6.inventory & ppe - latest

8/11/2019 6.Inventory & PPE - Latest

1/122

ACCOUNTING FOR

SUPPLIES and PPE

under the

NG S


2/122


3/122

Receipt of Deliveries of Inventory Items

Delivery

Receipt

Inspectionand

Acceptance

Report

Stock

Card

DV

Report of

Checks

Issued

JEVChkDJ

General

Ledger

Supplies

Ledger

Card

JEV


4/122

Requisition and Issuance of Supplies

and Materials

RIS

SC

RSMI SLC

GENERAL

JOURNAL

L

JEV

Yes

No

PR

StocksAvailable?


5/122

Receipt of Deliveries of PPE

Delivery

Receipt

Inspectionand

Acceptance

Report

PPE

Card

DV

Report of

Checks

Issued

JEVChkDJ

General

Ledger

PPE

Ledger

Card

JEV


6/122

Issuance of the PPE

Requisition

Issue

Slip

Property

Card

Property Div.)

PropertyAcknow-

legement

Receipt

Property

Ledger Card

Accounting Div.)


7/122

Preparation of Purchase Request

Request for the purchase of

supplies, materials and propertyneeded for the quarter based on the

approved annual procurement

program is prepared.

Procedures in Procurement


8/122

Preparationof PR (cont.)

The PR shall be prepared in 2 copies:

Original - Supply and Property Unit

for appropriate action

Duplicate CopyRequisitioning Unit

Note: This form is also prepared when thegoods/supplies/properties are not carried instock.


9/122

Department: PR. No. Date:

Section: SAI No. Date:

Purpose:

Signature:

Printed Name:

Designation:

Unit Total CostStock

No.Item Description Quantity

Unit

Cost

PURCHASE REQUEST

Agency

Requested by: Approved by:


10/122

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 ChiefAccountant or Head of the Accounting Unit

as to the correctness and validity of

obligation.

Preparationof PR (cont.)


11/122


12/122

Preparation and Approval ofPurchase Order/Letter or Contract

The Purchase Order (PO)/contract is the documentevidencing a transaction for the

purchase of supplies and otherinventories. It is usuallyprepared by the Supply Officer orhis equivalent.



13/122

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 __________________


14/122

Receipt of the Delivery of theGoods/Property/ Supplies and

Materials procured

Receipt of the goods prior to

inspection shall be understood that

these are received as to the quantityonly subject to final inspection and

acceptance of the items.



15/122

Acceptance of deliveries maybemade only if the goods / property /

supplies and materials delivered

conform with the standards and

specifications stated in the contract.

Inspection and Acceptance of theDeliveries



16/122

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. Thedate of inspection shall be indicated in

the report.

Preparation of Inspection &

Acceptance Report (IAR)


17/122

The Inspection and Acceptance Report

shall be prepared in three copies

distributed as follows:

Original - Supplier (to be attached tothe claim voucher)

Duplicate - Inspection Committee

Triplicate - Supply Unit

Preparation of IAR (cont.)


18/122

Supplier

PO No.

Requisitioning Office/Dept.

Stock No. Description Quantity

Date Inspected :

Complete

Partial(pls. Specify quantity)

Inspection Officer/Inspection Committee

For P r o p e r t y Office Use

INSPECTION & ACCEPTANCE REPORT

Agency

Date Date

IAR No.

Invoice No.

Unit

INS PE CTIO N A CCE PTA NCE

Property Officer

Date Received:

Inspected, verified and found OK

as to quantity and specifications


19/122

After the inspection and

acceptance of delivery, the DV

shall be prepared.

Preparation of Disbursement

Voucher



20/122


21/122

Requisition, Issuance

and Reporting ofSupplies and Other

Inventories Issued


22/122

Preparation of Requisitionand Issue Slip (RIS)

Original Accounting Unit (to beattached to the RSMI)

Duplicate - Requisitioning Unit

Triplicate - Supply and Property Unit

Requ isit io n and Issue Slip (RIS)shall

be prepared if goods/supplies are

available in stock. This form shall beprepared in three copies distributed as

follows:


23/122

Division Responsibility Center RIS No.

Office Code SAI No.

Stock No. Unit Quantity

Purpose: ___________________________________________________________________

___________________________________________________________________________

Requested by: Approved by: Received by:SignaturePrinted Name

DesignationDate

REQUISITION AND ISSUE SLIP

Agency

RemarksDescription

R e q u i s i t i o n I s s u a n c e

Quantity

Issued by:


24/122

If stocks are not

available, thePurchase Requestshall be prepared.


25/122

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:


26/122

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)


27/122

The moving average method ofcosting shall be used for costing

inventories. The Accounting Unit shall

be responsible in computing the costof inventory on a regular basis.


28/122

Date

2002

Jan. 1 200 @ 10 2,000Jan 12 400 @ 12 4,800 600 @ 11 6,800

Jan. 16 500 @ 11 5,667 100 @ 11 1,133

Jan 26 300 @ 11 3,300 400 @ 11 4,433Jan 29 200 @ 11 2,216 200 @ 11 2,217

Jan. 30 100 @ 12 1,200 300 @ 11 3,417

Received IssuedBall pen

Balance

Illustrative Calculation


29/122

Original - Accounting Unit for thepreparation 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 RSM I

shal l be consolidated for the preparation of the JEV.

Report of Supplies and MaterialsIssued (RSMI) (cont.)


30/122

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

AmountUnit

REPORT OF SUPPLIES AND MATERIALS ISSUED

To be f i lled up in the Supply and Prop erty Uni tRIS No. Stock No. Qty. Issued

To be f i lled up in the Ac ctg. Unit


31/122

This form shall be used to report

on the physical count of inventoryitems by type such as Office Supplies,Accountable Forms, Medical, Dentaland Laboratory Supplies, Food/Non-food Inventory, Military and PoliceSupplies Inventory, etc. which areowned by the agency.

PreparationReport of

Physical Count of Inventories(RPCI)


32/122

OriginalAccounting Unit

Duplicate CopySupply and Property Unit

Triplicate CopyInventory Committee

This shall be prepared every six months in

three (3) copies and shall be certified correct by

the Inventory Committee and approved by theHead of the Agency or Authorized

Representative. This shall be distributed as

follows:

PreparationReport of PhysicalCount of Inventories (Cont.)


33/122


34/122

For which ___________, ____________, ____________ is accountable, having ass umed such accountability on ____________.

(Name of Accountable Officer) (Official Designation)(Agency/Office) (Date of Assumption)

BALANCE PER ON HAND

ARTICLE DESCRIPTION STOCK UN IT OF UN IT CARD PER COUNT REMARKS

N UM BER MEASU RE VALU E (Quantity ) (Quantity ) Quantity Value

SHORTAGE/OVERAGE

REPORT ON THE PHYSICAL COUNT OF INVENTORIES

As of ________________________________

(Type of Inventory Item)


35/122

Records to be kept by theAccounting Unit -

Supplies Ledger Card - for each

inventory item/stock

Records to be kept by the Supply Unit

Stock Card - to be maintained foreach type of supplies to record

all receipts and issuances


36/122

With the implementation of the

NGAS, the ten thousand pesos

benchmark for acquisition of

inventories/non consumable

items is revoked.

On Inventories


37/122

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


38/122

Suspension of the Use of Supplies

Availability Inquiry (SAI) under theManual version of NGAS, and the

Provision of Additional Guidelines

per COA GAFMIS Circular Letter No.2003-006 dated November 24, 2003.

On Inventory Form


39/122

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


40/122

Inventory Custodian Slip

ICS No.: _______

Received by: Received from:

For Use of Property Unit

Quantity Unit Description

Signature Over Printed Name

__________________________________

Position/Office

__________________________________

Date

__________________________________


__________________________________

Position/Office

__________________________________

Date

__________________________________

INVENTORY CUSTODIAN SLIP

DEPARTMENT/AGENCY

Inventory

Item No.Unit Cost


41/122

No replacement shall be madefor damaged or unserviceable

items unless the item is returned

and accepted by the SupplyOfficer or authorized unit in the

agency.

On

Non- Consumable Items

of Inventories


42/122


43/122

1. Receipt of Allotment for the purchase of theOffice Supplies P 300T and Military Supplies P500T

Journal Entries

CreditDebit

AccountCode

Account Title

Entry in the RAOMO

based on the

Obligation Request


44/122

2. Receipt of Notice of Cash Allocation (NCA)/Notice of Transfer of Allocation (NTA)

Journal Entries

500T651Subsidy Income fromNational Government

CreditDebit

AccountCode

Account Title

Cash-National Treasury,

MDS108 500T


45/122

3. Obligation upon approval of the PurchaseOrder

Journal Entries

Entry in the RAOMO

CreditDebit

AccountCode

Account Title


46/122

4. Receipt of delivered inventories

Journal Entries

500T401Accounts Payable

CreditDebit

AccountCode

Account Title

Office Supplies Inventory

Military and Police Supplies

Inventory

155

164

300T

200T


47/122

5. Payment for the delivered inventories

Journal Entries

470T

30T

106

412

Cash-NationalTreasury, MDS

Due to NGAs

CreditDebit

AccountCodeAccount Title

401 500TAccounts Payable


48/122

6. Issuance of Inventories

Journal Entries

No Journal Entry

CreditDebit

AccountCode

Account Title


49/122

7. Receipt of the Report of Supplies andMaterials Issued

Journal Entries

100T

200T

151

153


Military and Police

Supplies Inventory

CreditDebit


751

753

100T

200

Office Supplies Expenses

Military and Police

Supplies Expenses

Journal Entries


50/122

8. Set up of liability of supply Officer for lostinventory in his responsibility/accountability

Journal Entries

40T455Other Deferred Credits

CreditDebit


123 40T

Due from Officers and

Employees

Journal Entries


51/122

9. Collection from Supply Officer for lost

inventories and Adjustment of DeferredCredits

Journal Entries

40T

40T459

411

Other Deferred Credits

Due to NationalTreasury

40T

CreditDebit


102

135

40T

CashCollecting

Officers


Employees


52/122

Journal Entries


53/122

11. If Request for Relief from Accountability isissued

Journal Entries

40T135Due from Officers andEmployees

CreditDebit


459 40TOther Deferred Credits


54/122

PROCUREMENT,

REQUISITIONand ISSUANCE of

PROPERTY, PLANT and

EQUIPMENT

(Under the NGAS)


55/122

Accounting Policies

For Property, Plant and Equipment

1. Construction of Assets

For assets under construction, theConstruction Period Theory shall beapplied for costing purposes.


56/122

Accounting Policies


Liquidated damages charged and paid bythe contractor shall be deducted from the

total cost of the project.

Any related expenses incurred during the

construction of the project, such astaxes, license fees, permit fees, clearancefees, etc. shall be capitalized, and thoseincurred after the construction shall form

part of operating cost.


57/122

Accounting Policies


2. Depreciation

The Straight Line Method of

depreciation shall be used.Depreciation shall start on themonth following the month of

purchase of the PPE and a residualvalue equivalent to ten percent ofthe purchase cost shall be set-up.


58/122

Accounting Policies


3. Reclassification of Assets

Serviceable assets no longer

being used in operation due totechnical innovations, as well asobsolete and unserviceable ones(pending disposal) shall bereclassified to account OtherAssetsand shall not be subject todepreciation.


59/122

Cost of Typewriter - 10,000

Accumulated Depreciation - 7,200

Net Book Value - 2,800

Debit Credit

Other Assets 2,800

Accum. Depreciation-Office

Equipment 7,200Office Equipment 10,000


60/122

Accounting Policies


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.


61/122

Accounting Policies


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


62/122

Accounting Policies


6. Transfer of PPE

a. To other government agencies shall be

recorded as donation

b. To regional office/operating unit shall berecorded as subsidy to regional office/

operating unit

A i P li i


63/122

Accounting Policies


7. Repairs and Maintenance

a. Repairs and maintenance of PPE including fully

depreciated ones shall be charged against the

appropriate Repair and Maintenance Expenseaccount

b. Repairs and maintenance of property owned by

another agency which are used by other agencyshall be shouldered by the using agency and

shall be treated as Other Maintenance and

Operating Expensesaccount (code 969).

P d i P


64/122


Preparation of the AnnualProcurement Plan/Program

Preparation of PurchaseRequest/Agency ProcurementRequest

Preparation of Obligation Request

(ObR) for the goods requisitioned

covered by an approved PR.

P d i P t


65/122


Preparation and Approval of Purchase

Order/Letter or Contract

Receipt of the Delivery of the

Goods/Property/ Supplies and Materials

procured

Inspection and Acceptance ofthe Deliveries

Preparation of Inspection & Acceptance

Report (IAR)


66/122

After the inspection and acceptance of

delivery, the DV shall be processed

Preparation of Disbursement Voucher



67/122

Requisition, Issuanceand Reporting ofProperty Issued


68/122

The ARE shall be signed and dated by thedesignated Property Officer under Received from

portion and the recipient or user of the property

shall acknowledge receipt by signing under

Receivedbyportion.

Acknowledgment Receipt

for Equipment


69/122

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

A k l d t R i t f


70/122

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 Issuedcontaining the No., Property No., and type of Receipt(original,renewal, transfer, etc.)

Acknowledgment Receipt forEquipment


71/122

For Property Unit Use

AO 6/15/02

ACKNOWLEDGMENT RECEIPT FOR EQUIPMENT

_______________________________________________

AgencyNo.:_______

Received by: Received from:


Position/Office

Date


Position/Office

Date

Property No. DescriptionUnitQuantity


72/122

Inventory Reports ofProperty andEquipment


73/122

Preparation of Waste

Material Report (WMR)

OriginalChief AccountantDuplicate CopyProperty Officers file

This shall be used to report allunserviceable 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:

WASTE MATERIALS REPORT


74/122

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 auctio

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:


75/122

The IIRUP shall be prepared in two (2) copies andsubmitted by the Accountable Officer to the

following:

Preparation of Inventory and

Inspection Report of Unserviceable

Property (IIRUP)

OriginalAccounting UnitDuplicate CopyProperty Officer


76/122

In cases where technical knowledge is

needed for the determination of the true

condition or actual current value of theproperty 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.)


77/122

When the property is sold, the record ofsales shall be accomplished. The IIRUP shall

be held until the sale is completed.

The original copy of the report shall bethe basis for adjusting the accounts affectedby means of a journal entry voucher.

Preparation of Inventory and Inspection

Report of Unserviceable Property(cont.)

INVENTORY AND INSPECTION REPORT OF UNSERVICEABLE PROPERTY


78/122

________________________________ ______________________________ ________________________ _________________

(Agency) (Name of Accountable Officer) (Designation) (Station)

D I S P O S I T I O N Apprais Official

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 havewitnessed the disposition of

the articles enumerated on

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 articleenumerated in this report and that

the disposition made thereof was,

I HEREBY request inspection, and disposition

pursuant to Section 79 of PD 1445, of the propertyenumerated above.

Desi nation of Accountable Officer Desi nation

_____________________________

(Signature of Accountable Officer) ______________________

(Name and Signature of Inspector (Name and Signature of Witness)

_____________________________

Preparation of Report on the Physical Count


79/122

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 threecopies, distributed as follows:

OriginalAccounting Unit

Duplicate CopySupply and Property Unit

Triplicate CopyInventory Committee file

It shall be submitted to the Auditor

concerned not later than January 31 of each year.

REPORT ON THE PHYSICAL COUNT OF PROPERTY PLANT AND EQUIPMENT

(Type of Property, Plant and Equipment)


80/122

For which ______________, ______________, _______________ is accountable, having ass umed such accountability on ________________.( ame of Accountable Officer) (Official Designation) (Agency/Office) (Date of Assumption)

BALANCE PER ON HAND

ARTICLE DESCRIPTION PROPERTY UNIT OF UNIT C AR D PER COUN T REMARKS

NUMBER MEASURE VALUE (Quantity) (Quantity) Quantity Value

SHORTAGE/OVERAGE

As of ________________________________

( yp p y, q p )

Records to be kept by the Account ing


81/122

Records to be kept by the Account ing

Un it -

PPE Ledger Cards - for

each property/equipment

Reco rds to be kept by the Supply Uni t -

Property Card - to be maintained foreach Property to record date of

purchase and accountability

Monitoring of Repairs and


82/122

g pMaintenance of PPE

Maintenance

Expenses

Amount

Accumulated

Amount

Transfers/

Date Ref. Particulars Costs Adjustments Book Value

PROPERTY, PLANT AND EQUIPMENT LEDGER CARD - SPECIFIC_______________________________________________

Depreciation

Agency

Description:

Propery, Plant and Equipment:

No.


83/122

DEPRECIATION

ACCOUNTING


84/122

Depreciation ccounting

Straight-line Method of depreciation shall

be used;

Depreciation shall start on the followingmonth after purchase of the property;

A residual value of 10% of the purchasecost shall be set up;


85/122

Serviceable assets that are no longerused shall not be charged anydepreciation; and

The useful life of the property, plant andequipment are revised pursuant to COACircular 2003-007 dated December 11,2003.

TABLE OF ESTIMATED USEFUL LIFE OF PROPERTY, PLANT

AND EQUIPMENT


86/122

AND EQUIPMENT

10

20

30

oWood

oMixed

oConcrete

Buildings those that are predominantly

10

20

40

10

oLand Improvements

oRunways/taxiways

oRailways

oElectrification, Power and Energy

Structures

Land Improvements

EstimatedUseful Life(in years)

Property, Plant and Equipment

EstimatedU f l LifP t Pl t d E i t


87/122

10

10

20

30

oLand

oBuilding

oWood

oMixed

oConcrete

Leasehold Improvements (Note 1)

Useful Life(in years)


oOffice EquipmentoFurniture and Fixtures

oIT Equipment

oLibrary Books

Office Equipment, Furniture and Fixtures

510

5

5

EstimatedUseful Life

( )



88/122

10

10

10

1010

7

10

1010

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

Equipmento Military and Police Equipment

o Sports Equipment

o Technical and Scientific Equipment

o Other Machineries and Equipment

Machineries and Equipment

(in years)

Estimated


89/122

Transportation Equipment

o Motor Vehicles

o Trains

o Aircraft and Aircraft Ground

Equipmento Watercrafts

o Other Transportation Equipment

7

10

1010

10

Note 1 The estimated useful life shall depend on thelength of the lease. It shall be the period of thelease or the estimated useful life of the assets, asgiven, whichever is shorter.

Property, Plant and Equipment Useful Life

(in years)

Other Property, Plant and Equipment 5

Adjustment in 2004 for understated


90/122

Adjustment in 2004 for understateddepreciation 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 - 25,710Understatement P 7,710

Adjustment in 2004 for understated


91/122

Adjustment in 2004 for understateddepreciation of Mixed Concrete Buildings -

Previous economic life - 30 yrs.Revised economic life - 20 yrs.

750,000

750,000

Journal Entry:

Prior Years AdjustmentsAccumulated Depreciation Buildings

Recorded depreciation for 10 yrs - P1,500,000

Adjusted depreciation - 2,250,000Understatement P 750,000


92/122

TRANSFER OF

PROPERTY AND

EQUIPMENT

Transfer of Property and


93/122

Transfer of Property andEquipment

a. To Other Agencies

Close the Property, Plant andEquipment account and thecorresponding accumulateddepreciation in the transferors book

and

record the same at net book valuein the recipient agency book.


94/122

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



95/122

ParticularsAcctCode

Debit Credit

Transferors Books (AFP-GHQ)

1) Donations

With SL In Kind

Accumulated DepreciationMotor

Vehicles

Motor VehiclesTo record transfer of motor vehicle

to DPWH

878

341

241

320,000

180,000

500,000


96/122

ParticularsAcctCode

Debit Credit

Transferees Books (DPWH)

Motor Vehicles

Income from Grants & Donations

SL In Kind

To record receipt of motor vehiclefrom AFP-GHQ

241

662

320,000

320,000

On Transfer of Property and


97/122

b. By Central Office to RegionalOffices (RO) or by RO toOperating Unit/Provincial Office of

the Department/ Agency

Transfer the Property, Plant andEquipment and the correspondingAccumulated Depreciation to the recipientoffice (RO/OU/PO).

On Transfer of Property andEquipment


98/122

ParticularsAcct

CodeDebit Credit

Transferors Books

(Central Office)

Subsidy to ROs/Staff Bureaus

Accumulated Depreciation Motor

Vehicles

Motor Vehicles

To record transfer of motor vehicle toRO

872

341

241

320,000

180,000

500,000


99/122

ParticularsAcctCode

Debit Credit

Transferees Books

(Regional Office)

Motor Vehicles

Subsidy from Central Office

Accumulated DepreciationMotor

Vehicles

To record receipt of mo tor

vehic le from CO

241

653

341

500,000

320,000

180,000

Property Loss


100/122

Property Loss

Immediately after theoccurrence of the loss, aninvestigation shall be conductedand result shall be furnished the

Accounting Unit and PropertyUnit.

Property Loss


101/122

Property Loss

In case of loss of property as a result of

accident or fortuitous event, a Report of

Losses shall be prepared by PropertyOfficer 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


102/122

Property Loss

Losses detected during the conduct of the

physical count and reconciliation of

records of the Property and AccountingUnits 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.


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Property Loss

Account Loss of Assets (code 961)

shall be recorded based on the Net Book

Value, and account Due from Officersand Employees (code 123) shall be

recorded based on sound value

(Replacement Cost less EstimatedDepreciation)


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Property Loss

The amount collected from the

accountable officer or the proceeds from

insurance shall be receipted by theagency and shall be remitted to the

National Treasury, unless the agency is

authorized by law to deposit the samewith authorized government depository

bank.

Case A Replacement Cost is


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higher than Acquisition Cost

Acquisition Cost (Motor Vehicle) - 400,000

Accumulated Depreciation (6 years) - 216,000


Replacement Cost - 600,000

Estimated Depreciation (6 years) - 324,000Sound 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


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Case A Replacement Cost is higherthan Acquisition Cost (cont )


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Cash - Collecting Officers


Employees

276,000

276,000

3. Collection from Accountable Officer

than Acquisition Cost (cont)

4. Adjustment of Deferred Account


Due to National Treasury

276,000

276,000



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276,000

276,000

5. Remittance of collection to National Treasury

- for NGAs



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Other Deferred CreditsDue 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 isl th A i iti C t


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lower than Acquisition Cost

Acquisition Cost (Office Equipment) - 100,000




Estimated Depreciation (3 years) - 22,500

Sound Value - 27,500

Loss of Assets

Accumulated Depreciation -

Office Equipment

55,000

45,000

100,000



Case B Replacement Cost is lower thanAcquisition Cost (cont)


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Employees


27,500

27,500

b. Set up the accountabil i ty of the concerned

officer/employee

2. Upon receipt of the certified copy of the denial of

request for Relief from Accountability

No entry

Acquisition Cost (cont)

Case B Replacement Cost is lower thanC ( )


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Due from Officers andEmployees

27,500

27,500

3. Collection from Accountable Officer


4. Adjustment of Deferred Account



27,500

27,500

Case C The amount is paid byi


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insurance

Acquisition Cost (Office Equipment) - 100,000




Estimated Depreciation (3 years) - 22,500

Sound Value - 27,500

Loss of Assets

Accumulated Depreciation -

Office Equipment

55,000

45,000

100,000



Case C To be paid by insurance


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Employees


27,500

27,500

b. Set up the accountabil i ty of the concerned

officer/employee

2. Relief is granted and loss is paid by insurance



Employees

27,500

27,500

Case B Replacement Cost is lower thanA i iti C t ( t )


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27,500

27,500

3. Collection from Insurance Company


Case B Replacement Cost is higherthan Acquisition Cost (cont )


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27,500

27,500

5. Remittance of collection to National Treasury -

for NGAs

Case B Replacement Cost is higherthan Acquisition Cost (cont)


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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


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as Discounts for Equipment Purchased in Bulk

llocation of cost for promotional items

If the promotional items are the same type of

equipment purchased, the total purchased cost shall beallocated to the total quantity ordered plus thepromotional 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


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given for Equipment Purchased

llocation 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 bebased 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 motorvehicles =P3,300,000

10 units = P330,000

COA Resolution No 2003-002


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COA Resolution No. 2003 002dated January 30, 2003

Subject: Delegating the authority to approvewrite-off of unliquidated cash advances andoutstanding/dormant/uncollectible accountsreceivables

AmountP1 million

Adjudication and Settlement Board composed

of the following officers:

Chairperson - Asst. Comm., Legal and

Adjudication OfficeMembers - Asst. Comm., National,

Corporate, and Local

Government Sectors, and

GAFMIS

Upon Receipt of Authority from COA fordropping of other dormant accounts:


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dropping of other dormant accounts:

Note:This shall be recorded in the General Journal

thru a JEV and in the Registry of AccountsWritten-Off.

xx

xx

xx

xx

xx

xx

Journal Entry:

Loss of Assets


Military and Police Supplies

InventoryOther Office Supplies

xx


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