NOT-FOR-PROFIT ORGANIZATION

Part 1
1. Psalm Hospital, a private nonprofit hospital, earned P500,000 revenues from its gift shop located at the
lobby and spent P100,000 on research during the year ended December 31,2020. The P100,000 spent on
research was part of a P150,000 contribution received during December of 2018 from a donor who
stipulated that the donation be used for medical research. None of the gift shop revenues were spent in
2020. What was the increase in unrestricted net assets from the events that occurred during 2020?
a. 600,000
b. 400,000
c. 500,000
d. 550,000

2. AAA Hospital, a nonprofit hospital affiliated with a private university, reported the following:

Cash contributions received from donors for acquisition of computer equipment 300,000
Proceeds from sales of hospital gift shop and snack bar 150,000
Dividend income not restricted by donor 50,000

What amount should be reported as “other revenue and gains” in the statement of activities?
a. 50,000
b. 150,000
c. 200,000
d. 500,000

3. Rev University, a nonprofit university assessed its students P600,000 for tuition and miscellaneous fees
for the 2020 summer session. The net amount realized was only P580,000 because of the following
reductions:

Tuition remissions granted to faculty member families 6,000

Class cancelation refunds 14,000

How much unrestricted current fund revenues from tuition and miscellaneous fees should Rev
University report for the period?
a. 580,000
b. 586,000
c. 594,000
d. 600,000

4. The following expenditures were incurred by a nonprofit botanical society:

Printing of annual report 25, 000

Unsolicited merchandise sent to encourage contributions 50,000

What amount should be classified as fund-raising costs in the society’s activity statement?
a. 0
b. 25,000
c. 50,000
d. 75,000

5. The following funds were among those held by URS at December 31, 2020:

Principal Specified by the Donor as Non-Expendable 1,250,000

Principal Expendable After the Year 2020 750,000
Principal Designated from Current Funds 250,000

What amount should be classified as regular endowment funds?

a. 250,000
b. 750,000
c. 1,250,000
d. 2,250,000

6. In 2020, the board of trustees of TCMC Private University designated P250,000 from its current funds for
college scholarships. Also in 2020, the university received bequest of P500,000 from an estate of a
benefactor who specified that the bequest was to be used for hiring teachers to tutor handicapped
students. None of the bequest has been spent. What amount should be accounted for as restricted net
assets?
a. 0
b. 250,000
c. 500,000
d. 750,000

7. In April 2020, Ruth donated P250,000 cash to her church, with the stipulation that the income generated
from this gift is to be paid to Claire during her lifetime. The conditions of this donation are that, after
Ruth dies, the principal can be used by the church for any purpose voted on by the church elders. The
church received interest of P20,000 on the P250,000 for the year ended March 31, 2021 and the interest
was remitted to Ruth. In the church’s March 31, 2021 financial statements
a. P20,000 should be reported under support and revenue in the activity statement
b. P230,000 should be reported under support and revenue in the activity statement
c. P250,000 should be reported as deferred support in the balance sheet.
d. The gift and its terms should be disclosed only in notes to the financial statements.
8. Rizza Foundation, a non profit organization, received following cash contributions during the year to
support its child care center:
a. P50,000 restricted by the donor to be used for meals of children.
b. P37,500 received by subscriptions to a monthly child care magazine with a fair value to subscribe of
P25,000
c. P25,000 to be used only upon completion of a new playroom that was 75% complete at current year-
end.

What amount should be recorded as contribution revenue in current year?

a. 50,000
b. 62,500
c. 25,000
d. 27,500

9. In the first year of operations of a nonprofit organization, the following transactions occurred:
 The nonprofit organization received P1,000,000 fund from a donor who stipulated that it shall be
invested indefinitely and the dividend from such investment shall be used for research project of the
organization. Dividend amounting to P150,000 was received during the year but only P50,000 was spent
for the research project.

 The nonprofit organization received P300,000 fund from a donor who stipulated that it shall be used for
the acquisition of service car. The nonprofit organization used P100,000 of the fund for the acquisition of
a service car with useful life of 5 years. The car was acquired at the middle of the year.

 The nonprofit organization received P500,000 fund who stipulated that it shall be used based on the
discretion of the Board of Trustees of the nonprofit organization. The nonprofit organization used
P100,000 for the acquisition of souvenir items which were sold by the nonprofit organization for
P150,000. The remaining P400,000 was designated by the Board of Trustees for future fundraising
projects.

1. What is the amount of permanently restricted net assets at the end of the first year?
a. 1,100,000
b. 1,300,000
c. 1,200,000
d. 1,000,000

2. What is the amount of temporarily restricted net assets at the end of the year?
a. 100,000
b. 300,000
c. 200,000
d. 700,000

3. What is the amount of unrestricted net assets at the end of the year?
a. 640,000
b. 540,000
c. 590,000
d. 630,000

10. An organization of high school seniors performs services for patients at Morong Doctors Hospital. These
students are volunteers and perform services that the hospital would not otherwise provide, such as
wheeling patients in the park and reading to patients. Morong Doctors has no employer-employee
relationship with these volunteers, who donated 500 hours of service. At the minimum wage rate, these
services would amount to P46,875, while it is estimated that the fair market value of these services was
P62,500. In Hospital’s statement of revenues and expenses, what amount should be reported as
nonoperating revenue?
a. 2,500
b. 46,875
c. 15,625
d. 0

Part 2
1. The following receipts were among those recorded by Jonson College, a non-profit organization, during
the current year:

Unrestricted Gifts 1,250,000

Restricted Current Funds (Expended for Current Operating Purposes) 500,000
Restricted Current Funds (Not Yet Expended) 250,000

What amount should be included as revenues and current fund revenues, respectively?
a. 2,000,000 and 1,750,000
b. 1,750,000 and 2,000,000
c. 1,500,000 and 1,500,000
d. 1,250,000 and 1,250,000

2. On December 30, 2020, Barbarian, a non-profit organization received a P17,500,000 donation of Goblin
shares with donor stipulated requirements as follows:

 Shares valued at P12,500,000 are to be sold with the proceeds used to construct a public viewing
building.
  Shares valued at P5,000,000 are to be retained with P100,0000 dividend used to support current
operations.

How much should the Barbarian report as temporarily restricted net assets in the 2020 statement of
financial position?
a. 12,600,000
b. 5,000,000
c. 12,500,000
d. 17,500,000

3. Dr. Tan Hospital, nonprofit hospital affiliated with a religious group, reported the following information
for the year ended December 31,2020:

Gross patient service revenue at the full rates 1,960,000

Bad debts expense 20,000
Contractual adjustments, VAT 178,180
Allowance for discounts to hospital employees 30,000

In Dr. Tan Hospital’s statement of activities for the year ended December 31, 2020, what amount should
be reported as patient service revenue?
a. 1,751,820
b. 1,781,820
c. 1,710,000
d. 1,960,000

4. Trisha Hospital, a nonprofit hospital, had the following cash receipts for 2020.

Patient service revenue 600,000

Gift shop revenue 50,000
Interest income restricted by donor for the acquisition of computer equipment 100,000

As a result of these cash receipts, the hospital’s statement of cash flows for 2020 would report an
increase in operating activities of what amount?
a. 650,000
b. 750,000
c. 700,000
d. 600,000

5. A nonprofit organization had the following cash contributions and expenditures in 2020.
Unrestricted cash contributions 1,000,000
Restricted cash contributions for the acquisition of property 400,000
Cash expenditures to acquire property 400,000

The statement of cash flows should include which of the following amounts?

Operating activities Investing activities Financing activities

a. 1,400,000 (400,000) 0

b. 1,000,000 0 0

c. 1,000,000 (400,000) 400,000

d. 1,000,000 800,000

6. On January 1, 2020, a nonprofit organization received P1,000,000 cash donation from a donor who
stipulated that the amount should be invested indefinitely in revenue producing investment. The deed of
donation also provided that the dividend income shall be used for the acquisition of computers of the
nonprofit organization.

On December 31, 2020, the nonprofit organization received P100,000 cash as dividend income from the
investment of the fund.

On January 1, 2021, the nonprofit organization acquired a computer at a cost of P20,000 with a useful
life of 5 years without residual value.

4. In the statement of activities of the NPO for the year ended December 31, 2020, which of the
following is the proper effect of the transactions?

a. Increase in temporarily restricted net assets by P100,000.

b. Increase in unrestricted net assets by P1,000,000.
c. Increase in unrestricted net assets by P16,000.
d. Decrease in temporarily restricted net assets by P20,000.

5. In the statement of activities of the NPO for the year ended December 31, 2021, which of the
following is the proper effect of the transactions?
a. Increase in temporarily restricted net assets by P100,000.
b. Increase in unrestricted net assets by P1,000,000.
 c. Increase in unrestricted net assets by P16,000.
d. Decrease in temporarily restricted net assets by P100,000.

6. How should the cash flows be reported in NPO’s Statement of Cash Flows for the year ended
December 31, 2020?
a. Cash receipts from operating activities by P100,000.
b. Cash receipts from financing activities by P1,100,000.
c. Cash disbursements for investing activities by P50,000.
d. Cash disbursements for financing activities by P1,000,000

7. How should the cash flows be reported in NPO’s Statement of Cash Flows for the year ended
December 31, 2021?

a. Cash receipts from operating activities by P100,000.

b. Cash receipts from financing activities by P1,100,000.
c. Cash disbursements for investing activities by P20,000.
d. Cash disbursements for investing activities by P100,000

GOVERNMENT ACCOUNTING MANUAL (GAM)

1. What is the title of the revised government accounting system for national government agencies which
will be effective starting January 1, 2016?
a. Government Accounting Manual (GAM)
b. New Government Accounting System (NGAS)
c. Philippine Government Accounting System (PGAS)
d. National Government Accounting Manual (NGAM)

2. Under Article IX-D Section 2 of the 1987 Constitution of the Republic of the Philippines, it shall have the
exclusive authority, subject to the limitations in this Article, to define the scope of its audit and
examination, establish the techniques and methods required therefore, and promulgate accounting and
auditing rules and regulations, including those for the prevention and disallowance of irregular,
unnecessary, excessive, extravagant, or unconscionable expenditures, or uses of government funds and
properties. It shall also be responsible to keep the general accounts of the Government and, for such
period as may be provided by law, preserve the vouchers and other supporting papers pertaining thereto.
a. Commission on Audit
b. Civil Service Commission
c. Commission on Election
d. Commission on Human Rights

3. The Government Accounting Manual aims to update the following, except

a. standards, policies, guidelines and procedures in accounting for government funds and property
b. coding structure and accounts
c. accounting books, registries, records, forms, reports and financial statements.
d. scope and objectives of audit.

4. It encompasses the processes of analyzing, recording, classifying, summarizing and communicating all
transactions involving the receipt and disposition of government funds and property, and interpreting the
results thereof.
a. Government auditing
b. Government reporting
c. Government accounting
d. Government analyzing

5. It refers to the the financial plan of a government for a given period, usually for a fiscal year, which
shows what its resources are, and how they will be generated and used over the fiscal period.
a. Government budget
b. Government financial position
c. Government financial statements
d. Government financial performance

6. It refers to the first step in the government budgetary process wherein the President, through the
assistance of the Department of Budget and Management, shall prepare and submit to the Congress
within 30 days from the opening of regular session of Congress a budget of expenditures and sources of
financing, including receipts from existing and proposed revenue measures.
a. Budget Preparation
b. Budget Legislation or Authorization
c. Budget Execution
d. Budget Accountability

7. It refers to the second step in the government budgetary process which involves the enactment by the
Congress of the General Appropriation Act (GAA) based on the budget submitted by the President which
cannot be increased by the Congress. The initiative for the enactment of the appropriation law shall come
from the House of Representatives.
a. Budget Preparation
b. Budget Legislation or Authorization
c. Budget Execution
d. Budget Accountability
8. It refers to the third step in the government budgetary process which involves that implementation of the
general appropriation act which includes the release of revenue allotment under the supervision of
Department of Budget and Management.
a. Budget Preparation
b. Budget Legislation or Authorization
c. Budget Execution
d. Budget Accountability

9. It refers to the final step in the government budgetary process which involves the submission of proper
documentary reports by responsible officer, liquidation of expenditures and audit conducted by
Commission on Audit to ensure the public funds are spent in accordance with the appropriation act.
a. Budget Preparation
b. Budget Legislation or Authorization
c. Budget Execution
d. Budget Accountability

10. Under the Government Accounting Manual (GAM), the financial reporting system of the Philippine
government consists of accounting system on accrual basis and budget reporting system on budget basis
under the statutory responsibility of the National Government Agencies (NGAs), Bureau of the Treasury
(BTr), Department of Budget and Management (DBM), and the Commission on Audit (COA). Which of the
following is incorrect under the Government Accounting Manual?
a. Each entity of the National Government (NG) maintains complete set of accounting books by fund
cluster which is reconciled with the records of cash transactions maintained by the BTr.
b. The BTr accounts for the cash, public debt and related transactions of the NG.
c. Each entity maintains budget registries which are reconciled with the budget records maintained by
the DBM and the Government Accountancy Sector (GAS), COA.
d. Each entity shall maintain Regular Agency (RA) Books and National Government (NG) Books for the
recording of its transactions.

11. The General Accounting Manual enumerates the following components of the General Purpose Financial
Statements of National Government Agencies, except
a. Statement of Financial Position
b. Statement of Financial Performance
c. Statement of Retained Earnings
d. Statement of Cash Flows
e. Statement of Changes in Net Assets/Equity
f. Statement of Comparison of Budget and Actual Amounts
g. Notes to the Financial Statements, comprising a summary of significant accounting policies and
other explanatory notes.

12. The books of accounts of National Government Agencies under the GAM shall consist of the following,
except
a. General Journal
b. Cash Receipts Journal
c. Cash Disbursement Journal
d. Regular Agency and National Government Books
e. Check Disbursements Journal
f. General Ledgers
g. Subsidiary Ledgers

13. The registries of National Government Agencies under the GAM shall consist of the following, except
a. Registries of Revenue and Other Receipts. (RROR)
b. Registry of Appropriations and Allotments. (RAPAL)
c. Registries of Allotments, Obligations and Disbursements (RAOD)
d. Registries of Budget, Utilization and Disbursements (RBUD)
e. Registries of Priority Development Assistant Program (RPDAP)

14. It refers to the registry maintained by NGA unit to monitor the revenue and other receipts
estimated/budgeted, collected and remitted/deposited.
a. Registries of Revenue and Other Receipts. (RROR)
b. Registry of Appropriations and Allotments. (RAPAL)
c. Registries of Allotments, Obligations and Disbursements (RAOD)
d. Registries of Budget, Utilization and Disbursements (RBUD)

15. It refers to registry maintained by NGA unit to show the original, supplemental and final budget for the
year and all allotments received charged against the corresponding appropriation.
a. Registries of Revenue and Other Receipts. (RROR)
b. Registry of Appropriations and Allotments. (RAPAL)
c. Registries of Allotments, Obligations and Disbursements (RAOD)
d. Registries of Budget, Utilization and Disbursements (RBUD)

16. It refers to registry maintained by NGA unit to show the allotments received for the year, obligations
incurred against the corresponding allotment and the actual disbursements made.
a. Registries of Revenue and Other Receipts. (RROR)
b. Registry of Appropriations and Allotments. (RAPAL)
c. Registries of Allotments, Obligations and Disbursements (RAOD)
d. Registries of Budget, Utilization and Disbursements (RBUD)

17. It refers to registry maintained by NGA unit to record the approved special budget and the corresponding
utilizations and disbursements charged to retained income authorized under the law and other retained
income collection of a national government agency with similar authority.
a. Registries of Revenue and Other Receipts. (RROR)
 b. Registry of Appropriations and Allotments. (RAPAL)
c. Registries of Allotments, Obligations and Disbursements (RAOD)
d. Registries of Budget, Utilization and Disbursements (RBUD)

18. The following are the classifications of different RAPAL, RAOD and RBUD, except
a. RAPAL/RAOD/RBUD – Personal Services
b. RAPAL/RAOD/RBUD – Maintenance and Other Operating Expenses
c. RAPAL/RAOD/RBUD – Financial Expenses
d. RAPAL/RAOD/RBUD – Capital Outlays
e. RAPAL/RAOD/RBUD – Noncash Expenses

19. Which of the following statements concerning the period of validity of Notice of Cash Allocations (NCAs) is
incorrect?
a. NCA issued and credited to the Regular MDS Sub-Accounts of agencies/OUs for their regular
operations, shall be valid until the last working day of the 3rd month of that quarter pursuant to
DBM Circular Letter (CL) No. 2013-12.
b. NCA issued and credited to the Special MDS Accounts of agencies specifically for payment of RGITL
benefits shall be valid until the last working day of the following month when the NCA was issued,
except when issued in December, pursuant to DBM Budget Circular No. 2013-1
c. NCA issued for trust receipts and credited to the Trust MDS Account of agencies shall be valid until
the last working day of the year.
d. NCA issued to the BTr for working funds of agencies shall be valid until the last working day of the
year.
e. NCA, regardless of source, shall be valid only for a period of 1-month from the date of receipt.

20. On December 31, 2018, the Department of Finance billed its lessee on one of its buildings in the amount
of P10,000. On January 31, 2019, the Department of Finance collected all of the accounts receivable. On
February 28, 2019, the Department of Finance remitted the entire collected amount to the Bureau of
Treasury. What is the journal entry to record the remittance by the Department of Finance to the Bureau
of Treasury?
a. Debit – Accounts Receivable P10,000 and Credit – Rent Income P10,000
b. Debit – Accounts Receivable P10,000 and Credit – Retained Earnings P10,000
c. Debit – Cash Collecting Officers P10,000 and Credit – Accounts Receivable P10,000
d. Debit – Cash – Treasury/Agency Deposit, Regular – P10,000 and
Credit Cash – Collecting Officer – P10,000

21. On January 1, 2018, the Department of Public Works and Highways (DPWH) received a P10,000,000
appropriation from the national government for the acquisition of machinery. On February 1, 2018,
DPWH received the allotment from the Department of Budget and Management. On March 1, 2018,
DPWH entered into a contract with CAT Inc. for the acquisition of the machinery with a price of
P8,000,000. On April 1, 2018, DPWH received the Notice of Cash Allocation from Department of Budget
and Management net of 1% withholding tax for income tax of supplier and 5% withholding of Final Tax
on VAT of supplier. On May 1, 2018, CAT Inc. delivered the machinery to DPWH. On June 1, 2018,
DPWH paid the obligation to CAT Inc. On July 1, 2018, DPWH remitted the withheld income tax and
final VAT to BIR.

What is the journal entry on March 1, 2018?

a. No entry but just posting to appropriate RAPAL
b. No entry but just posting to appropriate RAPAL and to RAOD
c. No entry but just posting of ORS (Obligation Request and Status) to appropriate RAOD
d. Debit Machinery P8,000,000 and credit Accounts Payable P8,000,000

22. Using the same data on number 21, what is the journal entry on April 1, 2018?
a. Debit Cash-MDS, Regular P7,520,000 and Credit Subsidy Income from National Government
P7,520,000.
b. Debit Machinery P8,000,000 and Credit Accounts Payable P8,000,000
c. Debit Accounts Payable P8,000,000 and Credit Due to BIR P480,000 and Cash-MDS, Regular
P7,520,000.
d. Debit Due to BIR P480,000 and Credit Subsidy Income from National Government P480,000.

23. The salary accountant of DENR provided the following data concerning the salaries of its officers and
Employees for the month ended December 31, 2016:

Salaries and wages P510,000

Personal Economic Relief Allowance (PERA) 55,000
Gross compensation 565,000
Withholding income tax 51,000
GSIS 15,300
PAG-IBIG 10,200
Philhealth 510
Net P487,990

DENR received the notice of cash allocation from the DBM net of 10% tax on basic salary. Afterwards,
DENR granted cash advance to the cashier for the payroll. Afterwards, the DENR cashier paid the
employees and submitted the liquidation report of the payroll fund with the corresponding supporting
documents. Afterwards, DENR remitted the withheld tax to BIR and the withheld contribution to GSIS,
PAG-IBIG and Philhealth
 What is the journal entry to recognize grant of cash advance to the cashier for the payroll?
a. Cash – MDS, Regular 508,500
Subsidy Income from National Government 508,500
b. Salaries and Wages Regular 510,000
PERA 55,000
Due to BIR 51,000
Due to GSIS 15,300
Due to PAG-IBIG 10,200
Due to Philhealth 510
Due to officers and employees 487,990
c. Advances for payroll 487,990
Cash-MDS, Regular 487,990
d. Due to officers and employees 487,990
Advances for payroll 487,990
e. Due to BIR 51,000
Subsidy Income from National Government ` 51,000
f. Due to GSIS 15,300
Due to PAG-IBIG 10,200
Due to Philhealth 510
Cash – MDS, Regular 26,010

24. Department of Health (DOH) received Notice of Cash Allocation in the amount of P100,000 from
Department of Budget and Management. DOH made a total cash disbursements in the amount of
P95,000. What is the journal entry to recognize reversion of unused Notice of Cash Allocation by DOH in
its books?
a. Debit Subsidy Income from National Government P5,000 and credit Cash-MDS, Regular P5,000.
b. Debit Retained Earnings of DFA P5,000 and credit Cash-MDS, Regular P5,000.
c. Debit Expenses of DFA P5,000 and credit Cash-MDS, Regular P5,000.
d. Debit Investment of DFA P5,000 and credit Cash-MDS, Regular P5,000.

25. Which of the following closing entries in the accounting book of Department of Tourism is incorrect if the
following data are provided by its chief accountant?

Total Income, aside from SING P1,598,000

Total expenses 791,652
Total Subsidy Income from National Government 1,181,882

a. Income account other than SING 1,598,000

Revenue and Expense Summary account 1,598,000
b. Revenue and Expense Summary account 791,652
Expense account 791,652
c. Subsidy Income from National Government 1,181,882
Revenue and Expense Summary Account 1,181,882
d. Revenue and Expense Summary Account 1,988,230
Accumulated Surplus/(Deficit) 1,988,230
e. Ordinary shares 3,931,534
Share premium 3,931,534

26. On January 31, 2016, the collecting officer of Bureau of Customs collected P350,000 import duties plus
fines of P10,000 on the goods of an importer. On February 28, 2016, the Bureau of Customs remitted the
P350,000 to the Bureau of Treasury. What is the journal entry to record the collection of the import
duties and fines?
a. Debit Cash-Collecting Officer P360,000 and Credit Import Duties P350,000 and Fines/Penalties
P10,000.
b. Debit Cash-Treasury/Agency Deposit, Regular P360,000 and Credit Cash-Collecting Officer
P360,000.
c. Debit Cash-Treasury/Agency Deposit, Regular P360,000 and Credit Import Duties P350,000 and
Fines/Penalties P10,000.

27. Using the same data in number 26, but assuming the importer directly deposited the 350,000 import
duties and P10,000 fines through Authorized Agent Banks instead of collection by a customer collecting
officer, what is the journal entry to record the collection/remittance of import duties to Bureau of
Treasury?
a. Debit Cash-Collecting Officer P360,000 and Credit Import Duties P350,000 and Fines/Penalties
P10,000.
b. Debit Cash-Treasury/Agency Deposit, Regular P360,000 and Credit Cash-Collecting Officer
P360,000.
c. Debit Cash-Treasury/Agency Deposit, Regular P360,000 and Credit Import Duties P350,000 and
Fines/Penalties P10,000.
28. The Bureau of Treasury received P20,000 cash remittance from Department of Agrarian Reform (DAR)
from its miscellaneous income. What is the journal entry of the Bureau of Treasury in its accounting
books to record the receipt of cash remittance from the income of a national government agency?
a. Debit Cash in Bank, Local Bank P20,000 and Credit Cash-Treasury/Agency Deposit, Regular
P20,000.
b. Debit Cash in Bank, Local Bank P20,000 and Credit Miscellaneous Income of DA P20,000.
c. Debit Cash in Bank, Local Bank P20,000 and Credit Savings of DA, Regular P20,000.
d. Debit Cash in Bank, Local Bank P20,000 and Credit Cash-Collecting Officer, DA P20,000.

29. The Department of National Defense obtained a loan from Asian Development Bank to finance the
acquisition of Philippine’s first aircraft carrier. The principal of the loan is $1B. What is the journal entry
in the accounting book of Bureau of Treasury to record the receipt of loan proceeds based on credit
advice from BSP?
a. Debit Cash in Bank, Local Bank or BSP $1B and Credit Cash-Treasury/Agency Deposit, Regular
$1B.
b. Debit Cash in Bank, Foreign Currency BSP $1B and Credit Loans Payable-Foreign $1B.
c. Debit Cash in Bank, Foreign Currency BSP $1B and Credit Subsidy Income From Asian
Development Bank $1B.
d. Debit Cash in Bank, Foreign Currency BSP $1B and Credit Capital Account, ADB $1B.

30. On February 1, 2016, the Department of Health received P10M cash from PLDT for medical expenses of
victims of calamities. The collection of the P10M donation is considered as authorized special account.
DOH remitted the donation to the Bureau of Treasury on March 1, 2016. What is the journal entry on
March 1, 2016 in the accounting book of DOH?
a. Debit Cash-Collecting Officer P10M and Credit Medical Fees P10M.
b. Debit Cash-Treasury/Agency Deposit Special Account P10M and Credit Cash-Collecting Officers
P10M.
c. Debit Cash in Bank-Local Currency, Savings Account P10M and Credit-Treasury/Agency Deposit,
Special Account P10M
d. Debit Cash-Treasury/Agency Deposit P10M and Credit Medical Fees P10M.

31. On September 1, 2016 $10M donation is deposited directly by United Nations World Health Organization
to the Bureau of Treasury to help Philippine government battle Zika Virus. What is the journal entry in
the accounting book of Bureau of Treasury to record the receipt of grants or donation from UN-WHO?
a. Debit Cash in Bank, Foreign Currency Savings Deposit $10M and Credit Income from Grants and
Donations $10M.
b. Debit Cash Collecting Officer $10M and Credit Income from Grants and Donations $10M.
c. Debit Cash in Bank, Foreign Currency Savings Deposit $10M and Credit Loans Payable $10M.
d. Debit Cash Collecting Officer $10M and Credit Ordinary Share, UN WHO $10M.

32. On February 1, 2016, the Department of Environment and Natural Resources (DENR) transferred
P450,000 fund to Department of Public Works and Highway (DPWH) for the construction of DENR’s
irrigation project. The P450,000 fund was then remitted by DPWH to Bureau of Treasury on May 1,
2016. The project was completed and turned over by DPWH to DENR on October 31, 2016. What is the
journal entry in DENR’s book to record the transfer of funds on February 1, 2016?
a. Debit Due from DPWH P450,000 and Credit Cash, MDS, Regular P450,000.
b. Debit Cash-Treasury/Agency Deposit/Trust P450,000 and Credit Cash-Collecting Officers P450,000.
c. Debit Cash Collecting Officers P450,000 and Credit Due to DENR P450,000
d. Debit Cash-Treasury/Agency Deposit/Trust P450,000 and Credit Cash-Collecting Officers P450,000.

33. Using the same data in number 32, what is the journal entry of DPWH to record the turnover of the
irrigation project to DENR on October 31, 2016?
a. Debit Due to DENR P450,000 and Credit PPE Account P450,000
b. Debit PPE Account P450,000 and Credit Due from DPWH P450,000.
c. Debit Due to DENR P450,000 and Credit Cash-Collecting Officer P450,000
d. Debit Cash Collecting Officer P450,000 and Credit Due from DPWH P450,000.