Notice of Transfer and Release of Liability2

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Notice of Transfer and Release of Liability2 Powered By Docstoc
					                                                                                                                                                                                                                    Annex A


ILLUSTRATIVE ACCOUNTING ENTRIES
Fiscal year 2002 and January to June 2003 transactions of Central and Regional Offices
  Conversion and Remittance of the Cash Balance in accordance with NBC 488

                                                                                                    Central Office                                                              Regional Office
                                 Particulars                                                                         Account                                                                      Account
                                                                                    Account Title                                                               Account Title
                                                                                                                      Code     Debit    Credit                                                     Code     Debit    Credit
Fiscal Year 2002

1.   Receipt of allotment - P10,000.00                               Enter in allotment column of the RAOs

2.   Release of sub-allotment to RO - P10,000.00                     Enter in allotment column of the RAOs (negative)                            Enter in allotment column of the RAOs

3.   Receipt of NCA by CO                                            Cash-National Treasury, MDS              102              10,000
                                                                      Subsidy Income from National Government 601                       10,000

4.   Release of funding check to RO                                  Subsidy to Regional Offices/Staff Bureaus        538      10,000            Cash in Bank-Local Currency, CA                   110      10,000
                                                                      Cash-National Treasury, MDS                     102               10,000    Subsidy from Central Office                      602                10,000

5.   Incurrence of obligation - P7,000.00                                                                                                        Enter in obligation column of the RAOs

6.   Setting of liability for expenses                                                                                                           Expenses                                         801-958    7,000
                                                                                                                                                  Accounts Payable                                  401                7,000


7.   Payment of expenses                                                                                                                         Accounts Payable                                  401       6,000
                                                                                                                                                  Cash in Bank-Local Currency, CA                  110                 6,000

8.   Year-end closing entries
     8.1 Cash pertaining to unobligated balance of allotment of RO   Due from Regional Offices/Staff Bureaus          136       3,000            Subsidy from Central Office                       602       3,000
                                                                      Subsidy to Regional Offices/Staff Bureaus       538                3,000    Due to Central Office                            435                 3,000

     8.2 Income of CO and RO                                         Subsidy Income from National Government          601      10,000            Subsidy from Central Office                       602       7,000
                                                                      Income and Expense Summary                      532               10,000    Income and Expense Summary                       532                 7,000

     8.3 Subsidy to RO from CO and Expense of RO                     Income and Expense Summary                       532       7,000            Income and Expense Summary                         532      7,000
                                                                       Subsidy to Regional Offices/Staff Bureaus      538                7,000     Expenses                                       801-958              7,000

     8.4 Income and Expense Summary                                  Income and Expense Summary                       532       3,000
                                                                       Retained Operating Surplus                     534                3,000
                                                                                                                                                                                                           Annex A


                                                                                           Central Office                                                              Regional Office
                               Particulars                                                                  Account                                                                      Account
                                                                           Account Title                                                               Account Title
                                                                                                             Code     Debit    Credit                                                     Code     Debit    Credit

     8.5 Retained Operating Surplus                         Retained Operating Surplus                       534       3,000
                                                             Government Equity                               501                3,000


December 31, 2002 BALANCES:                                 Due from Regional Offices/Staff Bureaus          136       3,000            Cash in Bank-Local Currency, CA                   110       4,000
                                                             Government Equity                               501                3,000    Due to Central Office                            435                 3,000
                                                                                                                                         Accounts Payable                                 401                 1,000

                                                                                                                       3,000    3,000                                                               4,000     4,000
December 31, 2002 BALANCES converted to                     Due from Regional Offices/Staff Bureaus          142       3,000          Cash in Bank-Local Currency, CA                     111       4,000
    Revised Chart of Accounts:                               Government Equity                               501                3,000 Due to Central Office                               421                 3,000
                                                                                                                                       Accounts Payable                                   401                 1,000
                                                                                                                       6,000    6,000                                                               4,000     4,000

Fiscal Year 2003

1.   Receipt of allotment - P20,000.00                      Enter in allotment column of the RAOs

2.   Release of sub-allotment to RO - P20,000.00            Enter in allotment column of the RAOs (negative)                            Enter in allotment column of the RAOs

3.   Receipt of NCA by CO                                   Cash-National Treasury, MDS              108              20,000
                                                             Subsidy Income from National Government 651                       20,000

4.   Release of funding check to RO                15,000   Subsidy to Regional Offices/Staff Bureaus        872      15,000            Cash in Bank-Local Currency, CA                   111      15,000
                                                             Cash-National Treasury, MDS                     108               15,000    Subsidy from Central Office                      653                15,000

5.   Incurrence of obligation - P12,000.00                                                                                              Enter in obligation column of the RAOs

6.   Setting up of liability for expenses                                                                                               Expenses                                         701-999 12,000
                                                                                                                                         Accounts Payable                                  401               12,000

7.   Payment of expenses                                                                                                                Accounts Payable                                  401       7,000
                                                                                                                                         Cash in Bank-Local Currency, CA                  111                 7,000
                                                                                                                                                                                                           Annex A


                                                                                                    Central Office                                                             Regional Office
                               Particulars                                                                           Account                                                            Account
                                                                                    Account Title                                                              Account Title
                                                                                                                      Code     Debit    Credit                                           Code          Debit   Credit
8.   Receipt of cash bond                                                                                                                        Cash-Collecting Officers                 102            500
                                                                                                                                                  Performance/Bidders/Bail Bonds Payable 427                      500

9.   Deposit of cash bond to Authorized Government Depository Bank                                                                               Cash in Bank-Local Currency, CA                 111    500
                                                                                                                                                  Cash-Collecting Officers                       102              500

Balances as of June 30, 2003                                         Cash-National Treasury, MDS                      108       5,000         Cash in Bank-Local Currency, CA          111   12,500
                                                                     Due from Regional Offices/Staff Bureaus          142       3,000         Expenses                               701-999 12,000
                                                                     Subsidy to Regional Offices/Staff Bureaus        872      15,000          Accounts Payable                        401                      6,000
                                                                      Government Equity                               501                3,000 Due to Central Office                   421                      3,000
                                                                      Subsidy Income from National Government         651               20,000 Subsidy from Central Office             653                     15,000
                                                                                                                               23,000   23,000 Performance/Bidders/Bail Bonds Payable 427                         500
                                                                                                                                                                                             24,500            24,500

10. Remittance of cash balance to National Treasury                                                                                              Due to Central Office                           421   3,000
                                                                                                                                                 Subsidy from Central Office                     653   8,000
                                                                                                                                                 Prior Years' Adjustment                         684   1,000
                                                                                                                                                 Due from National Treasury                      131     500
                                                                                                                                                   Cash in Bank-Local Currency, CA               111           12,500


11. Upon receipt of JEV from RO                                      Prior Years' Adjustments                         684       3,000
                                                                     Subsidy Income from National Government          651       8,000
                                                                       Due from Regional Offices/Staff Bureaus        142                3,000
                                                                       Subsidy to Regional Offices/Staff Bureaus      872                8,000
ILLUSTRATIVE ACCOUNTING ENTRIES                                                                                                                                                                 Annex B
Receipt of Notice of Cash Allocation by Central Office and Transfer to Operating Unit thru Notice of Transfer of Allocation (NTA) per NBC 488 dated May 22, 2003

                                                            Central Office                                         Regional Office                                           Operating Units
              Particulars                                          Account                                                Account                                                     Account
                                         Account Title                                               Account Title                                             Account Title
                                                                     Code    Debit   Credit                                 Code     Debit   Credit                                     Code     Debit    Credit
1. Receipt of NCA from DBM       Cash -National Treasury,
                                   MDS                              108      100
                                  Subsidy Income from
                                   National Government              651               100

2. Transfer of Allocation from   Subsidy Income from                                          Cash -National Treasury,
   Central Office to Regional      National Government              651       70                MDS                         108       70
   Office thru NTA                Cash -National Treasury,                                     Subsidy Income from
                                   MDS                              108               70        National Government         651               70

3. Transfer of Allocation from                                                                Subsidy Income from                                     Cash -National Treasury,
   RO to OU thru NTA                                                                            National Government         651       40                MDS                            108        40
                                                                                               Cash -National Treasury,                                Subsidy Income from
                                                                                                MDS                         108               40        National Government            651                 40
                                                                                                              Annex C



        PROCEDURAL FLOW FOR THE RELEASE OF ALLOTMENT AND NOTICE OF CASH ALLOCATION (NCA)
                             AND NOTICE OF TRANSFER OF ALLOCATION
                                                                                           Authorized Govt.
                              DBM - CO/RO   Agency - CO/RO/SB      Agency - RO/SB/OU   Depository Bank (AGDB)


1. Release of allotment to                        Records
  Agency CO/RO/SB             Issues ABM/        allotment
                                 SARO            in RAOs




2. Release of sub-allotment                       Records                Records
   to Agency RO/SB/OU                             negative              allotment
                                                 allotment              in RAOs
                                                 in RAOs
                                                                                        Receives NCA and
                                                                                        credit the account
                               Issues          Prepares JEV to                          of the CO/RO/SB
3. Issuance of NCA                             record the NCA
                                NCA
                                                   received


                                                                                             Notifies
                                                Issues NTA              Prepares         RO/OU that the
4. Issuance of Notice of
   Transfer of Allocation
                                                     to                  JEV to               NTA is
    (NTA) to RO/OU                              RO/SB/OU               record the       received/available
                                                                          NTA           for disbursements


                                            Requests the bank to
                                             transfer the cash
                                               allocation to
                                                RO/SB/OU

				
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