ACC 111 | Accounting for Government and Non-Profit Organizations
Student Activity Sheets Module #4
Name: _________________________________________________________________ Class number: _______
Section: ____________ Schedule: ________________________________________ Date: ________________
Lesson Title: The Government Accounting Process (Part 1) Materials:
Lesson Objectives: Textbook
At the end of this module, I should be able to:
1. State the books of Accounts and Registries used in recording References:
the government transactions. Millan, Z. V. (2018). Government
2. Give the government transactions pro-forma entries. Accounting & Accounting for Non-
Profit Organizations.
Punzalan, A. & Cardona, M (2014).
Government Accounting
Productivity Tip:
“Work gives you meaning and purpose and life is empty without it.” -Stephen Hawking
A. LESSON PREVIEW/REVIEW
1) Introduction (2 mins)
The government accounting process comprises the activities of analyzing, recording, classifying,
summarizing and communicating transactions involving the receipt and disposition of government funds
and property, and interpreting the results thereof. This process is similar to that of a business entity,
except that it incorporates budgetary controls, such as recording in budget registries and preparing
periodic budget accountability.
2) Activity 1: What I Know Chart, part 1 (3 mins)
What I Know Questions: What I Learned (Activity 4)
Enumerate the different budget
registries.
Enumerate the different classifications
of expenditures by object.
B. MAIN LESSON
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ACC 111 | Accounting for Government and Non-Profit Organizations
Student Activity Sheets Module #4
Name: _________________________________________________________________ Class number: _______
Section: ____________ Schedule: ________________________________________ Date: ________________
1) Activity 2: Content Notes (13 mins)
Books of Accounts and Registries:
1. Journals
a. General Journal
b. Cash Receipts Journal
c. Cash Disbursements Journal
d. Check Disbursements Journal
2. Ledgers
a. General Ledgers
b. Subsidiary Ledgers
3. Registries – used to monitor the budget
a. Registries of Revenue and Other Receipts (RROR) — used to monitor the budgeted amounts, actual
collections and remittances of revenue and other receipts.
b. Registry of Appropriations and Allotments (RAPAL) — used to monitor appropriations and
allotments. This is to ensure that allotments will not exceed appropriations.
c. Registries of Allotments, Obligations and Disbursements (RAOD) — used to monitor the allotments
received, obligations incurred against the corresponding allotment, and the actual disbursements
made. This is to ensure that obligations incurred will not exceed allotments while actual
disbursements will not exceed the obligations incurred.
d. Registries of Budget, Utilization and Disbursements (RBUD) - used to record the approved special
budget and the corresponding utilizations and disbursements charged to retained income.
Separate RBUDs are also maintained for each object of expenditures.
Object of Expenditures
The classifications of expenditures by object are as follows:
a) Personnel Services (PS) — pertain to all types of employee benefits, e.g., salaries, bonuses, allowances,
cash gifts, etc.
b) Maintenance and Other Operating Expenses (MOOE) - pertain to various operating expenses other than
employee benefits and financial expenses, e.g., travel, utilities, supplies, etc.
c) Financial Expenses (FE) — pertain to finance costs, e.g., interest expense, bank charges, etc. Financial
expenses also include losses on foreign exchange transactions.
d) Capital Outlays (CO) — pertain to capitalizable expenditures, e.g., expenditures on the construction of
public infrastructures, acquisition costs of equipment, etc.
The Government Accounting Cycle
1. Appropriation
2. Allotment
This document is the property of PHINMA EDUCATION
ACC 111 | Accounting for Government and Non-Profit Organizations
Student Activity Sheets Module #4
Name: _________________________________________________________________ Class number: _______
Section: ____________ Schedule: ________________________________________ Date: ________________
3. Incurrence of Obligation
4. Disbursement of Authority – NCA
5. Disbursements
6. Billings, Collections and Remittances
7. Unadjusted Trial Balance
8. Adjusting Entries
9. Closing Entries
10. Preparation of Financial Statements
Transaction Recording in
Registries & other Records Journal & Ledger
(a) Appropriation RAPAL None
(b) Allotment RAPAL and appropriate RAODs None
(c) Incurrence of Obligations ORL and appropriate RAODs None
RANCA Cash-MDS Regular xx
(d) NCA
Subsidy from NG xx
updating of ORS and Expense/Asset xx
appropriate RAODs Payable xx
(e) Disbursements
Payable xx
Cash-MDS Regular xx
updating of ORS and Cash -TRA xx
appropriate RAODs Subsidy from NG xx
(f) Tax Remittance Advise
Due to BIR xx
Cash – TRA xx
RROR, RCD/CRRegs Accounts Receivable xx
Cash – CO xx
Cash – CO xx
(g) Billings, Collections &
Accounts Receivable xx
remittances
Cash-Treasury/Agency
Deposit Regular xx
Cash – CO xx
RANCA Subsidy from NG xx
(h) Reversion of Unused NCA
Cash-MDS, Regular xx
This document is the property of PHINMA EDUCATION
ACC 111 | Accounting for Government and Non-Profit Organizations
Student Activity Sheets Module #4
Name: _________________________________________________________________ Class number: _______
Section: ____________ Schedule: ________________________________________ Date: ________________
2) Activity 3: Skill-building Activities (with answer key) (18 mins + 2 mins checking)
True or False:
______________ 1. Technically, only Journals and Ledgers are accounting records; Registries are budget records.
______________ 2. Separate accounting records and budget registries maintained for each cluster.
______________ 3. Government entities and business entities use the term “obligation” or the phrase “incurrence of
obligation” similarly.
______________ 4. The various registries maintained by government entities primarily serve as internal control for
controlling and monitoring the conformance of actual results with the approved budget.
______________ 5. A check disbursement is normally recorded as a credit to the “Cash-Modified Disbursement
System (MDS), Regular” account.
______________ 6. Both the ORS and RAOD are updated each time an obligation is incurred, a payable is recorded
for the obligation incurred, and disbursements are made to settle the recorded payables.
______________ 7. At the end of each year, an adjustment is made to revert any unused NCA of a government
entity.
______________ 8. The GAM for NGAs requires the Collecting Officer to issue an official receipt to acknowledge the
receipt of the Notice of Cash Allocation.
______________ 9. The entry to record the reversion of unused NCA at the end of the period is the exact opposite
of the entry used to record the receipt of NCA.
______________ 10. The remittance of amounts withheld to the other government agencies, such as the BIR, BOC,
GSIS, Philhealth and PAG-IBIG, is done through the TRA.
3) Activity 4: What I Know Chart, part 2 (2 mins)
It’s time to answer the questions in the “What I Know Chart” in Activity 2. Write your answers in the “What I
Learned” column. Let’s see your improvement!
4) Activity 5: Check for Understanding (5 mins)
Circle the best answer.
1. The various registries maintained by government entities are considered, technically, as
a. Books of accounts c. General Ledgers
b. Budget records d. Log books
2. Which of the following is recorded in the Obligation Request and Status (ORS)?
a. Receipt of notice of appropriation
b. Receipt of allotment from the DBM
c. Receipt of Notice of Cash Allocation from the DBM
d. Entering into employment contracts with employees
3. This type of expenditure pertains to all types of employee benefits
a. Personnel Services (PS)
This document is the property of PHINMA EDUCATION
ACC 111 | Accounting for Government and Non-Profit Organizations
Student Activity Sheets Module #4
Name: _________________________________________________________________ Class number: _______
Section: ____________ Schedule: ________________________________________ Date: ________________
b. Maintenance and Other Operating Expenses (MOOE)
c. Financial Expenses (FE)
d. Capital Outlays (CO)
4. Entity A, a government entity, made disbursements for the travelling expenses of its personnel. These
expenditures are most likely classified as
a. Personnel Services (PS)
b. Maintenance and Other Operating Expenses (MOOE)
c. Financial Expenses (FE)
d. Capital Outlays (CO)
5. Which of the following is charged with the responsibility of keeping the general accounts, and related
documents of the Government?
a. COA c. NGAs
b. BTr d. DBM
6. A journal entry a to the "Cash Modified Disbursement System (MDS), Regular" account will likely be
recorded in the
a. General Journal c. Cash Disbursements Journal
b. Special Journal d. Check Disbursements Journal
7. Which of the following accounts is debited when a government entity remits its collections to the National
Treasury?
a. Cash-Tax Remittance Advice
b. Cash-Modified Disbursement System (MDS), Regular
c. Cash-Treasury/Agency Deposit, Regular
d. Cash — Collecting Officers
8. Which of the following accounts is credited when a government entity remits taxes withheld to the BIR?
a. Cash-Tax Remittance Advice
b. Cash-Modified Disbursement System (MDS), Regular
c. Cash-Treasury/Agency Deposit, Regular
d. Cash — Collecting Officers
9. Which of the following accounts is credited when a government entity remits contributions to the GSIS,
PhilHealth and Pag-IBIG?
a. Cash-Tax Remittance Advice
b. Cash-Modified Disbursement System (MDS), Regular
c. Cash-Treasury/Agency Deposit, Regular
d. Cash — Collecting Officers
10. Obligations recorded in the registries but not yet in the accounting book are referred to as
a. Not Yet Due and Demandable
b. Contingent liabilities
c. Erroneous recording
This document is the property of PHINMA EDUCATION
ACC 111 | Accounting for Government and Non-Profit Organizations
Student Activity Sheets Module #4
Name: _________________________________________________________________ Class number: _______
Section: ____________ Schedule: ________________________________________ Date: ________________
d. Unpaid obligations
C. LESSON WRAP-UP
1) Activity 6: Thinking about Learning (5 mins)
Work tracker. Congratulations! You have finished the module for today! Shade the number of the module that
you finished.
First Period Second Period Third Period
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
How do you feel today?
I feel (unsatisfactory/satisfactory/excellent) because
_______________________________________________________________.
What are your challenges in learning the concepts in this module? If you do not have challenges, what is your
best learning for today?
______________________________________________________________________________________________________________________
______________________________________________________________________________________________________________________
What are the questions/thoughts you want to share to your teacher today?
______________________________________________________________________________________________________________________
______________________________________________________________________________________________________________________
KEY TO CORRECTIONS
Activity 1 and 4.
1.
a. Registries of Revenue and Other Receipts (RROR)
b. Registry of Appropriations and Allotments (RAPAL)
c. Registries of Allotments, Obligations and Disbursements (RAOD)
d. Registries of Budget, Utilization and Disbursements (RBUD)
2.
a) Personnel Services (PS)
b) Maintenance and Other Operating Expenses (MOOE)
c) Financial Expenses (FE)
d) Capital Outlays (CO)
Activity 3
This document is the property of PHINMA EDUCATION
ACC 111 | Accounting for Government and Non-Profit Organizations
Student Activity Sheets Module #4
Name: _________________________________________________________________ Class number: _______
Section: ____________ Schedule: ________________________________________ Date: ________________
1. True 7. True
2. True 8. False. Official receipt shall not be issued since the
3. False. The term obligation is used differently by receipt of NCA does not constitute a collection that is
business entities and government. Government used recordable in the Cash Receipts Journal but only in
the term to refer to “Not yet due and Demandable.” General Journal.
4. True 9. True
5. True 10. True
6. True
Activity 5
1. B 6. A
2. D 7. C
3. A 8. A
4. B 9. B
5. A 10. A
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