s distributed to the offices of the barangay and the province.The following distribution of income shall be f
The Municipality of Loay is a 5th class municipality in the Province of Bohol. It has the following transactions,
among others, for the year 20X1:
a. On January 1, it purchased a 6-year P200,000 face
each year. The prevailing interest rate is 8%
b. One of its residents, Mr. Jesus De Guzman, owned a residential property in Barangay Tocdog Dacu. The
property has a market price of P10,000,000.00, consisting of P6,000,000 and P4,000,000 land and the
building, respectively.
On March 31, the property was assessed, requiring Mr. De Guzman to pay P84,000 real property tax (RPT).
On April 5, 20X1, Jesus paid the RPT, net of 10% discount, to the Treasurer’s Office of the Municipality of
Loay. The person in authority immediately deposited the said payment to the current account of the
municipality. Thereafter, the said amount was distributed to the offices of the barangay and the province.
The following distribution of income shall be followed: 40% municipality, 35% province, and 25% for
barangay.
c. On June 20X1, borrowed P150,000 from RCBC Bank, subject to 10% annual interest and payable after
three (3) months.
d. In August, it issued a P20,000 cash advance to its Tourism Officer, Mr. Marlon Buan. At the end of
September, Mr. Buan filed a liquidation report.
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