PRACTICAL ACCOUNTING 2

NEW GOVERNMENT ACCOUNTING SYSTEM

NATIONAL GOVERNMENT AGENCY
ILLUSTRATIVE ACCOUNTING ENTRIES FOR TRANSACTIONS IN THE REGULAR AGENCY BOOKS

Regular Agency Books

Transactions Account Title Debit Credit

A. NON CASH TRANSACTIONS

Beginning Balances DR CR
Office Equipment 1,000
Accounts Payable 350
Government Equity 650

1. Receipt of allotment for: Memo entry in Registry of Allotments

Allotment Class GAA CA 186 for PS (RAOPS) , MOOE (RAOMO)
CO 3,340 CO (RAOCO) and FE (RAOFE)
MOOE 1,010

PS 550 55
FE 100
TOTAL 5,000 55

2. Obligation for PS - P 500 Memo entry in RAOPS

3. Remittance of Withholding tax thru TRA (B.3) Wiithholding Tax Payable 37.00
Subsidy Income from NG 37.00
4. Obligation for government share P 60 Memo entry in RAOPS
CA 186 - Life & Ret. 50
GAA - Philhealth 6
GAA - Philhealth 4

5. Obligation of rent for two years - P 70 Memo entry in RAOMO

6. Obligation of MERALCO bill - P 50 Memo entry in RAOMO

7. Obligation of PLDT bill - P 40 Memo entry in RAOMO

8. Obligation for Spare Parts Per Purchase Order - P200 Memo entry in RAOMO

9. Receipt of Spare Parts and set-up of Spare parts Inventory 200.00

accounts payable - P 200 (A.8. & B.9) Accounts Payable 200.00

10. Remittance of Withholding Tax to BIR thru TRA (B.9) Withholding Tax Payable 20.00
Subsidy Income from NG 20.00

11. Obligation for Petty Cash Fund (PCF) for Memo entry in RAOMO
MOOE - P35 (B10)

12. Obligation of P 30 for replenishment of PCF (B.12) Memo entry in RAOMO

13. Obligation for travelling expenses Memo entry in RAOMO

 of Mr. Alex Cruz - P 110

14. Obligation for Office equipment per purchase Memo entry in RAOCO
Order - P 100

15. ReceIpt of office equipment based on invoice/delivery Office Equipment 100.00

receipt (B.14) Accounts Payable 100.00

16. Obligation for IT Software - P40 Memo entry in RAOCO

17. Receipt of IT Software based on invoice/delivery IT Equipment and Software 40.00

receipt (B.15) Accounts Payable 40.00

18. Obligation for Building upon signing of

contract - P 700 Memo entry in RAOCO

19. Receipt of progress billing for building (B.19) Construction in Progress - Buildings 360.00
50% of P700 P 350 Accounts Payable (B.19) 300.00
Less: Recoupment 50 Advances to Contractors (B.18) 50.00
Net Amount P 350

20. Remittance of Withholding tax thru TRA for Withholding Tax Payable 45.00
Office Equipment (B.14) P 10 Subsidy Income from NG 45.00
Buildings (B.19) 35
Total P 45

21. Presentation of final billing for building (A. 18 & A.19) Construction in Progress - Buildings 340.00
50% of _700 (a.21) P 350 Accounts Payable (B.20) 285.00
Less: Liquidated Damages (A.22) 10 Advances to Contractors (B.18 & A.19) 55.00
Net Cost P 340
Less: Recoupment 55
P 285
22. Adjusted of RAOCO by P10 to reduce original Memo entry in RAOCO
amount of obligation due to liquidated damages (A.21)

23. Remittance of Withholding tax thru TRA (B.20) Withholding Tax Payable 34.00
Subsidy income from NG 34.00

24. Turn-over & acceptance of building Buildings 690.00

Contract Amunt P 700 Construction in Progress - Buildings 690.00
Less: Liquidated Damages 10
Net Cost (A. 19 & A.21) P 690

25. Adjustment of obligation by P12 for refund of excess Memo entry in RAOMO
advance for travelling expense (A. 13 & B.21)

26. Liquidation of cash advance for travel of Mr. Alex Cruz Travelling Expense - Local 98.00
(B.13 & B.21) Due from Officers and Employees 98.00

27. Obligation of amount for transfer to another Memo entry in RAOMO

agency for implementation of project - P250

28. Receipt of liquidation reports Grants and Donations 250.00

from IA - P250 (B.25) Due from NGAS 250.00
 IA - P250

29. Obligation of fund assistance to NGOs/Pos - P150 Memo entry in RAOMO

30. Receipt of liquidation reports from NGOs/Pos Grants and Donations 100.00
(B.26) Other Receivables 100.00

31. Obligation of amont for tuition fees of employees Memo entry in RAOMO
Under scholarship grants - P 70

32. Recording of the bill from educational institution for Grants and Donations 70.00
tuition fees of scholars (B. 27) Accounts Payable 70.00

33. Obligation of stipend/book allowances Memo entry in RAOMO

of scholars - P 50

34. Recording of stipend/book allowance to scholars Grants and Donations 50.00

(B.28) Accounts Payable 50.00

35. Obligation for construction of roads upon signing of Memo entry in RAOCO
contract P2,000.

36. Receipt of progress billing for construction of roads Construction in Progress - Roads
50% of P2,000 (A 35%) P 1,000 Highways and Bridges 1,000.00
Less: Recoupment 500 Accounts Payable (B 32) 850.00
Net Amount P 850 Advances to Contractors (B. 31) 150.00

37. Remittance of Withholding tax thru TRA for Withholding in Progress - Roads 100.00
50% of P2,000 (A. 35 & A. 36) Subsidy Income from NG 100.00

38. Presentation of final billing for roads Construction in Progress - Roads

50% of P2,000 (A. 35 & A 36) P1,000 Highways and Bridges 950.00
Less: Liquidated Damages (A. 39) 50 Accounts Payable (B.33) 800.00
Net Cost P 950 Advances to Contractors 150.00
Less: Recoupment (B.31 & A. 36) 150
P 800

39. Adjustment of RAOCO by P50 to reduce original Memo entry in RAOCO

amount of obligation (A. 38)

40. Remittance of Withholding Tax thru TRA (B.33) Withholding tax payable 95.00
Subsidy Income from NG 95.00

41. Turn-over and acceptable roads Subsidy Income from NG 1,950.00

Contract amount P 2,000 Construction in Progress- Roads
Less: Liquidated Damages 50 Highways and Bridges 1,950.00
Net Cost (A.36 & A.38) P1,950

B. CASH TRANSACTIONS
1. Receipt of Notice of Cash Allocation Cash - Nat'l. Treas., MDS 4,500.00
(NCA) - P4,500 Subsidiary Income from NG 4,500.00

2. Grant of cash advance for payroll - P 400 Cash - Disbursing Officers 400.00
 Cash - Nat'l. Treas., MDS 400.00

3. Payment of Salaries & Other Allowances Salaries and Wages - Regular Pay 440.00
Salaries P 440 Personnel Economic Relief Allowan 30.00
Additional Comp. 30 Additional Compensation 30.00
PERA 30 Cash - Disbursing Officers 400.00
Total 500 Withholding Tax Payable (A.3) 37.00
Less - Sal. Dec. 100 GSIS Payable 53.00
Net Amount P 440 PAG-IBIG Payable 4.00
PHILHEALTH Payable 6.00

4. Remittance of Other Salary deductions (B.3) GSIS Payable 53.00

PAG-IBIG Payable 4.00
PHILHEALTH Payable 6.00
Cash - Nat'l. Treas., MDS 63.00

5. Payment of Gov't. Share (A.4) Life & Ret. Insurance Contributions 50.00
PAG-IBIG Contribution 4.00
PHILHEALTH Contribution 6.00
Cash - Nat'l. Treas., MDS 60.00

6. Payment of two years rent - P 70 (A.5) Prepaid Rent 70.00

Cash - Nat'l. Treast., MDS 70.00

7. Payment of MERALCO bill (A.6) Electricity 50.00

8. Payment of PLDT bill (A.7) Telephone/Internet 40.00

Cash - Nat'l. Treas., MDS 40.00

9. Payment of Spare Parts (A.8 & 9) Accounts Payable 200.00

Cash - Nat'l. Treas., MDS 180.00
Withholding Tax Payable (A.10) 20.00

10. Establishment of Petty Cash Fund (PCF) for Petty Cash Fund 35.00
MOOE (A 11) Cash - Nat'l. Treas. MDS 35.00

11. Purchase of Office Supplies Expense

thru PCF - P 30 No entry

12. Replenishment of PCF (A.12) Office Supplies Expense 30.00

Cash - Nat'l. Treas. MDS 30.00

13. Grant of cash advance to Mr. Alex Cruz for Due from Officers and Employees 110.00
traveling expense (A.13) Cash - Nat'l. Treas., MDS 110.00

14. Payment of office equipment (A. 15) Accounts Payable 40.00

Cash -Nat'l. Treas., MDS 90.00
Withholding Tax Payable (A.20) 10.00

15. Payment of IT Software to Goodwill Bookstore Accounts Payable 40.00

(A.17) Cash - Nat'l. Treas. MDS 40.00

16. Receipt of performance security/bond Cash - Collecting Officers 50.00

from contractor Performance Bonds Payable 50.00
17. Deposit of performance security/bond cash to Due from NGAs 50.00
BTr thru AGDB (B.16) BTr P 50
Cash - Collecting Officers 50.00

18. Payment of 15% of contract amount to the Advances to Contractors 105.00

contractor - P 700 x 15% (A.18) Cash - Nat'l. Treas., MDS 105.00

19. Payment of bill for the construction of building (A.19) Accounts Payable (A.19) 300.00
Accounts Payable P 300 Cash - Nat'l. Treas., MDS 230.00
Less: 10% Retention P 35 Other Payables (B.34) 35.00
Withholding Tax (350 x 10%) 35 70 Withholding Tax Payables (A.20) 35.00
Net Amount P 230

20. Final payment for building Accounts Payable (A.21) 285.00

Accunts Payable (A. 21) P 285 Cash - Nat'l. Treas., MDS 251.00
Less: 10% Withholding Tax (340 x 10%) 34 Withholding Tax Payables (A.23) 34.00
Net Amount P 251

21. Refund of excess advance for travellng expense Cash - Collecting Officers 12.00
of Mr. Alex Cruz Due from Officers and Employees 12.00

22. Deposit of collection from excess advance to BTr Subsidy Income from NG 12.00
Cash - Collecting Officers 12.00

23. Cancellation of check within the year of issue Cash - Nat'l. Treas., MDS 40.00
to godwill Bookstore Accounts Payable 40.00

24. Issuance of replacement check to Goodwll Accounts Payable 40.00

Bookstore Cash - Nat'l. Treas. MDS 40.00

25. Issuance of check to implementing agency (IA) Due from NGAs 250.00
(A.27) IA P 250
Cash - Nat'l. Treas. MDS 250.00

26. Issuance of check to NGOs/Pos(A.29) Other Receivables 150.00

Cash - Nat'l. Treas MDS 150.00

27. Payment of tuitions fees of scholars (A.31 & A.32) Accounts Payable 70.00
Cash - Nat'l. Treas. MDS 70.00

28. Payment of stipend/book allowance to scholars (A.34) Accounts Payable 50.00

Cash - Nat'l. Treas. MDS 50.00

29. Receipt of NCA for PY acconts payable - P350 Cash - Nat'l. Treas. Mds 350.00
Subsidy Income from NG 350.00

30. Payment of PY accounts payable - P200 (B.29) Accounts Payable 200.00

Cash - Nat'l. Treas. MDS 200.00
31. Payment of 15% of contract amount for the Advances to Contractors 300.00
advances to the contractor for the construction of Cash - Nat'l. Treas. MDS 300.00
roads P2,000 x 15% (A.35)
32. Payment of bill for the construction of roads Accounts Payable (A. 36) 850.00
Accounts Payable (1,000 - 150) P 850 Cash - Nat'l. Treas. MDS 650.00
Less: Withholding tax P 100 Withholding Tax Payable (A.37) 100.00
10% Retention (1,000 x 10%) 100 200 Other Payables (B.35) 100.00
Net Amount P650

33. Final payment for the construction of roads (A.38) Accounts Payable (A.38) 800.00
Accounts Payable (1,000 - 50 - 150) P 800 Cash - Nat'l. Treas. MDS 705.00
Less: Withholding Tax (950 x 10%) 95 Withholding Tax Payable (A.40) 95.00
Net Amount P 705

34. Payment to Contractors of 10% retention Other Payables (B.32) 35.00

fees for the construction of buildings Cash - Nat'l. Treas. MDS 35.00

35. Payment to Contractors of 10% Other Payables (B.32) 100.00

fees for the construction of roads Cash - Nat'l. Treas MDs 100.00