The

Government
Accounting
Process
Learning
Objectives

1. Record the basic

transactions of
government agency

2
The government accounting
process comprises the activities
of analyzing, recording,
classifying, summarizing and
communicating transactions
involving the receipt and
disposition of government funds
and property, and interpreting the
results thereof. 3
Books of Accounts
and Registries
Journals
▪ General Journal
▪ Cash Receipts Journal
▪ Cash Disbursement Journal
▪ Check Disbursement Journal

Ledger
▪ General Ledger
▪ Subsidiary Ledger
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Registries
▪ Registries of Revenue and Other Receipts (RROR)
▪ Registry of Appropriations and Allotments (RAPAL)
▪ Registries of Allotments, Obligations and
Disbursements (RAOD)
▪ Registries of Budget, Utilization and Disbursment
(RBUD)
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Registries
▪ Registries of Revenue and Other Receipts (RROR)
▪ Registry of Appropriations and Allotments (RAPAL)
▪ Registries of Allotments, Obligations and
Disbursements (RAOD)
▪ Registries of Budget, Utilization and Disburesment
(RBUD)
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OBJECT OF EXPENDITURE
▪ Personal Services (PS)- pertains to all type of
employees benefits.
▪ Maintenance and Other Operating Expenses (MOOE) –
pertains to various operating expenses other than
employees benefits and financial expenses.
▪ Financial Expenses (FE) – pertains to finance cost.
▪ Capital Outlays (CO)- pertains to capitalizable
expenditures
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Obligation Request
and Status (ORS)
▪ Obligations shall be incurred through the issuance of
ORS.
▪ The Requesting Office shall prepare the ORS.
▪ The Head of the Requesting Office shall certify the
necessity and legality of the obligation and the
validity of the supporting documents.
▪ The Head of the Division shall certify the availability
of the allotment 9
BASIC
RECORDINGS

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 Appropriation
Entity A (government agency) receives its GAA Registries Journal
Entry
consisting of the following:
RAPAL NONE

Personnel Services (PS) 100,000

Maintenance and Other Operating Expenses 60,000

Financial Expenses (FE) -

Capital Outlays (CO) 200,000

Total Appropriation for the current year 20xx 360,000

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Allotment
Entity A (government agency) receives its Registries Journal
allotment from the DBM consisting of the Entry
following: RAPAL NONE

RAOD-PS
RAOD-MOOE
Personnel Services (PS) 90,000 RAOD - CO

Maintenance and Other Operating Expenses 40,000

Financial Expenses (FE) -

Capital Outlays (CO) 170,000

Total allotment 300,000

Incurrence of obligation
Entity A enters into the following contracts
1. Personnel Services- Employment contract (job
order) amounting to P70,000
2. Maintenance and operating services – purchase
contract for office supplies worth P25,000
3. Capital Outlays – purchase contract for office
equipment worth P160,000
Notice of Obligation
Request and Status
Adjustment (NORSA)
▪ It is a form used to adjust obligations in the ROAD
and ORS.
▪ The adjustment shall be effected through a positive
entry (addition) or negative entry (reduction), as
appropriate.

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 Disbursement Authority- Notice
of Cash Allocation (NCA)
Entity A receives a Notice of Cash Allocation (NCA) from
the DBM amounting to P200,000 net of tax.

Date Cash- Modified Disbursement System 200,000

(MDS),Regular
Subsidy from National Government 200,000

To recognize receipt of NCA from DBM

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Registries used to monitor NCA
a. Registry of Allotments and Notice o Cash Allocation
(RANCA)- used to determine the amount of
allotment not covered by NCA and to monitor the
available balance of NCA
b. Registry of Allotment and Notice of Transfer of
Allocation (RANTA)- used to determine the amount
of allotments not covered by Notice of Transfer of
Allocation (NTA) and to monitor the available
balance of NTA.
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 Disbursements
Employees have rendered services and are now entitled to compensation.
a. Set up of payable to officers and employees upon approval of payroll.
Salaries and wages 35,000
Salaries and Wages-
Personal Economic Relief 5,000 Regular 35000
Allowance Personal Economic Relief
(PERA)
(PERA) 5000
Gross compensation 40,000
Due to BIR 10000
Withholding Tax (10,000)
Due to GSIS 2000
GSIS (2,000)
Due to Pag-IBIG 2000
Pag-IBIG (2,000)
Due to Philhealth 1000
Philhealth (1,000)
Due to Officers 25000
Total Deductions (15,000) and Employees
Net 25,000 18
 Disbursements
b. Postingof payable to the Section C of the ORS
c. Grant of Cash Advance for payroll
Date Advances for Payroll 25,000
Cash- Modified disbursement System
(MDS), Regular 25,000
To recognize grant of cash
advance for payroll

d. Posting of disbursement to the payment column of Section C of the

ORS and disbursement column of the ROAD.
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e. Liquidation of Payroll Fund

Date Due to Officers and Employees 25,000

Advances for Payroll 25,000

To recognize liquidation of
Payroll Fund

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Entity A remits the P15,000, withheld to the other
government agencies.

Date Due to GSIS 2,000

Due to Pag-IBIG 2,000

Due to Philhealth 1,000

Cash-Modified Disbursement
System (MDS), Regular 5,000
To recognize remittance
to GSIS, Pag_IBIG and Philhealth

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Remittance of Withholding Tax
Tax Remittance Advice (TRA) is used to recognize:
a. In the books of government agencies, the constructive
remittance of taxes withheld to the Bureau of Internal
Revenue (BIR) or customs duties withheld to the Bureau of
Customs (BOC), and the constructive receipt of NCA for
those taxes and duties
b. In the books of the BIR and BOC, the constructive receipt
of tax revenue and customs duties; and
c. In the books of the BTr, the constructive receipt of the
taxes and custom duties remitted.
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Remittance of Withholding Tax
Cash- Tax Remittance Advice 10,000
Subsidy from National Government 10,000
To recognize the constructive
receipt of NCA for TRA.

Due to BIR 10,000

Cash-Tax Remittance Advice 10,000
To recognize the constructive
remittance of taxes withheld to the BIR through TRA
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TRA is recorded by the other government agency as follows:

Books of BIR
Cash-TRA 10,000
Income Tax 10,000
To recognize constructive receipt of taxes remitted by National
Government Agencies (NGAs) through TRA

Subsidy to NGAs 10,000

Cash-TRA 10,000
To recognize constructive receipt of remittance of taxes by
NGAs through TRA
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Collections
▪ PD No. 1445 requires that all collections must be
remitted to the National Treasury, unless another law
specifically allows otherwise.
▪ Collection and remittance are recorded in the Cash
Receipt Journal

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 ▪ Entity A bills revenue of 10,000 for rent income
Date Accounts Receivable 100,000

Rent/Lease Income 100,000

To recognize billing of income

▪ Entity A collects P100,000 from the billed revenue and remits the
collection to the BTr.
Date Cash-Collecting Officers 100,000

Accounts Receivable 100,000

To recognize collection of billed income

Date Cash-Treasury/Agency Deposit, Regular 100,000

Cash-Collecting Officers 100,000

To recognize remittance of income to BTr 27

Reversion of Unused Notice of Cash Allocation (NCA)
Cash – MDS Regular

Receipt of NCA 200,000

25,000 Advances for payroll

5,000 Remittance to GSIS,

Pag-IBIG, Philhealth
170,000 end

Registry & Other Records Journal Entry

RANCA Subsidy from National Government 170,000
Cash-Modified Disbursement
System (MDS), Regular 170,000
To recognize reversion of unused NCA
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 Recording in:
Transaction
Registries & Other Journal and Ledger
Records
Appropriation RAPAL -None
Allotment RAPAL & appropriate - None
RAODs
Incurrence of Obligation ORS & appropriate - None
RAODs
NCA RANCA Cash_MDS, Regular xx
Subsidy from NG xx
Disbursements Updating of ORS and Expense/Asset xx
appropriate RAODs Payable xx

Payable xx
Cash – MDS, Regular xx
 Recording in:
Transaction
Registries & Other Journal and Ledger
Records
Tax Remittance Advice (TRA is used for Updating of ORS and Cash –TRA xx
remittance of taxes withheld) appropriate RAODs Subsidy from NG xx

Due to BIR xx
Cash – TRA xx
Billings, Collections & Remittances RROR, RCD/CRReg (not Accounts Receivable xx
illustrated) Income xx

Cash – CO xx
Accounts Receivable xx

Cash-Treasury/Agency Deposit, regular xx

Cash – CO xx
Revision of Unused NCA RANCA Subsidy from NG xx
Cash –MDS, Regular xx
The Government Accounting Cycle

1.Appropriation
2.Allotment
3.Incurrence of Obligation
4.Disbursement Authority-NCA
5.Disbursements
6.Billings, Collections & Remittance