CHAPTER 3

THE GOVERNMENT ACCOUNTING PROCESS

 THE GOVERNMENT ACCOUNTING
PROCESS

 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.
 It is similar to that of a business entity, except that it
incorporates budgetary controls.
BOOKS OF ACCOUNTS AND REGISTRIES
 BOOKS OF ACCOUNTS AND REGISTRIES

1. JOURNALS
a) General Journal c) Cash Disbursements Journal
b) Cash Receipts Journal d) Check Disbursements Journal
 BOOKS OF ACCOUNTS AND REGISTRIES

2. LEDGERS
a) General Ledgers
b) Subsidiary Ledgers
 BOOKS OF ACCOUNTS AND REGISTRIES

3. REGISTRIES
a) Registries of Revenues and Other Receipts (RROR)
b) Registries of Appropriations and Allotments (RAPAL)
c) Registries of Allotments, Obligations and Disbursements (RAOD)
d) Registries of Budget, Utilization and Disbursements (RBUD)
 Only the Journals and Ledgers are considered accounting records while
the Registries are budget records.
 The accounting unit of the agency maintains the Journals and Ledgers
while budget division of the agency maintains the Registries.
BUDGET REGISTRIES
 BUDGET REGISTRIES

1. Registries of Revenues and Other Receipts (RROR)

- used to monitor the budgeted amounts, actual collections and
remittances of revenue and other receipts.
2. Registries of Appropriations and Allotments (RAPAL)
- used to monitor appropriations and allotments. This is to ensure that
allotments will not exceed appropriations.
3. Registries of Allotments, Obligations and Disbursements (RAOD)
- used to monitor allotments received, obligations incurred against the
corresponding allotment, and the actual disbursements made. This is to
ensure that obligations incurred will not exceed allotments while actual
disbursements will not exceed the obligations incurred.
 Registries of Allotments, Obligations and Disbursements (RAOD)

OBJECT OF EXPENDITURES

A. Personnel Services (PS)

- pertain to all types of employee benefits (eg. salaries, bonuses,
allowances.
B. Maintenance and Other Operating Expenses (MOOE)
- pertain to various operating expenses other than employee benefits
and financial expenses (eg. travel, utilities, supplies)
C. Financial Expenses (FE)
- pertain to finance costs (eg. interest expense, bank charges)
- it also include losses on foreign exchange transactions
 Registries of Allotments, Obligations and Disbursements (RAOD)

OBJECT OF EXPENDITURES

D. Capital Outlays (CO)

- pertain to capitalizable expenditures (expenditures on the
construction of public infrastructures, acquisition costs of equipment.

 Accordingly, the following separate RAODs shall be maintained:

(a) RAOD-PS
(b) RAOD-MOOE
(c) RAOD-FE
(d) RAOD-CO
 BUDGET REGISTRIES

4. Registries of Budget, Utilization and Disbursements (RBUD)

- used to record the approved special budget and the corresponding
utilization and disbursements charged to related income.

 Separate RBUDs are also maintained for each object of expenditure:

(a) RBUD-PS
(b) RBUD-MOOE
(c) RBUD-FE
(d) RBUD-CO
BASIC RECORDINGS
 BASIC RECORDINGS
 APPROPRIATION
Entity A (a government agency) receives its GAA consisting of the
following:

Personnel Services (PS) 100,000

Maintenance and Other Operating Expenses (MOOE) 60,000
Financial Expenses (FE) -
Capital Outlays (CO) 200,000
Total appropriation for the current year 20x1 360,000
 BASIC RECORDINGS
 APPROPRIATION

REGISTRY OF APPROPRIATIONS AND ALLOTMENTS

Entity Name: Entity A

Fund Cluster: Regular Agency Fund

Ref Unreleased
Date Appropriations Allotments
. Appropriations
PS MOOE FE CO TOTAL PS MOOE FE CO TOTAL PS MOOE FE CO TOTAL

1/1x1 GAA 100,000 60,000 - 200,000 360,000

 BASIC RECORDINGS
 ALLOTMENT
Entity A receives its allotment from the DBM consisting of the following:

Personnel Services (PS) 90,000

Maintenance and Other Operating Expenses (MOOE) 40,000
Financial Expenses (FE) -
Capital Outlays (CO) 170,000
Total alllotment 300,000
 BASIC RECORDINGS
 The receipt of the allotment is posted in the Registry of Appropriations
and Allotments (RAPAL) and Registries of Allotments, Obligations and
Disbursements (RAOD).
 RAPAL
REGISTRY OF APPROPRIATIONS AND ALLOTMENTS

Entity Name: Entity A

Fund Cluster: Regular Agency Fund

Ref Unreleased
Date Appropriations Allotments
. Appropriations
PS MOOE FE CO TOTAL PS MOOE FE CO TOTAL PS MOOE FE CO TOTAL

1/1x1 GAA 100K 60K - 200K 360K

1/2/x1 GAARD 90K 40K - 170K 300K 10K 20K - 30K 60K
 BASIC RECORDINGS
 RAODs

REGISTRY OF ALLOTMENTS, OBLIGATIONS AND DISBURSEMENTS

PERSONNEL SERVICES
For the year 20x1

Entity Name: Entity A

Fund Cluster: Regular Agency Fund

Unpaid Obligations
Unobligated
Date Ref. Allotments Obligations Disbursements Not Yet Due
Allotments Due and
and
Demandable
Demandable
1/2/x1 90,000
 BASIC RECORDINGS
 RAODs

REGISTRY OF ALLOTMENTS, OBLIGATIONS AND DISBURSEMENTS

MAINTENANCE AND OTHER OPERATING EXPENSES
For the year 20x1

Entity Name: Entity A

Fund Cluster: Regular Agency Fund

Unpaid Obligations
Unobligated
Date Ref. Allotments Obligations Disbursements Not Yet Due
Allotments Due and
and
Demandable
Demandable
1/2/x1 40,000
 BASIC RECORDINGS
 RAODs

REGISTRY OF ALLOTMENTS, OBLIGATIONS AND DISBURSEMENTS

CAPITAL OUTLAYS
For the year 20x1

Entity Name: Entity A

Fund Cluster: Regular Agency Fund

Unpaid Obligations
Unobligated
Date Ref. Allotments Obligations Disbursements Not Yet Due
Allotments Due and
and
Demandable
Demandable
1/2/x1 170,000
INCURRENCE OF OBLIGATION
 INCURRENCE OF OBLIGATION

 Obligation Request and Status (ORS)

 Obligations shall be incurred through the issuance of Obligation Request

and Status (ORS).
 The Requesting Office shall prepare this document, supported by valid
claim documents like disbursement vouchers.

Entity A enters into the following contracts:

a.Personnel Services - Employment contracts (Job Order) amounting to
₱70,000.
b.Maintenance and Other Operating Services - Purchase contract for office
supplies worth ₱25,000.
c.Capital Outlays - Purchase contract for office equipment worth ₱160,000.
 INCURRENCE OF OBLIGATION

 Obligation Request and Status (ORS)

Only one ORS is presented for the three contracts. Separate ORS
should be prepared for each of them.
 INCURRENCE OF OBLIGATION

 Obligation Request and Status (ORS)

 The “obligations” are recorded in the Registries of Allotments,

Obligations and Disbursements (RAOD)
REGISTRY OF ALLOTMENTS, OBLIGATIONS AND DISBURSEMENTS
PERSONNEL SERVICES
For the year 20x1
Entity Name: Entity A
Fund Cluster: Regular Agency Fund

Unpaid Obligations
Unobligated
Date Ref. Allotments Obligations Disbursements Not Yet Due
Allotments Due and
and
Demandable
Demandable

1/2/x1 90,000
1/3/x1 70,000 20,000 0 0 70,000
 INCURRENCE OF OBLIGATION

 Obligation Request and Status (ORS)

REGISTRY OF ALLOTMENTS, OBLIGATIONS AND DISBURSEMENTS

MAINTENANCE AND OTHER OPERATING EXPENSES
For the year 20x1

Entity Name: Entity A

Fund Cluster: Regular Agency Fund

Unpaid Obligations
Unobligated
Date Ref. Allotments Obligations Disbursements Not Yet Due
Allotments Due and
and
Demandable
Demandable

1/2/x1 40,000
1/3/x1 25,000 15,000 0 0 25,000
 INCURRENCE OF OBLIGATION

 Obligation Request and Status (ORS)

REGISTRY OF ALLOTMENTS, OBLIGATIONS AND DISBURSEMENTS

CAPITAL OUTLAYS
For the year 20x1

Entity Name: Entity A

Fund Cluster: Regular Agency Fund

Unpaid Obligations
Unobligated
Date Ref. Allotments Obligations Disbursements Not Yet Due
Allotments Due and
and
Demandable
Demandable

1/2/x1 170,000
1/3/x1 160,000 10,000 0 0 160,000
 INCURRENCE OF OBLIGATION

 Notice of Obligation Request and Status

Adjustment (NORSA)
 If the obligations recorded in the RAOD and ORS above need to be
adjusted, the subsequent adjustment shall be made through the used of
the Notice of Obligation Request and Status Adjustment (NORSA).
 The recordings are made on the budget registries. Journal entries shall
be made only after:
a) the employees have rendered services
b) the office supplies are delivered and received
c) the office equipment is delivered and received
 “Not Yet Due and Demandable” - the “obligations” recorded in the
registries but not yet in the accounting books.
 INCURRENCE OF OBLIGATION

 Notice of Obligation Request and Status

Adjustment (NORSA)

 The government entities and business entities use the term “obligation”
or the phrase “incurrence of obligation” differently.

Government Entity Business Entity

 Obligation - is an act of a duly  Obligation is another term for liability.
authorized official which binds the
government to the immediate or
eventual payment of a sum of money.
 INCURRENCE OF OBLIGATION

 Disbursement Authority- Notice of Cash

Allocation (NCA)
 Authority issued by the DBM to central, regional and provincial offices
and operating units to cover the cash requirements of the agencies.

Entity A receives Notice of Allocation (NCA) from the DBM amounting to

P200,000, net tax.
Date Cash-Modified Disbursement System (MDS), Regular 200,000
Subsidy from National Government 200,000
To recognize receipt of NCA from DBM
 INCURRENCE OF OBLIGATION

 Disbursement Authority- Notice of Cash

Allocation (NCA)

Registries used to monitor the NCA:

a) Registry of Allotments and Notice of Cash Allocation (RANCA)
- used to determine the amount of allotments not covered by NCA and
to monitor the available balanced 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 Allocation (NTA) and to monitor the available balance of NTA.
 INCURRENCE OF OBLIGATION

 Disbursement Authority- Notice of Cash

Allocation (NCA)
The NCA is posted (recorded) in the RANCA as follows:
REGISTRY OF ALLOTMENTS AND NOTICE OF CASH ALLOCATION
For the period January 20x1

Entity Name: Entity A Fund Cluster: Regular Agency Fund

Sheet Number: 1

AMOUNT
Notice of Cash Allocation Balance
Allotment
Date Ref. Unutilized Unfunded
Received Received Utilized
NCA Allotment
(a) (b) (c) (b-c) (a-b)
1/4/x1 300,000 200,000 - 200,000 100,000
 I. JOURNALS

a) GENERAL JOURNAL
- used to record transactions not recorded in the Special Journals.
Special Journals:
b) CASH RECEIPTS JOURNAL
- used to record the Report of Collection and Deposit and Cash
Receipts Register of collecting officers.
 Report of Collection and Deposit (RCD) - prepared by a collecting officer to
report his/her collections and deposits to an Authorized Government
Depository Bank (AGDB).
 I. JOURNALS

 Cash Receipts Register (CRReg)- used by field officers without a

complete set of books to record their cash collections and deposits in the
books of their mother unit (central/regional/division office).
c) CASH DISBURSEMENTS JOURNAL
- used to record the cash disbursements of the Disbursing Officer.
d) CHECK DISBURSEMENTS JOURNAL
- used to record the check disbursements of the Disbursing Officer.
 II. LEDGERS

a) GENERAL LEDGER
- summarizes all transactions recorded in the journals. Accounts
in the general ledger are arranged according to their sequence in
the Revised Chart of Accounts.
b) SUBSIDIARY LEDGERS
- show details of each control account in the general ledger.
 II. LEDGERS

The journal entry for the NCA is posted to the general ledger as
follows:
GENERAL LEDGER

Entity Name: Entity A Fund Cluster: Regular Agency Fund

Account Title: Cash-Modified Disbursement System (MDS), Regular UACS Object Code: 10104040

Amount
Date Particulars Ref.
Debit Credit Balance
1/4/x1 Receipt of NCA from the DBM JEV No. 1 200,000 200,000
 II. LEDGERS

GENERAL LEDGER

Entity Name: Entity A Fund Cluster: Regular Agency Fund

Account Title: Subsidy from National Government UACS Object Code: 40301010

Amount
Date Particulars Ref.
Debit Credit Balance
1/4/x1 Receipt of NCA from the DBM JEV No. 1 200,000 200,000
 DISBURSEMENTS

 These are the actual amounts spent or paid out of the budgeted
amounts.
 Employees have rendered services and are now entitled to
compensation.
 Journal entries shall be made because the financial statement
elements of the entity are affected, i.e., increase in expenses and
increase in liability/decrease in cash. The recordings are as
follows:
 DISBURSEMENTS
a) Set up of payable to officers and employees upon approval of payroll.
Salaries and Wages 35,000
Personal Economic Relief Allowance (PERA) 5,000
Gross Compensation 40,000
Withholding Tax (10,000)
GSIS (2,000)
Pag-IBIG (2,000)
PhilHealth (1,000)
Total Deductions (15,000)
Net 25,000
 DISBURSEMENTS

Date Salaries and Wages, Regular 35,000

Personal Economic Relief Allowance (PERA) 5,000
Due to BIR 10,000
Due to GSIS 2,000
Due to Pag-IBIG 2,000
Due to PhilHealth 1,000
Due to Officers and Employees 25,000
To recognize payable to officers and employees upon
approval of payroll
 DISBURSEMENTS

b) Posting of payable to the Section C of ORS.

 DISBURSEMENTS

c) Grant of Cash Advance for payroll.

Date Advances for Payroll 25,000
25,000
Cash-Modified Disbursement System (MDS), Regular
To recognize grant of cash advance for payroll.

d) Posting of disbursement to the payment column of Section of C of the ORS and

disbursements column of the RAOD.
 The Section C of the ORS will show the following information:
 DISBURSEMENTS

 The recording in the RAOD-PS is as follows:

REGISTRY OF ALLOTMENTS, OBLIGATIONS AND DISBURSEMENTS
PERSONNEL SERVICES
For the year 20x1
Entity Name: Entity A
Fund Cluster: Regular Agency Fund

Unpaid Obligations
Unobligated
Date Ref. Allotments Obligations Disbursements
Due and
Not Yet Due
Allotments and
Demandable
Demandable
1/2/x1 90,000
1/3/x1 70,000 20,000 25,000 15,000 30,000
 DISBURSEMENTS

e) Liquidation of Payroll Fund

Date Due to Officers and Employees 25,000

25,000
Advances for Payroll
To recognize liquidation of Payroll
Fund
 REMITTANCE OF AMOUNTS WITHHELD

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

The breakdown is re-provided below:
Withholding Tax 10,000
GSIS 2,000
Pag-IBIG 2,000
PhilHealth 1,000
Total Deductions 15,000
 REMITTANCE OF AMOUNTS WITHHELD

 REMITTANCE OF WITHHOLDING TAX

 Tax Remittance Advice (TRA)

The 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 of those taxes and customs 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 customs
duties remitted.
 REMITTANCE OF AMOUNTS WITHHELD

 REMITTANCE OF WITHHOLDING TAX

The remittance of the tax withheld is recorded as follows:

Books of Entity A
Date Cash-Tax Remittance Advice 10,000
Subsidy from National Government 10,000
To recognize the constructive receipt of NCA for
TRA
Date Due to BIR 10,000
Cash-Tax Remittance Advice 10,000
To recognize the constructive remittance of taxes
withheld to the BIR through TRA
 REMITTANCE OF AMOUNTS WITHHELD

 REMITTANCE OF WITHHOLDING TAX

The TRA is recorded by the other government agencies as follows:

Books of BIR Books of BTr

Cash-TRA………...............10,000 Subsidy to NGAs…..…...10,000
Income Tax……..………..........10,000 Cash-TRA……….....................10,000
To recognize constructive To recognize constructive
receipt of taxes remitted by receipt of remittance of taxes by
National Government Agencies NGAs through TRA
(NGAs) through TRA
 REMITTANCE OF AMOUNTS WITHHELD

 REMITTANCE OF GSIS, PAG-IBIG AND

PHILHEALTH

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
The Obligation Request and Status (ORS) and the RAOD-PS are
updated for the payment above.
 BILLINGS, COLLECTIONS & REMITTANCES
a) Entity A bills revenue of P100,000 for rent income.
Date Accounts Receivable 100,000
Rent/Lease Income 100,000
To recognize remittance of income to BTr

b) 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 customer
Date Cash-Treasury/Agency Deposits, Regular 100,000
Cash-Collecting Officers 100,000
To recognize remittance of income to BTr
 BILLINGS, COLLECTIONS & REMITTANCES

P.D. No. 1445 requires that all collections must be remitted to the National
Treasury, unless another law specially allows otherwise.

The billing of revenue is recorded in the General Journal while the

collection and remittance are recorded in the Cash Receipts Journal as
follows:
 REVERSION OF UNUSED NOTICE OF CASH
ALLOCATION (NCA)

Government entities are required to revert any unused NCA at the end of
the accounting period.
The unused NCA is computed as follows:
Cash-Modified Disbursement System (MDS), Regular
Receipts of NCA 200,000
25,000 Advances from payroll remittance
5,000 to GSIS, Pag-IBIG and PhilHealth

170,000 End

Date Subsidy from National Government 170,000

Cash-Modified Disbursement System (MDS), Regular 170,000
To recognize reversion of unused NCA
 SUMMARY OF BASIC RECORDINGS
Recording in:
Transactions
Registries and Other Records Journal and Ledger
a. Appropriation - RAPAL - None
b. Allotment - RAPAL and appropriate RAODs - None
c. Incurrence of Obligations - RS and appropriate RAODs - None
d. NCA - RANCA Cash-MDS, Regular xx
Subsidy from NG xx
e. Disbursement - Updating of ORS and appropriate Expense/Asset xx
RAODs Payable xx

Payable xx
Cash-MDS, Regular xx
f. Tax Remittance Advice - Updating of ORS and appropriate Cash-TRA xx
(TRA is used for remittance of taxes RAODs Subsidy from NG xx
withheld)
Due to BIR xx
Cash-TRA xx
 SUMMARY OF BASIC RECORDINGS

Recording in:
Transactions
Registries and Other Records Journal and Ledger
g. Billings, Collections and - RROR, RCD/CRReg (not illustrated) Accounts Receivable xx
Remittances Cash-CO
xx

Cash-CO xx
Accounts Receivable xx

Cash-Treasury/Agency Deposit,
Regular xx
Cash-CO
xx
h. Reversion of Unused NCA - RANCA Subsidy from NG xx
Cash-MDS, Regular xx
 THE REVISED CHART OF ACCOUNTS

 A chart of accounts is a list of all the accounts used by an entity.

Government entities shall use the account titles and account codes in
the Revised Chart of Accounts (RCA) issued by the COA.
Each account in the RCA is assigned an 8-digit code as follows:
0 00 00 00 0
Account Group
Major Account Group
Sub-Major Account Group
General Ledger Accounts
General Ledger Contra-Accounts
 THE REVISED CHART OF ACCOUNTS
Code Account
Groups
1 Assets
Account Group: Asset
2 Liabilities
3 Equity Major Account Group: Cash and Cash
Equivalent
4 Income
5 Expenses Sub- Major Account Group: Cash on Hand
Example: General Ledger Account: Cash-Collecting
Officers
General Ledger Contra-Account: Not a contra-
account
Cash-Collecting Officers 1 01 01 01 0
(Account Title) (RCA Code)
 LIST OF ACCOUNTS
Account Title RCA Code UACS Object Code
ASSETS
Cash and Cash Equivalents
Cash on Hand
Cash-Collecting Officers 10101010 1010101000
Petty Cash 10101020 1010102000
Cash in Bank- Local Currency
Cash in Bank- Local Currency, Current Account- Banco de Oro (BDO) 10102020 1010202005
Treasury/Agency Cash Accounts
Cash-Treasury/Agency Deposit, Regular 10104010 1010401000
Cash-Modified Disbursement System (MDS), Regular 10104040 1010404000
Cash-Tax Remittance Advice 10104070 1010407000
Cash Equivalents
Treasury Bills 10105010 1010501000

Investments
Financial Assets at Fair Value Through Surplus or Deficit
 LIST OF ACCOUNTS
Account Title RCA Code UACS Object Code
Receivables
Loans and Receivable Accounts
Accounts Receivable 10301010 1030101000
Allowance for Impairment-Accounts Receivable 10301011 1030101100

Inventories
Inventory Held for Sale
Merchandise Inventory 10401010 1040101000
Inventory Held for Consumption
Office Supplies Inventory 10404010 1040401000

Property, Plant and Equipment

Infrastructure Assets
Road Networks 10603010 1060301000
Accumulated Depreciation- Road Networks 10603011 1060301100
Accumulated Impairment Losses- Road Networks 10603012 1060301200
 LIST OF ACCOUNTS
Account Title RCA Code UACS Object Code
Other Assets
Advances
Advances for Payroll 19901020 1990102000
Prepayments 19902020 1990202000
Prepaid Rent

LIABILITIES
Financial Liabilities
Payables
Accounts Payable 20101010 2010101000

Inter-Agency Payables
Due to BIR
20201010 2020101000
NET ASSETS/EQUITY
Government Equity
 LIST OF ACCOUNTS
Account Title RCA Code UACS Object Code
REVENUE
Tax Revenue
Income Tax 40101010 4010101000
Income Tax-Individual 40101010 4010101001
Immigration Tax 40101040 4010104000

Service and Business Income

Service Income
Permit Fees 40201010 4020101000
Registration Fees 40201020 4020102000
Other Service Income 40201990 4020199099

Business Income
Tuition Fees 40202010 4020201001
Power Supply System Fes 40202100 4020210000
Landing and Parking Fees 40202120 4020212000
 LIST OF ACCOUNTS
Account Title RCA Code UACS Object Code
Assistance and Subsidy
Subsidy from National Government 40301010 4030101000

Gains
Gain on Sale of Property, Plant and Equipment 40501040 4050104000

Other Non-Operating Income

Reversal of Impairment Loss
Reversal of Impairment Loss 40602010 4060201000

EXPENSES
Personnel Services
Salaries and Wages
Salaries and Wages-Regular 50101010 5010101000
 LIST OF ACCOUNTS
Account Title RCA Code UACS Object Code
Other Compensation
Personal Economic Relief Allowance (PERA) 50102010 5010201000

Direct Costs
Cost of Sales 50402010 5040201000

Non-Cash Expenses
Depreciation
Depreciation- Buildings and Other Structure 50501040 5050104000
Other Compensation
Personal Economic Relief Allowance (PERA) 50102010 5010201000
 THE GOVERNMENT ACCOUNTING CYCLE
1) Appropriation- is the authorization made by a legislative body to allocate funds for
purposes specified by the legislative or similar authority.
2) Allotment- the authorization issued by DBM that will enable the agency concerned to
incur obligation up to a specified amount within the legislative appropriation.
3) Incurrence of Obligation- refers to the commitment by an agency which binds the
government the eventual payment of sum of money.
4) Disbursement Authority-NCA- this an authorization issued by DBM to government
agencies to withdraw cash from the national treasury thru the issuance of checks or
other authorized mode of payments.
5) Disbursements- are the actual amounts spent or paid out of the budgeted amount.
6) Billings, Collections and Remittances
7) Unadjusted Trial Balance
8) Adjusting Entries
9) Closing Entries
10) Preparation of Financial Statements
 THE GOVERNMENT ACCOUNTING CYCLE
The trial balance of Entity A (a government entity) at the beginning of the period is
shown below:
Accounts Debit Credit
Cash-Collecting Officers 5,000
Accounts Receivable 45,000
Buildings 500,000
Accumulated Depreciation-Buildings 150,000
Office Equipment 150,000
Accumulated Depreciation- Equipment 60,000
Accounts Payable 20,000
Accumulated Surplus (Deficit) 470,000
Totals 700,000 700,000
Notes:
-The P20,000 accounts payable pertains to office supplies purchased in the prior year that were already delivered but not yet
paid.
-An additional purchase of officer supplies worth P5,000 is not yet recorded in the accounting books because they are not
yet delivered. This prior year “obligation” is described in the registries as “Not yet due and demandable obligation.”
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