Answer key Discussion of Sir Paul of Pre-week

1.

M J B Total
Interest 800,000 1,000,000 200,000 2,000,000
Salary 120,000 240,000 600,000 960,000
Bonus 10,000 10,000
Balance 10,000 10,000 10,000 30,000
Share in Net income 930,000 1,250,000 820,000 3,000,000
Beginning capital 4:5:1 4,000,000 5,000,000 1,000,000 2,000,000
Drawing (465,000) (625,000) (410,000) (1,500,000)
Capital end 4,465,000 5,625,000 1,410,000 3,500,000

Adjust the beginning capital using the capital ratio 4:5:1

2.

TCC TAC P/L ratio

138,000 150,240 12,240 60%
111,600 119,760 8,160 40%
249,600 3/4 270,000 20,400
96,000 1/4 90,000 (6,000) bonus
345,600 360,000 14,400 under

NPO

1. A

2. D

Government accounting

1. B
ORS - The incurrence of obligations shall be made through the issuance of Obligation Request and
Status (ORS).

RBUD - It refers to registry maintained by NGA unit to record the approved special budget and the
corresponding utilizations and disbursements charged to retained income authorized under the law
and other retained income collection of a national government agency with similar authority.

RAPAL - It refers to registry maintained by NGA unit to show the original, supplemental and final budget
for the year and all allotments received charged against the corresponding appropriation.

RAOD - It refers to registry maintained by NGA unit to show the allotments received for the year,
obligations incurred against the corresponding allotment and the actual disbursements made.

2.
 Construction Materials Inclusive of VAT 448,000
Less: Final Withholding VAT of 5% [448,000/1.12 = 400,000 x 5%] 20,000
WTAX on gov't payments to supplier of goods [1% x 400,000] 4,000
Cash Payments 424,000

Process

WIP beg 40,000

SIP 750,000
Total 790,000
M CC
FT 760,000 100% 760,000 100% 760,000
WIP end 30,000 40% 12,000 30% 9,000
Total 790,000 772,000 769,000

M CC
WIP Beg cost 8,600 4,800
This period 223,000 149,000
Total 231,600 153,800
Divide by EUP 772,000 769,000
Unit Cost 0.30 0.20

Meterials (.3 x
12,000) 3,600
CC (.2 x 9,000) 1,800
Total WIP end 5,400

FOREX
Notes Payable 108,000
Interest Payable - December 31:
(108,000 x 18% x 30/360) 1,620
Total Payables 109,620
x (Dec. 31: P74.85 - Jan. 30: P75.75) Increase 0.9
Forex loss 98,658