EXERCISE 3

01276

Bank of the Philippine Island

 EXERCISE 2

1. Eagle Repairs received P1,500 from Jane. The bookkeeper recorded the amount as P500.

Answer: Book. P1,000 will be added to the books.

2. Nation Bank collected from the customer of Eagle the sum of P5,000 representing payment of the

said customer to Eagle. No entry was made in the books of Eagle.

Answer: Book. P5,000 will be added to the books.

3. The bank teller deducted CK 123 for P3,500 from the account of Eagle. The said check was issued

by Egles Company a different depositor of the bank.

Answer: Bank. P3,500 will be added to bank records. Hint: The teller had deducted the amount to

the account of eagle which should not be, thus the amount is returned or added.

4. The bookkeeper of Eagle recorded Check No. 345 in the Cash Disbursement Journal as P5,205.

The correct amount of the check was P5,250.

Answer: Book. P45 will be deducted in the book records. The bookkeeper should have deducted

P5,250 deductions to cash however he deducted P5,205 only, thus the difference should be

deducted.

5. The deposits of Eagle earned interest of P100 for the month. Eagle does not have knowledge of

interest earned until it receives the bank statement.

Answer: Book. P100 is added to the book records. Interest income will increase the cash in bank of Eagle
 EXERCISE 3

SET B SET A

b. Official Receipts and Sales

1. Required to be serially numbered invoices

2. Kept by all corporations, partnerships, and /or persons required c. Books of Account

by law to pay internal revenue taxes

b. Official Receipts and Sales

3. All persons or entities subject to internal revenue taxes issue invoices

these documents for transaction, P25 or over

4. Indicated on all returns, statements , documents filed with a. TIN – Tax Identification Number

Internal Revenue by persons and entities

5. Usually brought to the BIR for stamping prior to use c. Books of Account

b. Official Receipts and Sales

6. Regardless of the amount of the transaction, or be issued by invoices

VAT-liable persons or entities

7. Preserved for a period of ten years as required the BIR c. Books of Account

b. Official Receipts and Sales

8. BIR authority is needed before these are printed invoices

9. Written on documents of transactions with BIR a. TIN – Tax Identification Number

10. Issued as the income transaction is effected a. TIN – Tax Identification Number