AEC 34 – ACB Assignment: Module 3

Problem 3-1.TRUE OR FALSE.

TRUE 1. Technically, only the Journals and Ledgers are considered accounting records; the Registries are
budget records.

TRUE 2. Separate accounting records and budget registries are maintained for each fund cluster.

FALSE 3. Government entities and business entities use the terms “obligation” or the phrase “incurrence
of obligation” similarly. *differently

TRUE 4. The various registries maintained by government entities primarily serve as internal control for
controlling and monitoring the conformance of actual results with the approved budget.

TRUE 5. A check disbursement Is normally recorded as a credit to the “Cash-Modified Disbursement

System (MDS), Regular” account.

TRUE 6. Both the ORS and RAODR updated each time an obligation is incurred, a payable is recorded for
the obligation incurred, and disbursements are made to settle the recorded payables.

TRUE 7. At the end of each year, an adjustment is made to revert any unused NCA of a government
entity.

FALSE 8. The GAM for NGAs requires the Collecting Officer to issue an official receipt to acknowledge the
receipt of the Notice of Cash Allocation. *not to issue

TRUE 9. The entry to record the reversion of unused NCA at the end of the period is the exact opposite
of the entry used to record the receipt of NCA.

FALSE 10. The remittance of amounts withheld to the other government agencies such as the BIR, BOC,
GSIS, PhilHealth, and Pag-IBIG, is done through the TRA. *ORS and RAOD-PS

PROBLEM 3-7: WORKSHEET PREPARATION

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 ₱500,000.

b. Received allotment of ₱450,000.
c. Incurred obligations amounting to ₱440,000.
d. Received Notice of Cash Allocation of ₱430,000.
e. Accrued ₱80,000 salaries through granting, and liquidation, of cash advance. The breakdown of the
salaries is as follows:

Salaries and Wages 70,000

Personal Economic Relief Allowance (PERA) 10,000
Gross Compensation 80,000

Withholding Tax 18,000

 GSIS 4,000
Pag-IBIG 1,000
PhilHealth 2,000
Total Salary Deductions 25,000

f. Received delivery off purchased office equipment Where is ₱200,000. 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,
20X1.
g. Paid the accounts payable from the purchase of equipment in (f) above. Taxes withheld amount to
₱12,000.
h. Received delivery of purchased office supplies worth ₱100,000. The office supplies were purchased
through check. Taxes withheld amount to ₱5,000.
i. Issued office supplies worth ₱90,000 to end users.
j. Granted ₱20,000 cash advance to an employee for travelling expenses on an official local travel.
The employee liquidated ₱17,000 and remitted the excess cash advance.
k. Collected unbilled service income for Permit Fees of ₱40,000 and remitted ₱30,000 of the total
collection.
l. Paid water and electricity expenses amounting to ₱5,000 and ₱10,000, respectively. Taxes
withheld amount to ₱2,000.
m. Remitted the taxes withheld to the BIR.
n. Remitted contributions to GSIS, PhilHealth, and Pag-IBIG.

Requirements:

a. Record the transactions and events above. If no journal entry is needed, state the registry or other
documents 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 a complete worksheet showing columns for a post-closing trial balance.
f. Prepare the closing entries.