Toaz Government Accounting Quiz Solutions PDF

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Page |1 PROBLEM 01: 1. What is the role of the Bureau of Treasury in relation to government accounting responsibility? A. To receive and keep national funds and manage or control disbursement thereof. B. To design, prepare and approve the accounting systems of government agencies. C. To keep the general accounts of the national government. D. To prepare the annual financial report of the national government, its instrumentalities and government-owned or controlled corporations. 2. It refers to an accounting entity for recording expenditures and revenue associated with a specific activity for which accounting records are maintained and periodic reports are prepared. A. Financial accounting and reporting B. Public sector accounting and reporting C. Fund cluster accounting D. Responsibility accounting 3. It represents the accounts classification as to assets, liabilities, equity, income and expenses. A. Code B. Account group C. Major account group D. Sub-major account group 4. Which department prepares the national budget, which serves as the basis of the General Appropriation Act? A. Executive Department B. Legislative Department C. Judiciary Department D. National Government Agencies/units 5. It is the amount committed to be paid by the government arising from an act of a duly authorized administrative officer and which binds the government to the immediate and eventual payment of money. A. Obligation

Page |2 B. Appropriation C. Allotment D. Commitment PROBLEM 02: Entity A is a newly formed government agency. Entity A ‘s transactions and events during the calendar year 20x1 are as follows: A. Received appropriation of P500,000. B. Received allotment of P450,000. C. Incurred obligations amounting to P440,000. D. Received Notice of Cash Allocation of P430,000. E. Accrued P80,000 salaries through granting, and liquidation, of cash advance. The breakdown of the salaries is as follows: Salaries and Wages P 70,000 Personal Economic Relief Allowance (PERA) 10,000 Gross Compensation P 80,000 Withholding Tax P 18,000 GSIS 4,000 Pag-IBIG 1,000 PhilHealth 2,000 Total Salary Deduction P 25,000 F. Received delivery of purchased office equipment worth P200,000. The equipment has an estimated useful life of 5 years and a 5% residual value. Entity A recognizes monthly depreciation every end of the month using the straight-line method. The equipment is acquired on January 1, 20X 1. G. Paid the accounts payable from the purchase of equipment above. Taxes withheld amount to P12,000. H. Received delivery of purchased offices supplies worth P100,000. The office supplies were purchased through check. Taxes withheld amount to P5,000. I. Issued office supplies worth P90,000 to end user. J. Granted P20,00 cash advance to an employee for travelling expenses on an official local travel. The employee liquidated P17,00 and remitted the excess cash advance. K. Collected unbilled service income for Permit Fees of P40,000 and remitted P30,000 of the total collection.

Page |3 L.

Paid water and electricity expenses amounting to P5,000 and P10,000, respectively. Taxes withheld amount to P2,000. M. Remitted the taxes withheld amount to the BIR. N. Remitted contributions to GSIS, PhilHealth and Pag-IBIG. Requirement: a. Record the transactions and events above. If no journal entry is needed, state the registry or the other document where the transaction or event is recorded. b. Post the transactions in the ledger. Use T-accounts. c. Prepare the unadjusted trial balance. d. Prepare the adjustments, if any. e. Prepare the closing entries.

Requirement (a): Recordings a. The appropriation is posted (recorded) in the Registry of Appropriations and Allotments (RAPAL). b. The allotment is posted (recorded) in the Registry of Appropriations and Allotments (RAPAL) and Registries of Allotments, Obligations and Disbursements (RAOD). c. The obligations are recorded in the Obligation Request and Status (ORS) and Registries of Allotments, Obligations and Disbursements (RAOD). d. Journal entry Date (d)

Cash-Modified Disbursement System (MDS), Regular Subsidy from National Government

430,000 430,000

To recognize receipt of NCA from the DBM

e. Journal entries (e.1)

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

70,000 10,000 18,000 4,000 1,000 2,000 55,000

Page |4 To recognize payable to officers and employees upon approval of payroll (e.2)

Advances for Payroll Cash-Modified Disbursement System (MDS), Regular

55,000 55,000

To recognize grant of cash advance for payroll (e.3)

Due to Officers and Employees Advances for Payroll

55,000 55,000

To recognize liquidation of Payroll Fund

f.

Journal entries (f.1)

Office Equipment Accounts Payable

200,000 200,000

To recognize delivery of office equipment (f.2)

Depreciation-Machinery and Equipment Accumulated Depreciation – O.E.

38,000 38,000

To recognize depreciation of office equipment

g. Journal entry (g)

Accounts Payable Due to BIR Cash – Modified Disbursement System (MDS), Regular

200,000 12,000 188,000

To recognize payment of accounts payable

h. Journal entry (h)

Office Supplies Inventory Due to BIR Cash – Modified Disbursement System (MDS), Regular

100,000 5,000 95,000

To recognize delivery of office supplies

i.

Journal entry (i)

Office Supplies Expense Office Supplies Inventory To record the issuance of office supplies to end users

90,000 90,000

Page |5

j.

Journal entry (j.1)

Advances to Officers and Employees Cash – Modified Disbursement System (MDS), Regular

20,000 20,000

To recognize grant of cash advance for travel (j.2)

Traveling Expenses - Local Advances to Officers and Employees

17,000 17,000

To recognize liquidation of cash advance for travel (j.3)

Cash – Collecting Officers Advances to Officers and Employees

3,000 3,000

To recognize refund of excess cash advance for travel (j.4)

Cash – Treasury/Agency Deposit, Regular Cash – Collecting Officers

3,000

To recognize remittance of the refund of excess cash advance for travel

3,000

k. Journal entry (k.1)

Cash – Collecting Officers Permit fees

40,000 40,000

To recognize collection of unbilled service income (k.2)

Cash-Treasury/Agency Deposit, Regular Cash – Collecting Officers

30,000 30,000

To recognize remittance of income to the BTr

l.

Journal entry (l)

Water Expenses Electricity Expenses Due to BIR Cash – Modified Disbursement

5,000 10,000 2,000

Page |6 System (MDS), Regular

13,000

To recognize issuance of MDS checks as payment for expenses

m. Journal entry (m.1)

Cash-Tax Remittance Advice Subsidy from National Government

37,000 37,000

To recognize the constructive receipt of NCA for TRA (m.2)

Due to BIR Cash-Tax Remittance Advice

37,000 37,000

To recognize constructive remittance to BIR of taxes withheld through TRA

n. Journal entry (n)

Due to GSIS Due to Pag-IBIG Due to PhilHealth Cash-Modified Disbursement System (MDS), Regular To recognize remittance to GSIS, Pag-IBIG and PhilHealth

Requirement (b): Posting in the ledger

4,000 1,000 2,000 7,000

Page |7

Page |8

Requirement (c): Unadjusted Trial Balance Accounts

Debit

Cash - Collecting Officers

10,000

Credit

Page |9 Cash-Treasury/Agency Dep., Reg.

33,000

Cash-MDS, Regular

52,000

Cash-Tax Remittance Advice Office Supplies Inventory Office Equipment

10,000 200,000

Accumulated Depreciation - Equipment

38,000

Advances for Payroll

-

Advances to Officers and Employees

-

Accounts Payable

-

Due to Officers and Employees

-

Due to BIR

-

Due to GSIS

-

Due to Pag-IBIG

-

Due to PhilHealth

-

Accumulated Surplus (Deficit)

-

Permit Fees

40,000

Subsidy from NG

467,000

Salaries and Wages, Regular

70,000

PERA

10,000

Travelling Expenses - Local

17,000

Office Supplies Expense

90,000

Water Expenses

5,000

Electricity Expenses

10,000

Depreciation-Machinery & Equipment

38,000

P a g e | 10 Totals

545,000

545,000

Requirement (d): Adjusting Entry

(AJE)

Subsidy from National Government Cash-Modified Disbursement System (MDS), Regular To recognize reversion of unused NCA

52,000 52,000

P a g e | 11

QUIZ 01: NAME: _______________________________ID No.: __________

Requirement (e): Closing entries

(CL1)

Accumulated Surplus/(Deficit) Cash-Treasury/Agency Deposit, Regular

33,000 33,000

To recognize closing of cash deposit account (CL2)

Permit Fees Subsidy from National Government Salaries and Wages, Regular PERA Travelling Expenses - Local Office Supplies Expense Water Expenses Electricity Expenses Depreciation-Mac. & Equipt. Revenue and Expense Summary

40,000 415,000 70,000 10,000 17,000 90,000 5,000 10,000 38,000 215,000

To recognize closing of income and expense accounts (CL3)

Revenue and Expense Summary Accumulated Surplus/(Deficit) To recognize closing of revenue and expense summary

215,000 215,000...