Chapter 1. THE BOOKS OF ACCOUNTS, REGISTRIES AND CASH RECORDS Sec. 01. Books of Accounts.

The books of accounts used by the local government unit shall consist of the following: 1. records for recording transactions in chronological order, known as the journals or books of original entry; and 2. records for classifying and summarizing the effects of the transactions on individual accounts, known as ledgers or books of final entry. Sec. 02. Books of Original Entry. Books of original entry or journals, shall be used to record in time sequence, financial transactions and information presented in duly certified and approved accounting documents. The books of original entry shall consist of the following journals: 1. Journal 2. Journals a. Cash Receipts Journal b. Check Disbursements Journal c. Cash Disbursements Journal General Special

The basis of recording in the journals shall be the Journal Entry Voucher (JEV). Sec. 03. General Journal. This journal (Annex 1) shall be used to record all transactions which can not be entered in the special journals. It provides columns for the date, the JEV number, particulars which give explanation for the transactions recorded, the account code used, posting reference and the debit and credit amount. Sec. 04. Special Journals. The special journals are specifically designed to record transactions which are repetitive in
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nature. Special columns are provided to facilitate summation and postings in the general ledger. Sec. 05. Cash Receipts Journal (CRJ). This journal (Annex 2) is used to record all collections and deposits reported during the month. It provides columns for the date, RCD number, JEV number, name of collecting officer, collections (debit and credit), deposits (debit and credit) and sundry columns in the collections and deposits columns (debit and credit). Sec. 06. Check Disbursements Journal (CkDJ). This journal (Annex 3) is used to record check payments made by the treasurer/cashier. It provides columns for the date, RCI number, JEV number, payee, debit and credit columns for appropriate disbursements accounts and sundry columns (debit and credit). Sec. 07. Cash Disbursements Journal (CDJ). This journal (Annex 4) is used to record all payments in cash by disbursing officers out of their cash advances. It provides columns for the date, reference/RD number, JEV number, accountable officer, debit and credit columns for appropriate disbursements accounts and sundry columns (debit and credit). Sec. 08. Books of Final Entry. The books of final entry are the General Ledger and Subsidiary Ledgers. Sec. 09. General Ledger (GL). The General Ledger (Annex 5) is a book of final entry containing accounts arranged in the same sequence as the chart of accounts. Totals of columns in the special journals and the individual entries in the General Journal are directly posted in this book. At the end of each month, the accounts are footed and at the end of the year, these are totaled, ruled and closed and the balance extracted to serve as the opening balance of the new fiscal year. Sec. 10. Subsidiary Ledger (SL). The Subsidiary Ledger (Annex 6) is a book of final entry containing the details or breakdown of the balances of the controlling account appearing in the General ledger. Postings to the subsidiary ledgers generally come from the source documents. Examples of general ledger accounts which has subsidiary ledgers are Cash Disbursing Officers, Cash in Bank Local Currency Current Accounts, Accounts Receivable, Accounts Payable, Special Accounts in the General Fund, etc. The totals of the

subsidiary ledger balances shall be reconciled to their respective control account at the end of every month. Sec. 11. Supplies Ledger Card (SLC). The Supplies Ledger Card (Annex 7) is a subsidiary ledger to be maintained by the accounting office for each type of supplies, crops and other inventory items, to record acquisition, issuance and disposal. The SLC shall be the basis in filling up the Supplies Availability Inquiry (SAI). Sec. 12. Work, Other Animals and Breeding Stocks Ledger Card. The Work, Other Animals and Breeding Stocks Ledger Card (Annex 8) is a subsidiary ledger to be kept for each large cattle which includes cows, horses, mules, asses, carabaos and other members of the bovine family, acquired by purchase or raised which attained the age of one year. Small animals like pigs, goats, etc. shall also be singly recorded in this form and taken-up as inventory upon reaching marketable age or are ready for use. Sec. 13. Property, Plant and Equipment Ledger Card (PPELC). The Property, Plant and Equipment Ledger Card (Annex 9) is a subsidiary ledger to be kept for each class of property, plant and equipment which shall record the acquisition, description, custody, estimated life, rate of depreciation, disposal and other information about the property, plant and equipment, based on the source documents of the transactions. Sec. 14. Investment Ledger Card (ILC). The Investment Ledger Card (Annex 10) is a subsidiary ledger to be kept for each type of investment which shall record the number of shares acquired, acquisition cost and other relevant information. Sec. 15. Real Property Ledger Card (RPLC). The Real Property Ledger Card (Annex 11) is a subsidiary ledger card to be kept for each real property (land) which record the property description, location, acquisition cost, additions, and disposition. Sec. 16. Construction in Progress Ledger Card (CIPLC). The Construction in Progress Ledger Card (Annex 12) is a subsidiary ledger card to be kept for each construction in progress which records the amount paid per billing of the contractor in case of

construction by straight contract and the amount paid for materials, labor and overhead in case of construction by administration. Sec. 17. Registries. Registries are accounting records which shall be maintained to monitor accounts/assets not recorded in the books of accounts. Sec. 18. Registry of Appropriations, Allotments and Obligations (RAAO). The Registry of Appropriations, Allotments and Obligations is prepared per function/program/project, allotment class, current/continuing appropriations and fund. This record shall be maintained by the accounting office to monitor appropriations, allotments received and the obligations incurred against said allotments. The balance is extracted every time an entry is made to prevent incurrence of obligations in excess of allotments received or approved appropriations. The RAAOs are as follows: Registry of Appropriations, Allotments and Obligations Capital Outlay (RAAOCO); Registry of Appropriations, Allotments and Obligations Maintenance and Other Operating Expenses (RAAOMO); Registry of Appropriations, Allotments and Obligations Personal Services (RAAOPS); and Registry of Appropriations, Allotments and Obligations Financial Expenses (RAAOFE). Sec. 19. Registry of Appropriations, Allotments and Obligations Capital Outlay (RAAOCO). The Registry of Appropriations, Allotments and Obligations Capital Outlay (Annex 13) shall be used to record appropriations, allotments received and obligations incurred for capital outlay. Sec. 20. Registry of Appropriations, Allotments and Obligations Maintenance and Other Operating Expenses (RAAOMO). The Registry of Appropriations, Allotments and Obligations Maintenance and Other Operating Expenses (Annex 14) shall be used to record appropriations, allotments received and obligations incurred for purchase of inventories and expenses classified under Maintenance and Other Operating Expenses in the Chart of Accounts.

Sec. 21. Registry of Appropriations, Allotments and Obligations Personal Services (RAAOPS). The Registry of Appropriations, Allotments and Obligations Personal Services (Annex 15) shall be used to record appropriations, allotments received and obligations incurred for expenses classified under Personal Services in the Chart of Accounts. Sec. 22. Registry of Appropriations, Allotments and Obligations Financial Expenses (RAAOFE). The Registry of Appropriations, Allotments and Obligations Financial Expenses (Annex 16) shall be used to record appropriations, allotments received and obligations incurred for expenses classified under Financial Expenses in the Chart of Accounts. Sec. 23. Registry of Public Infrastructures (RPI). The Registry of Public Infrastructures (Annex 17) shall be used to record completed infrastructures for use of the general public. A separate Registry shall be maintained for each class of property or asset, as follows: Plazas, Parks and Monuments Roads Highways and Bridges Harbors, Seawalls, River Wall and Others Runways Railways Waterways, Aqueduct, etc. Irrigation canals and laterals Reforestation Projects Other Public Infrastructures.

Sec. 24. Registry of Reforestation Project (RRP). The Registry of Reforestation Project (Annex 18) shall be used to record expenses incurred on reforestation projects. Sec. 25. Cash Records. Cash Records shall be used to record collections, deposits, withdrawals and disbursements of cash. It shall be maintained by the Accountable Officers. Sec. 26. Cashbook Cash in Treasury. Cashbook for Cash in Treasury (Annex 19) shall be used to record collections (Debit column) and deposits to the bank (Credit column) based on the RCD. The cashbook shall be maintained by the Treasurer by fund and shall be updated and balanced daily. The Accountable Officer
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shall, at the end of the month or when required to do so by proper competent authority, rule and foot the cashbook. He shall likewise accomplish the following certification in the cashbook: I HEREBY CERTIFY that the foregoing is a correct and complete record of the cash transactions had by me in my capacity as Treasurer/Cashier of ___________ during the period from ____________, 20___ to ___________, 20__, inclusive, as indicated in the corresponding columns. Signature Over Printed Name ________________, 20___ Deposits shall also be recorded in the debit column of the Cashbook Cash in Bank. Sec. 27. Cashbook Cash in Bank. Cashbook for Cash in Bank (Annex 20) shall be used to record deposits of collections (Debit column) and withdrawals from the bank thru issuance of checks (Credit column). The cashbook shall be maintained by bank account and by fund and shall be updated and balanced daily. The Accountable Officer shall, at the end of the month or when required to do so by proper competent authority, rule and foot the cashbook. He shall likewise accomplish the following certification in the cashbook: I HEREBY CERTIFY that the foregoing is a correct and complete record of the cash transactions had by me in my capacity as Treasurer/Cashier of ___________ during the period from ____________, 20___ to ___________, 20__, inclusive, as indicated in the corresponding columns. Signature Over Printed Name ________________, 20___ Sec. 28. Cashbook Cash Advances. The accountable officer shall maintain a cashbook for cash advances (Annex 21) to record the cash advances received (Debit column) and payments, refunds and adjustments (Credit column) and the balance (Balance
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column). The Accountable Officer shall, at the end of the month or when required to do so by proper competent authority, rule and foot the cashbook. He shall likewise accomplish the following certification in the cashbook: I HEREBY CERTIFY that the foregoing is a correct and complete record of the cash transactions had by me in my capacity as Disbursing Officer of ___________ during the period from ____________, 20___ to ___________, 20__, inclusive, as indicated in the corresponding columns. Signature Over Printed Name ________________, 20___