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Section:
ACCO 30033: Accounting for Government and Non-Profit Organizations

Module 2: Exercises
Exercise 1: A government agency had the following transactions during the month:

1. Established petty cash fund, P100,000.

2. Replenishment of the petty cash fund:
Office Supplies Expense, P40,000
Travelling Expenses-Local, 30,000
Representation Expenses, P10,000
3. Bill received from MERALCO, P112,000.
4. PLDT bill, P44,800.
5. Payment of PLDT bill, net of appropriate government tax.
6. Payment of MERALCO bill, net of appropriate of government tax.
7. Signing of the contract for the rental of office space with 6 months advance
payment of P134,400.
8. Issued special order for the attendance to seminar, fee of P5,000.
9. Payment of the seminar fee.
10. Receipt of liquidation report with Certificate of Attendance for advances to
seminar.
11. Approval of itinerary of local travel, P30,000.
12. Payment of per diems and allowances related with the local travel, P30,000.
13. Liquidation of cash advance for travel.
14. Issuance of PO to dealer of office equipment, P35,000
15. Receipt of office equipment with charge invoice.
16. Payment of the delivered equipment, net of appropriate government tax.
17. Obligation for ICT Equipment per Purchase order, P100,000.
18. Payment to Procurement Service for IT equipment.
19. Receipt of IT Equipment based on Invoice/Delivery Receipt.

Required: Journalize the above transactions.

DATE DESCRIPTION UACS

1 Petty Cash Fund 10101020
Cash – MDS, Regular 10104040
To record the establishment of petty cash fund.
 2 Office Supplies Expense 50203010
Travelling Expenses – Local 50201010
Representation Expenses 50299030
Cash – MDS, Regular 10104040
To record the replenishment of petty cash fund.

DATE DESCRIPTION UACS

3 Electricity Expense 50204020
Accounts Payable 20101010
To record incurred electricity expense from MERALCO.

4 Telephone Expense 50205020

Accounts Payable 20101010
To record incurred telephone expense from PLDT.

5 Accounts Payable 20101010

Due to BIR 20201010
Cash – MDS, Regular 10104040
To record payment of PLDT bill.

6 Accounts Payable 20101010

Due to BIR 20201010
Cash – MDS, Regular 10104040
To record payment of MERALCO bill.

7 Prepaid Rent 19902020

Due to BIR 20201010
Cash – MDS, Regular 10104040
To record advance payment for rent for 6 months.

8 NO ENTRY

9 Advances to Officers and Employees 19902010

Cash – MDS, Regular 10104040
To record the payment of seminar fee

10 Training Expenses 50202010

Advances to Officers and Employees 19902010
To record the liquidation of cash advance to employees.

11 NO ENTRY

12 Advances to Officers and Employees 19902010

 Cash – MDS, Regular 10104040
To record payment of per diems and allowances related
with local travel.

13 Travelling Expenses – Local 50201010

Advances to Officers and Employees 19902010
To record the liquidation of cash advance to employees.

14 NO ENTRY

15 Office Equipment 10605020

Accounts Payable 20101010
To record receipt of office equipment.

DATE DESCRIPTION UACS

16 Accounts Payable 20101010
Due to BIR 20201010
Cash – MDS, Regular 10104040
To record payment of office equipment.

17 Due from National Government Agencies 10303010

Accounts Payable 20101010
To record obligation for purchased ICT equipment.

18 Accounts Payable 20101010

Due to BIR
Cash – MDS, Regular 10104040
To record advance payment to procurement services for
ICT equipment.

19 Information and Communications Technology Equipment 10605030

Due from National Government Agencies 10303010
To record receipt of ICT equipment.

Exercise 2: A national government agency had the following transactions relating

with inventories and fixed assets:

1. Issued PO for spare parts, P20,000.

2. Receipt of spare parts.
3. Payment of liability for spare parts, net of appropriate government tax.
4. Signed a contract for construction of building, P5,600,000.
5. Payment of 15% mobilization fee to contractor of buildings.
6. Receipt of 1st progress billing-50% completion.
7. Payment of 1st progress billing, net of advances and tax.
8. Receipt of final billing100% completion.
 3. Payment of liability for spare parts, net of appropriate government tax.
4. Signed a contract for construction of building, P5,600,000.
5. Payment of 15% mobilization fee to contractor of buildings.
6. Receipt of 1st progress billing-50% completion.
7. Payment of 1st progress billing, net of advances and tax.
8. Receipt of final billing100% completion.
9. Final payment for building, net of tax.
10. Turnover and acceptance of building.
11. Depreciation for the building, 20 years estimated life. (6 months)

Required: Journalize the above transactions.

DATE DESCRIPTION UACS

1 NO ENTRY

2 Spare Parts
Accounts Payable 20101010
To record the receipt of spare parts.

3 Accounts Payable 20101010

Due to BIR 20201010
Cash - MDS, Regular 10104040
To record payment of spare parts purchased.

DATE DESCRIPTION UACS

4 NO ENTRY

5 Advances to Contractors 19902010

Cash - MDS, Regular 10104040
To record advance payment of mobilization fee.

6 Construction in Progress - Building and Other Structures 10610030

Accounts Payable 20101010
To record receipt of 1st progress billing - 50%.

7 Accounts Payable 20101010

Due to BIR 20201010
Cash - MDS, Regular 10104040
Advances to Contractors 19902010
To record payment of 1st progress billing - 50%.

8 Construction in Progress - Building and Other Structures 10610030

Accounts Payable 20101010
To record receipt of final billing.
9 Accounts Payable 20101010
Due to BIR 20201010
Cash - MDS, Regular 10104040
Advances to Contractors 19902010
To record payment of final progress billing.

10 Building 10604010
Construction in Progress - Building and Other Structures 10610030
To record the turnover and acceptance of building.

11 Depreciation Expense - Building and Other Structures 50501040

Accumulated Depreciation - Building 10604011
To record the depreciation of building for 6 months.

Exercise 3: The following are the transactions of a national government agency:

1. Receipt of allotment for:

CO 2,000,000
MOOE 1,400,000
PS 1,400,000
FE 200,000
TOTAL 5,000,000
2. Receipt of Notice of Cash Allocation from DBM- P4,000,000
3. Obligation for PS, P1,000,000.
4. Recording of expenses
Salaries 800,000
PERA 100,000
Representation Allowance 50,000
Transportation Allowance 50,000 1,000,000

Less: Wtax 240,000

Ret. And Life Ins. 90,000
Pag-ibig premiums 12,000
Philhealth premiums 20,000 362,000
Net amount 638,000
5. Grant of cash advance for payroll-P638,000.
6. Liquidation of cash advance.
7. Remittance of salary deductions, excluding withholding tax.
8. Obligation for government share:
Ret. And Life Ins. P120,000
Pag-ibig Contributions 12,000
Philhealth contributions 20,000
9. Remittance of Government share.
10. Payment of one year rent, P134,400, less tax.
11. Payment of Meralco bill, P112,000, less tax.
12. Payment of PLDT bill, P67,200, less tax.
13. Granting of cash advance for travel, P50,000.
 Ret. And Life Ins. P120,000
Pag-ibig Contributions 12,000
Philhealth contributions 20,000
9. Remittance of Government share.
10. Payment of one year rent, P134,400, less tax.
11. Payment of Meralco bill, P112,000, less tax.
12. Payment of PLDT bill, P67,200, less tax.
13. Granting of cash advance for travel, P50,000.
14. Liquidation of cash advance for travel, P40,000.
15. Refund of excess cash advance.
16. Deposit of cash collection to BTr.
17. Establishment of Petty cash fund, P60,000.
18. Replenishment of petty cash fund.
Office supplies P40,000
Postage & courier P16,000
19. Purchase of Office equipment on account, P336,000.
20. Purchase of ICT Equipment P560,000, on account.
21. Payment of all accounts payable, net of tax.
22. Remittance of withholding taxes thru TRA.
23. Advance payment to Procurement Service for office supplies, P50,000.
24. Receipt of office supplies and invoice from procurement service.
25. Received report of supplies issued from the Property/supplies unit,
Office supplies used, P45,000.
26. Depreciation for the following:
Office equipment, (est. life 5 years;, 9 months in use)

DATE DESCRIPTION UACS

1 NO ENTRY

2 Cash - MDS, Regular 10104040

Subsidy from National Government 40301010
To record receipt of NCA from DBM.

3 NO ENTRY

4 Salaries and Wages - Regular 50101010

Personal Economic Relief Allowance 50102010
Representation Allowance 50102020
Transporation Allowance 50102030
Due to BIR 20201010
Due to GSIS 20201020
Due to Pag-IBIG 20201030
Due to PhilHealth 20201040
Due to Officers and Employees 20101020
To record liabilities to officers and employees.

5 Advances for Payroll 19901020

 Cash - MDS, Regular 10104040
To record cash advance granted for payroll.

6 Due to Officers and Employees 20101020

Advances for Payroll 19901020
To record liquidation of cash advance for payroll.

7 Due to GSIS 20201020

Due to Pag-IBIG 20201030
Due to PhilHealth 20201040
Cash - MDS, Regular 10104040
To record remittance of salary deductions, net of WHT.

8 Retirement and Life Insurance Premiums 50103010

Pag-IBIG Contributions 50103020
PhilHealth Contributions 50103030
Accounts Payable 20101010
To record obligation for government's share in
deductions.

9 Accounts Payable 20101010

Cash - MDS, Regular 10104040
To record the remittance of government's share in
deductions.

10 Prepaid Rent 19902020

Due to BIR 20201010
Cash – MDS, Regular 10104040
To record advance payment for rent for 6 months.

DATE DESCRIPTION UACS

11 Electricity Expense 50204020
Due to BIR 20201010
Cash – MDS, Regular 10104040
To record payment of MERALCO bill.

12 Telephone Expense 20101010

Due to BIR 20201010
Cash – MDS, Regular 10104040
To record payment of PLDT bill.

13 Advances to Officers and Employees 19902010

Cash – MDS, Regular 10104040
To record cash advance granted for travel.
 14 Travelling Expenses - Local 50201010
Advances to Officers and Employees 19902010
To record liquidation of cash advance for travel.

15 Cash - Collecting Officers 10101010

Advances to Officers and Employees 19902010
To record the refund of excess cash advance for travel.

16 Cash - Treasury/Agency Deposit, Regular 10104010

Cash - Collecting Officers 10101010
To record the remittance of the refund of excess cash
advance for travel.

17 Petty Cash Fund 10101020

Cash – MDS, Regular 10104040
To record the establishment of petty cash fund.

18 Office Supplies Expense 50203010

Postage and Courier Services 50205010
Cash – MDS, Regular 10104040
To record the replenishment of petty cash fund.

19 Office Equipment 10605020

Accounts Payable 20101010
To record purchase of office equipment on account.

20 Information and Communications Technology Equipment 10605030

Accounts Payable 20101010
To record purchase of ICT equipment on account.

21 Accounts Payable 20101010

Due to Bir 20201010
Cash - MDS, Regular 10104040
To record payment of office and ICT equipment.

DATE DESCRIPTION UACS

22 Cash - Tax Remittance Advice 10104070
Subsidy from National Government 40301010
To record constructive receipt of NCA for TRA.

23 Due from National Government Agencies 10303010

Cash - MDS, Regular 10104040
 To record advance payment to Procurement Services for
office supplies.

24 Office Supplies Inventory 10404010

Due from National Government Agencies 10303010
To record receipt of office supplies.

25 Office Supplies Expense 50203010

Office Supplies Inventory 10404010
To record office supplies used.

26 Depreciation - Machinery and Equipment 50501050

Accumulated Depreciation - Office Equipment 10605021
To record the depreciation of office equipment.
ing the month:

x.
s advance

vances to

, P30,000.

ent tax.

DEBIT CREDIT
100,000.00
100,000.00
 40,000.00
30,000.00
10,000.00
150,783,050.00

DEBIT CREDIT
112,000.00
112,000.00

44,800.00
44,800.00

44,800.00
1,256,313.13
18,844,696.88

112,000.00
7,000.00
20,094,010.00

134,400.00
1,776,966.07
18,125,053.93

5,000.00
5,000.00

5,000.00
5,000.00

30,000.00
 30,000.00

30,000.00
30,000.00

35,000.00
35,000.00

DEBIT CREDIT
35,000.00
1,076,839.82
19,024,170.18

100,000.00
100,000.00

100,000.00
1,076,839.82
19,024,170.18

100,000.00
100,000.00

transactions relating

vernment tax.
0.
ngs.
vernment tax.
0.
ngs.

months)

DEBIT CREDIT

20,000.00
20,000.00

20,000.00
1,071.43
18,928.57

DEBIT CREDIT

840,000.00
840,000.00

2,800,000.00
2,800,000.00

2,800,000.00
175,000.00
2,205,000.00
420,000.00

2,800,000.00
2,800,000.00
 2,800,000.00
175,000.00
2,205,000.00
420,000.00

5,600,000.00
5,600,000.00

140,000.00
140,000.00

638,000
DEBIT CREDIT

4,000,000.00
4,000,000.00

800,000.00
100,000.00
50,000.00
50,000.00
240,000.00
90,000.00
12,000.00
20,000.00
638,000.00

638,000.00
 638,000.00

638,000.00
638,000.00

90,000.00
12,000.00
20,000.00
122,000.00

120,000.00
12,000.00
20,000.00
152,000.00

152,000.00
152,000.00

134,400.00
12,000.00
122,400.00

DEBIT CREDIT
112,000.00
7,000.00
105,000.00

67,200.00
4,200.00
63,000.00

50,000.00
50,000.00
 40,000.00
40,000.00

10,000.00
10,000.00

10,000.00
10,000.00

60,000.00
60,000.00

40,000.00
16,000.00
56,000.00

336,000.00
336,000.00

560,000.00
560,000.00

896,000.00
48,000.00
848,000.00

DEBIT CREDIT
311,200.00
311,200.00

50,000.00
50,000.00
50,000.00
50,000.00

45,000.00
45,000.00

50,400.00
50,400.00