Deferred and accrued income and expenses not taken up at year end Basic

Deferred and accrued income and expenses not taken up

This preview shows page 62 - 65 out of 237 pages.

Deferred and accrued income and expenses not taken up at year- end. Basic Features of NGAS for National Governments and Local Government Units National Local a. Accrual Accounting. A modified accrual basis of accounting shall be used. Under this method, all expenses shall be recognized when incurred and reported in the financial statements in the period to which they relate. Income shall be on accrual basis except for transactions where accrual basis is impractical or when other methods are required by law. a. Accrual Accounting. A modified accrual basis of accounting is used. Under this method, all expenses shall be recognized when incurred. Income shall be on accrual basis (e.g. Share from Internal Revenue Collections) except for transactions where accrual basis is impractical (e.g. Market Fees) or when other methods may be required by law. b. One Fund Concept. This system adopts the one fund concept. Separate fund accounting shall be done only when specifically required by law or by a donor agency or when otherwise necessitated by circumstances subject to prior approval of the Commission. b. One Fund Concept. This system adopts the one fund concept. Separate fund accounting shall be done only when specifically required by law or by a donor agency or when otherwise necessitated by circumstances subject to prior approval of the Commission. As required under Sections 308, 309 and 310 of the Local Government Code, separate books shall be maintained for the General Fund, Special Education Fund and Trust Fund. c. Special Accounts in the General Fund. Special accounts in the General Fund
Image of page 62
- 63 - National Local complete with subsidiary ledgers, shall be maintained for the following: 1. Public utilities and other economic enterprises; 2. Loans, interests, bonds issued, and other contributions for specific purposes; 3. Development projects funded from the Share in the Internal Revenue Collections; and 4. Such other special accounts which may be created by law or ordinance. c. Chart of Accounts and Account Codes. A new chart of accounts and coding structure with a three-digit account numbering system shall be adopted. (See Volume III, The Chart of Accounts) d. Chart of Accounts and Account Codes. A new coding structure and a new chart of accounts with a three-digit account numbering system shall be adopted. d. Books of Accounts. All national agencies shall maintain two sets of books, namely: e. Books of Accounts. The Books of Accounts are as follows: Regular Agency (RA) Books. These shall be used to record the receipt and utilization of Notice of Cash Allocation (NCA) and other income/receipts which the agencies are authorized to use and to deposit with Authorized Government Depository Bank (AGDB) and the National Treasury. These shall consist of journals and ledgers, as follows: Journals Journals
Image of page 63
- 64 - National Local Cash Receipts Journal (CRJ) Cash Receipts Journal (CRJ) Cash Disbursements Journal (CDJ) Cash Disbursements Journal (CDJ) Check Disbursements Journal (CkDJ) Check Disbursements Journal (CKDJ) General Journal (GJ) General Journal (GJ) Ledgers Ledgers
Image of page 64
Image of page 65

You've reached the end of your free preview.

Want to read all 237 pages?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes