchase or
completion of the project.

Estimated Useful Lives of PPE


(COA Circular No. 2003-007 dated December
11, 2003)
Property
LAND IMPROVEMENTS
Land Improvements
BUILDINGS - those that are predominantly
Wood
Mixed
Concrete
LEASEHOLD IMPROVEMENTS (Note 1)
Land
Buildings
Wood
Mixed
Concrete
OFFICE EQUIPMENT, FURNITURE AND
FIXTURES
Office Equipment
Furniture and Fixtures
IT Equipment Hardware
Library Books

No. of
years
10
10
20
30
10
10
20
30

5
10
5
5

Estimated Useful lives of PPE


(COA Circular No. 2003-007 dated December 11, 2003)

Property
MACHINERIES AND EQUIPMENT
Machinery
Agricultural, Fishery and Forestry
Communication Equipment
Construction and Heavy Equipment
Firefighting Equipment and Accessories
Medical, Dental and Laboratory Equipment
Military and Police Equipment
Sports Equipment
Technical and Scientific Equipment
Other Machineries and Equipment
TRANSPORTATION EQUIPMENT
Motor Vehicles
Watercrafts
Other Transportation Equipment
OTHER PROPERTY, PLANT AND
EQUIPMENT

No. of
years

Note 1
The estimated useful life shall depend on the length of the
lease. It shall be the period of the lease or the estimated
useful life of the assets, as given, whichever is lower.

10
10
10
10
7
10
10
10
10
10
7
10
10
5

Property, Plant and Equipment

Accounting Policies

6. Fully depreciated PPE which are still in


operation shall remain as PPE for balance
sheet presentation
7. Disposal of unserviceable PPE shall be
covered by IIRUP. The same shall be
dropped from the books only after its
disposal

Property, Plant and Equipment

Accounting Policies
8. Grants and donations in kind shall be booked up
at appraised cost in the absence of any cost at
the time of receipt.
9. Transfer of PPE from other government agencies
shall be recorded in the books at net book value,
based on the JEV supporting the donation/
grant/transfer.

Property, Plant and Equipment

Accounting Policies
10. Lost PPE shall be dropped from the books upon
receipt of the notice of loss. The loss shall be
charged to account Loss of Assets at an amount
equal to the net book value.
Sample Computation:
Cost of motor vehicle
P400,000
Accumulated Depreciation
257,000
Net Book Value or Loss of Assets P143,000

Property, Plant and Equipment

Accounting Policies
11. The accountability of the AO over the loss of
depreciable asset shall be based on the sound value.
The sound value shall be computed by deducting the
estimated depreciation of the lost asset based on the
replacement cost.
Sample Computation:
Replacement Cost
Accumulated Depreciation
Net Book Value or Sound Value

P500,000
321,000
P179,000

Property, Plant and Equipment

Accounting Policies
12. Repairs and maintenance of equipment shall be
charged to account Repairs and Maintenance of the
specific equipment. Major repairs which resulted in
increased economic benefits or service potential shall
be added to its carrying amount (Item 7.3 of the Philippine
Government Accounting Standards, COA Resolution No. 2006-006
dated January 31, 2006.)

Property, Plant and Equipment

Pro-forma
Accounting
Entries

Purchase of PPE

a. On account covered by IAR


Account Title

Office Equipment
IT Equipment
Motor Vehicles
Accounts Payable

Code

Dr.

Cr

221 xxx
223 xxx
241 xxx
401
xxx

To record the delivery and receipt of PPE per IAR No. __ and
Invoice No, ___ dated _____.

Account Title

Depreciation - Office Equipment


Depreciation - Motor Vehicles
Accum. Depreciation - Office Equipment
Accum. Depreciation - Motor Vehicles

Code

Dr.

Cr

921 xxx
941 xxx
321
xxx
341
xxx

To record depreciation expense for the month of _______

a. Disposal thru sale (less than net book value)


Account Title

Cash in Vault
Accum. Depreciation - Motor Vehicles
Gain/Loss on Sale of Disposed Assets
Motor Vehicles

Code

Dr.

Cr

101 xxx
341 xxx
682
xxx
241
xxx

To record sale of unserviceable motor vehicle at less than net


book value per CRDReg. No. _________

b. Disposal thru sale (above net book value)


Account Title

Cash in Vault
Accum. Depreciation - Motor Vehicles
Gain/Loss on Sale of Disposed Assets
Motor Vehicle

Code

Dr.

Cr

101 xxx
341 xxx
682 xxx
241
xxx

To record sale of unserviceable motor vehicle at less than net


book value per CRDReg. No. _________

c. Disposal thru donation


Account Title

Donations
Accum. Depreciation - Motor Vehicles
Motor Vehicles

Code

Dr.

Cr

878 xxx
341 xxx
241
xxx

To record sale of unserviceable motor vehicle at less than net


book value per CRDReg. No. _________

Account Title

Repairs and Maintenance Office Equipment


Repairs and Maintenance IT Equipment
Repairs and Maintenance Motor Vehicles
Cash in Bank, LCCA

Code

Dr.

Cr

821 xxx
823 xxx
841 xxx
111
xxx

To record payment of repairs and maintenance of PPE per


CkDReg No. (Check No. ______dated ____)

a. Recording of the loss


Account Title

Loss of Assets
Accum. Depreciation - Motor Vehicles
Motor Vehicles

Code

Dr.

Cr

961 xxx
341 xxx
241
xxx

To record loss of motor vehicle (ex. Owner Type Jeepney


SWK722 of the barangay per notice of loss and police report ____
dated _____.

b. Setting up of the accountability of the accountable


officer for loss of motor vehicle
Account Title

Due from Officers and Employees


Other Deferred Credits

Code

Dr.

Cr

123 xxx
455
xxx

To set up the accountability of the accountable officer for the


lost motor vehicle.

c. Receipt of COA Decision granting the AO relief from property


accountability
Account Title

Other Deferred Credits


Due from Officers and Employees

Code

Dr.

Cr

455 xxx
123
xxx

To adjust the journal entry made taking up the accountability of


the accountable officer for the lost motor vehicle based on COA
Decision No. ____ dated granting relief from property
accountability

d. Receipt of COA Decision denying the request of the AO for


relief from property accountability
NO ENTRY

e. Receipt of payment of AO for property lost


Account Title

Cash in Vault
Due from Officers and Employees

Code

Dr.

Cr

101 xxx
123
xxx

To record the receipt of payment for lost motor vehicle per


CRDReg No. ____________
f. Adjustment of account Other Deferred Credits
Account Title

Other Deferred Credits


Miscellaneous Income

Code

Dr.

Cr

455 xxx
678
xxx

To adjust Other Deferred Credits account and recognize


income due to payment by the AO.

PUBLIC
INFRASTRUCTURES
AND
REFORESTATION
PROJECTS

Pubic Infrastructures and


Reforestation Projects

Accounting Policies

1. All costs incurred on the construction of


Public Infrastructures and Reforestation
Projects shall be part of the cost of the
project,
Expenses incurred after the completion shall
be charged to operation

Pubic Infrastructures and


Reforestation Projects

Accounting Policies
2. All projects under construction shall be recorded
under the specific Construction in Progress
Public Infrastructures and Construction in
Progress Reforestation Project accounts.
Upon completion, it shall be transferred to the
specificPublic Infrastructures and Reforestation
Projects accounts

Pubic Infrastructures and


Reforestation Projects

Accounting Policies
3. Completed Public Infrastructures and Reforestation
Projects during the year shall be transferred to the
appropriate Registry of Public Infrastructures and
Reforestation Projects at yearend
4. A separate Registry shall be maintained for each
Public Infrastructures and Reforestation projects to
monitor its status, cost and cumulative cost of
repairs and maintenance
5. All public infrastructures and reforestation projects
are not subject to depreciation

Pubic Infrastructures and


Reforestation Projects

Accounting Policies
6. Repairs and maintenance of public infrastructures
and reforestation projects shall be charged to the
appropriate repairs and maintenance expense
account of the specific projects; and
7. The total cost of each public infrastructures and
reforestation projects shall be disclosed in the
Notes to Financial Statements

Pubic Infrastructures and


Reforestation Projects

4. Transfer of Public Infrastructures and Reforestation Projects to


the Registries at year end
Account Title

Code

Dr.

501
251

xxx

Cr

a. Public Infrastructures
Government equity
Roads, Highways and Bridges

xxx

To record transfer of the completed road to the Registry of


Public Infrastructure Roads, Highways and Bridges at
yearend.

Pubic Infrastructures and


Reforestation Projects

4. Transfer of Public Infrastructures and Reforestation Projects to


the Registries at year end
Account Title

Code

Dr.

501
261

xxx

Cr

b. Reforestation Projects
Government Equity
Reforestation Upland

xxx

To record transfer of the completed reforestation project to


the Registry of Reforestation Projects at yearend.

Pubic Infrastructures and


Reforestation Projects

5. Repairs and Maintenance

Account Title

Code

Dr.

Cr

a. Public Infrastructures
Repairs and Maintenance Roads Highways and
Bridges
Cash in Bank LCCA

851
111

To record the cost of repairs of Barangay roads .

xxx
xxx

Monitoring of Barangay Public


Infrastructures And reforestation Projects

Monitoring of Barangay Public Infrastructures


and Reforestation Projects
To monitor the cost including repair and maintenance
incurred on these projects, separate registries shall be
maintained for each specific public infrastructures and
reforestation projects. The registries shall include, but
are not limited to the following:
1. Registry of Public Infrastructures (RPI) Roads (Appendix 8)
2. Registry of Public Infrastructures (RPI) Bridges
3. Registry of Public Infrastructures (RPI) Parks
4. Registry of Public Infrastructures (RPI) Monuments
5. Registry of Reforestation Projects (RRP) (Appendix 9)

Trial Balance

Trial Balance is a list of all the accounts with


balances in the GL. The accounts shall be listed
following the sequence in the chart of accounts.
The TB is prepared to check the equality of the
debit and credit balances of all GL accounts as of
a given period and to serve as basis for the
preparation of Financial Statements (FS).

Submission of Trial Balance

Trial Balances (TBs) shall be submitted within thirty (30) days


after the close of each month. The yearend Pre-Closing and
Post-Closing TBs shall be submitted on or before February 14
of each year. The Trial Balances shall be prepared in four
copies to be distributed as follows:
Original COA Auditor who has supervision over the
City/Municipality where the barangay is located
2nd copy Sangguniang Barangay
3rd copy PB/BRK
4th copy City/Municipal Accountant

Closing Entries

Closing Entries

1. Income Accounts
2. Expense Accounts
3. Income and Expense Summary

Closing Entries

4. Prior Years Adjustments


5. Retained Operating
Surplus

6. Transfer of PI and RP to
the Registries

Working Trial Balance

Tool for sorting and accumulating


information needed for the
preparation of the financial
statements. It is a columnar sheet
used to adjust and close the account
balances.

Working Trial Balance

Accounts

Unadjusted

Trial
Balance

Balance

A
Title

Adjustments

Code

Dr.

PreClosing
Trial

Dr.

of
Income
and

Cr.

Dr.

Closing
Entries

Expenses

C
Cr.

Statement

Cr.

Dr.

Post Closing
Trial
Balance

Balance

F
Cr.

Dr.

Cr.

Dr.

Cr.

Sheet

Dr

Cr

Financial Statements

Balance Sheet
Statement of Income and Expenses
Statement of Changes in
Government Equity
Statement of Cash Flows

Balance Sheet, Defined

Balance Sheet (BS) is a formal statement


showing the financial condition of the barangay
as of a particular date. It shows information on
the three elements of financial position, namely:
assets, liabilities and government equity. It shall
be prepared based on information taken from the
yearend PostClosing TB. Samples of the BS in
detailed and condensed formats are shown in
Appendices 12 and 13.

Statement of Income and Expenses,


Defined

Statement of Income and Expenses (SIE) is a


statement showing the results of operations of
the barangay for a particular period ended. This
statement shall be prepared based on
information taken from the Pre-Closing TB.
Samples of the detailed and condensed SIE are
shown in Appendices 14 and 15.

Statement of Cash Flows, Defined

Statement of Cash Flows (SCF) is a statement


summarizing all cash transactions of the
barangay. It shall be prepared using the Direct
Method. It shows the amount of cash received
and disbursed for the operating, investing and
financing activities and the net cash provided
by/(used in) each activity as of a given date. The
ending balance of SCF should tally with the cash
balance per BS. A sample of the SCF is shown in
Appendix 16.

Statement of Changes in Government


Equity, Defined

Statement of Changes in Government Equity


(SCGE) shown in Appendix 17 is a statement
showing the result or changes in Government
Equity account as of a given period.

Supporting Schedules

Schedule of Public Infrastructures


Schedule of Reforestation Projects
Schedule of Accounts Receivable
Schedule of Accounts Payable
Other Schedules that may be required

Notes to Financial Statements

Notes to Financial Statements shall be made an


integral part of the FSs. The disclosures pertain
to additional information to enhance the value of
financial data in the FSs. These may explain
information that cannot be expressed in money
terms and description of present accounting
policies.

Distribution of reports

Original - COA Auditor who has supervision


over the City/Municipality where
the barangay is located
2nd Copy - Sangguniang Barangay
3rd Copy - PB/BRK
4th Copy - City/Municipal Accountant

Statement of Management
Responsibility

The FSs shall be supported with the


Statement of Management Responsibility for
the Financial Statements (Appendix 22).

Consolidation of Trial Balance

The City/Municipal Accountant shall prepare the Consolidated


Pre-Closing and Post-Closing Trial Balances of all barangays
under the city/municipality at yearend.

Consolidation of Financial Statements

The City/Municipal Accountant shall consolidate the following


FSs and schedules of all barangays under the city/municipality
at yearend.
a. Detailed and Condensed Balance Sheet
b. Detailed and Condensed Statement of Income and
Expenses
c. Statement of Cash Flows (Direct Method)
d. Statement of Changes in Government Equity
e. Schedule of Infrastructure Projects and Reforestation
Projects (if applicable)
f. Schedule of Accounts Receivable
g. Schedule of Accounts Payable

Submission of Consolidated TBs and FSs.


The City/Municipal Accountant shall submit the
Consolidated TBs and FSs for Barangays together with those of the
City/Municipality to the GAFMIS Sector, Commission on Audit,
Central Office, and COA Auditor/ATL in printed and digital copies
within 60 days after the 31st of December.