GOVERNMENT TRANSACTIONS – ILLUSTRATION

DBM, upon approval and issuance of the Agency Budget Matrix (ABM) and the
Special Allotment Release Order (SARO), released the following for USM, including
Notice of Cash Allocations (NCA)

Total
General Appropriation Appropriations Allotments NCA
Personal Services (PS) 200,000 50,000 30,000
Maint. & Other Oper. Expenses (MOOE) 280,000 70,000 40,000
Capital Outlay (CO) 400,000 100,000 80,000
Financial Expenses (FE) 8,000 2,000 1,000

Special Purpose Fund

Capital Outlay (CO) 80,000 20,000 15,000
TOTAL 968,000 242,000 166,000

USM Books:

The following are the registries in the books of USM

1. Registry of Allotments and Obligations-Personal Services (RAOPS)
2. Registry of Allotments and Obligations-Maintenance & Other Operating Expenses
(RAOMO)
3. Registry of Allotments and Obligations-Capital Outlay (RAOCO)
4. Registry of Allotments and Obligations-Financial Expenses (RAOFE)

Registry of Allotments and Obligations

Personal Services (RAOPS)
USM
Sheet No. ______

Account Allotment Obligations

Date Ref P.P.A. Code Received Incurred Balance
50,000 50,000

Registry of Allotments and Obligations

Maintenance & Other Operating Expenses (RAOMO)
USM
Sheet No. ______

Account Allotment Obligations

Date Ref P.P.A. Code Received Incurred Balance
70,000 70,000

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 Registry of Allotments and Obligations
Capital Outlay (RAOCO)
USM
Sheet No. ______

Account Allotment Obligations

Date Ref P.P.A. Code Received Incurred Balance
120,000 120,000

Registry of Allotments and Obligations

Financial Expenses (RAOFE)
USM
Sheet No. ______

Account Allotment Obligations

Date Ref P.P.A. Code Received Incurred Balance
2,000 2,000

The agency shall credit “Cash – National Treasury, MDS” each time a payment is made
charged against the NCA and debit the specific account being paid for, either asset or
expense account. The NCA may be used for the payment of the following types of
transactions:
1. PS
2. MOOE
3. FE
4. Purchase and construction of Fixed Assets (e.g. building & structures, land, land
improvements, equipment, etc. charged against the capital outlay)
5. Miscellaneous transactions (e.g. Cash advances, guaranty deposit, cash to
another agency to implement a project of the agency)

RECEIPT OF NCA
1. Record receipt of NCA
Account
Account Title Code Debit Credit
Cash – National Treasury – MDS 10104040-00 166,000
Subsidy Income from NG 40301010-00 166,000

USM Incurred the following obligations:

Obligations
General Appropriation Incurred
Personal Services (PS) 20,000
Maint. & Other Oper. Expenses (MOOE) 30,000
Capital Outlay (CO) 50,000
Financial Expenses (FE) 500
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 Special Purpose Fund
Capital Outlay (CO) 25,000
TOTAL 125,500

To record the foregoing obligations in the respective Registries of Allotments and

Obligations as follows:

Registry of Allotments and Obligations

Personal Services (RAOPS)
USM
Sheet No. ______

Account Allotment Obligations

Date Ref P.P.A. Code Received Incurred Balance
50,000 50,000
20,000 30,000

Registry of Allotments and Obligations

Maintenance & Other Operating Expenses (RAOMO)
USM
Sheet No. ______

Account Allotment Obligations

Date Ref P.P.A. Code Received Incurred Balance
70,000 70,000
30,000 40,000

Registry of Allotments and Obligations

Capital Outlay (RAOCO)
USM
Sheet No. ______

Account Allotment Obligations

Date Ref P.P.A. Code Received Incurred Balance
120,000 120,000
75,000 45,000

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 Registry of Allotments and Obligations
Financial Expenses (RAOFE)
USM
Sheet No. ______

Account Allotment Obligations

Date Ref P.P.A. Code Received Incurred Balance
2,000 2,000
500 1,500

REGULAR TRANSACTIONS
2. Record entry for the establishment of payroll fund, with assumed deductions:
Account
Account Title Code Debit Credit
Salaries & Wages – Regular Pay 50212990-00 20,000
Due to BIR 20201010-00 2,000
Due to GSIS 20201020-00 1,000
Due to Officers and Employees 20101020-00 17,000

3. Record remittance of withholding tax

Account
Account Title Code Debit Credit
Due to BIR 20201010-00 2,000
Cash – National Treasury – MDS 10104040-00 2,000

4. Record payment of salaries

Account
Account Title Code Debit Credit
Due to Officers and Employees 20101020-00 17,000
Cash – National Treasury – MDS 10104040-00 17,000

NOTE: A cash advance (debited to “Cash Disbursing Officer”) may be made first
if payment is made by the disbursing officer instead of individual check
payment.

5. Record cash advance for travel

Account
Account Title Code Debit Credit
Advances to Officers and Employees 19901040-00 10,000
Cash – National Treasury – MDS 10104040-00 10,000

6. Record liquidation of cash advance for travel, actual expenses is P 9,500.

Account
Account Title Code Debit Credit
Travelling Expenses 50201010-00 9,500
Advances to Officers and Employees 19901040-00 9,500
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7. Record refund of excess cash advance for travel
Account
Account Title Code Debit Credit
Cash – Collecting Officer 10101020-00 500
Advances to Officers and Employees 19901040-00 500

8. Record establishment of Petty Cash Fund (PCF)

Account
Account Title Code Debit Credit
Petty Cash Fund 10102020-00 1,000
Cash – National Treasury – MDS 10104040-00 1,000

9. If no replenishment before the end of the year, assuming supplies of P 600 were paid out of the
PCF, the entry would be
Account
Account Title Code Debit Credit
Office Supplies Expense 50203010-00 600
Petty Cash Fund 10102020-00 600

If replenishment was made in the ensuing year, the entry would be

Account
Account Title Code Debit Credit
Petty Cash Fund 10102020-00 600
Cash – National Treasury – MDS 10104040-00 600

If replenishment was made before the end of the year, the entry would be
Account
Account Title Code Debit Credit
Office Supplies Expense 50203010-00 600
Cash – National Treasury – MDS 10104040-00 600

10. Record payment of office supplies previously obligated

Account
Account Title Code Debit Credit
Office Supplies Inventory 10404010-00 30,000
Due to BIR 20201010-00 3,600
Cash – National Treasury – MDS 10104040-00 26,400

11.Record issuance of office supplies to various offices

Account
Account Title Code Debit Credit
Office Supplies Expense 50203010-00 15,000
Office Supplies Inventory 10404010-00 15,000

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COLLECTIONS
12. Record collections of school fees
Account
Account Title Code Debit Credit
Cash Collecting Officer 19901010-00 1,225,000
Library fee 40202010-02 10,000
Athletic & Cultural Fee 40202010-03 15,000
Tuition Fee 40202010-01 1,200,000

13. Record deposit of collections

Account
Account Title Code Debit Credit
Cash in Bank – Local Currency Current
Account 10102020-24 1,225,000
Cash Collecting Officer 19901010-00 1,225,000

14. Record payment of expenses out of the Trust Fund

Account
Account Title Code Debit Credit
Office Supplies Expense 50203010-00 5,000
Rent Expense 50299050-00 3,000
Printing & Binding Expenses 50299020-00 1,000
Cash in Bank – Local Currency Current
Account 10102020-24 9,000

ADJUSTMENTS
15. Record adjustment for bad debts
Account
Account Title Code Debit Credit
Bad Debts Expense 50503020-00 5,000
Allowance for Bad Debts 10301011-00 5,000

16. Record adjustment for depreciation

Account
Account Title Code Debit Credit
Depreciation Expense – O. Eqpt. 50501050-00 18,000
Accum. Depreciation -. O. Eqpt. 10605021-00 18,000

CLOSING ENTRIES
17. Reversion of the unused Subsidy Income from National Government.
Account
Account Title Code Debit Credit
Subsidy Income from Nat’l Govt. 40301010-00 12,000
Cash – National Treasury, MDS 10104040-00 12,000

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18. Close the balance of all income accounts to Income & Expense Summary Account
Account
Account Title Code Debit Credit
All Income Accounts 5,822,500
Income & Expense Summary 30301010-00 5,822,500

19. Close the balance of all expense accounts to Income & Expense Summary Account
Account
Account Title Code Debit Credit
Income & Expense Summary 30301010-00 5,480,835
All Expense Accounts 5,480,835

20. Close the balance of Income & Expense Summary Account

Account
Account Title Code Debit Credit
Income & Expense Summary 30301010-00 341,665
Revaluation Surplus 30201010-00 341,665

21. Close the balance of Retained Operating Surplus Account

Account
Account Title Code Debit Credit
Revaluation Surplus 30201010-00 341,665
Government Equity 30101010-00 341,665