TEST I

1) Guaranty Deposits (19903020) ₱ 515,615

Guaranty/Security Deposits Payable (20401040) ₱ 515,615
To recognize receipt of performance bond

2) NO ENTRY, since the performance bond is in the form of surety bond; only an entry to record the
release of performance bond upon completion of the project shall be made:
Guaranty/Security Deposits Payable (20401040) ₱ 515,615
Guaranty Deposits (19903020) ₱ 515,615

3) Other Receivables (10305990) ₱ 6,000

Cash - Treasury/Agency Deposit, Regular (10104010) ₱ 6,000
To recognize cancellation of deposited collections due to dishonored checks
Cash- Collecting Officers (10101010) ₱ 6,000
Other Receivables ₱ 6,000
To recognize replacement of dishonored check.
Cash - Treasury/Agency Deposit, Regular (10104010) ₱ 6,000
Cash- Collecting Officers (10101010) ₱ 6,000
To recognize the remittance of the replacement of dishonored check

4) Subsidy from National Government (40301010) ₱ 15,000

Cash- Collecting Officers (10101010) ₱ 15,000
To record remittance to BTr
5) IF CHECK ISSUED IS MDS CHECK:
Cash - Modified Disbursement Check, Regular (10104040) ₱ 25,000
Accounts Payable (20101010) ₱ 25,000
To recognize the cancellation of stale check
IF CHECK ISSUED IS A COMMERCIAL CHECK, debit to “Cash in Bank - Local Currency, Current Account”

6) Loss of Assets (50504090) ₱ 147,500

Due from Officers and Employees (10305020) ₱ 147,500
To record loss of asset

7) Due from Officers and Employees (10305020) ₱ 147,500

Accum. Depreciation - Office Equipment (10605021) ₱ 22,750
Office Equipment (10605020) ₱ 170,250
To derecognize Office Equipment

8) Cash - Collecting Officer (10101010) ₱ 1,500

Other Service Income (40201990) ₱ 1,500
To record forfeited cash overage

9) Cash - Collecting Officers (10101010) ₱ 10,000

Advances for Payroll (19901020) ₱ 10,000
To record collection of refund

10) Due from National Gov’t. Agency (BTr) (10303010) ₱ 360,000

Cash - Collecting Officers (10101010) ₱ 360,000
To record remittance to the national treasury

11) Guaranty/Security Deposits Payable (20401040) ₱ 360,000

Cash - Modified Disbursement Check, Regular (10104040) ₱ 360,000
To record release of performance bond upon completion of the project
12) Accounts Receivable (10301010) ₱ 110,000
Rent/Lease Income (40202050) ₱ 110,000
To record issuance of bill for the rent of office space.

13) Cash in Vault ₱ 50,000

Due from Officers and Employees (10305020) ₱ 50,000

To record receipt of settlement

14) Cash - Treasury/Agency Deposit, Regular (10104010) ₱ 65,520

Cash - Collecting Officers (10101010) ₱ 65,520
To record remittance to national treasury

15) Cash - Collecting Officers (10101010) ₱ 250,000

Guaranty/Security Deposits Payable (20401040) ₱ 250,000
To record the receipt of performance bond

16) Cash - Collecting Officers (10101010) ₱ 9,000

Advances to Officers and Employees (19901040) ₱ 9,000
To record refund of cash advance for travel

17) Accumulated Surplus/(Deficit) (30101010) ₱ 50,000

Accounts Payable (20101010) ₱ 50,000
To record cancellation of stale check
IF a commercial check was issued instead of MDS check, debit to “Cash in Bank-Local Currency,
Current Account” with account code 10102020.

18) Cash - Treasury/Agency Deposit, Regular (10104010) ₱ 30,000

Cash - Collecting Officers (10101010) ₱ 30,000
To recognize the remittance of the settlement of cash shortage
19) Cash - Collecting Officers (10101010) ₱ 20,000
Receivables - Disallowances/Charges (10305010) ₱ 20,000
To record the settlement of disallowance

20) Other Unearned Revenue (20502990) ₱ 20,000

Rent/Lease Income (40202050) ₱ 20,000
To record the earned portion of the rental