NGAS Manual for
National Government Agencies
CHAPTER 1. INTRODUCTION
Sec. 1. Definition. The Chart of Accounts provides the framework within which the accounting records are constructed. It is defined as a list of general ledger accounts consisting of real and nominal accounts.
Sec. 2. Rationale. The Chart of Accounts is prescribed for use by all national government agencies and local government units. The descriptions of all the accounts and the instructions as to when these are to be debited and credited are provided to achieve uniformity in the recording of government financial transactions.
Sec. 3. Elements of Financial Statements. Elements of financial statements of government agencies are those elements that relate to the status or measurement of financial position and measurement of performance of government agencies, which are relevant to decisions that would require the commitment of resources. Those elements directly related to the measurement of financial position as shown in the Balance Sheet are assets, liabilities and equity. The elements directly related to the measurement of performance which are shown in the Statement of Income and Expenses are revenue/income and expenses. The definitions of the different elements are as follows:
Sec. 4. Balance Sheet Accounts. The balance sheet accounts consist of assets, liabilities and equity. These are classified into the following:
Sec. 5. Revenue/Income and Expense Accounts. The revenue/income and expenses consist of the following:
Sec. 6. Classification of Revenue/Income. The revenue/ income accounts are classified into:
Income realized/collected for which the agency is authorized to use but required to be remitted to the National Treasury shall be recorded under the Regular Agency (RA) books. A receivable account, Due from National Treasury, shall be debited upon remittance to the account of the Treasurer of the Philippines and the same account shall be credited upon receipt of the Notice of Cash Allocation issued by the DBM. At the end of the year, the income account shall be closed to the Income and Expense Summary account. Likewise, income collected and deposited under the agencies’ accounts with AGDBs, as authorized, shall be recorded in the RA books.
Those income realized/collected for the National Government (NG) and for which the agency is not authorized to use shall be recorded under the NG books maintained by the agency. A liability account, Due to National Treasury, shall be set up upon accrual/collection and the same account shall be debited upon remittance to the National Treasury.
The illustrative accounting entries relative to the use of the income accounts and related receivable/payable account are shown in Chapter 7, Volume I of the Manual.
Sec. 7. Classification of Expenses. The expense accounts are classified into:
Sec. 8. Intermediate Accounts. These are accounts which are closed ultimately to the Government Equity account at the end of the accounting period. These include Cost of Goods Sold, Income and Expense Summary, Prior Years’ Adjustments, Retained Operating Surplus, Subsidy to Regional Offices/Staff Bureaus and Subsidy to Operating Units, among others.
Sec. 9. Account Codes. The Chart of Accounts consists of three-digit codes grouped as follows:
General Information About COA
| Rules and Regulations
For your comments or suggestions about this website,