NATIONAL UNIVERSITY - MANILA Advanced Financial Accounting & Reporting Review

College of Business and Accountancy 13. Government Accounting

13. GOVERNMENT ACCOUNTING

COMPREHENSIVE PROBLEM
Department XYZ is a National Government Agency. A summary of transactions completed during the
agencys's operations for the year 2017 is as follows:

1. Allotment to the agency issued by the DBM, is broken down as follows:

Personal Services P1,500
Maintenance and Other Operating Expenses 3,000
Capital Outlay 5,500
2. Receipt of Notice of Cash Allocation from DBM (net of tax) for current year's appropriation, P8,000.
3. Receipt of Office Equipment per delivery receipt and inspection and acceptance report, P1,200.
4. Receipt of office supplies inventory per delivery and inspection and acceptance report, P200.
5. Payment of the following MOOE:
Meralco Bill P800
PLDT 200
Water 100
Security 350
Janitorial 250
Withholding taxes (85)
6. Grant of cash advance for traveling expenses, P1,500.
7. Payable to Officers and Employees upon approval of payroll:
Salaries and wages P550
PERA 60
Withholding taxes 50
GSIS 15
NATIONAL UNIVERSITY - MANILA Advanced Financial Accounting & Reporting Review
College of Business and Accountancy 13. Government Accounting

PAG-IBIG 10
Philhealth 5
8. Grant of cash advance for payroll.
9. Liquidation of payroll fund.
10. Liquidation of cash advance for travel – foreign, P1,000.
11. Receipt and deposit of refund of excess cash advance for traveling expenses.
12. Payment of accounts payable for the purchase of office equipment and office supplies inventory as
follows:
Office equipment P950
Office supplies inventory 150
Withholding taxes 300
13. Billing of the following revenues and income:
Other service income P5,000
Sales revenue 7,000
14. Collection of billed income, P900.
15. Remittance of income to Btr, P750.
16. Receipt of constructive receipt of NCA per TRA for withholding taxes, P635.
17. Remittance of withholding taxes thru TRA.
18. Remittance of the following:
GSIS P10
PAG-IBIG 7
PhilHealth 3

Additional data:
a. Issuance of office supplies based on Monthly Report of Supplies and Materials Issued and supporting
documents, P160.
b. Depreciation of Office Equipment, 10%
c. Unused NCA