GOVERNMENT

ACCOUNTING
Revenue and Other Receipts
SCOPE
Funds, Sources, Recognition & Measurement
FUND
GENERAL FUND SPECIAL, FIDUCIARY
All revenue and other AND TRUST FUND
receipt must accrue to If there are special law
the government that permits its use.
depositories.

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SOURCES
EXCHANGE NON-EXCHANGE
TRANSACTIONS TRANSACTIONS
1. Sale of goods 1. Gifts/donations
2. Rendition of services 2. Fees and penalties
3. Passive Income 3. Grants
a. Interest 4. Tax revenues
b. Royalties
c. Dividends

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Recognition
Exchange Transactions
Measurement
Possible Journal Entries

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Sale of goods
1. Recognized at fair value (arm’s length
transaction)
2. In case of dissimilar goods,
- Barter - not a revenue transaction
- Sale/Exchange - Fair value less cash
trades

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 Sale of goods

Cash in Bank-Local Currency, Current Account 1,000

Sales Revenue 1,000
To record sale of goods

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 Rendition of services
1. Recognized at fair value (arm’s length transaction)

Cash in Bank-Local Currency, Current Account 1,000

Service Income 1,000
To record service rendered

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 Passive Income
1. Interest - time proportion basis
2. Royalty - value earned
3. Dividends - declaration

Cash in Bank-Local Currency, Current Account 1,000

Interest Income 100
Royalties per R.A. 7160 500
Dividend Income 400
To record interest, royalties and dividends received 9
Recognition
Non-Exchange Transactions
Measurement
Possible Journal Entries

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 Grants, Donations and Gifts
1. Recognized at fair value
- Donation in cash or kind
- Revocable and nonrevocable grants
- Bequests
2. In case of attached conditions, defer until
conditions are met

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 Grants, Donation and Gifts

Cash in Bank-Local Currency, Current Account 1,000

Donation in Cash 1,000
To record cash donations from LGU

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 Grants, Donation and Gifts

Motor Vehicle 100,000

Donation in Kinds 100,000
To record donated motor vehicle from DOA

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 Grants, Donation and Gifts

If any case the grants/donation may have conditions

attached to it, it must be deferred.

Land Improvements 100,000

Other Deferred Credits 100,000
To record donated land improvements with condition

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 Fees and Penalties
1. These are payments made because of violations to
public order, IRRs, breaches and/or noncompliances.
2. Measured at valued amount.

Cash in Bank-Local Currency, Current Account 1,000

Fees and Penalties - Service Income 1,000
To record receipt of payment for penalty made by xxx

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 Tax Revenues
1. Measured at gross amount.

Cash in Bank-Local Currency, Current Account 1,000

Income tax - Individuals 900
Property tax 50
Travel tax 50
To record receipt of tax collection

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