ACCOUNTING FOR

SUPPLIES and PPE

under the
Receipt of Deliveries of Inventory Items
Delivery
Receipt
Inspection
and
Acceptance
Report
Stock
Card
DV
Report of
Checks
Issued
JEV ChkDJ
General
Ledger
Supplies
Ledger
Card
JEV
Requisition and Issuance of Supplies
and Materials
RIS
SC
RSMI SLC
GENERAL
JOURNAL
GL
JEV
Yes
No
PR
Stocks
Available?
Receipt of Deliveries of PPE
Delivery
Receipt
Inspection
and
Acceptance
Report
PPE
Card
DV
Report of
Checks
Issued
JEV ChkDJ
General
Ledger
PPE
Ledger
Card
JEV
Issuance of the PPE
Requisition
Issue
Slip
Property
Card
(PropertyDiv.)
Property
Acknow-
legement
Receipt

Property
LedgerCard
(AccountingDiv.)
Preparation of Purchase Request
Request for the purchase of
supplies, materials and property
needed for the quarter based on the
approved annual procurement
program is prepared.
Procedures in Procurement
Preparation of PR (cont.)
The PR shall be prepared in 2 copies:
Original - Supply and Property Unit
for appropriate action
Duplicate Copy Requisitioning Unit
Note: This form is also prepared when the
goods/supplies/properties are not carried in
stock.
Department: PR. No. Date:
Section: SAI No. Date:
Purpose:
Signature:
Printed Name:
Designation:
Unit Total Cost
Stock
No.
Item Description Quantity
Unit
Cost
PURCHASE REQUEST
Agency
Requested by: Approved by:
Preparation of the Obligation Request
(ObR), for the goods requisitioned covered
by an approved PR.
The ObR prepared to obligate funds
purposely for the purchase request. This
must be certified by the Budget Officer as to
the availability of allotment and the Chief
Accountant or Head of the Accounting Unit
as to the correctness and validity of
obligation.
Preparation of PR (cont.)
Preparation and Approval of
Purchase Order/Letter or Contract

The Purchase Order (PO)/
contract is the document
evidencing a transaction for the
purchase of supplies and other
inventories. It is usually
prepared by the Supply Officer or
his equivalent.
Procedures in Procurement
Supplier P.O. No. _____________________________
Address Date _____________________________
Gentlemen:
Please furnish this office the following articles subject to the terms and conditions contained herein:
Place of Delivery: Delivery Term:
Date of Delivery: Payment Term:
Stock No. Quantity Unit Cost
P P
(Total Amount in Words) P
In case of failure to make the full delivery within the time specified above, a penalty of one-tenth (1/10)
of one percent for every day of delay shall be imposed.
Very truly yours,
_________________________________
(Authorized Official)
Conforme:
(Signature over printed name)
___________________________
(Date)
Amount
PURCHASE ORDER
Agency
Unit
Amount : _____________
Quantity Description
OS No. : ______________
Mode of Procurement __________________
Appendix 35
Receipt of the Delivery of the
Goods/Property/ Supplies and
Materials procured
Receipt of the goods prior to
inspection shall be understood that
these are received as to the quantity
only subject to final inspection and
acceptance of the items.
Procedures in Procurement
Acceptance of deliveries maybe
made only if the goods / property /
supplies and materials delivered
conform with the standards and
specifications stated in the contract.
Inspection and Acceptance of the
Deliveries
Procedures in Procurement
The report shall be signed by the
authorized Inspection Officer who
conducted the inspection and
verification of the items to certify that
the delivery conform with the
specifications indicated in the PR. The
date of inspection shall be indicated in
the report.
Preparation of Inspection &
Acceptance Report (IAR)
The Inspection and Acceptance Report
shall be prepared in three copies
distributed as follows:
Original - Supplier (to be attached to
the claim voucher)

Duplicate - Inspection Committee

Triplicate - Supply Unit
Preparation of IAR (cont.)
Supplier
PO No.
Requisitioning Office/Dept.
Stock No. Description Quantity
Date Inspected :
Complete
Partial
(pls. Specify quantity)
Inspection Officer/Inspection Committee

For PropertyOffice Use
INSPECTION & ACCEPTANCE REPORT
Agency
Date
Date
IAR No.
Invoice No.
Unit
INSPECTION ACCEPTANCE
Property Officer
Date Received:
Inspected, verified and found OK
as to quantity and specifications
Appendix 37

After the inspection and
acceptance of delivery, the DV
shall be prepared.
Preparation of Disbursement
Voucher
Procedures in Procurement
Requisition, Issuance
and Reporting of
Supplies and Other
Inventories Issued
Preparation of Requisition
and Issue Slip (RIS)
Original Accounting Unit (to be
attached to the RSMI)
Duplicate - Requisitioning Unit
Triplicate - Supply and Property Unit
Requisition and Issue Slip (RIS) shall
be prepared if goods/supplies are
available in stock. This form shall be
prepared in three copies distributed as
follows:


Division Responsibility Center RIS No.
Office Code SAI No.
Stock No. Unit Quantity
Purpose: ___________________________________________________________________
___________________________________________________________________________
Requested by: Approved by: Received by:
Signature
Printed Name
Designation
Date
REQUISITION AND ISSUE SLIP
Agency
Remarks Description
R e q u i s i t i o n I s s u a n c e
Quantity
Issued by:

If stocks are not
available, the
Purchase Request
shall be prepared.

Preparation of Report of Supplies
and Materials Issued (RSMI)
This report shall be prepared by the
Supply and Property Unit (SPU) showing all
supplies issued for the day

Upon receipt of this report, the
designated accounting personnel shall fill
up the following columns:
2. Amount - amount (Qty. Issued x Unit Cost) of
supplies and materials issued
within the day
1. Unit Cost - moving average cost of supplies
and materials issued by the
agency

3. Posted by/date - name and signature of the
accounting personnel who posted to SLC
based on recapitulation
Report of Supplies and Materials
Issued (RSMI)

The moving average method of
costing shall be used for costing
inventories. The Accounting Unit shall
be responsible in computing the cost
of inventory on a regular basis.

Date
2002
Jan. 1 200 @ 10 2,000
Jan 12 400 @ 12 4,800 600 @ 11.33 6,800
Jan. 16 500 @ 11.33 5,667 100 @ 11.33 1,133
Jan 26 300 @ 11 3,300 400 @ 11.08 4,433
Jan 29 200 @ 11.08 2,216 200 @ 11.08 2,217
Jan. 30 100 @ 12 1,200 300 @ 11.39 3,417
Received Issued
Ball pen
Balance
Illustrative Calculation
Original - Accounting Unit for the
preparation of JEV
Duplicate - SPU File


The RSMI shall be prepared in two copies
to be distributed as follows:
At the end of the month, all issuances in the RSMI
shall be consolidated for the preparation of the J EV.
Report of Supplies and Materials
Issued (RSMI) (cont.)


Date: No.
Responsibility
Center
Recapitulation:
Stock No. Quantity Unit Cost Total Cost Account Code
Posted by/date:
Supply Officer Accounting Clerk
I hereby certify to the correctness of the above information.
Recapitulation:
Item Unit Cost
Agency
Amount Unit
REPORT OF SUPPLIES AND MATERIALS ISSUED
To be filled up in the Supply and Property Unit
RIS No. Stock No. Qty. Issued
To be filled up in the Acctg. Unit
This form shall be used to report
on the physical count of inventory
items by type such as Office Supplies,
Accountable Forms, Medical, Dental
and Laboratory Supplies, Food/Non-
food Inventory, Military and Police
Supplies Inventory, etc. which are
owned by the agency.
Preparation Report of
Physical Count of Inventories
(RPCI)
Original Accounting Unit
Duplicate Copy Supply and Property Unit
Triplicate Copy Inventory Committee
This shall be prepared every six months in
three (3) copies and shall be certified correct by
the Inventory Committee and approved by the
Head of the Agency or Authorized
Representative. This shall be distributed as
follows:
Preparation Report of Physical
Count of Inventories (Cont.)
It shall be submitted to the
Auditor concerned not later than
July 31 and January 31 of each
year for the first and second
semesters, respectively.
Preparation Report of Physical
Count of Inventories (Cont.)
For which ___________, ____________, ____________ is accountable, having assumed such accountability on ____________.
(Name of Account able Officer) (Official Designat ion)(Agency/Office) (Dat e of Assumpt ion)
BALANCE PER ON HAND
ARTICLE DESCRIPTION STOCK UNIT OF UNIT CARD PER COUNT REMARKS
NUMBER MEASURE VALUE (Quantity) (Quantity) Quantity Value
SHORTAGE/OVERAGE
REPORT ON THE PHYSICAL COUNT OF INVENTORIES
As of ________________________________
(Type of Inventory Item)
Records to be kept by the
Accounting Unit -
Supplies Ledger Card - for each
inventory item/stock

Records to be kept by the Supply Unit
Stock Card - to be maintained for
each type of supplies to record
all receipts and issuances
With the implementation of the
NGAS, the ten thousand pesos
benchmark for acquisition of
inventories/non consumable
items is revoked.
On Inventories
Inventories which are non-
consumables such as: staplers,
staple removers, punchers,
scissors, rulers, and other small
items shall be recorded under
appropriate supplies
inventory/expense, as the case
may be.
On Inventories

Suspension of the Use of Supplies
Availability Inquiry (SAI) under the
Manual version of NGAS, and the
Provision of Additional Guidelines
per COA GAFMIS Circular Letter No.
2003-006 dated November 24, 2003.
On Inventory Form
All non-consumable items
shall be covered by an
Inventory Custodian Slip to
be issued by the Supply
Officer and acknowledged
by the end-user.
Non-Consumable Items
of Inventories
Inventory Custodian Slip
ICS No.: _______
Received by: Received from:
For Use of Property Unit
Quantity Unit Description
Signature Over Printed Name
__________________________________
Position/Office
__________________________________
Date
__________________________________
Signature Over Printed Name
__________________________________
Position/Office
__________________________________
Date
__________________________________
INVENTORY CUSTODIAN SLIP
DEPARTMENT/AGENCY
Inventory
Item No.
Unit Cost
No replacement shall be made
for damaged or unserviceable
items unless the item is returned
and accepted by the Supply
Officer or authorized unit in the
agency.
On
Non- Consumable Items
of Inventories
1. Receipt of Allotment for the purchase of the
Office Supplies P 300T and Military Supplies P500T
Journal Entries


Credit Debit
Account
Code
Account Title
Entry in the RAOMO
based on the
Obligation Request
2. Receipt of Notice of Cash Allocation (NCA)/
Notice of Transfer of Allocation (NTA)
Journal Entries
500T 651 Subsidy Income from
National Government

Credit Debit
Account
Code
Account Title
Cash-National Treasury,
MDS
108 500T
3. Obligation upon approval of the Purchase
Order
Journal Entries


Entry in the RAOMO

Credit Debit
Account
Code
Account Title
4. Receipt of delivered inventories
Journal Entries
500T 401 Accounts Payable

Credit Debit
Account
Code
Account Title
Office Supplies Inventory
Military and Police Supplies
Inventory
155

164
300T
200T
5. Payment for the delivered inventories
Journal Entries
470T

30T
106

412
Cash-National
Treasury, MDS
Due to NGAs

Credit Debit
Account
Code
Account Title
401 500T Accounts Payable
6. Issuance of Inventories
Journal Entries


No Journal Entry

Credit Debit
Account
Code
Account Title
7. Receipt of the Report of Supplies and
Materials Issued
Journal Entries
100T

200T
151

153

Office Supplies Inventory
Military and Police
Supplies Inventory

Credit Debit
Account
Code
Account Title
751
753
100T
200
Office Supplies Expenses
Military and Police
Supplies Expenses
8. Set up of liability of supply Officer for lost
inventory in his responsibility/accountability
Journal Entries

40T 455

Other Deferred Credits

Credit Debit
Account
Code
Account Title

123 40T
Due from Officers and
Employees
9. Collection from Supply Officer for lost
inventories and Adjustment of Deferred
Credits
Journal Entries


40T

40T 459
411
Other Deferred Credits
Due to National
Treasury



40T

Credit Debit
Account
Code
Account Title

102

135

40T
Cash Collecting
Officers
Due from Officers and
Employees
10. Deposit of Collection with the BTr
Journal Entries


40T



102

Cash Collecting
Officers




Credit Debit
Account
Code
Account Title

411

40T

Due to National
Treasury
11. If Request for Relief from Accountability is
issued
Journal Entries


40T



135

Due from Officers and
Employees




Credit Debit
Account
Code
Account Title

459

40T
Other Deferred Credits

PROCUREMENT,
REQUISITION
and ISSUANCE of
PROPERTY, PLANT and
EQUIPMENT
(Under the NGAS)
Accounting Policies
For Property, Plant and Equipment
1. Construction of Assets
For assets under construction, the
Construction Period Theory shall be
applied for costing purposes.

Accounting Policies
For Property, Plant and Equipment
Liquidated damages charged and paid by
the contractor shall be deducted from the
total cost of the project.
Any related expenses incurred during the
construction of the project, such as
taxes, license fees, permit fees, clearance
fees, etc. shall be capitalized, and those
incurred after the construction shall form
part of operating cost.

Accounting Policies
For Property, Plant and Equipment
2. Depreciation
The Straight Line Method of
depreciation shall be used.
Depreciation shall start on the
month following the month of
purchase of the PPE and a residual
value equivalent to ten percent of
the purchase cost shall be set-up.
Accounting Policies
For Property, Plant and Equipment
3. Reclassification of Assets
Serviceable assets no longer
being used in operation due to
technical innovations, as well as
obsolete and unserviceable ones
(pending disposal) shall be
reclassified to account Other
Assets and shall not be subject to
depreciation.
Cost of Typewriter - 10,000
Accumulated Depreciation - 7,200
Net Book Value - 2,800

Debit Credit

Other Assets 2,800
Accum. Depreciation-Office
Equipment 7,200
Office Equipment 10,000

Accounting Policies
For Property, Plant and Equipment
4. Assets without recorded cost and
acquisition date
For proper recording and costing of PPE
owned by the government, all property listed in the
inventory report without value and date of
acquisition shall be appraised as to its present
value and remaining useful life. The appraisal shall
be used as the basis in computing the appropriate
depreciation after setting aside a residual value
equivalent to 10% of the appraised cost.
Accounting Policies
For Property, Plant and Equipment
5. Discounts on Purchases of PPE
Discounts given by suppliers upon purchase
of item shall be recorded in the books of
accounts. These may be categorized as :
cash discount
same item given as discounts
different item as discounts
Accounting Policies
For Property, Plant and Equipment
6. Transfer of PPE
a. To other government agencies shall be
recorded as donation

b. To regional office/operating unit shall be
recorded as subsidy to regional office/
operating unit
Accounting Policies
For Property, Plant and Equipment
7. Repairs and Maintenance
a. Repairs and maintenance of PPE including fully
depreciated ones shall be charged against the
appropriate Repair and Maintenance Expense
account
b. Repairs and maintenance of property owned by
another agency which are used by other agency
shall be shouldered by the using agency and
shall be treated as Other Maintenance and
Operating Expenses account (code 969).
Procedures in Procurement
Preparation of the Annual
Procurement Plan/Program
Preparation of Purchase
Request/Agency Procurement
Request
Preparation of Obligation Request
(ObR) for the goods requisitioned
covered by an approved PR.
Procedures in Procurement
Preparation and Approval of Purchase
Order/Letter or Contract
Receipt of the Delivery of the
Goods/Property/ Supplies and Materials
procured
Inspection and Acceptance of
the Deliveries
Preparation of Inspection & Acceptance
Report (IAR)

After the inspection and acceptance of
delivery, the DV shall be processed

Preparation of Disbursement Voucher
Procedures in Procurement
Requisition, Issuance
and Reporting of
Property Issued
The ARE shall be signed and dated by the
designated Property Officer under Received from
portion and the recipient or user of the property
shall acknowledge receipt by signing under
Received by portion.
Acknowledgment Receipt
for Equipment
The ARE/PAR shall be prepared in two copies
distributed as follows:
Acknowledgment Receipt for
Equipment

Original - Supply and Property Unit
Duplicate - Recipient or user of the
property
The ARE shall be renewed every three years or
every time there is a change in accountability.
At the end of each month, the Property Unit shall
furnish the Accounting Unit a List of AREs Issued
containing the No., Property No., and type of Receipt (original,
renewal, transfer, etc.)
Acknowledgment Receipt for
Equipment
For Property Unit Use
AO 6/15/02
ACKNOWLEDGMENT RECEIPT FOR EQUIPMENT
_______________________________________________
Agency
No.:_______
Received by:
Received from:
Signature Over Printed Name
Position/Office
Date
Signature Over Printed Name
Position/Office
Date
Property No. Description Unit Quantity
Inventory Reports of
Property and
Equipment
Preparation of Waste
Material Report (WMR)
Original Chief Accountant
Duplicate Copy Property Officers file
This shall be used to report all
unserviceable assets so that they may be
properly disposed of and dropped from the
accounts.

This report shall be prepared in two (2)
copies distributed as follows:
ITEM QTY. UNIT
O.R. No. Amount
1
2
3
4
5
6
TOTAL
I hereby certify that the property enumerated above was disposed of as follows:
Item ________ Destroyed
Item ________ Sold at private sale
Item ________ Sold at public auction
Item ________ Transferred without cost to _______
Property Inspector: (Name & Signature) Witness to disposition:
CERTIFICATE OF INSPECTION
ITEMS FOR DISPOSAL
WASTE MATERIALS REPORT
DESCRIPTION RECORD OF SALES
Agency
Place of Storage Date
Certified Correct:
Property Officer
Disposal Approved:
The IIRUP shall be prepared in two (2) copies and
submitted by the Accountable Officer to the
following:
Preparation of Inventory and
Inspection Report of Unserviceable
Property (IIRUP)
Original Accounting Unit
Duplicate Copy Property Officer
In cases where technical knowledge is
needed for the determination of the true
condition or actual current value of the
property to be inspected, a Technical
Inspector with the required knowledge and
training shall inspect the same.
Preparation of Inventory and Inspection
Report of Unserviceable Property
(cont.)
When the property is sold, the record of
sales shall be accomplished. The IIRUP shall
be held until the sale is completed.

The original copy of the report shall be
the basis for adjusting the accounts affected
by means of a journal entry voucher.
Preparation of Inventory and Inspection
Report of Unserviceable Property
(cont.)
________________________________ ______________________________ ________________________ ___________________________
(Agency) (Name of Accountable Officer) (Designation) (Station)
D I S P O S I T I O N AppraisalOfficial
Acticles Quantity Unit Cost Total Cost Property No. Date No. of years Accumulated Receipt Amount
Acquired in service Depreciation Number
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16)
Requested by: Request for Inspection Approved by:
________________________________
________________________________
I CERTIFY that I have
witnessed the disposition of
the articles enumerated on
INVENTORY AND INSPECTION REPORT OF UNSERVICEABLE PROPERTY
As of _________________________________
I N V E N T O R Y I N S P E C T I O N R E P O R T
(Name and Signature) ________________________________________
I CERTIFY that I have
inspected each and every article
enumerated in this report and that
the disposition made thereof was,
in my judgement, the best for the
I HEREBY request inspection, and disposition
pursuant to Section 79 of PD 1445, of the property
enumerated above.
(Designation of Accountable Officer) (Designation)
_____________________________
(Signature of Accountable Officer) ______________________________________
(Name and Signature of Inspector) (Name and Signature of Witness)
_____________________________
Preparation of Report on the Physical Count
of Property, Plant and Equipment (RPCPPE)
The RPCPPE shall be used to report on the
physical count of property, plant and equipment by
type such as Heavy Equipment, Technical and
Scientific Equipment, Motor Vehicles, Office
Equipment, Furniture and Fixtures, etc. which are
owned by the agency. It shall be prepared in three
copies, distributed as follows:
Original Accounting Unit
Duplicate Copy Supply and Property Unit
Triplicate Copy Inventory Committee file
It shall be submitted to the Auditor
concerned not later than January 31 of each year.
For which ______________, ______________, _______________ is accountable, having assumed such accountability on ________________.
(Name of Accountabl e Offi cer) (Offi ci al Desi gnati on) (Agency/Offi ce) (Date of Assumpti on)
BALANCE PER ON HAND
ARTICLE DESCRIPTION PROPERTY UNIT OF UNIT CARD PER COUNT REMARKS
NUMBER MEASURE VALUE (Quantity) (Quantity) Quantity Value
SHORTAGE/OVERAGE
REPORT ON THE PHYSICAL COUNT OF PROPERTY PLANT AND EQUIPMENT
As of ________________________________
(Type of Property, Plant and Equipment)
Records to be kept by the Accounting
Unit -
PPE Ledger Cards - for
each property/equipment

Records to be kept by the Supply Unit -
Property Card - to be maintained for
each Property to record date of
purchase and accountability
Monitoring of Repairs and
Maintenance of PPE
Maintenance
Expenses
Amount
Accumulated
Amount
Transfers/
Date Ref. Particulars Costs Adjustments Book Value
PROPERTY, PLANT AND EQUIPMENT LEDGER CARD - SPECIFIC ITEM
_______________________________________________
Depreciation
Agency
Description:
Propery, Plant and Equipment:
No.
DEPRECIATION
ACCOUNTING

Depreciation Accounting

Straight-line Method of depreciation shall
be used;
Depreciation shall start on the following
month after purchase of the property;
A residual value of 10% of the purchase
cost shall be set up;

Serviceable assets that are no longer
used shall not be charged any
depreciation; and
The useful life of the property, plant and
equipment are revised pursuant to COA
Circular 2003-007 dated December 11,
2003.

TABLE OF ESTIMATED USEFUL LIFE OF PROPERTY, PLANT
AND EQUIPMENT
10
20
30
o Wood
o Mixed
o Concrete
Buildings those that are predominantly
10
20
40

10
o Land Improvements
o Runways/taxiways
o Railways
o Electrification, Power and Energy
Structures
Land Improvements
Estimated
Useful Life
(in years)
Property, Plant and Equipment
10

10
20
30
o Land
o Building
o Wood
o Mixed
o Concrete
Leasehold Improvements (Note 1)
Estimated
Useful Life
(in years)
Property, Plant and Equipment
o Office Equipment
o Furniture and Fixtures
o IT Equipment
o Library Books
Office Equipment, Furniture and Fixtures
5
10
5
5
10
10
10
10
10
7
10

10
10
10
10
10
o Machineries
o Agricultural, Fishery and Forestry
o Airport Equipment
o Communication Equipment
o Construction and Heavy Equipment
o Firefighting Equipment and Accessories
o Hospital Equipment
o Medical, Dental and Laboratory
Equipment
o Military and Police Equipment
o Sports Equipment
o Technical and Scientific Equipment
o Other Machineries and Equipment
Machineries and Equipment
Estimated
Useful Life
(in years)
Property, Plant and Equipment
Transportation Equipment
o Motor Vehicles
o Trains
o Aircraft and Aircraft Ground
Equipment
o Watercrafts
o Other Transportation Equipment
7
10

10
10
10
Note 1 The estimated useful life shall depend on the
length of the lease. It shall be the period of the
lease or the estimated useful life of the assets, as
given, whichever is shorter.
Property, Plant and Equipment
Estimated
Useful Life
(in years)
Other Property, Plant and Equipment 5
Adjustment in 2004 for understated
depreciation of Motor Vehicles -
Previous economic life - 10 yrs.
Revised economic life - 7 yrs.

7,710



7,710
Journal Entry:
Prior Years Adjustments
Accumulated Depreciation
Motor Vehicles
Recorded depreciation for 2 yrs - P18,000
Adjusted depreciation - 25,710
Understatement P 7,710
Adjustment in 2004 for understated
depreciation of Mixed Concrete Buildings -
Previous economic life - 30 yrs.
Revised economic life - 20 yrs.

750,000



750,000
Journal Entry:
Prior Years Adjustments
Accumulated Depreciation
Buildings


Recorded depreciation for 10 yrs - P1,500,000
Adjusted depreciation - 2,250,000
Understatement P 750,000
TRANSFER OF
PROPERTY AND
EQUIPMENT
Transfer of Property and
Equipment
a. To Other Agencies
Close the Property, Plant and
Equipment account and the
corresponding accumulated
depreciation in the transferors book
and
record the same at net book value
in the recipient agency book.
Illustrative Computation:

Transfer of Motor Vehicle by AFP-GHQ
to DPWH in February 14, 2004
Acquisition Cost - 500,000
Accumulated Depreciation
(4 yrs.) - 180,000
Net Book Value - 320,000
Particulars
Acct
Code
Debit Credit
Transferors Books (AFP-GHQ)

1) Donations
With SL In Kind
Accumulated Depreciation Motor
Vehicles
Motor Vehicles
To record transfer of motor vehicle
to DPWH



878


341
241


320,000


180,000






500,000
Particulars
Acct
Code
Debit Credit
Transferees Books (DPWH)

Motor Vehicles
Income from Grants & Donations
SL In Kind
To record receipt of motor vehicle
from AFP-GHQ


241
662


320,000





320,000

b. By Central Office to Regional
Offices (RO) or by RO to
Operating Unit/Provincial Office of
the Department/ Agency
Transfer the Property, Plant and
Equipment and the corresponding
Accumulated Depreciation to the recipient
office (RO/OU/PO).
On Transfer of Property and
Equipment
Particulars
Acct
Code
Debit Credit
Transferors Books
(Central Office)
Subsidy to ROs/Staff Bureaus
Accumulated Depreciation Motor
Vehicles
Motor Vehicles
To record transfer of motor vehicle to
RO



872

341
241



320,000

180,000







500,000
Particulars
Acct
Code
Debit Credit
Transferees Books
(Regional Office)
Motor Vehicles
Subsidy from Central Office
Accumulated Depreciation Motor
Vehicles
To record receipt of motor
vehicle from CO



241
653

341



500,000






320,000

180,000
Property Loss

Immediately after the
occurrence of the loss, an
investigation shall be conducted
and result shall be furnished the
Accounting Unit and Property
Unit.
Property Loss
In case of loss of property as a result of
accident or fortuitous event, a Report of
Losses shall be prepared by Property
Officer noted by the Head of Agency.
Information such as description of
property, quantity, property no., book value,
fair market value and age of assets shall be
included in the report.
Property Loss
Losses detected during the conduct of the
physical count and reconciliation of
records of the Property and Accounting
Units shall be reflected in the Report of
Physical Count of PPE, a copy of which
shall be furnished the Accounting Unit for
recording in the books of account.
Property Loss
Account Loss of Assets (code 961)
shall be recorded based on the Net Book
Value, and account Due from Officers
and Employees (code 123) shall be
recorded based on sound value
(Replacement Cost less Estimated
Depreciation)
Property Loss
The amount collected from the
accountable officer or the proceeds from
insurance shall be receipted by the
agency and shall be remitted to the
National Treasury, unless the agency is
authorized by law to deposit the same
with authorized government depository
bank.
Case A Replacement Cost is
higher than Acquisition Cost
Acquisition Cost (Motor Vehicle) - 400,000
Accumulated Depreciation (6 years) - 216,000
Net Book Value - 184,000

Replacement Cost - 600,000
Estimated Depreciation (6 years) - 324,000
Sound Value - 276,000
Loss of Assets
Accumulated Depreciation-
Motor Vehicles
Motor Vehicles
184,000

216,000




400,000
1. Upon loss of assets
a. Record the loss of assets
Due from Officers and
Employees
Other Deferred Credits

276,000


276,000
b. Set up the accountability of the concerned
officer/employee
2. Upon receipt of the certified copy of the denial of
request for Relief from Accountability
No entry
Case A Replacement Cost is higher
than Acquisition Cost (cont)
Cash - Collecting Officers
Due from Officers and
Employees
276,000

276,000
3. Collection from Accountable Officer
Case A Replacement Cost is higher
than Acquisition Cost (cont)
4. Adjustment of Deferred Account
Other Deferred Credits

Due to National Treasury
276,000

276,000
Case A Replacement Cost is higher
than Acquisition Cost (cont)
Due to National Treasury
Cash - Collecting Officers
276,000
276,000
5. Remittance of collection to National Treasury
- for NGAs
Case A Replacement Cost is higher
than Acquisition Cost (cont)
Other Deferred Credits
Due from Officers and
Employees
276,000
276,000
6. Upon receipt of certified copy of the grant of
Relief of Accountability
Case B Replacement Cost is
lower than Acquisition Cost
Acquisition Cost (Office Equipment) - 100,000
Accumulated Depreciation (3 years) - 45,000
Net Book Value - 55,000
Replacement Cost - 50,000
Estimated Depreciation (3 years) - 22,500
Sound Value - 27,500
Loss of Assets
Accumulated Depreciation -
Office Equipment
55,000
45,000



100,000
1. Upon loss of assets
a. Record the loss of assets
Due from Officers and
Employees
Other Deferred Credits

27,500


27,500
b. Set up the accountability of the concerned
officer/employee
2. Upon receipt of the certified copy of the denial of
request for Relief from Accountability
No entry
Case B Replacement Cost is lower than
Acquisition Cost (cont)
Cash - Collecting Officers
Due from Officers and
Employees
27,500

27,500
3. Collection from Accountable Officer
Case B Replacement Cost is lower than
Acquisition Cost (cont)
4. Adjustment of Deferred Account
Other Deferred Credits

Due to National Treasury
27,500

27,500
Case C The amount is paid by
insurance
Acquisition Cost (Office Equipment) - 100,000
Accumulated Depreciation (3 years) - 45,000
Net Book Value - 55,000
Replacement Cost - 50,000
Estimated Depreciation (3 years) - 22,500
Sound Value - 27,500
Loss of Assets
Accumulated Depreciation -
Office Equipment
55,000
45,000



100,000
1. Upon loss of assets
a. Record the loss of assets
Due from Officers and
Employees
Other Deferred Credits

27,500


27,500
b. Set up the accountability of the concerned
officer/employee
2. Relief is granted and loss is paid by insurance
Case C To be paid by insurance
Other Deferred Credits
Due from Officers and
Employees
27,500

27,500
Cash - Collecting Officers
Due to National Treasury
27,500

27,500
3. Collection from Insurance Company
Case B Replacement Cost is lower than
Acquisition Cost (cont)
Case B Replacement Cost is higher
than Acquisition Cost (cont)
Due to National Treasury
Cash - Collecting Officers
27,500
27,500
5. Remittance of collection to National Treasury -
for NGAs
Case B Replacement Cost is higher
than Acquisition Cost (cont)
Due to National Treasury
Cash - Collecting Officers
27,500
27,500
5. Remittance of collection to National Treasury -
for NGAs
Allocation of Cost of Promotional Items given
as Discounts for Equipment Purchased in Bulk
Allocation of cost for promotional items
If the promotional items are the same type of
equipment purchased, the total purchased cost shall be
allocated to the total quantity ordered plus the
promotional item.
Example: Purchased - 10 units of motor vehicle
@P330,000 = P3,300,000
Promo item 1 unit of motor vehicle
Computation of the Cost per unit =
P3,300,000
11 units
= P300,000
Allocation of Cost of Promotional Items
given for Equipment Purchased
Allocation of cost for promotional items
If the promotional items are different from the type of
the items purchased, the cost of the promo item shall be
based on the fair market value and it shall be considered
as Income from Grants and Donation (Code 662).
Example: Purchased - 10 units of motor vehicles
@330,000 = P3,300,000
Promo item 1 air conditioning unit

Computation of the Cost per unit of the motor
vehicles =P3,300,000
10 units

= P330,000
COA Resolution No. 2003-002
dated January 30, 2003
Subject: Delegating the authority to approve
write-off of unliquidated cash advances and
outstanding/dormant/uncollectible accounts
receivables
Amount P1 million
Adjudication and Settlement Board composed
of the following officers:
Chairperson - Asst. Comm., Legal and
Adjudication Office
Members - Asst. Comm., National,
Corporate, and Local
Government Sectors, and
GAFMIS
Upon Receipt of Authority from COA for
dropping of other dormant accounts:
Note:
This shall be recorded in the General Journal
thru a JEV and in the Registry of Accounts
Written-Off.

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Journal Entry:
Loss of Assets
Office Supplies Inventory
Military and Police Supplies
Inventory
Other Office Supplies

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