ANNEX O of GAM

Annex O
ILLUSTRATIVE ENTRIES
TRUST RECEIPTS OTHER THAN INTER-AGENCY TRANSFERRED FUNDS
AGENCY BOOKS BTr BOOKS

Transactions Account Account Account
Account
Title Code Debit Credit Code Debit Credit
1) Collection of trust receipts Cash-Collecting Officers 10101010 165,000

Guaranty Deposits 15,000 Guaranty/Security Deposits Payable 20401040 115,000
Performance Bond 100,000 Customers' Deposits Payable 20401050 50,000
Customer's deposits 50,000 To take up collection of
165,000 trust receipts
2) Remittance of collections Cash-Treasury/Agency Deposit, Trust 10104030 165,000 Cash in Bank-Local

to the Bureau of the Treasury Cash-Collecting Officers 10101010 165,000 Currency, Savings Account 10102030 165,000
To recognize remittance of collections Cash-Treasury/Agency Deposit,
to the BTr Trust 10104030 165,000
To recognize deposit of trust
receipts collection of Agency A
3) Request of Notice of Cash

Allocation (NCA) for trust No entry
from the DBM
4) Receipt of NCA for Trust Cash-Modified Disbursement

Guaranty Deposits 10,000 System (MDS), Trust 10104060 90,000
Performance Bond 60,000 Cash-Treasury/Agency Deposit, Trust 10104030 90,000
Customer's deposits 20,000 To recognize receipt of NCA for trust
90,000
5) Disbursements /replenishment Guaranty/Security Deposits Payable 20401040 70,000 Cash-Modified Disbursement

Guaranty Deposits 10,000 Customers' Deposits Payable 20401050 15,000 System (MDS), Trust 10104060 85,000
Performance Bond 60,000 Cash-Modified Disbursement Cash in Bank-Local
Customer's deposits 15,000 System (MDS), Trust 10104060 85,000 Currency, Savings Account 10102030 85,000
85,000 To recognize issuance of MDS checks To recognize replenishment of
negotiated MDS checks
462
Annex O
AGENCY BOOKS BTr BOOKS

Transactions Account Account Account
Account
Title Code Debit Credit Code Debit Credit
6) Lapsing of NCA Cash-Treasury/Agency Deposit, Trust 10104030 5,000

Cash-Modified Disbursement
System (MDS), Trust 10104060 5,000
To recognize adjustment for the lapsed NCA
7) Charging of MDS disbursements Cash-Treasury/Agency

against the Treasury Deposit Deposit, Trust 10104030 85,000
Cash-Modified Disbursement
To recognize MDS trust disbursements
charged to the treasury deposit account
TRIAL BALANCES AGENCY BOOKS BTr BOOKS

Debit Credit Debit Credit
Cash-Treasury/Agency Deposit, Trust 10104030 80,000 Cash in Bank-Local

Guaranty/Security Deposits Payable 20401040 45,000 Currency, Savings Account 10102030 80,000
Customers' Deposits Payable 20401050 35,000 Cash-Treasury/Agency Deposit,
Trust 10104030 80,000
Total 80,000 80,000 Total 80,000 80,000
463
Annex E
TRUST RECEIPTS - INTER-AGENCY TRANSFERRED FUNDS
SOURCE (AGENCY A) REGULAR AGENCY FUND BOOKS IMPLEMENTING AGENCY (Agency B) TRUST FUND BOOKS
Transactions Account Account Account Account
Title Code Debit Credit Title Code Debit Credit
ASSUMPTION: RESEARCH AND DEVELOPMENT WITH PPE COMPONENT
Per MOA, PPE will be donated to the IA after the project completion (beyond one year project)
APPROPRIATIONS, ALLOTMENTS AND OBLIGATIONS
1) Receipt of GAA Posting to the appropriate RAPAL and RAOD
MOOE 200,000
CO 300,000
Total 500,000
2) Receipt of allotment from the DBM Posting to the appropriate RAPAL and RAOD
MOOE 200,000
CO 300,000
Total 500,000
3) Incurrence of obligation Posting of ORS to the appropriate RAOD

MOOE 200,000
CO 300,000
Total 500,000

Allocation (NCA) for trust No entry No entry
from the DBM
5) Receipt of NCA for Trust Cash Modified Disbursement System No entry

MOOE 200,000 (MDS), Regular 10104040 450,000
CO 250,000 Subsidy from National Government 40301010 450,000
Total 450,000 To record receipt of NCA from the
DBM.
6) Transfer of funds to IA-National Due from National Government Agencies 10303010 450,000 Cash - Collecting Officers 10101010 450,000
Government Agency 450,000 Cash - Modified Disbursement System Due to NGAs 20201050 450,000
(MDS), Regular 10104040 450,000
To record transfer of funds to IA

trust receipts.
7) Remittance of collections Cash - Treasury/Agency Deposit, Trust 10104030 450,000 Cash - Treasury/Agency Deposit, Trust 10104030 450,000
to the Bureau of the Treasury 400,000 Cash - Collecting Officers 10101010 450,000 Cash - Collecting Officers 10101010 450,000
To record remittance of collections To record remittance of collections

to the BTr to the BTr
65
Annex E

from the DBM
9) Receipt of NCA for Trust 400,000 Cash - Modified Disbursement

System (MDS), Trust 10104060 450,000
Cash - Treasury/Agency Deposit, Trust 10104030 450,000
To record receipt of NCA for trust
10) Receipt of delivered technical and scientific

equipment 250,000 Technical and Scientific Equipment 10605140 250,000
Accounts Payable 20101010 250,000
To record receipt of equipment
11) Receipt of supplies and materials 75,000 Office Supplies Inventory 10404010 75,000
Accounts Payable 20101010 75,000
To record receipt of supplies and materials
12) Payment of accounts payable/replenishment by BTr Accounts Payable 20101010 325,000

Due to BIR 20201010 17,411
AP for equipment 250,000 Cash - Modified Disbursement
AP for supplies and materials 75,000 System (MDS), Trust 10104060 307,589
325,000
Less: Withholding Tax To record issuance of MDS checks.
1% withholding tax on income 2,902
5% withholding of final tax (V 14,509
Total Taxes 17,411
Net Amount paid 307,589
13) Issuance of supplies and materials Office Supplies Expenses 50203010 67,500
to project end-users 67,500 Office Supplies Inventory 10404010 67,500
To take up issuance of supplies and

materials
14) Payment of research expenses 100,000 Research, Exploration and Development Expenses 50207020 100,000
Cash - Modified Disbursement
System (MDS), Trust 10104060 100,000
To record issuance of MDS checks
66
Annex E
15) Remittance of withholding tax thru TRA
a. Constructive receipt of NCA Cash - Tax Remittance Advice 10104070 17,411
To record constructive receipt of NCA for

b. Remittance of taxes thru TRA remittance of withholding tax thru TRA
Due to BIR 20201010 17,411

Cash - Tax Remittance Advice 10104070 17,411
To record remittance of withholding tax thru TRA
15) Liquidation of IATF

Technical and Scientific Equipment 250,000 Research, Exploration and Development Expenses 50207020 175,000
Research, Exploration and Due from National Government Agencies 10303010 175,000
Development Expenses includin 175,000
supplies To record liquidation of expenses chargeable to IATF
Total 425,000
ADJUSTING ENTRIES
16) Recording of depreciation Depreciation - Machinery and Equipment 50501050 23,750

Assume: estimated life of equipment = 10 years; Accumulated Depreciation - Technical and 23,750
residual value = 5%; and acquisition date = Jan. 5 Scientific Equipment 10605141
([250,000-(250,000 x .05)] ÷ 10 = 23,750)
To record depreciation for the year.
17) Lapsing of NCA Cash - Treasury/Agency Deposit, Trust 10104030 42,411

To record adjustment for the lapsed NCA.
18) Charging of MDS disbursements

against the Treasury Deposit
19) Adjustment for expenses chargeable to Due to NGAs 20201050 191,250

liability (Due to NGA) Office Supplies Expenses 50203010 67,500
Research, Exploration and Development Expenses 50207020 100,000
Depreciation - Machinery and Equipment 50501050 23,750
To record charging of expenses to the Due to NGA account
67
Annex E
PRE CLOSING TRIAL BALANCES SOURCE AGENCY BOOKS AGENCY BOOKS
Due from National Government Agencies 10303010 275,000 Cash - Treasury/Agency Deposit, Trust 10104030 25,000
Subsidy from National Government 40301010 450,000 Office Supplies Inventory 10404010 7,500
Research, Exploration and Development Expenses 50207020 175,000 Technical and Scientific Equipment 10605140 250,000
Accumulated Depreciation - Technical and
Scientific Equipment 10605141 23,750
Due to NGAs 20201050 258,750
Total 450,000 450,000 Total 282,500 282,500
CONSOLIDATED TRIAL BALANCE (Before Elimination) ELIMINATION

Cash in Bank - Local
Currency, Savings Account 10102030 92,411
Cash - Treasury/Agency Deposit, Cash - Treasury/Agency Deposit,
Trust 10104030 25,000 25,000 Trust 10104030 (25,000) (25,000)
Cash - Tax Remittance Advice 10104070 17,411 17,411 Cash - Tax Remittance Advice 10104070 (17,411) (17,411)
Due from National Government Agencies 10303010 275,000 Due from National Government Agencies 10303010 (258,750)
Office Supplies Inventory 10404010 7,500
Technical and Scientific Equipment 10605140 250,000
Due to NGAs 20201050 258,750 Due to NGAs 20201050 (258,750)
Accumulated Surplus/(Deficit) 30101010 500,000
Subsidy from National Government 40301010 450,000 Subsidy from National Government 40301010 (450,000)
Income Tax or 40101010
Business Tax 40103030 17,411
Subsidy to NGAs 50214010 450,000 Subsidy to NGAs 50214010 (450,000)
Total 1,292,321 1,292,321 Total (751,161) (751,161)
CLOSING ENTRIES
19) Closing of revenue Subsidy from National Government 40301010 450,000

Revenue and Expense Summary 30301010 450,000
To record closing of revenue to

Revenue and Expense Summary account
68
Annex E
20) Closing of expenses Revenue and Expense Summary 30301010 175,000
To record closing of expenses to

21) Closing of Revenue and Revenue and Expense Summary 30301010 275,000
Expense Summary account Accumulated Surplus/(Deficit) 30101010 275,000
To record closing of Revenue and

Expense Summary account
22) Closing of Cash TRA
POST CLOSING TRIAL BALANCES SOURCE AGENCY BOOKS AGENCY BOOKS
Due from National Government Agencies 10303010 275,000 Cash - Treasury/Agency Deposit, Trust 10104030 25,000
Accumulated Surplus/(Deficit) 30101010 275,000 Office Supplies Inventory 10404010 7,500
Due to NGAs 20201050 258,750
Total 275,000 275,000 Total 282,500 282,500
YEAR 2 TRANSACTIONS

from the DBM
24) Receipt of NCA for Trust 400,000 Cash - Modified Disbursement

To record receipt of NCA for trust
25) Issuance of supplies and materials Office Supplies Expenses 50203010 7,500
to project end-users 7,500 Office Supplies Inventory 10404010 7,500
To take up issuance of supplies and

materials
69
Annex E
26) Payment of research expenses 25,000 Research, Exploration and Development Expenses 50207020 25,000
To record issuance of MDS checks
27) Final Liquidation of IATF

Research, Exploration and Research, Exploration and Development Expenses 50207020 25,000
Development Expenses 25,000 Due from National Government Agencies 10303010 25,000
To record liquidation of expenses chargeable to IATF
16) Recording of depreciation (6 months) Depreciation - Machinery and Equipment 50501050 11,875
Assume: estimated life of equipment = 10 years; Accumulated Depreciation - Technical and 11,875
residual value = 5%; and acquisition date = Jan. 5 Scientific Equipment 10605141
([250,000-(250,000 x .05)] ÷ 10 ÷ 2= 23,750)
To record depreciation for six months
28) Adjustment for expenses chargeable to Due to NGAs 20201050 44,375

liability (Due to NGA) Office Supplies Expenses 50203010 7,500
Depreciation - Machinery and Equipment 50501050 11,875
To record charging of expenses to the Due to NGA account
29) Transfer of PPE to IA Donations 50299080 214,375 Due to NGAs 20201050 214,375
Research, Exploration and Development Expenses 50207020 35,625 Income from Grants and Donations in Kind 40402020 214,375
Cost 250,000 Due from National Government Agencies 10303010 250,000
Less: Acc. Depn 35,625 To record the transfer of PPE from Source Agency
CA of Equipment 214,375 To record the transfer of PPE to IA
Note: In case the PPE should be turned over to SA, the accounting entry shall be as follows:
Transfer of PPE to IA Technical and Scientific Equipment 10605140 250,000 Due to NGAs 20201050 214,375
Research, Exploration and Development Expenses 50207020 35,625 Accumulated Depreciation - Technical and
Cost 250,000 Accumulated Depreciation - Technical and Scientific Equipment 10605141 35,625
Less: Acc. Depn 35,625 Scientific Equipment 10605141 35,625 Technical and Scientific Equipment 10605140 250,000
CA of Equipment 214,375 Due from National Government Agencies 10303010 250,000
To record the transfer of PPE from Source Agency
To record the transfer of PPE to IA
70
Annex E
TRUST RECEIPTS - INTER-AGENCY TRANSFERRED FUNDS
BTr BOOKS BIR BOOKS

ASSUMPTION: RESEARCH AND DEVELOPMENT WITH PPE COMPONENT
Per MOA, PPE will be donated to the IA after the project completion (beyond one year project)
APPROPRIATIONS, ALLOTMENTS AND OBLIGATIONS
1) Receipt of GAA
MOOE 200,000
CO 300,000
Total 500,000
2) Receipt of allotment from the DBM

MOOE 200,000
CO 300,000
Total 500,000
BTR - Regular Agency Fund
3) Incurrence of obligation Assumption:
MOOE 200,000 Beg. Balance
CO 300,000 Cash in Bank Local Currency,
Total 500,000 Savings Account 10102030 500,000
Allocation (NCA) for trust
from the DBM
5) Receipt of NCA for Trust

MOOE 200,000
CO 250,000
Total 450,000
BTR - Regular Agency Fund BTR - Regular Agency Fund

6) Transfer of funds to IA-National Subsidy to NGAs 50214010 450,000 Subsidy to NGAs 50214010 450,000
Government Agency 450,000 Cash in Bank Local Currency, Cash in Bank Local Currency,
Current Account 10102020 450,000 450,000 Current Account 10102020 450,000 450,000
Cash in Bank Local Currency, Cash in Bank Local Currency,
Savings Account 10102030 450,000 Savings Account 10102030 450,000
To record replenishment of MDS accounts of Agency A To record replenishment of MDS accounts of Agency A
BTR - Trust Fund BTR - Trust Fund

7) Remittance of collections Cash in Bank - Local Cash in Bank - Local
to the Bureau of the Treasury 400,000 Currency, Savings Account 10102030 450,000 Currency, Savings Account 10102030 450,000
Cash - Treasury/Agency Deposit, Cash - Treasury/Agency Deposit,
Trust 10104030 450,000 Trust 10104030 450,000
To record deposit of trust To record deposit of trust
71
Annex E
BTr BOOKS BIR BOOKS
receipts collection of Agency B. receipts collection of Agency B.

from the DBM
9) Receipt of NCA for Trust 400,000
10) Receipt of delivered technical and scientific

equipment 250,000
11) Receipt of supplies and materials 75,000
BTR - Trust Fund BTR - Trust Fund

12) Payment of accounts payable/replenishment by BTrCash - Modified Disbursement Cash - Modified Disbursement
System (MDS), Trust 10104060 307,589 System (MDS), Trust 10104060 307,589
AP for equipment 250,000 Cash in Bank Local Currency, Cash in Bank - Local
AP for supplies and materials 75,000 Current Account 10102020 307,589 307,589 Currency, Savings Account 10102030 307,589
325,000 Cash in Bank - Local
Less: Withholding Tax Currency, Savings Account 10102030 307,589 To record replenishment of
1% withholding tax on income 2,902 negotiated MDS checks.
5% withholding of final tax (V 14,509 To record replenishment of
Total Taxes 17,411 negotiated MDS checks.
Net Amount paid 307,589
13) Issuance of supplies and materials

to project end-users 67,500
14) Payment of research expenses 100,000 BTR - Trust Fund

System (MDS), Trust 10104060 100,000
Cash in Bank Local Currency,
Current Account 10102020 100,000 100,000
72
Annex E
BTr BOOKS BIR BOOKS
To record replenishment of
negotiated MDS checks.
73
Annex E
BTr BOOKS BIR BOOKS
15) Remittance of withholding tax thru TRA
a. Constructive receipt of NCA BTR - Trust Fund
BIR Regular Agency Fund
Cash - Treasury/Agency Deposit,
Trust 10104030 17,411 Cash - Tax Remittance Advice 10104070 17,411
b. Remittance of taxes thru TRA Cash - Tax Remittance Advice 10104070 17,411 Income Tax or 40101010
Business Tax 40103030 17,411
To record responding entry for
remittance of withholding tax thru TRA To record revenue for income thru TRA
15) Liquidation of IATF

Technical and Scientific Equipment 250,000
Research, Exploration and
Development Expenses includin 175,000
supplies
Total 425,000
ADJUSTING ENTRIES
16) Recording of depreciation

Assume: estimated life of equipment = 10 years;
residual value = 5%; and acquisition date = Jan. 5
([250,000-(250,000 x .05)] ÷ 10 = 23,750)
17) Lapsing of NCA
BTR - Trust Fund

18) Charging of MDS disbursements Cash - Treasury/Agency
against the Treasury Deposit Deposit, Trust 10104030 407,589
System (MDS), Trust 10104060 407,589
To record charging of MDS disbursements against treasury deposit.
19) Adjustment for expenses chargeable to

liability (Due to NGA)
74
Annex E
BTr BOOKS BIR BOOKS
PRE CLOSING TRIAL BALANCES BTr BOOKS BIR BOOKS
BTR - Regular Agency Fund BIR - Regular Agency Fund
Cash in Bank - Local Cash - Tax Remittance Advice 10104070 17,411
Currency, Savings Account 10102030 50,000 Income Tax or 40101010
Subsidy to NGAs 50214010 450,000 Business Tax 40103030 17,411
Total 500,000 500,000 Total 17,411 17,411
BTR - Trust Fund

Trust 10104030 25,000
Total 42,411 42,411
CONSOLIDATED TRIAL BALANCE (After Elimination)

Trust 10104030 0
Cash - Tax Remittance Advice 10104070 0
Due from National Government Agencies 10303010 16,250
Office Supplies Inventory 10404010 7,500
Due to NGAs 20201050 0
Subsidy from National Government 40301010 0
Income Tax or 40101010 0
Business Tax 40103030 17,411
Research, Exploration and Development 50207020 175,000
Subsidy to NGAs 50214010 0
Total 541,161 541,161
CLOSING ENTRIES
19) Closing of revenue Income Tax or 40101010

Business Tax 40103030 17,411
Revenue and Expense Summary 30301010 17,411
To record closing to revenue to

75
Annex E
BTr BOOKS BIR BOOKS
20) Closing of expenses Revenue and Expense Summary 30301010 450,000
Subsidy to NGAs 50214010 450,000
To record closing of expenses to

21) Closing of Revenue and Accumulated Surplus/(Deficit) 30101010 450,000 Revenue and Expense Summary 30301010 17,411
Expense Summary account Revenue and Expense Summary 30301010 450,000 Accumulated Surplus/(Deficit) 30101010 17,411
To record closing of Revenue and To record closing of Revenue and

Expense Summary account Expense Summary account
22) Closing of Cash TRA Accumulated Surplus/(Deficit) 30101010 17,411

POST CLOSING TRIAL BALANCES BTr BOOKS BIR BOOKS

Currency, Savings Account 10102030 50,000 none
Total 50,000 50,000 Total 0 0
YEAR 2 TRANSACTIONS

from the DBM
24) Receipt of NCA for Trust 400,000
25) Issuance of supplies and materials

to project end-users 7,500
76
Annex E
BTr BOOKS BIR BOOKS
26) Payment of research expenses 25,000 BTR - Trust Fund
Cash in Bank Local Currency,
Current Account 10102020 25,000 25,000
To record replenishment of
negotiated MDS checks.
27) Final Liquidation of IATF

Research, Exploration and
Development Expenses 25,000
16) Recording of depreciation (6 months)

Assume: estimated life of equipment = 10 years;
residual value = 5%; and acquisition date = Jan. 5
([250,000-(250,000 x .05)] ÷ 10 ÷ 2= 23,750)
28) Adjustment for expenses chargeable to

liability (Due to NGA)
29) Transfer of PPE to IA
Cost 250,000
Less: Acc. Depn 35,625
CA of Equipment 214,375
Note: In case the PPE should be turned over to SA, the accounting entry shall be as follows:
Transfer of PPE to IA
Cost 250,000
Less: Acc. Depn 35,625
CA of Equipment 214,375
77

ANNEX O of GAM

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Annex O

AGENCY BOOKS BTr BOOKS

1) Collection of trust receipts Cash-Collecting Officers 10101010 165,000

2) Remittance of collections Cash-Treasury/Agency Deposit, Trust 10104030 165,000 Cash in Bank-Local

3) Request of Notice of Cash

4) Receipt of NCA for Trust Cash-Modified Disbursement

5) Disbursements /replenishment Guaranty/Security Deposits Payable 20401040 70,000 Cash-Modified Disbursement

AGENCY BOOKS BTr BOOKS

6) Lapsing of NCA Cash-Treasury/Agency Deposit, Trust 10104030 5,000

7) Charging of MDS disbursements Cash-Treasury/Agency

TRIAL BALANCES AGENCY BOOKS BTr BOOKS

Cash-Treasury/Agency Deposit, Trust 10104030 80,000 Cash in Bank-Local

3) Incurrence of obligation Posting of ORS to the appropriate RAOD

4) Request of Notice of Cash

5) Receipt of NCA for Trust Cash Modified Disbursement System No entry

To record transfer of funds to IA

To record remittance of collections To record remittance of collections

8) Request of Notice of Cash

9) Receipt of NCA for Trust 400,000 Cash - Modified Disbursement

To record receipt of NCA for trust

10) Receipt of delivered technical and scientific

To record receipt of equipment

To record receipt of supplies and materials

12) Payment of accounts payable/replenishment by BTr Accounts Payable 20101010 325,000

Net Amount paid 307,589

To take up issuance of supplies and

To record issuance of MDS checks

To record constructive receipt of NCA for

Due to BIR 20201010 17,411

To record remittance of withholding tax thru TRA

15) Liquidation of IATF

16) Recording of depreciation Depreciation - Machinery and Equipment 50501050 23,750

17) Lapsing of NCA Cash - Treasury/Agency Deposit, Trust 10104030 42,411

To record adjustment for the lapsed NCA.

18) Charging of MDS disbursements

19) Adjustment for expenses chargeable to Due to NGAs 20201050 191,250

To record charging of expenses to the Due to NGA account

CONSOLIDATED TRIAL BALANCE (Before Elimination) ELIMINATION

19) Closing of revenue Subsidy from National Government 40301010 450,000

To record closing of revenue to

To record closing of expenses to

To record closing of Revenue and

22) Closing of Cash TRA

POST CLOSING TRIAL BALANCES SOURCE AGENCY BOOKS AGENCY BOOKS

23) Request of Notice of Cash

24) Receipt of NCA for Trust 400,000 Cash - Modified Disbursement

To record receipt of NCA for trust

To take up issuance of supplies and

To record issuance of MDS checks

27) Final Liquidation of IATF

To record liquidation of expenses chargeable to IATF

28) Adjustment for expenses chargeable to Due to NGAs 20201050 44,375

To record charging of expenses to the Due to NGA account

BTr BOOKS BIR BOOKS

2) Receipt of allotment from the DBM

5) Receipt of NCA for Trust

BTR - Regular Agency Fund BTR - Regular Agency Fund

BTR - Trust Fund BTR - Trust Fund

To record deposit of trust To record deposit of trust

8) Request of Notice of Cash

9) Receipt of NCA for Trust 400,000

10) Receipt of delivered technical and scientific

11) Receipt of supplies and materials 75,000

BTR - Trust Fund BTR - Trust Fund