Payables were recognized and recorded in the books of accounts only upon
acceptance of goods and rendition of services to the City.
Loans contracted by the City were recognized upon receipt of the proceeds from
creditors.
3.11 Equity
Equity represents the difference between the assets and liabilities. The amount
available for operations is computed by deducting the following from the
ending balance of Government Equity:
a. equity set aside to finance capital projects with appropriations provided in
the previous years (continuing appropriations);
b. obligated allotments of which no liability had been recognized;
c. portion pertaining to property, plant and equipment including public
infrastructures in process;
d. amount reserved for Local Disaster Risk Reduction & Management Fund,
and
e. equity set aside to settle existing obligations.
3.12 Correction of Fundamental Errors
Fundamental errors of prior years and adjustments related to prior years’
transactions are corrected and accounted for by using the Prior Years'
Adjustment account. Payment of expenses incurred in prior years is also
accounted as debit to Prior Years’ Adjustment. Errors affecting current year's
operations were charged to the current year's accounts.
Note 4 – Cash and Cash Equivalents
Cash and Cash Equivalents account with a balance of ₱1,177,713,719.63 as of December 31,
2024 represents 88% of the total current assets. It is composed of the following accounts:
2024 2023
Cash on Hand
Cash-Local Treasury ₱ 179.80 ₱ 518,480.87
Cash in Bank–Local Currency
Cash in Bank-Local Currency, Current 1,177,713,539.83 1,302,533,672.07
Account
Total Cash and Cash Equivalents ₱ 1,177,713,719.63 ₱ 1,303,052,152.94
Cash in Bank represents various funds – General Fund, 20% Economic Development Fund,
Special Education Fund, Trust Fund Regular and various Special Trust Funds, Market and
Slaughterhouse and Waterworks. The funds are deposited in both the Land Bank of the
Philippines (LBP) and the Development Bank of the Philippines (DBP).
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