lOMoARcPSD|31481729

UNIVERSITY OF PERPETUAL HELP SYSTEM DALTA

CALAMBA CAMPUS, BRGY. PACIANO RIZAL,
CALAMBA CITY, LAGUNA, PHILIPPINES

EDMUND E. HILARIO, CPA, MBA 2ND SEMESTER 2020 - 2921

===============================================================================================
A. A. R. PUNZALAN government shall be entered in the Registry of
Appropriation and Allotment (RAPAL) by
1. Its main function is the availability and appropriation a. Department of Budget and Management
of funds for public services b. Bureau of treasury
a. Department of Finance c. Commission on Audit
b. Department of Treasury d. Government agencies
c. National Budget System
d. Commission on Audit 9. Although the agency will not journalize its
appropriation and allotments it shall maintain four
2. Which government body is responsible for the design registries for the allotment it receives and for the
and preparation of the New Government Accounting obligations it incurs. Which of the following is the
System (NGAS)? registry in the books of agency?
a. Department of budget and management a. Registry of allotment and obligation
b. Bureau of Treasury b. Registry of appropriations and allotments
c. Commission on Audit c. Registry of notice of cash allocation and
d. Government Agencies replenishment
d. Registry of allotment and notice of cash allocation
3. The following are the systems followed in the New
Government Accounting System (NGAS) except 10. As provided in the constitution no money shall be paid
a. Commercial accounting out of the National Treasury except in pursuance of
b. Double entry bookkeeping a. Budget
c. Responsibility accounting b. President’ exclusive order
d. Fund accounting c. Fund
d. Appropriation
4. This is the basis of accounting under the international
point of view according to International Public Sector 11. It is a cash authority issued periodically by the DBM to
Accounting Standards Board (IPSASB) the operating units of government agencies to cover
a. Accrual and cash basis their cash requirements?
b. Cash basis a. Notice of Cash Allocation (NCA)
c. Accrual basis b. Non-Cash Availment Authority (NCAA)
d. Strict accrual c. Cash Disbursement Ceiling (CDC)
d. Cash Release Program (CRP)
5. According to COA Cir. No. 2013 -002 dated January
30, 2013 adoption of the Revised Chart of Accounts for 12. It is a disbursement authority issued by DBM to
National Government Agencies the account code departments with overseas operations allowing them to
structure consists of how many mandatory digits? use income collected by their foreign posts to their
a. Three digits operating requirements
b. Four digits a. Notice of Cash Allocation (NCA)
c. Five digits b. Non- Cash Availment Authority (NCAA)
d. Eight digits c. Cash Disbursement Ceiling (CDC)
d. Cash Release Program (CRP)
6. The financial statements under NGAS include all except
a. Statement of income and expenses
13. It is the final step of the budget execution phase
b. Statement of operations
a. Allotment Release
c. Balance sheet
b. Cash Allocation
d. Cash flow statement
c. Disbursement
d. Accountability
7. Under NGAS which is false regarding purchase of
property and supplies?
14. As a general rule all collections of the government
a. Asset method is followed where purchase is
agency shall be remitted to the National Treasury and
recorded as asset
that shall be recorded in a separate agency books.
b. Depreciation accounting is followed
However there are revenues collected which the agency
c. Purchase are taken up as expense
has authority to use
d. Corollary entry is not used
a. National government books
b. Regular books of the agency
8. Upon approval and issuance of the Agency Budget
c. Special government books
Matrix (ABM) the pertinent data on release for each
d. Special books of the agency

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 lOMoARcPSD|31481729

UNIVERSITY OF PERPETUAL HELP SYSTEM DALTA

CALAMBA CAMPUS, BRGY. PACIANO RIZAL,
CALAMBA CITY, LAGUNA, PHILIPPINES

EDMUND E. HILARIO, CPA, MBA 2ND SEMESTER 2020 - 2921

===============================================================================================
15. The New government Accounting System must be 21. This budgeting approach engages the grassroots
comprehensive but flexible to ensure that the need of communities in designing the National Budget. It will
the users of information can be addressed in a way that focus on rural development programs and the
these will be understood even by those who have no conditional cash transfer program and will involve
technical knowledge of accountancy. These users several government agencies
include all except a. Bottom up approach
a. Public managers b. Performance Informed budgeting
b. Officials and employees of the agency c. GAA as budget release document
c. Taxpayers d. Balanced budgeting
d. None of the above
22. It is a budget release document that services as the
16. The following are the objectives of the New obligational authority replacing the Agency Budget
Government Accounting System which is not Matrix (ABM) for the comprehensive release of
a. Simplify government accounting Budgeting items appropriated in the GAA categorized as
b. Conform to International Accounting Standards “For Comprehensive Release”
(IAS) a. Special Allotment Release Order
c. Comply with the requirements of b. General Allotment Release Order
International Monetary Board c. FY 2014 General Appropriation Act (GAA)
d. Generate periodic and relevant financial reports for d. Disbursement Authority
better monitoring or performance
23. This account includes accountable forms and small
17. These are the three special accounts managed under tangible items such as punchers staplers staple
the general fund of a local government unit which of removers flash drives CDs plastic wares such as
the following is not a special account? monobloc chairs tables and the like
a. Loan interest bond issued and other contributions a. Office supplies inventory
b. Public utilities and other economic enterprises b. School supplies inventory
c. Barangay development fund c. Office equipment
d. Social economic fund d. Scholl equipment

18. It is a special fund of local government unit which is 24. Agency X received Maintenance and Other Operating
consist of the proceeds of one percent tax on the Expenses (MOOE) allotment directly from Department
assessed value of real property in addition to the basic of Budget and Management in the amount of
real property tax which a province or city or a P10,000,000 with Notice of Cash Allocation (NCA) of
municipality within the Metropolitan Manila Area may P6,000,000. Under the New Government Accounting
levy and collect System (NGAS) what is the journal entry to record the
a. Special Barangay development fund receipt of allotment?
b. Social economic fund
c. Special education fund a. National clearing account 10,000,000
-CDC
d. Trust fund Appropriation allotted 10,000,000
b. National clearing account – 10,000,000
19. One of the key elements of Unified Accounts Codes AA
Structure (UACS) is the funding Source Codes. Which of Appropriation allotted 10,000,000
the following is NOT part of Funding Source Codes? c. National clearing account 10,000,000
Appropriation allotted 10,000,000
a. Revised Chart of Accounts
d. Memo entry only in the
b. Financing Source registry
c. Authorization
d. Fund Category
25. Agency X received Maintenance and Other Operating
20. Organizational Codes is one of the key elements of Expenses (MOOE) allotment directly from Department
United Accounts Codes Structure (UACS). Which of the of Budget and Management in the amount of
following is not one of those reflected by this element? P10,000,000 with Notice of Cash Allocation (NCA) of
a. Department P6,000,000. Under the New Government Accounting
b. Agency System (NGAS) what is the journal entry to record the
c. Operating Unit receipt of Notice of Cash Allocation?
d. Government Owned and Controlled
Corporation a. CDC 6,000,000
Appropriation allotted 6,000,000

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 lOMoARcPSD|31481729

UNIVERSITY OF PERPETUAL HELP SYSTEM DALTA

CALAMBA CAMPUS, BRGY. PACIANO RIZAL,
CALAMBA CITY, LAGUNA, PHILIPPINES

EDMUND E. HILARIO, CPA, MBA 2ND SEMESTER 2020 - 2921

===============================================================================================
b. Cash -National Treasury 6,000,000 29. The department of Budget and Management
MDS Department of Finance Bureau of Treasury and
Appropriation allotted 6,000,000
Commission on Audit are collectively responsible for the
c. Cash –MDS regular 6,000,00
0 Unified Accounts Code Structure (UACS). Who is
Subsidy from National 6,000,000 responsible for the validation and assignment of new
Gov’t codes for funding source organization sub-object codes
d. Memo entry only in the for expenditure items?
registry
a. Department of Budget and Management
b. Department of Finance
26. The Department of Budget and Management ordinarily c. Bureau of Treasury
shall release the allotments and NCA of an agency at d. Commission on Audit
least five days before the start of fiscal year. Under the
new system this transaction must be recorded in the 30. The department of budget and Management
books of accounts except in the Department of Finance Bureau of Treasury and
a. Books of the agency Commission on Audit are collectively responsible for the
b. Books of Department of Budget and Management Unified Accounts Code Structure (UACS). Who is
c. Books of Bureau of Treasury responsible for the consistency of account classification
d. Books of Commission on Audit and coding structure with the Revised Chart of
Accounts
27. Agency ABC is a national government agency. During a. Department of Budget and Management
the year Agency ABC incurred obligation in the amount b. Department of Finance
of P5,000,000 of which P3,000,000 were for the c. Bureau of Finance
purchase of equipment. Under the new system what is d. Commission on Audit
the journal entry to record obligation incurred?
31. The regional office of Agency X received P500,000
a. Appropriation allotted 5,000,000 MOOE allotments directly from DBM with a
Obligation incurred 5,000,000
corresponding Notice of Cash Allocation (NCA) of the
Equipment – In transit 3,000,000
Invested surplus – 3,000,000 same amount. Under the new system what is the
purchase journal entry to record the allotment received in the
b. Appropriation allotted 5,000,000 books of the regional office?
Obligation incurred 5,000,000
Equipment – In transit 5,000,000 a. National clearing account -CDC 500,000
Invested surplus- 5,000,000 Appropriation allotted 500,000
purchase b. National clearing account – AA 500,000
c. Appropriation allocated 5,000,000 Appropriation allotted 500,000
Obligation incurred 5,000,000 c. National clearing account 500,000
d. Memo entry only in the Appropriation allotted 500,000
registry d. Memo entry only in the
registry

28. Bureau X acquired an equipment costing P100,000

which was appropriately recorded in Registry of 32. The regional office of Agency X received P500,000
Allotment and Obligations – Capital Outlay. Upon MOOE allotments directly from DBM with a
delivery a check was issued for payment and a ten corresponding Notice of Cash Allocation (NCA) of the
percent tax was withheld. What is the journal entry to same amount. Under the new system what is the
record this payment under the new system? journal entry to record the NCA received in the books of
the regional office?
a. Obligation liquidated 90,000
Cash – MDS Regular 90,000 a. CDC 500,000
b. Obligation liquidated 100,000 Appropriation allotted 500,000
Withholding tax payable 10,000 b. Cash –MDS Regular 500,000
Cash –MDS Regular 90,000 Appropriation allotted 500,000
Equipment –GPS 100,000 c. Cash –MDS regular 500,000
Equipment – In transit 100,000 Subsidy from National 500,000
c. Equipment 100,000 Gov’t
Cash –MDS Regular 90,000 d. Memo entry only in the
Obligation incurred 5,000,000 registry
Withholding tax payable 10,000
d. Memo entry only in the 33. The Philippine Public Sector Accounting Standard
registry
(PPSAS) shall be applied to the following except

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 lOMoARcPSD|31481729

UNIVERSITY OF PERPETUAL HELP SYSTEM DALTA

CALAMBA CAMPUS, BRGY. PACIANO RIZAL,
CALAMBA CITY, LAGUNA, PHILIPPINES

EDMUND E. HILARIO, CPA, MBA 2ND SEMESTER 2020 - 2921

===============================================================================================
a. National Government Agencies c. Maintenance and other operating expenses
b. Government Business Enterprises d. Financial expenses
c. Local Government Units
d. Government – Owned and/or Controlled 40. The following are kinds of budget according to nature
Corporations except
a. Annual budget
34. As prescribed by the constitution within how many b. Supplemental budget
days from the opening of every regular session the c. Special budget
President shall submit to Congress a budget of d. Line item budget
expenditures and sources of financing as the basis of
general appropriation bill? 41. As amended (per COA Circular NO.2007 – 001 dated
a. 90 days January 19, 2007) what is the journal entry to record
b. 60 days cash advances by Disbursing Officer for salaries and
c. 45 days wages?
d. 30 days
a. Advance for Payroll Xxx
35. The president may contract or guarantee foreign loans Cash – MDS Regular Xxx
on behalf of the Republic of the Philippines with the b. Cash – Disbursing officer Xxx
prior concurrence of Cash- National Treasury MDS Xxx
a. Monetary board c. Cash – Disbursing officer Xxx
b. Monetary board and subject to such Payroll fund Xxx
limitations as may be provided by law d. Payroll fund xxx
c. Congress of the Republic of the Philippines Cash – Disbursing officer Xxx
d. Supreme court and subject to such limitations as
may be provided by law 42. Bureau X a national government agency provides the
following information for the 1st quarter of a fiscal year
36. All appropriation revenue or tariff bulls authorizing cash advance by Disbursing Officer for salaries and
increase of the public debts bills of local application and wages – Casual P22,500 (net of P2,500 withholding
private bills shall be originate in the tax) as amended (Per COA Circular # 2007 – 001 dated
a. House of Representatives but the Senate may January 19, 2007 what is journal entry to record the
propose or concur with amendments liquidation of cash advance by Disbursing Officer?
b. Senate but the House of Representatives may
propose or concur with amendments a. Salaries and Wages – 25,000
c. Executive Department but Congress may propose Casual
and concur with Amendments Due BIR 2,500
d. Department of Budget and Management subject to Cash – Disbursing officer 22,500
the approval of the Commission on Audit b. Salaries and Wages – 22,500
Casual
37. It is a continuing appropriation for an indefinite period Due BIR 2,500
in excess of one fiscal year Cash – Disbursing officer 20,000
a. Annual appropriation c. Salaries and Wages – 25,000
b. Continuing appropriation Casual
c. Multi-year appropriation Due BIR 2,500
d. No- year appropriation Advance for Payroll 22,500
d. Memo entry only
38. It is the preparation of the national budget where the
total estimated revenue must be done more than the
total estimated expenditures 43. At the beginning of the 2nd quarter FY 2007 Agency
a. Balance budget ABC purchased for stock the following office supplies
b. Supplemental budget mini calculators mechanicals pencils, pens, staplers,
c. Zero base budget staple wire remover and punchers. This transaction was
d. Line item budget appropriately entered in the Registry of Allotments and
Obligations (RAO). A total amount of P11,350 was paid
39. The major classifications of expenses in government net of P1,250 withholding tax. Eventually office supplies
accounting include all of all the following except amounting to P3,100 were issued for office use. Per
a. Personal services COA Circular #2005 – 002 dated April 14, 2005
b. Capital outlay (Accounting policy on items with serviceable life of

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 lOMoARcPSD|31481729

UNIVERSITY OF PERPETUAL HELP SYSTEM DALTA

CALAMBA CAMPUS, BRGY. PACIANO RIZAL,
CALAMBA CITY, LAGUNA, PHILIPPINES

EDMUND E. HILARIO, CPA, MBA 2ND SEMESTER 2020 - 2921

===============================================================================================
more than one year but small enough to be considered b. Salaries and wages 20,000
property Plant and Equipment) and Revised Chart of Payroll fund 20,000
Account 2013 c. Salaries and wages 20,000
a) What is the journal entry to record the payment of Cash – national treasury 20,000
the purchase MDS
d No journal entry
a. Office supplies expenses 12,500 .
Due to BIR 1,250
Cash – MDS Regular 11,250
b. Office supplies expenses 12,500 47. Barangay JP Rizal received a copy of the General
Due to BIR 1,250 Appropriation Ordinance for the approved appropriation
Cash – MDS Regular 11,250 of an office equipment to be used exclusively in
c. Other Property Plant and 12,500 Sanggunian Kabataan office in the amount of P50,000
Equipment for the fiscal year 2012. In what registry shall this
Due to BIR 1,250 transaction be recorded?
Cash – MDS Regular 11,250 a. Registry of Appropriation and Commitment –
d. Memo entry only General Fund
b. Registry of Appropriation and Commitment –
General Fund (Maintenance and Other Operating
b) What is the journal entry to record issuance of Expenses)
office supplies? c. Registry of Appropriation and Commitment –
General Fund and (Capital Outlay)
a. Office supplies expenses 3,100
Office supplies inventory 3,100 d. Registry of Appropriation and Commitment –
b. Depreciation 3,100 Sanggunian Kabataan Fund
Accumulated depreciation – other 3,100
PPE 48. The Kagawad designated as Chairman of Committee
c. Office supplies expense 3,100 on Appropriations shall be responsible in monitoring the
Other Property Plant and 3,100
Equipment approved appropriations and the charges against the
d. Memo entry only following funds; General fund 20% Development Fund,
Calamity Fund Sanggunian Kabataan Fund and Gender
and Development Fund. How would the year end
44. Under the New Barangay Accounting System what is balance of appropriations for Sanggunian Kabataan
the basis of the approved? fund be treated?
a. Agency Budget Matrix (ABM) a. Shall be reverted to un-appropriated status
b. General Appropriation Act (GAA) b. Shall be transferred to General Fund
c. General Appropriation Ordinance (GAO) c. Shall be valid until fully spent or until the
d. General Allotment Release Order (GARO) planned activity is completed
d. Shall be classified as Savings
45. Under the New Barangay Accounting system recording
of barangay transactions shall be recorded in the books 49. The Notice of Cash Allocation (NCA) released
through Journal Entry Voucher (JEV) by comprehensively to Agency ABC on January 15, 2013
a. Barangay Treasurer as follows
b. Barangay Record Keeper
c. City/Municipal accountant January P2,000,000
d. Budget officer February 2,000,000
March 2,000,000
46. The barangay Pitong Gatang received a duly approved April 3,000,000
journal entry voucher (JEV) from the municipal May 6,000,000
accountant representing payroll of barangay officials of June 2,000,000
Pitong Gatang for the period January 1- 15, 2010. The
amount of P20,000 was paid by the barangay treasurer The balance of unutilized NCA for April is P500,000 and
What is the journal entry to be recorded by the May is P300,000. How much is the balance of Notice of
barangay recordkeeper in the books of Barangay Pitong Cash Allocation (NCA) to be reflected in the books of
Gatang for this payroll? Agency ABC at May 31, 2013?
a. 800,000
a. Salaries and wages 20,000 b. 500,000
Cash in bank – local 20,000 c. 300,000
currency d. 0

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 lOMoARcPSD|31481729

UNIVERSITY OF PERPETUAL HELP SYSTEM DALTA

CALAMBA CAMPUS, BRGY. PACIANO RIZAL,
CALAMBA CITY, LAGUNA, PHILIPPINES

EDMUND E. HILARIO, CPA, MBA 2ND SEMESTER 2020 - 2921

===============================================================================================
Number 53 to 56 are based on the following data
50. Location Codes is a nine digit code to reflect different
area following the Philippine Standard Geographic Code Department SS a National Government Agency (NGA)
prescribed by the National Statistical Coordination issued a purchase order for the purchase of office
Board which of the following area is not covered by the equipment costing P50,000. The Equipment was
Location Codes under UACS? delivered with the charge invoice and was paid by
a. Province check after withholding tax of 2%. Department SS
b. Municipality remitted the tax withheld thru Tax Remittance Advice
c. Barangay (TRA)
d. Street
53. What is the entry to record the receipt of the office
B. P. P. GUERRERO equipment?

51. Out of its total appropriation of P50,000,000 per a Office equipment 50,000
.
General Appropriation Act (GAA) for 2016 Agency AA Accounts Payable 50,000
received its allotment s broken down as follows b. Office equipment 50,000
Due to BIR 1,000
Cash – Modified Disbursement 49,000
Capital Outlay (CO) P20,000,000 System (MDS) Regular
Maintenance and Other Operating Expenses 10,000,000 c. Office equipment 50,000
(MOOE) Cash – MDS Check Disbursement 49,000
Personal Service (PS) 5,000,000 Due to BIR 1,000
Financial Expenses (FE) 1,000,000 d. Office equipment 49,000
Total P36,000,000 Accounts payable 49,000

Department of Budget and Managemen (DBM) issued 54. Department SS posted the obligation in the payable
Notice of cash Allocation (NCA) to agency AA to cover column of the
its cash requirement for current year appropriation in a. RAOD , Co
the amount of P25,000,000 b. Obligation Request and Status (ORS)
Agency AA records the receipt of allotment from the c. RAOD, MOOE
DBM in the d. RAOD, PS
a. Registry of Allotments Obligations and
Disbursements (RAOD) 55. What is the entry to record the payment of accounts
b. Registry of Allotments and Obligation (RAO) payable?
c. Registry of Special Allotment Release Order (SARO)
d. Registry of General Allotment Release Order a. Accounts payable 49,000
Cash – Modified Disbursement 49,000
(GARO)
System (MDS) regular
b. Accounts payable 50,000
52. What is the journal entry of Agency AA to record the Due to BIR 1,000
receipt of Notice of Cash Allocation (NCA) from DBM Cash – Check Disbursement 49,000
(Account code omitted)? Regular
c. Accounts payable 50,000
Due to BIR 1,000
a. Cash – National Treasury 25,000,000 Cash – Modified Disbursement 49,000
Regular System (MDS) Regular
Subsidy Income from 25,000,000 d. Accounts payable 50,000
National Gov’t Cash – Modified Disbursement 50,000
b. Subsidy from National 25,000,000 System (MDS) Regular
Government
Cash – Modified 25,000,000 56. What is the entry to record the remittance of the tax
Disbursement System withheld?
(MDS) Regular
c. Cash – Modified 25,000,000 a. Due to BIR 1,000
Disbursement System Subsidy from National Government 1,000
(MDS) Regular b. Due to BIR 1,000
Subsidy from 25,000,000 Cash- Modified Disbursement 1,000
National Government System (MDS) Regular
d. Notice of Cash Allocation 25,000,000 c. Due to BIR 1,000
DBM
Cash- Tax Remittance Advice 1,000
Subsidy from National 25,000,000 (TRA)
Government
d. Due to BIR 1,000
Cash – Check Disbursement 1,000

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 lOMoARcPSD|31481729

UNIVERSITY OF PERPETUAL HELP SYSTEM DALTA

CALAMBA CAMPUS, BRGY. PACIANO RIZAL,
CALAMBA CITY, LAGUNA, PHILIPPINES

EDMUND E. HILARIO, CPA, MBA 2ND SEMESTER 2020 - 2921

===============================================================================================
Regular Salaries and wages P280,000
Personnel Economic Relief 30,000
Allowances (PERA)
Number 57 to 58 Gross payroll P310,000
Less; Withholding tax P5,50
Cash advances were released to the head of the Agency 0
XX for travelling expenses to attend a convention in GSIS contribution 2,350
USA in the amount of P100,000 Pag Ibig contribution 2,150
Philhealth contribution 1,500 11,500
After the convention cash advances were liquidated and Net payroll P298,500
P5,000 is refunded representing excess cash advances The net payroll is advanced to a Disbursing Officer

57. What is the entry to record the advances granted? 60. What is the entry to record the liabilities to officers and
employee?

a. Advances to Officers and 100,00 a. Salaries and wages regular 280,000

Employees 0 Personnel economic relief 30,000
Cash – Modified 100,000 allowance (PERA)
Disbursement System (MDS) Due to BIR 5,500
Regular Due to GSIS 2,350
b. Cash – Collecting Officer 100,000 Due to Pag- Ibig 2,150
Advances to Officers and 100,000 Due to Philhealth 1,500
Employees Due to Officers and 298,500
c. Cash – Treasury/Agency Deposit 100,000 Employees
Cash – Collecting Officer 100,000 b. Salaries and wages regular 280,000
d. Advances to Officers and 100,000 Personnel economic relief 30,000
Employees allowance (PERA)
Cash – Collecting Officer 100,000 Due to BIR 5,500
Due to GSIS 2,350
58. What is the entry to record the liquidation of the cash Due to Pag- Ibig 2,150
advances? Due to Philhealth 1,500
Accounts payable 298,500
c. Salaries and wages 298,500
a. Travelling Expenses – Foreign 95,000 d. Due to Officers and 298,500
Employees
Advances to Officers and 95,000
Employees Posted to the payable column
of the ORS
b. Cash – Modified Disbursement 95,000
System (MDS) Regular
Advances to Officers and 95,000 61. What is the entry to record the grant of cash advance
Employees for the payroll?
c. Travelling Expenses – Foreign 95,000
Cash – Collecting Officer 95,000
d. Memo Entry in the RAOD -MOOE a. Cash – Disbursing Officer 298,500
Cash – Check Disbursements 298,500
59. What is the entry to record the receipt of the refund? b. Advances for payroll 298,500
Cash – Modified 298,500
a. Cash – Collecting Officer 5,000 Disbursement System
Advances to Officers and 5,000 (MDS) Regular
c. Cash – Disbursing Officer 298,500
Employees
Cash – Modified Disbursement 298,500
b. Cash – Collecting Officer 5,000 System (MDS) Regular
Travelling Expenses – Foreign 5,000 d. Posted to the ROAD
c. Cash – Treasury Agency 5,000
Deposit 62. What is the entry to record the liquidation of the
Advances to Officers and 5,000 payroll?
Employees
d. Memo Entry in the ORS a. Due to Officers and Employees 298,500
Cash – Disbursing Officer 298,500
b. Due to Officers and 298,500
60 to 62 are based on the following data Employees
Advances for payroll 298,500
Agency MM prepares the following payroll for the month c. Advances for payroll 298,500
of June 2016 Cash – Modified Disbursement 298,500
System (MDS) regular
d. Posted to the Disbursement

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 lOMoARcPSD|31481729

UNIVERSITY OF PERPETUAL HELP SYSTEM DALTA

CALAMBA CAMPUS, BRGY. PACIANO RIZAL,
CALAMBA CITY, LAGUNA, PHILIPPINES

EDMUND E. HILARIO, CPA, MBA 2ND SEMESTER 2020 - 2921

===============================================================================================
Column of the ORS Petty Cash 500
d. Posted in the Receipt Column
Question 63 to 65 are based on the following data of the ROAD
Petty Cash Fund (PCF) was established for estimated
expenses of P20,000 66. Entity XX is authorized to print accounting manuals for
The Petty Cash Fund was replenished for the following sale to other NGs. On June 18, 2016, Entity XX sold
expenses accounting manuals on account with a list price of
P100,000 less trade discounts of 10%, 10% and 5%
Travelling Expenses – Local P9,500 What is the entry to record the sale of the accounting
Office Supplies Expenses 7,000 manuals?
Other Maintenance and Operating Expenses 3,000
Total P19,500 a. Accounts Receivable 90,000
Sales Revenue 90,000
The unused PCF was returned based on the Official b. Accounts Receivable 76,950
Receipt (ORT) Office Supplies 76,950
c. Accounts Receivable 76,950
Sales Revenue 76,950
d. Accounts Receivable 81,000
63. What is the entry to record the establishment of PCF?
Sales Revenue 81,000
a. Petty Cash 20,000 Solution
Cash – Modified 20,000
Disbursement System (MDS) List Price P100,000
Regular Less; 10% x 100,000 10,000
b. Petty Cash 20,000 90,000
Cash – National Treasury – 20,000 Less; 10% x 90,000 9,000
MDS
81,000
c. Petty Cash Fund 20,000
Cash – Modified Disbursement 20,000 Less; 5% x 81,000 4,050
System (MDS) Special Net sales price P76,950
d. Record and post to the
disbursement column of ORS
67. On August 5, 2016 Entity YY received a 60 day 9%
64. What is the entry to record the replenishment of the P12,000 promissory note from entity ZZ for accounting
PCF. manuals sold. On October 4, 2016 Entity ZZ paid cash
in settlement of its note
a. Travelling Expenses – Local 9,500 What is the entry to record the collection of notes
Office Supplies Expenses 7,000
receivables?
Other Maintenance and 3,000
Operating Expenses
Cash – Modified 19,500 a. Cash – Collecting Officer 12,180
Disbursement System (MDS) Sales Revenue 12,180
Regular b Cash – Collecting Officer 12,180
b. Travelling Expenses - Local 9,500 .
Office Supplies Expenses 7,000 Notes Receivable 12,000
Other Maintenance and Operating 3,000 Interest Income 180
Expense
c. Cash – Collecting Officer 12,000
Petty Cash Fund 19,500
c. PCF 19,500 Notes Receivable 12,000
Cash – Modified disbursement 19,500 d. Cash – Collecting Officer 12,180
System (MDS) Regular Interest Income 180
d. Posted in the Disbursement Sales Revenue 12,000
Column of the RAOD

65. What is the entry to record the return of unused PCF

Note receivable P12,000 and interest income account
for P180 (P12,000 x 9% x 60/360)
a. Cash – Collecting Officer 500
Petty Cash 500
68. Department BB received Notice of Cash Allocation
b. Cash – Collecting Officer 500
(NCA) from DBM P100,000 to cover the maximum
Cash – Disbursing Officer 500
amount of withdrawal that an entity can make from a
c. Cash – Modified Disbursement 500
government bank for the period indicated
System (MDS) Regular
Assuming the NCA is for Regular Agency Fund

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 lOMoARcPSD|31481729

UNIVERSITY OF PERPETUAL HELP SYSTEM DALTA

CALAMBA CAMPUS, BRGY. PACIANO RIZAL,
CALAMBA CITY, LAGUNA, PHILIPPINES

EDMUND E. HILARIO, CPA, MBA 2ND SEMESTER 2020 - 2921

===============================================================================================
What is the entry to record the receipt of the NCA Total P1,250,000

Cash disbursements during the year amounted to

a Cash – Modified 100,000 P1,100,000
. Disbursement System (MDS)
What adjustment is made for the unused NCA at the
Regular
Subsidy from National 100,000 end of the year?
Government
b. Cash – Modified Disbursement 100,000 a. Subsidy from National 150,000
System (MDS) Regular Government
National Clearing Account 100,000 Cash – Modified Disbursement 150,000
c. Cash – Collecting Officer 100,000 System
Notice of Cash Allocation 100,000 b. Subsidy from National 125,000
Government
d. Cash – Collecting Officer 100,000
Cash – Modified Disbursement 125,000
Subsidy from National 100,000
System (MDS) Regular
Government
c. Cash – Modified Disbursement 125,000
System (MDS) Regular
69. Using the data in No.68 but assuming that the release Subsidy from National 125,000
of NCA is for Special Account Government
What is the entry to record of the NCA d. Subsidy from National 75,000
Government
Cash – Modified 75,000
Disbursement System (MDS)
a. Cash – Modified Disbursement 100,000 Regular
System (MDS) Special Account
Subsidy from National 100,000
Solution
Government
b. Cash – Modified 100,000
Disbursement System (MDS) NCA received for current year’s 1,150,000
Special Account appropriation
Cash – Treasury/Agency 100,000 NCA received for prior year’s accounts 25,000
Deposit payable
Special account 100,000 Total 1,175,000
c. Cash – Collecting Officer 100,000 Total payments 1,100,000
Cash – Treasury/Account 100,000
Unused NCA 75,000
Deposit
Special account 100,000
d. Cash – Collecting Officer 100,000 72. On February 1, 2016 Entity ZZ an agency of the
Subsidy from National 100,000 National Government awarded a contract to ABC Inc. to
Government construct a building intended to earn rent income .
Contract price is P22,400,000 inclusive of VAT payable
70. Using the data in No.68 but assuming that the release on two progress billings. Advance payment to
of NCA is for Trust Receipt Fund (TRF) contractor price as mobilization fee while retention fee
is 10% of the progress billing.
a. Cash – Modified Disbursement 100,000
System (MDS) trust On May 1, 2016 entity ZZ paid the first billing of 50%
Subsidy from National 100,000 of the contract less the retention fee and withholding
Government tax of 700,000
b. Cash – Modified Disbursement 100,000 On September 2 Entity ZZ received and paid the final
System (MDS) trust
billing less the retention fee and withholding tax of
Cash – Treasury/Agency 100,000
Deposit Trust 700,000
c. Cash – Collecting Officer 100,000 What is the entity in the books of Entity ZZ to record
Cash – Treasury/agency 100,000 the payment f 15% mobilization fee?
Deposit Trust
d. Cash – Collecting Officer 100,000 a. Advances to Contractors 3,360,000
Notice of Cash Allocation 100,000 Cash- Modified 3,360,000
Disbursement System
71. During the year 2016 Agency MM received the (MDS) Regular
b. Accounts payable 3,360,000
following National Clearing Account (NCA)
Cash – Moodifed 3,360,000
Disbursement System
(MDS) Regular
Constructive receipt of NCA for P75,000 c. Mobilization Fee 3,360,000
withholding taxes Cash – Modified 3,360,000
For current year’s appropriation 1,150,000 Disbursement System
For prior year’s accounts payable 25,000 (MDS) Regular

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 lOMoARcPSD|31481729

UNIVERSITY OF PERPETUAL HELP SYSTEM DALTA

CALAMBA CAMPUS, BRGY. PACIANO RIZAL,
CALAMBA CITY, LAGUNA, PHILIPPINES

EDMUND E. HILARIO, CPA, MBA 2ND SEMESTER 2020 - 2921

===============================================================================================
d. Advances to Contractor 3,360,000 Subsidy from National Government 500,650
Cash – Disbursing Officer 3,360,000 Cash – Treasury/Agency Deposit Regular 750,000
Travel Tax 65,000
73. Using the data in No.72 what is the entry to record the Immigration Tax 125,000
1st progress billing? Permit Fees 150,000
Registration Fees 15,500
a. Construction in progress – 11,200,000 Other Business Income 25,000
Building and other Other service Income 50,500
Structures
Salaries and wages Regular 165,500
Advances to Contractor 3,360,000
Due to BIR 700,000
PERA 15,500
Guaranty – Security 1,120,000 Travelling Expenses – Local 10,000
Deposits payable Travelling Expenses – Foreign 55,000
Cash- Modified 6,020,000 Office Supplies Expenses 25,000
Disbursement System Water Expenses 11,000
(MDS) Regular
Security Services 18,000
b. Construction in 11,200,000
Progress – Building
Advances to contractor 3,360,000 What is the balance of the Accumulated Surplus
Accounts payable 7,840,000 (Deficit) End to be presented in the Statement of
c. Construction in Progress – 11,200,000 Financial Position as of December 31, 2016?
Building a. 131,650
Guaranty – Security 1,120,000
Deposits Payable
b. 631,650
Accounts payable 10,080,000 c. (131,650)
d. Construction in Progress – 11,200,000 d. (631,650)
Building and other
Structures Solution
Account Payable 11,200
Accumulated Surplus (Deficit) 250,000
74. Using the data in No.72 assume that the final building beginning
Add; Revenue
was paid for the balance of the contract price less the
Travel Tax 65,000
retention fee and required withholding tax Immigration Tax 125,000
What is the entry to recognize the payment of the final Permit Fees 150,000
billing? Registration Fees 15,000
Other Business Income 25,000
a Accounts payable 11,200,000 Other Service Income 50,000 431,000
. Subsidy from National Government 500,650
Guaranty – Security 1,120,000 Total 1,181,650
Deposit payable Less; Expenses
Due to BIR 700,000 Salaries and Wages Regular 165,500
Cash – Modified 9,380,000 PERA 15,500
Disbursement system Travelling Expenses – Local 10,000
(MDS) Regular Travelling Expenses – Foreign 55,000
b. Account payable 11,200,000 Office Supplies Expenses 25,000
Cash – Modified 11,200,000 Water Expenses 11,000
Disbursement System Security Expenses 18,000
c. Construction in Progress – 11,200,000 300,000
Buildings
Cash – Treasury/Agency Deposit 750,000 1,050,000
Advances to Contractor 1,680,000 Regular
Due to BIR 700,000 Accumulated Surplus (Deficit) End 131,650
Cash – Modified 8,820,000
Disbursement System
(MDS) Regular
d. Investment Property 22,400,000 C. A.J. DAYAG
Building 1) Agency AAA received the following allotment for year
Cash – Modified 22,400,000 2018.
Disbursement System
(MDS) Regular
Capital outlay P50,000,000
Maintenance & other operating
75. The following accounts with their corresponding
expenses 10,000,000
balances before closing were taken from the accounting Personal services 5,000,000
records of Agency JJ on December 31, 2016 Financial expenses 100,000
Total P65,100,000
Accumulated Surplus (Deficit) Beginning 250,000

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 lOMoARcPSD|31481729

UNIVERSITY OF PERPETUAL HELP SYSTEM DALTA

CALAMBA CAMPUS, BRGY. PACIANO RIZAL,
CALAMBA CITY, LAGUNA, PHILIPPINES

EDMUND E. HILARIO, CPA, MBA 2ND SEMESTER 2020 - 2921

===============================================================================================
Net Amount P280,000
The entry to record the above allotment would be:
a) No entry The entry to record the above transaction would be
b) Memo entry in Registry of Allotments & a. Obligations Liquidated 370,000
obligations Advances to Special 280,000
c) National Clearing Account P65,100,000 Disbursing Officer
Due to National 60,000
Appropriations Alloted P65,100,000
Government Agency
d) Cash-modified disbursement
Due to GSIS 24,000
system – Regular P65,100,000
Due to PhilHealth 6,000
Subsidy Income National
b. Salaries etc. 370,000
Government P65,100,000
Withholding tax payable 60,000
Advances to Special 310,000
2) Agency BBB received Notice of Cash Allocation (NCA) – Disbursing Officer
P45,000,000 for the year 2011 the entry would be c. Salaries and Wages – 300,00
a) No entry Regular Pay 0
b) Memorandum entry in Registry of Allotments PERA 70,000
c) National Clearing Account 65,100,000 Advances for Payroll 280,000
Appropriations Alloted 65,100,000 Due to BIR 60,000
d) Cash – Modified Disbursement Due to GSIS 20,000
System – Regular 65,100,000 Due to Pag-Ibig 4,000
Subsidy Income National Due to PhilHealth 6,000
Government d. No required
65,100,000
3) Agency CCC had obligation for Personnel Services (PS) 6) using the information no.5 the entry to record the
amounting to P300,000 for the month of February the remittance of withholding tax; (with Tax Remittance
entry would be Advice)
a) No entry a) Due to BIR 60,000
b) Memorandum entry in Registry of Allotment Cash – MDS – Regular 60,000
and Obligations for PS (RAOPS) b) Due to BIR 60,000
c) Appropriations Alloted 300,000 Advances to Special Disbursing officer 60,000
Obligations Incurred 300,000 c) Due to BIR 60,000
d) Advance to Special Due to National Government 60,000
Disbursing Officer 300,000 d) Due to BIR 60,000
Cash –MDS Regular 300,000 Subsidy from National Government
60,000
4) Agency DDD was granted cash advances for payroll
amounting to P280,000 the entry would be 7) Using the same information in no.5 and 6 the entry to
a) No entry record the remittance of Other Salary deductions
b) Memorandum entry in RAOPS a) Due to Pag Ibig 4,000
c) Advances for Payroll 280,000 Due to GSIS 20,000
Cash – MDS - Regular Due to PhilHealth 6,000
280,000 Cash – MDS – Regular 30,000
d) Advance to Special b) Withholding tax payable 60,000
Disbursing Officer 280,000 Cash – MDS – Regular 60,000
Due from National Government 280,000 c) Due to National Government Agency 30,000
Cash – MDS – Regular 30,000
5) Using the same information in no.4 Agency DDD paid d) No entry required
salaries and other allowances
Salaries P300,000 8) Agency EEE’s share in relation to salary deductions
PERA (Personnel Economic 70,000 were as follows
Relief Allowance) Life and retirement P30,000
Total P370,000 PhilHealth 20,000
Less; Salary deductions Pag –Ibig 10,000
Withholding tax P60,000 P60,000
Life and Retirement 20,000 The entry to record the incurrence of agency
Pag- Ibig 4,000 a. GSIS Payable 30,000
PhilHealth 6,000 90,000 PhilHealth Payable 20,000

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 lOMoARcPSD|31481729

UNIVERSITY OF PERPETUAL HELP SYSTEM DALTA

CALAMBA CAMPUS, BRGY. PACIANO RIZAL,
CALAMBA CITY, LAGUNA, PHILIPPINES

EDMUND E. HILARIO, CPA, MBA 2ND SEMESTER 2020 - 2921

===============================================================================================
Pag Ibig Payable 10,000 c) Spare Parts Inventory 10,000
Cash - MDS – Regular 60,000 Due from Suppliers 10,000
b. Life and Retirement 30,000 d) Memorandum entry only
Contribution
PhilHealth Contribution 20,000 13) Agency III establish a petty cash fund for Maintenance
Pag – Ibig Contribution 10,000 and Other Operating expenses (MOOE) amounting to
Due to NGA 60,000 P10,000. The entry for this transaction would be
c. Due to National Government 60,000 a) No entry
Agency b) Memorandum entry
Cash – MDS – Regular 60,000 c) Petty Cash 10,000
d. Life and Retirement 30,000 Cash – MDS - Regular
Contribution Expense 10,000
PhilHealth Contribution 20,000 d) Petty Cash 10,000
Expense
Advance to Special
Pag Ibig Contribution 10,000
Disbursing Officer 10,000
Expense
Due to GSIS 30,000
14) using the information in n0.13 Agency III received a
Due to PhilHealth 20,000
request for replenishment of petty cash fund for the
Due to PagIbig 10,000
following expenses
9) Agency FF’s obligation of rent for three years (3)
amounted to P90,000. The entry record this transaction Office Supplies P500
would be Transaction fares
a) Rent Expenses 90,000 100
Cash – MDS – Regular 90,000 Repair of air con 200
b) Prepaid Rent 90,000 JRS mail 160
Cash – MDS – Regular 90,000 Total P960
c) Rent Expense 30,000
Prepaid Rent 30,000 The entry for this transaction would be
d) Memorandum in RAOMO a) No entry
b) Memorandum entry to the RAOMO
c) Office Supplies Expense 500
10) Using the same information in no.9 Agency FF paid rent
Travelling expense 100
for three (3) years P90,000. the entry for this
Repairs and Maintenance 200
transaction would be
Other Maintenance and Operating Expense 160
a) Rent Expenses 90,000
Cash – MDS – Regular 960
Cash – MDS – Regular 90,000
d) Office Supplies Expense 500
b) Prepaid Rent 90,000
Travelling expense 100
Cash – MDS – Regular 90,000
Repairs and Maintenance 200
c) Rent Expense 30,000
Other Maintenance and Operating Expense 160
Prepaid Rent 30,000
Petty Cash 960
d) Memorandum in RAOMO
15) using the no.13 the entry to record the replenishment
11) Agency GGG paid Meralco bill amounting to P40,000
of the petty cash fund is
the entry to record this transaction would be
a) No entry
a) Electricity Expenses 40,000
b) Memorandum entry to the RAOMO
Cash – MDS – Regular 40,000
c) Office Supplies Expense 500
b) Electricity Expenses 40,000
Travelling expense 100
Accounts payable 40,000
Repairs and Maintenance 200
c) Memorandum entry only
Other Maintenance and Operating Expense
d) No entry required
160
Cash – MDS – Regular
12) Agency HHH received spare parts amounting to
960
P10,000 and set up liability. The entry for this
d) Office Supplies Expense 500
transaction would be
Travelling expense 100
a) Spare Parts Expense 10,000
Repairs and Maintenance 200
Accounts Payable 10,000
Other Maintenance and Operating Expense 160
b) Spare Parts Inventory 10,000
Petty Cash 960
Accounts Payable 10,000

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 lOMoARcPSD|31481729

UNIVERSITY OF PERPETUAL HELP SYSTEM DALTA

CALAMBA CAMPUS, BRGY. PACIANO RIZAL,
CALAMBA CITY, LAGUNA, PHILIPPINES

EDMUND E. HILARIO, CPA, MBA 2ND SEMESTER 2020 - 2921

===============================================================================================
full. The entry to record this transaction would be
16) Agency JJJ grants cash advance to Mr. Ube for traveling (ignore tax implication)
expense amount to P12,000. The entry for cash a) Obligation Liquidated 200,000
advance would be Cash Treasury Account
a) Advances to Special Disbursing Officer 12,000 Check Disb. 200,000
Cash – MDS – Regular 12,000 b) Subsidy from National Gov’t 200,000
b) Cash – Collecting Officer 12,000 Cash – MDS- Regular 200,000
Cash – MDS – Regular 12,000 c) Account payable 200,000
c) Travel Expense 12,000 Cash – MDS – Regular 200,000
Cash – MDS – Regular 12,000 d) Memorandum entry in RAOCO
d) Advances to Officers & Employees 12,000
Cash – MDS – Regular 21) Agency LLL have obligation for information Technology
12,000 (IT) Software from Microsoft Great Plains Solutions
amounting to P120,000. The entry for this transaction
17) Using the information in no.14 Mr. Ube presented would be
certificates of appearance for the travel completed a) Obligations incurred 120,000
along with the necessary documents to support the Appropriation Alloted 120,000
travel expenses P10,000 Mr. Ube refunded the agency b) Information and Communication
for the excess. The entry for these transactions would Technology Eqpt. 120,000
be Account Payable 120,000
a) Travelling expenses 10,000 c) Information and Communication
Cash Collecting Officer 2,000 d) Technology Eqpt. 120,000
Advances to Officer and Employees Cash – MDS – Regular 120,000
12,000 e) memorandum entry in RAOCO
b) Cash collecting officer 2,000
Traveling expenses 2,000 22) Using the same information in no.21 Agency LLL
c) Cash – MDS – Regular 2,000 received the IT Software based in invoice/ delivery
Traveling expenses 2,000 receipt. The entry for this transaction would be (ignore
d) Traveling expenses 10,000 tax implication)
Cash – MDS – Regular 2,000 a) Memorandum entry in RAOCO
Due from officers and employees 12,000 b) Information and Communication
18) Agency KKK have an obligation for equipment per Technology Eqpt. 120,000
purchase order amounting to P200,000. The entry for Cash – MDS – Regular 120,000
this transaction would be c) Information and Communication
a) Office Equipment 200,000 Technology Eqpt. 120,000
Accounts Payable 200,000 Account payable 120,000
b) Office Equipment 200,000 d) Information and Communication
Cash – MDS – Regular 200,000 Technology Eqpt. 120,000
c) Office Equipment 200,000 Subsidy from Nat’l Government 120,000
Subsidy from National Government 200,000
d) Memorandum entry in RAOCO 23) Using the same information in no.21 and no.22 Agency
LLL paid the IT Software to MS Great Plains in full. The
19) Using the same information in no.18 Agency KKK entry to record this transaction would be (ignore tax
received the office equipment based on invoice/delivery implication)
receipt. The entry for this transaction would be (ignore a) Obligations Liquidated 120,000
tax implication) Cash Treasury Account
a) Office Equipment 200,000 Check Dib. 120,000
Accounts Payable 200,000 b) Account payable 120,000
b) Office Equipment 200,000 Cash – MDS - Regular 120,000
Cash – MDS – Regular 200,000 c) Subsidy from Nat’l Government 120,000
c) Office Equipment 200,000 Cash – MDS – Regular 120,000
Subsidy from National Government 200,000 d) memorandum entry in RAOCO
d) Memorandum entry in RAOCO
24) Using the same information no.23 Agency LLL
20) Using the same information in No. 18 and No.19 cancelled the check issued to MS Great plains within
Agency KKK liquidates the office equipment acquired in the year of issue. the entry to record this transaction
would be

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 lOMoARcPSD|31481729

UNIVERSITY OF PERPETUAL HELP SYSTEM DALTA

CALAMBA CAMPUS, BRGY. PACIANO RIZAL,
CALAMBA CITY, LAGUNA, PHILIPPINES

EDMUND E. HILARIO, CPA, MBA 2ND SEMESTER 2020 - 2921

===============================================================================================
a) Cash – MDS – Regular 120,000
Obligations Liquidated 120,000
b) Cash – MDS - Regular 120,000
Subsidy from Nat’l Government 120,000

c) Cash – MDS – Regular 120,000

Account payable
120,000
d) memorandum entry in RAOCO

25) Agency MMM have an obligation for building upon

signing of contract amounting to P10,000,000.The
entry to record this transaction would be
a) No entry
b) Memorandum entry in RAOCO
c) Appropriations Alloted 10,000,000
Obligations Incurred 10,000,000
d) Buildings 10,000,000
Accounts Payable 10,000,000

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