6. Advances to Contractors (P105,000) AR Account Code Advances to Contractors 19902010 Cash MDS, Regular 10104040...

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6. Advances to Contractors (P105,000) AR Account Code Advances to Contractors 19902010 Cash MDS, Regular 10104040 P105,000 15% mobilization fees to contractors to be recouped from progress billings. harchasing 7. Payment of Accounts Payable Gross Less: Withholding tax Net s Account Code Accounts Payable 20101010 Due to BIR 20201010 Cash MDS, Regular 10104040 Payment of payables based on duly approved DV. - Debit P105.000 Credit P100,000 6,000 94.000 Debit P100.000 Credit P 6,000 94.000 Cash in Bank-Local Currency. Current Account 20201020 20201030 20201040 29999990 Due to GSIS Due to Pag-IBIG Due to PhilHealth Other Payables Due to Employees Officers and 20101020 Expenses for salaries and wages to be paid through ATM. Due to Officers and Employees Cash in Bank-Local Currency, 10102020 10104040 Cash - MDS, Regular Deposit for salaries and wages to be paid through ATM. 20101020 Current Account 10102020 Payment of salaries and wages through ATM. DILDO 46,400 Office Supplies Inventory Cash-MDS, Regular Payment for the delivery of supplies and materials. 5. Payment of rent (P6,000) 10404010 10104040 P 46,400 Account Code Debit P 5,000 Account Code 19902020 10104040 4. Payment for delivery of supplies and materials for consumption. (P5,000) Prepaid Rent Cash-MDS, Regular Payment of one year rent of photocopying machine. Debit P6,000 9,200 1.400 3,800 200 46,400 46,400 P46,400 Credit Đ 5,000 Credit P6,000 (P700,000). Buildings Accounts Payable Payables to contractors and suppliers. 2. Granting of Payroll Fund Assumptions: Accounts Payable Cash-MDS, Regular Payment of payables through ADA. Salaries and Wages PERA Account Code 10604010 20101010 Account Code 20101010 10104040 Total Less: Salary Deductions Withholding Tax Life and Retirement Premiums Salaries and Wages PERA Due to BIR Pag-IBIG premiums PhilHealth premiums GSIS Salary loan Employees' Association Net Amount Advances for Payroll Cash MDS, Regular Granting of cash advance for payroll. 3. Payment of salaries through ATM Assume the same data in #2. Account Code 19901020 10104040 Debit P 700,000 Account Code 50101010 50102010 20201010 Debit P700,000 Credit P700,000 9.000 8,500 1,400 3,800 Debit P46,400 Credit 700 200 P700,000 Debit B SU,000 20.000 Đ50,000 20,000 70.000 23,600 P 46,400 Credit P46.400 Credit P9,000 3. Payment of Accounts Payable to utility companies, such as: supplier of petroleum, oil and lubricants, water, illumination and power services telephone, internet and other communication services; and 4. Other payables which cannot be conveniently or practicably paid using the ADA. All LDDAP-ADA prepared/issued during the day shall be recorded chronologically in the CKADADRec maintained by the Cash/Treasury Unit, which also shall monitor the receipt of the validated LDDAP-ADA from the MDS-GSB and the issue of Official Receipt (OR) or other acceptable evidence of receipt of payments by the creditors/payees. Upon receipt from the Cash/Treasury Unit of the duly supported Report of Authority to Debit Account Issued (RADAI), the accounting unit shall prepare a Journal Entry Voucher (JEV), to be recorded in ADA Disbursements Journal (ADADJ), and credit the Cash MDS, Regular account. The MDS Government Servicing Bank (MDS- GSB) shall effect payment through the Modified Disbursements Payment System (MDPS) not earlier than 24 hours but not later than 48 hours after receipt of the said document. Sometimes, due to inconsistency of information (i.e., bank branch, account name/number) between the bank records and LDDAP-ADA or errors stated in DBM Circular Letter 2013-16 dated December 23. 2014 (i.e.. typographical errors), LDDAP-ADA may be invalidated. Along this line, a new LDDAP-ADA may be issued for the replacement of the invalidated upon submission of the validated LDDAP-ADA indicating non-payment to creditors/payees due to inconsistency of information. Accordingly. a JEV shall be prepared for the cancellation of the invalidated LDDAP-ADA and the replacement shall be reported in RADAI. For creditors without existing accounts with the agency's MDS-GSB (i.e., other GSBS or private banks), the payments of their claims shall be through bank transfer. Payment through the issuance of a Manager's Checks by the MDS-GSB of an agency shall be discontinued to minimize cases of late payments. ILLUSTRATIONS: Assume the following transactions of Agency X during the 2nd current year: 1. Set up of payables and payment to suppliers and contractors quarter of the Disbursements through List of Due and Demandable Accounts Payable- ADVICE to DEBIT ACCOUNT (LDDAP-ADA) The use of LDDAP-ADA as a mode of settlement of accounts payable due the creditors/payees of all NGAS and their OUs was prescribed under DBM Circular Letter No. 2013-16 dated December 23, 2013 which implemented the Expanded Modified Direct Payment Scheme (ExMDPS), amended by DBM Circular Letter Nos. 2013-16A and 2013-16B dated February 6, 2014 and February 25, 2014, respectively. The following are excluded from the implementation of ExMDPS: 1. Payment of Terminal Leave and Retirement Gratuity (TL/RG) benefits which is governed by Republic Act No. 10154 as implemented by CSC Resolution No.1300237 and Budget Circular No. 2013-1; 2. Remittance of social insurance premium contributions to government corporations, such as GSIS, PHILHEALTH, and HDMF; 6. Advances to Contractors (P105,000) AR Account Code Advances to Contractors 19902010 Cash MDS, Regular 10104040 P105,000 15% mobilization fees to contractors to be recouped from progress billings. harchasing 7. Payment of Accounts Payable Gross Less: Withholding tax Net s Account Code Accounts Payable 20101010 Due to BIR 20201010 Cash MDS, Regular 10104040 Payment of payables based on duly approved DV. - Debit P105.000 Credit P100,000 6,000 94.000 Debit P100.000 Credit P 6,000 94.000 Cash in Bank-Local Currency. Current Account 20201020 20201030 20201040 29999990 Due to GSIS Due to Pag-IBIG Due to PhilHealth Other Payables Due to Employees Officers and 20101020 Expenses for salaries and wages to be paid through ATM. Due to Officers and Employees Cash in Bank-Local Currency, 10102020 10104040 Cash - MDS, Regular Deposit for salaries and wages to be paid through ATM. 20101020 Current Account 10102020 Payment of salaries and wages through ATM. DILDO 46,400 Office Supplies Inventory Cash-MDS, Regular Payment for the delivery of supplies and materials. 5. Payment of rent (P6,000) 10404010 10104040 P 46,400 Account Code Debit P 5,000 Account Code 19902020 10104040 4. Payment for delivery of supplies and materials for consumption. (P5,000) Prepaid Rent Cash-MDS, Regular Payment of one year rent of photocopying machine. Debit P6,000 9,200 1.400 3,800 200 46,400 46,400 P46,400 Credit Đ 5,000 Credit P6,000 (P700,000). Buildings Accounts Payable Payables to contractors and suppliers. 2. Granting of Payroll Fund Assumptions: Accounts Payable Cash-MDS, Regular Payment of payables through ADA. Salaries and Wages PERA Account Code 10604010 20101010 Account Code 20101010 10104040 Total Less: Salary Deductions Withholding Tax Life and Retirement Premiums Salaries and Wages PERA Due to BIR Pag-IBIG premiums PhilHealth premiums GSIS Salary loan Employees' Association Net Amount Advances for Payroll Cash MDS, Regular Granting of cash advance for payroll. 3. Payment of salaries through ATM Assume the same data in #2. Account Code 19901020 10104040 Debit P 700,000 Account Code 50101010 50102010 20201010 Debit P700,000 Credit P700,000 9.000 8,500 1,400 3,800 Debit P46,400 Credit 700 200 P700,000 Debit B SU,000 20.000 Đ50,000 20,000 70.000 23,600 P 46,400 Credit P46.400 Credit P9,000 3. Payment of Accounts Payable to utility companies, such as: supplier of petroleum, oil and lubricants, water, illumination and power services telephone, internet and other communication services; and 4. Other payables which cannot be conveniently or practicably paid using the ADA. All LDDAP-ADA prepared/issued during the day shall be recorded chronologically in the CKADADRec maintained by the Cash/Treasury Unit, which also shall monitor the receipt of the validated LDDAP-ADA from the MDS-GSB and the issue of Official Receipt (OR) or other acceptable evidence of receipt of payments by the creditors/payees. Upon receipt from the Cash/Treasury Unit of the duly supported Report of Authority to Debit Account Issued (RADAI), the accounting unit shall prepare a Journal Entry Voucher (JEV), to be recorded in ADA Disbursements Journal (ADADJ), and credit the Cash MDS, Regular account. The MDS Government Servicing Bank (MDS- GSB) shall effect payment through the Modified Disbursements Payment System (MDPS) not earlier than 24 hours but not later than 48 hours after receipt of the said document. Sometimes, due to inconsistency of information (i.e., bank branch, account name/number) between the bank records and LDDAP-ADA or errors stated in DBM Circular Letter 2013-16 dated December 23. 2014 (i.e.. typographical errors), LDDAP-ADA may be invalidated. Along this line, a new LDDAP-ADA may be issued for the replacement of the invalidated upon submission of the validated LDDAP-ADA indicating non-payment to creditors/payees due to inconsistency of information. Accordingly. a JEV shall be prepared for the cancellation of the invalidated LDDAP-ADA and the replacement shall be reported in RADAI. For creditors without existing accounts with the agency's MDS-GSB (i.e., other GSBS or private banks), the payments of their claims shall be through bank transfer. Payment through the issuance of a Manager's Checks by the MDS-GSB of an agency shall be discontinued to minimize cases of late payments. ILLUSTRATIONS: Assume the following transactions of Agency X during the 2nd current year: 1. Set up of payables and payment to suppliers and contractors quarter of the Disbursements through List of Due and Demandable Accounts Payable- ADVICE to DEBIT ACCOUNT (LDDAP-ADA) The use of LDDAP-ADA as a mode of settlement of accounts payable due the creditors/payees of all NGAS and their OUs was prescribed under DBM Circular Letter No. 2013-16 dated December 23, 2013 which implemented the Expanded Modified Direct Payment Scheme (ExMDPS), amended by DBM Circular Letter Nos. 2013-16A and 2013-16B dated February 6, 2014 and February 25, 2014, respectively. The following are excluded from the implementation of ExMDPS: 1. Payment of Terminal Leave and Retirement Gratuity (TL/RG) benefits which is governed by Republic Act No. 10154 as implemented by CSC Resolution No.1300237 and Budget Circular No. 2013-1; 2. Remittance of social insurance premium contributions to government corporations, such as GSIS, PHILHEALTH, and HDMF;