5.3.2 Infrastructure Assets


a. Construction of infrastructure project by contract


(1) Receipt of progress billing from contractor

Account Title Dr. Cr.

Construction in Progress
Accounts Payable
Due to BIR
xx



xx
xx

To record receipt of the first progress billing



(2) Payment of accounts payable to contractor per progress billing

Account Title Dr. Cr.

Accounts Payable
Cash in Bank - LCCA
xx


xx

To record payment for the first billing of the contractor per progress billing



(3) Remittance of taxes withheld

Account Title Dr. Cr.

Due to BIR
Cash in Bank - LCCA
xx


xx

To record remittance of taxes withheld



b. Construction of infrastructure project by Administration


(1) Procurement of construction materials

Account Title Dr. Cr.

Construction Materials Inventory
Due to BIR
Cash in Bank- LCCA
xx



xx
xx

To record purchase of construction materials



(2) Issuance of construction materials

Account Title Dr. Cr.

Construction in Progress
Construction Materials Inventory
xx


xx

To record issuance of construction materials.



(3) Payment of labor payroll thru cash advance

Account Title Dr. Cr.

Construction in Progress
Advances for Payroll
Due to BIR
xx



xx
xx

To record payment of labor thru the disbursing officer



(4) Transfer of completed projects to appropriate assets account

Account Title Dr. Cr.

Buildings
Construction in Progress
xx


xx

To record completion and acceptance of Barangay hall



(5) Repairs and Maintenance

Account Title Dr. Cr.

Repairs and Maintenance- Buildings
Cash in Bank - LCCA
xx


xx

To record the cost of repairs of Barangay hall



Back | Chapter VI

| Table of Contents | Home |