Chapter XIV

Description of Accounts



ASSETS

Cash

Cash on Hand

14.1. Cash - In Local Treasury (1-01-01-010). This account is used to record in the book of barangays the amount of cash in the Local Treasury.

14.2. Petty Cash (1-01-01-020). This account is used to record the amount granted to duly designated Petty Cash Custodian for payment of authorized petty or miscellaneous expenses which cannot be conveniently paid through checks. Credit this account every time there is a change of Petty Cash Custodian, and at year end, for refund and liquidation of cash advance.

Cash in Bank

14.3. Cash in Bank - Local Currency, Current Account (1-01-02-010). This account is used to record deposits of cash with AGDBs .

Investments

14.4. Investment in Time Deposits (1-02-01-010). This account is used to record placement in local currency with AGDBs of excess cash or cash not earmarked for immediate use for a specified period.

Receivables

Receivable Accounts

14.5. Accounts Receivable (1-03-01-010). This account is used to record the amount due from customers arising from regular trade and business transactions. Credit this account upon collection of receivables, transfers or write-off.

14.6. Allowance for Impairment -Accounts Receivable (1-03-01-011). This account is credited upon set-up of provision for losses which may arise from non-collection. Debit this account upon collection of receivables, transfers, reversal of impairment or write-off.

Inter-agency Receivables

14.7. Due from Local Government Units (1-03-02-010). This account is used to record amount of receivable from other local government units (LGUs) for share from LGUs income and other receivables.

Advances

14.8. Advances for Payroll (1-03-03-010). This account is used to record the amount of cash advance granted to regular disbursing officer for payment of salaries, wages, honoraria, allowances and other personnel benefits. Credit this account upon liquidation.

14.9. Advances to Officers and Employees (1-03-03-020). This account is used to record amount advanced to officers and employees for official travel. Credit this account for liquidation of advances.

Other Receivables

14.10. Receivables - Disallowances/Charges (1-03-04-010). This account is used to record the amount of disallowances in audit due from public/private individuals/entities which have become final and executory. Credit this account for settlement of disallowances/charges.

14.11. Due from Officers and Employees (1-03-04-020). This account is used to record amount of claims from agency's Officers and employees for overpayment, cash shortage, loss of assets and other bills issued by the agency. Credit this account for collection of receivables.

14.12. Other Receivables (1-03-04-990). This account is used to record amount due from debtors and other agencies not falling under any of the specific receivable account. Credit this account for payment/liquidation of receivables.

14.1. Allowance for Impairment - Other Receivables (1-03-04-991). This account is credited to reduce the cost/amortized cost/fair value of other receivables due to impairment. Debit this account upon receipt of other receivables, transfers, reversal of impairment loss and write-off.



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