The Manual On The New Government Accounting System For National Government Agencies

THE MANUAL ON THE
NEW GOVERNMENT ACCOUNTING SYSTEM

for National Government Agencies
THE CHART OF ACCOUNTS
VOLUME III
Chapter 1. INTRODUCTION
Sec. 1. Definition. 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.
Sec. 2. Rationale. The Chart of Accounts is prescribed for use

by all national government agencies and local government units. The
descriptions of all the accounts and the instructions as to when these are
to be debited and credited are provided to achieve uniformity in the
recording of government financial transactions.
Sec. 3. 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:
a. 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
accepted accounting principles.
1
b. Liabilities – economic obligations of an agency that are
accepted accounting principles. Liabilities also include
certain deferred credits that are not obligations but that are
accepted accounting principles.
c. Equity – residual interest of the government in an agency

which is the excess of the agency’s assets over its liabilities.
d. Revenue/Income – increase in economic benefits during the

accounting period in the form of inflows or enhancements of
assets or decrease of liabilities that results in increases in
equity.
e. Expenses – decrease in economic benefits during an

accounting period in the form of outflows or depletions of
assets or incurrence of liabilities that results in decreases in
equity.
Sec. 4. Balance Sheet Accounts. The balance sheet accounts

consist of assets, liabilities and equity. These are classified into the
following:
Assets -
Current Assets
Cash
Receivables
Marketable Securities
Inventories
Prepaid Expenses
Other Current Assets
Long-Term Investments
Property, Plant and Equipment
Other Assets
Liabilities -
Current Liabilities
Long-Term Liabilities
Other Liabilities
Equity -
2
Government Equity
Sec. 5. Revenue/Income and Expense Accounts. The
revenue/income and expenses consist of the following:
Revenue/Income
General Income Accounts
Specific Income Accounts
Expenses
Personal Services
Maintenance and Other Operating Expenses
Financial Expenses
Sec. 6. Classification of Revenue/Income. The revenue/

income accounts are classified into:
a. 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.
b. Specific Income 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 other taxes
including fines and penalties. Also included under these
accounts are income generated from local government,
schools and hospital operations.
Income realized/collected for which the agency is authorized to

use but required to be remitted to the National Treasury shall be recorded
under the Regular Agency (RA) books. A receivable account, Due from
National Treasury, shall be debited upon remittance to the account of the
Treasurer of the Philippines and the same account shall be credited upon
receipt of the Notice of Cash Allocation issued by the DBM. At the end
of the year, the income account shall be closed to the Income and
Expense Summary account. Likewise, income collected and deposited
under the agencies’ accounts with AGDBs, as authorized, shall be
recorded in the RA books.
3
Those income realized/collected for the National Government
(NG) and for which the agency is not authorized to use shall be recorded
under the NG books maintained by the agency. A liability account, Due
to National Treasury, shall be set up upon accrual/collection and the
same account shall be debited upon remittance to the National Treasury.
The illustrative accounting entries relative to the use of the

income accounts and related receivable/payable account are shown in
Chapter 7, Volume I of the Manual.
Sec. 7. Classification of Expenses. The expense accounts

are classified into:
a. Personal Services (PS) - These accounts include

basic pay, all authorized allowances, bonus, cash gifts,
incentives and other personnel benefits of officials and
employees of the government.
b. 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.
c. Financial Expenses (FE) - These accounts

include bank charges, interest expense, commitment charges,
documentary stamp expense and other financial charges. It
also includes losses incurred relative to foreign exchange
transactions and debt service subsidy to GOCCs.
Sec. 8. 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.
4
Sec. 9. Account Codes. The Chart of Accounts consists of
three-digit codes grouped as follows:
Accounts Account Codes
Assets 100-299
Asset Contra Accounts 300-399
Liabilities 400-499
Equity 500-599
Revenue/Income 600-799
General Income Accounts 600-699
Specific Income Accounts 700-799
Expenses 800-960
Personal Services 801-830
Maintenance and Other 831-950
Operating Expenses
Financial Expenses 951-960
5
Chapter 2. THE CHART OF ACCOUNTS
Sec. 10. The Chart of Accounts. The Chart of Accounts

is prescribed for use of the national government agencies and local
government units.
CHART OF ACCOUNTS
Account
Account Title
Code
ASSETS
Current Assets
Cash
101 Cash in Treasury
102 Cash – National Treasury, Modified Disbursement System
(MDS)
103 Cash – Bangko Sentral ng Pilipinas
105 Petty Cash Fund
106 Cash – Collecting Officers
107 Cash – Disbursing Officers
110 Cash in Bank – Local Currency, Current Account
111 Cash in Bank – Local Currency, Savings Account
112 Cash in Bank – Local Currency, Time Deposits
113 Cash in Bank – Foreign Currency, Current Account
114 Cash in Bank – Foreign Currency, Savings Account
115 Cash in Bank – Foreign Currency, Time Deposits
Receivables
121 Accounts Receivable
122 Notes Receivable
123 Loans Receivable, Current
124 * Real Property Tax Receivable
125 * Special Education Tax Receivable

* For Use of the LGUs
6
CHART OF ACCOUNTS
Account
Account Title
Code
126 Interests Receivable

127 ** Currency Swap Receivable
128 Due from Officers and Employees
129 * Due from Other Funds
Due from NGAs
131 Due from LGUs
Due from GOCCs
Due from NGOs/POs
Due from National Treasury
135 Due from Central Office
136 Due from Regional Offices/Staff Bureaus
137 Due from Operating Units
138 Receivables – Disallowances/Charges
139 Other Receivables
301 Allowance for Doubtful Accounts
140 Treasury Bills
141 * Stocks
142 * Bonds
143 Other Marketable Securities

Inventories
144 Raw Materials Inventory
145 Work-In-Process Inventory
146 Finished Goods Inventory
147 Merchandise Inventory
148 Accountable Forms Inventory
149 Office Supplies Inventory
*
**
For Use of the Bureau of the Treasury

7
CHART OF ACCOUNTS
Account
Account Title
Code
150 Medical, Dental and Laboratory Supplies Inventory

151 Food/Non-food Supplies Inventory
152 Gasoline, Oil and Lubricants Inventory
153 Agricultural Supplies Inventory
154 Livestock and Crops Inventory
155 Spare Parts Inventory
156 Construction Materials Inventory
157 Other Agricultural Products Inventory
158 Confiscated Goods Inventory
160 Other Inventory Items
Prepaid Expenses
161 Prepaid Rent
162 Prepaid Insurance
164 Prepaid Interest
165 Other Prepaid Expenses

166 Guaranty Deposits
167 Deposits on Letters of Credit
168 Advances to Contractors
170 Other Current Assets
Long - Term Investments

171 Loans Receivable – Long-Term, LGUs
172 Loans Receivable – Long-Term, GOCCs
173 Loans Receivable – Long-Term, Others
174 Investments in Stocks
175 Investments in Bonds
176 Investments in GOCCs
177 Sinking Fund – Cash
178 Sinking Fund – Securities
179 Other Long-Term Investments
8
CHART OF ACCOUNTS
Account
Account Title
Code

201 Land
202 Land Improvements
302 Accumulated Depreciation – Land Improvements
203 Leasehold Improvements
303 Accumulated Depreciation – Leasehold
Improvements
204 Buildings
304 Accumulated Depreciation – Buildings
205 School Buildings
305 Accumulated Depreciation – School Buildings
206 Markets and Slaughterhouses
306 Accumulated Depreciation – Markets and
Slaughterhouses
207 Hospitals and Health Centers
307 Accumulated Depreciation – Hospitals and Health
Centers
208 Other Structures
308 Accumulated Depreciation – Other Structures
209 Industrial Machineries
309 Accumulated Depreciation – Industrial Machineries
210 Other Machineries
310 Accumulated Depreciation – Other Machineries
211 Firefighting Equipment and Accessories
311 Accumulated Depreciation – Firefighting Equipment
and Accessories
212 Construction and Heavy Equipment
312 Accumulated Depreciation – Construction and Heavy
Equipment
214 Technical and Scientific Equipment
314 Accumulated Depreciation – Technical and Scientific
Equipment
215 IT Equipment and Software
9
CHART OF ACCOUNTS
Account
Account Title
Code
315 Accumulated Depreciation – I T Equipment

216 Telegraph, Telephone, Cable, TV and Radio Equipment
316 Accumulated Depreciation – Telegraph, Telephone,
Cable, TV and Radio Equipment
217 Artesian Wells, Reservoirs, Pumping Stations and Conduits
317 Accumulated Depreciation – Artesian Wells,
Reservoirs, Pumping Stations and Conduits
218 Motor Vehicles
318 Accumulated Depreciation – Motor Vehicles
219 Watercrafts
319 Accumulated Depreciation – Watercrafts
220 Trains
320 Accumulated Depreciation – Trains
221 Aircrafts/Aircraft Ground Equipment
321 Accumulated Depreciation – Aircrafts/Aircraft Ground
Equipment
222 Office Equipment
322 Accumulated Depreciation – Office Equipment
223 Other Equipment
323 Accumulated Depreciation – Other Equipment
224 Furniture and Fixtures
324 Accumulated Depreciation – Furniture and Fixtures
225 Ordnance
325 Accumulated Depreciation – Ordnance
226 Books
326 Accumulated Depreciation – Books
227 Other Property, Plant and Equipment
327 Accumulated Depreciation – Other Property, Plant
and Equipment
228 Work/Other Animals
229 Breeding Stocks
230 Construction in Progress – Agency Assets
231 Construction in Progress – Plaza, Parks and Monuments
10
CHART OF ACCOUNTS
Account
Account Title
Code
232 Construction in Progress – Roads, Highways and Bridges

233 Construction in Progress – Ports, Lighthouses, Harbors,
Seawalls, River Walls and Others
234 Construction in Progress – Airports and Runways
235 Construction in Progress – Railways
236 Construction in Progress – Waterways, Aqueducts, etc.
237 Construction in Progress – Irrigation, Canals and Laterals
238 Construction in Progress – Electrification, Power and
Energy Structures
241 Construction in Progress – Other Public Infrastructures
242 Construction in Progress – Reforestation Projects
243 Public Infrastructures
244 Reforestation Projects
245 Arts, Archeological Specimen and Other Exhibits
249 Items in Transit
Other Assets
251 Other Assets
LIABILITIES AND EQUITY
LIABILITIES
Current Liabilities
401 Accounts Payable
402 Notes Payable
403 Loans Payable – Current, Domestic
404 Loans Payable – Current, Foreign
406 Interests Payable
407 Tax Refunds Payable
408 Guaranty Deposits Payable
409 Tax Credit Certificates Payable
11
CHART OF ACCOUNTS
Account
Account Title
Code
410 Withholding Taxes Payable

411 GSIS Payable
412 PAG-IBIG Payable
413 PHILHEALTH Payable
414 Performance/Bidders/Bail Bonds Payable
427 ** Currency Swap Payable
428 Due to Officers and Employees
429 * Due to Other Funds
430 Due to NGAs
431 Due to LGUs
432 Due to GOCCs
433 Due to National Treasury
435 Due to Central Office
436 Due to Regional Offices/Staff Bureaus
437 Due to Operating Units
439 Retirement Gratuity Benefits Payable
440 Deferred Credits to Income
441 Other Deferred Credits
448 * Deferred Real Property Tax Income
449 * Deferred Special Education Tax Income
450 Other Payables
Long -Term Liabilities

451 Loans Payable – Long-Term, Domestic
452 Loans Payable – Long-Term, Foreign

453 Mortgage Payable
454 Bonds Payable – Long-Term, Domestic
455 Bonds Payable – Long-Term, Foreign
46 Other Long-Term Liabilities

** For Use of the Bureau of the Treasury
12
CHART OF ACCOUNTS
Account
Account Title
Code
Other Liabilities
465 Other Liabilities
EQUITY
501 Government Equity

502 * Project Equity
Intermediate Accounts
Cost of Goods Sold
Income and Expense Summary
Prior Years’ Adjustments
Retained Operating Surplus
* Invested Equity
537
538 Subsidy to Regional Offices/Staff Bureaus
539 Subsidy to Operating Units
540 Gain or Loss Due to Dormant Accounts
REVENUE/INCOME
General Income
601 Subsidy Income from National Government
602 Subsidy from Central Office
603 Subsidy from Regional Office/Staff Bureau
604 * Subsidy from Other LGUs
605 * Subsidy from Other Funds
606 * Subsidy from Special Accounts
611 Income from Government Services
612 Income from Government Business Operations
613 Sales Revenue
621 Rent Income
622 Insurance Income
* *
For Use of the LGUs
13
CHART OF ACCOUNTS
Account
Account Title
Code
623 Dividend Income

624 Interest Income
625 Gain on Sale of Securities
626 Gain on Sale of Assets
627 Sale of Confiscated Goods and Properties
628 Foreign Exchange (FOREX) Gain
639 Miscellaneous Operating and Service Income
641 Fines and Penalties – Government Services and Business
Operations
651 Income from Grants and Donations
Specific Income
Tax Revenue
Income Taxes
701 Income Tax – Individuals
702 Income Tax – Partnerships
703 Income Tax – Corporations
Property Taxes
711 * Real Property Tax
712 * Property Transfer Tax
713 * Special Education Tax
714 * Special Assessment Tax
* Real Property Tax on Idle Lands
715
716 Stock Transfers Tax
717 Capital Gains Tax
718 Donors Tax
719 Estate Tax
* *
For Use of the LGUs
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CHART OF ACCOUNTS
Account
Account Title
Code
Taxes on Goods and Services

721 Excise Taxes on Articles
722 Value Added Tax
723 Business Taxes and Licenses
724 Franchise Tax
725 ** Professional Tax
726 ** Occupation Tax
727 ** Printing and Publication Tax
735 Miscellaneous Taxes on Goods and Services
Taxes on International Trade and Transactions

736 Import Duties
Other Taxes
741 Documentary Stamp Tax
742 * Community Tax
743 * Science Stamp Tax
745 * Weights and Measures
746 * Share from Internal Revenue Collections
747 * Share from Tobacco Excise Tax
748 * Share from Economic Zones
749 * Shares from Expanded Value Added Tax (EVAT)
750 * Share from National Wealth
751 * Amusement Tax
* Sand and Gravel Tax
752
* Tax on Delivery Trucks and Vans
753
754 Tax on Forest Products
* *
For Use of the LGUs
*
15
CHART OF ACCOUNTS
Account
Account Title
Code
755 Immigration Taxes

759 Miscellaneous – Other Taxes
760 Fines and Penalties – Tax Revenue
Other Specific Income
761 Registration Fees
762 Tuition/Affiliation Fees
763 Hospital Fees
Medical, Dental and Laboratory Fees
Library Fees
Athletic and Cultural Fees
Comprehensive Examination Fees
Transcript of Records Fees
Diploma and Graduation Fees
Inspection Fees
Permit Fees
772 * Garbage Fees
773 Clearance/Certification Fees
774 Franchising/Licensing Fees
775 * Fishery Rentals, Fees and Charges
776 Printing and Publication Income
777 Income from Canteen Operations
778 Income from Dormitory Operations
*
779 Receipts from Lease of Properties
780 Receipts from Communication Facilities
781 * Receipts from Waterworks Systems
782 * Receipts from Transportation Systems
783 * Receipts from Markets
784 * Receipts from Slaughterhouses
785 * Receipts from Cemeteries
786 Toll Fees
*

16
CHART OF ACCOUNTS
Account
Account Title
Code
787 Landing and Parking Fees

788 Other Income from School Services
789 Other Income from School Business Operations
790 Other Income from Hospital Services
791 Other Income from Hospital Business Operations
792 * Other Specific Income of LGUs
Fines and Penalties – Other Specific Income
EXPENSES
Personal Services
801 Salaries and Wages – Regular Pay
802 Salaries and Wages – Part Time Pay
803 Salaries and Wages – Casual/Contractual
804 Personnel Economic Relief Allowance (PERA)
805 Additional Compensation (ADCOM)
806 Representation Allowance (RA)
807 Transportation Allowance (TA)
808 Clothing Allowance
809 Honoraria
810 Hazard Pay
811 Overtime and Night Pay
812 Holiday Pay
813 Christmas Bonus
814 Cash Gift
815 Productivity Incentive Benefits
816 Other Bonuses and Allowances
817 Life and Retirement Insurance Contributions
818 PAG-IBIG Contributions
819 PHILHEALTH Contributions
820 ECC Contributions

17
CHART OF ACCOUNTS
Account
Account Title
Code
821 Pension and Retirement Benefits

822 Terminal Leave Benefits
823 Health Workers’ Benefits
824 Subsistence and Quarters’ Allowances
825 Longevity Pay
830 Other Personnel Benefits

831 Traveling Expenses – Local
832 Traveling Expenses – Foreign
833 Training and Seminar Expenses
834 Water
835 Electricity
836 Cooking Gas
837 Telephone/Telegraph and Internet
838 Postage and Deliveries
839 Subscription Expenses
840 Advertising Expenses
841 Rent Expenses
842 Insurance Expenses
843 Fidelity Bond Premiums
844 Survey Expenses
845 Storage Expenses
846 Zoological/Animal Maintenance Expenses
847 Printing and Binding Expenses
848 Accountable Forms Expenses
849 Office Supplies Expenses
850 Medical, Dental and Laboratory Supplies Expenses
851 Food/Non-food Expenses
852 Gasoline, Oil and Lubricants Expenses
853 Agricultural Supplies Expenses
854 Legal Services
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CHART OF ACCOUNTS
Account
Account Title
Code
855 Auditing Services

856 Consultancy Services
857 General Services
858 Security and Janitorial Services
859 Taxes, Duties and Licenses
860 Tax Credit Subsidy
861 Tax Exemption Expenses
862 Public Infrastructure Repairs and Maintenance
863 Reforestation Project Maintenance
864 Buildings Maintenance
865 School Buildings Maintenance
866 Markets and Slaughterhouses Maintenance
867 Hospitals and Health Centers Maintenance
868 Other Structures Maintenance
869 Industrial Machineries Maintenance
870 Other Machineries Maintenance
871 Firefighting Equipment and Accessories Maintenance
872 Construction and Heavy Equipment Maintenance
874 Technical and Scientific Equipment Maintenance
875 IT Equipment Maintenance
876 Telegraph, Telephone, Cable, TV and Radio Equipment
Maintenance
877 Artesian Wells, Reservoirs, Pumping Stations and Conduits
Maintenance
Motor Vehicles Maintenance
879 Watercrafts Maintenance
880 Trains Maintenance
881 Aircrafts/Aircraft Ground Equipment Maintenance
882 Office Equipment Maintenance
883 Other Equipment Maintenance
884 Furniture and Fixtures Maintenance
885 Ordnance Maintenance
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CHART OF ACCOUNTS
Account
Account Title
Code
886 Other Repairs and Maintenance

Awards and Indemnities
Rewards and Other Claims
Grants and Donations
Representation Expenses
Extraordinary and Miscellaneous Expenses
Confidential and Intelligence Expenses
Anti-Insurgency/Contingency Expenses
894 Subsidy to National Government Agencies
895 Subsidy to Local Government Units
896 Subsidy to Government Corporations
* Subsidy to Other Funds
897
* Subsidy to Special Funds
898
901 Membership Dues to International Institutions
902 Depreciation – Land Improvements
903 Depreciation – Leasehold Improvements
904 Depreciation – Buildings
905 Depreciation – School Buildings
906 Depreciation – Markets and Slaughterhouses
907 Depreciation – Hospitals and Health Centers
908 Depreciation – Other Structures
909 Depreciation – Industrial Machineries
910 Depreciation – Other Machineries
911 Depreciation – Firefighting Equipment and Accessories
912 Depreciation – Construction and Heavy Equipment
914 Depreciation – Technical and Scientific Equipment
915 Depreciation – IT Equipment
Depreciation – Telegraph, Telephone, Cable, TV and
Radio Equipment
* *
For use of the LGUs
* *
20
CHART OF ACCOUNTS
Account
Account Title
Code
Depreciation – Artesian Wells, Reservoirs, Pumping

Stations and Conduits
Depreciation – Motor Vehicles
Depreciation – Watercrafts
Depreciation – Trains
Depreciation – Aircrafts/Aircraft Ground Equipment
Depreciation – Office Equipment
Depreciation – Other Equipment
Depreciation – Furniture and Fixtures
Depreciation – Ordnance
Depreciation – Books
927 Depreciation – Other Property, Plant and Equipment
928 Obsolescence – IT Software
929 Bad Debts Expense
* Discount on Real Property Tax
937
* Discount on Special Education Tax
938
947 Loss on Sale of Assets
948 Loss of Assets
950 Other Expenses
Financial Expenses
Bank Charges
Interest Expenses
Commitment Charges
Documentary Stamps Expenses
Other Financial Charges
Foreign Exchange (FOREX) Loss
957 Debt Service Subsidy to GOCCs
958 Loss on Guaranty
* *
For Use of the LGUs
* *
For Use of the LGUs
21
Chapter 3. DESCRIPTION OF ACCOUNTS
Sec. 11. Description of Accounts. Each account in the Chart

of Accounts is defined/described. Instructions when to debit and credit
the Balance Sheet accounts, Intermediate accounts, Subsidy Income from
National Government, Subsidy from Central Office and Subsidy from
Regional Office/Staff Bureau are presented.
ASSETS
Current Assets
Cash
Sec. 12. Cash in Treasury (101). This account is used to

record collections of the Bureau of the Treasury (BTr) pending deposits.
Debit this account for:
Treasuries’ collections
Credit this account for:
Deposits of collection to Bangko Sentral ng Pilipinas or

Authorized Government Depository Banks (AGDBs).
Sec. 13. Cash – National Treasury, Modified Disbursement

System (MDS) (102). This account is used to record in the Regular
Agency (RA) books the receipt of Notice of Cash Allocation (NCA)
from the Department of Budget and Management (DBM) and the
corresponding withdrawals of National Government Agencies (NGAs)
against the NCA received thru the issuance of MDS checks, and other
modes of disbursements.
Receipt of NCA from DBM

Receipt of Notice of Transferred Allocation to
Agency/Regional Offices (ROs)/Operating Units (OUs)
from the Central Office (CO)
22
MDS checks issued

ADA issued
Notice of Transferred Allocation issued by NGA Main
Office to ROs/OUs and/or attached offices thru
Government Servicing Banks (GSB)
Reversion of unused/balance/expired portion of NCA
Sec. 14. Cash – Bangko Sentral ng Pilipinas (103). This

account is used to record deposits to and withdrawals from the account
maintained with the Bangko Sentral ng Pilipinas (BSP).
Deposits with BSP

Credit advices/memos received from BSP

Withdrawal or reduction of deposits with BSP
Debit advices/memos received from BSP
Sec. 15. Petty Cash Fund (105). This account is used to

record in the books of the agency the cash granted to Regular or Special
Disbursing Officers for the creation of Petty Cash Fund (PCF), which
shall be maintained under the Imprest System. Such Fund shall only be
used for payment of petty or miscellaneous authorized expenditures,
which cannot be conveniently paid by check.
Cash granted as PCF to duly designated Regular or Special
Disbursing Officers for payment of petty or
miscellaneous authorized expenditures
Replenishment in the ensuing year of expenses not
replenished at the end of the year
Adjusting entry to recognize expenses paid out of the PCF
but not replenished at the end of the year
Final liquidation/closing of the PCF
23
Sec. 16. Cash – Collecting Officers (106). This account is
used to record collections and deposits made by Collecting Officers/
Postmasters/Telegraph Operators to the National Treasury and/or
AGDBs.
Collections made by Collecting

Officers/Postmasters/Telegraph Operators
Dishonored (checks) deposits based on the debit memo
received from the AGDBs
Deposits made by Collecting Officers for the account of

the Treasurer of the Philippines (TOP)
Deposits made by Collecting Officers with AGDBs
Cancellation of Official Receipts
Incurrence of cash shortage
Sec. 17. Cash – Disbursing Officers (107). This account is

used to record the amount of cash advances granted to designated
Regular or Special Disbursing Officers and disbursements made in
payment of authorized official expenditures.
Cash advances to duly designated Regular or Special

Disbursing Officers for payment of salaries and
wages
Cash advances to Postmasters and Telegraph Operators for
authorized disbursements
Cash advances to Special Disbursing Officers for specific
purpose or activity
Liquidation/Authorized official payments made by

Disbursing Officers/Postmasters/Telegraph Operators
Refund of unused portion of advances upon completion of
the purpose/activity or at year-end
Incurrence of cash shortage
24
Sec. 18. Cash in Bank – Local Currency, Current Account
(110). This account is used to record deposits/withdrawals of local
currency in current account maintained with AGDBs.

Deposits of local currency in current account
Credit advices/memos received
Interest earned net of withholding tax
Commercial checks issued

Debit advices/memos received
Remittance of interest earned net of withholding tax to the
National Treasury
Sec. 19. Cash in Bank – Local Currency, Savings Account

(111). This account is used to record deposits/withdrawals of local
currency in a savings account maintained with AGDBs.

Deposits of local currency in savings account

Withdrawals or authorized reduction of deposits
National Treasury
Sec. 20. Cash in Bank – Local Currency, Time Deposits

(112). This account is used to record placement in local currency of
excess cash or cash not earmarked for immediate use with AGDBs for a
specified period.
Deposits of local currency with AGDBs for a specific
period
25
Withdrawals of deposits or redemption at maturity

National Treasury
Sec. 21. Cash in Bank – Foreign Currency, Current

Account (113). This account is used to record deposits and withdrawals
of foreign currency in current account maintained with AGDBs.
Deposits of foreign currency in current account

Commercial checks issued

National Treasury
Sec. 22. Cash in Bank – Foreign Currency, Savings Account

(114). This account is used to record deposits/withdrawals of foreign
currency in savings account maintained with AGDBs.
Deposits of foreign currency in savings account

Withdrawals or authorized reduction of deposits

National Treasury
26
Sec. 23. Cash in Bank – Foreign Currency, Time Deposits
(115). This account is used to record placement of foreign currency
maintained with AGDBs for a specified period.
Deposits of foreign currency with AGDBs for a specific

period
Withdrawals or reduction of deposits due to redemption at

maturity
National Treasury
Receivables
Sec. 24. Accounts Receivable (121). This account is used to

record the amount due from customers/clients resulting from services
rendered, trading/business transactions, and sale of merchandise or
property which are expected to be collected in the regular course of
business or over a definite period.
Services rendered on account

Sale of merchandise or property on account
Other amounts due from customers/clients resulting from
trading/business transactions/operations
Collection of the amount due from customers/clients

Authorized write-off of accounts
Sec. 25. Notes Receivable (122). This account is used to

record the value of promissory notes, time drafts, trade acceptances and
other negotiable short-term instruments from trade debtors.
27
Value of promissory notes, time drafts, trade acceptances

and other negotiable short-term instruments received
Collections made from promissory notes, time drafts, trade

acceptances and other negotiable short-term instruments
Sec. 26. Loans Receivable, Current (123). This account is

used to record the amount of short-term loans granted by the government
to duly authorized recipients including LGUs, GOCCs and authorized
private entities in accordance with existing agreement.
Short-term loans granted to duly authorized recipients

including LGUs, GOCCs and authorized private entities
Collections made from the loans granted

Sec. 27. Interests Receivable (126). This account is used to

record the uncollected interest earned from short-term/long-term
investments.
Interest earned but not yet collected
Collection of the interest earned

28
Sec. 28. Due from Officers and Employees (128). This
account is used to record the amount due from officers and employees of
the agency and advances granted for official travels.
Overpayment of salaries, fringe benefits and other

emoluments
Cash shortages
Cash advances granted for travels (local and foreign)
subject to liquidation
Other receivables from officers and employees
Collections of overpayment of salaries, fringe benefits and

other emoluments
Collections of cash shortages
Liquidation of cash advances for travel
Refund of excess/unused portion of cash advance for
travels
Collection of receivables from officers and employees
Sec. 29. Due from NGAs (130). This account is used to record
the amount due from departments, bureaus and other offices of the
National Government.
Amount advanced for the account of NGAs

Overpayment to NGAs
Amount due arising from inter-agency and/or inter-office
transactions
Collections of receivables from NGAs

Settlement of inter-agency and inter-office transactions
29
Sec. 30. Due from LGUs (131). This account is used to record
the amount due from provinces, cities, municipalities, barangays and
other LGUs.
Advances granted to LGUs

Subsidies granted to LGUs subject to liquidation
Overpayment to LGUs
Submission of liquidation reports by LGUs

Collections of receivables from LGUs
Sec. 31. Due from GOCCs (132). This account is used to

record the amounts of short-term loans granted by the National
Government to Government-Owned and/or Controlled Corporations
(GOCCs) and Government Financial Institutions (GFIs).
Amount paid for the account of GOCCs/GFIs

Insurance claim from General Insurance Fund of GSIS
Overpayment to GOCCs/GFIs
Short-term loans granted to GOCCs/GFIs
Collection of receivables from GOCCs/GFIs

Sec. 32. Due from NGOs/POs (133). This account is used to

record the release of funds entrusted to Non-Governmental
Organizations/Peoples’ Organizations (NGOs/POs) for the implementation
of government projects.
Release of funds entrusted to NGOs/POs
30
Liquidation of funds entrusted to NGOs/POs

Refund of unused fund
Sec. 33. Due from National Treasury (134). This account is

used to record the amount deposited/remitted by government agencies
with the National Treasury thru AGDB for collections, which the
agencies are authorized to use upon receipt of the NCA.
Deposits/Remittances with the National Treasury of

collections, which the agencies are authorized to use
Receipt of NCA
For identifying the particular receivables from the National

Treasury, subsidiary ledgers by nature of deposit shall be provided, such
as cash performance bonds, grants and donations, etc.
Sec. 34. Due from Central Office (135). This account is used
to record inter-office transactions in the books of Regional Offices/Staff
Bureaus/Operating Units (ROs/SBs/OUs).
Inter-office transactions
Sec. 35. Due from Regional Offices/Staff Bureaus (136).

This account is used to record inter-office transactions in the books of
CO/OUs. It also includes receivables from RO at year-end equivalent to
the unobligated balance of allotment covered by funding check.
31
Receivables from RO/SB at year-end equivalent to the
unobligated balance of allotment covered by funding
check
Receipt of funds from RO/SB pertaining to unobligated
balance of allotment covered by funding check
Sec. 36. Due from Operating Units (137). This account is

used to record inter-office transactions in the books of Central/Regional
Offices (CO/RO). It also includes receivables from OU at year-end
equivalent to the unobligated balance of allotment covered by funding
check.
Receivables from OU at year-end equivalent to the
check
Receipt of funds from OU pertaining to unobligated
Sec. 37. Receivables – Disallowances/Charges (138). This

account is used to record the amount due from officers and employees
and those outside of government agencies for audit
disallowances/charges, which have become final and executory.
32
Amount due from officers and employees resulting from
audit disallowances/charges, which have become final
and executory
Amount due from contractors, suppliers or entities
resulting from audit disallowances/charges, which
have become final and executory
Cash settlement of audit disallowances/charges

Compliance to requirements or non-cash settlement
Sec. 38. Other Receivables (139). This account is used to

record the amount due from all other debtors not falling under any of the
specific types of receivables.
Amounts due from debtors and entities which cannot be

classified under the specific receivable accounts
Collections of amounts due from other debtors

Authorized write-off
Sec. 39. Allowance for Doubtful Accounts (301). This

account is used to record reduction in the value of trade receivable
accounts, which is estimated as uncollectible based on COA
standard/policies.
Accounts of customers/clients which have been

determined to be uncollectible for which authority to
write-off has been granted
Estimated amount of uncollectible accounts
33
Sec. 40. Treasury Bills (140). This account is used to record

the authorized purchase/acquisition by NGAs of short-term debt
instruments issued by the National Government thru the BTr.
Cost of treasury bills purchased
Resale or disposition of treasury bills
Sec. 41. Other Marketable Securities (143). This account is

used to record the cost of other marketable securities acquired as
temporary investments by agencies.
Purchase of other types of authorized marketable securities
Sale or disposition of other types of marketable securities
Inventories
Sec. 42. Raw Materials Inventory (144). This account is used

to record the value of raw materials purchased for use in production.

Raw materials purchased for use in production

Raw materials issued for use in production
Inventory shortage/loss
34
Sec. 43. Work-In-Process Inventory (145). This account is
used to record the cost and/or other appropriate value of job or work
orders which have been started but unfinished or still in the process of
manufacture as of the end of the accounting period.
Raw materials, labor and overhead put into production
Cost or value of the finished products

Sec. 44. Finished Goods Inventory (146). This account is

used to record the cost of completed job or work orders and goods
manufactured/produced/processed.
Cost or value of the finished products
Finished products transferred to Merchandise Inventory

account
Finished products issued
Sec. 45. Merchandise Inventory (147). This account is used

to record the cost or other appropriate value of merchandise and other
property, which have been purchased or produced for sale. It includes but
not limited to drugs and medicines for hospitals/sanitaria and finished
products fabricated/manufactured/produced out of agency/ schools’
manufacturing operations which are intended for sale.
Articles purchased for sale

Goods or merchandise for sale which have been
manufactured or produced, conversion cost of which
have been charged to appropriations
35
Cost of drugs and medicines of hospitals/sanitaria for sale
to patients
Sale/issuance or other modes of disposition of the above

items
Sec. 46. Accountable Forms Inventory (148). This account is

used to record the cost or appropriate value of accountable forms
acquired/requisitioned for use in the course of government operations
and/or sale.
Cost or appropriate value of accountable forms
Sale/Issuance of accountable forms (at cost)

Transfer of inventory to ROs/OUs
Other modes of disposition
Sec. 47. Office Supplies Inventory (149). This account is used

to record the value of office supplies, printed general forms, janitorial
supplies, IT supplies and other supplies purchased or acquired for use in
the course of government operations.
Purchase of office supplies and materials

Cost of office supplies and materials acquired free of
charge or thru donation
Use/Consumption of the above items

36
Sec. 48. Medical, Dental and Laboratory Supplies Inventory
(150). This account is used to record the appropriate value of medical,
dental and laboratory supplies acquired for use in the course of
government operations. It includes drugs and medicines purchased for
consumption of hospital/sanitary/clinic/center and other items used in
research activities.

Purchase of-
Medical and dental supplies
Drugs and medicines for clinic/hospital/sanitary/center
consumption
Laboratory supplies for use in research activities

Use/consumption of the above items
Sec. 49. Food and Non-food Supplies Inventory (151). This

account is used to record the appropriate value of non-perishable food
and non-food supplies inventory in hospitals (Dietary Units) and
penitentiary. It also includes those items purchased for distribution to
people affected by calamities/disasters/areas in conflict.

Purchase of food and non-food supplies for use by
patients, inmates and people affected in calamity-
ridden areas
Use/Consumption
Sec. 50. Gasoline, Oil and Lubricants Inventory (152). This

account is used to record the cost of gasoline, oil and lubricant,
purchased for stock for issuance/consumption in government operations.
37
Purchase of gasoline, oil and lubricants for stock to be
consumed in government operations

Use/Consumption
Sec. 51. Agricultural Supplies Inventory (153). This account

is used to record the cost or appropriate value of agricultural supplies
purchased or acquired thru donation for use in the implementation of
government programs.
Purchase or receipt of donated fertilizers and pesticides

Purchase or receipt of other donated agricultural supplies
Sale of fertilizers and pesticides and other agricultural

supplies
Issuance or consumption for the implementation of
projects
Sec. 52. Livestock and Crops Inventory (154). This account

is used to record the cost or appropriate value of fruits/crops harvested
and livestock acquired or purchased to be used in the dispersal
program/project of the government. It is also used to record livestock
produced and offered for sale upon reaching marketable age.
Purchase or acquisition of livestock to be used in the

dispersal program/project of the government
Livestock offered for sale upon reaching marketable age
Value of offspring, harvested fruits and crops
38
Issuance/Dispersal of livestock to the recipient
Sale of livestock/fruits and crops
For the purpose of identifying the particular asset account, the

following sub-accounts shall be used:
154 - 01 Livestock Inventory

154 - 02 Crops Inventory
Sec. 53. Spare Parts Inventory (155). This account is used to

record the cost or appropriate value of spare parts purchased for the
repair of vehicles, aircrafts, industrial machineries and other equipment.
Purchase of spare parts for use in the repair of vehicles,

aircrafts, industrial machineries and other equipment
Issuance of spare parts

Sec. 54. Construction Materials Inventory (156). This

account is used to record the cost or appropriate value of construction
materials purchased for projects undertaken by administration such as
painting, carpentry/construction/plumbing and electrical supplies.
Purchase of construction materials for projects undertaken

by administration
Return of items from the construction project to the
stockroom
Issuance of construction materials

39
Sec. 55. Other Agricultural Products Inventory (157). This
account is used to record the cost or appropriate value of produce from
fishery and other agricultural operations, which are intended for sale.
Inventory of produce from fishery and other agricultural

operations
Sale or other modes of disposition of fish and other

agricultural product
Sec. 56. Confiscated Goods Inventory (158). This account is

used to record the cost or appropriate value of confiscated goods and
properties which are decided in favor of the government.
Confiscated goods and properties
Sale of confiscated good and properties

Other modes of disposition of confiscated goods and
properties
Sec. 57. Other Inventory Items (160). This account is used to

record the cost or appropriate value of inventories which cannot be
classified under specific inventory accounts like, among others, forms
(income tax returns, voters forms, etc.) brochures, printed leaflets for
information dissemination of the government projects/programs, scrap
materials, motor vehicles plates, car stickers, workbooks used in schools, etc.
Inventory of forms/brochures/leaflets/motor vehicles

plates/car stickers, etc.
Inventory of workbooks for distribution to public schools
Inventory of scrap materials
40
Other inventory items

Sale/Issuance of other inventory items
Prepaid Expenses
Sec. 58. Prepaid Rent (161). This account is used to record

the advance payment and deposit for lease/rental of buildings, land,
equipment, office space, vehicles and other property, plant and
equipment for use in government operations.
Advance payment and deposit for lease/rental of buildings,

land, office space, equipment, vehicles and other
properties for use in government operations
Expired or expense portion at the end of the accounting

period
Sec. 59. Prepaid Insurance (162). This account is used to

record the advance payment for fidelity bond premiums of accountable
officers and insurance premiums of government properties.
Advance payment for -

Fidelity bond premiums of accountable officers
Insurance premiums of government properties

period
41
Sec. 60. Prepaid Interest (164). This account is used to record
advance payment of interest for loans contracted/guaranteed by the
government.
Interest payments made in advance for loans contracted/

guaranteed by the government

period
Sec. 61. Other Prepaid Expenses (165). This account is used

to record other prepaid expenses not included in any specific prepaid
accounts.
Other prepaid expenses
Expired portion of other prepaid expenses at the end of

accounting period
Sec. 62. Guaranty Deposits (166). This account is used to

record the amount of cash deposits, subject to refund, made to secure or
guaranty compliance with certain requirements in a transaction.
Deposits for the exercise of an option to levy or lease

Deposits to secure coinage
Deposits to secure BSP Notes
Deposits to secure stocks and bonds of GOCCs
Other deposits to guaranty performance
42
Refund/Forfeiture of the above deposits
Sec. 63. Deposits on Letters of Credit (167). This account is

used to record deposits made for the opening of letters of credit.

Deposits made for opening domestic/foreign letters of
credit
Application/Utilization of deposits for domestic/foreign

purchases
Sec. 64. Advances to Contractors (168). This account is used

to record the payment authorized by law to be made in advance to
contractors upon submission of the required bonds or stand-by letter of
credit.
Payment of authorized advances to contractors
Recoupment of authorized advances to contractors
Sec. 65. Other Current Assets (170). This account is used to

record deposits on containers and other current assets which cannot be
classified under specific current asset accounts.
Deposits on containers such as drums, gas, oxygen or

acetylene tanks, bottles and other containers
Other current assets, which cannot be classified under any
of the specific current asset accounts
Sale or disposition of the above items

43
Refund/Forfeiture of deposits made
Long-Term Investments
Sec. 66. Loans Receivable – Long-Term, LGUs (171). This

account is used to record long-term loans granted/relent to LGUs by the
National Government.

Long-term loans granted to LGUs
Collection of long-term loans granted/relent to LGUs
Sec. 67. Loans Receivable – Long-Term, GOCCs (172). This

account is used to record long-term loans granted/relent to GOCCs by
the National Government.

Long-term loans granted/relent to GOCCs
Collection of long-term loans granted/relent to GOCCs
Sec. 68. Loans Receivable – Long-Term, Others (173). This

account is used to record authorized long-term loans granted to private
entities.

Long-term loans granted/relent to private entities
44
Collection of long-term loans granted/relent to private
entities
Sec. 69. Investments in Stocks (174). This account is used to

record authorized long-term investments in stocks of government and
private corporations.

Subscription to capital stocks of government and private
corporations

Sale of stocks
Sec. 70. Investments in Bonds (175). This account is used to

record long-term investments in bonds of government and private
institutions.
Purchase of bonds issued by the government and private

institutions
Redemption of bonds
Resale of bonds
Sec. 71. Investments in GOCCs (176). This account is used to

record equity and other long-term investments of the National
Government to GOCCs.
Investments to GOCCs (non-stock)

Other long-term investments to GOCCs
45
Payments/Settlement received for investments
Sec. 72. Sinking Fund – Cash (177). This account is used to

record cash set aside for the liquidation of long-term debt.
Setting aside of cash as sinking fund
Purchase of sinking fund securities for the purpose of

temporary investment
Liquidation of long-term debt
Sec. 73. Sinking Fund – Securities (178). This account is

used to record securities purchased out of sinking fund to generate
income while waiting for the liquidation of long-term indebtedness.

Purchase of sinking fund securities

Redemption of securities
Sale of securities
Sec. 74. Other Long-Term Investments (179). This account

is used to record all other types of long-term investments, which cannot
be classified under specific investment accounts. It includes cost of
stocks/securities purchased from service enterprises as required before
service connection is made.

All other types of long-term investment
Cost of stocks/securities purchased from power and
telephone companies and other service enterprises as
required before service connections is made or the
needed service can be rendered
46
Sale or disposition of other types of long-term investments
Sale or disposition of stocks/securities purchased for
power and telephone companies and other service
enterprise
Sec. 75. Land (201). This account is used to record the cost or
appraised value or other appropriate value of land acquired by the
government including property rights and interests.

Purchase of land
Transfer from government agencies, private entities and
individuals
Transfer due to court order
Free acquisition/Donation

Sale
Transfer to government agencies
Donation
Sec. 76. Land Improvements (202). This account is used to

record the cost or appropriate value of land improvements, which are
more or less permanent or capital in nature such as; flagpoles, sidewalks,
fences, driveways, parking areas, etc.
Construction of land improvements

Transfer of land to where it was constructed by
government agencies, private entities and individuals
47
Sale of land to where it was constructed

Transfer of land to government agencies
Involuntary destruction
Donation of land to where it was constructed
Sec. 77. Accumulated Depreciation – Land Improvements

(302). This account is used to record the cumulative reduction in value of
land improvements due to use in the course of operation or in production
of income.

Accumulated amount of depreciation charged against the
land improvements upon destruction or transfer/sale of
land to where it was constructed
Periodic charges as depreciation expense for land

improvements
Sec. 78. Leasehold Improvements (203). This account is used

to record the cost or appropriate value of improvements made on leased
property.
Cost or appropriate value of improvements on leased

property
Reduction of leasehold improvements due to destruction

Sec. 79. Accumulated Depreciation – Leasehold

Improvements (303). This account is used to record the cumulative
reduction in value of leasehold improvements due to use in the course of
operation or in production of income.
48

leasehold improvements upon demolition or
termination of the lease
Periodic charges as depreciation expense for leasehold

improvements (Depreciable life is the life of the
leasehold improvement or the lease agreement
whichever is shorter.)
Sec. 80. Buildings (204). This account is used to record the

cost or appraised value of the buildings purchased or constructed (other
than school buildings, markets, slaughterhouses, hospitals and health
centers), including related improvements, which are capital in nature.
Purchase or construction of buildings

Additions, improvements, alterations, replacements, major
repairs, etc. which are capitalized when it extends the
life, increase the capacity or improve the efficiency or
safety of the property
individuals
Free acquisition/donation received
Sale
Demolition
Donation
49
Sec. 81. Accumulated Depreciation – Buildings (304). This
account is used to record the cumulative reduction in value of buildings
(other than school buildings, markets, slaughterhouses, hospitals and
health centers) due to use in the course of operation or in production of
income.

building upon retirement, sale or demolition
Periodic charges as depreciation expense for buildings
Sec. 82. School Buildings (205). This account is used to

record the cost or appraised value of school buildings purchased or
constructed including related improvements, which are capital in nature.
Purchase or construction of school buildings

individuals
Sale
Demolition
Donation
50
Sec. 83. Accumulated Depreciation – School Buildings
school buildings due to use in the course of operation or in the
production of income.
Cumulative amount of depreciation charged against the

building upon retirement, sale or demolition
Periodic charges as depreciation expense for school

buildings
Sec. 84. Markets and Slaughterhouses (206). This account is

used to record the cost or appraised value of markets and
slaughterhouses acquired or constructed.
Purchase or construction of markets and slaughterhouses

individuals

Sale
Donation

206 - 01 Markets
206 - 02 Slaughterhouses
51
Sec. 85. Accumulated Depreciation – Markets and
Slaughterhouses (306). This account is used to record the cumulative
reduction in value of markets and slaughterhouses due to use in the
course of operation or in production of income.

Cumulative amount of depreciation charged against
markets and slaughterhouses upon retirement, sale or
demolition

Periodic charges as depreciation expense for markets and
slaughterhouses
For the purpose of identifying the depreciation of the particular

asset account, the following sub-accounts shall be used:
306 - 01 Accumulated Depreciation - Markets

306 - 02 Accumulated Depreciation - Slaughterhouses
Sec. 86. Hospitals and Health Centers (207). This account is

used to record the cost or appraised value of hospitals and health centers
acquired or constructed.
Purchase or construction of hospitals and health centers

individuals
Sale
52
Demolition
Donation

207 - 01 Hospitals
207 - 02 Health Centers
Sec. 87. Accumulated Depreciation – Hospitals and Health

Centers (307). This account is used to record the cumulative reduction
in value of hospitals and health centers due to use in the course of
operation or in production of income.

hospitals and health centers upon retirement, sale or
demolition
Periodic charges as depreciation expense for hospitals and

health centers

307 - 01 Accumulated Depreciation - Hospitals

307 - 02 Accumulated Depreciation - Health Centers
Sec. 88. Other Structures (208). This account is used to

record the cost or appraised value of other structures acquired or
constructed.
Purchase or construction of other structures

53
individuals
Sale
Demolition
Donation
Sec. 89. Accumulated Depreciation – Other Structures

other structures due to use in the course of operation or in production of
income.
Cumulative amount of depreciation charged against other

structures upon retirement, sale or demolition
Periodic charges as depreciation expense for other

structures
Sec. 90. Industrial Machineries (209). This account is used to

record the cost or appraised value of industrial machineries acquired.
Purchase of industrial machineries

54
individuals
Items found at station
Sale
Donation
Sec. 91. Accumulated Depreciation – Industrial Machineries

industrial machineries due to use in the course of operation or in

industrial machineries upon retirement, sale or
destruction.
Periodic charges as depreciation expense for industrial

machineries
Sec. 92. Other Machineries (210). This account is used to

record the cost or appraised value of other machineries and equipment
acquired.
Purchase of other machineries and equipment

55
Transfer from government/agencies, private entities and
individuals
Sale
Donation
Sec. 93. Accumulated Depreciation – Other Machineries

machineries and equipment due to use in the course of operation or in

machineries upon retirement, sale or destruction

machineries
Sec. 94. Firefighting Equipment and Accessories (211). This

account is used to record the cost or appraised value of firefighting
equipment and accessories acquired.
Purchase of firefighting equipment and accessories

individuals
56
Sale
Donation

211 - 01 Firefighting Equipment

211 - 02 Accessories
Sec. 95. Accumulated Depreciation – Firefighting Equipment

and Accessories (311). This account is used to record the cumulative
reduction in value of firefighting equipment and accessories due to use in
the course of operation or in production of income.

firefighting equipment and accessories upon
retirement, sale or destruction
Periodic charges as depreciation expense for firefighting

equipment and accessories

311 - 01 Accumulated Depreciation - Firefighting Equipment

311 - 02 Accumulated Depreciation - Accessories
Sec. 96. Construction and Heavy Equipment (212). This

account is used to record the cost or appraised value of construction and
heavy equipment acquired.
57
Purchase of construction equipment
individuals
Sale
Donation
Sec. 97. Accumulated Depreciation – Construction and

Heavy Equipment (312). This account is used to record the cumulative
reduction in value of construction and heavy equipment due to use in the
course of operation or in production of income.

construction equipment upon retirement, sale or
destruction
Periodic charges as depreciation expense for construction

and heavy equipment
Donation
Sec. 98. Technical and Scientific Equipment (214). This

account is used to record the cost or appraised value of technical and
scientific equipment acquired.
Purchase of technical and scientific equipment
58
individuals

Sale
Donation

214 - 01 Technical Equipment
214 - 02 Scientific Equipment
Sec. 99. Accumulated Depreciation – Technical and

Scientific Equipment (314). This account is used to record the
cumulative reduction in value of technical and scientific equipment due
to use in the course of operation or in production of income.

technical and scientific equipment upon retirement,
sale or destruction

Periodic charges as depreciation expense for technical and
scientific equipment
314 - 01 Accumulated Depreciation - Technical Equipment
314 - 02 Accumulated Depreciation - Scientific Equipment
59
Sec. 100. IT Equipment and Software (215). This account is
used to record the cost or appraised value of IT equipment and software
acquired, purchased or developed.
Purchase of IT equipment and software including those
developed by the agency
individuals
Sale
Donation

215 - 01 IT equipment (from PCs to more complex

mainframes)
215 - 02 IT peripheral equipment ( such as printers,
external devices for back-up storage and
similar items)
215 - 02 Software (consisting of operating systems,
application software and the like)
Sec. 101. Accumulated Depreciation – IT Equipment (315).

This account is used to record the cumulative reduction in value of IT
equipment due to use in the course of operation or in production of
income.
Cumulative amount of depreciation charged against IT
equipment upon retirement, sale, or destruction
60
Periodic charges as depreciation expense for IT
equipment
Sec. 102. Telegraph, Telephone, Cable, TV and Radio

Equipment (216). This account is used to record the cost or appraised
value of telegraph, telephone, cable, TV and radio equipment acquired.

Purchase of telegraph, telephone, cable, TV and radio
equipment
individuals
Sale
Transfer to government agency
Donation

216 - 01 Telegraph
216 - 02 Telephone
216 - 03 Cable
216 - 04 TV
216 - 05 Radio Equipment
61
Sec. 103. Accumulated Depreciation – Telegraph, Telephone,
Cable, TV and Radio Equipment (316). This account is used to record
the cumulative reduction in value of telegraph, telephone, cable, TV and
radio equipment due to use in the course of operation or in production of
income.

telegraph, telephone, TV cable and radio equipment
upon retirement, sale or destruction.
Periodic charges as depreciation expense for telegraph,

telephone, cable, TV and radio equipment

316 - 01 Accumulated Depreciation - Telegraph

316 - 02 Accumulated Depreciation - Telephone
316 - 03 Accumulated Depreciation - Cable
316 - 04 Accumulated Depreciation - TV
316 - 05 Accumulated Depreciation - Radio Equipment
Sec. 104. Artesian Wells, Reservoirs, Pumping Stations

and Conduits (217). This account is used to record the cost or appraised
value of artesian wells, reservoirs, pumping stations and conduits
acquired/constructed.
Purchase/construction of artesian wells, reservoirs,

pumping stations and conduits
62
individual
Sale
Donation

217 - 01 Artesian Wells

217 - 02 Reservoirs
217 - 03 Pumping Stations
217 - 04 Conduits
Sec. 105. Accumulated Depreciation – Artesian Wells,

Reservoirs, Pumping Stations and Conduits (317). This account is
used to record the cumulative reduction in value of artesian wells,
reservoirs, pumping stations and conduits due to use or in production of
income.

artesian wells, reservoirs, pumping stations and
conduits upon retirement, sale or destruction
Periodic charges as depreciation expense for artesian

wells, reservoirs, pumping stations and conduits

asset account, the following sub-account shall be used:
317 - 01 Accumulated Depreciation - Artesian Wells

317 - 02 Accumulated Depreciation - Reservoirs
63
317 - 03 Accumulated Depreciation - Pumping Stations
317 - 04 Accumulated Depreciation - Conduits
Sec. 106. Motor Vehicles (218). This account is used to

record the cost or appraised value of motor vehicles acquired.
Purchase of motor vehicles

individuals
Sale
Donation
Sec. 107. Accumulated Depreciation – Motor Vehicles

motor vehicles due to use in operation or in production of income.
Cumulative amount of depreciation charged against motor

vehicles upon retirement, sale or destruction
Periodic charges as depreciation expense for motor

vehicles
64
Sec. 108. Watercrafts (219). This account is used to record
the cost or appraised value of watercrafts acquired.
Purchase of watercrafts
individuals
Sale
Donation
Sec. 109. Accumulated Depreciation – Watercrafts (319).

This account is used to record the cumulative reduction in value of
watercrafts due to use in the course of operation or in production of
income.

watercrafts upon retirement, sale or destruction
Periodic charges as depreciation expense for watercrafts
Sec. 110. Trains (220). This account is used to record the cost
or appraised value of trains acquired.
Purchase of trains
65
individuals
Sale
Donation
Sec. 111. Accumulated Depreciation – Trains (320). This

account is used to record the cumulative reduction in value of trains due
Cumulative amount of depreciation charged against trains

upon retirement, sale or destruction
Periodic charges as depreciation expense for trains
Sec. 112. Aircrafts/Aircraft Ground Equipment (221). This

account is used to record the cost or appraised value of aircrafts/aircraft
ground equipment acquired.
Purchase of aircrafts/aircraft ground equipment

individuals
66
Sale
Donation

221 - 01 Aircrafts
221 - 02 Aircraft Ground Equipment
Sec. 113. Accumulated Depreciation – Aircrafts/Aircraft

Ground Equipment (321). This account is used to record the
cumulative reduction in value of aircrafts/aircraft ground equipment due

aircrafts/aircraft ground equipment upon retirement,
sale or destruction
Periodic charges as depreciation expense for

aircrafts/aircraft ground equipment

321 - 01 Accumulated Depreciation – Aircrafts

321 - 02 Accumulated Depreciation – Aircraft Ground Equipment
67
Sec. 114. Office Equipment (222). This account is used to
record the cost or appraised value of office equipment acquired or
purchased.
Purchase of office equipment

individuals
Sale
Donation
Sec. 115. Accumulated Depreciation – Office Equipment

office equipment due to use in operation or in production of income.
Cumulative amount of depreciation charged against office

equipment upon retirement, sale or destruction.
Periodic charges as depreciation expense for office
equipment
Sec. 116. Other Equipment (223). This account is used to

record the cost or appraised value of other equipment acquired not
falling under specific property, plant and equipment accounts.
68
Purchase of other types of equipment
individuals
Sale
Donation
Sec. 117. Accumulated Depreciation – Other Equipment

other equipment due to use in operation or in production of income.

equipment upon retirement, sale or destruction

equipment
Sec. 118. Furniture and Fixtures (224). This account is used

to record the cost or appraised value of furniture and fixtures acquired.
Purchase of furniture and fixtures

69
individuals
Sale
Donation

224 - 01 Furniture
224 - 02 Fixtures
Sec. 119. Accumulated Depreciation – Furniture and

Fixtures (324). This account is used to record the cumulative reduction
in value of furniture and fixtures due to use in operation or in production
of income.

furniture and fixtures upon retirement, sale or
destruction
Periodic charges as depreciation expense for furniture and

fixtures

asset account, the following sub-accounts shall be use:
324 - 01 Accumulated Depreciation - Furniture

324 - 02 Accumulated Depreciation - Fixtures
70
Sec. 120. Ordnance (225). This account is used to record the
cost or appraised value of ordnance acquired.

Purchase of ordnance
individuals

Sale
Donation
Sec. 121. Accumulated Depreciation – Ordnance (325).

This account is used to record the cumulative reduction in value of
ordnance due to use in operation.

ordnance upon retirement, sale or destruction
Periodic charges as depreciation expense for ordnance
Sec. 122. Books (226). This account is used to record the cost
or appraised value of books acquired. This includes books in library of
various schools, national agencies including the National Library and
those purchased for use by students with a serviceable life for more than
one year.
71
Purchase of books
individuals
Sale
Donation
Sec. 123. Accumulated Depreciation – Books (326). This

account is used to record the cumulative reduction in value of books due
to use in government operations or production of income.
Cumulative amount of depreciation charged against books

upon retirement, sale or destruction

Periodic charges as depreciation expense for books
Sec. 124. Other Property, Plant and Equipment (227). This

account is used to record the cost or appraised value of other property,
plant and equipment acquired not falling under specific Property, Plant
and Equipment accounts.

Purchase of other property, plant and equipment
Transfer from government/agencies, private entities and
individuals
72
Sale
Donation
Sec. 125. Accumulated Depreciation – Other Property,

Plant and Equipment (327). This account is used to record the
cumulative reduction in value of other property, plant and equipment due
to use in operation or in production of income.
property, plant and equipment upon retirement, sale or
destruction

property, plant and equipment
Sec. 126. Work/Other Animals (228). This account is used to

record the cost or appraised value of work/other animals acquired or
purchased. This includes those in the zoos, wildlife, sanctuary, etc.
Purchase of work/other animals

Offsprings
individuals
Work/Other animals found at station
Sale
Death
Donation
73
228 - 01 Work Animals

228 - 02 Other Animals
Sec. 127. Breeding Stocks (229). This account is used to

record the cost or appraised value of breeding stocks acquired.
Purchase of breeding stocks

Offsprings
individuals
Breeding Stocks found at station
Sale
Death
Donation
Sec. 128. Construction in Progress – Agency Assets (230).

This account is used to record the cost or accumulated value of agency
assets, which are still under construction.
Materials, labor, overhead and other costs incurred while

the asset is under construction
74
Transfer to appropriate agency asset account upon
completion
For the purpose of identifying the particular asset accounts, the

230-01 Leasehold Improvements
230-02 Buildings
230-03 School Buildings
230-04 Markets and Slaughterhouses
230-05 Hospitals and Health Centers
230-9 Other
Structures
Sec. 129. Construction in Progress – Plaza, Parks and

Monuments (231). This account is used to record the cost or
accumulated value of plaza, parks and monuments, which are still under
construction.

Cost incurred while the plaza, parks and monuments are
under construction

Transfer to Public Infrastructures account upon completion

231-1 Plaza
231-2 Parks
231-3 Monuments
Sec. 130. Construction in Progress – Roads, Highways and

Bridges (232). This account is used to record the cost or accumulated
value of roads, highways and bridges that are still under construction.
75
Cost incurred while the roads, highways and bridges are
under construction

Transfer of discontinued infrastructure projects to Public
Infrastructures account

232-01 Roads
232-02 Highways
232-03 Bridges
Sec. 131. Construction in Progress – Ports, Lighthouses,

Harbors, Seawalls, River Walls and Others (233). This account is used
to record the cost or accumulated value of ports, lighthouses, harbors,
seawalls, river walls and other waterways improvements, which are still
under construction.
Cost incurred while the ports, lighthouses, harbors,

seawalls, river walls and other waterways
improvements are still under construction


233-1 Ports
76
233-2 Lighthouses
233-3 Harbors
233-4 Seawalls
233-5 River Walls
233-09 Others
Sec. 132. Construction in Progress – Airports and Runways

(234). This account is used to record the cost or accumulated value of
airports and runways, which are still under construction.
Cost incurred while the airports and runways are still

under construction


234-1 Airports
234-2 Runways
Sec. 133. Construction in Progress – Railways (235). This

account is used to record the cost or accumulated value of railroad tracts,
terminals and stations which are still under construction.
Cost incurred while the railways are still under

construction

77
Sec. 134. Construction in Progress – Waterways, Aqueducts,
etc. (236). This account is used to record the cost or accumulated value
of waterways, aqueducts, etc. which are still under construction.
Cost incurred while the waterways, aqueducts, etc. are still
under construction


236-1 Aqueducts
236-2 Waterways
236-3 Others
Sec. 135. Construction in Progress – Irrigation, Canals and

Laterals (237). This account is used to record the cost or accumulated
value of irrigation, canals and laterals that are still under construction.

Cost incurred while the irrigation, canals and laterals are
still under construction

Transfer to Public Infrastructures account upon
completion

78
237-1 Irrigation
237-2 Canals
237-3 Laterals
Sec. 136. Construction in Progress – Electrification, Power

and Energy Structures (238). This account is used to record the cost or
accumulated value of electrification, power, energy and related structural
projects which are still under construction.
Cost incurred while the electrification, power, energy

structures and related structural projects are still under
construction


238-1
Electrification
238-2 Power
238-3 Energy
Structures
Sec. 137. Construction in Progress – Other Public

Infrastructures (241). This account is used to record the cost or
accumulated value of all other Public Infrastructures not classified under
any specific type of public infrastructure accounts which are still under
construction.
Cost incurred while the other public infrastructures are

still under construction
79
Sec. 138. Construction in Progress – Reforestation Projects

(242). This account is used to record the cost or accumulated value of all
Reforestation Projects which are still in progress.
Cost incurred while the Reforestation Projects are still in

progress
Transfer to Reforestation Projects account upon

completion
Transfer of discontinued reforestation projects to
Reforestation Projects account
Sec. 139. Public Infrastructures (243). This account is used

to record completed/turned-over public infrastructures projects and those
projects, which were discontinued by the government.
Completed/turned-over public infrastructure projects

Discontinued public infrastructure projects
Transfer of completed/turned-over/discontinued public

infrastructures to Registry of Public Infrastructures at
the end of the accounting period
Sec. 140. Reforestation Projects (244). This account is used

to record completed/turned-over reforestation projects and those projects
which were discontinued by the government.
80
Completed/turned-over reforestation projects
Discontinued reforestation projects
Transfer of completed/turned-over reforestation projects to

Registry of Reforestation Projects at the end of the
accounting period.
Sec. 141. Arts, Archeological Specimens and Other

Exhibits (245). This account is used to record the cost or accumulated
value of art collections, literary masterpieces, archeological specimens
and other exhibits.
Purchase of art collections, literary masterpieces,

archeological specimens and other exhibits
individuals
Free acquisition/Donations
Sale
Donation

245-1 Art
Collections
245-2 Literary
Masterpieces
245-3
Archeological
Specimens
245-4 Other
Exhibits
81
Sec. 142. Items in Transit (249). This account is used to
record the cost or accumulated value of imported equipment already paid
but not yet delivered/received.
Value or cost of imported equipment purchased or paid but

not yet delivered/received
Value or cost of fixed assets delivered/received
Other Assets
Sec. 143. Other Assets (251). This account is used to record

the value of obsolete and unserviceable assets awaiting final disposition
as well as those assets still serviceable but are no longer being used.
These items are not subject to depreciation.
Cost of obsolete and unserviceable assets awaiting final

disposition including property and equipment no
longer used in the agency operation but still
serviceable
Sale
Donation
82
LIABI LITIE S AND E QUITY
LIABILITIES
Current Liabilities
Sec. 144. Accounts Payable (401). This account is used to

record obligations/indebtedness to contractors/suppliers arising from the
purchase of goods and services and other obligations in connection with
the agencies’ operation/trade/business.
Payment/liquidation/settlement of obligations
Settlement thru authorized offsetting of transactions
Reversions
Amount of liabilities arising from goods delivered or

services rendered
Excess payments received from private entities
Liabilities arising from the cancellation of checks issued
for which replacement shall be made
For the purpose of identifying the accounts, the following sub-

accounts shall be used:
401-1 Trade
401-2 Non-Trade
Sec. 145. Notes Payable (402). This account is used to record

liabilities arising from promissory notes and trade acceptances.
Payments made to settle promissory notes and trade

acceptances
Reversions
83
Value of promissory notes issued and trade acceptances
Sec. 146. Loans Payable – Current, Domestic (403). This

account is used to record the short-term loan from domestic creditors. It
includes the proceeds from the flotation/sale of treasury bills.
Settlement/Payment of loans/Redemption of treasury bills

and notes

Receipt of proceeds of short-term loans from domestic
sources
Sec. 147. Loans Payable – Current, Foreign (404). This

account is used to record the short-term loan from foreign governments
or international financial institutions.
Settlement/Payment of the loans
Receipt of proceeds of short-term loans from foreign

source
Sec. 148. Interests Payable (406). This account is used to

record charges imposed on the use of money belonging to others, such as
interests on bonds, provisional advances, treasury bills, treasury notes,
certificates of indebtedness, and other interest bearing obligations.
Payments made to settle liabilities on interest
84
Amount of interest due
Sec. 149. Tax Refunds Payable (407). This account is used

to record the estimated and actual payment of tax refunds for the year
based on the Special Provision for the Bureau of Internal Revenue (BIR)
in the General Appropriations Act.
Payment of tax refunds
Estimates of tax refunds for the year based on the Special

Provision for the BIR in the GAA
Sec. 150. Guaranty Deposits Payable (408). This account is

used to record cash received to guaranty performance which are
refundable/returnable to the depositor (such as deposits on returnable
containers, rental deposits, etc.) upon completion of the purpose for
which it was given or may be received to cover possible future damage
to property.
Refund of unused guaranty deposits

Refund/Forfeiture/Application of retention money/
guaranty deposits
Deposits to guaranty performance of contracts

Contractors’ retention money
Sec. 151. Tax Credit Certificates Payable (409). This

account is used to record the issuance of Tax Credit Certificates (TCCs)
to a taxpayer entitled/qualified to avail of the tax credit or duty drawback
and tax incentives authorized under the National Internal Revenue Code,
Tariff and Customs Code of the Philippines, and the Omnibus Investment
Code; the utilization; and redemption of the TCCs.
85
Application of the certificate for payment of taxes and

other qualified obligations to the National Government
Redemption from the issuing agency
Encashment of the certificate
Lapsed certificates
Tax Credit Certificates issued for:

- overpayment of tax liability,
- taxes erroneously or illegally
received,
- penalties imposed without
authority or legal basis,
- prepaid duties or taxes on
imported materials used in manufacturing a
product subsequently exported, as provided for in
the Tariff and Customs Code of the Philippines,
and
- other tax refunds authorized
under existing laws and regulations
Tax Credit Certificates issued for investment incentive
benefits
Sec. 152. Withholding Taxes Payable (410). This account is

used to record the liability for collections received or amount of taxes
withheld from officers and employees or other parties for remittance to
the BIR.
Remittance to the BIR of collections received or amounts

withheld for the account of the National Government
Issuance of Tax Remittance Advice (TRA)
Amounts collected/withheld from officers and employees
86
Amounts collected/withheld from private individuals/
companies on the purchase of goods and services
For identifying the classification of withholding taxes payable

subject to and not subject to TRA, the following sub-accounts shall be
used:
410-10 Subject to TRA 410-20 Not-Subject to TRA
410-11 Individual Withholding Tax 410-21 Individual Withholding Tax
410-12 Contractors Tax 410-22 Contractors Tax
410-13 Franchise Tax 410-23 Franchise Tax
410-14 VAT 410-24 VAT
410-19 Other Taxes 410-29 Other Taxes
Sec. 153. GSIS Payable (411). This account is used to record

the liability for collections received or amounts withheld from officers
and employees and government contribution for remittance to the
Government Service Insurance System (GSIS).
Remittance of collections received or amount withheld for

the account of the GSIS
Remittance of government contribution to the GSIS

Amount collected/withheld from officers and employees
for the account of the GSIS
Amount representing government contribution to the GSIS
Amount due for fire insurance premium, group accident
insurance premium and hospitalization insurance
premium
To identify the nature of collections or amount withheld, the

411- 01 Life and Retirement Insurance Premiums (Personal
and Government Share)
411 - 02 Optional Insurance Premiums
411 - 03 Salary Loan Installments
411 - 04 Policy Loan Installments
411 - 05 Optional Loan Installments
411 - 06 Real Estate Loan Installments
87
411 - 07 Emergency Loan Installments
411 - 08 Educational Loan Installments
411 - 09 Others
Sec. 154. PAG-IBIG Payable (412). This account is used to

record the liability for collections received or amounts withheld from
officers and employees and government share for remittance to the
Home Development Mutual Fund (HDMF).
Remittance of collections received or amounts withheld

for the account of the HDMF
Remittance of government contribution to the HDMF

for the account of the HDMF
Amount representing government contribution to the
HDMF
To identify the nature of collection withheld, the following sub-

412 - 01 PAG-IBIG Contributions (Personal and Government

Share)
412 - 02 Multi-purpose Loan Installments
412 - 03 Housing Loan Installments
412 - 04 Emergency and Provident Loan Installments
412 - 05 Furniture and Appliance Loan Installments
412 - 09 Others
Sec. 155. PHILHEALTH Payable (413). This account is

used to record the liability for collections received or amounts withheld
from officers and employees and government share for remittance to the
Philippine Health Insurance Corporation (PHIC).
Remittance of collections received or amounts withheld

for the account of the PHIC
88
Remittance of government contribution to the PHIC
Credit this account for

for the account of PHIC
Amount representing government contribution to the
PHIC
Sec. 156. Performance/Bidders/Bail Bonds Payable (414).

This account is used to record the liability arising from receipt of cash
bond to guarantee performance of the term of the contract, participation
in bidding, and compliance with court orders.
Refund of the bond

Forfeiture in case of non-compliance
Cash bond received to guarantee –

Performance of the term of the contract
Participation in bidding
Compliance with court orders
To identify the nature of collections withheld the following sub-

414-1
Performance Bonds
414-2 Bidders Bonds
414-3 Bail Bonds
Sec. 157. Due to Officers and Employees (428). This

account is used to record the amount of liabilities due to officers and
employees of the agency.
89
Payment or liquidation of obligations due to officers and
employees
Settlement thru authorized offsetting of transactions
Unpaid salaries, fringe benefits and other emoluments and

other obligations due to officials and employees of the
agency
Liabilities arising from the cancellation of checks issued to
officers and employees subject to replacement
Sec. 158. Due to NGAs (430). This account is used to record

the amount of liabilities due to national government agencies including
those inter-agency transferred funds received for the implementation of
specific programs/projects.
Payment of liabilities
Payment received to settle or liquidate liabilities due to
NGAs
Settlement thru offsetting of inter-agency/inter-office
transactions
Reversion of Payables
Refund of excess transferred funds
Amount due arising from inter-agency transferred fund

Receipt of goods delivered from national government
agencies
Services rendered by national government agencies
Amounts due arising from inter-agency transactions
Liabilities arising from the cancellation of checks issued
for which replacement shall be made
For the purpose of identifying the various NGAs, individual sub-

accounts shall be maintained.
90
Sec. 159. Due to LGUs (431). This account is used to record
the amount of liabilities due to LGUs. This includes collections received
or amounts withheld for the account of LGUs.
Payment/liquidation/settlement of liabilities due to LGUs

Reversion of payables
Replacement of stale/cancelled checks
Amounts received or collected for the account of LGUs

Receipt of goods from LGUs
Amount of liabilities arising from the cancellation of
checks issued for which replacement shall be made
For the purpose of identifying the various LGUs, individual

sub-accounts shall be maintained.
Sec. 160. Due to GOCCs (432). This account is used to

record amount of liabilities due to GOCCs. This includes funds
advanced or entrusted by government corporations to finance specific
projects or activities and amounts withheld from employees for the
account of government corporations other than GSIS, PHILHEALTH
and PAG-IBIG.
Payment/liquidation/settlement of liabilities due to

GOCCs
Liquidation of the advances received from GOCCs
Remittance of amounts withheld from employees for the
account of government corporations other than GSIS,
PHILHEALTH and PAG-IBIG.
Replacement of stale/cancelled checks
91
Amounts withheld from employees for the account of
government corporations other than GSIS,
PHILHEALTH and PAG-IBIG
Advances received from GOCCs for specific purposes or
expenditures
Receipt of goods from GOCCs
Amount of liabilities arising from the cancellation of
checks issued for which replacement shall be made
For the purpose of identifying the various GOCCs, individual
sub-accounts shall be maintained.
Sec. 161. Due to National Treasury (433). This account is

used to record collections due for remittance to National Treasury.
Remittance of collections to the National Treasury
Setting-up of liability due to the National Treasury
Sec. 162. Due to Central Office (435). This account is used

to record Inter-Office transactions in the books of Regional Offices/Staff
Bureaus/Operating Units (RO/SB/OU). It also includes setting up of
payable to CO at year-end equivalent to the unobligated balance of
allotment covered by funding check except those for continuing
appropriation.
Inter-Office transactions
Remittance of funds to CO pertaining to unobligated
Setting up of payables to CO at year-end equivalent to the
check
92
Sec. 163. Due to Regional Offices/Staff Bureaus (436). This
account is used to record Inter-Office transactions in the books of Central
Offices/Staff Bureaus/Operating Units (CO/SB/OU). It also includes
setting up of payable to RO at year-end equivalent to the unobligated
balance of allotment covered by funding check except those for
continuing appropriations.
Remittance of funds to RO by OU pertaining to
check
Setting up of payables to RO by OU at year-end
equivalent to the unobligated balance of allotment
covered by funding check
Sec. 164. Due to Operating Units (437). This account is used

to record Inter-Office transactions in the books of Central/Regional
Offices (CO/RO) except those for continuing appropriations.
Sec. 165. Retirement Gratuity Benefits Payable (439). This

account is used to record claims of retired government officers and
employees for retirement gratuity benefits.
Payment/settlement of retirement gratuity claims of retired

government officers and employees
93
Amount set for claims of retirement gratuity of retired

government officers and employees
Sec. 166. Deferred Credits to Income (440). This account is

used to record amount collected for revenues not yet earned.
Income earned during the period
Collections for-
Services not yet rendered
Goods not yet delivered
Income not yet earned
Sec. 167. Other Deferred Credits (441). This account is

used to record collections received for items not specifically included in
account “Deferred Credits to Income”
Transfer to appropriate account
Collections for items not specifically included in account

“Deferred Credits to Income”
Sec. 168. Other Payables (450). This account is used to

record all other current liabilities not falling in any of the specific current
liability account including those authorized deduction from salaries and
other liabilities of the government, payment of which are held in escrow.

Payments made to settle/liquidate liability
94
Authorized amount collected/withheld from officers and

employees for the account of private associations/
entities
Amount due which had arisen from court order
Amount due for deposits held in escrow
Long-Term Liabilities
Sec. 169. Loans Payable – Long-Term, Domestic (451).

This account is used to record long-term indebtedness (loans in cash or
in kind) from domestic creditors evidenced by a contract or an
agreement.
Settlement/Payment of matured portion of the loan
Receipt of the proceeds of long-term loans from domestic

sources
Sec. 170. Loans Payable – Long-Term, Foreign (452). This

account is used to record long-term indebtedness/loans (in cash or in
kind) from foreign governments or international financial institutions
evidenced by a contract or an agreement.
Settlement/Payment of matured portion of the loan

Decrease in liability due to FOREX gain upon revaluation
Receipt of the proceed of long-term loans from foreign

sources
Increase in liability due to FOREX loss upon revaluation
95
Sec. 171. Mortgage Payable (453). This account is used to
record long-term indebtedness covered by a contract and secured by a
collateral to guarantee payment.
Settlement/Payment of the loan

Amounts received in exchange of the collateral
Sec. 172. Bonds Payable – Long-Term, Domestic (454).

This account is used to record the amount of long-term indebtedness to
domestic creditors for bonds issued.
Settlement/Payment of matured bonds
Bonds issued/floated
Sec. 173. Bonds Payable – Long-Term, Foreign (455). This

account is used to record the amount of long-term indebtedness to
foreign creditors for bonds issued.
Settlement/Payment of the matured bonds

Decrease in liability due to FOREX gain upon revaluation
Bonds issued/floated to foreign creditors

Increase in liability due to FOREX loss upon revaluation
Sec. 174. Other Long-Term Liabilities (460). This account is

used to record all other long-term liabilities not falling under any of the
specific long-term liability accounts.
96
Settlement/Payment of the long-term liabilities
Incurrence of other long-term liabilities not classified

under specific accounts
Other Liabilities
Sec. 175. Other Liabilities (465). This account is used to

record the other liabilities which cannot be classified under specific
liability accounts like Backpay Certificates of the BTr.
Payment of liabilities
Incurrence of liabilities not classified under specific

liability accounts
EQUITY
Sec. 176. Government Equity (501). This account represents

the difference between the assets and liabilities of national government
agencies.
Transfer of Public Infrastructures/Reforestation Projects

account to the Registry of Public Infrastructures/
Reforestation Projects
Year-end closing of the debit balance of Retained
Operating Surplus account
97
Year-end closing of the credit balance of Retained

Intermediate Accounts
Sec. 177. Cost of Goods Sold (531). This account is used to

record the cost of goods or merchandise sold in the course of business
operation of government agency such as drugs and medicines, supplies
and materials, accountable forms with face value, etc.
Cost of merchandise/accountable forms sold
Year-end closing to Income and Expenses Summary

account
Sec. 178. Income and Expense Summary (532). This

account is used as a summary account for all subsidies received,
revenues earned and expenses incurred during the year.
Year-end closing of the balances of-

Expenses incurred during the year
Cost of Goods Sold
Subsidy to Regional Offices/Staff Bureaus
Subsidy to Operating Units
Year-end closing of the credit balance (net result) of this
account to Retained Operating Surplus account
98
Year-end closing of the balances of-

Subsidy Income from National Government
Revenue earned during the year
Subsidy from Central Office
Subsidy from Regional Offices/Staff Bureaus
Year-end closing of the debit balance (net result) of this
Sec. 179. Prior Years’ Adjustments (533). This account is

used to record the adjustment of prior years’ transactions affecting
revenue and expenses and other adjustments which would increase or
decrease the Retained Operating Surplus account of the Government.
Adjustment of excess revenue recorded in prior years

Setting-up of liability due to excess income collected and
remitted to the National Treasury in prior years for
refund to Payor
Payment of unrecorded expenses of prior years
Setting-up of liability for unrecorded expenses of prior
years
Remittance of -
Refund of cash advance granted in prior years
Refund of overpayment of expenses pertaining to prior
years
Cash settlement of disallowances of prior years
Other adjustments of prior years’ transactions which result
in the decrease of the Retained Operating Surplus
account
Setting-up of receivable account for disallowances of prior

years expenses
99
Collection of prior years’ disallowances and refund of
overpayments of expenses pertaining to prior years
Other adjustments of prior years’ transactions, which result
in the increase of the Retained Operating Surplus
account to Retained Operating Surplus
Recoveries of prior years’ accounts which were
previously written-off
Sec. 180. Retained Operating Surplus (534). This account

reflects the net result of Income and Expense Summary and Prior Years’
Adjustments accounts prior to closing to Government Equity Account.

account to Government Equity account
Year-end closing of the debit balance (net result) of Prior
Years’ Adjustments account

account to Government Equity account
Year-end closing of the credit balance of Prior Years’
Adjustments account
Sec. 181. Subsidy to Regional Offices/Staff Bureaus (538).

This account is used by the Central Office to record the amount of
funds/assets transferred to the Regional Offices/Staff Bureaus of an
agency or department for its operation.

Transfer of funds to the Regional Offices of department/
agency
Transfer of funds to the Staff Bureau of a department

Setting-up of liability to CO equivalent to the unobligated
100
Year-end adjustment upon remittance of cash equivalent to
the obligated balance of allotment covered by funding
checks
Year-end closing to Income and Expense Summary
account
Sec. 182. Subsidy to Operating Units (539). This account is

used by the Central Office/Regional Office to record the amount of
funds/assets transferred to the Operating Units of an agency or
department for its operation.

Transfer of funds to the Operating Units of an agency or
department

account
Year-end adjustment upon remittance of cash or setting up
of liability to RO/CO equivalent to the unobligated
balance of allotment covered by funding checks
Sec. 183. Gain or Loss due to Dormant Accounts (540).

This account is used to record transfer of dormant assets/liabilities to the
Registry of Dormant Accounts in accordance with existing rules and
regulations.
Transfer of dormant assets to Registry of Dormant

Accounts
Year-end closing of credit balance (net result) to Retained
Transfer of dormant liabilities to Registry of Dormant

Accounts
Year-end closing of the debit balance (net result)) to
Retained Operating Surplus account
101
REVENUE/INCOME
GENERAL INCOME
Sec. 184. Subsidy Income from National Government

(601). This account is used to record the amount of Notice of Cash
Allocation (NCA) received, Tax Remittance Advice (TRA) issued, tax
exemption granted by the National Government and payment of national
government agencies’ liabilities by foreign lending/donor institutions.
Remittance of -
Refund of cash advance granted in current year
Refund of overpayment of expenses pertaining to
current year
Cash settlement of disallowances of current year
Closing/Reversion of unused balance of subsidy/NCA at
expiry/date/year-end
Year-end closing of used subsidy/NCA to Income and
Expense Summary account
Receipt of NCA for current year’s operation

Receipt of NCA for prior years accounts payable
Issuance of TRA by National Government Agencies
Grant of tax exemption for importation of
goods/equipment
Receipt of withdrawal application from the BTr for
payment by foreign lending/donor institutions of
government agencies
102
Sec. 185. Subsidy from Central Office (602). This account is
used to record the subsidy received by the Regional Office/Staff Bureau
and Operating Unit from Central Office by way of funding check
received/fund transfer thru Authorized Government Servicing Banks
(AGSBs)/transfer of assets
Remittance of –
current year
Year-end adjustment upon remittance of cash/setting up of
liability equivalent to the unobligated balance of
allotment covered by funding check
account
Receipt of subsidy thru funding check/fund transfer from

Central Office
Sec. 186. Subsidy from Regional Office/Staff Bureau (603).

This account is used to record the subsidy received by the Operating Unit
from the Regional Office/Staff Bureau by way of funding check or fund
transfer thru AGSBs or transfer of assets.
Remittance of –
current year
Year-end adjustment upon remittance of cash/setting up of
liability equivalent to the unobligated balance of
allotment covered by funding check/fund transfer
103
Receipt of subsidy from Regional Office/Staff Bureau
Sec. 187. Income from Government Services (611). This

account is used to record all types of revenues generated by the
government in the exercise of its administrative and regulatory functions.
Example of this type of income are: surveyors or cadastral fees,
registration fees, naturalization fees, police clearance fees, passports
fees, courts fees, certifications fees, admission fees to government
museums, parks, cultural and recreational facilities, production share for
energy exploration projects, etc.
Sec. 188. Income from Government Business Operations

(612). This account is used to record revenue generated by government
agencies from business operation, such as spectrum fees, suspension
fees, sale of plants and other farm products, receipts from public utilities,
etc.
Sec. 189. Sales Revenue (613). This account is used to record

all income derived from business operations of agencies engaged in
trade, business and commerce.
Sec. 190. Rent Income (621). This account is used to record

rent earned from lease of property such as; lands, buildings, machineries
and equipment to other government agencies, non-government
organizations and the private sector.
Sec. 191. Insurance Income (622). This account is used to

record all premiums earned from life insurance, fidelity, medicare,
employees’ compensation, third party liability, property and other non-
life insurance and reinsurance.
Sec. 192. Dividend Income (623). This account is used to

record cash dividends earned from investments on stocks of government
corporations and private enterprises.
Sec. 193. Interest Income (624). This account is used to

record all interest earned on deposits with banks, loans and investments
on bonds, treasury notes, treasury bills and promissory notes held.
Sec. 194. Gain on Sale of Securities (625). This account is
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used to record the gains realized on the sale of bonds and securities
including stocks/securities secured from service enterprises as required
before service connection is made.
Sec. 195. Gain on Sale of Assets (626). This account is used

to record the excess of the proceeds from sale of assets over their net
book value (accumulated depreciation deducted).
Sec. 196. Sale of Confiscated Goods and Properties (627).

This account is used to record income derived from the sale of
goods/properties confiscated and decided in favor of the government.
Sec. 197. Foreign Exchange (FOREX) Gain (628). This

account is used to record gains in the conversion of foreign currencies to
Philippine Peso. In the case of revaluation of the outstanding foreign
loans, it is the resulting difference when the prevailing exchange rate is
lower than the exchange rate at the time of the transactions or last
adjustment.
Sec. 198. Miscellaneous Operating and Service Income

(639). This account is used to record all other income from non-tax
sources not elsewhere classified.
Sec. 199. Fines and Penalties – Government Services and

Business Operations (641). This account is used to record all fines and
penalties levied in connection with non-tax sources of income/revenue.
Sec. 200. Income from Grants and Donations (651). This

account is used to record all non-repayable grants, donations in cash
and in kind received from other levels of government, private sector or
international institutions.
SPECIFIC INCOME
TAX REVENUE
(For recording only in the NG Books)
Income Taxes
Sec. 201. Income Tax – Individuals (701). This account is
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used to record income taxes imposed on individual taxpayers including
citizens, resident aliens, non-resident citizens for income in and outside
the Philippines, non-resident aliens for income earned in the Philippines,
aliens employed by Regional or Area Headquarters and Regional
Operating Headquarters of multi-national corporations.
Sec. 202. Income Tax – Partnerships (702). This account is

used to record taxes imposed on income from partnerships’ business
operations during the year or period covered by the return.
Sec. 203. Income Tax – Corporations (703). This account is

used to record taxes imposed on income from business operations during
the year or period by domestic corporations, private educational
institutions, resident foreign corporations, international carriers, and non-
resident foreign corporations.
Property Taxes
Sec. 204. Stock Transfers Tax (716). This account is used to

record taxes imposed on the transfer of stock from one person to another
as recorded in the Stock and Transfer Book of the corporation pursuant
to Section 127, National Internal Revenue Code (NIRC) of the
Philippines.
Sec. 205. Capital Gains Tax (717). This account is used to

record taxes imposed on gains realized by the seller from the sale,
exchange, or other disposition of capital assets located in the Philippines,
including pacto de retro sales and other forms of conditional sale.
106
Sec. 206. Donors Tax (718). This account is used to record
taxes on a donation or gift imposed on the gratuitous transfer of property
between two or more persons who are living at the time of the transfer.
Sec. 207. Estate Tax (719). This account is used to record

taxes imposed on the right of the deceased person to transmit his/her
estate to his/her lawful heirs and beneficiaries at the time of death and on
certain transfers which are made by law as equivalent to testamentary
disposition.
Taxes On Goods And Services
Sec. 208. Excise Taxes on Articles (721). This account is

used to record taxes imposed on goods manufactured or produced in the
country for domestic sale or consumption or for any other disposition
and items imported (Section 129, NIRC of the Philippines). The excise
tax is in addition to the value added tax. Articles subject to excise tax
include alcohol products, wines, fermented liquor, tobacco products,
cigar and cigarettes, films, saccharine, mineral products, automobiles,
and certain non-essentials like jewelry, perfumes, yachts and other
vessels intended for pleasure or sports.
Sec. 209. Value Added Tax (722). This account is used to

record taxes levied, assessed and collected on every sale, barter or
exchange of goods, properties and services payable by the seller, lessor,
or transferor. It is imposed at every stage of distribution process on the
sale, barter, exchange (including any other transaction deemed by law as
sale), or lease of goods or properties and on the performance of service
in the course of trade or business, or on the importation of goods,
whether for business or non-business purposes pursuant to Section 105,
NIRC of the Philippines.
Sec. 210. Business Taxes and Licenses (723). This account is

used to record taxes imposed and collected on every sale, barter or
exchange of goods subject to VAT; importation of goods subject to VAT;
and sale of services subject to VAT such as services rendered or
performed by construction and service contractors; stock, real estate,
commercial, customs and immigration brokers; lessors or distributors of
cinematographic films; persons engaged in milling, processing,
manufacturing or repacking goods for others; and similar services,
regardless of whether or not the performance thereof calls for the
exercise or use of the physical and mental faculties.
107
This account is also used to record taxes imposed on certain
taxpayers subject to other percentage taxes such as operators of hotels,
motels, rest houses, pension houses, lodging houses and resorts;
proprietors and operators of restaurants, refreshment parlors and other
eating places, including clubs and caterers; common carriers and
transportation contractors; dealers in securities; lending investors; banks
and non-bank financial intermediaries; finance companies; insurance
companies; agents of foreign insurance companies; operators of
amusement places; persons who wins in horse races and owners of
winning horses; sellers of goods and services exempt from value added
tax under Sec. 109 of the NIRC which are not VAT- registered.
Sec. 211. Franchise Tax (724). This account is used to record

taxes and charges collected on account of special privilege or right
conferred to an individual or corporation by the state, through the
legislature, to exercise certain powers and privileges such as the power to
operate public utilities.
Sec. 212. Miscellaneous Taxes on Goods and Services (735).

This account is used to record other taxes and charges imposed on goods
and services.
Taxes on International Trade and Transactions
Sec. 213. Import Duties (736). This account is used to record

levies imposed under the Tariff Code on goods that are entering the
country for purposes of protecting locally manufactured goods of similar
nature or for purposes of generating revenues that are based on the
assessed value of the goods.
Other Taxes
Sec. 214. Documentary Stamp Tax (741). This account is

used to record stamp tax levied upon documents, instruments, loan
agreements and papers, and upon acceptances, assignments, sales and
transfers of the obligation, right or property incident thereto, on bonds,
debentures, certificate of stocks, life insurance policies, etc. pursuant to
Section 173 to 198, NIRC of the Philippines.
Sec. 215. Taxes on Forest Products (754). This account is

used to record all taxes charged on timber and firewood cut in public
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forests and wood cut from unregistered private lands, and on other forest
products lawfully removed under gratuitous licenses pursuant to
Sec. 262-273 of Commonwealth Act (CA) No. 466, as amended.
Sec. 216. Immigration Taxes (755). This account is used to

record all taxes and other charges imposed to immigrants under the
immigration laws.
Sec. 217. Miscellaneous – Other Taxes (759). This account is

used to record other taxes and charges not classified under specific tax
accounts.
Sec. 218. Fines and Penalties – Tax Revenue (760). This

account is used to record all fines and penalties charge/imposed in
relation to tax revenue. It also includes bank penalties due to late
remittance of taxes collected thru AGDBs to the National Treasury.
Other Specific Income
Sec. 219. Registration Fees (761). This account is used to

record motor vehicle users’ charge collected by the Land Transportation
Office and registration fees collected by schools.
Sec. 220. Tuition/Affiliation Fees (762). This account is used

to record tuition/affiliation fees received from students of State
Universities and Colleges (SUCS) and other government run schools.
Sec. 221. Hospital Fees (763). This account is used to record

regular charges by hospitals for services rendered to patients.
Sec. 222. Medical, Dental and Laboratory Fees (764). This

account is used to record fees received for medical, dental and laboratory
examinations.
Sec. 223. Library Fees (765). This account is used to record

fees received by schools and other agencies for use of the library.
Sec. 224. Athletic and Cultural Fees (766). This account is

used to record fees collected from students for athletic and cultural
109
activities.
Sec. 225. Comprehensive Examination Fees (767). This

account is used to record fees collected from students and professionals
for the conduct of comprehensive examinations.
Sec. 226. Transcript of Records Fees (768). This account is

used to record fees collected from students for the issuance of transcript
of records.
Sec. 227. Diploma and Graduation Fees (769). This account

is used to record fees collected from students for the issuance of diploma
and conduct of graduation activities.
Sec. 228. Inspection Fees (770). This account is used to

record fees collected for the conduct of inspection by authorized
government officials.
Sec. 229. Permit Fees (771). This account is used to record

fees collected for the issuance of permits by authorized government
agencies.
Sec. 230. Clearance/Certification Fees (773). This account

is used to record fees collected from the issuance of clearances/
certificates to individuals/organizations/groups/agencies/corporations by
government agencies.
Sec. 231. Franchising/Licensing Fees (774). This account is

used to record fees realized from the issuance of franchises/licenses to
individuals/organizations/ groups/agencies/corporations by government
agencies.
Sec. 232. Printing and Publication Income (776). This

account is used to record receipts from sale of printed forms, materials
and other publications produced by government agencies.
Sec. 233. Income from Canteen Operations (777). This

account is used to record income of canteen/cafeteria/eatery operated by
Sec. 234. Income from Dormitory Operations (778). This

account is used to record collections by dormitories/lodging
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houses/hostels owned and operated by government agencies.
Sec. 235. Receipt from Communication Facilities (780).

This account is used to record income realized from use of
communication facilities owned by government agencies.
Sec. 236. Toll Fees (786). This account is used to record fees
collected for use of roads, bridges, ferries and piers constructed/owned
and managed by government agencies.
Sec. 237. Landing and Parking Fees (787). This account is

used to record income realized from the use of runways and airports by
foreign and domestic airlines.
Sec. 238. Other Income from School Services (788). This

account is used to record other income for services rendered by schools,
colleges and universities not classified under any of the specific income
accounts.
Sec. 239. Other Income from School Business Operations

(789). This account is used to record other income from business
operations of schools, colleges and universities not classified under any
of the specific income accounts.
Sec. 240. Other Income from Hospital Services (790). This

account is used to record income from other services rendered by
hospital not classified under any of the specific income accounts.
Sec. 241. Other Income from Hospital Business Operations

(791). This account is used to record income from other business
operations of hospitals not classified under any of the specific income
accounts.
Sec. 242. Fines and Penalties – Other Specific Income

(799). This account is used to record all collections of fines and penalties
charged/imposed in relation to other specific income accounts.
EXPENSES
Personal Services
111
Sec. 243. Salaries and Wages – Regular Pay (801). This
account is used to record the pay proper of regular government
employees for services rendered.
Sec. 244. Salaries and Wages – Part Time Pay (802). This
account is used to record the pay proper of part-time government
employees for services rendered.
Sec. 245. Salaries and Wages-Casual/Contractual (803).

This account is used to record the pay proper of casual and contractual
government employees for services rendered.
Sec. 246. Personnel Economic Relief Allowance (PERA)

(804). This account is used to record allowances granted to all appointive
national government employees occupying itemized plantilla positions,
casual and contractual employees and uniformed personnel of the AFP,
DILG and NAMRIA pursuant to the annual appropriations act.
Sec. 247. Additional Compensation (ADCOM) (805). This

account is used to record the payment of allowance authorized under
Administrative Order No. 53 dated May 17, 1993 granted to all
government personnel whether regular or casual; and those on temporary
status or contractual personnel whose employment is in the nature of a
regular employee.
Sec. 248. Representation Allowance (RA) (806). This

account is used to record representation allowance granted to authorized
officials and employees while in the actual performance of their
respective functions.
Sec. 249. Transportation Allowance (TA) (807). This

account is used to record allowance granted to authorized officials and
employees for transportation expenses, which shall be paid from
appropriations provided for their respective offices.
Sec. 250. Clothing Allowance (808). This account is used to

record allowance granted to government officials and employees for
office uniforms at such amount as may be authorized by applicable
General Appropriations Act, which may be given in kind or in cash.
Sec. 251. Honoraria (809). This account is used to record

payment for services rendered by government personnel performing
112
activities or discharging duties in addition to, or over and above their
regular functions, and payment for services of personnel with expertise
or professional standing in recognition of his broad and superior
knowledge in specific fields.
Sec. 252. Hazard Pay (810). This account is used to record

compensation paid to employees who are working or assigned in
difficult, dangerous, strife-torn or embattled areas as certified by the
Department of National Defense, and whose lives are directly exposed to
work conditions which may cause injury, sickness or death or harmful
change in the human organism, such as; exposure to harmful chemicals,
wastes and pollutants, micro-organisms and other harmful elements, or
situations that endanger life or health as certified by authorized
government agency.
Sec. 253. Overtime and Night Pay (811). This account is

used to record payment for working in excess of the minimum total
hours set for a given period to regular/casual/contractual employees of
the agency.
Sec. 254. Holiday Pay (812). This account is used to record

compensation paid to government employees who rendered authorized
services on holidays.
Sec. 255. Christmas Bonus (813). This account is used to

record Christmas bonus given to government officers and employees as
authorized by law.
Sec. 256. Cash Gift (814). This account is used to record

cash gift granted to government officials and employees as authorized by
law.
Sec. 257. Productivity Incentive Benefits (815). This

account is used to record incentive benefits for the recognition of
government officers and employees' productivity and performance as
authorized by law.
Sec. 258. Other Bonuses and Allowances (816). This

account is used to record the payment of other bonuses and allowances
not classified under the specific accounts as authorized by law, such as
subsistence, laundry, living quarters, allowance, etc.
113
Sec. 259. Life and Retirement Insurance Contributions
(817). This account is used to record the government’s share in premium
contributions to life insurance and retirement funds of the GSIS.
Sec. 260. PAG-IBIG Contributions (818). This account is

used to record the government's share of premium contributions to the
Home Development Mutual Fund (HDMF).
Sec. 261. PHILHEALTH Contributions (819). This account

is used to record the government’s share in premium contributions to
health insurance funds maintained with the Philippine Health Insurance
Corporation (PHIC).
Sec. 262. ECC Contributions (820). This account is used to

record the government's share in premium contributions to the
Employees' Compensation Commission (ECC).
Sec. 263. Pension and Retirement Benefits (821). This

account is used to record pensions and retirement benefits of government
officers and employees and/or their dependents for past services
rendered.
Sec. 264. Terminal Leave Benefits (822). This account is

used to record payment for the money value of the total accumulated
leave credits of government officials employees upon retirement or
voluntary separation.
Sec. 265. Health Workers’ Benefits (823). This account is

used to record benefits given to health workers.
Sec. 266. Subsistence and Quarters’ Allowances (824). This

account is used to record subsistence and quarters’ allowances given to
authorized government officials and employees.
Sec. 267. Longevity Pay (825). This account is used to

record longevity pay given to government officers and employees as
authorized by law.
114
Sec. 268. Other Personnel Benefits (830). This account is
used to record benefits not classified under any of the specific personnel
benefits accounts, such as monitezation of leave credits, loyalty cash
award, medical insurance premium, medical/hospital expense, executive
check up, etc.
Sec. 269. Traveling Expenses – Local (831). This account is

used to record expenses incurred in the movement of persons within the
Philippines whether employed in the government or not, such as;
transportation, travel per diems; hire of guides or patrol; ferriage;
transportation of personal baggage or household effects; bus, rail road,
airline, and steamship fares; tips, airport fees, porter fees, transfers, etc.
of persons while on official travel; charter of boats, launches, cars, road
tolls, parking fees and all other similar expenses.
Sec. 270. Traveling Expenses – Foreign (832). This account

is used to record expenses incurred in the movement of persons outside
the Philippines whether employed in the government or not, such as;
transportation of personal baggage or household effects; bus, rail road,
airline, and steamship fares; tips, airport fees, porter fees, transfers,
passport fees, etc. of persons while on official travel; charter of boats,
launches, cars, road tolls, parking fees and all other similar expenses.
Sec. 271. Training and Seminar Expenses (833). This

account is used to record expenses incurred for participation/attendance
of personnel to training, conventions and seminar/workshops. It also
includes expenses incurred related to training such as payment of
honoraria to lecturers, hand outs given, supplies and materials used,
meals and snacks.
Sec. 272. Water (834). This account is used to record costs of

water consumed in government facilities in connection with government
operations and projects.
Sec. 273. Electricity (835). This account is used to record

costs of electric power or illumination consumed in government facilities
such as: office buildings, shops and grounds, streets, plaza, parks and
monuments, etc. in connection with government operations and projects.
115
Sec. 274. Cooking Gas (836). This account is used to record
the cost of cooking gas consumed in connection with government
Sec. 275. Telephone/Telegraph and Internet (837). This

account is used to record the costs of transmission of messages, such as:
telephone, facsimile machines, telegraph, wireless and cable charges and
tolls, telegraph messenger services, and internet services.
Sec. 276. Postage and Deliveries (838). This account is used

to record the costs of postage, rent of post office boxes, and cost of
deliveries of letters and other messages and documents, cost of
transporting official forms, documents/records and good, etc.
Sec. 277. Subscription Expenses (839). This account is used

to record the costs of subscription to library materials, such as:
magazines, periodicals, and other reading materials.
Sec. 278. Advertising Expenses (840). This account is used

to record the cost of authorized advertising and publication of notices in
newspapers and magazines of general circulation, television, radio and
other forms of media.
Sec. 279. Rent Expenses (841). This account is used to record

rental fees for the use of facilities or equipment; and costs for the use of
offices and grounds, quarters of personnel, arsenal, barracks,
warehouses, office machines, and other equipment.
Sec. 280. Insurance Expenses (842). This account is used to

record premiums for the insurance of government properties such as
buildings, equipment, motor vehicles, etc.
Sec. 281. Fidelity Bond Premiums (843). This account is

used to record expenses for premium on fidelity bond of accountable
officers.
Sec. 282. Survey Expenses (844). This account is used to

record expenses incurred in the conduct of survey of government land.
Sec. 283. Storage Expenses (845). This account is used to

record expenses incurred for the storage/safekeeping of government
goods and properties.
116
Sec. 284. Zoological/Animal Maintenance Expenses (846).
This account is used to record expenses for foods/medicines/veterinary
expenses and other maintenance needs of animals in government zoos,
wildlife, sanctuary, etc.
Sec. 285. Printing and Binding Expenses (847). This

account is used to record the cost of producing, printing, and binding
materials such as: books, reports, catalogues, documents and other
reading materials.
Sec. 286. Accountable Forms Expenses (848). This account

is used to record the cost of accountable forms used in the course of
government operations.
Sec. 287. Office Supplies Expenses (849). This account is

used to record the cost of all office supplies, printed general forms,
janitorial supplies, IT supplies, etc. used in connection with government
operations.
Sec. 288. Medical, Dental and Laboratory Supplies

Expenses (850). This account is used to record the cost of medicines and
other medical, dental and laboratory supplies used in the course of
government operations/projects.
Sec. 289. Food and Non-food Expenses (851). This account

is used to record expenses for food, clothing and other maintenance
needs of patients in hospitals/centers, sanitarium and inmates in
penitentiary/sanitarium including those distributed to people affected by
calamities/disasters/ground conflict. All purchases of perishable items
shall be recorded under this account.
Sec. 290. Gasoline, Oil and Lubricants Expenses (852).

This account is used to record the cost of gasoline, oil and lubricants
consumed by government vehicles and other equipment in connection
with government operations and projects.
Sec. 291. Agricultural Supplies Expenses (853). This

account is used to record the cost of fertilizers, pesticides and
agricultural supplies issued/used in connection with government
117
Sec. 292. Legal Services (854). This account is used to
record the cost of legal services rendered by private lawyers to any
government agency as authorized by law.
Sec. 293. Auditing Services (855). This account is used to

record the amount due the Commission on Audit for auditing services
rendered or expenses incurred by the Auditing Unit of any government
agency such as traveling expenses, conference/seminar fees, etc.
Sec. 294. Consultancy Services (856). This account is used

to record the cost of services of individual/private companies, or other
government agencies hired to undertake a specific work or job requiring
special or technical skills not available in the concerned agency.
Sec. 295. General Services (857). This account is used to

record the expenditures for general services such as carpentry, plumbing,
electrical, etc.
Sec. 296. Security and Janitorial Services (858). This

account is used to record the cost of security/janitorial services
contracted by the agency.
Sec. 297. Taxes, Duties and Licenses (859). This account is

used to record payments and provisions for all taxes, duties and licenses
except income tax.
Sec. 298. Tax Credit Subsidy (860). This account is used to

record the amount due to taxpayers who are entitled/qualified to avail of
the tax credit or duty drawback and tax incentives authorized under the
National Internal Revenue Code, Tariff and Customs Code of the
Philippines, and Omnibus Investment Code.
Sec. 299. Tax Exemption Expenses (861). This account is

used to record in the books of the Bureau of Internal Revenue and
Bureau of Customs the amount of assessments of customs duties and
other taxes that requires no actual payment by exempted national
Sec. 300. Public Infrastructure Repairs and Maintenance

(862). This account is used to record the cost of repairing and
maintaining public infrastructures owned by the government. It also
includes the cost of construction materials issued for the repair of public
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infrastructures.
Sec. 301. Reforestation Project Maintenance (863). This

account is used to record the cost of maintaining reforestation projects
owned by the government.
Sec. 302. Buildings Maintenance (864). This account is used

to record the cost of repairing and maintaining buildings owned by the
government. It also includes the cost of construction materials issued for
the repair of government buildings.
Sec. 303. School Buildings Maintenance (865). This

account is used to record the cost of repairing and maintaining school
buildings owned by the government. It also includes cost of construction
materials issued for the repair of school buildings.
Sec. 304. Markets and Slaughterhouses Maintenance (866).

This account is used to record the cost of repairing and maintaining
markets and slaughterhouses owned by the government. It also includes
cost of construction materials issued for the repair of market and
slaughterhouses.
Sec. 305. Hospitals and Health Centers Maintenance (867).

This account is used to record the cost of repairing and maintaining
hospitals, sanitaria and health centers owned by the government. It also
includes cost of construction materials issued for the repair of hospitals
and health centers.
Sec. 306. Other Structures Maintenance (868). This

account is used to record the cost of repairing and maintaining structures
owned by the government other than those classified under specific
maintenance accounts. It also includes cost of construction materials
issued for the repair of other structures.
Sec. 307. Industrial Machineries Maintenance (869). This

account is used to record the cost of repairing and maintaining industrial
machineries owned by the government. It also includes cost of spare
parts issued from stock for the repair of industrial machineries.
Sec. 308. Other Machineries Maintenance (870). This

account is used to record the cost of repairing and maintaining other
machineries owned by the government. It also includes cost of spare
119
parts issued from stock for the repair of other machineries.
Sec. 309. Firefighting Equipment and Accessories

Maintenance (871). This account is used to record the cost of repairing
and maintaining firefighting equipment and accessories owned by the
government. It also includes cost of spare parts issued from stock for the
repair of firefighting equipment and accessories.
Sec. 310. Construction and Heavy Equipment Maintenance

maintaining construction equipment owned by the government. It also
includes cost of spare parts issued from stock for the repair of
construction equipment.
Sec. 311. Technical and Scientific Equipment Maintenance

maintaining technical and scientific equipment owned by the
repair of technical and scientific equipment.
Sec. 312. IT Equipment Maintenance (875). This account is

used to record the cost of repairing and maintaining IT equipment owned
by the government. It also includes cost of spare parts issued from stock
for the repair of IT equipment.
Sec. 313. Telegraph, Telephone, Cable, TV and Radio

Equipment Maintenance (876). This account is used to record the cost
of repairing and maintaining telegraph, telephone, facsimile machines,
cable, TV and radio equipment owned by the government. It also
includes cost of spare parts issued from stock for the repair of telegraph,
telephone, cable, TV and radio equipment.
Sec. 314. Artesian Wells, Reservoirs, Pumping Stations

and Conduits Maintenance (877). This account is used to record the
cost of repairing and maintaining artesian wells, reservoirs, pumping
stations, etc. owned by the government. It also includes cost of spare
parts issued from stock for the repair of artesian wells, reservoirs,
pumping stations and conduits.
Sec. 315. Motor Vehicles Maintenance (878). This account is

used to record the cost of repairing and maintaining motor vehicles
120
owned by the government. It also includes cost of spare parts issued
from stock for the repair of motor vehicles.
Sec. 316. Watercrafts Maintenance (879). This account is

used to record the cost of repairing and maintaining watercrafts owned
by the government. It also includes cost of spare parts issued from stock
for the repair of watercrafts.
Sec. 317. Trains Maintenance (880). This account is used to

record the cost of repairing and maintaining trains owned by the
repair of trains and railroads.
Sec. 318. Aircrafts/Aircraft Ground Equipment Maintenance

maintaining aircrafts/aircraft ground equipment owned by the
repair of aircrafts/aircraft ground equipment.
Sec. 319. Office Equipment Maintenance (882). This

account is used to record the cost of repairing and maintaining office
equipment owned by the government. It also includes cost of spare parts
issued from stock for the repair of office equipment.
Sec. 320. Other Equipment Maintenance (883). This

account is used to record the cost of repairing and maintaining
equipment owned by the government other than those classified under
specific equipment maintenance accounts. It also includes cost of spare
parts issued from stock for the repair of other equipment.
Sec. 321. Furniture and Fixtures Maintenance (884). This

account is used to record the cost of repairing and maintaining furniture
and fixtures owned by the government. It also includes cost of
construction materials issued from stock for the repair of furniture and
fixtures.
Sec. 322. Ordnance Maintenance (885). This account is

used to record the cost of repairing and maintaining ordnance owned by
the government. It also includes cost of spare parts issued from stock for
the repair of ordnance.
121
Sec. 323. Other Repairs and Maintenance (886). This
account is used to record the cost of repairing and maintaining other
types of property, plant and equipment owned by the government not
classified under specific property, plant and equipment maintenance
accounts. It also includes painting supplies, plumbing and electrical
supplies, spare parts/constructions materials issued from stock for
repair/maintenance of said property, plant and equipment.
Sec. 324. Awards and Indemnities (887). This account is

used to record indemnities for destruction of property, death or injury to
persons, awards by courts or by administrative bodies. Examples are
indemnities for persons injured or killed or property destroyed through
military action, indemnities for property taken by the government
through civil action, awards and compensation provided by laws.
Sec. 325. Rewards and Other Claims (888). This account is

used to record payments of rewards for any informer or for any act done
in connection with the apprehension of an offender. This account also
includes indemnities paid to persons in the government service who
become disabled on account of sickness, injuries, or death which
occurred or which were contracted or sustained in the performance of
official duty.
Sec. 326. Grants and Donations (889). This account is used

to record all non-repayable transfers given to other levels of government,
international institutions or non-government organizations. Grants
encompass reparations and gifts given for particular projects or
programs, general budget support or for any other purposes.
Sec. 327. Representation Expenses (890). This account is

used to record authorized expenses incurred for meetings, conferences
and official entertainment in the government.
Sec. 328. Extraordinary and Miscellaneous Expenses (891).

This account is used to record extraordinary expenses incurred by
government officials and those of equivalent rank as maybe authorized
by the Department of Budget and Management (DBM) for public
relations, membership fees in government associations and in national
professional organizations duly accredited by the Professional
Regulation Commission.
Sec. 329. Confidential and Intelligence Expenses (892).
122
This account is used to record the cost of services which are confidential
in nature, rendered by persons who are temporarily employed by
authorized administrative or executive officers to carry on successfully
administrative activities; compensation of informers employed to detect
the whereabouts of criminals or the existence of prohibited games which
compensation shall not exceed ten per centum of the fines imposed upon
the convicts; and other expressly authorized confidential expenses for
which appropriations have been approved specifically for the purpose.
Sec. 330. Anti-Insurgency/Contingency Expenses (893).

This account is used to record unforeseen expenses arising from the
occurrence of insurgency/natural calamities or financial dislocation on
account thereof.
Sec. 331. Subsidy to National Government Agencies (894).

This account is used by the Bureau of the Treasury (BTr) for the cash
equivalent of the used Notice of Cash Allocation upon replenishment to
head office of Authorized Government Servicing Banks (AGSBs)
including those paid by the BTr for the account of national government
agencies.
Sec. 332. Subsidy to Local Government Units (895). This

account is used to record financial assistance granted to LGUs for the
purpose of pursuing government programs or projects of public interest.
Sec. 333. Subsidy to Government Corporations (896).

This account is used to record financial assistance granted to GOCCs to
cover operational expenses that are not supported by corporate revenues
or to cover corporate deficit and losses as authorized by law.
Sec. 334. Membership Dues to International Institutions

(899). This account is used to record membership dues, contributions/or
cost of approved participation in international organizations.
Sec. 335. Depreciation – Land Improvements (902). This

account is used to record depreciation of land improvements due to wear
and tear, and deterioration.
Sec. 336. Depreciation – Leasehold Improvements (903).

This account is used to record depreciation of leasehold improvements
due to wear and tear, and deterioration.
123
Sec. 337. Depreciation – Buildings (904). This account is
used to record depreciation of buildings used in government operations
due to wear and tear, and deterioration.
Sec. 338. Depreciation – School Buildings (905). This

account is used to record depreciation of school buildings used in
government operations due to wear and tear and deterioration.
Sec. 339. Depreciation – Markets and Slaughterhouses

(906). This account is used to record depreciation of markets and
slaughterhouses used in government operations due to wear and tear and
deterioration.
Sec. 340. Depreciation – Hospitals and Health Centers

(907). This account is used to record depreciation of hospitals and
health centers used in government operations due to wear and tear and
deterioration.
Sec. 341. Depreciation – Other Structures (908). This

account is used to record depreciation of other structures used in
government operations due to wear and tear and deterioration.
Sec. 342. Depreciation – Industrial Machineries (909). This

account is used to record depreciation of industrial machineries used in
government operations due to wear and tear, obsolescence and/or
technological innovation.
Sec. 343. Depreciation – Other Machineries (910). This

account is used to record depreciation of other machineries used in
Sec. 344. Depreciation – Firefighting Equipment and

Accessories (911). This account is used to record depreciation of
firefighting equipment and accessories used in government operations
due to wear and tear, obsolescence and/or technological innovation.
Sec. 345. Depreciation – Construction and Heavy

Equipment (912). This account is used to record depreciation of
construction and heavy equipment used in government operations due to
124
wear and tear, obsolescence and/or technological innovation.
Sec. 346. Depreciation – Technical and Scientific

technical and scientific equipment used in government operations due to
Sec. 347. Depreciation – IT Equipment (915). This account

is used to record depreciation of IT equipment used in government
operations due to wear and tear, obsolescence and/or technological
innovation.
Sec. 348. Depreciation – Telegraph, Telephone, Cable, TV

and Radio Equipment (916). This account is used to record
depreciation of telegraph, telephone, facsimile machines, cable, TV and
radio equipment used in government operations due to wear and tear,
obsolescence and/or technological innovation.
Sec. 349. Depreciation – Artesian Wells, Reservoirs,

Pumping Stations and Conduits (917). This account is used to record
depreciation of artesian wells, reservoirs and pumping stations used in
Sec. 350. Depreciation – Motor Vehicles (918). This

account is used to record depreciation of motor vehicles used in
government operations due to wear and tear.
Sec. 351. Depreciation – Watercrafts (919). This account is

used to record depreciation of watercrafts used in government operations
due to wear and tear and/or technological innovation.
Sec. 352. Depreciation – Trains (920). This account is used

to record depreciation of trains used in government operations due to
Sec. 353. Depreciation – Aircrafts/Aircraft Ground

aircrafts/aircraft ground equipment used in government operations due to
wear and tear, obsolescence and technological innovation.
Sec. 354. Depreciation – Office Equipment (922). This
125
account is used to record depreciation of office equipment used in
government operations due to wear and tear, obsolescence and
Sec. 355. Depreciation – Other Equipment (923). This

account is used to record depreciation of other equipment not included
under the specific classification of equipment used in government
operations due to wear and tear, obsolescence and technological
innovation.
Sec. 356. Depreciation – Furniture and Fixtures (924).

This account is used to record depreciation of furniture and fixtures used
in government operations due to wear and tear, deterioration and
Sec. 357. Depreciation – Ordnance (925). This account is

used to record depreciation of ordnance used in government operations
due to wear and tear, obsolescence and technological innovation.
Sec. 358. Depreciation – Books (926). This account is used

to record depreciation of books used in government operations due to
wear and tear, and obsolescence.
Sec. 359. Depreciation – Other Property, Plant and

Equipment (927). This account is used to record depreciation of other
property, plant and equipment used in government operations due to
wear and tear, deterioration, obsolescence and technological innovation.
Sec. 360. Obsolescence – IT Software (928). This account

is used to record the reduction in the book value of IT Software used in
the operation due to change in legislation/policies/regulations,
obsolescence and technological innovation.
Sec. 361. Bad Debts Expense (929). This account is used to

record the amount of receivables determined to be uncollectible.
Sec. 362. Loss on Sale of Assets (947). This account is used

to record the amount of loss resulting from the sale of assets where the
126
proceeds is lower than the net book value (book value less accumulated
depreciation).
Sec. 363. Loss of Assets (948). This account is used to record

the costs of losses of government funds and property due to theft,
fortuitous events/calamities/civil unrest and war based on approved
request for relief from accountabilities.
Sec. 364. Other Expenses (950). This account is used to

record all other expenses not otherwise classified under any of the
specific expense accounts. This includes workbooks distributed to
public schools, income tax forms, election forms, cultural/athletic
expenses, pre-employment medical check-up, trainers allowances, etc.
Financial Expenses
Sec. 365. Bank Charges (951). This account is used to

record the amount levied by a bank for various services, such as charges
for inter-branch transactions, cost of check booklets, cost of stoppage of
payment, etc. Bank charges due to the negligence of accountable
officer/accounting personnel shall be their personal liability.
Sec. 366. Interest Expenses (952). This account is used to

record charges imposed as a consequence of the use of money belonging
to others, such as interest on bonds, loans, treasury bills, treasury notes,
certificate of indebtedness, and other interest bearing financial
obligations.
Sec. 367. Commitment Charges (953). This account is used

to record a levy or charge imposed by creditors on the undrawn amount
of the loan with foreign or domestic lending institutions.
Sec. 368. Documentary Stamps Expenses (954). This

account is used to record documentary stamps expense for treasury bills
issued by the National Government and other transactions of national
Sec. 369. Other Financial Charges (955). This account is

used to record other charges imposed by creditors such as: front-end
fees, management fees, and other charges not classified under the
specific accounts on financial expenses.
127
Sec. 370. Foreign Exchange (FOREX) Loss (956). This
account is used to record losses incurred in the conversion of foreign
currencies to the Philippine peso, involving any of the following
transactions:
a. Conversion of foreign currency deposits - It is the resulting

difference when the prevailing exchange rate is lower than
the exchange at the time of transactions or last adjustment.
b. Remittances or repayments of foreign loans by the National

Government - It is the resulting difference when the
prevailing exchange rate is higher than the rate of exchange at
the time of receipt of loan proceeds or last adjustment.
Sec. 371. Debt Service Subsidy to GOCCs (957). This

account is used to record subsidies granted to GOCCs for the servicing
of their foreign loans relent by the Republic of the Philippines as
authorized by law or corporate body.
Sec. 372. Loss on Guaranty (958). This account is used to

record losses incurred by the National Government for guaranteed loans
of GOCCs as authorized by law or corporate body.
128

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The Manual On The New Government Accounting System For National Government Agencies

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THE MANUAL ON THE

NEW GOVERNMENT ACCOUNTING SYSTEM

THE CHART OF ACCOUNTS

Sec. 1. Definition. The Chart of Accounts provides the

Sec. 2. Rationale. The Chart of Accounts is prescribed for use

Sec. 3. Elements of Financial Statements. Elements of

a. Assets – economic resources of an agency that are

c. Equity – residual interest of the government in an agency

d. Revenue/Income – increase in economic benefits during the

e. Expenses – decrease in economic benefits during an

Sec. 4. Balance Sheet Accounts. The balance sheet accounts

Sec. 6. Classification of Revenue/Income. The revenue/

a. General Income Accounts - This account

b. Specific Income Accounts - This account

Income realized/collected for which the agency is authorized to

The illustrative accounting entries relative to the use of the

Sec. 7. Classification of Expenses. The expense accounts

a. Personal Services (PS) - These accounts include

b. Maintenance and Other Operating Expenses

c. Financial Expenses (FE) - These accounts

Sec. 8. Intermediate Accounts. These are accounts which

Accounts Account Codes

Sec. 10. The Chart of Accounts. The Chart of Accounts

126 Interests Receivable

150 Medical, Dental and Laboratory Supplies Inventory

Other Current Assets

Long - Term Investments

Property, Plant and Equipment

315 Accumulated Depreciation – I T Equipment

232 Construction in Progress – Roads, Highways and Bridges

LIABILITIES AND EQUITY

410 Withholding Taxes Payable

Long -Term Liabilities

501 Government Equity

623 Dividend Income

Taxes on Goods and Services

Taxes on International Trade and Transactions

755 Immigration Taxes

787 Landing and Parking Fees

821 Pension and Retirement Benefits

Maintenance and Other Operating Expenses

855 Auditing Services

886 Other Repairs and Maintenance

Depreciation – Artesian Wells, Reservoirs, Pumping

Sec. 11. Description of Accounts. Each account in the Chart

Sec. 12. Cash in Treasury (101). This account is used to

Debit this account for:

Credit this account for:

Deposits of collection to Bangko Sentral ng Pilipinas or

Sec. 13. Cash – National Treasury, Modified Disbursement

Debit this account for:

Receipt of NCA from DBM

MDS checks issued

Sec. 14. Cash – Bangko Sentral ng Pilipinas (103). This

Debit this account for:

Deposits with BSP

Credit this account for:

Sec. 15. Petty Cash Fund (105). This account is used to