Tuesday, May 21, 2019

Old and New Government Accounting Distinguished

grey AND NEW GOVERNMENT ACCOUNTING SYSTEM DISTINGUISHED OLD NEW score Entries * Manual * Maintains numerous special journals with several wide columns * Computerized * Simplified and updated accounting system Commission on Audit ledgerizes the appropriation and allocation released by the Department of Budget & Management No monthlong journalizes the appropriation and allotment released by the Department of Budget & Management Bureau of Treasury Accounting rules & regulations pertaining to cash operations, collections, remittances and disbursements atomic number 18 issued by the COA, jointly or with the concurrence of Department of Finance and the Department of Budget & Management. Bureau of Treasury maintains the Registry of NCA & Replenishments (RENREP) for control & observe of NCA bank transfers released by the Department of Budget & Management. Government Agency * Does not journalize the Notice of specie Allocation (NCA) it receives which in effect, identifies the share of effect in the income of the discipline government. * journalizes its appropriations and allotments. * Now journalizes the Notice of Cash Allocation (NCA) it receives which in effect, identifies the share of agency in the income of the national government. * No longer journalize its appropriations and allotments instead it shall maintain the ff. Registry of Allotments and Obligations- personalised Services (RAOPS), Registry of Allotments and Obligations- Maintenance and other Operating Expenses (RAOMO), Registry of Allotments and Obligations- Capital Outlay (RAOCO), Registry of Allotments and Obligations- Financial Expenses (RAOFE). Basis of Accounting * Expenses * Income and Revenue Accrual & Cash Basis shall be taken up in the accounts of that year recognised when earned except in case of taxes, where revenues that remain unrealized at the next of the fiscal year shall not be recognized Modified Accrual Basis recognized when incurred & reported in the F/S shall be recogni zed on accrual basis except for transactions where accrual basis is impractical or when other methods are required by law blood line All income accruing to the agencies shall accrue to the General Fund of the government and all money collected on any tax levied for a special purpose shall be treated as Special Fund. Adopts one fund concept and that is the General Fund Chart of Accounts & Coding Structure * Six-digit account numbering system * on that point are contingent accounts. * Expenditures charged to capital outlay are classified as expenses. * Three-digit account numbering system * There are no longer contingent accounts. * Expenditures charged to capital outlay are classified as expenses. Books of Original Entries Journal of Collections & Deposits, Journal of Disbursements, Journal of Checks, Issued, Journal & Analysis of Obligations & Journal of Bills are being used no longer used, only the General Journal shall be used namely (1) Cash Receipt Journal, (2) Cash Journal , (3) Check Disbursements Journal and (4) Cash Disbursements Journal Trial Balance Four-money column listings of all general ledger accounts used in the operations of the agency, whether, the accounts are with or without balance Two-money column Financial Expenses Recognized as components of Maintenance & Other Operating Expenses (MOOE) Shall be separately classified from Maintenance & Other Operating Expenses (MOOE) Contingent Accounts Used to bring down claims for accounts in dispute No longer be used, all financial transactions shall be recorded using the appropriate accounts Corollary Entry & Negative Journal Entries Being used Discontinued Journals used Cash Journal and General Journal are used together with the ledgers by both books. With the implementation of the computerized agency accounting system, only the General Journal shall be used together with the ledgers by both books.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.