$ A L MORADIE

).,1,1:.r

CCO 3123-q3 setb

.. il'rr. - II{EORY- IDENTIFICATION.i;i,i'LLUrtv'\7"'The1e-ay

expenditures which could not pass the test of prudencrl or the required diligencc of a

;,,^r,.rr.^,r.,.ri. r,r - g*d fl$ut of a family, theteby not rpsponsive to the exigincies of the service. ----e'

I'rr'4'r\\'urr('"'!(L 2.*/ Expenditures inouned wittrout knowledge or sense of what is riglrt, reasonable and just and not-,

r.-{r :.,.1a4 _ _.ryided or restiained by conscience. Unc,a,r"rrcr+n,..r17]i,t' *" 3'/ These-are the o<penditures incurred without aOtreiing to estabtished rules, regulations, procedurallr t \,t guidelines, policies, princrples or p,ractices that have-gained rccognition in law. 1,,, or,i) ,

4l / It refers to a d'-rcument showing tneaisaggr"gution ofag,ency ort"ait *r ir" ;.b.nents like,C.r ,,i i . ,,',"1. *: ,][|19 others, by source of appropriafions, by allotmenlcl"ir *a by need of cleararrce.d "

f

'l "

,i , ,, .. " : 5. 'r Additional appropriation :uthorized by law io augment the originai appropriations which provedi'lll' to be inadequate or insufticient for the particrrlar purpose inteiucd d;; t" ;";;ic, potiticat or

social conditions"b A'n 5.' TI: l|w letting the operating budget of the Republic of the Philippines for a particular fiscal year.()'" '", 't I f^rfi '7, /T\is includes the evaluatiin oifirrancial r*ports and perforiiumce of the different agencies. " ' ' I togettrdr with and audit conducted b1, COA. inuAget p.*"rg --

r tJ.; , .-1'ltgfem to the commitnent by a government agency arising'from &n act of a duly authorized0 {"1r

tr'r'i" a* official'which binds the governm€nt to the imriediate or eylntual paSment of a sum of money.

'. a.

b.c.'

,d.+,/.".A

Problem I

PrcblemS

lhgfillowing selected transactions of a national government ugency include rhefottowing:Paid the bill for PLDT, P60,000, less tax. 3 j r-1!11

- Sr, r )s0

PaidthebillforMERALCO,pl20r000,lesstax., ?,!r, rr.zr y?oPaii the bill for office supplies on accoung p40,000. r 2, lj?.ii6 I ,', 6f1 ,a

Paid the bill for office equipmen! p50,000. 1 t ,v7 $.gi - tf:"-.i31._.1ifrow much is the total anmant of tuos ry!l!leldfor'1601-E? M'l .* o,q 3,q28SlHow mueh is the total,amount eedited to accoad code rualilfffuffi-, .41 3 q a y . g ?

r?5h -M Di Regulor =::_---::=

. On Novembor 16, 2013, an outsido sup,plier (winning biddc) dolivorod offico equipment with aninvoicc prtcc of P120,000 to e nxlonal govffnmmt igpmey. Thc crttrrtrd llfc ofthc auet ir 5 yaas.

z{ frow much b thc trd moantpoW to thc srypthr? ltt filh.+, l'-oj 9'? - G1 riz€'.fi",,*/now

rurch ts the book vAheil*e e.qutpnAr on Dehba 31, 2011? '1, W

to:!-l n 4Z , t4 2-.8

,,"'.

JS7, 11

4.(' r:'r: u

:113,5?1.4)

Signed n contract for the.constnr*ion of buitding P50,000,009_ . .Faid advances to conbactor P5,000.0$0.Recoivsd 1( progress billiry;s-S0%Paid the bill, net of advancee and ta:r.IIow mvch b thc nd frruunt pald to the conlrado?? lS V3 ?(?'iIf tha allofrrunt ncotwdfor ctpltol oatlry h PISDM; how much ls the unobllgeted balance ofalloarcntfor CO? ttofou, out

Problem jA governmo,nt agency ordered an oflice equipment forY200,000 through procurement sbrvic€s of

DBM on June 15, 2013. The equipment was delivered to thq governmeot ag€dtcy on August 15, 2013. Theasset has a useful life of 5 years.

o{,flow much ts the anmunt crcdud an occount code I0E/141-M$10 zott ooo '

4tr'frowmrchlsthebookvohtcoftheequfpnm*onDecember3lr.2011? t4o ooavcta-T: 7 { ' ,c(, la'o

2dl osi 'rlt A{,1 1 /f,Jdy'J 3ka)u -1 a/r- =- /z c"tw

Probleml -d#ffi

a.h

d.e.3.t,

The following account balargps were taken from the Uo^o,t t Su govem4Leg! gffncyi Salatieg andPS wqeel-Beguar,.H#q0gq PER,gileqqooo; 9.flq4 suppli6tcpf;pggles, pa.Dffi(G water Effies,wqsesresu*^ H'*;ffimIffidHfffii; ,oPasffi; Bte.tl8i

P, R/ff$ ffiO; Dedli&itt('Expegpes, P15ff[0; Subsidy fi6m Sgtional,Ggvernment {r,750,000; - rI Misccllaneops Income, (Z,SOqlntcnefi Experfo, Pl'{d0; nT! Chdrfus, P2rX59, n"trcf:ft-an-il Lifets

PAsWo; Utecfi&r!ffipqp9s, r7ffiflTelep[oHffipenses,P2ffi; ftravclling Expenses, P|6&6; t^Wbffi PERA:}8E;Plffii ; 9.ryq9 riupprcs-D)Q!,qrc8, rrr4Juu; warer E{IrcqFes,

lnstuanao lyomiums' 80F,000; Philhealth9: How much is the totalPe

Fg0#0r rag-ibig Contributipp*s4ofg0. ntL%

"D{ How nuch ls the totalPersoJid Servtces? g+L{ t4N Ye rLs?

+ 68?,roo tL.b Eornucf fitmtotrffrfrfntonrnocrndOthor.{toredngoryrnrorl 63e Ol r(' l4:s',5

tvIA

J

){. How much ls the erceca of lncome over crpencet?

Ttr o,o, M'0E4,r., n 4l st 5cu( {?so I ?' s'o )?2s NE 4s.o ***+*enC+*+** I

ftoEE:?5Trq[||7s-v(nolinclud-cd.:ungl''+.a r E 22.5 ex?' )

-f - , tu, Y:* '9 i'; ltt)

,,?6s,coo G82,5co :=11'=':='-=F.',.,.:;r-q

====5,

ACCO 3123-Q4

Problem IThe seleaedtonsaetions of a munlclpurily include the fallowlnst&. Rooorded thu oiul Properry ur< receiv*.ble, P100,000,00drsd epoiirrlt eriucrrien fuad,P100,000,000.@oth looal ta:res are based on 196 of the assessed value of rcal properties owned bythe taxpayers).

b. Roceivod the Notioe of frpdqS Chsok Isruod ftom tho DBM for the rhare of ths mrurioipelrtyfrom Internsl Rcvenue collections, p250,000,000.

c.d.

Received the bank crodit merno for its sharo of intemal r€venuo collections, p100,000,000.Received p&ymcr* &om roatr proporty taxpeyGrs:

Real Property Tax Recoivable-p40,000,000Special Education Tax Receivable,p40,000,000 :

Garbage FeesP500,000Deposited the collections from real pr,rpertl,taxpayers.

?lrtri.prt{ the real prop€rry tan coliections based on 40-35-2r sharing.pistributad the special educatbn tax colleotionr based on e i&,so uh*"g.Remittsd the s[are of other local government units for real and spooial eloention t :r.Signed a contract for the oonstnrtion of building, Contract-Pricc-p1gg 1dillion.Adrrannu to oontrsrol'1pro htdo, f li|6 of thiioonfmt p{oo,lqcgiyed the proqress billings from the contacror, 30% coiarletion.Paid the aurount due to the sontraotor. Doduotions ale as fodbws:

Recoupmeut ofthe advances,20% ofthe billingsRetention, 107o of the billfurgs'Wittrholrli ng tax, zyo, Syo

Required: Based on the above infonnotion,farrnrwfie trawoctions.

Prublem ZOn July 1, 2014, a national government agqr$y rovised the estimttsd usoful lifo of its oquipmeirt from 10y-!q.r to t ycm, Tho cqulpmont wrr ot$nrlly pwehrncd rnd do[vond on Bcptmhor I l' 2Ol3 oo*ingP500,000.

l. Dstermine the book value ofthe equipment op December 31,!!W. {$E, ?gS2. Deternline the dtpreciation expensflr fi2014.

Problem3A government agenoy orderrcd an office equilpment for P300,000 thrcugh procruemeirt services of DBMon June ls,zll4.The equipme,nt was deliverrcd to the government agency on July 15, 2014. The asset has

a useful.life of 5 years.

Xgow mgch is the amount credited to account code 1-01-M-040? 3oo ' ooo*4/H;;ffih

is the book value of the equipme,nt on f)ecember lll, 2076? Z?ssID (

,/ _*

TIIEORY1. Tha type ofbutlgettng mendoned inthe 2015 Budget Call, replacing BottomUp

Budgeting.2. A budgeting approach that uses perfonnance information to inform Congress and the

public aboutthe outputs aud outcomes an agency is committing to deliver in exchange forits budget.

e.

f.g.h.i.j.k.t.

3oel boug'4.ooo )

(zz ,soo )

Z23,SDD

rA. DELH M. Lrz ;l :",j t '

t/"

, ry{u.rDENTrFrcATroN.

ltlrfi*t;l f The.phase ln the budget pnoces$ whlch lncludes the tssuance of spectatA,t,totment Release order and.. A)^,.^ IotlceofCashAllocatlontothedlfferentgo\rernmentagencles. Br,dqrI ev,,th*/il;[;;+;[,t.(1^ 9P*

* The.government agency responslble wlth the lmptementauon of thelpprooo ouog; _AA!I(A: () aunhgffiloQllsrucd bryth-cDBMtothr lucnsy,Xt,rktr rll$6htolnqrrobltfr6ona6-r snc-"m"0a :ill[:,ii h"m"#*-+l,rcy contarnrn'the arrthorrzatron,^rLA lt Acondltlonsand ernountof aaagancyalhiatlon, hO

rre -r! vr-t"

O z Lulb9[I3iiane madslxlaltor other lesl$htlve-eoectne$ for paymcntr to bc mde wtth tunds of the

^A., d governmentunderspecifledcondlfionsand/orforspecH}purposes. [r47ttl..Jafi,i, dpfrcpr.,i n,i iD b M W The government' ageney mandated to prCImote the sound, efftcient end efldcthle *ne*i Lm Lt

government resources as instrument ln the achievement of national socio-economic and political

$o o -.fiH:ffi,il1,::,:rJtfl1".;3fr* sovemment agencres to wrturaw cash from the Nauonar rreasury,,

^ n , . ., -/ lhroush

tlre lssuance of MDS checks or other authorlzed nrode of dlsbun"r"nE_Nlff_ - -'-"-

t40s chlcts /E' 9*k issued by the gorrcmment agencles chargeable against the account orlreireailLr of the2 26s r.ir,oe ifl:'3,,$::..i1l.ilh t ({\@

sARo (9 rnern-gElg-!,rlttu"o-rrtrtinffiiffiEa,{6ithebudsetnrenarauorr. _ "B_u4$et qgtt

Quiz2& Received allotment for the following:co lo,ooo,ooo

PS 5,000,000MOOE 2O,OOO,0OOFE sOO,OCIo

) Roceiyed I,lO{ for the following:P4500,000

e000,000sp00p00

coPS

MOOE

no on*13

COsh - MD( (egulrlr' Q,6oo,ooo ni

$t+.G Y 1,6oo,oo0S,\g

FE __LQ),000 0 . r r,r, pet"l1 Cosh Ftrt* .?0 , oo t>Establlshed pettycashtund;p3o,ooo L{sh- p1e5 Reguior 30,ooo

?s E*r, ro,oouReolenlshed the oew cash fund: offlce liupplles-P10,000; postsge-3,o0ii; Representation-p1000..1,*: ,*pundrase*gffipeCqulnmantftom.a.dsalerwith-chargelnvolce-PJO,0OO*y-hT,-*LYJ/SD,ooo -' -*"*6i[:trPt \g,0o0Paid the liabilfi for the delfuered equlprnert in no. 5, net of applicable tax. r..9

Recordede,,penresandllabillrry forthefulbwing: '[P s1}'6) J

salarles.regular Pl,su),ooo CIJn - i,l0( F'cq 41' 3zl '4j

salarles-casual 300,000 D ue to BIN 2' b?B '57

a:k'

&"-S:.v:

fS llZtoo.b

*f ; tlz,0ot PERA 150,000 lQ flr oarr sr\ - Rr{. qlug,orr>

\ ^n llz'oo0 oeductlons: (v{ ' krjual 31tu 't'roc>

' o' (^h'r'rls fu0. tob rooo lilithholdingtax 300,0m Pf R A Ist rooo

Oul io BiiJ "i*,

Life&ret.Premlums 100,000 Due r0 glR 4!io'00o

)M1.'.to OGE Frooo Pag-{bigpremlums 2o,o0o -- . ) i;--; ll **r

'r-'olr

..oxh.qros (m . ,L-o r@ Philhealtltr premiums 10,000 1'*o. 'tr 6 p g lo roDa

i-,*^r.l-r. go.. /: Remltted the employeesdeductlonsotceptwithholdingtar , ( tro oa) rr 6 (sl 5 loo'cpo' ' '

la*lt J.eg* %(rrred MDS check for parrrdl advancas related Mtl$J;SetlqotD .rsh- LCcA r3+p ,o o

*fr;ffi:r*Ilr*rrnr}'1l:lm}-f'ts'#;j?:ffi '1,;] "u *" ni, ;j:rr

a{..8r.?,lrtru?-1. ,-- Granted cash aq€nccfortmvel, pso,ooo. tnsh-r0oY n1' tEo0pot 4 ' V Lo 1ory

)Teletone e$'dW Paid MERAIOObllhp150,000, lmstax.cotL-uPJ *i.Z0,lzr PaU PLDT blll (landllne)-P3Q0(Xf, less tax.0'rr ^roBl( ldlffi paymentof r.robillzatlonfeetocontractorof buildirngS. P500,000.

) , ad necelved the progress bllllngs from.the contEctor, 3096 stige of completlon. contract prlce is P5,000,000.

2.O. Paid the bill ln no. 19, net of advances and tax'

zt-23. Remttted the wlthholding tares thru.1he 'tRA. (Separatp,qntries for each lrype of tax.) o,)\):'"1'*^ *

z4-zs. Receiptoffin"rullringroi"tiIluitiifg;.r%;;i;,i#Jrzentries) wIAx - I"t' 7'b. iu,iO - T'f26. Flnal payrnent of bulldin& net of tax'

[ - ?17. Paid rent iln advance, P120,000, lesstax' lb' II ) 0\{' - Aqencq txstr $ooo ooo

ftp,l " t50u ooo

[ilv' tr LotlraLtttt 3Sn0 00D

I

r} P p o' tx,n+ ' lLo 1e6 o,/-/' I cos\'mros(eq-' loqrl?c'?{fue fu '0 tR' lo,?1.{ '2q

flml-b{' W h**

ACCO 3123-Q2 A]\rD Q3 T{I\' DELIA, M, LTL

Q2- PROBLEMS n

MAYON Association , a non-profit organilation, had the following tuansaction$: As a rEsult of its firndraising proglam, cash contributions of P32$300 were received.. Fg1S,0OO was uo,rtetricte4 and pto,ooow-a1 restricted for project operating costs. lrr addition, unconditioffipi6ffie to give totalled P100,000, ofwhich P80,000 was uresticted and P20,000 restricted for acquisition of equipment.

1. what arnount should be credited to (-ronhibutions- unrestricted?2. What amount should be credited to Contibutions-Temporarily Restictrd?

oNDoY Arsoctatlon rorolvcd lr00,rg-oo &om an i&rividual "fr6@hr r,,G to e cpecial proJoct . rfthat spryial-_plojectis not accoffiEffiI-within six morrrG, tilEffiifi-*Ifr*rt.a that the money beretumed. OXOOy has not yet undertaken the projr:ct. Two months :remain in tn" time pcriod specifieabythe donor. ..

3. What amount should he reported as,r:ontibutions rcvenue

ryOAH is a non'profit organizatibn that provides services to senior citizens. 1te organization employs afull-time staffof 10 people at an annrial cost of P150,000. In additiox, trno vofurnteers work as part-timesecretaries replacing last year's full-tine semetary who eamed P10,000. Serrices performed by threevgluntqers for special events had an estimated value of P15,000. Thene three yolunte"rs *rr" employeesof local'E$nesses, andthey received small.,value itr:ms forthsir partir:ipation-4. What smount ihoutd tho orgaalzatlon repofi for 4lllgl4:fdggmsg:gr rclarcd, to the above

items?

A non-profit miversityhad the following hansactions:a Student tuition and other fees of P700,000 urere ass.essed, of ,ivhich P500,000 has been collected

and P10,000 is estimated to be uncollectible.b. Revenue billed for dormitories (an rmxiliary' enterprise) is P2tr0,000, c,f which p50,000 is not yet

received.c- Expenses T ptd

_11{ rysigned to the followiug: lnstructi,on-P300,000; Research-p200,000;Student sr:rvices-P I 00,000.

d- Expenses related to Au"xiliary enterprises of p100,000 were paid-e. A goverr;ment grant of P150,000 was received to be used exclusively for defraying costs of

holding confere,nces on the topic of research.

5.6.

How nauch is the nel4ggag[income over expenses) under e4gca{@ and"SHow much is the frcess of income over expenses under'lauxlliary ent?ryrises"

revenue?

A non-profithospital had the following transactions;

a. Patients urere billed for the following gross charges: Room antl board-P680,000; Physician's care-

P220,000; Laboratory and radiology-P 1 I 0,000.b. Cash Revenues were reported from: Newsstan$ and snack bar-P15,000; Parkhg lot charges-

Coltected P400,000 receivables from patients.

A charity allowance of P50,000 was granted to indigent patients.

Contactual adjustnnents granted to patients for Medicare charg;es totaled P60,000.

How much is the nelluorlnt presented under Fatient Servf ce \gyenr:t?Howmuchistheo@

A non-profit college showed the following irmounts to beused for:Renewal and replacement of college plant assets P500,000Retirement of indebtedness orr college plant assets 300,000Purchase of plant assets for college purposes 400,000

9. What totat amount shoutd be included in the coltege's plant fi4rds?

A fouodation received a permauent encpwpent of 8199,00Qjn 2014, from Mr. Garoia. The endowmentassets were investod in publicly ftaded s,iEffities, and the foundation is permiued to choose suitable

c.d.

e.

7.

8.

Santa Clara Hosnital a non-pmfit hospitnl affiliated with ainformation for thl ,,''o' *al;$;l$:L?:frffi;#ri,-* tu, rates

Bad debts expenseConhactual adjustnentAllowance fo. ai*o*t to hospital emptroyees

religious goup, reported the {bllowing

P 1,960,000

20,000l7g,lg030,000

l1' oa hospttnl;ffiffiffiffifl vcar cncrcd Doconnbor 31, 2014, what amount should

The following srfts ary -received in 2013 by a rurt-for-profit org;anization:1' P200'000 specifred ty tn" u-** iri"".,ir"o rr pay salaries.?. PI00,000 for newconferencs room firnitrre.3. P50.,000 to be hetd fri;r, y";-ffi**Ling

"xpenaeo.The salaries are paid in 2014 and the confbrence room funiture is purchased in 2013.

$:::::l:Ioul{ be shoum as an increase in*yjyn$ourdborylutffi'#column to the Unrestn"r*ffiilffi rarily Rcrtrictsd

t2.13,

Q3A.

:i-:?--+:

B.

JOURNAL ENTRIES and STATEIvTENT OF ACTTVTIIESvHwo

i. Received the following pledges: Unrestricted-P300,000; ResEicted for the purchase of plantassets-P500,000.

2. i0% of the receivables are estimated to be uncollectible.3. collected half of the pledges both.restricted aud unrestricted-4- nodated sernice related to eomrounit-v, pS0,0005. Purchased Equipmen! P100,000.

UNIVERSITIES A}ID COLLEGESl. Shrdent tuition and other fees of P700,000 were assessed, of which P500,000 has been collected

and P10,000 is esrimated to be unco.llectible.2- Re*gnu9 bitted for dormitories (an arxitiary enterprise) is P200,000, of which p50,000 is nor yet

received.3' !*p"ot t at€ ptd

11d essigned tr:r the following: Insfiuct[on-P300,000; Research-p200,000;Student sendces-P I 00,000.

4. Expensesrelated tb Arxiliary enteq:rises of p100,000 were paid.5' A governrment grant of P150,000 was received to Ue usia exclusirrely for defraying costs ofholding confercnces on the topic of :research,

HOSPITALS/I{EALTT{ CARE1' Patients were billed forthe following_gross charges: Room and board-p680,000; physician,s care-

P220,000; Laboratory and radiologipt 10,000.2. cash Revenues were rc,ported arom: Neursstand and srac}: barfr5,000; parking lot charges-

P I 0,000; Vending machines-p5,000.

i. Collected P400,000 receivables fircrm patients.

1. A charity allowance of p50,000 was granted to indigent patients.5. contactual adjustuents granted to pilients for Med]care char$,,es totaled p60,000.

C.

Auit 4 I

e/ra/r,r ACCO 3123 lvIA. DELIA M.LIZ

Test I. IDE]rffpiCATION.

LM"fundg \-r4:gestablished by colleges or,niversities to aceoult lqr resourees ther ar: *,,.uilable

c*ti6'onn2 *Tffitr#H*t#ffilffi*ffi*m*t orcansera'oa

iffi;t, "fu-d&-*t-i:;H:,;:ltffi:ffi,:'Hg

ffi:fr; timc perrod or after a designaredev-eD-t, ?t-which point the rresouroes are added io the uoreshicted currmt t"a, ,-fo* ,n"

-,..i#*-*4----1m"ff'fi ,mffi*$,ffi*:H;T#:ffi r,s,ins,losses,andreorassincationDstwee,rr classes of net asscts or chmges innet assets.

Unrrsfrr*d Sr-rnesorEces available..for genaal ofro,tio*, with no rlsfiictious placed upon those.1't, - ,/g,o*"ls by an outsider, and other eich,enge iansactions.

?n+;(k v6l1&V rr'me rnajor revexrue accotmt for a hospilal, in which lhe grnss r€venges earned are

J 1,. ^,/ reooxledonaqaogrualbasisatestablishrldrat$. e --- --

t.{1$iPu+6di _ Al0nte rucctrnd &om outrldr sourclr lbr e suuont opoldar Fryporc rpoctficd by tho

;; --

;7*ff;;consisting of resources thar are available for loaos to sfid€ffs.[^r"dr+"q 9; o A tJDe of firnd formed when cash or othcr p*perncs are traasferred to the instihrtion

r*.*ry*p"*^fi, ffi"?fiti:ilrt*ffiffi;mf.', the inco-me produced bv zuch *,*", can be

lacuda,rory $ x A t)ry. of firnd formed whea cash or other properties thst are transferred to the institutionh^"d / subjttt-P 1l! requirement tha specified palme,nts be made to a designated #;"*oI

duriryhis lifetime

'1-2,

Givethe three classification of net assets.

Give the four classification of plant futds.

F

T

1

'l-est II. 'IKl€|ts; UI(rALUts.

AWllft"irton Expense is not rec,orded by non-profit organiizations.tlc;Lc z.y'LrtCollectiod' or *Works of fut" should not be recogni:zed as contibutionreventrc.

TrA ions of aruriversity bookstore are classified as arnriliary acfrvity.t,r,* a.t#aarbuted asset is recognize.d as rea'$uue by a non-profit organizationyp {.rnfueaccounting period inwhich pledged revenues arc recognized is dependent on donor

specifications.T rtrp 6r, 0nconditic,lal Pledges are recognized a$ reve,llues in thc p"=iod thc promisc is collected.

taba, 7y Non-profit organizations afe generally exempted ftom torationFaW 8.>Cha{ffservices aro excluded from the gposs patie,nt servise r€vcouE,

1p 9.-C6fuactual adjusments are deductions fiom gross patient senrice in determining net

pa@rfservicerevenuefaVt 1g,,filoUitional promise to give may be recognized es revenrrc even before the satisfaction of

the conditions.

Test III. ENUMERATION.

11.

2.3.4.

Give the two general classffioation ofrevenues in an educatiou institution.Identiff the main revonue in a hospital.

'6 P^+rclrl N*k<sll.aullgltrftidd Nt+As&

4,hlanlfwdt y4-?umt