7.2 Furthermore, Sections 20 and 84 thereof provides that the Real Property Tax
Receivables/Special Education Tax Receivables shall be established at the
beginning of the year based on the Real Property Tax Account
Register/Taxpayer’s index card. At the beginning of the year, the Treasurer shall
furnish the Chief Accountant with a duly certified list showing the name of
taxpayers and the amount due and collectible for the year. Based on the list, the
Chief Accountant shall draw a Journal Entry Voucher (JEV) to record the debit
to Real Property Tax Receivable/Special Education Tax Receivable and credit to
the Deferred Real Property Tax Income/Deferred Special Education Tax Income.
7.3 Upon collection of Real Property Taxes during the year, income is recognized by
crediting Real Property Tax Income while the Deferred Real Property Tax
Income/Deferred Special Education Tax Income is debited. The share of the
Province and Barangay shall also be credited to Due to LGUs.
7.4 Moreover, Sections 36 and 93 of the Manual provides pro-forma accounting
entries in setting up of RPT and SET receivables, respectively, as shown below:
Real Property Tax – Basic and Special Education Tax
Setting-up of RPT and SET Receivable
Ex. RPT =P1,000
Account Title Debit Credit
Real Property Tax Receivable 1,000.00
Deferred Real Property Tax Income 1,000.00
Ex. SET
Total Receivables=P500,000
Provincial Share =P250,000 (50%)
Special Education Tax Receivable 500,000.00
Deferred Special Education Tax Income 500,000.00
7.5 Our review of the transactions posted under the General Ledger (GL) of the RPT
and SET Receivable accounts, however, revealed non-compliance with the
prescribed provisions on the proper setup of these accounts. Perusal of the
Certified List of Taxpayers and the Corresponding Amount Due and Demandable
for CY 2024 showed a total tax collectible for the current year for both Basic and
Special Education Tax of a total of ₱9,583,142.65 or ₱4,791,571.33 each.
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