govt acctg recovered] recovered]
TRANSCRIPT
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GROUPGovt acctg
three
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CHAPTER 8
DECENTRALIZED ACCOUNTING SYSTEM
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Contents Excel link Credits
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contents
Home
TRANSACTIONS/ILLUSTRATIONS
AJE/TB/BAL.SHEET/INCOME STATEMENT
CLOSING ENTRIES/ POST TB/ CONSO. F/S
Intro to Decentralized System of Acctg
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RO and OU of Natl govt
offices have been
established long before the
adoption of IRP.
And to substantiate the
reorganization scheme and
attain decentralization, the
IRP also directed the
delegation of general &
specific powers to the Ros.
Ya! Now lets move on and
know what decentralized
accounting system is.
so how come that thegovernment accounting
system is said to be
decentralized?
Natl government agenciesw/ established regional
acctg offices adopt a HO-
Branch Acctg system known
as the DECENTRALIZED
ACCTG SYSTEM.
Now you know!A complete set of books of
accts are kept & maintained
by the acctg units of RO
&OU to reflect their
financial conditions.
Inter-office transfer of
accounts or reciprocal accts
are used to reflect inter-
office transactions.
These inter-office accounts
are reconciled and
eliminated in the process of
consolidation.
Hi there! do you know that
Decentralization is not a
new innovation in the
government service?
It was the IRP, w/c provided
the rational & uniform
pattern of field
organization.
now you know.:
LETS MOVE ON!
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Regional Accountants are required
to submit the following
accountability reports unlessrevised/amended by guidelines to
be issued by the COA.
Accounting Reportsnext
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�Monthly Trial Balance
�Monthly Report of CashDisbursements
�Monthly Report of Checks
Issued & Cancelled
Monthly Reports
next Monthly
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�Q uarterly Trial Balance
�Q uarterly Statement of Subsidiary Ledger Balances�Statement of Collecting officers Account Balances
�Statement of Disbursing Officers Account Balances
�Statement of Other Officers Balances
Q uarterly Reports
next QUARTERLY
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�Statement of Accounts Payable
�Statement of Accounts Receivable�Detailed Statement of Subsidiary Ledger Balances, except
the Statement of Disbursing Officers Acct Bal, and
Statement of Other Officers Balances of quarterly reporting
Semi-Annual Reports
next Semi-Annual
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�Preliminary Trial Balance (Pre-closing Trial Balance)
�Final Trial Balance
Annual Reports
next Annual
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GENERALLY, the DBM
releases the regional
allotments and other
budgetary releases through
the CO of the dept.
Therefore, the receipts of
funds by the RO and OU
may take two forms.
And as illustrated:
And know lets talk about
ALLOTMENT AND NOTICE
OF CASH ALLOCATION FOR
REGIONAL OFFICE
However, at times it may be
released by the DBM to the
RO of the NGA and
instrumentalities
Allotment and Notice of Cash Allocation
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1. Allotments and Notice of cash allocation directly f rom the DBM:
Illustration: the Regional Office and Operating Unit of Agency A, a national
govt agency, received the following allotments and NCA directly from the
DBM.
ALLOTMENTS (MOOE):Regional Office = 10,000,000
Operating Unit = 4,000,000
NCA:
Regional Office = 8,000,000
Operating Unit = 3,000,000
next
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Date Ref . P.P.A. Account code Allotment
received
Obligation incurred balance
10, 000, 000 10, 000, 000
Books of RO:
Books of OU:
Date Ref . P.P.A. Account code Allotment
received
Obligation incurred balance
4, 000, 000 4, 000, 000
To record receipt of allotment f rom DBM:
next
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To record receipt of NCA
Books of Regional office:
Account title Account code Debit credit
Cash National Treasury, MDS 108 8,000,000
subsidy income from Natl govt. 651 8,000,000
next
Books of Operating Unit:
Account title Account code Debit credit
Cash National Treasury, MDS 108 3,000,000
subsidy income from Natl govt. 651 3,000,000
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2. Transfer of Allotments and funding check f rom the CO/RO in case of the Operating Unit, (known as sub allotments)
next
� Illustration:
the CO of Agency X directly received from the DBM allotment for MOO
E and its corresponding NCA in the amount of P10,000,000 and P8,000,000
respectively. Of these receipts the CO transferred the following to the RO:
Allotments, P5,000,000; NCA, P4,000,000. Likewise, the RO transferred
part of the sub-allotment and NCA to its Operating Unit: allotments,
P2,000,000; NCA, P1,500,000.
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BOOKS OF CENTRAL OFFICE
REGISTRY OF ALLOTMENTS AND OBLIGATIONS
Maintenance and Other Operating Expenses(RAOMO)
AGENCY X Central Office
Date Ref . P.P.A. Account Code Allotment
Received
Obligation
Incurred
Balance
10,000,000 10,000,000
next
To record receipt of allotments f rom DBM
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Account title Account code Debit credit
Cash National Treasury, MDS 108 8,000,000
subsidy income from Natl govt. 651 8,000,000
To record receipt of NCA f rom DBM.
Books of Central Office:
To record transfer of sub-allotment to RO.REGISTRY OF ALLOTMENTS AND OBLIGATIONS
Maintenance and Other Operating Expenses(RAOMO)
AGENCY X Central Office
Date Ref . P.P.A. Account
Code
Allotment
Received
Obligation
Incurred
Balance
10,000,000 10,000,000
(5,000,000) 5,000,000
next
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To record receipt of sub-allotment f rom CO.
REGISTRY OF ALLOTMENTS AND OBLIGATIONS
Maintenance and Other Operating
Expenses(RAOMO)
AGENCY X Regional OfficeDate Ref . P.P.A. Account
Code
Allotment
Received
Obligation
Incurred
Balance
5,000,000 5,000,000
Books of Regional office
next
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Account title Account code Debit credit
Subsidy income to RO 872 4,000,000
Cash-National Treasury, MDS 108 4,000,000
To record transfer of NCA to Regional office.
Books of Central Office:
Account title Account code Debit credit
Cash in Bank Local currency CA 111 4,000,000
subsidy income from Central Office 653 4,000,000
To record receipt of NCA f rom Central Office.
Books of Regional Office:
next
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To record transfer of Letter of Advice of Allotment to OU
REGISTRY OF ALLOTMENTS AND OBLIGATIONS
Maintenance and Other Operating
Expenses(RAOMO)
AGENCY X Regional OfficeDate Ref . P.P.A. Account
Code
Allotment
Received
Obligation
Incurred
Balance
5,000,000 5,000,000
(2,000,000) 3,000,000
Books of Regional office
next
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To record receipt of Letter of Advice of Allotment f rom RO
REGISTRY OF ALLOTMENTS AND OBLIGATIONS
Maintenance and Other Operating
Expenses(RAOMO)
AGENCY X Operating Unit
Date Ref . P.P.A. Account
Code
Allotment
Received
Obligation
Incurred
Balance
2,000,000 2,000,000
Books of Operating Unit
next
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Account title Account code Debit credit
Subsidy to Operating Unit 873 1,500,000
Cash in Bank Local Currency CA 111 1,500,000
To record transfer of subsidy to Operating Unit
Books of Regional Office:
next
To record receipt of subsidy from Regional Office ( Operating Unit Books)
Account Title Acctcode Debit credit
Cash in Bank- Local Currency Current Acct 111 1,500,000
SIRO 654 1,500,000
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Subsidy to RO/OU
Subsidy from CO/RO
Inter-office receivables
Inter-office payables
Under the DECENTRALIZED
ACCTG SYSTEM, the F/S of
the CO, RO, and OU should be CONSOLIDATED
The following accounts are
reconciled and eliminated:
Consolidation of Financial Statements
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Transaction 1: Received the following allotments directly from DBM:
Personal MOOE Cap. Outlay
services
Central Office 250,000 150,000 900,000
Regional Office 200,000 100,000 500,000
Operating Unit 100,000 50,000 350,000
next
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REGISTRY OF ALLOTMENTS AND OBLIGATIONS
Personal Services (RAOPS)
AGENCY ABC Central Office
Date Ref . P.P.A. Account
Code
Allotment
Received
Obligation
Incurred
Balance
250,000 250,000
To record the allotments received in the respective Registry of Allotments and
Obligations.
Books of Central Office:
next
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REGISTRY OF ALLOTMENTS AND OBLIGATIONS
MAINTENANCE AND OTHER OPERTAING
EXPENSES(RAOMO)
AGENCY ABC Central Office
Date Ref . P.P.A. Account
Code
Allotment
Received
Obligation
Incurred
Balance
150,000 150,000
Books of Central Office:
next
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REGISTRY OF ALLOTMENTS AND OBLIGATIONS
CAPITAL OUTLAY(RAOCO)
AGENCY ABC Central Office
Date Ref . P.P.A. Account
Code
Allotment
Received
Obligation
Incurred
Balance
900,000 900,000
Books of Central Office:
next
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Regional Office Books:(RAOPS)
Date Ref PPA Account code Allotment
received
Obligation
incurred
Balance
200,000 200,000
Date Ref PPA Account code Allotment
received
Obligation
incurred
Balance
100,000 100,000
(RAOMO)
next
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(RAOCO)
Books of Operating Unit
(RAOPS)
(RAOMO)
Date Ref PPA Acct code Allotment recvd Obligation incurred balance
500,000 500,000
Date Ref PPA Acct code Allotment recd Obligation incurred Balance
100,000 100,000
Date Ref PPA Acct code Allotment recd Obligation incurred Balance
50,000 50,000
next
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Date Ref PPA Account code Allotment received
Obligation incurred
Balance
350,000 350,000
(RAOCO)
next
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Transaction 2:Received NCA directly from the DBM.
Central Office 1,300,000
Regional Office 800,000
Operating Unit 500,000
To record receipt of NCA.
CO BOOKS
Cash NT,MDS 1,300,000
SING 1,300,000
next
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RO books
Cash NT,MDS 800,000
SING 800,000
Operating Unit books
Cash NT,MDS 500,000SING 500,000
Transaction 3:Release of sub-allotment from CO to RO.
Personal services 100,000
Maintenance and Other Operating Expenses -40,000
Capital Outlay 650,000
next
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RAOCO
To record receipt of sub-allotment from CO.( RO Books)
RAOPS
Date Ref PPA Account code Allotment received Obligation incurred Balance
900,000 900,000
(650,000) 250,000
Date Ref PPA Account code Allotment received Obligation
incurred
Balance
200,000 200,000
100,000 300,000
next
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RAOMO
RAOCO
Date Ref PPA Account code Allotment Received Obligation
incurred
balance
100,000 100,000
40,000 140,000
Date Ref PPA Account code Allotment received Obligation
incurred
balance
500,000 500,000
650,000 1,150,000
next
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Illustration 4:
Release of Letter of Advice of Allotment from RO to Operating unit.
Personal Services 40,000
Maintenance and Other Operating Expenses 15,000
Capita Outlay 400,000
To record transfer of Letter of Advice of Allotment to Operating Unit. (RO Books)
RAOPS
Date Ref PPA Account code Allotment received Obligation
incurred
balance
200,000 200,000
100,000 300,000
(40,000) 260,000
next
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RAOMO
RAOCO
Date Ref PPA Account code Allotment received Obligation
incurred
balance
100,000 100,000
40,000 140,000
(15,000) 125,000
Date Ref PPA Account code Allotment received Obligation incurred balance
500,000 500,000
650,000 1.150,000
400,000 750,000
next
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To record receipt of Letter of Advice of Allotment from RO.(Operating Unit Books)
RAOPS
RAOMO
Date Ref PPA Account code Allotment received Obligation
incurred
balance
100,000 100,00040,000 140,000
Date Ref PPA Account code Allotment received Obligation
incurred
Balance
50,000 50,000
15,000 65,000
next
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RAOCO
Transaction 5:Transfer of subsidy from CO to RO, P790,000.
To record transfer of subsidy to RO. (CO Books)
Subsidy to Regional Office 790,000
Cash NT,MDS 790,000
Date Ref PPA Account code Allotment
received
Obligation
incurred
balance
350,000 350,000
400,000 750,000
next
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Transaction 7:Payment of the ff payrolls through cash disbursing officer.
CO RO OU
Salaries and wages Reg. Pay 125,000 226,000 118,000
Addtl. Compensation 5,000 8,000 4,000PERA 10,000 16,000 3,000
Deductions:
W/holding tax payable 14,000 25,000 13,000
GSIS Payable 6,000 12,000 5,000
Pag-ibig Payable 2,000 3,000 2,000
Net Amount 118,000 210,000 110,000
next
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To record expenses and deductions.
(CO Books)
Salaries and wages regular pay 125,000
Additional Compensation 5,000
PERA 10,000
Due to BIR 14,000
Due to GSIS 6,000
Due to Pag-ibig 2,000
Due to officers and employees 118,000
next
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(RO Books)
Salaries and wages regular 226,000
Additional Compensation 8,000
PERA 16,000
Due to BIR 25,000
Due to GSIS 12,000
Due to Pag-ibig 3,000
Due to officers and employees 210,000
next
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(Operating Unit Books)
Salaries and wages regular 118,000
Additional Compensation 4,000
PERA 8,000
Due to BIR 13,000
Due to GSIS 5,000
Due to Pag-ibig 2,000
Due to officers and employees 110,000
next
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To record the grant of cash advance to disbursing officer .
(CO Books)
Payroll fund 118,000
Cash NT,MDS 118,000
(RO Books)
Payroll fund 210,000
Cash NT,MDS 210,000
(Operating Unit Books)
Payroll fund 110,000Cash NT,MDS 110,000
next
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To record liquidation of cash advance.
(CO Books)
Due to officers and employees 118,000
Payroll fund 118,000
(RO Books)
Due to officers and employees 210,000
Payroll fund 210,000
(Operating Unit Books)
Due to officers and employees 110,000Payroll fund 110,000
next
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Transaction 8:Remittance of the foregoing deductions (no Tax Remittance Advice)
(CO Books)
Due to BIR 14,000
Due to GSIS 6,000Due to Pag-ibig 2,000
Cash NT,MDS 22,000
(RO Books)
Due to BIR 25,000
Due to GSIS 12,000
Due to Pag-ibig 3,000Cash NT,MDS 40,000
next
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Transaction 9: Received the following bills:
Electricity Telephone
Central Office 30,000 10,000
Regional Office 40,000 15,000
Operating Unit 8,000 5,000
BOOKS OF CENTRAL OFFICE
Account Title Account
Code
Debit Credit
Electricity Expense 767 30,000
Telephone Expense - Landline 772 10,000
Accounts Payable 401 40,000
next
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BOOKS OF REGIONAL OFFICE
Account Title Account
Code
Debit Credit
Electricity Expense 767 40,000
Telephone Expense - Landline 772 15,000
Accounts Payable 401 55,000
BOOKS OF OPERATING UNIT
Account Title Account
Code
Debit Credit
Electricity Expense 767 8,000
Telephone Expense - Landline 772 5,000
Accounts Payable 401 13,000
next
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Transaction 10: Payment of foregoing bills:
BOOKS OF CENTRAL OFFICE
Account Title Account Code Debit Credit
Accounts payable 401 40,000
Cash-NT, MDS 108 40,000
BOOKS OF REGIONAL OFFICE Account Title Account Code Debit Credit
Accounts payable 401 55,000
Cash-NT, MDS 108 55,000
BOOKS OF OPERATING UNIT
Account Title Account Code Debit Credit
Accounts payable 401 13,000
Cash in Bank - LCA 111 13,000
next
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Account title Account
code
Debit Credit
Advances to Officers and Employees 148 10,000
Cash NT,MDS 108 10,000
BOOKS OF REGIONAL OFFICE
BOOKS OF OPERATING UNIT
Account title Account
code
Debit Credit
Advances to Officers and Employees 148 12,000
Cash in Bank LCA 111 12,000
next
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Transaction 12:
Liquidation of the foregoing cash advance. Actual travelling expenses: CO P5,000;
RO P8,000; OU P7,000
BOOKS OF CENTRAL OFFICE
Account title Account
code
Debit Credit
Travelling Expenses Local 751 5,000
Advances to Officers and
Employess
148 5,000
next
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BOOKS OF REGIONAL OFFICE
Account title Account
code
Debit Credit
Travelling Expenses Local 751 8,000
Advances to Officers and
Employees
148 8,000
Account title Account
code
Debit Credit
Travelling Expenses Local 751 7,000Advances to Officers and
Employees
148 7,000
BOOKS OF OPERATING UNIT
next
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Transaction 13:
Collection of refund for excess from the foregoing cash advance for travel.
BOOKS OF CENTRAL OFFICE
Account title Account code
Debit Credit
Cash Collecting Officer 102 3,000
Advances to Officers and
Employees
148 3,000
next
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BOOKS OF REGIONAL OFFICE
Account title Account
code
Debit Credit
Cash Collecting Officer 102 2,000
Advances to Officers and
Employees
148 2,000
BOOKS OF OPERATING UNIT
Account title Account
code
Debit Credit
Cash Collecting Officer 102 5,000
Advances to Officers and
Employees
148 5,000
next
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Transaction 14: Deposit of the foregoing collections to the National Treasury.
BOOKS OF CENTRAL OFFICE
Account title Account
code
Debit Credit
SING 651 3,000
Cash Collecting Officer 102 3,000
BOOKS OF REGIONAL OFFICE
Account title Account
code
Debit Credit
SING 651 2,000
Cash Collecting Officer 102 2,000
next
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Account title Account
code
Debit Credit
SING 651 5,000
Cash Collecting Officer 102 5,000
BOOKS OF OPERATING UNIT
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Transaction 15:
Payment of the following rentals: CO P12,000; RO P18,000; OU P10,000
BOOKS OF CENTRAL OFFICE
Account title Account
code
Debit Credit
Prepaid Rent 177 12,000
Cash NT, MDS 108 12,000
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Transaction 16:
Purchase of the following office supplies: Central Office P30,000; Regional Office
P35,000; Operating Unit P20,000
BOOKS OF CENTRAL OFFICE
Account title Account
code
Debit Credit
Office Supplies Inventory 155 30,000
Due BIR 412 3,000
Accounts Payable 401 27,000
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Account title Account
code
Debit Credit
Office Supplies Inventory 155 35,000
Due BIR 412 3,000
Accounts Payable 401 32,000
BOOKS OF REGIONAL OFFICE
BOOKS OF OPERATING UNIT
Account title Account
code
Debit Credit
Office Supplies Inventory 155 20,000
Due BIR 412 2,000
Accounts Payable 401 18,000
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Transaction 17:
Issuance of the following purchase order for the purchase of office equipment: CO
P50,000; RO P135,000; OU P120,000
BOOKS OF CENTRAL OFFICE
REGISTRY OF ALLOTMENTS AND OBLIGATIONSCAPITAL OUTLAY (RAOCO)
AGENCY ABC Central Office
Date Ref . P.P.A. Account Code Allotment
Received
Obligation
Incurred
Balance
900,000 900,000(650,000) 250,000
50,000 200,000
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Date Ref . P.P.A. Account Code Allotment Received
Obligation Incurred
Balance
500,000 500,000
650,000 1,150,000
(400,000) 750,000
135,000 615,000
BOOKS OF REGIONAL OFFICE
REGISTRY OF ALLOTMENTS AND OBLIGATIONS
CAPITAL OUTLAY (RAOCO)
AGENCY ABC Regional Office
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BOOKS OF OPERATING UNIT
REGISTRY OF ALLOTMENTS AND OBLIGATIONS
CAPITAL OUTLAY (RAOCO)
AGENCY ABC Operating Unit
Date Ref . P.P.A. Account Code Allotment
Received
Obligation
Incurred
Balance
350,000 350,000
400,000 750,000
120,000 630,000
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Transaction 18: Received the following office equipment.
BOOKS OF CENTRAL OFFICE Account title Account code Debit Credit
Office Equipment 221 50,000
Due to BIR 412 5,000
Accounts Payable 401 45,000
BOOKS OF REGIONAL OFFICE
Account title Account code Debit Credit
Office Equipment 221 135,000
Due to BIR 412 13,000
Accounts Payable 401 122,000
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Transaction 19:
Payment of the foregoing payables for office supplies and office equipment purchased.
BOOKS OF CENTRAL OFFICE
Account title Account code Debit Credit
Accounts Payable 401 72,000
Cash NT, MDS 108 72,000
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BOOKS OF REGIONAL OFFICE
Account title Account code Debit Credit
Accounts Payable 401 154,000
Cash in Bank LC,CA 111 154,000
BOOKS OF OPERATING UNIT
Account title Account code Debit Credit
Accounts Payable 401 126,000
Cash in Bank L
C,CA 111 126,000
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Transaction 20:
Entered into contracts for the construction of the buildings: CO P200,000; RO
P600,000; OU P500,000
BOOKS OF CENTRAL OFFICE
REGISTRY OF ALLOTMENTS AND OBLIGATIONS
CAPITAL OUTLAY (RAOCO)AGENCY ABC Central Office
Date Ref . P.P.A. Account Code Allotment
Received
Obligation
Incurred
Balance
900,000 900,000
(650,000) 250,000
50,000 200,000
200,000 -
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BOOKS OF REGIONAL OFFICE
REGISTRY OF ALLOTMENTS AND OBLIGATIONS
CAPITAL OUTLAY (RAOCO)
AGENCY ABC Regional Office
Date Ref . P.P.A. Account Code Allotment
Received
Obligation
Incurred
Balance
500,000 500,000
650,000 1,150,000
(400,000) 750,000
135,000 615,000
600,000 15,000
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BOOKS OF OPERATING UNIT
REGISTRY OF ALLOTMENTS AND OBLIGATIONS
CAPITAL OUTLAY (RAOCO)
AGENCY ABC Operating Unit
Date Ref . P.P.A. Account Code Allotment Received
Obligation Incurred
Balance
350,000 350,000
400,000 750,000
120,000 630,000
500,000 130,000
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Transaction 21: Payment of the 15% mobilization fee for the foregoing buildings to be
constructed.
BOOKS OF CENTRAL OFFICE
Account title Account code Debit Credit
Advances to Contractors 181 30,000
Cash NT, MDS 108 30,000
BOOKS OF REGIONAL OFFICE
Account title Account code Debit Credit
Advances to Contractors 181 90,000Cash NT, MDS 108 90,000
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Account title Account code Debit Credit
Advances to Contractors 181 75,000
Cash in Bank LC,CA 111 75,000
BOOKS OF OPERATING UNIT
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Transaction 22:
Received the following first progress billings for the construction of the buildings: CO
P150,000; RO P400,000; OU P300,000
BOOKS OF CENTRAL OFFICE
Account title Account
code
Debit Credit
Construction in Progress Agency Asset 264 150,000
Advances to Contractors 181 30,000
Accounts Payable 401 120,000
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Account title Account
code
Debit Credit
Construction in Progress Agency Asset 264 400,000
Advances to Contractors 181 90,000
Accounts Payable 401 310,000
BOOKS OF REGIONAL OFFICE
BOOKS OF OPERATING UNIT
Account title Account
code
Debit Credit
Construction in Progress Agency Asset 264 300,000
Advances to Contractors 181 75,000
Accounts Payable 401 225,000
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Transaction 23: Payment of the foregoing accounts payable for the first billings.
BOOKS OF CENTRAL OFFICE
Account title Account
code
Debit Credit
Accounts Payable 401 120,000
Due to BIR 412 15,000
Cash NT, MDS 108 105,000
Account title Account
code
Debit Credit
Accounts Payable 401 310,000
Due to BIR 412 40,000
Cash NT, MDS 108 270,000
BOOKS OF REGIONAL OFFICE
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Account title Account
code
Debit Credit
Accounts Payable 401 225,000
Due to BIR 412 30,000
Cash NT, MDS 108 195,000
BOOKS OF OPERATING UNIT
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Transaction 24: Remittance of the foregoing withholding taxes
BOOKS OF CENTRAL OFFICE
BOOKS OF REGIONAL OFFICE
Account title Account code Debit Credit
Due to BIR 412 15,000
Cash NT, MDS 108 15,000
Account title Account code Debit Credit
Due to BIR 412 40,000
Cash NT, MDS 108 40,000
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BOOKS OF OPERATING UNIT
Account title Account code Debit Credit
Due to BIR 412 30,000
Cash in Bank LC,CA 111 30,000
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Account title Account
code
Debit Credit
Office Supplies Expense 755 30,000
Office Supplies Inventory 155 30,000
BOOKS OF REGIONAL OFFICE
BOOKS OF OPERATING UNIT
Account title Account
code
Debit Credit
Office Supplies Expense 755 14,000
Office Supplies Inventory 155 14,000
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Transaction 26:
Received the following final billings for the completion of the buildings being
constructed: Central Office P50,000; Regional Office P200,000; Operating Unit
P200,000.
BOOKS OF CENTRAL OFFICE
Account title Account
code
Debit Credit
Construction in Progress Agency Asset 264 50,000
Accounts Payable 401 50,000
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Account title Account
code
Debit Credit
Construction in Progress Agency Asset 264 200,000
Accounts Payable 401 200,000
BOOKS OF REGIONAL OFFICE
Account title Account
code
Debit Credit
Construction in Progress Agency Asset 264 200,000
Accounts Payable 401 200,000
BOOKS OF OPERATING UNIT
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Transaction 27:
Payment of the foregoing accounts payable for the completion of the buildings.
BOOKS OF CENTRAL OFFICE
Account title Account
code
Debit Credit
Accounts Payable 401 50,000
Due to BIR 412 5,000
Cash NT, MDS 108 45,000
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BOOKS OF REGIONAL OFFICE
Account title Account
code
Debit Credit
Accounts Payable 401 200,000
Due to BIR 412 20,000
Cash in Bank LC,CA 111 180,000
BOOKS OF OPERATING UNIT
Account title Account
code
Debit Credit
Accounts Payable 401 200,000
Due to BIR 412 20,000
Cash NT, MDS 108 180,000
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Transaction 28:
Transfer of Construction in Progress account to Buildings account upon completion of
the construction.
BOOKS OF CENTRAL OFFICE
Account title Account
code
Debit Credit
Office Buildings 211 200,000
Construction in Progress Agency Asset 264 200,000
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Account title Account
code
Debit Credit
Office Buildings 211 600,000
Construction in Progress Agency Asset 264 600,000
BOOKS OF REGIONAL OFFICE
Account title Account
code
Debit Credit
Office Buildings 211 500,000
Construction in Progress Agency Asset 264 500,000
BOOKS OF OPERATING UNIT
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CHAPTER 8
DECENTRALIZED ACCOUNTING SYSTEM
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Contents Excel link Credits
ExitHelpHelp
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Illustration 29: (Adjusting Journal Entries)
Adjustments of prepaid rent to recognize the following actual rent
expenses for the period:
Central Office = 8,000
Regional Office = 15,000A
Operating Units = 7,000
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Account Title Acct. Code Debit Credit
Rent Expense 782 8, 000
Prepaid Rent 177 8, 000
Account Title Acct. Code Debit Credit
Rent Expense 782 15, 000
Prepaid Rent 177 15, 000
Books of Central Office
Books of Regional Office
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Account Title Acct. Code Debit Credit
Rent Expense 782 8, 000
Prepaid Rent 177 8, 000
Books of Operating Unit
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THE END!×