Accounting for

Disbursements
and Related Transactions
 Definition of Terms
Disbursements

constitute all cash

paid out during a
given period

represent the movement

of cash either from the BTr
or AGDB or from an
authorized disbursing
officer to the final
recipient
Definition of Terms

Disbursements
refer to the settlement of government
payables/obligations by cash or by
check
 Definition of
Terms
Expenditures
Government expenditures include all
charges against the fund of the agency for
personal services, maintenance and other
operating expenses, financial expenses and
property, plant, and equipment and provisions for
retirement of long term obligations.
The charges are both the amounts
actually paid and those incurred and
recorded as liabilities to be paid in the
 Definition of Terms

Expenses

Expenses are the decreases in

economic benefits during an accounting
period in the form of outflows or depletions
of assets or incurrence of liabilities that
results in decreases in equity.
It is a term for a financial transaction
or event resulting in a decrease in assets
(such as cash) or an increase in liabilities (such
as accounts payable) with a corresponding
decrease in owner’s equity.
Basic Requirements Applicable to
All Types of Disbursements
Existence of a lawful and sufficient allotment
and amount duly obligated and certified by the
Budget Officer
Availability of cash certified by the Chief
Accountant

Legality of the transactions and conformity with

existing rules and regulations.

Submission of proper evidence to establish

the claim.

Approval of the disbursement by the Chief of Office

or by his duly authorized representative.
 General Principles:
Ideally, cash should be handled under the
general principles of the Imprest system, to wit:

1. Daily receipts on collections must be deposited

intact with the proper bank.
2. All payments must be made by checks.
3. Only payments in small amounts may be made
through the petty cash fund. Replenishment of
the petty cash fund shall be equal to the total
amount of expenditures made therefrom.
Modes of Disbursements
a. By Check
 MDS checks for disbursements covered
by NCA
MDS Checks – issued by national
government agencies chargeable
against the account of the
Treasurer of the Philippines
maintained with different MDS -
Government Servicing Banks
(GSBs).
Modes of Disbursements
a. By Check
 Commercial checks for
disbursements covered by
income/receipt authorized to be
deposited with AGDBs.
Modes of Disbursements

b. By Cash (thru
Disbursing Officers)

Cash – disbursements out of cash

advances of regular and special
disbursing officers for personal
services, petty expenses and
MOOE for field operating
requirements.
Modes of Disbursements
C. NCAA Disbursements – non-cash
disbursements through JEV by
availing/implementing agency

• Non-Cash Availment Authority Disbursements -

adopted to account for the cash
equivalent of the loan proceeds
availed of through supplier’s
credit/constructive cash.
Modes of Disbursements

d. By Advice to Debit the

Account (ADA)

• Advice to Debit Account – issued by

national government agencies
which serves as notice to the
bank to debit the agency’s MDS
account for payments made for
accounts payable and retirement
gratuity/terminal leave benefits.
Modes of Disbursements

e. By Tax Remittance
Advice (TRA)

• Tax Remittance Advice refers to the

accountable document issued by
NGA to record the remittance of all
taxes withheld to the BIR. The same
document shall be the basis for the
BIR and the BTr to record the tax
collection and deposit in their
respective books of accounts.
Notice of Cash Allocation
The NCA may be used for payment of any
expense classification and for miscellaneous
transactions, as follows:
 Personal Services
 Maintenance and Other Operating Expenses
 Financial Expenses
 Purchase and/or construction of property, plant
and equipment such as building and structures,
land, land improvements, equipment, etc.
charged against Capital Outlay
Notice of Cash Allocation
The NCA may be used for payment of any
expense classification and for miscellaneous
transactions, as follows:
Miscellaneous transactions
- Cash/Fund Transfer to another agency to
implement the project of the same agency
- Guaranty Deposits
- Prepayments
- Cash Advance
 Personal Services

1 Payroll Fund in the hands of a disbursing officer

as cash advance. Payments are made by the DO
in cash to the employees.

2 Payroll Fund deposited in an authorized depository

bank. Withdrawal by the employees is through
the automated teller machine (ATM).

3 Direct payments to employees by individual check.

 Transaction/Explanation Account Title Dr Cr
1. Regular Salaries and Enter obligation in the
Other Allowances RAOPS – P260

1.1 Establishment of the Salaries & Wages –

Payroll Fund Regular Pay
Salaries P180 180
Additional Comp. 50 Additional Compensation 50
PERA 30 PERA 30
Total Due to BIR
P260 20
Less: Due to GSIS 15
W/holding Tax P20 Due to PAG-IBIG 15
GSIS Cont. 15 Due to Officers &
PAG-IBIG Cont 15 50 Employees 210
Net Amount P210
Transaction/Explanation Account Title Dr Cr

1.2 Grant of Cash Cash – Disbursing Officers 210

Advance - P210 Cash-National Treasury, 210
MDS

1.3 Payment of Due to Officers and

Payroll/Liquidation of Employees 210
Cash Advance Cash –Disbursing Officers
210

1.4 Obligations for Enter the Obligation in

Life & Ret. Ins.- RAOPS – P22
Govt. Share - P22
Life & Retirement Ins.
Contributions 22
Due to GSIS 22
Transaction/Explanation Account Title Dr Cr

1.5 Remittance to GSIS Due to GSIS 22

Cash-Natl. Treas., MDS 22

1.6 Issuance of TRA Due to BIR 20

Subsidy Income from NG 20

1.7 Remittance to Due to PAG-IBIG 15

PAG-IBIG Cash-Natl. Treas-MDS 15
 Maintenance and Other Operating Expenses
Asset Method will be followed in recording
disbursements when expenditures apply to more than
just the accounting period.
Examples of these disbursements:
- insurance
- interest
- rent
Perpetual Inventory Method

A method where detailed perpetual inventory records,

in addition to the usual ledger accounts are maintained
for each inventory item, and an inventory control
account is maintained in the GL on a current basis.
Perpetual Inventory Method
 The perpetual inventory record for each item
must provide information for recording
receipts, issues and balances on hand, usually
both in units and pesos amounts. With this
information, the physical quantity and the
valuation of goods on hand at any time are
available from the accounting records.

 Purchase of supplies and materials

for stock, regardless of whether or
not they are consumed within the
accounting period, shall be recorded
as Inventory following the Perpetual
Inventory Method.
Perpetual Inventory Method

 However, supplies and materials purchased for

immediate use or on emergency shall be taken
up as expense.

 Thus, petty cash shall not be used to purchase

supplies for stock.
 Transaction/Explanation Account Title Dr Cr

1 Traveling Expense-Local

1.1 TEV claim Enter obligations in the

RAOMO, P80

1.2 Grant of Cash Due from Officers and 80

Advance for travel - Employees
P80
Cash - Natl. Treas., MDS 80

1.3 Submission of Traveling Expense - Local 80

liquidation report/
documents Due from Officers and
Employees 80
 Transaction/Explanation Account Title Dr Cr

2. Supplies and Materials

- Spare Parts
2.1 Earmarking of fund Based on the OS enter
for PO - purchase of obligation in the
spare parts, P25
RAOMO, P25

2.2 Payment of the spare Spare Parts Inventory 25

parts 2
Due to BIR
Cash - National Treas.
23
-MDS
2.3 Spare parts worth Motor Vehicles
P12 used for repair of Maintenance 12
motor vehicles
Spare Parts Inventory 12
PETTY CASH
FUND
 Typical Transactions for MOOE

Transactions Accounting Entries Acct. Dr. Cr.

Code

3. Petty Cash Petty Cash Fund 104 6,000

Cash in Bank -
Fund
111 6,00
3.1 Set – up of PCF LCCA 0
for miscellaneous
To record
expenses P6,000
3.2Replenishment of set – up Supplies
Office of petty 755 2,500
PCF for following cash
Exp. fund 751 50
expenses Traveling Exp.-
Office Supplies Local
P2,500 823 100
Repairs & Main.-
Transportation IT 771 80
Fare 50 111 2,73
Equip.
Repairs of Equip 0
100 Postage and
LPC air cargo Delivery
 Typical Transactions for MOOE

Transactions Accounting Entries Acct. Dr. Cr.

Code
3.3 Submission of Office Supplies 755 420
PCV at year-end Exp
no cash for Traveling Expense- 751 130
replenishment Local
available 104 580
Petty Cash Fund
Office Supplies
To record
P 450
petty cash expenses
Traveling
3.4 Return of Exp.
unused Cash-Collecting
at year-end 102 5,420
130
PCF by Petty Cash Officers
Total
Custodian who is
580 Petty Cash Fund 104
transferring to 5,42
To record full 0
another branch liquidation of PCF
Official receipt issued for the refund
Petty Cash Fund account is credited upon
retirement, separation, resignation of the
PCF Custodian

Retirement/Separation/Closing of PCF
Office Supplies Expenses xx
Postage and Deliveries xx
Petty Cash Fund xx
 Transaction/ Account Title Dr Cr
Explanation
4.Office Supplies Based on the OS enter
4.1 Earmarking of obligation in the RAOMO.
fund for PO
-purchase of
Office Supplies
4.2 Delivery Office Supplies Inventory 500
Accounts Payable 500
4.3 Payment of Accounts Payable 500
Accounts Payable
Due to BIR 50
Cash - Natl. Treas., MDS 450

4.4 Issuance of Office Supplies Expense 300

office supplies
Office Supplies Inventory 300
 Typical Transactions for MOOE

Transactions Accounting Entries Code Dr Cr

5. General Repair of Building by Administration -

5. 1 Approval of the
repair of the main No entry
building for P100,000
5.2 Issuance of the PO for
building materials:
Posted in the
Lumber, nails, cement,
Registry of Budget
sand and gravel,
and Utilization
paints, etc P60,000
 Typical Transactions for MOOE

Transactions Accounting Entries Code Dr Cr

5. General Repair of Building by Administration -
5.3 Receipt of Construction 168 60,000
construction materials Materials
with the charge Inventory 401 60,000
invoice Accounts Payable
To record the
delivery and
acceptance of
construction materials

5.4 Payment of materials Accounts Payable 401 60,000

delivered Due to BIR 412 1,800
 Typical Transactions for MOOE

Transactions Accounting Entries Code Dr Cr

5. General Repair of Building by Administration -

5.5 Issuance of Repair and

materials Maintenance 811 59,000
P 59,000 – Office Buildings
Construction 168 59,000
Materials
Inventory
To record issuance of
materials to the project
 Typical Transactions for MOOE
Transactions Accounting Entries Code Dr Cr
5. General Repair of Building by Administration -

5.7 Set up of liability Repairs and

Maintenance 811 38,000
– Office Buildings 412 1,140
Due to BIR 439 36,860
Other Payables
To record the labor
component of the
project
5.8 Cash advance Cash–Disbursing 103 36,860
granted to Officers 111 36,860
Disbursing Officer Cash in Bank –
for the payment of LCCA
 Typical Transactions for MOOE

Transactions Accounting Entries Code Dr Cr

5. General Repair of Building by Administration -
5.9 Submission by Other Payables 439 36,860
DO of paid Cash–Disbursing
payroll Officers 103 36,860
To record the
liquidation of the
disbursing officer

5.10 Remittance of Due to BIR 412 1,140

withholding Cash in Bank–
taxes LCCA 111 1,140
To record
 Typical Transactions for MOOE

Transactions Accounting Entries Code Dr Cr

6. Major Repair of Office Equipment

6.1 Signing of Posted in the Registry of
contract for repair Budget and Utilization

6.2 Receipt of bill Repairs and 821 200,00

from the repair Maintenance 0
shop – Office Equipment 401 200,00
Accounts Payable 0
To record the billing of
the repair shop
 Typical Transactions for MOOE
Transactions Accounting Entries Code Dr Cr

6.3 Payment made Accounts Payable 401 200,00

Due to BIR 412 0 6,000
Cash in Bank –
LCCA 111 194,00
To record full 0
payment made to the
repair shop for the
repair of the aircraft
6.4 Remittance of Due to BIR 412 6,000
taxes withheld Cash in Bank –
LCCA 111 6,000
To remit taxes
 Financial Expenses
These are the expenses which are not used in the actual
operation of the agency.
Transaction/Explanation Account Title Dr Cr
1. Bank Charge Enter obligation in the
Upon receipt of bank
statement RAOFE, P3
Bank Charges 3
Cash – NT, MDS
or Cash in Bank, Local 3
Currency, Current Account
2. Interest Expense Enter obligation in the
RAOFE, P4
2.1 Payment of Interest Expense 4
expense Cash – National Treasury,
MDS 4
 Purchase/Construction of Property,
Plant and Equipment

Property, Plant and Equipment are

charged against allotment for capital
outlay. The purchase is immediately
recorded as asset.
Construction Period Theory shall be followed in
recording fixed assets where all expenses
during the construction period shall be
capitalized.
E.g. permits and licenses.
 Purchase/Construction of Property,
Plant and Equipment

Bonus paid to the contractor for

completing the work ahead of schedule
shall be added to the total cost of the
project.
However, liquidated damages
charged to the contractor for delayed
completion should be deducted from
the total cost.
Construction of Building by Contract

Transaction/Explanation Account Title Dr Cr

1. Earmarking of fund Based on the OS enter
prior to the signing
of the Contract - obligation in the RAOCO,
P80 P80

2. Payment of 15% of Advances to Contractors 12

contract amount Cash – National Treasury,
- P12 12
MDS
Construction of Building by Contract

3. Receipt of first Construction in Progress-

billing -50% 40
Agency Assets
accomplishment - P40
Advances to Contractors 6
Accounts Payable 34
4. Payment of 1st Accounts Payable 34
billing
Balance P34 Due to BIR 3
W/holding Tax 3 Other Payables 3
Retention 3 6
Amount due P28 Cash-National Treasury,
28
MDS
Construction of Building by Contract

5. Receipt of 2nd billing Construction in Progress-

- 100 % 40
accomplishment Agency Assets
Advances to Contractors 6
Accounts Payable 34

6. Payment of the bill. Accounts Payable 34

Due to BIR 3
Other Payables 3
Cash-Nat’l. Treas.,MDS 28
 Accounting Forms/Records to be
prepared/maintained for Disbursements
under the NGAS
 Disbursement Voucher/Petty Cash Voucher
 JEV - Journal Entry Voucher
 CkDJ - Check Disbursements Journal
 CDJ - Cash Disbursement Journal
 GJ - General Journal
 RCI - Report of Checks Issued

 RD - Report of Disbursements

 LR - Liquidation Report (for TEV)

 Republic of the Philippines
Commission on Audit

DISBURSEMENT VOUCHER
No.:
MODE OF PAYMENT
MDS Check Commercial Check ADA Others Date:
Payee/Office: TIN/Employee No.: OS/BUS No.:
Date:
Address: Responsibility Center
Title: Code:

Particulars Amount

Amount Due
A Certified: Supporting documents complete and proper B Approved for Payment:
Cash available
Subject to ADA (where applicable)

Signature: Signature:

Printed Name: Printed Name:

Position: Position:
(Head, Accounting Unit/Authorized Representative) (Agency Head/Authorized Representative)

Date: Date:

C Received Payment: D Journal Entry Voucher:

Check/ADA No.: _________
Signature : ________________________ Date: ___________ Date: __________ No: __________
Bank Name: _________________ Date: __________
Printed Name: __________________________________________ OR No./other relevant document
issued:
The DV shall be numbered as follows:

00 - 00 - 00
One Series for
each Year
Serial Number

Month of Issue

Year of Issue
 PETTY CASH VOUCHER
No.:
Agency Name Date:

Payee/Office : Responsibility Center

Address :

I. To be filled up upon request II. To be filled up upon liquidation

Particulars Amount Total Amount Granted
Total Amount Paid per
OR No. _________

Amount Refunded/
(Reimbursed)

A Requested b y: C Received
Refund
Name of Requestor Reimb ursement Paid
Approved b y:

Disbursing Officer
Imm ediate Supervisor
B Paid b y: D
Liquidation Sub mitted:

Disburs ing Officer Reim b ursement Received

Cash Received b y:

Signature over Printed Name of Payee Signature of Payee

Date: _______________ Date: ________________
 Appendix 19
LIQUIDATION REPORT No.
Date
Responsibility Center
(Agency Name)

PARTICULARS Amount

Expenses Incurred

TOTAL AMOUNT SPENT

AMOUNT OF CASH ADVANCE PER DV NO. ___________ DTD. _____________

AMOUNT REFUNDED PER OR NO.__________ DTD. _________

AMOUNT TO BE REIMBURSED

A Certified: Correctness of the B Certified: Purpose of travel/ cash C Certified: Supporting

advance duly accomplished
above data documents complete

and proper

Claimant Immediate Supervisor Head, Accounting Unit JEV No.

 Appendix 36
CHECK DISBURSEMENTS RECORD

Agency

Accountable Officer Official Designation Station

NCA
Check Check s
Date Rec eived/ Bank /NCA
Date Name of Payee Nature of Payment
Deposit Made Is sued Balanc e
No. Released

C E R T I F I C A T I O N

I hereby certify that the foregoing is a correct and complete record of all checks
issued by me in my capacity as ____________________ of ___________________________
______________ during the period from _______________ to _______________, inclusives,
as indicated in the corresponding columns.

___________________________
Name and Signature
________________
Date
For Accountable Officers' Use
AO 6/15/02
 REPORT OF CHECKS ISSUED
_________________________________________________
Agency
Period Covered: ________________
Report No.: ____________
Bank Name/Account No. _________________ Sheet No.: _______________
Check DV No. / Responsibility
Payee Nature of Payment Amount
Date No. Payroll Center Code
123

CERTIFICATION
I hereby certify that this Report of Checks Issued in _________ sheet(s) is a full, true and correct
statement of all checks released by me in payment for obligations for the period stated and
shown in the attached disbursement vouchers.

Appendix 55
AO 6/15/02

Disbursing Officer Date

 CASH DISBURSEMENTS RECORD

Agency

Accountable Officer Official Designation Station

Reference/ Cash Advance
Date Name of Payee Nature of Payment Debit Credit
DV No. Balance

For Accountable Officers' Use

 REPORT OF DISBURSEMENTS

Agency Report No.:_________

Period Covered: Sheet No.: _________

DV/Payroll Responsibility Nature of

Date Payee Amount
No. Center Code Payment

CERTIFICATION
I hereby certify that this Report of Disbursements in _____ sheets is a full, true
and correct statement of the disbursements made by me and that this is in liquidation
of the cash advance granted last ___________ in the amount of P_______________
per Check No. _____________ dated ______________.

Disbursing Officer Date

 JOURNAL ENTRY VOUCHER
No. ____________
Agency Date ___________
ACCOUNTING ENTRIES
Responsibility Account Amount
Accounts and Explanation P
Center Code Debit Credit

TOTAL
Prepared by: Certified Correct
_______________________________________ _______________________________________
Accounting Personnel Head, Accounting Unit
 CHECK DISBURSEMENTS JOURNAL
Agency : __________________________

Month : __________________________
Sheet No.: _______

C REDI T DEBI T
Serial No. of
Checks Name of Disbursing Officer S UND R Y S UNDRY
DATE JEV RCI/DV
No. No. From To Acct. Code P Amount Acct. Code P Amount
21
 CASH DISBURSEMENTS JOURNAL
Agency : __________________________
Month : __________________________
Sheet No.: ______

C REDI T D EBI T

S UNDRY S UNDRY
DATE JEV No. RD No. Name of Disbursing Officer

Acct. Code P Amount P

Acct. Code Amount
 GJ Sheet No. 1
GENERAL JOURNAL
Agency: _________
Month : __________
JEV Account Amount
Date Particulars PR
No. Code Debit Credit
Definition:
Public Properties/infrastructures –

property, plant and equipment for use

of the general public.

roads bridges railways

monuments parks
Accounting Procedures:
1. During construction, public properties shall be
recorded in the Agency books under the account
“Construction in Progress”.

2. Upon completion, the asset and its cost shall be

transferred to the Property, Plant and
Equipment – Public Infrastructures account

3. At the end of the year, the Property, Plant and

Equipment – Public Infrastructures shall be
closed to Government Equity account

4. Public Properties/Infrastructures are not subject

to depreciation.
Registry of Public Infrastructures

 Totaled and ruled at year-end. The

Total amount posted directly to
the Summary.

 Maintained and kept in a

perpetual manner.
Format
Format ofof the
the
Registry
Registry of
of
Public
Public
Infrastructures
Infrastructures
 REGISTRY OF PUBLIC INFRASTRUCTURES
Agency Name

Sheet No.________
Name of Public Infrastructure
Date Ref Description Location Amount
 REGISTRY OF PUBLIC INFRASTRUCTURES
SUMMARY

Agency Name
Sheet No.________
Total Amount of Public Infrastructures
Date Particulars Amount Highways Roads Bridges Sea Walls Buildings
Definition:
Summary
– Used to summarize the cost of public infrastructures
which are recorded in the individual Registry.
– Maintained by Office which does the consolidation.
Ex. a) DPWH Central Office – shall maintain the Summary
of Registry of Public Infrastructures of the
Regional Offices.
DPWH Regional Office – Engineering District

b) DENR Central Office – Regional Offices

DENR Regional Office – all PENROs
 SCHEDULE OF PUBLIC INFRASTRUCTURES
____________________________
Agency Name
As of _______________
Public Infrastructures: Amount
Highways xxx
Roads xxx
Bridges xxx
Buildings xxx
Plaza xxx
Seawalls xxx
Railways xxx
Waterways xxx
Irrigations xxx
Canals xxx
Harbors xxx
Aqueducts xxx
Laterals xxx
Parks xxx
Monuments xxx
Total xxx

Certified Correct:

Chief Accountant
 Financial Statements
Presentation

The total costs of Public

Properties shall be disclosed in the
Notes to Financial Statements.