MAGCAMIT, HANNA ELAINE M.

BSA 3A
ACCOUNTING FOR GOVERNMENT AND NOT-FOR-PROFIT ORGANIZATIONS
GOVERNMENT ACCOUNTING – EXERCISES

INSTRUCTIONS: Prepare the journal entries required for each of the following transactions for a government agency:

National Government Agency Books

Transactions Dr. Cr.
Appropriations, Allotments, and Obligations
1. Receipt of GAA MEMO ENTRY TO THE
Personal Services (PS) P 3,000 APPROPRIATE RAPAL
Maintenance & Other Operating. Exp. (MOOE) 4,000
Capital outlay (CO) 5,000
Financial Expenses (FE) 2,000
P14,000
2. Receipt of Allotment from the DBM for: MEMO ENTRY TO THE
Personal Services (PS) P 2,000 APPROPRIATE RAPAL & RAOD
Maintenance & Other Operating Exp. (MOOE) 2,500
Capital outlay (CO) 10,500
Financial Expenses (FE) ___ 500
P15,500
3. Incurrence of Obligation for: MEMO ENTRY TO THE
Personal Services (PS) P 2,000 APPROPRIATE RAOD & POSTING
Maintenance & Other Oper. Expenses (MOOE) 2,500 TO ORS (OBLIGATION REQUEST
Capital outlay (CO) 10,500 AND STATUS)
Financial Expenses (FE) ___ 500
P15,500
4. Receipt of Notice of Cash Allocation (NCA) CASH – MODIFIED DISBURSEMENT 15,500
from DBM P15,500 SYSTEM – REGULAR 15,500
SUBSIDY INCOME FROM
NATIONAL GOVERNMENT

Personal Services
5. Set-up payable to Officers & Employees PAYROLL FUND 2,400
Regular pay P3,000 CASH – MODIFIED 2,400
Allowance (PERA) ___900 DISBURSEMENT SYSTEM
Gross P 3,900 – REGULAR
Less: Salary deductions:
Withholding tax 800
GSIS Life and Retirement Premium 400
PhilHealth premiums 200
Pag-ibig premiums ___100
Net P 2,400
ADVANCES TO OFFICERS & 2,400
6. Granting of cash advances for payroll P 2,400 EMPLOYEES 2,400
CASH – NT – MDS

Salaries &
7. Liquidation of payroll fund 3,000
900
Remittance of salary deductions 800
(employees share) 400

Wages – 200
100
2,400

Regular
Payroll……
……
PERA……
……………
……………
……………
….
Due to
BIR………
MAGCAMIT, HANNA ELAINE M. BSA 3A

……………
……………
…
Due to GSIS
……….
………..
……………
….
Due to
PhilHealth
………….
……………
….
Due to Pag-
ibig
……………
……………
….
Payroll Fund
Salaries &
Wages –
Regular
Payroll……
……
PERA……
……………
……………
MAGCAMIT, HANNA ELAINE M. BSA 3A

……………
….
Due to
BIR………
……………
……………
…
Due to GSIS
……….
………..
……………
….
Due to
PhilHealth
………….
……………
….
Due to Pag-
ibig
……………
……………
….
Payroll Fund
Salaries &
Wages –
Regular
Payroll……
MAGCAMIT, HANNA ELAINE M. BSA 3A

……
PERA……
……………
……………
……………
….
Due to
BIR………
……………
……………
…
Due to GSIS
……….
………..
……………
….
Due to
PhilHealth
………….
……………
….
Due to Pag-
ibig
……………
……………
….
Payroll Fund
SALARIES & WAGES – REGULAR
MAGCAMIT, HANNA ELAINE M. BSA 3A
PERA
DUE TO BIR
DUE TO GSIS
DUE TO PHILHEALTH
DUE TO PAGIBIG
PAYROLL FUND

8. Remittance of Government’s share: DUE TO BIR 800

Retirement and life insurance premium P 400 DUE TO GSIS 400
Pag-ibig contributions 100 DUE TO PHILHEALTH 200
PhilHealth contributions __200 DUE TO PAGIBIG 100
P 700 CASH – NT – MDS 1,500

Maintenance and Other Operating Expenses

9. Payment for two-year rent P 200 PREPAID RENT 200
CASH – NT - MDS 200
10. Payment of electricity and telephone bills IF OBLIGATION, MEMO ENTRY RAOD
Electricity bill . . . . . . . . . . . . . . P 400 AP 500
Telephone bill . . . . . . . . . . . . . . 100 CASH – NT - MDS 500
P 500
11. Grant of cash advance to ADVANCES TO OFFICERS & 100
Ms. Kennetha for traveling expense P 100 EMPLOYEES 100
CASH – NT – MDS
12. Liquidation of cash advance TRAVEL EXPENSES – LOCAL 80
for travel of Ms. Kennetha P 80 ADVANCES TO OFFICERS & 80
EMPLOYEES
13. Receipt and deposit of refund of cash advance P 20 SUBSIDY INCOME FROM 20
for travelling expenses of Ms. Kennetha NATIONAL GOVERNMENT 20
CASH – COLLECTING OFFICERS

14. Purchase of office supplies P 400

15. Paid the purchase order less withholding tax of P 40 OFFICE SUPPLIES INVENTORY 40
DUE TO BIR 40
CASH – NT - MDS
16. Issuance of the following office supplies P 200 OFFICE SUPPLIES EXPENSE 200
OFFICE SUPPLIES INVENTORY 200
17. Establishment of Petty Cash Fund for MOOE P 84 PCF 84
CASH – NT - MDS 84
18. Purchase of sign pens, ball pens, white board rd and pencils NO ENTRY
thru PCF P 72
19. To record obligation for request of replenishment of MEMO ENTRY TO RAOD
the PCF for P72.
20. To replenish PCF, before the end of the year. P 72 OFFICE SUPPLIES EXPENSE 72 72
CASH – NT - MDS
21. Closing of PCF within the year due to retirement of P 12
of the PCF Custodian

Capital Outlay

Purchase of Office Equipment – Cash Basis

24. Cash purchase of office equipment: CASH 950
Invoice price P 850 DUE TO BIR 950
Installation cost 60
Test run cost ____40
Total P 950
Less: Withholding tax ____80
Net amount paid P 870

Purchase of Agricultural Equipment – On Account

25. An entity purchased a threshing machine on MACHINERY 500
account at P500, credit terms of 2/10, n/30 AP 500

IF: Payment of machinery within the discount AP 530

Period (assuming P30 WHT) CASH 490
PD 10
DUE TO BIR 30
IF: Payment of machinery beyond the discount AP 530
Period (assuming P30 WHT) CASH 500
DUE TO BIR 30

Construction of Buildings
26. Receipt of cash from the contractor paid as MEMO ENTRY TO RAOCO
performance bond
27. Deposit of cash performance bond to BTr - AGDB DUE FROM NGA (BTr)
CASH COLLECTING OFFICER
28. Payment of 15% of contract for mobilization fee ADVANCES TO CONTRACTORS 240
(adv. - contractors) amounting to (P1,600 x 15%) P 240 CASH – NT –MDS 240
29. Payable on the first progress billing for CONSTRUCTION IN PROGRESS – 800
construction of building: BUILDINGS
50% of P1,600 P 800 ADVANCES TO CONTRACTORS 120
Less: Recoupment of advances to contractors __120 AP 680
Net Amount
P 680
30. Payment of first progress billings, net of WHT AP 680
MAGCAMIT, HANNA ELAINE M. BSA 3A
Accounts payable P 680 DUE TO BIR 47.6
Less: 10% Retention 68 CASH – NT - MDS 632.4
Withholding tax __47.6
Net P564.4
31. Payable on the final billing for construction of AP 680
building: CASH – NT - MDS 680
50% of P1,600 P 800
Less: Recoupment of advances 120
Liquidated damages for delay in
completion ___16
Net Amount P 664
32. Collection of liquidated damages P 16
33. Payment of final progress billings, withholding tax
Accounts payable
Less: 10% Retention P 680.0
Withholding tax 68.0
Net __47.6
P 564.4
34. Turn-over and acceptance of building
contract amount

35. Return of performance bond – refer to No. 26

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 P 600
Waterworks System Fees 1,000
Power Supply System Fees 2,000
Seaport System Fees 900
Landing and Parking Fees 1,500
Total P 6,000
42. Collection and Remittance
a. collection
Rent/Lease Income P 500
Waterworks System Fees 1,000
Power Supply System Fees 1,500
Seaport System Fees 800
Landing and Parking Fees _200
Total P4,000

b. remittance P 3,000

43. Unbilled Tax Revenue

a. Collection thru Agency Collecting Officer
Travel Tax P 200
Immigration Tax 2,500
Total P2,700
b. Remittance

c. Direct deposit thru Authorized Agent Banks

Travel tax P1,500
Immigration tax 4,000
P5,500
44. Unbilled Service Income
a. Collection
Permit Fees P 4,000
Registration Fees 1,500
Licensing Fees 1,000
b. Remittance P 6,500

45. Unbilled Business Income

a. Collection:
Affiliation Fees P 800
Examination Fees 1,000
Seminar/Training Fees 2,000
Guarantee Income 800
Fines & Penalties- Business Income 400
Other Business Income _1,000
MAGCAMIT, HANNA ELAINE M. BSA 3A
Total P6,000

b. Remittance:
46. Depreciation of the following:
Equipment P 12
Buildings 28
Construction equipment 20
Agricultural & Forestry Equipment __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