CH.
7 Miscellaneous Transactions
MISCELLANEOUS TRANSACTIONS
Unique transaction types and not recurring
in ordinary course of government
operations
Transaction seldom happens
Examples:
1. Loss on Cash and Property
2. Request for relief from accountability
3. Cash Overage
4. Stale MDS and commercial checks
5. Set-up and settlement disallowances
6. Refund of overpayments
Accounting for Loss of Cash and Property
Cash shortage
o Due to: malversation, robbery, theft,
fire, etc.
o Reported by auditors in Report of
Cash Examination
Property shortage
o Due to:
Established as a result of audit (from
audit report) - auditor issues a
memorandum pertaining thereto;
and accountant to record the
shortage as a receivable (Due from
Officers and Employees)
concerned in the Journal Entry
Voucher (JEV).
Other causes like theft, force
majeure, fire, etc - the accountable
officer concerned requests Relief
from Accountability (see below);
no accounting entry is made but
loss is disclosed in the FS
pending result of request.
o May be recovered from accountable
officer or from fidelity bond (if bonded)
Grant of Relief from Accountability
If request is granted and receipt of copy of
the decision; Chief Accountant to debit Loss
of Asset and credit to appropriate
receivable account in the JEV.
If request is denied, immediate payment is
demanded from the officer or employee.
Restitution shall be acknowledged by the
issuance of OR.
Accounting for Cash Overage
Cash overage shall be forfeited in favor of
the government and OR is issued by the
cashier.
Stale MDS and Commercial Checks
Stale check outstanding more than 6 mos
from date of issue or as prescribed.
Stale check may be cancelled and reported
as follows:
1. Unclaimed stale check shall be
cancelled and reported in the List of
Unreleased Checks as cancelled. The
list of Unreleased Checks is attached in
the Report of Checks Issued.
2. Stale checks in the hands of payees or
holders in due course and requested for
replacements, new checks may be
issued upon submission of stale
checks to the accounting unit. A
certified copy of previously paid DV
shall be attached to the request for
replacement.
JEV is prepared to take up the cancellation
and replacement check reported in Reports
of Checks Issued.
Cash Settlement of Disallowance
Disallowance stems from payments made
by disbursing officers by cash or checks
which at post-audit are
suspended/disallowed by the resident
auditor.
Disallowed payments that are final and
executory is recorded as debit to
Receivable Disallowance Charges
Settlement of Charges
Important: Determine when the transaction
was undertaken
o If suspension/disallowance is for
current year the settlement is a
reduction of the expense, credit
expense account or Other service
Income if the charge increased the
income.
o If suspension/disallowance is for
previous year credit to Accumulated
Surplus/Deficit account.
o Same principle to follow accounting for
dishonored checks
Refund of Overpayment
Overpayments or double payment of
expenditures can be avoided by stricter
internal controls. Some however cant be
avoided because of built-in procedures.
In case of overpayments, refunds shall be
demanded of the officers or employees
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 CH. 7 Miscellaneous Transactions

concerned. (as debit to Due from Cash collections received by the

Officers and Employees) Implementing Agency (IA) from the Source
Agency (SA) shall be remitted to BuTr. The
Refund of Cash Advance IA shall request NCA from DBM to use the
Review: Cash advances are granted to fund.
Regular or Special Disbursing officers for
salaries and wages, labor payroll, to Dishonored Checks
Officers and Employees for official travel. Dishonored checks are collections not
When Cash Advance is granted accepted by the bank upon deposit
Advance to Officers and Employees XX Drawer remains liable for the amount due
Cash MDS Regular plus penalties resulting from delayed
XX payment.
If dishonored check is due from
insufficiency of funds, drawer shall be
criminally liable under Pd 1445.
When Cash Advance is liquidated The return of dishonored check to the
If CA = Expenses incurred is recorded in collecting officer is made by the BuTr since
JEV all collections are deposited to the National
Expenses Treasury.
Advance to Officers and Employees
Record of dishonored check
If CA < Expenses Incurred, recorded in DV Other Receivables XX
of excess Other Service Income
Expenses XX XX
Cash, MDS Regular
XX Record of collection of Receivable
Advances to Officers and Employees Cash Collecting Officer XX
XX Other Receivables XX

If CA > Expenses Incurred, Refund is Record of Remittance/re-deposit

recorded in JEV Other Service Income XX
Expenses XX Cash Collecting Officer
Cash Collecting Officer* XX XX
Advances to Officers and Employees
XX Performance Bonds
*OR is issued for receipt of cash A trust receipt collections from non-
income sources authorized by law for
To record remittance to BuTr (if CA within specific purposes, which are
current yr) collected/received by a government officer
Subsidy from National Government XX or agency acting as a trustee, agent, or
Cash- Collecting Officer administrator or which have been received
XX as guaranty for the fulfillment of an
obligation, and all other obligations
To record remittance to BuTr (if CA from classified by law or regulations as trust
previous yr) receipts.
Accumulated Surplus/Deficit XX Required by an agency from
Cash- Collecting Officer contractors/suppliers to ensure their
XX performance of contracts
Forms:
Inter-Agency Transferred Funds 1. Cash acknowledged by OR
Inter-Agency Transferred Funds Is a transfer 2. Check acknowledged by OR
of cash from another agency to implement 3. Surety acknowledged by
the project of another agency Acknowledgement Receipt (AR); debited
as Guaranty Deposits (account is

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 CH. 7 Miscellaneous Transactions

used to record deposits subject to Cash MDS, Regular

refund) XX
Entries:
In form of Cash/Check In form of Surety bond
To record receipt of performance bond To record receipt of performance bond
Cash Collecting Officer XX Guaranty Deposits XX
Guaranty/Security Deposits Payable Guaranty/Security Deposits Payable
XX XX

To record release of performance bond To record release of performance bond

Guaranty/Security Deposits PayableXX Guaranty/Security Deposits PayableXX
Guaranty Deposits XX

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