5.3 Illustrative Accounting Entries


5.3.1 General Disbursement


a. Disbursements by checks

Account Title Dr. Cr.

Asset/Expense account
Due to BIR
Cash in Bank-Local Currency Current Account (LCCA)
xx



xx
xx

To record payment of expenses/acquisition of assets



b. Grant of Cash Advance for payroll

Account Title Dr. Cr.

Advances for Payroll
Cash in Bank-LCCA
xx

xx

To record the grant of cash advance for payroll



c. Liquidation of cash advance for payroll

Account Title Dr. Cr.

Salaries and Wages
Honoraria
Advances for Payroll
Due to BIR
xx
xx




xx
xx

To record payment of salaries and honoraria to officers and employees



d. Grant of Cash Advance for travel

Account Title Dr. Cr.

Advances to Officers and Employees
Cash in Bank-LCCA
xx

xx

To record the grant of cash advance for travel



e. Liquidation of cash advance for travel

Account Title Dr. Cr.

Travelling Expenses - Local
Advances to Officers and Employees
xx


xx

To record the liquidation of cash advance for travel



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