Some journal entries we will use in the study of Government Accounting

TRANSACTION JOURNAL ENTRY

Sales on account Accounts Receivable xx
Sales Revenue xx
Collection of accounts Cash-Collecting Officers xx
receivable Accounts Receivable xx
Receipt of NCA (regular) Cash-MDS, Regular xx
Subsidy from National Government xx
Receipt of NCA (special) Cash-MDS, Special Account xx
Cash-Treasury/Agency Deposit, Special Account xx
Remittance to the BTr Cash-Treasury/Agency Deposit, Regular xx
Cash-Collecting Officers xx
Grant of cash advance for Advances to Officers and Employees xx
travel Cash-MDS, Regular xx
Liquidation of cash Traveling expenses-local xx
advance for local travel Advances to Officers and Employees xx
Grant of cash advance for Advances to Officers and Employees xx
training abroad Training Expenses xx
Cash-MDS, Regular xx
Liquidation of cash Traveling expenses-foreign xx
advance for training abroad Advances to Officers and Employees xx
Purchase of inventories Merchandise Inventory xx
Cash-MDS, Regular xx
Sale of merchandise - Cash-Collecting Officers xx
Perpetual Sales Discounts xx
Sales Revenue xx
#
Cost of Sales xx
Merchandise Inventory xx
For PPE transactions that will be included in quizzes/major exams, I will provide the chart of
accounts (there’s just too many to illustrate, you know your PPE transactions anyway, and it’s
just a matter of choosing the correct account title )

Property, Plant and Equipment and corresponding estimated useful life

Land Improvements Over the useful life of the asset to which the
improvement was made or the useful life of the
improvement if significantly shorter
Infrastructure Assets 20-50 years
Buildings and Other Structures 30-50 years
Machinery and Equipment 5-15 years
Transportation Equipment:
Motor vehicles 5-15 years
Motor vehicles (Military vehicles) 3-20 years
Trains 10-20 years
 Aircrafts and Aircrafts Ground Equipment
Watercrafts
Furniture, Fixtures and Books
Leased Assets, excluding Land
Leased Assets Improvements
Service Concession Assets
Other PPE
10-20 years
10-25 years
2-15 years
Over the useful life of the leased asset or the
lease term, whichever is shorter. The lease
term would include any renewal option periods
where extension of the lease is expected.
Over the useful life of the improvement or the
lease term, whichever is shorter. The lease
term would include any renewal option periods
where extension of the lease is expected.
Over the useful life of the service concession
asset or the term of the service concession
arrangement, whichever is shorter. The term of
the service concession arrangement would
include any renewal option periods where
extension of the service concession
arrangement is expected.
2-15 years

Service Concession Arrangements: Grantor

Financial Liability Model (for Road Networks only)

*for other types of Service Concession Arrangements, I will provide an excerpt of the chart of
accounts

TRANSACTION JOURNAL ENTRY

Recognition of Service Service Concession-Road Networks xx
Concession Asset Service Concession Arrangements Payable xx
Recognize Finance Interest Expenses xx
Charges prior to payment Service Concession Arrangements Payable xx
Payment of liabilities Service Concession Arrangements Payable xx
Cash-MDS, Regular xx
Depreciation Depreciation-Service Concession xx
Accumulated Depreciation-Service Concession- xx
Road Networks

Grant of Right to the Operator Model

TRANSACTION JOURNAL ENTRY

Recognize construction/ Service Concession-Road Networks xx
upgrade made by operator Deferred Service Concession Revenue xx
Recognize the revenue Deferred Service Concession Revenue xx
earned by the operator Service Concession Revenue xx

bit.ly/GAMsummarynotes