4.10. Moreover, the non-recording of the asset accounts in the GF books resulted in the
non-recognition of related Depreciation Expenses totaling ₱29,358,125.96. Thus, the
corresponding Accumulated Depreciation accounts were understated while the
surplus account was overstated by the same amount for the period. Collectively, these
deficiencies have adversely affected the accuracy and fair presentation of these
account balances in the financial statements.
4.11. We recommended and the City Accountant agreed to prepare the following
entries in the TF and GF books as follows:
4.11.1. TF Books:
a. To correct the erroneous recording of two projects totaling
₱3,067,128.72 from the CIP – Infrastructure Assets account to the
CIP – Buildings and Other Structures account
Account Name Account Code Debit Credit
CIP-Buildings and Other 1-07-10-030 3,067,128.72
Structures
CIP-Infrastructure 1-07-10-020 3,067,128.72
Assets
b. To record the transfer of the cost of 14 completed projects from the
CIP accounts to the respective PPE accounts
Account Name Account Code Debit Credit
Road Networks 1-07-03-010 41,068,941.46
Flood Control System 1-07-03-020 28,975,463.07
Buildings 1-07-04-010 15,079,301.21
School Buildings 1-07-04-020 998,245.80
Hospitals and Health 1-07-04-030
1,270,829.57
Centers
CIP-Infrastructure 1-07-10-020
70,044,404.53
Assets
CIP-Buildings and 1-07-10-030
17,348,376.58
Other Structures
c. To record the transfer of the PPE accounts to the GF
Account Name Account Code Debit Credit
Government Equity 3-01-01-010 87,392,781.11
Road Networks 1-07-03-010 41,068,941.46
Flood Control System 1-07-03-020 28,975,463.07
Buildings 1-07-04-010 15,079,301.21
School Buildings 1-07-04-020 998,245.80
Hospitals and Health 1-07-04-030
1,270,829.57
Centers
52
