Chapter 6

Miscellaneous Transactions
 Definition
 Aretransaction types that are unique
and not recurring in the ordinary
course of government operations.
These transactions seldom take place
or should not happen at all
 Types of Miscellaneous
Transactions
 Loss on Cash and Property

Shortages in cash accountability of

collecting and disbursing officers may be due to
malversation, robbery, theft, fire or other causes.
A report shall be rendered by the
accountable officer for purposes of requesting
relief from accountability.
Shortages may be recovered from the
accountable officer of from the fidelity bond
issued by the BTr, if bonded
 Entries for Shortages
The Auditor discovered shortages of the Collecting
Officer of P7,000 and Disbursing Officer of
P3,000.
1) To record discovery of shortages
Due from Officers and Employees - 10,000
Cash, Collecting Officers - 10,000

2) To record restitution of shortages and issuance

of OR
Cash, Collecting Officers - 10,000
Due from Officers and Employees - 10,000
 Entries for Shortages
3) Record of remittance to the BTr
Govt Equity - 10,000
Cash, Collecting Officer - 10,000

4) Record in the books of the BTr

Cash in Bank, LCA - 10,000
Other Service Income - 10,000
Grant of Relief of Acountability
 A relief from accountability is
granted by the Auditor and
forwarded to the Accountant. In
case the request is denied, payment
of the shortage shall be demanded
and restitution shall be
acknowledged by an Official Receipt
of the Philippines
 Entries for Grant of Relief of
Accountability
 During audit the Auditor discovered that
an office equipment costing P100,000 was
lost due to theft. The property custodian
requested for relief from accountability
and was granted
1) Due from Officers and Employees - 80,000
Accum. Depreciation-Office Equip – 20,000
Office Equipment - 100,000
 Entries for Grant of Relief of
Accountability
3) Government Equity - 80,000
Due from Officers and Employees - 80,000

In case, relief is not granted:

1) Cash, Collecting Officer - 80,000
Due from Officers and Employees - 80,000
2) Government Equity - 80,000
Due to NGAs /BTr - 80,000
3) Due to NGAs/BTr - 80,000
Cash, Collecting Officer - 80,000
 Cash Overage
 In case of cash overage discovered
by the Auditor, the amount shall be
forfeited in favor of the government
and an official receipt shall be issued
by the Cashier and recorded as
Miscellaneous Income
 Entries for Cash Overage
 During cash examination by the resident auditor,
cash overage in the amount of P500 was
discovered in the possession of the disbursing
officer. It was forfeited and deposited to the BTr

1) Cash, Collecting Officer - 500

Due to the NGAs/BTr - 500
2) Due to the NGAs/BTr - 500
Cash, Collecting Officer - 500
 Stale MDS and Commercial
Checks
 A check is considered stale if it has been
outstanding for over six months from date
of issue or as prescribed. Checks may be
cancelled when they become stale. A
stale check shall be marked cancelled on
its face.
- Unclaimed stale checks still with the Cashier
– to be reported in the list of unreleased checks
- Checks in the hands of payees – to be
surrendered and replacements shall be issued
 Entries for stale checks
 A check issued in the amount of P10,000 has
become stale and is still in the hands of the
payee. A replacement check was requested and
issued.

1) To record cancellation of check issued in prior

year
Prior Year’s Adjustment - 10,000
Accounts Payable - 10,000

To record cancellation of check issued in the

current year
SING - 10,000
Accounts Payable - 10,000
(previous NCA was already reverted)
 Entries for stale checks
2) Replacement check was paid out of
regular funds
Accounts Payable - 10,000
Cash, NT, MDS-Regular - 10,000
 Cash Settlement of Disallowance
 Payments made which at post-audit
are suspended or disallowed by the
Auditor
 Entries for Cash Settlement of
Disallowance
 The Auditor disallowed payments made by the
disbursing officer in the amount of P5,000 which
pertains to overstatement of expenses in the
prior year. Accordingly, the disbursing officer
settled the disallowance.

 For outright settlement (no A/R)

Cash, Collecting Officer - 5,000
Prior Year’s Adjustment - 5,000

Prior Year’s Adjustment - 5,000

Due to NGAs/BTr - 5,000

Due to NGAs/BTr - 5,000

Cash, Collecting Officer - 5,000
 Entries for Cash Settlement of
Disallowance
 If disallowance was taken up as A/R
1) A/R-Disallowances/charges - 5,000
Prior Year’s Adjustment - 5,000

2) Cash Collecting Officer - 5,000

A/R-Disallowances/charges - 5,000

3) Prior Year’s Adjustment - 5,000

Due to NGA/BTr - 5,000
4) Due to NGA/BTr - 5,000
Cash, Collecting Officer - 5,000
 Refund of Overpayment
 Overpayments of double payment of
expenditures cannot be avoided
because of built-in procedures. In
case of such overpayment, refunds
may be demanded from the officers
and employees concerned
Entries for Refund of Overpayment
Overpayment of salaries was given to an
employee in the amount of P2,000 due
to absences without pay.

1) Receivable amount is set up.

Due from Officers and Employees -P2,000
Due to BTr - P2,000

2) To record receipt of refund of overpayment

Cash, Collecting Officer - P2,000
Due from Officers and Employees - P2,000
Entries for Refund of Overpayment
3) To record deposit of collection to BTr
Due to BTr - P2,000
Cash, Collecting Officer - P2,000
4) To record the collection by the BTr
Cash in Bank, LCA - P2,000
Miscellaneous Income - P2,000
 Refund of Cash Advance
 Cash advances are usually granted to
the Regular or Special Disbursing
Officers for salaries and wages and
for official travel.
Inter-Agency Transferred Funds
 Inter-agency transferred fund is a
transfer of cash from another agency
to implement the project of another
agency. The collections made by an
Implementing Agency of cash from
the Source Agency (SA) to
implement the project shall be
remitted to the BTr. The
implementing agency shall request
for the necessary NCA from DBM
 Dishonored Checks
 Dishonored checks are collections not
accepted by the bank upon deposit.
When a check drawn in favor of the
government is not acceptable by the
drawee bank for any reason, the
drawer shall continue to be liable for
the amount due and all penalties
resulting from delayed payment.
The dishonored checks are returned
by the BTr.
 Guaranty /Performance Bond
 This is a trust receipt which are
collections from non-income sources
authorized by law for specific
purposes, which are
collected/received by the
government acting as trustee, agent
or administrator or which have been
received as guaranty for the
fulfillment of an obligation, and all
other obligations classified by law or