Professional Documents
Culture Documents
Chapter 5 - Government - Disbursements
Chapter 5 - Government - Disbursements
Chapter 5 - Government - Disbursements
Illustration:
Entity A disburse P10,000 for electricity expense. The entries
are as follows:
Disbursements through Non-Cash Availment Authority Correcting entries for overpayment are similar to the
(NCAA) accounting for disallowances.
Non-Cash Availment Authority (NCAA) is the authority issued
by the DBM to agencies to cover the liquidation of their
actual obligations incurred against available allotments for
availment of proceeds from loans/grants through supplier’s
credit/constructive cash.
- Disbursement through NCAA (also called ‘Direct Payment
Method1’ or ‘Direct Payment Scheme of Loan Availment’) are
made through the Journal Entry Voucher (JEV) issued by the
BTr to the agency to record payment of goods and services
made directly by the lending institution to the supplier or
contractor. The JEV is recorded in the General Journal.
Illustration:
Entity A acquires communication equipment for P1M, on
account, and subsequently settles the account through direct
payment scheme.
Illustration:
Entity A acquired office supplies for P100,000. it was found
out that the correct amount should have been P90,000.
Amount paid (entry made) 100,000
Should be
90,000
Overstatement 10,000