PROBLEM 3-6
1. Receipt of 1000000 NCA
2. Remittance to the BIR of 100,000 taxes withheld
3. Receipt of 1,000,000 Allotment
4. Receipt of 1,200,000 Appropriation
5. Entering into a purchase contract for future delivery. The Contract price is 500,000
6. Entering into employment contracts worth 200,000
7. Billing of 250,000 revenue for Affiliation Fees, subsequent collection of 200,000 therefrom, and
full remittance of the collection to the BTr
8. Reversion of 50,000 unused NCA
9. Receipt of office equipment purchased on account for 100,000
10. Payment of accounts payable from purchase of office supplies worth 60,000. Tax withheld
amount to 3000.
1. Cash MDS, Regular
Subsidy from National Government
2. Cash- TRA
Subsidy from National Government
Due to BIR
1,000,000
1,000,000
100,000
100,000
100,000
Cash- TRA
100,000
3. No J/E; Recorded in RAOD and RAPAL
4. No J/E; Recorded in RAPAL
5. No J/E
6. No J/E
7. Accounts Receivable
Affiliation fees
250,000
Cash - Collecting Officers
Accounts Receivable
250,000
Cash- Treasury/ Agency Deposit, Regular
Cash - Collecting Officers
250,000
8. Subsidy from National Government
Cash MDS, Regular
9. Office Equipment
Accounts Payable
10. Accounts Payable
Due to BIR
250,000
250,000
250,000
50,000
50,000
100,000
100,000
60,000
3000
Cash - Modified Disbursement System, Regular
PROBLEM 3-7
a. No J/E; Recorded in RAPAL
b. No J/E; Recorded in RAPAL and RAOD
c. No J/E; Recorded in RAOD and ORS
d. Cash - Modified Regular System (MDS), Regular
Subsidy from National Government
e. Salaries and Wages, Regular
Personal Economic Relief Allowance (PERA)
Due to BIR
Due to GSIS
Due to Pag-IBIG
Due to PhilHealth
Due to Officers and Employees (net)
57,000
430,000
430,000
70,000
10,000
18,000
4000
1000
2000
55,000
f. Office Equipment
Accounts Payable
200,000
g. Accounts Payable
Due to BIR
Cash - Modified Disbursement System, Regular
200,000
h. Office Supplies Inventory
Cash-Modified Disbursement System (MDS), Regular
Due to BIR
100,000
200,000
12,000
188,000
95,000
5,000
i. Office Supplies Expense
Office Supplies Inventory
90,000
j. Advances to Officers and Employees
Cash - Modified Disbursement System, Regular
20,000
Traveling Expenses - Foreign
Advances to Officers and Employees
17,000
Cash - Collecting Officers
Advances to Officers and Employees
3,000
Cash - Treasury/ Agency Deposit, Regular
Cash - Collecting Officers
3,000
90,000
20,000
17,000
3,000
3,000
k. Cash - Collecting Officers
Permit Fees
40,000
Cash - Treasury/ Agency Deposit, Regular
Cash - Collecting Officers
30,000
l. Water Expenses
Electricity Expenses
Due to BIR
Cash - Modified Disbursement System, Regular
5,000
10,000
m. Cash-Tax Remittance Advice
Subsidy from National Government
37,000
Due to BIR
37,000
40,000
30,000
2,000
13,000
37,000
Cash- Tax Remittance Advice
37,000
Due to BIR
18,000
12,000
5,000
2,000
37,000
n. Due to GSIS
Due to Pag-IBIG
Due to PhilHealth
Cash-Modified Disbursement System (MDS), Regular
GSIS
Pag-IBIG
PhilHealth
Total
4,000
1,000
2,000
4000
1000
2000
7,000
b) Post the Transactions and events above.
ASSETS
Cash-Collecting Officers
Cash - Treasury/Agency Deposit, Regular
3,000
3,000
3,000
40,000
30,000
30,000
10,000
33,000
Cash - Modified Disbursement System (MDS, Regular)
430,000 188,000
7,000
20,000
13,000
95,000
7,000
107,000
Cash - Tax Remittance Advice
37,000
37,000
0
Office Supplies Inventory
100,000
90,000
10,000
Office Equipment
200,000
Advances to Officers and Employees
20,000
17,000
3,000
0
LIABILITIES
Accounts Payable
200,000 200,000
0
Due to GSIS
4,000
4000
0
Due to BIR
37,000
Due to Pag-IBIG
1,000
18,000
12,000
5,000
2,000
0
1000
0
Due to Philhealth
2,000
2000
0
Due to Officers and Employees (net)
55,000
55,000
Permit Fees
Subsidy from National Government
430,000
37,000
467,000
EQUITY
INCOME
40,000
40,000
EXPENSES
Salaries and Wages, Regular
70,000
70,000
Personal Economic Relief Allowance (PERA)
10,000
10,000
Office Supplies Expense
90,000
90,000
Traveling Expenses - Foreign
17,000
17,000
Water Expenses
5,000
5,000
Electricity Expenses
10,000
10,000
c) Prepare the Unadjusted Trial Balance
UNADJUSTED TRIAL BALANCE
Accounts
Cash-Collecting Officers
Cash - Treasury/Agency Deposit, Regular
Cash - Modified Disbursement System (MDS, Regular)
Cash - Tax Remittance Advice
Office Supplies Inventory
Office Equipment
Advances to Officers and Employees
Accounts Payable
Due to BIR
Due to GSIS
Due to Pag-IBIG
Due to Philhealth
Due to Officers and Employees (net)
Permit Fees
Subsidy from National Government
Salaries and Wages, Regular
Personal Economic Relief Allowance (PERA)
Office Supplies Expense
Traveling Expenses - Foreign
Water Expenses
Electricity Expenses
Totals
RCA Code
Debit
Credit
10,000
33,000
107,000
0
10,000
200,000
0
0
0
0
0
0
55,000
40,000
467,000
70,000
10,000
90,000
17,000
5,000
10,000
562,000
562000
d) Prepare the adjustments, if any.
1. Reversion of unused Notice of Cash Allocation
Subsidy from National Government
Cash - Modified Disbursement System (MDS, Regular)
107,000
107,000
2. Depreciation Expenses
Depreciation - Office Equipment
Accumulated Depreciation - Office Equipment
[(200,000 - 10,000) / 5]
38,000
38,000
e) Prepare a complete worksheet showing columns for post-closing trial balance.
Accounts
RCA Code
Cash-Collecting Officers
Cash - Treasury/Agency Deposit, Regular
Cash - Modified Disbursement System (MDS, Regular)
Cash - Tax Remittance Advice
Office Supplies Inventory
Office Equipment
Due to Officers and Employees (net)
Permit Fees
Subsidy from National Government
Salaries and Wages, Regular
Personal Economic Relief Allowance (PERA)
Office Supplies Expense
Traveling Expenses - Foreign
Water Expenses
Electricity Expenses
Adjustments
Depreciation - Office Equipment
Accumulated Depreciation - Office Equipment
Accumulated Surplus/(Deficit)
Totals
Unadjusted Trial Balance
Adjustments
Adjusted Trial Balance
Debit
Credit
Debit
Credit
Debit
Credit
10,000
10,000
33,000
33,000
107,000
107,000
0
0
0
10,000
10,000
200,000
200,000
55,000
55,000
40,000
40,000
467,000 107,000
360,000
70,000
70,000
10,000
10,000
90,000
90,000
17,000
17,000
5,000
5,000
10,000
10,000
38,000
38,000
38,000
562,000
562000 145,000 145,000
38,000
493,000
493000
Statement of
Financial Performance
Debit
Credit
Statement of
Financial Position
Debit
Credit
10,000
33,000
0
0
10,000
200,000
55,000
40,000
360,000
Closing
Entries
Debit
Credit
33,000
10,000
200,000
55,000
40,000
360,000
70,000
10,000
90,000
17,000
5,000
10,000
70,000
10,000
90,000
17,000
5,000
10,000
38,000
38,000
38,000
240,000
160,000
400,000
Post Closing
Trial Balance
Debit
Credit
10,000
38,000
33,000 160,000
127,000
400,000 253,000
93,000 433,000 433,000 220,000 220,000
160,000
400,000 253,000 253,000
f) Prepare the closing entries.
Accumulated Surplus/(Deficit)
Cash-Treasury/Agency Deposit, Regular
33,000
33,000
Subsidy from National Government
Revenue and Expense Summary
360,000
Permit Fees
Revenue and Expense Summary
Salaries and Wages, Regular
Personal Economic Relief Allowance (PERA)
Office Supplies Expense
Traveling Expenses - Foreign
Water Expenses
Electricity Expenses
Depreciation Expense
40,000
200,000
Revenue and Expense Summary
Accumulated Surplus/(Deficit)
160,000
360,000
70,000
10,000
90,000
17,000
5,000
10,000
38,000
160,000