-Remittance to the BTr for

collections of the current year

where the original accounts for
which were paid for with the NCA
received by the agency taken up
as subsidy, from natl. govt shall
be accounted for as a deduction
from the subsidy.
ILLUSTRATION
The disbursing officer of Agency
Z of the national govt was
granted CA for salaries and
wages of regular employees
which resulted to a refund of
P10,000. Also officers and
employees granted CA for travel
refunded to a total amount of
P5,000. These refunds were
appropriately received and
recorded by the collecting officer
with the issuance of OR , and
remitted to the Natl. Treasury.
Assume the total allotments are:
PS, P200,000, and MOOE,
P50,000. Amount obligated are
Salaries and Wages, P30,000,
and Travelling expenses,
P25,000.

To record obligation of travel

expenses
REGISTRY OF ALLOTMENTS AND
OBLIGATIONS
MAINTENANCE AND OTHER
OPERATING EXPENSES (RAOMO)
AGENCY Z

To record issuance of OR for the

refund of salaries
Cash-Collecting
Officer
Adv. for Payroll

REGISTRY OF ALLOTMENTS AND

OBLIGATIONS
PERSONNEL SERVICES (RAOPS)
AGENCY Z

10,0
00
10,0
00

To record issuance of OR for the

refund of travel expense
Cash-Collecting
Officer
Adv. to Off. & Emp.

To record obligation of salaries

and wages

1-01-01010
1-99-01020

1-01-01010
1-99-01040

5,00
0
5,00
0

To adjust/reduce the original

obligation for salaries refund
REGISTRY OF ALLOTMENTS AND
OBLIGATIONS
PERSONNEL SERVICES (RAOPS)
AGENCY Z

To adjust/reduce the original

obligation for travel expense
refund
REGISTRY OF ALLOTMENTS AND
OBLIGATIONS
MAINTENANCE AND OTHER
OPERATING EXPENSES (RAOMO)
AGENCY Z

Case 1: CA was granted during

the current year, journal entry to
record remittance:
Books of Agency Z
Subsidy from NG
Cash-Coll.
Officer

4-03-01010
1-01-01010

15,0
00
15,0
00

ILLUSTRATION:
Based on MOA for a reforestation
project, Agency SA of the
national government made an
inter-agency transfer of fund to
Agency IA. Agency SA issued
check in the amount of P500,000
which was previously obligated
by Agency SA for that purpose.
Upon receipt of the check by
Agency IA, it was remitted to the
BTr. The corresponding NCA was
requested and received by
Agency IA from the DBM.
Accordingly, expenses were paid
by Agency IA and appropriate
report for this project was
submitted to Agency SA.
To record cash transferred to
Agency IA from Agency SA

Books of BTr
Cash in Bank
LC,CA
Other Services
Inc.

of another agency
- collections made by
Implementing Agency(IA) from a
Source Agency (SA) to implement
the latters project shall be
remitted by the IA to the BTr and
request necessary NCA from
DBM.

1-01-02030
4-02-01990

Books of Agency SA

15,0
00
15,0
00

Due from NGA

(IA)
Cash MDS, Reg.

Case 2: CA granted in prior year,

JE to record remittance to BTr:

Acc.
Surplus/Deficit
Cash-Coll.
Officer

3-01-01010
1-01-01010

Due from NGA

(SA)

15,0
00
15,0
00

Inter-Agency Transferred
Funds
-transfer of cash from another
agency to implement the project

500,0
00
500,0
00

Books of Agency IA
Cash MDS, Reg.

Books of Agency Z

1-03-03010
1-01-04040

1-01-04040
2-02-01050

500,0
00
500,0
00

To record remittance to BTr

Books of Agency IA
Due from NGA
(BTr)
Cash Coll. Off

Books of BTr

1-03-03010
1-01-01010

500,0
00
500,0
00

Cash in Bank
LC, CA
Due to NGA
(SA)

1-01-02020
2-02-01050

500,0
00
500,0
00

To record receipt of NCA

shall be criminally liable

-All collections are deposited to
the Natl. Treasury, directly or
through the bank, thus, the
return of the dishonored check to
the collecting officer is made by
the BTr

Books of Agency IA
Cash MDS, Reg
Due from NGA
(BTr)

1-01-04040
1-03-03010

ILLUSTRATION

500,0
00
500,0
00

Books of Agency IA
1-06-02420
1-01-04040

500,0
00
500,0
00

To record submission of report to

Agency SA
Books of Agency IA
Due to NGA (SA)
Land Imp.,
Reforest.

2-02-01050
1-06-02420

500,0
00
500,0
00

Books of Agency SA
Land Imp.,
Reforest.
Due to NGA
(IA)

1-06-02420
1-03-03010

Other Receivable

To record dishonored check

500,0
00

Books of Agency AZ
500,0
00

Dishonored Checks
- collections not accepted by the
bank upon deposit.
- when check drawn in favor of
the government is not acceptable
by the drawee bank for any
reason, the drawer shall continue
to be liable for the amount due
and all penalties resulting from
delayed payment.
- where reason for nonacceptance by the drawee bank
is insufficiency of funds, drawe

Other Receivable
Other Service Inc.

1-03-05990
4-02-01990

3,000
3,000

Books of BTr
Other Service Inc.
Cash in Bank
LC,CA

4-02-01990
1-01-02020

3,000
3,000

NOTE: Whether the dishonored

check pertains to the current or
prior yr, JE to record the advice of
dishonored check would be the
same
To record dishonored check
Books of Agency AZ

3,000
3,000

Books of Agency AZ

Cash Coll. Off.

The Agency AZ of the national

government conducted seminar
for the NGAs. Colln of seminar
fee was appropriately recorded.
Since the agency has an
authority to use collection with
limitation, these collections were
used to pay the expenses
incurred in the seminar, and the
excess in the amount of P25,000
were remitted to the Natl.
Treasury, which included P3000
check issued by a participant.
When deposited in the bank, the
P3000 check was dishonored.
Later, the check was re-deposited
and remitted to the BTr.

1-01-01010
1-03-05990

To record remittance/redeposited dishonored check

Other Service Inc

To record expenses incurred and

paid

Land Imp.,
Reforest.
Cash MDS,
Reg.

Cash Collecting
Off.

4-02-01990
1-01-01010

3,000
3,000

Books of BTr
Cash in Bank
LC, CA
Other Service Inc.

1-01-02020
4-02-01990

3,000
3,000

Performance Bonds
- a trust receipt
- collections from non-income
sources authorizes by law for
specific purposes, which are
collected/received by a govt
officer or agency acting as a
trustee, agent or administrator or
which has been received as
guaranty for the fulfillment of an
obligation and all other
obligations classifies by law or
regulations as trust receipts
- required by the agency from
contractors/suppliers to ensure
performance of contracts, which
may be in form of cash or
certified check or surety.
- if in form of cash or checks,
acknowledged through OR; while
for surety bond, an
acknowledgement receipt with
certain requirements is issued

contractor was required by the

agency to post a performance
bond in the amount of P100,000
in accordance with the existing
rules and regulations, the
performance bond was remitted
to the BTr and released to the
contractor upon completion of
the project.
Case 1: If the performance bond
is in form of cash or certified
check, the following would be
the journal entries in the books of
the agency and the BTr.
To record the receipt of
performance bond
Books of Agency BC
Cash Coll. Off.
Guaranty Sec.
Dep.

1-01-01010
2-04-01040

100,0
00
100,0
00

To record remittance to the BTr

Books of Agency BC
Due from NGA
(BTr)
Cash Coll. Off.

1-03-03010
1-01-01010

100,0
00

1-01-02030
2-02-01050

100,0
00

100,0
00

Books of BTr
Cash in Bank
LC, CA
Due to NGA

100,0
00

To record receipt of NCA

Books of Agency BC
Cash MDS, Reg
Due from NGA
(BTr)

ILLUSTRATION

Books of BTr

The Agency BC of the national

government contracted a
construction company to
construct a building. The

Due to NGA
Cash in Bank
LC, CA

1-01-01010
1-03-03010

100,0
00

2-02-01050
1-01-02030

100,0
00

100,0
00

100,0
00

To record release of performance

bond upon completion of the

project

is in form of surety bond, the

following would be the journal
entries in the books of the
agency.

Books of Agency BC
Guaranty Sec.
Dep.
Cash MDS,
Reg

2-04-01040
1-01-04040

100,0
00
100,0
00

Case 2: If the performance bond

To record the receipt of

performance bond

Books of Agency BC
Guar. Deposits
Guaranty Sec.
Dep. P.

1-99-03020
2-04-01040

Books of Agency BC
100,0
00
100,0
00

To record release of performance

bond upon completion of the
project

Guaranty Sec.
Dep.
Guar.
Deposits

2-04-01040
1-99-03020

100,0
00
100,0
00