Chapter 14

General Accounting - General Fund (New Government Accounting System)

Multiple Choice Questions

1. Agency AAA received the following allotment for year 2011:

Capital outlay, (CO)……………………………………………………. P50,000,000

Maintenance and other Operating Expenses (MOOE)….. 10,000,000
Personal Services (PS) …………………………………………………. 5,000,000
Financial expenses (FE) ………………………………………………. 100,000
___________
P65,100,000
The entry to record the above allotment would be:
A. No entry
B. Memorandum entry in Registry Allotments and Obligations
C. National Clearing Account………………………… P65,100,000
Appropriations Allotted…………………………….. P65,100,000
D. Cash – National Treasury
Modified Disb. System ………. P65,100,000
Subsidy income from the National
Government ………….. P65,100,000
2. Agency BBB received Notice of Cash Allocation (NCA) – P45,000,000 for the year
2011 ; the entry would be :

A. No entry
B. Memorandum entry in Registry Allotments
C. National Clearing Account………………………… P45,000,000
Appropriations Allotted
D. Cash – National Treasury, MDS ……………… P45,000,000
Subsidy income from the National
Government ……………… P45,000,000

3.Agency CCC had obligation for Personnel Services (PS) amounting to P300,000, for
the month of February, the entry would be:

A. No entry
B. Memorandum entry in Registry Allotments and Obligations for PS (RAOPS)
C. Appropriations allotted ………… P300,000
Obligations Incurred ……….. P300,000
 D. Cash Disbursing Officer ……………. P300,000
Cash National Treasury (NT), MS …. P300,000

4. Agency DDD was granted cash advances for payroll amounting to P280,000 , the
entry would be:

A. No entry
B. Memorandum entry RAOPS
C. Payroll Fund ……… P280,000
Cash National Treasury, MDS …. P280,000
D. Cash Disbursing Officer ……… P280,000
Due from National Government ….. P280,000
5. Using the same information in No. 4, Agency DDD paid salaries and allowances:

Salaries ……………………………………………………………………………… P300,000

PERA (Personnel Economic Relief Allowance) ………… 70,000
__________________
TOTAL. ………………………………………………………… P370,000
Less: Salary Deductions
Withholding Tax ……………………………….. P60,000
Life and Retirement …………………………… 20,000
Pag-ibig …………………………………………….. 4,000
Philhealth …………………………………………… 6,000 90,000
__________________
Net Amount ………………………………………………… P280,000

The entry to record ther above transaction would be:

A. Obligations Liquidated ………………………………. 370,000

Cash Disbursing Officer ………………………….. 280,000
Due to National Government Agency 60,000
Due to GSIS …………………………………………….. 24,000
Due to philhealth …………………………………….. 6,000
B. Salaries , etc . ……………………………………………….. 370,000
Withholding Tax Payable …………………………… 60,000
Cash Disbursing Officer ……………………………. 310,000
C. Salaries and Wages Regular Pay ………………….. 300,000
PERA……………………………………………………………… 70,000
 Payroll Fund …………………………………….. 280,000
Due to BIR ……………………………………….. 60,000
Due to GSIS ……………………………………… 20,000
Due to Pag-ibig………………………………… 4,000
Due to philhealth …………………………….. 6,000
D. No entry required
6. Using the same information in No. 5, the entry to record remittance of withholding
tax: ( with tax remittance advice
A. Due to BIR ……………………………………… 60,000
Cash – National Treasury, MIS ……………… 60,000
B. Due to BIR ……………………………………… 60,000
Cash Disbursing Officer ……………… 60,000
C. Due to BIR ……………………………………… 60,000
Due to National Government …….. 60,000
D.Due to BIR ……………………………………… 60,000
Subsidy income from the National Government …….. 60,000
7. Using the same information in nos. 5 and 6 the entry to record the remittance of
other salary deductions…

A. Due to Pag-ibig ……………………………………………… 4,000

Due to GSIS……………………………………………… 20,000
Due to PhilHealth…………………………………….. 6,000
Cash-National Treasury, MDS……… 30,000
B. Withholding tax payable………………………………… 60,000
Cash-National Treasury,MDS………………….. 60,000
C. Due to National Government Agency………….. 30,000
Cash-National Treasury MDS…………………... 30,000
D. No entry required
8. Agency EEE’s share in relation to salary deductions were as follows:
Life and retirement………………………………………………. P30,000
PhilHealth……………………………………………………………... 20,000
Pag-ibig…………………………………………………………………. 10,000
P60,000
The entry to record the incurrence of agency’s hare in salary deduction would be:
A. GSIS Payable…………………………………………………… 30,000
PhilHealth Payable…………………………………………. 20,000
Pag-ibig Payable…………………………………………….. 10,000
Cash-National Treasury, MDS…….. 60,000
B. Life and retirement Contribution……………………. 30,000
PhilHealth Contribution………………………………….. 20,000
Pag-ibig Contribution……………………………………… 10,000
Due to NGA……………………………………………… 60,000
C. Due to National Government Agency…………….. 60,000
 Cash-National Treasury, MDS………………….. 60,000
D. Life and retirement Contribution Expense……… 30,000
PhilHealth Contribution Expense……………………. 20,000
Pag-ibig Contribution Expense……………………….. 10,000
Due to GSIS……………………………………………….. 30,000
Due to PhilHealth………………………………………. 20,000
Due to Pag-ibig………………………………………….. 10,000

9. Agency FFF’s obligation of rent for three years (3) amounted to P90,000. The entry
to record this transaction would be:
A. Rent Expenses…………………………………………………. 90,000
Cash-National Treasury, MDS……………………. 90,000
B. Prepaid Rent……………………………………………………. 90,000
Cash-National Treasury, MDS……………………. 90,000
C. Rent Expense…………………………………………………... 30,000
Prepaid Rent……………………………………………… 30,000
D. Memorandum entry in RAOMO

10. Using the same information in No. 9, Agency FFF paid rent for three (3) years
P90,000. The entry for this transaction would be:
A. Rent Expense…………………………………………………… 90,000
Cash-National Treasury, MDS……………………. 90,000
B. Prepaid Rent……………………………………………………. 90,000
Cash-National Treasury, MDS…………………… 90,000
C. Rent Expense………………………………………………….. 30,000
Prepaid Rent……………………………………………... 30,000
D. Memorandum entry in RAOMO

11. Agency GGG paid Meralco bill amounting to P40,000, the entry to record this
transaction would be:
A. Electricity Expenses………………………………………….. 40,000
Cash-National Treasury, MDS……………………… 40,000
B. Electricity Expenses………………………………………….. 40,000
Accounts Payable……………………………………….. 40,000
C. Memorandum entry only.
D. No entry required.

12. Agency HHH received spare parts amounting to P10,000 and set-up liability.
The entry for this transaction would be:
A. Spare Parts Expense………………………………………….. 10,000
Accounts Payable………………………………………… 10,000
B. Spare Parts Inventory………………………………………… 10,000
Accounts Payable………………………………………… 10,000
C. Spare Parts Inventory………………………………………… 10,000
 Due from Suppliers……………………………………… 10,000
D. Memorandum entry only.

13. Agency III establish a pretty cash fund for maintenance and other operating
expenses (MOOE) amounting to P10,000. The entry for this transaction would be:
A. No entry
B. Memorandum entry
C. Petty Cash fund……………………………………………………. 10,000
Cash-National Treasury, MDS………………………… 10,000
D. Petty Cash fund……………………………………………………. 10,000
Cash-Disbursing Officers……………………………….. 10,000

14. Using the information in number 13, Agency III received a request for replenishment
of petty cash fund for the following expenses:
Office supplies…………………………………………………………….. P500
Transportation fares……………………………………………………. 100
Repair of Aircon…………………………………………………………… 200
JRS mail………………………………………………………………………. 160
Total……………………………………………………………………………. P960

The entry for this transaction would be:

A. No entry.
B. Memorandum entry to the RAOMO
C. Office supplies expense…………………………………………. 500
Travelling expense…………………………………………………. 100
Repairs and Maintenance………………………………………. 200
Other Maintenance and Operating Expense………….. 160
Cash, National Treasury, MDS………………………….. 960
D. Office supplies expense………………………………………….. 500
Travelling expense………………………………………………….. 100
Repairs and maintenance……………………………………….. 200
Other maintenance and operating expense……………. 160
Petty cash fund…………………………………………………. 960

15. Using the same information in number 13, the entry to record the replenishment of
the pettycash fund is:

A. No Entry.
B. Memorandum entry to the RAOMO
C. Office Supplies Expense……………………………………………. 500
Travelling Expense ……………………………………………………. 100
Repairs and Maintenance …………………………………………. 200
Other Maintenance and operating Expense 160
Cash, National Treasury, MDS…………………….......... 960
D. Office Supplies Expense……………………………………………..500
Travelling Expense…………………………………………………… 100
 Repairs and Maintenance…………………………………………. 200
Other Maintenance and Operating Expense 160
Petty Cash Fund…………………………………………………. 960
16. Agency JJJ grants advance to Mr. Ube for travelling expense amount to P12,000. The
entry for the cash advance would be:

A. Cash Disbursing Officer………………………………………………. 12,000

Cash- National Treasury, MDS……………………………… 12,000
B. Cash-Collecting Officer……………………………………………….. 12,000
Cash- National Treasury, MDS……………………………… 12,000
C. Travel Expense…………………………………………………………… 12,000
Cash- National Treasury, MDS……………………………… 12,000
D. Advance to Officers & Employees………………………………. 12,000
Cash- National Treasury, MDS…………………………………
12,000

17. Using the information in number 14, Mr. Ube presented certificates of appearance
for the travel completed along with the necessary documents to support the travel
expenses, P10,000; Mr. Ube refunded the agency for the excess. The entry for these
transactions would be:

A. Travelling expenses…………………………………………………….. 10,000

Cash Collecting Officer………………………………………………… 2,000
Advance to officers and Employees…………………………………………….. 12,000
B. Cash collecting officer…………………………………………………. 2,000
Travelling expenses…………………………………………………………………………… 2,000
C. Cash, National Treasury, MDS…………………………………….. 2,000
Travelling Expenses……………………………………………………………………………. 2,000
D. Travelling expenses……………………………………………………. 10,000
Cash, National Treasury, MDS…………………………………….. 2,000
Due from officers and Employees……………………………………………...
12,000
18. Agency KKK have an obligation for equipment per purchase order amounting to
P200,000. The entry for this transaction would be:

A. Office Equipment………………………………………………………… 200,000

Accounts Payable…………………………………………………..
200,000
B. Office Equipment…………………………………………………………. 200,000
Cash-National Treasury, MDS……………………………….. 200,000
C. Office Equipment………………………………………………………… 200,000
Subsidy Income from National Government 200,000
 D. Memorandum entry in RAOCO.
19. Using the same information in no. 18, Agency KKK received the office equipment
based on invoice/ delivery receipt. The entry for this transaction would be: ( ignore
tax implication)

A. Office equipment……………………………………………………….. 200,000

Accounts Payable…………………………………………………...
200,000
B. Office equipment…………………………………………………………. 200,000
Cash- National treasury, MDS…………………………………
200,000
C. Office Equipment………………………………………………………….. 200,000
Subsidy income from National Government 200,000
D. Memorandum entry in RAOCO.
20. Using the some information in Nos. 18 and 19, Agency KKK Liquidates the office
equipment acquired in full. The entry to record this transaction would be (ignore tax
implication):

A. Obligation Liquidated…………………………………………………… 200,000

Cash- Treasury Account-Check Disb…………………… 200,000
B. Subsidy Income from National Government……………… 200,000
Cash-National Treasury, MDS…………………………….... 200,000
C. Accounts Payable………………………………………………………… 200,000
Cash-National Treasury, MDS……………………………....
200,000
D. Memorandum entry in RAOCO.

21. Agency LLL have obligation for Information Technology (IT) Software from
Microsoft Great Plains Solutions amounting to P120,000. The entry for this
transaction would be:

A. Obligations Incurred……………………………………………………. 120,000

Appropriations Alloted………………………………………… 120,000
B. IT Equipment and Softwares……………………………………… 120,000
Accounts Payable………………………………………………… 120,000
C. IT Equipment and Software……………………………………… 120,000
Cash –National Treasury, MDS……………………………. 120,000
D. Memorandum entry in RAOCO.
22. Using the some information in No. 21, Agency LLL received the IT Software based in
invoice/ delivery receipt. The entry for this transaction would be(ignore tax
implication)

A. Memorandum entry in RAOCO

B. IT Equipment and Software…………………………………….. 120,000
Cash-National Treasury, MDS……………………………. 120,000
C. IT Equipment and Software…………………………………….. 120,000
Accounts Payable……………………………………………….
120,000
D. IT Equipment and Software……………………………………… 120,000
Subsidy Income from Nat’l Government
120,000

23. Using the same information in Nos.21 and 22. Agency LLL paid IT Software to MS
Great Plains in full. The entry to records this transaction would be(ignore tax
implication):

A. Obligation Liquidated…………………………………………………… 120,000

Cash- Treasury Account-Check Disb…………………… 120,000
B. Accounts Payable………………………………………………………… 120,000
Cash-National Treasury, MDS……………………………....
120,000

C. Subsidy Income from National Government……………… 120,000

Cash-National Treasury, MDS…………………………….... 120,000
D. Memorandum entry in RAOCO.

24. Using the same information in no. 23, Agency LLL cancelled the check issued to MS
Great Plains within the year of issue. The entry to record this transaction would be:

A. Cash-National Treasury, MDS……………………………... 120,000

Obligation Liquidated……………………………………………………
120,000
B. Cash-National Treasury, MDS……………………………... 120,000
Subsidy Income from National Government 120,000
C. Cash-National Treasury, MDS……………………………... 120,000
D. Memorandum entry in RAOCO.
25. Agency MMM have an obligation for building upon signing of contract amounting to
P10,000,000. The entry to record this transaction would be:

A. No entry
B. Memorandum entry in RAOCO.
C. Appropriations Alloted…………………………………………. 10,000,000
Obligations Incurred……………………………………… 10,000,000
D. Buildings……………………………………………………………….. 10,000,000
Accounts Payable…………………………………………… 10,000,000

26. Using information in No. 25, Agency MMM received a performance/(cash) bond
from character, one(1) percent of the contract price. The entry to record this
transaction would be:

A. Cash- Collecting officer…………………………………………. 100,000

Performance Bonds Payable………………………….. 100,000
B. Cash- National Treasury, MDS………………………………. 100,000
Performance Bonds Payable………………………….. 100,000
C. Accounts Receivable…………………………………………… 100,000
Performance Bonds Payable………………………….. 100,000
D. Due from Contractors…………………………………………... 100,000
Performance Bonds Payable………………………….. 100,000

27. Using the same information in No. 26, Agency MMM deposited the performance
bond to Bureau of Treasury thru AGDB (Authorized Government Depository Bank).
The entry to record this transaction would be:

A. Due from National Government Agency……………… 100,000

Cash collection Officer…………………………………. 100,000

B. Due from National Government Agency……………… 100,000

Cash- National Treasury, MDS……………………… 100,000

C. Due from National Government Agency……………… 100,000

Accounts Receivable……………………………………… 100,000

D.Cash-Treasury Account………………………………………….. 100,000

Due From Contractors………………………………… 100,000

28. Using the same information in No. 25, the Agency paid the contractor 15% of
contract price (P 1,500,000) representing mobilization fee. The entry to record this
transaction would be:

A. Due from national government agency…………….. 1,500,000

Cash-National Treasury, MDS………………………. 1,500,000
B. Advances to contractors…………………………………….. 1,500,000
Cash-National Treasury, MDS………………………. 1,500,000
C. Advances to contractors…………………………………….. 1,500,000
Cash-Disbursing Officer……………………………….. 1,500,000
D. Advances to Contractors……………………………………. 1,500,000
Cash in bank- local company……………………….. 1,500,000

29. Using the same information in Nos.25 and 28 agency MMM received a progress
billing for the building as follows:
Progress billing: 70%x P10,000,000…………………………….. P7,000,000
Less: Recoupment of the advances in No. 28:
70%x P1,500,000…………………………………………….. 1,050,000
Net amount………………………………………………………………… P5,950,000

The entry to record the above transaction would be:

A. Contraction in progress_ Agency Assets

Bldg. ……………………………………………………………… 5,950,000
Accounts Payable…………………………….. 5,950,000
B. Contraction in progress_ Agency Assets
Bldgs…………………………………………………………….. 7,000,000
Accounts Payable……………………………. 5,950,000
Advances to contractors…………………. 1,050,000
C. Buildings…………………………………………………………….. 5,950,000
Accounts payable…………………………………………. 5,950,000
D. Buildings…………………………………………………………….. 7,000,000
Accounts payable………………………………………… 5,950,000
Advances to contractors……………………………… 1,050,000

30. Using the same information in No. 29, Agency MMM paid the bill for the
construction of the building as follows:
 Accounts payable…………………………………………………….. P5,950,000
Less: 10% Retention (P7,000,000x 10%)…………………… 700,000
Withholding tax(P7,000,000x 10%)……………… 700,000
Net amount………………………………………………………………. P4,550,000

The entry to record this transaction would be:

A. Accounts payable……………………………………………….. 5,950,000
Due to national government agency……………. 1,400,000
Cash-National treasury, MDS……………………….. 4,550,000
B. Accounts payable……………………………………………….. 4,550,000
Cash-National Treasury, MDS……………………….. 4,550,000
C. Accounts payable………………………………………………… 5,950,000
Other payables……………………………………………… 700,000
Withholding tax payable……………………………….. 700,000
Cash disbursing officer…………………………………. 4,550,000
D. Accounts payable……………………………………………….. 5,950,000
Guarantee deposits payable………………………… 700,000
Due to BIR…………………………………………………….. 700,000
Cash-National Treasury, MDS……………………….. 4,550,000

31. Using the same information in Nos. 25, 29 and 30, Agency MMM paid the final billing
for building computed as follows:
Final billings:30% x P10,000,000…………………………………… P3,000,000
Less: Liquidated damages(due to delay in completion) 10,000
Net cost……………………………………………………………………….. P2,990,000
Less: Recoupment of the advances in No.28
[P1,500,000-P1,050,000(No.29]……………………… 450,000
Accounts payable balance…………………………………………… P2,540,000
Less: Withholding tax(10% x Net cost of P2,990,000… 299,000
Net amount………………………………………………………………… P2,241,000

The entry to record the final payment of building would be:

A. Accounts payable…………………………………………………… 2,540,000
Withholding tax payable………………………………….. 299,000
Cash-disbursing officer…………………………………… 2,241,000
B. Accounts payable………………………………………………….. 2,540,000
Due to BIR………………………………………………………… 299,000
Cash-national treasury, MDS…………………………… 2,241,000
C. Accounts payable…………………………………………………… 2,241,000
Cash-national Treasury, MDS………………………….. 2,241,000
 D. Buildings……………………………………………………. 2,241,000
Cash-national treasury, MDS……………….
2,241,000

32. Using the same information in No.30, the entry to record the liquidated damages
imposed to the contractor due to delay in the final completion would be:
A. No entry
B. B. Memorandum entry in RAOCO
C. Cash-collecting officer………………………………… 10,000
Buildings………………………………………………. 10,000
D. Cash-disbursing officer………………………………. 10,000
Buildings………………………………………………. 10,000

33. Using the same information Nos.25,28, 29, and 30, the entry to record the turnover
and acceptance of the building:
A. Buildings……………………………………………………… 10,000,000
Contraction In progress- agency
Assets Bldgs………………………………………….
10,000,000
B. Memorandum entry in RAOCO
C. Buildings…………………………………………………….. 9,990,000
Construction in progress- agency
Assets buildings………………………………………. 9,990,000
D. No entry is required.

34. Using the same information in No.33 except that turnover and acceptance of
completion is for public roads instead of building, the entry would be:
A. Roads, Highways and bridges…………………………… 9,990,000
Construction in progress- roads,
Highways, bridges………………………… 9,990,000
B. Public infrastructures………………………………………… 9,990,000
Construction in progress- roads
Highways, bridges…………………………. 9,990,000
C. Subsidy income from Nat’l- roads……………………… 10,000,000
Construction in progress- Roads,
Highways, bridges………………………… 10,000,000
d. Subsidy income from national Gov’t……………….. 9,990,000
Construction in progress- roads,
Highways, bridges…………………………. 9,990,000
35. Agency NNN issued check to Nongovernment organization (NGO’s) for fund
assistance amounting to P100,000. The entry to record this transaction would be:
A. No entry
B. B. Memorandum entry in RAOMO
C. Due from national Gov’t Agency……………….. 100,000
Cash-national treasury, MDS………………..
100,000
D. Other receivables……………………………………….. 100,000
Cash-national treasury, MDS………………… 100,000

36. Using the same information in No. 35, agency NNN received liquidation reports from
NGO’s amounting to P90,000. The entry to record this transaction would be:
A. No entry
B. Memorandum entry only is RAOMO
C. Grants and donations…………….……………………. 90,000
Due from national Gov’t. agency………….. 90,000
D. Grants and donation……………………………………. 90,000
Other receivables…………………………………. 90,000

37. Agency OOO had a balance of P1,000,000 unused NCA (Cash-NT,MDS) balance, what
would be the entry to adjust this unused NCA:
A. Subsidy income from Nat’l.Gov’t…………………… 1,000,000
Due fron NGA…………………………………………. 1,000,000
B. Subsidy income from Nat’l. Gov’t …………………. 1,000,000
Cash –national treasury,MDS…………………. 1,000,000
C. Cash-national treasury- MDS…………………………. 1,000,000
Subsidy income from Nat’l.Gov’t…………………… 1,000,000
D. No entry
38. Agency PPP had a P20,000 credit balance of Subsidy Income from National
Government, what would be the entry to record this transaction?
A. Subsidy Income from National Government……………………… P20,000,000
Income and Expense Summary ………………………………………. P20,000,000
B. Subsidy income from Nat’l. Gov’t …………………. 20,000,000
Cash –national treasury,MDS………………………. 20,000,000
C. Subsidy income from Nat’l. Gov’t …………………. 20,000,000
Due from national Gov’t. agency………….. 20,000,000
D. No entry
39. What is the entry to record the collection of P15,000,000 corporate income taxes by
the BIR in it’s agency books?
A. Memo entry
 B. Cash-collecting officer………………………………… 15,000,000
Income Tax Corporation ……………………………… 15,000,000
C. Cash-National treasury MDS………………………………… 15,000,000
Income Tax Corporation ……………………………… 15,000,000
D. Income Tax Corporation ……………………………… 15,000,000
Cash-collecting officer………………………………… 15,000,000

40. What is the entry on the Agency books to record the BIR’S remittance of the same
collection to the BIR?
A. Memo entry
B. Cash-collecting officer………………………………… 15,000,000
Income Tax Corporation ……………………………… 15,000,000
C. Cash-National treasury MDS………………………………… 15,000,000
Income Tax Corporation ……………………………… 15,000,000
D. Income Tax Corporation ……………………………… 15,000,000
Cash-collecting officer………………………………… 15,000,000
41. Agency CCC issued a bill for rent of office space to JTE Holdings, P50,000. The
Agency is authorized as per a special provision in the GAA to use receipts from
rentals for their operations. The entry on the Agency Books to record the foregoing
transactions would be?
A. Memo entry
B. Accounts Receivable ……………….. P50,000
Rent Income ………………………………..50,000
C. Accounts Receivable ……………….. P50,000
Due to BIR …………………………………50,000
D. Accounts Receivable ……………….. P50,000
SUBSIDY Income from the National Government …….. 50,000
42. Agency XXX conducted a seminar/conference and was able to collect seminar fees
from attendees totaling a P100,000. The authority to use such receipt 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 BIR. The entry to record the
remittance of the excess would be?
A. Seminar fees………………………………… 75,000
Cash in Bank LCCA …………………………… 75,000
B. Due to BIR ……………………………………………….75,000
Cash in Bank LCCA …………………………… 75,000
C. Rent Expense ……………………………………. 20,000
Office Supplies Expense ………………………. 5,000
 Due to BIR ………………………………………………75,000
Cash in Bank LCCA ……………………………… 100,000
D. Subsidy income from National Government 75,000
Cash in Bank LCCA …………………………………….75,000
43. Agency ABC sold a 50% motor vehicle which had an original costs of 300,000 for
200,000. 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 P500,000 for the purchase of said vehicle.
What is the entry to record the receipt from the disposal of the motor vehicle?

A. Cash-collecting officer………………………………… 200,000

Due to BIR ………………………………………………. 200,000
B. Cash-collecting officer………………………………… 200,000
Gain on sale Disposed asset ………………………. 200,000
C. Cash-collecting officer………………………………… 200,000
Accumulated Depreciation - vehicles …………… 150,000
Motor Vehicles ……………………………………………..300,000
Gain on sale Disposed asset ……………………….......50,000
D. Cash-collecting officer………………………………… 200,000
Accumulated Depreciation - vehicles …………… 150,000
Motor Vehicles ……………………………………………..300,000
Due to BIR ………………………............................... 50,000
44. Using the information in the number 43, what is the entry to record the remittance
of the collection to the BIR if any?
A. No necessary entry since there isno need to remit the collection to the BIR
B. Gain on sale of Disposed Assets ………….50,000
Government Equity ………………………………150,000
Cash-collecting officer………………………………… 200,000
C. Due to BIR ………………………............................... 200,000
Cash-collecting officer………………………………… 200,000
D. Subsidy income from National Government ….. 200,000
Cash-collecting officer………………………………… 200,000
45. Using the information in number 43, what is the entry to record the receipt of the
NCA for the purchase of new motor vehicle?
A. Memo entry
B. Cash-National treasury MDS………………………………… 300,000
Subsidy income from National Government …………….300,000
C. Cash-National treasury MDS………………………………… 450,000
Subsidy income from National Government …………….450,000
 D. Cash-National treasury MDS………………………………… 500,000
Subsidy income from National Government ……………. 500,000
46. Agency QQQ had the following account balances for the year 2011:
Dr(Cr)

Cash ……………………………………………………… P5,000,000

Receivables ………………………………………….. 10,000,000
Marketable Securities ……………………………. 18,000,000
Fixed Assets ………………………………………….. 95,000,000
Long Term Investment …………………………… 5,000,000
Other Assets ………………………………………….. 8,000,000
Inventories …………………………………………… 7,000,000
Prepaid Expenses ……………………………………. 2,000,000
Accumulated Depreciation …………........... (5,000,000)

Determine the current assets for the year 2011:

A. P55,000,000
B. 95,000,000
C. 145,000,000
D. 42,000,000

47. Agency RRR had the following account balances for the year 2011:

Current Assets ………………………………………………………… P10,000,000

Investment and Fixed Assets ………………………………….. 90,000,000
Other Assets …………………………………………………………… 5,000,000
Liabilities ………………………………………………………………….. 18,000,000
Contingent Liabilities ………………………………………………… 5,000,000
Contingent Assets ……………………………………………………. 3,000,000

Determine the Government Equity for the year 2011 :

A. P105,000,000
B. 85,000,000
C. 87,000,000
D. 82,000,000