The Trial balance of Department of Health (DOH) at the beginning of the period is shown below:

Cash- Collecting Officers 5,000.00

Accounts Receivable 45,000.00
Buildings 500,000.00
Accumulated Depreciation- Buidlings 150,000.00
Office Equipment 150,000.00
Accumulated Depreciation- Office Equipment 60,000.00
Accounts Payable 20,000.00
Accumulated Surplus (Deficit) 470,000.00
700,000.00 700,000.00

Notes:
1. The 20,000 accounts payable pertains to office supplies purchased in the prior year that were already delivered but unpaid.
2. An additional purchase of office suppliers worth P5,000 is not yet recorded in the accounting books because they are still underlivered
3. The ''obligation" in note 2 is described in the registries as "not yet due and demandable obligation"

Appropriation:
DOH received its GAA amounting to P1M
- The appropriation is logged in RAPAL

Allotment:
DOH receives its allotment amounting to P 960,000 from DBM
- The allotments is logged in RAPAL and RAOD

Incurrence of Obligation
DOH incurs obligations amounting to P700,000
- The obligation are recorded in ORS documents and RAOD

Disbursement Authority- NCA

DOH receives the following NCA, net of tax:
For current year's appropriation 600,000.00 Cash- MDS, Regular 625,000.00
For prior year's AP and not yet due and demandable obligations 25,000.00 Subsidy from National Government
 625,000.00

-NCA is logged in the Registry of Allotments and Notice of Cash Allocation (RANCA)

Disbursements
1. Personnel Services (PS)
A Set up of payable to officers and employees upon approval of payroll

Salaries and Wages 200,000.00 Salaries and Wages, Regular 200,000.00

Personal Economic Relief Allowance (PERA) 50,000.00 Personal Economic, Relief Allowance 50,000.00
Gross Compensation 250,000.00 Due to BIR
Withholding Tax 20,000.00 Due to GSIS
GSIS 9,000.00 Due to Pagibig
Pagibig 2,000.00 Due to philhealth
Philhealth 1,000.00 Due to Officers and Employees
Total Deductions 32,000.00
Net 218,000.00

- The payable is logged in the ORS

B Grant of Cash Advance for Payroll Advances for Payroll 218,000.00

Cash- MDS, Regular
-The disbursement is logged in the ORS and RAOD-PS

C Liquidation of payroll fund Due to officers and Employees 218,000.00

Advances for Payroll

2. Maintenance and Other operating Expenses (MOOE)

A Purchase of Office Supplies
Receipt of delivery of purchased office supplies from Prior Year's Office Supplies inventory 5,000.00
Obligation (not yet due and demandable) (see TB Notes 2 & 3 above) Accounts Payable
-The payable is logged in the ORS
 Receipt of delivery of purchased office supplies worth P 70,000 from current Office Supplies Inventory 70,000.00
year's obliogation Accounts Payable
-The payable is logged in the ORS

B Payment of Accounts Payable

DOH pays the prior year's AP (less witholding taxes applicable). Accounts Payable 20,000.00
Note: Wtax is simplified at fixed amount for illustration purposes Due to BIR
Cash- MDS, Regular

DOH pays the current year's AP (not due and demandable) Accounts Payable 5,000.00
Note: Wtax is simplified at fixed amount for illustration purposes Due to BIR
Cash- MDS, Regular

DOH Pays the other current year's AP Accounts Payable 60,000.00

Note: Wtax is simplified at fixed amount for illustration purposes Due to BIR
Cash- MDS, Regular

C Operating Expenses
DOH Pays for the following expenses: Note: please refer to the account code based on chart of accounts in GAM
Water 1,000.00 Water Expenses 1,000.00
Electricity 5,000.00 Electricity Expenses 5,000.00
Telephone 2,000.00 Telephone Expenses 2,000.00
Janitorial 10,000.00 Janitorial Expenses 10,000.00
Security 12,000.00 Security Expenses 12,000.00
Total 30,000.00 Due to BIR
Less: Wtax 2,000.00 Cash- MDS, Regular
Net 28,000.00

D Cash Advance for Travel

DOH grants a cash advance of P2,000 for the travelling expenses of an officer Advance to Officers and Employees 2,000.00
Cash- MDS, Regular
- All disbursements (payements of AP, Opex and Cash advance are recorded in
the ORS and RAOD-MOOE
 E Liquidation of Cash Advance
Liquidation of Cash Advance Travelling Expenses- Foreign 1,800.00
Advance to Officers and Employees

Refund of excess/ unutilized Cash Advance Cash- Collecting officers 200.00

Advances to officers and Employees

Remittance of the refund of excess CA Cash- Treasury/Agency Deposit, Regular 200.00

Cash- Collecting officers
- An adjustment for the excess CA is made on the ORS and RAOD-MOOE

F Issuance of Office Supplies to End users

DOH issues office supplies worth P63,000 to end users Office Supplies Expense 63,000.00
Office Supplies Inventory

3. Capital Outlays
A Purchase of Office Equipment
Receipt of delivery of purchased office equipment worth P300,000 Office Equipment 300,000.00
from current year's obligation Accounts Payable

B Payment of Accounts Payable

Note: Wtax is simplified at fixed amount for illustration purposes Accounts Payable 300,000.00
Due to BIR
Cash-MDS, Regular

4. Remittances of Amounts Withheld

A Tax Remittance
DOH remits the taxes witheld through TRA Due to BIR 48,000.00
Cash-TRA

Cash- TRA 48,000.00

Subsidy from National Government
 B Mandatory Remittance Due to GSIS 9,000.00
DOH remits to GSIS, Pagibig and Philhealth Due to pagibig 2,000.00
Due to Philhealth 1,000.00
- Above disbursements are recorded in the ORS and RAOD- CP Cash- MDS, Regular

Billings, Collections and Remittances

A DOH bills the following revenue/ income Accounts Receivable 180,000.00

Power supply system fees 100,000.00 Power Supply system Fees
Landing and parkinng fees 80,000.00 Landing and Parking Fees
180,000.00

B DOH collects P100,000 accounts receivable from the billing above Cash- Collecting Officer 100,000.00
Accounts Receivable

C DOH remits P90,000 of the collection Cash- Treasury/Agency deposit, Regular 90,000.00
Note: As a general rule, all revenues must be remitted to the BTr, except Cash- Collecting Officer
in cases alowed by law, where some of its revenues may be used by the
government entity for specific uses

D DOH collects P45,000 AR from prior year's billing and remits total collection Cash- Collecting Officer 45,000.00
Accounts Receivable

Cash- Treasury/Agency deposit, Regular 45,000.00

Cash- Collecting Officer

E DOH collects unbilled service income of P370,000 and Cash- Collecting Officer 370,000.00
remits P340,000 of the total collection Permit Fees
Permit Fees 200,000.00 Registration Fees
Registration Fees 160,000.00 Other Service Income
Other Service Income 10,000.00
 370,000.00 Cash- Treasury/Agency deposit, Regular 340,000.00
Cash- Collecting Officer
Note: Unbilled revenue/income referes to fees from regulatory functions
and collections of revenues with no direct exchange of service or goods

F DOH collects unbilled tax revenue amounting to P100,000 representing Cash- Treasury/Agency deposit, Regular 100,000.00
immigration tax through direct deposits in Authorized Agency Banks or AAB Immigration Tax

Note: The collection is authomaticaly remitted to the National Treasury

because it is made through the latter's bank account
625,000.00
 20,000.00
9,000.00
2,000.00
1,000.00
218,000.00

218,000.00

218,000.00

5,000.00
 70,000.00

2,000.00
18,000.00

1,000.00
4,000.00

3,000.00
57,000.00

accounts in GAM

2,000.00
28,000.00

2,000.00
 1,800.00

200.00

200.00

63,000.00

300,000.00

20,000.00
280,000.00

48,000.00

48,000.00
 12,000.00

100,000.00
80,000.00

100,000.00

90,000.00

45,000.00

45,000.00

200,000.00
160,000.00
10,000.00
340,000.00

100,000.00
 1 2 3 4
Unadjusted Trial Balance Adjusting Entries
Accounts DEBIT CREDIT DEBIT CREDIT
Cash-Collecting Officers 45,000.00
Cash- Treasury/Agency Deposit, Regular 575,200.00
Cash- MDS, Regular 6,000.00 6,000.00
Cash- Tax Remittance Advice -
Accounts Receivable 80,000.00
Office Supplies Invetory 12,000.00
Buidlings 500,000.00
Accumulated Depreciation- Buildings - 150,000.00 50,000.00
Office Equipment 450,000.00
Accumulated Depreciation- Office Equipment 60,000.00 30,000.00
Advances for Payroll
Advance to Officers and Employees
Accounts Payable 10,000.00
Due to Officers and Employees
Due to BIR
Due to GSIS
Due to Pagibig
Due to PhilHealth
Accumulated Surplus (Deficit) 470,000.00
Immigration Tax 100,000.00
Permit Fees 200,000.00
Registration Fees 160,000.00
Other Service Income Fees 10,000.00
Power Supply System Fees 100,000.00
Landing and Parking Fees 80,000.00
Subsidy from National Government 673,000.00 6,000.00
Salaries and Wages, regular 200,000.00
Personal Economic Relief Allowance (PER 50,000.00
Trvaelling Expense- Foreign 1,800.00
Office Supplies Expenses 63,000.00
Water Expenses 1,000.00
Electricity Expenses 5,000.00
Telephone Expenses 2,000.00
Janitorial Expenses 10,000.00
Security Expenses 12,000.00
Adjustments:
Depreciation- Buidlings & Other Structures 50,000.00
Depreciation- Machinery & Equipment 30,000.00
Impairment Loss- Loans and Receivables 2,000.00
Allowance for Impairment- A/R 2,000.00
2,013,000.00 2,013,000.00 88,000.00 88,000.00

Adjusting Items: Journal Entries

1. Reversion of unused NCA Subsidy from National Government
Cash- MDS, Regular
2. Depreciation expense Depreciation- Bldgs & Other Structure
a. Building- P50,000 Depreciation- Machinery & Equipment
b. Equipment- P30,000 Accumulated Depreciation- Bldg
Accumulated Depreciation- Office Equipment

3. Allowance for impariement on AR Impairment Loss- Loans and Receivables

Allowance for Impairment- AR

Closing Items: Journal Entries

1. Closing of the Cash- Treasury/Agency Accumulated Surplus (Deficit)
Deposit, Regular Cash- Treasury/Agency Deposit, Regular

2. Closing of the Subsidy from National Subsidy from National Governemnt

Government Revenue and Expenses Summary

3. Normal Closing Procedures Immigration Tax

Permit Fees
Registratiion Fees
Other Service Income
Power Supply System Fees
Landing and Parking Fees
Revenue and Expenses Summary

Revenue and Expenses Summary

Salaries and Wages Regular
Personal Economic Relief Allowance (PERA)
Travelling Expense- Foreign
Office Supplies Expense
Water Expenses
Electricity Expenses
Telephone Expenses
Janitorial Expenses
Security Expenses
Depreciation- Bldgs & Structures
Depreciation- Machinery & Equipment
Impairment Loss- Loans & Receivables

Revenue and Expenses Summary

Accumulated Surplus/ (Deficit)
 5 6 7 8 9 10
Adjusted Trial Balance Balance Sheet (Real) Income Statement (Nominal)
DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT
45,000.00 45,000.00
575,200.00 575,200.00

80,000.00 80,000.00
12,000.00 12,000.00
500,000.00 500,000.00
200,000.00 200,000.00
450,000.00 450,000.00
90,000.00 90,000.00

10,000.00 10,000.00

470,000.00 470,000.00
100,000.00 100,000.00
200,000.00 200,000.00
160,000.00 160,000.00
10,000.00 10,000.00
100,000.00 100,000.00
80,000.00 80,000.00
667,000.00 667,000.00
200,000.00 200,000.00
50,000.00 50,000.00
1,800.00 1,800.00
63,000.00 63,000.00
1,000.00 1,000.00
5,000.00 5,000.00
2,000.00 2,000.00
10,000.00 10,000.00
12,000.00 12,000.00

50,000.00 50,000.00
30,000.00 30,000.00
2,000.00 2,000.00
2,000.00 2,000.00
2,089,000.00 2,089,000.00 1,662,200.00 772,000.00 426,800.00 1,317,000.00
890,200.00 890,200.00
1,662,200.00 1,662,200.00 1,317,000.00 1,317,000.00

6,000.00
6,000.00
 50,000.00
30,000.00
50,000.00
30,000.00

2,000.00
2,000.00

575,000.00 Unique in Government Accounting

575,000.00

667,000.00 Unique in Government Accounting

667,000.00

100,000.00
200,000.00
160,000.00
10,000.00
100,000.00
80,000.00
650,000.00

426,800.00
200,000.00
50,000.00
1,800.00
63,000.00
1,000.00
5,000.00
2,000.00
10,000.00
12,000.00
50,000.00
30,000.00
2,000.00

890,200.00
890,200.00
 11 12 13 14
Closing Entries Post closing Trial Balance
DEBIT CREDIT DEBIT CREDIT
45,000.00
575,200.00

80,000.00
12,000.00
500,000.00
200,000.00
450,000.00
90,000.00

10,000.00

575,200.00 890,200.00 785,000.00

100,000.00
200,000.00
160,000.00
10,000.00
100,000.00
80,000.00
667,000.00
200,000.00
50,000.00
1,800.00
63,000.00
1,000.00
5,000.00
2,000.00
10,000.00
12,000.00

50,000.00
30,000.00
2,000.00
2,000.00
1,892,200.00 1,892,200.00 1,087,000.00 1,087,000.00
 Name of Entity
Statement of Financial Position
Regular Agency Fund
As at December 31, 20x1

ASSETS Notes
Current Assets
Cash and Cash Equivalents 45,000.00
Receivables, net 78,000.00
Inventories 12,000.00
Total Current Assets 135,000.00

Noncurrent Assets
Property Plan and Equipment 1 660,000.00
Total Noncurrent Assets 660,000.00

TOTAL ASSETS 795,000.00

LIABILITIES
Current Liabilities
Financial Liabilities 10,000.00
10,000.00

TOTAL LIABILITIES 10,000.00

TOTAL ASSETS less TOTAL LIABILITIES 785,000.00

NET ASSETS/EQUITY
Accumulated Surplus/ (Deficit) 785,000.00
TOTAL NET ASSETS/EQUITY 785,000.00

Name of Entity
Notes to Financial Statements
December 31, 20X1

Note1: Property Plant and Equipment

This account consist of the following

Buidlings 500,000.00
Office Equipment 450,000.00
Total Cost 950,000.00

Accumulated Depreciations- Buildings 200,000.00

Accumulated Depreciations- Equipment 90,000.00
Total Accumulated Depreciation 290,000.00

Propert, Plant and Equipment, net 660,000.00

Note 2: Tax Revenue

This account consist of the following

Immigration Tax 100,000.00

Tax Revenue 100,000.00

Note 3: Service and Business Income

This account consist of the following

Permit Fees 200,000.00

Registration Fees 160,000.00
Other Service Income 10,000.00
Power Supply System Fees 100,000.00
Landing and Parking Fees 80,000.00
Service and Business Income 550,000.00

Note 4: Personnel Services

This account consist of the following

Salaries and Wages, Regular 200,000.00

PERA 50,000.00
Personnel Services 250,000.00

Note 5: Maintenance and Other Operating Expenses

This account consist of the following

Travelling Expenses- Foreign 1,800.00

Office Supplies Expenses 63,000.00
Water Expenses 1,000.00
Electricity Expenses 5,000.00
Telephone Expenses 2,000.00
Janitorial Expenses 10,000.00
Security Expenses 12,000.00
Maintenancce and Other Operating Expenses 94,800.00

Note 6: Non-cash Expenses

This account consist of the following

Depreciation- Buildings & Other Structures 50,000.00

Depreciation- Machinery & Equipment 30,000.00
Impairment Loss- Loans and Receivables 2,000.00
Non-cash Expenses 82,000.00
 Name of Entity
Statement of Financial Perfomance
Regular Agency Fund
For the year Ended December 31, 20x1

REVENUE Notes
Tax Revenue 2 100,000.00
Service and Business Income 3 550,000.00
TOTAL REVENUE 650,000.00

Less: CURRENT OPERATING EXPENSES

Personnel Services 4 250,000.00
Maintenancce and Other Operating Expenses 5 94,800.00
Non-cash Expenses 6 82,000.00

TOTAL CURRENT OPERATING EXPENSES 426,800.00

SURPLUS/ (DEFICIT) FROM CURRENT OPERATIONS 223,200.00

Net Financial Assitance/ Subsidy 667,000.00

SURPLUS/ (DEFICIT) FOR THE PERIOD 890,200.00

s