Chapter 6-7 TB (Part 2) Flashcards
Journal entries
An Internal Revenue Allotment is transferred from DBM to an LGU.
Dr. Financial Assistance to LGUs
Cr. Cash-Modified Disbursement System, Regular
The collecting officer of Dumaguete City collected checks from the tenants of a government-owned building in the city. When depositing the collections to its depository bank (Land Bank of the Philippines) one of the checks has been dishonored.
Cancellation of the OR due to the dishonored check, current year.
Dr. Other Receivables
Cr. Cash-Treasury/Agency Deposit, Regular
The collecting officer of Dumaguete City collected checks from the tenants of a government-owned building in the city. When depositing the collections to its depository bank (Land Bank of the Philippines) one of the checks has been dishonored.
If the dishonored check pertains to prior year’s deposited collections, what is the pro forma entry?
Dr. Other Receivables
Cr. Accumulated Surplus/(Deficit)
The collecting officer of Dumaguete City collected checks from the tenants of a government-owned building in the city. When depositing the collections to its depository bank (Land Bank of the Philippines) one of the checks has been dishonored.
Replacement of dishonored check.
Dr. Cash-Collecting Officers
Cr. Other Receivables
The collecting officer of Dumaguete City collected checks from the tenants of a government-owned building in the city. When depositing the collections to its depository bank (Land Bank of the Philippines) one of the checks has been dishonored.
Remittance of the replacement of dishonored checks.
Dr. Cash-Treasury/Agency Deposit, Regular
Cr. Cash-Collecting Officer
A resident auditor discovered cash shortages of the collecting officer of Agency B. The collecting officer settles the cash shortages. It is deposited to the Savings Account.
Agency B: To record the discovery of cash shortage.
Dr. Due from Officers and Employees
Cr. Cash-Collecting Officer
A resident auditor discovered cash shortages of the collecting officer of Agency B. The collecting officer settles the cash shortages. It is deposited to the Savings Account.
Agency B: To record the restitution of shortage and issuance of official receipt
Dr. Cash-Collecting Officer
Cr. Due from Officers and Employees
A resident auditor discovered cash shortages of the collecting officer of Agency B. The collecting officer settles the cash shortages. It is deposited to the Savings Account.
Agency B: To record the remittance to the Bureau of Treasury
Dr. Cash-Treasury/Agency Deposit, Regular
Cr. Cash-Collecting Officer
The resident auditor of Agency T, in a cash examination, discovered cash overage.
Books of Agency T: record the forfeited cash overage
Dr. Cash-Collecting Officer
Cr. Miscellaneous Income
The resident auditor of Agency T, in a cash examination, discovered cash overage.
Books of Agency T: record deposit to the Bureau of Treasury
Dr. Cash-Treasury/Agency Deposit, Regular
Cr. Cash-Collecting Officer
The Collecting Officer of DSWD received cash for the performance bond from Contractor ALPHA to guarantee full performance of their contract. The said amount was remitted to the Bureau of Treasury.
DSWD entry to recognize collection of performance bond/security deposits.
Dr. Cash-Collecting Officer
Cr. Guaranty/Security Deposits Payable
The Collecting Officer of DSWD received cash for the performance bond from Contractor ALPHA to guarantee full performance of their contract. The said amount was remitted to the Bureau of Treasury.
DSWD entry to remit the collections to the National Treasury.
Dr. Cash-Treasury/Agency Deposit, Trust
Cr. Cash-Collecting Officer
A check issued by Agency M becomes stale.
Agency M: record the cancellation of a stale check issued in the previous year
Dr. Accumulated Surplus/(Deficit)
Cr. Accounts Payable
A check issued by Agency M becomes stale.
Agency M: record the receipt of NCA for the prior year’s account
Dr. Cash-Modified Disbursement System, Regular
Cr. Subsidy from National Government
A check issued by Agency M becomes stale.
Agency M: To record the issuance of a new check.
Dr. Accounts Payable
Cr. Cash-Modified Disbursement System, Regular
A check issued by Agency M becomes stale.
In case the check becomes stale in the current year and replenished in the same year, Agency M: record cancellation of stale check issued in the current year
Dr. Cash-Modified Disbursement System, Regular
Cr. Accounts Payable
A check issued by Agency M becomes stale.
Agency M: record the issuance of a new check
Dr. Accounts Payable
Cr. Cash-Modified Disbursement System, Regular
Adjusting entries and closing entries:
A. Unused or unutilized Notice of Cash Allocation at the end of the accounting period.
Dr. Subsidy from National Government
Cr. Cash-Modified Disbursement System, Regular
Adjusting entries and closing entries:
B. Recognition of the utilized or consumed portion of the prepaid rent.
Dr. Rent/Lease Expense
Cr. Prepaid Rent
Adjusting entries and closing entries:
C. Interest already earned but not yet collected nor billed by the agency as of the end of the year.
Dr. Interest Receivable
Cr. Interest Income
Adjusting entries and closing entries:
D. Recognition of all the expenses paid under the petty cash in case no replenishment could be made for lack of fund.
Dr. Expense Account
Cr. Petty Cash
Adjusting entries and closing entries:
E. Restoration of all unreleased checks.
Dr. Cash in Bank, Local Currency, Current
Cr. Accounts Payable
Adjusting entries and closing entries:
F. Take up impairment losses because of uncertainty arising about the collectability of an amount already included in revenue.
Dr. Impairment loss-Loans and Receivable
Cr. Allowance for Impairment - Accounts Receivable
Adjusting entries and closing entries:
G. Close the balance of all income accounts to Revenue and Expense Summary account.
Dr. Interest Income
Cr. Revenue and Expense Summary
Adjusting entries and closing entries:
H. Close the balance of all expense accounts to Revenue and Expense Summary account.
Dr. Revenue and Expense Summary
Cr. Rent/Lease Expense
Cr. Impairment Loss - Loans and Receivables
Adjusting entries and closing entries:
I. Close the balance of the Revenue and Expense Summary account to the Accumulated Surplus/Deficit Account
Dr. Revenue and Expense Summary
Cr. Accumulated Surplus/(Deficit)
Miscellaneous transactions:
A. To record the discovery of cash shortages of collecting officers.
Dr. Due from Officers and Employees
Cr. Cash-Collecting Officers
Miscellaneous transactions:
B. To record restitution of shortage and issuance of official receipt.
Dr. Cash-Collecting Officers
Cr. Due from Officers and Employees
Miscellaneous transactions:
C. To record loss of office equipment due to theft.
Dr. Due from Officers and Employees
Dr. Accumulated Depreciation-Office Equipment
Cr. Office Equipment
Miscellaneous transactions:
D. To record the grant of relief from accountability.
Dr. Loss of Assets
Cr. Due from Officers and Employees
Miscellaneous transactions:
E. In case of denial of request for relief of accountability, record the receipt of settlement.
Dr. Cash-Collecting Officers
Cr. Due from Officers and Employees
Miscellaneous transactions:
F. To recognize forfeiture of cash overage of the Collecting Officer.
Dr. Cash - Collecting Officers
Cr. Miscellaneous Income
Miscellaneous transactions:
G. We’ve been joining this search for many years now and it is our hope that we will still qualify this year. To recognize cash shortage of a Collecting Officer.
Dr. Due from Officers and Employees
Cr. Cash - Collecting Officers
Miscellaneous transactions:
H. To recognize restitution of cash shortage.
Dr. Cash - Collecting Officers
Cr. Due from Officers and Employees
