ALDERSGATE COLLEGE ACCOUNTING FOR GOVERNMENT, NOT-FOR-PROFIT ENTITIES AND SCHOOL

OF BUSINESS AND ACCOUNTANCY SPECIALIZED INDUSTRIES

MODULE 3 THE NEW STANDARD CHART OF ACCOUNTS

OVERVIEW

The Chart of Accounts provides the framework within which the accounting records are
constructed. It is defined as a list of general ledger accounts consisting of real and nominal
accounts prepared for the use of national and local government units.

Under the New Government Accounting System, a new chart of accounts and coding structure
with a three-digit account numbering system shall be adopted. As part of the continuing effort of
Commission on Audit to simplify government accounting and implement the Computerized New
Government Accounting System, the provisions of COA Circular Nos. 2002-002 and 2002-003
dated June 18 and 20, 2002, respectively, are modified or revised by COA Circular No. 2003-001.

Elements of Financial Statements

Elements of Financial Statements of government agencies are those elements that relate to the
status or measurement of financial position and measurement of performance of government
agencies, which are relevant to decisions that would require the commitment of resources. Those
elements directly related to the measurement of financial position as shown in the Balance Sheet
are assets, liabilities and equity. The elements directly related to the measurement of performance
which are shown in the Statement of Income and Expenses are revenue/income and expenses.
The definitions of the different elements are as follows:

1. Assets - economic resources of an agency that are recognized and measured in

conformity with generally accepted accounting principles. Assets also include certain
deferred charges that are not resources but that are recognized and measured in
conformity with generally accepted accounting principles.

2. Liabilities - economic obligations of an agency that are recognized and measured in

conformity with generally accepted accounting principles. Liabilities also include
certain deferred credits that are not obligations but that are recognized and measured
in conformity with generally accepted accounting principles.

3. Equity - residual interest of the government in an agency which is the excess of the
agency’s assets over its liabilities.

4. Revenue/Income - increase in economic benefits during the accounting period in the

form of inflows or enhancements of assets or decrease of liabilities that result in
increases in equity.

5. Expenses - decrease in economic benefits during an accounting period in the form of

outflows or depletions of assets or incurrence of liabilities that result in decreases in
equity.

Page 1 of 24
ALDERSGATE COLLEGE ACCOUNTING FOR GOVERNMENT, NOT-FOR-PROFIT ENTITIES AND SCHOOL
OF BUSINESS AND ACCOUNTANCY SPECIALIZED INDUSTRIES
Balance Sheet Accounts

The balance sheet accounts consist of assets, liabilities and equity. These are classified into the
following:

Assets
Current Assets
Cash
Receivables
Inventories
Prepaid Expenses
Other Current Assets
Long-Term Investments
Property, Plant and Equipment
Other Assets

Liabilities
Current Liabilities
Long-Term liabilities
Other Liabilities

Equity
Government Equity

Revenue/Income and Expenses Accounts

The revenue/income and expenses consist of the following:

Revenue/Income

1. General Income Accounts - This account classification encompasses all types of

revenue/income generated by government agencies in the exercise of their
administrative and regulatory function, income from public enterprises/investments,
and income from grants and donations including subsidies.

2. Tax Revenue Accounts - This account classification encompasses all taxes imposed
on taxable income, properties, and use or sale of goods and services, taxes on
international trade and transactions and their taxes including fines and penalties. Also
included under these accounts are income generated from local government, schools
and hospital operations.

Expenses

Page 2 of 24
ALDERSGATE COLLEGE ACCOUNTING FOR GOVERNMENT, NOT-FOR-PROFIT ENTITIES AND SCHOOL
OF BUSINESS AND ACCOUNTANCY SPECIALIZED INDUSTRIES
1. Personal Services (PS) - These account include basic pay, all authorized allowances,
bonus, cash gifts, incentives and other personnel benefits of officials and employees
of the government.

2. Maintenance and Other Operating Expenses (MOOE) - These accounts include

expenses necessary for the regular operations of an agency like, among others,
traveling expenses, training and seminar expenses, water, electricity, supplies
expense, maintenance of property, plant and equipment, and other maintenance and
operating expenses.

3. Financial Expenses (FE) - These account include bank charges, interest expense,
commitment charges, documentary stamp expense and other financial charges. It also
includes those losses incurred relative to foreign exchange transactions and debt
service subsidy to GOCCs.

Intermediate Accounts

These are accounts, which are closed ultimately to the Government Equity account at the end of
the accounting period. These include Cost of Goods Sold, Income and Expense Summary, Prior
Years’ Adjustments, Retained Operating Surplus, Subsidy to Regional Offices/Staff Bureaus and
Subsidy to Operating Units, among others.

Account Codes

The Revised Chart of Accounts, per Circular No. 2003-001, consists of three digit codes grouped
as follows:

Accounts Account Codes

Assets 100-299
Asset Contra Accounts 300-399
Liabilities 400-499
Equity 500-549
Income 550-699
Tax Revenue
National Taxes 550-579
Local Taxes 580-599
General Income
Permits and Licenses 600-609
Service Income 610-629
Business Income 630-649
Subsidy Income 650-659
Other Income 660-679
Gain or Loss Accounts 680-699

Page 3 of 24
ALDERSGATE COLLEGE ACCOUNTING FOR GOVERNMENT, NOT-FOR-PROFIT ENTITIES AND SCHOOL
OF BUSINESS AND ACCOUNTANCY SPECIALIZED INDUSTRIES

Expenses 700-999
Personal Services 700-749
Maintenance & Other Operating Expenses 750-969
Financial Expenses 970-999

THE CHART OF ACCOUNTS

Account
Account Title
Code CURRENT ASSETS

CASH
Cash on Hand
101 Cash in Vault
102 Cash - Collecting Officers
103 Cash - Disbursing Officers
104 Petty Cash Fund
Cash in National Treasury
108 Cash - National Treasury, Modified Disbursements System (MDS)
Cash in Bank - Local Currency
110 Cash - Bangko Sentral ng Pilipinas
111 Cash in Bank – Local Currency, Currency Account
112 Cash in Bank – Local Currency, Savings Account
113 Cash in Bank – Local Currency, Time Deposits
Cash in Bank - Foreign Currency
114 Cash - Bangko Sentral ng Pilipinas
115 Cash in Bank - Foreign Currency, Current Account
116 Cash in Bank - Foreign Currency, Savings Account
117 Cash in Bank - Foreign Currency, Time Deposits

RECEIVABLES
Receivable Accounts
121 Accounts Receivable
301 Allowance for Doubtful Accounts
122 Note Receivable
123 Due from Officers and Employees
124 Loans Receivable - GOCCs
125 Loans Receivable - LGUs
126 Loans Receivable - Others

Page 4 of 24
ALDERSGATE COLLEGE ACCOUNTING FOR GOVERNMENT, NOT-FOR-PROFIT ENTITIES AND SCHOOL
OF BUSINESS AND ACCOUNTANCY SPECIALIZED INDUSTRIES

127 Real Property Tax Receivable

128 Special Education Tax Receivable
129 Interests Receivable
130 Currency Swap Receivable
Inter-Agency Receivables
131 Due from National Treasury
136 Due from NGAs
137 Due from GOCCs
138 Due from LGUs
139 Due from NGOs/POs
Intra-Agency Receivables
141 Due from Central Office
142 Due from Regional Offices/Staff Bureaus
143 Due from Operating Units
144 Due from Other Funds
Other Receivables
146 Receivables -
Disallowances/Charges
149 Other Receivables

INVENTORIES
Materials
151 Raw Materials Inventory
152 Work-in-Process Inventory
153 Finished Goods Inventory
154 Merchandise Inventory
Supplies
155 Office Supplies Inventory
156 Accountable Forms Inventory
157 Animal/Zoological Supplies Inventory
158 Food Supplies Inventory
159 Drugs and Medicines Inventory
160 Medical, Dental and Laboratory Supplies Inventory
161 Gasoline, Oil and Lubricants Inventory
162 Agricultural Supplies Inventory
163 Textbooks and Instructional Materials Inventory
164 Military and Police Supplies Inventory

Page 5 of 24
ALDERSGATE COLLEGE ACCOUNTING FOR GOVERNMENT, NOT-FOR-PROFIT ENTITIES AND SCHOOL
OF BUSINESS AND ACCOUNTANCY SPECIALIZED INDUSTRIES

165 Other Supplies Inventory

166 Confiscated/Abandoned/Seized Goods Inventory
167 Spare Parts Inventory
168 Construction Materials Inventory
Agricultural, Fishery and Forestry Products
169 Livestock Inventory
170 Crops and Fruits Inventory
176 Other Agricultural, Fishery

PREPAYMENTS
177 Prepaid Rent
178 Prepaid Insurance
179 Prepaid Interest
180 Deposit on Letters of Credit
181 Advances to Contractors
182 Deferred Charges
185 Other Prepaid Expenses
OTHER CURRENT ASSETS
186 Guaranty Deposits
189 Other Current Assets

INVESTMENTS
INVESTMENTS IN SECURITIES
191 Investments in Treasury Bills
192 Investments in Stocks
193 Investments in Bonds
197 Other Investments and Marketable Securities
SINKING FUND
198 Sinking Fund

PROPERTY, PLANT AND EQUIPMENT

LAND AND LAND IMPROVEMENTS
201 Land
202 Land Improvements
302 Accumulated Depreciation - Land Improvements 203
Runways/Taxiways
303 Accumulated Depreciation - Runways/Taxiways

Page 6 of 24
ALDERSGATE COLLEGE ACCOUNTING FOR GOVERNMENT, NOT-FOR-PROFIT ENTITIES AND SCHOOL
OF BUSINESS AND ACCOUNTANCY SPECIALIZED INDUSTRIES

204 Railways
304 Accumulated Depreciation - Railways
205 Electrification, Power and Energy Structures
305 Accumulated Depreciation - Electrification. Power and Energy
Structures
BUILDINGS
211 Office Buildings
311 Accumulated Depreciation - Office Buildings
212 School Buildings
312 Accumulated Depreciation - School Buildings
213 Hospitals and Health Centers
313 Accumulated Depreciation - Hospitals & Health Centers
214 Markets and Slaughterhouses
314 Accumulated Depreciation - Markets & Slaughterhouses
215 Other Structures
315 Accumulated Depreciation - Other Structures
LEASEHOLD IMPROVEMENTS

218 Leasehold Improvements, Land

318 Accumulated Depreciation - Leasehold Improvements,
Land
219 Leasehold Improvements, Buildings
319 Accumulated Depreciation - Leasehold Improvements,
Buildings
220 Other Leasehold Improvements
320 Accumulated Depreciation - Other Leasehold Improvement
OFFICE EQUIPMENT. FURNITURE AND
FIXTURES

221 Office Equipment

321 Accumulated Depreciation - Office Equipment
222 Furniture and Fixtures
322 Accumulated Depreciation - Furniture and Fixtures
223 IT Equipment and Software
323 Accumulated Depreciation - IT Equipment
224 Library Books
324 Accumulated Depreciation - Library Books
MACHINERY AND EQUIPMENT

226 Machinery
326 Accumulated Depreciation - Machinery
227 Agricultural, Fishery and Forestry Equipment
Accumulated Depreciation - Agricultural, Fishery and Forestry

Page 7 of 24
ALDERSGATE COLLEGE ACCOUNTING FOR GOVERNMENT, NOT-FOR-PROFIT ENTITIES AND SCHOOL
OF BUSINESS AND ACCOUNTANCY SPECIALIZED INDUSTRIES

327 Equipment
228 Airport Equipment
328 Accumulated Depreciation - Airport Equipment
229 Communication Equipment
329 Accumulated Depreciation - Communication Equipment
230 Construction and Heavy Equipment
330 Accumulated Depreciation - Construction and Heavy
Equipment
231 Firefighting Equipment and Accessories
331 Accumulated Depreciation - Firefighting Equipment and
Accessories
232 Hospital Equipment
332 Accumulated Depreciation - Hospital Equipment
233 Medical, Dental and Laboratory Equipment
333 Accumulated Depreciation - Medical, Dental and
Laboratory
Equipment
234 Military and Police Equipment
334 Accumulated Depreciation - Military and Police Equipment
235 Sports Equipment
335 Accumulated Depreciation - Sports Equipment
236 Technical and Scientific Equipment
336 Accumulated Depreciation - Technical and Scientific
Equipment
240 Other Machinery and Equipment
340 Accumulated Depreciation - Other Machinery and
Equipment TRANSPORTATION EQUIPMENT

241 Motor Vehicles

341 Accumulated Depreciation - Motor Vehicles
242 Trains
342 Accumulated Depreciation - Trains
243 Aircraft and Aircraft Ground Equipment
343 Accumulated Depreciation - Aircraft and Aircraft Ground
Equipment
244 Watercrafts
344 Accumulated Depreciation - Watercrafts
248 Other Transportation Equipment
348 Accumulated Depreciation - Other Transportation
OTHER PROPERTY, PLANT AND EQUIPMENT

250 Other Property, Plant and Equipment

350 Accumulated Depreciation - Other Property, Plant and Equipment
PUBLIC INFRASTRUCTURES

Page 8 of 24
ALDERSGATE COLLEGE ACCOUNTING FOR GOVERNMENT, NOT-FOR-PROFIT ENTITIES AND SCHOOL
OF BUSINESS AND ACCOUNTANCY SPECIALIZED INDUSTRIES

251 Roads, Highways and Bridges

252 Parks, Plazas and Monuments
253 Ports, Lighthouses and Harbors
Artesian Wells, Reservoirs, Pumping Stations and
254 Conduits
255 Irrigation, Canals and Laterals
256 Flood Controls
Waterways, Aqueducts, Seawalls, River Walls and
257 Others
260 Other Public Infrastructures
REFORESTATION PROJECTS

261 Reforestation - Upland

262 Reforestation - Marshland/Swampland CONSTRUCTION IN
PROGRESS

Agency Assets
264 Construction in Progress - Agency Assets
Public Infrastructures/Reforestation Projects
266 Construction in Progress - Roads, Highways and Bridges
267 Construction in Progress - Parks, Plazas and Monuments
268 Construction in Progress - Ports, Lighthouses & Harbors
Construction in Progress - Artesian Wells, Reservoirs, Pumping
269 Stations and Conduits
270 Construction in Progress - Irrigation, Canals & Laterals
271 Construction in Progress - Flood Controls
Construction in Progress - Waterways, Aqueducts, Seawalls, River
272 Walls and Others
273 Construction in Progress - Other Public Infrastructures
274 Construction in Progress - Reforestation - Upland
275 Construction in Progress - Reforestation -
Marshland/Swampland

OTHER ASSETS
281 Work/Other Animals
282 Breeding Stocks
283 Arts, Archeological Specimen and Other Exhibits
284 Items in Transit
290 Other Assets

LIABILITIES
CURRENT LIABILITIES
Payable Accounts

Page 9 of 24
ALDERSGATE COLLEGE ACCOUNTING FOR GOVERNMENT, NOT-FOR-PROFIT ENTITIES AND SCHOOL
OF BUSINESS AND ACCOUNTANCY SPECIALIZED INDUSTRIES

401 Accounts Payable

402 Notes Payable
403 Due to Officers and Employees
409 Interest Payable
Inter - Agency Payables
411 Due to National Treasury
412 Due to BIR
413 Due to GSIS
414 Due to PAG-IBIG
415 Due to PHILHEALTH
416 Due to Other NGAs
417 Due to Other GOCCs
418 Due to LGUs
Intra - Agency Payables
421 Due to Central Office
422 Due to Regional Offices/Staff Bureaus
423 Due to Operating Units
424 Due to Other Funds
Other Liability Accounts
426 Guaranty Deposits Payable
427 Performance/Bidders/Bail Bonds Payable
428 Currency Swap Payable
429 Tax Refunds Payable
439 Other Payables
LONG - TERM LIABILITIES

Mortgage/Bonds/Loans Payable
441 Mortgage Payable
442 Bonds Payable - Domestic
443 Bond Payable - Foreign
444 Loans Payable - Domestic
445 Loans Payable - Foreign
450 Other Long - Term Liabilities
DEFERRED CREDITS

451 Deferred Real Property Tax Income

452 Deferred Special Education Tax Income
455 Other Deferred Credits

EQUITY
GOVERNMENT EQUITY

501 Government Equity

Page 10 of 24
ALDERSGATE COLLEGE ACCOUNTING FOR GOVERNMENT, NOT-FOR-PROFIT ENTITIES AND SCHOOL
OF BUSINESS AND ACCOUNTANCY SPECIALIZED INDUSTRIES

INTERMEDIATE ACCOUNTS

511 Cost of Goods Sold

512 Income and Expense Summary
513 Retained Operating Surplus (Year 1)
514 Retained Operating Surplus (Year 2)
515 Retained Operating Surplus (Year 3)

INCOME TAX REVENUE

National Taxes
551 Business Tax
552 Capital Gain Tax
553 Documentary Stamp Tax
554 Donors Tax
555 Estate Tax
556 Excise Tax on Articles
557 Final Tax
558 Franchise Tax
559 Immigration Tax
560 Import Duties
561 Income Tax - Individuals
562 Income Tax - Partnerships
563 Income Tax -Corporations
564 Professional Tax
565 Stock Transfer Tax
566 Tax on Forest Products
567 Value Added Tax
568 Value Added Tax - Expanded
578 Other National Taxes
579 Fines and Penalties - National Taxes
Local Taxes
581 Amusement Tax
582 Business Tax
583 Community Tax
584 Franchise Tax
585 Occupation Tax
586 Printing and Publication Tax
587 Property Transfer Tax
588 Real Property Tax
589 Real Property Tax on Idle Lands
590 Special Assessment Tax
591 Special Education Tax
592 Tax on Delivery Trucks and Vans Tax on Sand,
Gravel and Other
593 Quarry Products

Page 11 of 24
ALDERSGATE COLLEGE ACCOUNTING FOR GOVERNMENT, NOT-FOR-PROFIT ENTITIES AND SCHOOL
OF BUSINESS AND ACCOUNTANCY SPECIALIZED INDUSTRIES

598 Other Local Taxes

599 Fines and Penalties - Local Taxes GENERAL
INCOME ACCOUNTS

Permits and Licenses

601 Fees on Weights and Measures
602 Fishery Rental Fees
603 Franchising and Licensing Fees
604 Motor Vehicles Users Charge
605 Permit Fees
606 Registration Fees
608 Other Permits and Licenses
Fines and Penalties - Permits and
609 Licenses
Service Income
611 Affiliation Fees
612 Athletic and Cultural Fees
613 Clearance and Certification Fees
614 Comprehensive Examination Fees
615 Diploma and Graduation Fees
616 Garbage Fees
617 Inspection Fees
618 Library Fees
619 Medical, Dental and Laboratory Fees
620 Passport and Visa Fees
621 Processing Fees
622 Seminar Fees
623 Toll and Terminal Fees
624 Transcript of Records Fees
628 Other Service Income
Fines and Penalties - Service
629 Income
Business Income
631 Hospital Fees
632 Income from Canteen Operations
633 Income from Cemetery Operations
634 Income from Communication Facilities
635 Income from Dormitory Operations
636 Income from Markets
637 Income from Slaughterhouses
638 Income from Transportation Systems
639 Income from Waterworks Systems
640 Landing and Parking Fees
641 Printing and Publication Income

Page 12 of 24
ALDERSGATE COLLEGE ACCOUNTING FOR GOVERNMENT, NOT-FOR-PROFIT ENTITIES AND SCHOOL
OF BUSINESS AND ACCOUNTANCY SPECIALIZED INDUSTRIES

642 Rent Income

643 Sales Revenue
644 Tuition Fees
648 Other Business Income
649 Fines and Penalties - Business Income
Subsidy Income
651 Subsidy Income from National Government
652 Subsidy from other National Government Agencies
653 Subsidy from Central Office
654 Subsidy from Regional Office/Staff Bureau
655 Subsidy from Operating Unit
656 Subsidy from LGUs
657 Subsidy from Other Funds
Other Income
661 Dividend Income
662 Income from Grants and Donations
663 Insurance Income
664 Interest Income
665 Internal Revenue Allotment
666 Sale of Confiscated/Abandoned/Seized Goods and
Properties
667 Share from Economic Zones
668 Share from Expanded Value Added Tax (EVAT)
669 Share from National Wealth
670 Share from PAGCOR/PCSO
671 Share from Tobacco Excise Tax
678 Miscellaneous Income
679 Other Fines and Penalties
GAIN/LOSS ACCOUNTS
681 Gain/Loss on Foreign Exchange (FOREX)
682 Gain/Loss on Sale of Disposed Assets
683 Gain/Loss on Sale of Securities
684 Prior Years' Adjustments

EXPENSES
PERSONAL SERVICES Salaries
and Wages 701 Salaries and Wages - Regular
702 Salaries and Wages - Military/Uniformed
703 Salaries and Wages - Part-time
704 Salaries and Wages - Substitute
705 Salaries and Wages - Casual
706 Salaries and Wages - Contractual

Page 13 of 24
ALDERSGATE COLLEGE ACCOUNTING FOR GOVERNMENT, NOT-FOR-PROFIT ENTITIES AND SCHOOL
OF BUSINESS AND ACCOUNTANCY SPECIALIZED INDUSTRIES

707 Salaries and Wages - Emergency

Other Compensation
711 Personnel Economic Relief Allowance (PERA)
712 Additional Compensation (ADCOM)
713 Representation Allowance (RA)
714 Transportation Allowance (TA)
715 Clothing /Uniform Allowance
716 Subsistence, Laundry and Quarter Allowance
717 Productivity Incentive Allowance
718 Overseas Allowance
719 Other Bonuses and Allowances
720 Honoraria
721 Hazard Pay
722 Longevity Pay
723 Overtime and Night Pay
724 Cash Gift
725 Year End Bonus
Personnel Benefits Contributions
731 Life and Retirement Insurance Contributions
732 PAG-IBIG Contributions
733 PHILHEALTH Contributions
734 ECC Contributions
Other Personnel Benefits
738 Pension Benefits - Civilian
739 Pension Benefits - Military/Uniformed
740 Retirement Benefits - Civilian 741
Retirement Benefits - Military/Uniformed
742 Terminal Leave Benefits
743 Health Workers Benefits
749 Other Personnel Benefits
MAINTENANCE AND OTHER OPERATING EXPENSES
Traveling Expenses
751 Traveling Expenses - Local
752 Traveling Expenses - Foreign
Training and Scholarship Expenses
753 Training Expenses
754 Scholarship Expenses
Supplies and Materials Expenses
755 Office Supplies Expenses
756 Accountable Forms Expenses
Animal/Zoological Supplies
757 Expenses
758 Food Supplies Expenses

Page 14 of 24
ALDERSGATE COLLEGE ACCOUNTING FOR GOVERNMENT, NOT-FOR-PROFIT ENTITIES AND SCHOOL
OF BUSINESS AND ACCOUNTANCY SPECIALIZED INDUSTRIES

759 Drugs and Medicines Expenses Medical,

Dental and Laboratory
760 Supplies Expenses
Gasoline, Oil and Lubricants
761 Expenses
762 Agricultural Supplies Expenses Textbooks and
Instructional
763 Materials Expenses
Military and Police Supplies
764 Expenses
765 Other Supplies Expenses
Utility Expenses
766 Water Expenses
767 Electricity Expenses
768 Cooking Gas Expenses
Communication Expenses
771 Postage and Deliveries
772 Telephone Expenses - Landline
773 Telephone Expenses - Mobile
774 Internet Expenses
Cable, Satellite, Telegraph, and
775 Radio Expenses
Membership Dues and Contributions to
778 Organizations
779 Awards and Indemnities
780 Advertising Expenses
781 Printing and Binding Expenses
782 Rent Expenses
783 Representation Expenses
784 Transportation and Delivery Expenses
785 Storage Expenses
786 Subscription Expenses
787 Survey Expenses
788 Rewards and Other Claims
Professional Services
791 Legal Services
792 Auditing Services
793 Consultancy Services
794 Environment/Sanitary Services
795 General Services
796 Janitorial Services
797 Security Services
799 Other Professional Services

Page 15 of 24
ALDERSGATE COLLEGE ACCOUNTING FOR GOVERNMENT, NOT-FOR-PROFIT ENTITIES AND SCHOOL
OF BUSINESS AND ACCOUNTANCY SPECIALIZED INDUSTRIES

Repairs and Maintenance

Land Improvements
802 Repairs and Maintenance - Land Improvements
803 Repairs and Maintenance - Runways/Taxiways
804 Repairs and Maintenance - Railways
Repairs and Maintenance - Electrification, Power and Energy
805 Structures
Buildings
811 Repairs and Maintenance - Office Buildings
812 Repairs and Maintenance - School Buildings
813 Repairs and Maintenance - Hospitals and Health
Centers
814 Repairs and Maintenance - Markets and
Slaughterhouses
Repairs and Maintenance - Other Structures
Leasehold Improvements
818 Repairs and Maintenance - Leasehold Improvements, Land
819 Repairs and Maintenance - Leasehold Improvements, Buildings
820 Repairs and Maintenance - Other Leasehold Improvements
Office Equipment, Furniture and Fixtures
821 Repairs and Maintenance - Office Equipment
822 Repairs and Maintenance - Furniture and Fixtures
823 Repairs and Maintenance - IT Equipment and Software
Machinery and Equipment
826 Repairs and Maintenance - Machinery
Repairs and Maintenance - Agricultural, Fishery and Forestry
827 Equipment
828 Repairs and Maintenance - Airport Equipment
829 Repairs and Maintenance - Communication
Equipment
830 Repairs and Maintenance - Construction and Heavy
Equipment
831 Repairs and Maintenance - Firefighting Equipment
and
Accessories
832 Repairs and Maintenance - Hospital Equipment
Repairs and Maintenance - Medical, Dental and Laboratory
833 Equipment
834 Repairs and Maintenance - Military and Police
Equipment
835 Repairs and Maintenance - Sports Equipment
836 Repairs and Maintenance - Technical and Scientific
Equipment

Page 16 of 24
ALDERSGATE COLLEGE ACCOUNTING FOR GOVERNMENT, NOT-FOR-PROFIT ENTITIES AND SCHOOL
OF BUSINESS AND ACCOUNTANCY SPECIALIZED INDUSTRIES

840 Repairs and Maintenance - Other Machinery and

Equipment
Transportation Equipment
841 Repairs and Maintenance - Motor Vehicles
842 Repairs and Maintenance - Trains
Repairs and Maintenance - Aircraft and Aircraft Ground
843 Equipment
844 Repairs and Maintenance - Watercrafts
848 Repairs and Maintenance - Other Transportation
Equipment
Other Property, Plant and Equipment
Repairs and Maintenance - Other Property, Plant and
850 Equipment
Public Infrastructures
851 Repairs and Maintenance - Roads, Highways and
Bridges
852 Repairs and Maintenance - Parks, Plazas and
Monuments
853 Repairs and Maintenance - Ports, Lighthouses and
Harbors Repairs and Maintenance - Artesian
Wells, Reservoirs,
854 Pumping Stations and Conduits
855 Repairs and Maintenance - Irrigation, Canals and
Laterals
856 Repairs and Maintenance - Flood Controls
Repairs and Maintenance - Waterways, Aqueducts, Seawalls,
857 River Walls and Others
860 Repairs and Maintenance - Other Public
Infrastructures
Reforestation Projects
861 Repairs and Maintenance - Reforestation - Upland
Repairs and Maintenance - Reforestation -
862 Marshland/Swampland
Subsidies and Donations
871 Subsidy to National Government Agencies
872 Subsidy to Regional Offices/Staff Bureaus
873 Subsidy to Operating Units
874 Subsidy to Local Government Units
875 Subsidy to Government Owned and Controlled
Corporations
876 Subsidy to NGOs/POs
877 Subsidy to Other Funds
878 Donations

Page 17 of 24
ALDERSGATE COLLEGE ACCOUNTING FOR GOVERNMENT, NOT-FOR-PROFIT ENTITIES AND SCHOOL
OF BUSINESS AND ACCOUNTANCY SPECIALIZED INDUSTRIES

Confidential, Intelligence, Extraordinary and Miscellaneous

Expenses
881 Confidential Expenses
882 Intelligence Expenses
883 Extraordinary Expenses
884 Miscellaneous Expenses
Taxes, Insurance Premiums and Other Fees
891 Taxes, Duties and Licenses
892 Fidelity Bond Premiums
893 Insurance Expenses Non-Cash Expenses

Bad Debts
901 Bad Debts Expense Depreciation
Land Improvements
902 Depreciation - Land Improvements
903 Depreciation - Runways/Taxiways
904 Depreciation - Railways
905 Depreciation - Electrification, Power and Energy Structures
Buildings
911 Depreciation - Office Buildings
912 Depreciation - School Buildings
913 Depreciation - Hospitals and Health Centers
914 Depreciation - Markets and Slaughterhouses
915 Depreciation - Other Structures
Leasehold Improvements
918 Depreciation - Leasehold Improvements, Land
919 Depreciation - Leasehold Improvements, Buildings
920 Depreciation - Other Leasehold Improvements Office
Equipment, Furniture and Fixtures
921 Depreciation - Office Equipment
922 Depreciation - Furniture and Fixtures
923 Depreciation - IT Equipment
924 Depreciation - Library Books
Machinery and Equipment
926 Depreciation - Machinery
927 Depreciation - Agricultural, Fishery and Forestry
Equipment
928 Depreciation - Airport Equipment
929 Depreciation - Communication Equipment
930 Depreciation - Construction and Heavy Equipment
931 Depreciation - Firefighting Equipment and
Accessories
932 Depreciation - Hospital Equipment
933 Depreciation - Medical, Dental and Laboratory
Equipment

Page 18 of 24
ALDERSGATE COLLEGE ACCOUNTING FOR GOVERNMENT, NOT-FOR-PROFIT ENTITIES AND SCHOOL
OF BUSINESS AND ACCOUNTANCY SPECIALIZED INDUSTRIES

934 Depreciation - Military and Police Equipment

935 Depreciation - Sports Equipment
936 Depreciation - Technical and Scientific Equipment
940 Depreciation - Other Machinery and Equipment
Transportation Equipment
941 Depreciation - Motor Vehicles
942 Depreciation - Trains
943 Depreciation - Aircraft and Aircraft Ground
Equipment
944 Depreciation - Watercrafts
948 Depreciation - Other Transportation Equipment
Other Property, Plant and Equipment
950 Depreciation - Other Property, Plant and Equipment
Depletion
951 Obsolescence - IT Software
Discounts
954 Discount on Real Property Taxes
955 Discount on Special Education Tax
Tax Exemptions and Refunds
957 Loss from Tax Exemptions
958 Tax Refunds
Remittance to National Treasury from Assets Disposal
959 Remittance to National Treasury from Assets Disposal Other
Maintenance and Operating Expenses
961 Loss of Assets
962 Loss of Guaranty
969 Other Maintenance and Operating Expenses
FINANCIAL EXPENSES

971 Bank Charges

972 Commitment Fees
973 Debt Service Subsidy to GOCCs
974 Documentary Stamps Expenses
975 Interest Expenses
979 Other Financial Charges

POSTTEST

I. Questions

1. Define and discuss the underlying reason why a chart of accounts is prescribed in the
New Government Accounting System.

Page 19 of 24
ALDERSGATE COLLEGE ACCOUNTING FOR GOVERNMENT, NOT-FOR-PROFIT ENTITIES AND SCHOOL
OF BUSINESS AND ACCOUNTANCY SPECIALIZED INDUSTRIES

A new chart of accounts and coding structure with a three-digit account numbering
system shall be adopted. As part of the continuing effort of Commission on Audit to
simplify government accounting and implement the Computerized New Government
Accounting System

2. What the two general classifications of income/revenue under the new standard chart
of accounts? Explain briefly.

General Income Accounts - This account classification encompasses all types of

revenue/income generated by government agencies in the exercise of their
administrative and regulatory function, income from public enterprises/investments,
and income from grants and donations including subsidies.

Tax Revenue Accounts - This account classification encompasses all taxes imposed
on taxable income, properties, and use or sale of goods and services, taxes on
international trade and transactions and their taxes including fines and penalties. Also
included under these accounts are income generated from local government, schools
and hospital operations

3. Give examples of general income.

1. Permits and Licenses
2. Service Income
3. Business Income
4. Subsidy Income
5. Other Income

4. What are the three classifications of expenses under the new standard chart of
accounts? Give examples.
1. Personal Services (PS) - These account include basic pay, all authorized
allowances, bonus, cash gifts, incentives and other personnel benefits of officials
and employees of the government.

2. Maintenance and Other Operating Expenses (MOOE) - These accounts

include expenses necessary for the regular operations of an agency like, among
others, traveling expenses, training and seminar expenses, water, electricity,
supplies expense, maintenance of property, plant and equipment, and other
maintenance and operating expenses.

3. Financial Expenses (FE) - These account include bank charges, interest

expense, commitment charges, documentary stamp expense and other financial
charges. It also includes those losses incurred relative to foreign exchange
transactions and debt service subsidy to GOCCs.

5. Define intermediate accounts? Give examples.

Page 20 of 24
 ALDERSGATE COLLEGE ACCOUNTING FOR GOVERNMENT, NOT-FOR-PROFIT ENTITIES AND SCHOOL
OF BUSINESS AND ACCOUNTANCY SPECIALIZED INDUSTRIES

These are accounts, which are closed ultimately to the Government Equity account
at the end of the accounting period. These include Cost of Goods Sold, Income and
Expense Summary, Prior Years’ Adjustments, Retained Operating Surplus, Subsidy
to Regional Offices/Staff Bureaus and Subsidy to Operating Units, among others

II. Multiple Choice

B 1. These are the accounts, which are closed to the government equity at the end of an
accounting period.

a. Income and expense accounts

b. Intermediate accounts
c. Contra accounts
d. Adjunct accounts

A 2. This is a new account under the New Government Accounting System.

a. Cash in National Treasury

b. Cash-Collecting Officer
c. Cash-Disbursing Officer
d. Allowance for Doubtful Accounts

3. Which of the following is other current assets account?

B
a. Other prepaid expenses
b. Guarantee deposits
c. Deposits on letters of credit
d. Advances to contractors

A 4. The account used to record reduction in the value of trade receivable accounts, which
is estimated as uncollectible based on COA standard/policies.

a. Allowance for bad debts

b. Bad debts expense
c. Allowance for doubtful accounts
d. Doubtful accounts expense

D 5. Which of the following is not a personal service expense?

a. Cash gift
b. Representation allowance
c. Transportation allowance

Page 21 of 24
ALDERSGATE COLLEGE ACCOUNTING FOR GOVERNMENT, NOT-FOR-PROFIT ENTITIES AND SCHOOL
OF BUSINESS AND ACCOUNTANCY SPECIALIZED INDUSTRIES

d. Travelling expense

D 6. Which of the following is NOT other asset?

a. Work Animals
b. Arts, Archeological Specimen and Other exhibits
c. Items in transit
d. Construction in Progress - Agency assets

C 7. Which of the following is an intra-agency payable?

a. Due to bureau of internal revenue

b. Due to local government units
c. Due to operating units
d. Due to national treasury

A 8. Which of the following is NOT other liability account?

a. Interest payable
b. Guarantee deposit payable
c. Currency swap payable
d. Tax refund payable

C 9. Which of the following is not an intermediate account?

a. Income and expense summary

b. Cost of goods sold
c. Government equity
d. Retained operating surplus

D 10. Which of the following is local tax revenue?

a. Capital gain tax

b. Donors tax
c. Professional tax
d. Occupation tax

D 11. Which of the following is not a gain/loss account?

a. Gain/loss on foreign exchange

b. Gain/loss on sale of securities
c. Prior years’ adjustments
d. Miscellaneous income

Page 22 of 24
ALDERSGATE COLLEGE ACCOUNTING FOR GOVERNMENT, NOT-FOR-PROFIT ENTITIES AND SCHOOL
OF BUSINESS AND ACCOUNTANCY SPECIALIZED INDUSTRIES

D 12. Which of the following is maintenance and other operating expense?

a. Bank charges
b. Documentary stamps expense
c. Interest expense
d. Loss of assets

A 13. Which of the following is financial expense?

a. Debt service subsidy to GOCCs

b. Tax refund
c. Bad debts expense
d. Miscellaneous expenses

D 14. Under the NGAS, which of the following is considered as utility expense?

a. Postage and deliveries

b. Internet expense
c. Telephone expense - landline
d. Cooking gas expense

C 15. In the new standard chart of accounts of the NGAS, the cash account includes all
except

a. Cash in Vault
b. Cash in bank - Foreign currency
c. Cash - Deposit
d. Cash - Disbursing Officer

B 16. In the new standard chart of accounts of the NGAS, the receivable accounts include
all except

a. Due from officers and employees

b. Due from national treasury
c. Currency swap receivable
d. Interest receivable

D 17. The general income in the Revised Chart of Accounts, per Circular No. 2003- 001,
includes

a. National taxes
b. Local taxes
c. Gain accounts
d. Subsidy income

A
Page 23 of 24
ALDERSGATE COLLEGE ACCOUNTING FOR GOVERNMENT, NOT-FOR-PROFIT ENTITIES AND SCHOOL
OF BUSINESS AND ACCOUNTANCY SPECIALIZED INDUSTRIES

18. The three digit code of assets in the revised Chart of Accounts, per Circular No. 2003-
001 is

a. 100-299
b. 300-399
c. 400-499
d. 500-549

A 19. The Cash in Bank - Local Currency accounts in the new standard chart of accounts in
the NGAS include

a. Cash - National Treasury, MDS

b. Cash - Bangko Sentral ng Pilipinas
c. Cash - Collecting Officer
d. Cash - Deposit

Page 24 of 24