Accounting for Gov't and NPO

1. On January 1, 2020, Kabalikat sa Kaunlaran, a National Government Agency, granted loan amounting to P25,000,000 to Pasig City government with annual interest of 2%. On December 30, 2014, the LGU made a partial payment of P 8,000,000. The entry on the books of Agency for the receipt of partial payment of loan of the LGU directly credited to the Agency's bank account shall be a. Cash in Bank-Local Currency, Current Account 8,500,000 Loans Receivable-Local Government Unit 8,000,000 Other income 500,000 b. Cash in Bank-Local Currency, Current Account 8,000,000 Loans Receivable-Local Government Unit 7,500,000 Interest Income 500,000 c. Cash in Bank-Local Currency, Current Account 8,000,000 Loans Receivable-Local Government Unit 8,000,000 d. Cash in Bank-Local Currency, Current Account 8,500,000 Loans Receivable-Local Government Unit 8,000,000 Interest Income 500,000 2. On January 1, 2020, the Bureau of Treasury issued a 5-year P250,000 face value bonds for P239,469. Interest is 5% payable annually. The prevailing interest rate is 6%. The bonds were issued through an underwriter and the agency paid bond issue cost of P85,000. The financial liability was measured at amortized cost. The following are the accounting journal entries to recognize the transaction, except: a. A debit to cash in bank- local currency, Bangko Sentral ng Pilipinas of P239,469. b. A credit to discount on bonds payable - domestic of P10,531. C. A credit to cash in bank - local currency, Bangko Sentral ng Pilipinas of P85,000. d. A debit to bond issue cost - domestic of P85,000.3. The approved appropriation of the Human Resource Department of City of Manila for 2020 was P20, 000,000. From this appropriation, the Department of Budget and Management (DBM) allotted P17,000,000 on which P13,600,000 is accompanied with Notice of Cash allocation. During the year, the amount of obligations incurred was P12,240,000 but only PS,568,000 of these obligations were paid by checks. What is the entry to record the incurrence of obligation? a. No entry, Posting of Obligation Request and Status (ORS) to the appropriate Registry of Allotments, Obligations and Disbursements (RAOD). b. No entry, Posting to appropriate Registry of Allotments, Obligations and Disbursements (RAOD). C. No entry, Posting to appropriate Registries of Budget, Utilization and Disbursements (RBUD). d. No entry, Posting to appropriate Registries of Appropriations and Allotments (RAPAL). 4. The following data are provided by the Chief Accountant of the Department of Agriculture: Total Subsidy Income from National Government P 4,136,587 Total Income, aside from SING 5,593,000 Total expenses 2,770,782 Which of the following closing entries in the accounting book of the agency is not correct? a. Income account other than SING 5,593,000 Revenue and Expense Summary account 5,593,000 b. Subsidy Income from National Government 4,136,587 Revenue and Expense Summary Account 4,136,587 C. Revenue and Expense Summary Account 6,958,805 Accumulated Surplus/ (Deficit) 6,958,805 d. Expense account 2,770,782 Revenue and Expense Summary Account 2,770,7825. Department of Labor and Employment received allotment for Pension and Gratuity Fund directly from Department of Budget and Management in the amount of P80, 000,000 with Notice of Cash Allocation (NCA) of P70,000,000. What will be the entry of the DOLE upon receipts of Notice of Cash Allocation? a. Cash-Collecting Officer 70,000,000 Cash-Modified Disbursement System, Regular 70,000,000 b. Cash-Modified Disbursement System, Regular 70,000,000 Subsidy from National Government 70,000,000 c. Cash-Modified Disbursement System, Regular 70,000,000 Cash-Collecting Officer 70,000,000 d. No entry, Posting to appropriate Registries of Appropriations and Allotments (RAPAL) 6. The Department of Agriculture receives a total appropriation of P750,000,000. Of the total appropriation, 80%% was allotted by the Department of Budget and Management with 70% accompanied by Notice of Cash Allocation. What will be the entry of DA for the receipts of allotment from the DBM? a. Cash-Modified Disbursement System, Regular 600,000,000 Subsidy from National Government 600,000,000 b. National clearing account - Cash Disbursement Ceiling 600,000,000 Appropriation allotted 600,000,000 C. No entry, Posting to appropriate Registry of Allotments, Obligations and Disbursements (RAOD) and Registry of Appropriations and Allotments (RAPAL) d. No entry, Posting to appropriate Obligation Request and Status (ORS)7. The Department of Trade and Industry allotment from Department of Budget and Management amounted to P100,000,000 which was all accompanied by Notice of Cash Allocation. However, only PS8,000,000 of these obligations were paid by checks. What is the entry to recognize the reversion of unused Notice of Cash Allocation? a. Subsidy from National Government 12,000,000 Cash-Treasury Agency Deposit 12,000,000 b. Subsidy from National Government 12,000,000 Cash-Modified Disbursement System, Regular 12,000,000 c. Subsidy from National Government 88,000,000 Cash-Modified Disbursement System, Regular 88,000,000 d. Posting to appropriate Registry of Allotments, Obligations and Disbursements (RAOD). 3. Michael Cruz is a Disbursitiser of Department of Education. He is granted advances for payment of salaries, wages, honoraria, allowances and other personnel benefits of officials and employees. What is the journal entry to recognize granting of cash advance for payroll based on duly approved ADA? a. Cash - Disbursitiser 5,350,000 Cash - National Treasury, Modified Disbursement System 5,350,000 b. Advance for Payroll 5,350,000 Cash - National Treasury, Modified Disbursement System 5,350,000 C. Advance for Payroll 5,350,000 Cash-Modified Disbursement System, Regular 5,350,000 d. Payroll Fund 5,350,000 Cash-Modified Disbursement System, Regular 5,350,0009. The Collecting Officer of Land Transportation Office remitted P850,000 to the Bureau of Treasury for the amounts collected as fine for traffic violations of erring drivers. What is the journal entry to record the remittance to Bureau of Treasury? a. Cash-Collecting Officer 850,000 Accounts Receivable 850,000 b. Cash-Collecting Officer 850,000 Cash-Treasury/Agency Deposit, Regular 850,000 c. Cash-Treasury/Agency Deposit 850,000 Accounts Receivable 850,000 d. Cash-Treasury/Agency Deposit 850,000 Cash-Collecting Officer 350,000 10. On April 1, 2020, the collecting officer of the Bureau of Immigration collected immigration tax of P50, 000 and travel tax of P4, 000. On April 10, the agency remitted the collection to the Bureau of Treasury. What is the entry to record the collection of immigration and travel tax? a. Cash-Treasury/Agency deposit, Regular 54,000 Credit Immigration Tax 50,000 Travel Tax 4,000 b. Cash-Collecting Officer 54,000 Credit Immigration Tax 50,000 Travel Tax 4,000 c. Cash-Treasury/Agency deposit, Regular 54,000 Cash-Collecting Officer 54,000 d. Cash-Collecting Officer 54,000 Cash-Treasury/Agency deposit, Regular 54,00011. On July 1, the Department of Transportation had obligation for Personal Services amounting to P1,200,000. What is the entry to record the obligation? a. Cash-Modified Disbursement System, Regular 1,200,000 Subsidy from National Government 1,200,000 b. Appropriations allotted 1,200,000 Obligations incurred 1,200,000 C. No entry, Posting to appropriate Obligation Request and Status (ORS) d. No entry, Posting to appropriate Registry of Allotments, Obligations and Disbursements for Personal Services (RAODPS)