SOP Library
SOP NO:
FS-GP04
(List of Exhibits/Attachments)
Missi
on
:
Finance and Administration
Area:
Financial Services (FS)
Activity:
General Accounting Plan (FS-GP)
Title:
NFA Books of Accounts - Their Descriptions and Uses
Date Approved/Issued:
06/07/1984
Date Effective:
08/01/1984
Digest:
I. TERMS OF REFERENCE
A. Rationale
B. Objective
C. Scope
D. Basis
II. IMPLEMENTING GUIDELINES
A.
Accounting Books
The following books of accounts shall be maintained by the NFA Central Officea and all Regional and Provincial Offices:
1.
Books of Original Entry
a. Voucher Register Journal
b. Cash/Check Register Journal
c. Journal of Collections and Deposits
d. Kadiwa Sales Journal
e. Advice Register Journal
f. General Journal
- Non-consolidated
- Consolidated (for C.O. and R.O. use only)
g. Bank Analysis Journal (for C.O. only)
2.
Books of Final Entry
a. General Ledger
- Non-consolidated
- Consolidated (for R.O. and C.O. use only)
b. Subsidiary Ledger
- Non-consolidated
- Consolidated (for R.O. and C.O. use only)
c. Sub-subsidiary Ledger
d. Consolidated Regional Trial Balance Journal
B.
Description and Uses
1.
Voucher Register Journal
(Exhibit A)
This is a special journal which shall be used to record cash outflow transactions except cash advances of Regular/Special Disbursing Officer. Entries in this journal shall be based on disbursement vouchers and recorded in chronological order.
The columns for the VRJ shall be the following:
a. Date - date of entry
b. Payee-Creditor - addressee in the voucher
c. Particulars - explanation of the nature of the transaction
d. Fund Account Code - code for the fund from which the expense shall be charged
e. Voucher Number - chronological listing of voucher number
f. Voucher Payable Classification
g. Voucher Payable (CR) - columns for the amount of the voucher per classification of vouchers payable account.
h. Account Code - code for each expense and various accounts under the special columns.
i. Expense Columns (DR) - Special columns for the frequently incurred expenses such as inventory, operating and administrative. These columns may be altered at the discretion of the accountant.
j. Payables (CR) - columns credited for the amount deducted or withheld from the creditor.
k. Sundry Account Code - code column for accounts that can not be taken up in the special column.
l. Sundry DR/CR - column debited or credited for the amount of accounts in the account code column.
The columns in the books may be altered depending upon the bookkeeping requirements. Entries shall be summarized according to cost classification, activity and expense distribution, weekly for the Central Office and semi-monthly for the field offices.
2.
Cash/Check Register Journal
(Exhibit B)
This books of original entry is used to record all cash outflow and check disbursements. Basis for entry shall be the disbursement vouchers and check voucher summarized separately in the list of Daily Paid Vouchers. The LDPV for each type of disbursement shall be in series and recorded in chronological order.
The columns for the
Cash/Check Register Journal
shall be the following:
a. Date - date of entry
b. Particulars - explanation or description of the entry made and this includes abstract number and names of creditors.
c. Fund Account Code - code for the fund from which the disbursement shall be charged.
d. Voucher Number - Chronological listing of voucher numbers.
e. Voucher Payable (DR) - column for the amount of voucher to be paid per classification of vouchers payable account.
f. Regular Disbursing Officer - column for the name of the disbursing officer. Sub-column shall be provided for cash fund account.
g. Cash Other Banks, Current - column to take up check disbursed. Sub-columns shall be provided for each bank account and check series.
h. Sundry Account Code - column for the account code of accounts that cannot be entered in the special columns.
i. Sundry DR/CR - debited or credited for amount of accounts in (h).
The Central Office may use a separate Cash and Check Register Journal. At the end of the month, entries shall be summarized, according to General Ledger account classification.
3.
Journal of Collections and Deposits
(Exhibit C)
The JCD shall be used to record collections and deposits. Transactions based on the Report of Collections and Deposits prepared by the RCD and SCO - Grains, to wit:
a. Sales of grains
b. Registration and Licensing Collections
c. Remittance of Tellers
d. Collections from receivables and refunds
e. Miscellaneous Receipts
Columns for the JCD shall be as follows:
a. Date
b. Particulars
c. Report Number
d. Period Covered
e. OR #
f. Cash - other banks, current/savings - columns debited for deposits made per bank account
g. Cash - Collecting Officer Regular - debited for all collections based on individual OR's and credited for all amounts deposited with the bank based on individual deposit slips.
h. Cash - Collecting Officer Special, Grains - credited for the amount remitted/deposited to Regular Collecting Officer - grains/banks.
i. Cash- Collecting Officer Special, Non-Grains - credited for amount remitted/deposited to Regular Collecting Officer - Non-Grains/banks.
j. Sales
j.1 Quantity - quantity of sales in terms of kilos
j.2 Amount - credited for the amount of sales or income
k. Sundry Account Code - code for accounts in the sundry.
l. Sundry - DR/CR - debited or credited for accounts in the sundry
Collections other than sales. and RL shall be recorded on a per OR basis. A summary shall be prepared at the end of the month showing the monthly totals for each GL account under the debit and credit columns of the journal.
4.
Kadiwa Sales Journal
(Exhibit D)
A special journal shall be provided to record Kadiwa sales in order to facilitate monitoring and evaluation of Kadiwa transactions. Entries in the journal shall be based on the Teller's Daily Report of the Teller/SCO-Non-Grains.
The columns for recording entries based on the TDR shall be the following:
a. Date - date of transaction
b. TDR Number - chronological listing of TDR's submitted
c. Name of Teller - contains the name of Collecting Officer
d. Reference CI - contains the inclusive charge/cash invoice numbers for credit/cash sales transactions, respectively.
e. Cash Collecting Officer, Special Non-Grains debited for the amount of sales collections and credited for the amount deposited with the bank. (Remittance to the Provincial Cashier shall be recorded in the JOCD based on ORs)
f. Cash with other banks, current/savings - debited for the amount deposited to the banks maintained.
g. Accounts Receivable - debited for the amount of charge sales.
h. Sales/Income - column sub-divided according to GL commodity grouping and credited for the amount of sales.
i. Sundry Account Code - symbol for other accounts that can not be entered in t he special columns.
The TDR shall be recorded on a continuous daily basis for one (1) month and summarized at the end of each month. Columns may be altered depending on the bookkeeping requirements.
NOTE: The above journal shall supersede the provision in the Revised General Accounting Plan of recording charge sales in the Journal of Collections and Deposits.
5.
Advice Register Journal
(Exhibit E)
This book shall be used to take up transactions affecting Central Office Control Account/Branch Office Control Account and Regional Office Account/Provincial Office Account. Such interbranch transactions include the transfer of commodities/stock, supplies and materials, properties and equipment, and cash.
The source of entries in the ARJ shall be the Debit and Credit Advice and other available source documents such as Bank Credit Memo, Bill of Lading, WSR, Radiogram and Memorandum Receipts sent to and received from other officers.
Recording of cash, inventory and fixed assets shall be done in separate books
, columns to be used shall be similar for all the above account as follows:
a. Date - date of entry
b. Region - province and the region preparing the Advice
c. Advice Number
Debit - column for the no. of the debit advice
Credit - column for the no. of the credit advice
d. Responding Advice Number
Debit - column for debit responding advice
Credit -column for credit responding advice
e. COCA/BOCA Account -debited or credited for the amount of the advice
f. Particulars - explanation of the nature of the advice
g. Sundry Account Code - code for transaction in the sundry column
h. Sundry-DR/CR - debited or credited for accounts that cannot be entered in e.
6.
General Journal
(Exhibit F)
6.1 Non-Consolidated GJ
This book shall be used to record all other transactions which could not be properly entered in the special journals.
The columns of the General Journal shall be the following:
a. Date - date of entry
b. JV No. - Journal Voucher control number
c. Particulars - for the debit and credit account titles and explanation of the entry
d. Account Code - code for the entry
e. Debit - amount debited for the account
f. Credit - amount credited for the account
Special columns may be provided for the more frequent used accounts. The source of entries in the General Journal shall be the Journal Vouchers previously approved fro entry by the Accountant. At the end of the month entries are summarized and posted to the GL.
6.2 Consolidated General Journal
Entries/adjustments affecting both the Central Office and Regional Offices in the consolidation process shall be recorded in this book.
The columns for this journal shall be the same as the non-consolidated GJ. However, certain changes in the columns may be adopted as determined by the Accountant. Basis of entry shall be the approved journal voucher to be summarized at the end of each month.
7.
Bank Analysis Journal
(Exhibit G)
This is a book of original entry which shall be used to record all bank transactions involving cash inflow/outflow and transfer from one bank to another or from one fund account to another. Entries in the journal shall be based on bank tickets, debit/credit memos sent by the bank, and communication from fund Management Division and bank statements.
Recording shall be done daily per bank account based on the date of bank tickets.
Typical transactions to be recorded in this Journal are:
a. Payment of importation charges such as negotiation, commission and opening charges for letters of credit;
b. Payment of interest on loans, demurrage charged, insurance claims and other expenses incurred in the importation of cereals and equipments;
c. Payment of personal allowances of officials on travel abroad;
d. Payment of salaries and allowances of employees;
e, Payment of maturing obligations on loan availed for local procurement;
f. Transfer of fund from one account to another;
g. Income from savings account;
h. Proceeds from exportation;
i. Proceeds of loan availed for local procurement;
j. Investments; and
k. Other transactions that passes through the bank.
The whole journal shall be divided into the different funds. The column for each fund in the BAJ shall be the following:
a. Date - date of bank tickets
b. Particulars
c. Account Code - code number of various bank accounts, fund and other accounts that are current used. The columns may however be altered at the discretion of the Accountant.
d. Sundry - column for entries that cannot be entered in the special columns.
8.
General Ledger
8.1
Non-Consolidated GL
(Exhibit H)
The summary of all entries in the special journals and the general journal shall be posted to the individual controlling accounts in t he General Ledger at the end of each month. One set of General Ledger shall be maintained for both grains and non-grains transactions. Debit and credit totals of the GL shall be the basis in the preparation of the Trial Balance.
The General Ledger accounts could be found in the revised NFA Chart of Accounts Memorandum No. 274 dated December 21, 1983.
8.2 Consolidated GL
8.2.1
Regional Consolidated GL
(Exhibit I)
The summary of the consolidated P.O. transactions and adjustments are posted in the Regional Consolidated GL.
8.2.2
Central Office Consolidated GL
(Exhibit J)
This C.O. consolidated GL is the counterpart of the regional consolidated GL. It is used to take up the consolidated branch office transactions and C.O. transactions. Postings to the consolidated GL shall be totalled for each month and carrying balances provided.
The accounts kept in the general ledger shall be footed at the end of every month and the totals of the "Debit" and "Credit" columns, as well as the balance in either "Debit Balance" or "Credit Balance" columns shall be written in pencil. The equality of the debit and credit columns shall be proven monthly. At the end of the year, however, the accounts shall be ruled and closed. All totals shall be written in ink and balances of the accounts shall be carried forward as the opening balances for the ensuing year. Controlling accounts in the general ledger shall be supported by details in the subsidiary ledger and sub-subsidiary ledgers.
The accounts in the ledger shall be maintained in the same sequence as they appear in the Chart of Accounts.
9.
Subsidiary Ledger
9.1
Non-consolidated SL
(Exhibit K)
Subsidiary Ledger shall be set up when necessary for some accounts. Posting to the SL is made on a per transaction based on e.g. Weekly Report of Collections and Deposits, per Credit Memo per bank collection account and per Report of Disbursements and per Debit Memo per bank drawing account.
The SL shall serve as control record for general ledger account balances.
9.2
Consolidated SL
9.2.1
Regional Consolidated SL
(Exhibit L)
Trial balance schedules submitted by the provincial offices shall be combined and shall therefore serve as the Regional Consolidated SLs. Totals of the consolidated SL accounts shall tally with the sum of all the P.O.s account balances.
10.
Sub-Subsidiary Ledger
(Exhibit M)
The details of the subsidiary ledger accounts are further recorded in the sub-subsidiary ledgers, the total of which must tally with the SL totals. Posting of these sub SLs are made on a per creditor/debtor, per transaction basis having the documents, invoices, ORs, etc. as basis for recording. It shall show a detailed description such as variety, capacity, creditors, etc.
11.
Consolidated Regional Trial Balance Journal
(Exhibit N )
Regional T/Bs shall be consolidated in the so called Consolidated Journal maintained at the Central Office. T/B accounts of all regions and the Central Office balances re totalled each month in the carrying balance reflected each month
III. RESPONSIBILITIES
IV. FLOW CHART
Top Page
EXHIBITS
Voucher Register Journal
Exhibit B - Cash/Check Register Journal
Exhibit C - Journal of Collections and Deposits
Exhibit D - Kadiwa Sales Journal
Exhibit E - Advice Register Journal
Exhibit F - General Journal
Exhibit G - Bank Analysis Journal
Exhibit H - General Ledger-Non-Consolidated
Exhibit I - General Ledger - Consolidated GL - Regional Consolidated GL
Exhibit J - General Ledger - Consolidated GL - C.O. Consolidated GL
Exhibit K-Subsidiary Ledger-Non-Consolidated Ledger
Exhibit M - Sub-Subsidiary Ledger
Exhibit L-Regional Consol SL
Exhibit N - Consolidated Regional Trial Balance Journal