Wesleyan University Philippines

College of Business and Accountancy

Name:
Course, Year & Block:
I. Problems.
Agency XYZ received an allotment and Notice of Cash allocation of 5,000,000.00
and 2,500,000.00, respectively, for Personnel Services. Agency XYZs payroll for the
month of February 2015, comprises the following:
i.
Salaries & Wages
1,890,000
ii.
PERA
80,000
Personal deductions:
i.
Withholding Taxes
56,000
ii.
GSIS Life and Retirement Premium
95,000
iii.
PHIC Premium
36,000
iv.
HDMF Premium
47,000
Government Share:
i.
GSIS Life and Retirement Premium
118,000
ii.
PHIC Premium
36,000
iii.
HDMF Premium
47,000
Required:
Prepare ALL necessary Journal entries in the books of Agency XYZ.
Compute for the following: 1) Total Net Pay, 2) Total Government remittances, 3)
Balance of Allotment in Personnel Services.
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Department ABC is a national government agency. It derives income only from

appropriations out of the national budget. Some transactions for the agency during
the current fiscal year follows:
i.
Obligation for construction of a building upon signing of the contract, P
2,000
ii.
Payment of 15% of the contract amount as advances to the contractor.
iii.
Receipt of progress billing for construction work amounting to 1,000,
which represent 50% completion. The government withholds 10% on
progress billings.
iv.
Remittance of withholding tax on the 1st billing.
v.
Receipt of final billing for construction work amounting to 1,000. The
government withholds 10% on progress billings.
vi.
Remittance of withholding tax on the last billing.
vii.
Turnover and acceptance of the building.
Required:
Prepare ALL journal entries for the above information.
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Agency NYG received an appropriation and NCAs amounting to 100,000 and 80,000
respectively. The agency incurred the following obligation:
Issuance of Purchase Order (PO) for spare parts P250
Issuance of PO for Office supplies P500
Receipt of items with invoice (spare parts and Office supplies)
Payment of the above purchases. The government withholds 10% on
their purchases.
30% of the Office supplies were issued for office use.
Required:
Prepare all necessary adjusting entries for the above information.
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Agency xXx is a national government agency unit. Selected transactions completed

during the agencys 2015 operations follow:
i.
Approval of the annual budget of the agency for 2015 by DBM (thru
Congress) as follows:
a. Personnel Services
2,000,000
b. MOOE
1,500,000
c. Capital Outlay
1,200,000
d. Financial Expenses
40,000
ii.
Approval of Agencys budget matrix by DBM and related allotment
received out of the above APPROPRIATIONS:
a. Personnel Services
1,800,000
b. MOOE
1,350,000
c. Capital Outlay
1,100,000
d. Financial Expenses
35,000
iii.
Receipt of NCA for the above mentioned allotment for a total of 4,100,000
iv.
Incurred OBLIGATION and paid the following MOOE:
a. Various Operating Expenses
1,100,000
b. Prepaid Rent
120,000
c. Travelling expenses of the Treasurer,
Pol Buba, for a scheduled seminar in
Kutawi.
40,000
i.
Refund of excess cash advance
For travelling expenses by POL B.
3,000
ii.
Liquidation of the actual travel
Expenses by POL B.
37,000
iii.
Deposit of collection for excess
Cash advance to BTr
3,000
v.
Incurred OBLIGATION for the acquisition of office equipment, 800,000.
Government withholds 12% on the purchase price.
vi.
Payment of Equipment purchased from letter v and remittance of
withholding tax to BIR
vii.
Incurred obligation and paid bank service charges of 33,500.
Required:
Prepare all necessary journal entries on the above information.
II. Matching type

a
b
c
d
e
f
g
h
i

Column 1
Appropriation
Budget
Annual Appropriation
Continuing
Appropriation
Appropriation reserve
Allotment
Government Equity
RAOCO

General Journal
j Equity
k Appraisal Surplus
Retained Operating
l
Surplus
m Contingent Asset
n RAOMO
o RAOPS

1
2
3
4
5
6
7
8
9
1
0

Column 2
it is the accumulated profit of a governmental unit
the amount deducted from the appropriation to arrive at the allotment
for the year
this is the legal authorization to use government funds
it is the plan of activities to be undertaken by any governmental unit
showing among others, the purpose and the amount needed for
operations
the authorization from the budget officer for the incurrence of
obligations
the accounting equation in government accounting is total assets
minus total liabilities equals
All expenditures for personnel services of the government are in this
registry
All expenditures for capital outlays are entered in this registry
An appropriation available beyond one year
They are claims for disallowed payments

RAOFE