IAS 20 outlines how to account for government grants and other assistance. Prepare the journal entries in the year ended 31 December 20X2. In case of indirect taxes on revenue, for example a tax on goods and services, a business is required to collect an amount from its customers on each unit it sells to them and deposit it with the government. Citizen's Charter. These state­ments are made up of government-wide financial statements and fund-based financial state­ments. Reply. As business events occur throughout the accounting period, journal entries are recorded in the general journal to show how the event changed in the accounting equation. Government-wide statements present financial information for both governmental activities and business-type activities. Sample accounting entries are as follows: Regular sales and government sales: Debit: Cash or Account Receivable- P224,000.00; Credit: Sales – P200,000.00; Credit: Output VAT – P24,000.00 Manuals on the New Government Accounting System (NGAS) Manuals on the New Government Accounting System (NGAS) Local Government Units (LGUs) (4) National Government Agencies (NGAs) (4) Display # Home. ADVERTISEMENTS: At the core of a governmental reporting entity’s comprehensive annual financial report are the general purpose financial statements. 2 GOVERNMENT ACCOUNTING MANUAL (GAM) ... •Prepared by a committee supervised by COA’s Philippine Public Sector Accounting Standards Board ... •Accounting Journal Entries Objectives of the GAM . Definition: A payroll journal entry is a method of accrual accounting, in which a business records its debit and credit payroll transactions pertaining to employee compensation. Vision and Mission. The most important standard dealing with government grants is IAS 20 Accounting for government grants and disclosure of government assistance. Strategic Plan. Charlene. The Principal Duties. (1) Final withholding VAT on sales to government in the Philippines, and; (2) Accounting & filling-out VAT return forms in the Philippines. A payroll journal entry includes employee wages, direct labor expenses, FICA expenses, payroll taxes, and holiday, vacation and sick days in the Debit section. Core Values. Constitutional Mandate. Logo. About Us. Prepare the journal entries of the following: a) Collection of collecting officer Account Title Account Code Debit Credit Cash - Collecting Officers 10101010 P355,500 Import Duties 40103010 P350,000 Fines and Penalties Taxes on Goods and Services 40105030 P5,500 To recognize unbilled income collections. ... Wency from Philippines. Accounting for indirect taxes. In the monthly or quarterly VAT returns, sales of goods is classified into regular sales, zero-rated sales, exempt sales, and sales to government. However there are special rules that accountants and businessmen must be aware of in dealing with the government sales. Sales to Government of goods, properties, or services are subject to 12% value-added tax. GOVERNMENT ACCOUNTING MANUAL for NATIONAL GOVERNMENT AGENCIES . For example, when the company spends cash to purchase a new vehicle, the cash account is decreased or credited and the vehicle account is increased or debited. Learning Objectives (continued) Explain basic budgetary process & terminology used by the federal government Prepare basic budgetary accounting entries and basic proprietary entries for a federal agency Understand the financial statement requirements for federal agencies Understand the financial statements presented for the U.S. Government as a whole