PROBLEM 3-5: BASIC RECORDING DRILLS
a. Receipt of notice of appropriation amounting to P1,000,000.
-Recording in the Registry of Appropriations and Allotments (RAPAL).
b. Receipt of allotment from the DBM amounting to P980,000.
-Recording in the Registry of Appropriations and Allotments (RAPAL) and appropriate Registries of
Allotments, Obligations and Disbursements (RAOD) maintained by object of expenditure.
c. Incurrence of obligations amounting to P880,000.
-Recording in Registries of Allotments, Obligations and Disbursements (RAOD) and Obligations Request
and Status (ORS).
d. Receipt of Notice of Cash Allocation amounting to P850,000.
Journal Entry:
Date Cash-Modified Disbursement System (MDS), Regular 850,000
Subsidiary from National Government 850,000
To recognize receipt of NCA from DBM.
e. Accrual of P500,000 salaries upon approval of payroll.
Journal Entry:
Date Salaries and Wages, Regular 450,000
Personal Economic Relief Allowance (PERA) 50,000
Due to BIR 125,000
Due to GSIS 25,000
Due to Pag-IBIG 20,000
Due to PhilHealth 12,000
Due to Officers and Employees 318,000
To recognize payable to officers and
employees upon approval of payroll.
f. Granting of cash advance for the payroll.
Journal Entry:
Date Advance for Payroll 318,000
Cash- Modified Disbursement System (MDS), Regular 318,000
To recognize grant of cash advance for payroll.
g. Liquidation of the cash advance for payroll.
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Journal Entry
Date Due to Officers and Employees 318,000
Advances for Payroll 318,000
To recognize liquidation of Payroll Fund.
h. Receipt of delivery of purchased office supplies worth P200,000 from current year’s obligation.
Journal Entry:
Date Office Supplies Inventory 200,000
Accounts Payable 200,000
To recognize the delivery of purchased office supplies.
i. Payment of P180,000 accounts payable. Taxes withheld to the BIR.
Accounts Payable 180,000
Less: Withholding Taxes (20,000)
Net 160,000
Journal Entries:
Date Accounts Payable 180,000
Due to BIR 20,000
Cash-Modified Disbursement System (MDS), Regular 160,000
To recognize the payment of accounts payable.
j. Remittance of all taxes withheld to the BIR.
Journal Entry:
Date Cash- Tax Remittance Advice (125,000+20,000) 135,000
Subsidy from the National Government 135,000
To recognize the constructive receipt of NCA for TRA
Date Due to BIR (125,000 + 20,000) 135,000
Cash – Tax Remittance Advice 135,000
To recognize the constructive remittance of taxes withheld to
the BIR through TRA.
k. Remittance of other amounts withheld to the other government agencies concerned.
Journal Entry:
Date Due to GSIS 25,000
Due to Pag-IBIG 20,000
Due to PhilHealth 12,000
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Cash-Modified Disbursement System (MDS), Regular 57,000
To recognize the remittance to GSIS, Pag-IBIG and PhilHealth
l. Billing of revenue for Power Supply System Fees amounting to P200,000.
Journal Entry:
Date Accounts Receivable 200,000
Power Supply System Fees 200,000
To recognize billing income.
m. Collection of P200,000 from billed revenue and remittance of the total collection to the National
Treasury.
Journal Entries:
Date Cash-Collection Officers 200,000
Accounts Receivable 200,000
To recognize the collection of billed income.
Date Cash-Treasury/ Agency Deposit, Regular 200,000
Cash-Collecting Officer 200,000
To recognize the remittance of Income to National
Government.
n. Reversion of unused NCA.
Cash-Modified Disbursement System (MDS), Regular
Receipt of 850,00 318,00
NCA 0 0 Advance for Payroll
57,000 Remittance to GSIS, Pag-IBIG, and Philhealth
475,00
0 end
Journal Entry:
Date Subsidiary from the National Government 475,000
Cash Modified Disbursement System (MDS), Regular 475,000
To recognize the reversion of unused NCA.
o. How much is reported as unreleased appropriation in the entity’s Budget Accountability Report?
Appropriation P1,000,000
Allotment (980,000)
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Unreleased Appropriation P20,000
-Recording in the Statement of Appropriations, Allotments, Obligations, Disbursements and Balances of
Budget Accountability Report.
p. How much is reported as unobligated allotment in the entity’s Budget Accountability Report?
Allotment P980,000
Obligation Incurred (880,000)
Unreleased Appropriation P100,000
-Recording in the Statement of Appropriations, Allotments, Obligations, Disbursements and Balances of
Budget Accountability Report.
q. How much is reported as Not yet Due and Demandable Obligations in the entity’s Budget
Accountability Report.
Obligation Incurred P880,000
Disbursement (850,000)
Unpaid Obligations P30,000
-Recording in the Statements of Appropriations, Allotments, Obligations, Disbursements and Balances of
Budget Accountability Report.
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