Problem 1.

Agency A sold a 50% depreciated motor vehicle which had an original cost of P300,000 for
P200,000. The proceeds shall be deemed automatically appropriated for the purchase of
replacement higher capacity vehicle worth P500,000, net of applicable tax. The agency
subsequently received a NCA of 500,000 for the purchase of the said vehicle.
Required:
What is the entry to record the receipt from the disposal of the motor vehicle?
Cash – Collecting Officer 10101010 200,000
Accumulated Depreciation – Vehicle 10606011 150,000
Motor Vehicle 10606010 300,000
Gain on Sale of PPE 40501040 50,000
#

Problem 2.
Agency B conducted a seminar/conference and was able to collect seminar fees from attendees
totaling to P100,000. The authority to use such receipts is subjected to limitations that any excess
over those expended for seminar/ conference costs shall be remitted to the National treasury.
P20,000 and P5,000 from the amount collected were used for rent of the seminar/conference
venue and office supplies used, respectively. The excess amount was remitted to the BTr.

Required:
Provide the journal entries in the following
1. To record the collection
Cash- Collecting Officer 10101010 100,000
Seminar/Training Fees 40202040 100,000
#

2. To record payment of seminar/convention-related expenditures

Rent/Lease Expense 40202050 20,000
Office Supplies Expense 50299050 5,000
 Cash in Bank-LCCA 10102020 25,000
#

3. To close accounts in Agency Books for transfer to NG books

Seminar/Training Fees 40202050 100,000
Rent/Lease Expense 40202050 20,000
Office Supplies Expense 50299050 5,000
Cash in Bank-LCCA 10102020 75,000
#

4. To Record the remittance of excess collections to the BTr through the bank
Seminar Fees 40202050 75,000
Cash in Bank- LCCA 10102020 75,000
#

Problem 3. - Dishonored Checks

At a  seminar conducted by Agency A,  several participants issued personal checks

representing registration fees. When deposited in the bank, one of the checks in the
amount of P4,000 was dishonored. Accordingly, the official receipt was cancelled. After
several days, dishonored check was replaced and remitted to the Bureau of Treasury.

Required:  Provide for journal entries

1. The cancellation of OR due to Dishonored check

Other receivables 10305990 4,000

Cash – Treasury/Agency
Deposit, Regular 10104010 4,000
#

2. The cancellation of OR due to a Dishonored check that pertains to prior years'

deposit collection.
 Other receivables 10305990 4,000

Accumulated Surplus/(Deficit) 30101010 4,000

3. The redemption of Dishonored Checks

Cash-Collecting Officers 10101010 4,000

Other receivables 10305990 4,000
Replacement of dishonored check

Cash–Treasury/Agency Deposit, Regular 10104010 4,000

Cash-Collecting Officers 10101010 4,000
Remittance of the replacement of dishonored checks.

Problem 4 - Accounting for cash overage/shortage of collecting officers/Disbursing

Officers

The resident auditor of Agency ABC Discovered cash shortage of the following officers:

Collecting Officer P 7,000

Disbursing
3,000
Officer
Total P 10,000

The accounting division was furnished with the auditor's memorandum pertaining to
cash Shortages. Eventually, the accountable officers settled their shortages and the same
were remitted to Bureau of Treasury.
Required: Prepare the journal Entries

1. To recognize the cash shortage

Due from Officers and Employees 10305020 10,000

Cash-Collecting Officers 10101010 7,000
 Advances for Payroll 19901020 3,000
#

2. The restitution of cash shortage

Cash-Collecting Officers 10101010 10,000

Due from Officers and Employees 10305020 10,000
#

3. The remittance of restituted cash shortage to BTr

Cash-Treasury/Agency Deposit, Regular 10104010 10,000

Cash-Collecting Officers 10101010 10,000
#

 Problem 5.  Intra-agency fund transfer

In an intra-agency transaction, the central office (CO) of DOH made fund transfer to its
Regional Office (RO) in the amount of P600,000 for the implementation of its campaign
against dengue in Zone A of Region X. Said amount was accordingly remitted to Bureau
of Treasury by the RO.

Required: Prepare the journal entry

1. To recognize receipt of intra-entity fund transfer

Cash-Collecting Officers 10101010 600,000

Due to Regional Offices 20301030 600,000
#

2. To recognize remittance of collections to BTr.

Cash-Treasury/Agency Deposit, Trust 10104030 600,000

Cash-Collecting Officers 10101010 600,000
#