ADVANCED FINANCIAL ACCOUNTING & REPORTING INTEGRATION
GOVERNMENT ACCOUNTING - EXERCISES
INSTRUCTIONS: Prepare the journal entries required for each of the following transactions in a
government agency:
National Government Agency
Books
Transactions
Dr.
Cr.
Appropriations, Allotments, and Obligations
1. Receipt of GAA
Personal Services (PS)
Maintenance & Other Operating. Exp. (MOOE)
Capital outlay (CO)
Financial Expenses (FE)
2. Receipt of Allotment from the DBM for:
Personal Services (PS)
Maintenance & Other Operating Exp. (MOOE)
Capital outlay (CO)
Financial Expenses (FE)
3. Incurrence of Obligation for:
Personal Services (PS)
Maintenance & Other Oper. Expenses (MOOE)
Capital outlay (CO)
Financial Expenses (FE)
4. Receipt of Notice of Cash Allocation (NCA)
from DBM
P 3,000
4,000
5,000
2,000
P14,000
P 2,000
2,500
10,500
___ 500
P15,500
P 2,000
2,500
10,500
___ 500
P15,500
P15,500
Posting/Memo
entry
appropriate RAPAL
to
the
Posting to the appropriate RAPAL &
RAODPS
RAODMOOE
RAODCO
RAODFE
Posting to ORS to the appropriate:
RAODPS
RAODMOOE
RAODCO
RAODFE
Cash – MDS, Regular
Subsidy from National Gov’t.
15,500
15,500
Personal Services
5. Set-up payable to Officers & Employees
Regular pay
Allowance (PERA)
Gross
Less: Salary deductions:
Withholding tax
GSIS Life and Retirement Premium
PhilHealth premiums
Pag-ibig premiums
Net
6. Granting of cash advances for payroll
P3,000
___900
P 3,900
800
400
200
___100
P 2,400
P 2,400
7. Liquidation of payroll fund
Maintenance and Other Operating Expenses
9. Payment for two-year rent
10. Payment of electricity and telephone bills
Electricity bill . . . . . . . . . . . . . .
Telephone bill . . . . . . . . . . . . . .
11. Grant of cash advance to
Ms. Kennetha for traveling expense
12. Liquidation of cash advance
for travel of Ms. Kennetha
13. Receipt and deposit of refund of cash advance
for travelling expenses of Ms. Kennetha
3,000
900
800
400
200
100
2,400
2,400
Advances for Payroll
Cash – MDS, Regular
Due to Officers and Employees
Advances for Payroll
Remittance of salary deductions
(employees share)
8. Remittance of Government’s share:
Retirement and life insurance premium
Pag-ibig contributions
PhilHealth contributions
Salaries & Wages – Regular
PERA
Due to BIR
Due to GSIS
Due to PhilHealth
Due to Pag-IBIG
Due to Off. & Employees
2,400
2,400
2,400
Due to GSIS
Due to PhilHealth
Due to Pag-IBIG
Cash – MDS, Regular
400
200
100
P 400
100
__200
P 700
Retirement & Life Insurance Premium
Pag-ibig contributions
Philhealth contributions
Cash-MDS, Regular
400
100
200
P 200
Prepaid Rent
Cash – MDS, Regular
200
Electricity expenses
Telephone expenses
Cash – MDS, Regular
Advances to Officers & Employees
Cash – MDS, Regular
Travel expenses
Advances to Officers & Employ.
Cash-collecting officers
Advances to Off. & Employees
400
100
P 400
100
P 500
P 100
P 80
P 20
Cash – Treasury Agency Deposit,
Regular
Cash-collecting officers
700
700
200
500
100
100
80
80
20
20
20
20
14. Purchase of office supplies
P 400
15. Paid the purchase order less withholding tax of
P 40
16. Issuance of the following office supplies
P 200
17. Establishment of Petty Cash Fund for MOOE
P 84
18. Purchase of sign pens, ball pens, white board rd
and pencils thru PCF
19. To record obligation for request of replenishment of
the PCF for P72.
20. To replenish PCF, before the end of the year.
P 72
P 72
21. Closing of PCF within the year due to retirement of
of the PCF Custodian
P 12
Office supplies inventory
Accounts payable
Accounts payable
Due to BIR
Cash – MDS, Regular
Office supplies expense
Office supplies inventory
Petty Cash Fund
Cash – MDS, Regular
No entry required
Memorandum entry/posting to the
appropriate RAODMOOE
Office Supplies Expenses
Cash – MDS, Regular
Cash – collecting officer
Petty Cash
400
400
400
40
360
200
200
84
84
72
72
12
12
Capital Outlay
Purchase of Office Equipment – Cash Basis
24. Cash purchase of office equipment:
Invoice price
Installation cost
Test run cost
Total
Less: Withholding tax
Net amount paid
P
850
60
____40
P 950
____80
P 870
Purchase of Agricultural Equipment – On Account
25. An entity purchased a threshing machine on
account at P500, credit terms of 2/10, n/30
IF: Payment of machinery within the discount
Period (assuming P30 WHT)
IF: Payment of machinery beyond the discount
Period (assuming P30 WHT)
Construction of Buildings
26. Receipt of cash from the contractor paid as
performance bond
27. Deposit of cash performance bond to BTr - AGDB
28. Payment of 15% of contract for mobilization fee
(adv. - contractors) amounting to (P1,600 x 15%)
29. Payable on the first progress billing for
construction of building:
50% of P1,600
Less:
Recoupment
of
advances
to
contractors
Net Amount
30. Payment of first progress billings, net of WHT
Accounts payable
Less: 10% Retention
Withholding tax
Net
31. Payable on the final billing for construction of
building:
50% of P1,600
Less: Recoupment of advances
Liquidated damages for delay in
completion
Net Amount
32. Collection of liquidated damages
33. Payment of final progress billings, withholding
tax
Accounts payable
Less: 10% Retention
Withholding tax
Net
34. Turn-over and acceptance of building
contract amount
P 240
P 800
__120
Office Equipment
Cash – MDS, Regular
Due to BIR
950
Agricultural & Forestry Equipment
Accounts payable (P500 x .98)
Accounts payable
Due to BIR
Cash – MDS, Regular
Accounts payable
Other losses
Due to BIR
Cash – MDS, Regular
490
Cash – collecting officer
Guaranty/Security Deposits
Payable
Cash–Treasury/Agency Dep., Trust
Cash – collecting officer
Advances to Contractors
Cash – MDS, Regular
Construction In Progress – Buildings
& Other Structures
Accounts payable
Advances to Contractors
150
Accounts payable
Due to BIR
Guaranty/Security Deposits
Payable
Cash – MDS, Regular
Construction In Progress – Buildings
& Other Structures
Accounts payable
Advances to Contractors
680
870
80
490
490
30
460
490
10
30
470
150
150
150
240
240
800
680
120
P 680
P 680
68
__47.6
P564.4
P 800
120
___16
P 664
P
16
P 680.0
68.0
__47.6
P 564.4
Cash – collecting officer
Miscellaneous income
Accounts payable
Due to BIR
Guaranty/Security Deposits
Payable
Cash – MDS, Regular
Buildings
Construction In Progress –
Buildings & Other Structures
47.6
68.0
564.4
800
680
120
16
16
680
47.6
68.0
564.4
1,600
1,600
35. Return of performance bond – refer to No. 26
Guaranty/Security Deposits Payable
150
150
Cash–Treasury/Agency Dep., Trust
36. Release of Retention Fee – refer to Nos. 30 & 33
(68 + 68 = 136)
Purchase of Construction Equipment – On Installment
37. An entity purchased a bulldozer at an installment
price of P300; terms, P50 down payment and the
balance is payable in 4 annual installment. The
cash price of the heavy equipment is P270.
38. First installment payment (including P3 interest)
P 30
39. Remittance of taxes thru Tax Remittance Advice
a. Constructive receipt of NCA
No. 5
No. 15
No. 24
No. 25
No. 30
No. 33
Total.
b. Remittance of taxes thru TRA
Revenue
41. Billing of revenue/income
Rent/Lease Income
Waterworks System Fees
Power Supply System Fees
Seaport System Fees
Landing and Parking Fees
Total
42. Collection and Remittance
a. collection
Rent/Lease Income
Waterworks System Fees
Power Supply System Fees
Seaport System Fees
Landing and Parking Fees
Total
b. remittance
P
Guaranty/Security Deposits Payable
Cash – MDS, Regular
136
Construction & Heavy Equipment
Accounts payable
Cash-MDS, Regular
270
Accounts payable
Interest expense
Cash – MDS, Regular
c. Direct deposit thru Authorized Agent Banks
Travel tax
Immigration tax
220
50
27
3
30
Cash- Tax Remittance Advice
Subsidy from National Gov’t.
1,045.2
Due to BIR
Cash-Tax Remittance Advice
1,045.2
1,045.2
1,045.2
600
1,000
2,000
900
1,500
P 6,000
Accounts Receivable
Rent/Lease Income
Waterworks System Fees
Power Supply System Fees
Seaport System Fees
Landing and Parking Fees
6,000
P 500
1,000
1,500
800
_200
P4,000
Cash-Collecting Officer
Accounts Receivable
4,000
600
1,000
2,000
900
1,500
4,000
P 3,000
Cash-Treasury/Agency Deposit
Regular
Cash-Collecting Officer
43. Unbilled Tax Revenue
a. Collection thru Agency Collecting Officer
Travel Tax
Immigration Tax
Total
b. Remittance
136
P 200
2,500
P2,700
P1,500
4,000
P5,500
3,000
3,000
Cash-Collecting Officers
Travel Tax
Immigration Tax
Cash-Treasury/Agency Deposit,
Regular
Cash-Collecting Officers
2,700
Cash-Treasury/Agency Deposit,
Regular
Travel Tax
Immigration Tax
5,500
Cash-Collecting Officers
Permit Fees
Registration Fees
Licensing Fees
6,500
200
2,500
2,700
2,700
1,500
4,000
44. Unbilled Service Income
a. Collection
Permit Fees
Registration Fees
Licensing Fees
P 4,000
1,500
1,000
P 6,500
Cash-Treasury/Agency Deposit,
Regular
Cash-Collecting Officers
b. Remittance
45. Unbilled Business Income
a. Collection:
Affiliation Fees
Examination Fees
Seminar/Training Fees
Guarantee Income
Fines & Penalties- Business Income
Other Business Income
Total
P 800
1,000
2,000
800
400
_1,000
P6,000
Cash-Collecting Officers
Affiliation Fees
Examination Fees
Seminar/Training Fees
Guarantee Income
Fines & Penalties- Business Income
Other Business Income
4,000
1,500
1,000
6,500
6,500
6,000
800
1,000
2,000
800
400
1,000
b. Remittance:
46. Depreciation of the following:
Equipment
Buildings
Construction equipment
Agricultural & Forestry Equipment
Cash-Treasury/Agency Deposit
Regular
Cash-collecting officer
d
P 12
28
20
__10
P 70
47. Rent expense for the year, P200/2 years
P 100
Impairment loss – Loans & receivable
P240
48. Reversion of the Unused Subsidy from National
Government representing NCA/Adjustment of
Unused NCA
Closing Entries:
a. Income Account
b. Expense Accounts
c. Close SNG to Revenue and Expense Summary
d. Close Revenue and Expense Summary (26,700 5,955)
e. Cash Deposit Account
Depreciation expense - eqpt
Depreciation expense – bldgs.
Depreciation expense – const. eqpt.
Depreciation expense – agr. & for.
Acc depreciation – eqpt.
Acc depreciation - bldgs.
Acc depreciation – eqpt.
Acc depreciation - agr. & forestry
Rent expense
Prepaid rent
Impairment loss–Loans & receivable
Allowance for Impairment –A/R
Subsidy from National Govt’
Cash – MDS, regular
6,000
6,000
12
28
20
10
12
28
20
10
100
100
240
240
15,488
15,488
Rent/Lease Income
Waterworks System Fees
Power Supply System Fees
Seaport System Fees
Landing and Parking Fees
Travel Tax (200 + 1,500)
Immigration Tax (2,500 + 4,000)
Permit Fees
Registration Fees
Licensing Fees
Affiliation Fees
Examination Fees
Seminar/Training Fees
Guarantee Income
Fines & Penalties- Business Income
Other Business Income
Revenue & Expense Summary
600
1,000
2,000
900
1,500
1,700
6,500
4,000
1,500
1,000
800
1,000
2,000
800
400
1,000
Revenue & Expense Summary
Salaries & Wages Regular
PERA
Retirement and Life Insurance
PhilHealth Contributions
Pag-ibig Contributions
Electricity Expenses
Telephone Expenses
Travel Expenses
Office supplies expense (200 +72)
Depreciation expense - eqpt
Depreciation expense - bldgs
Depreciation exp. – const. eqpt.
Depreciation exp. – agr. & for.
Rent/Lease Expenses
Impairment Loss - Loans
Receivables
Other losses
Interest expense
Subsidy from National Govt
Revenue & Expense Summary
5,955
Revenue & Expense Summary
Accumulated Surplus/(Deficit)
Accumulated Surplus/(Deficit)
Cash-Treasury/Agency Deposit
Regular
26,700
3,000
900
400
200
100
400
100
80
272
12
28
20
10
180
240
10
3
15,488
15,488
20,745
20,745
23,720
Tax Remittance Advice - A serially-numbered document that should be used by the NGAs in the
remittance of withheld taxes on funds coming from DBM. This form is being attached to every
withholding tax return filed as payment for taxes withheld. This shall be the basis for the BIR and the
Bureau of Treasury (BTr) to record the tax collection in their respective books of accounts.
23,720