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Public Sector Accounting I Question Paper
Public Sector Accounting I
Course:Bachelor Of Commerce
Institution: Kenyatta University question papers
Exam Year:2010
KENYATTA UNIVERSITY
UNIVERSITY EXAMINATIONS 2010/2011
FIRST SEMESTER EXAMINATION FOR THE DEGREE OF BACHELOR OF
COMMERCE
BAC 410: PUBLIC SECTOR ACCOUNTING I
DATE:
Wednesday 1st December 2010
TIME: 11.00a.m -1.00pm
INSTRUCTIONS:
QUESTION ONE
The beginning balance of Magongo City on 1st July 2003 were as follows;
Cash
12,000
Taxes receivable-delinquent
12,500
Estimated uncollectible taxes-delinquent
600
Vouchers payable
20,900
Fund balance
_____
3,000
24,500
24,500
The following transaction took place during the year 2003/4
1.
Revenues were estimated at 200,000. Appropriation of 197,000 were made.
2.
Property taxes were levied in the amount of 150,000. It was estimated that 1% of
the taxes will not be collected.
3.
The accountant was notified that appropriations total covered a 2002/3 order for
materials estimated to cost 25,200.
4.
The materials were received and the actual cost was 25,000.
5.
Citizens paid 130,000 of taxes, of which 1,000 was the delinquent taxes.
6
Miscellaneous revenue was received in the amount of 50,000
Page 1 of 3
7.
The voucher payable at the beginning were paid.
8.
Salaries were paid in the amount of 120,000.
9.
Materials and supplies were ordered at an estimated cost of 20,000.
10.
The ordered materials and supplies were received at an actual cost of 31,000
11.
Office equipment was ordered at an estimated cost of 20,000
12.
The city wrote off 100 of delinquent taxes as uncollectible
13.
The office equipment ordered for was received at an actual cost of 20,000
14.
Vouchers payable were paid in an amount of 31,000
15.
The city received 14,000 in payment of property taxes.
16.
The city ordered 1,500 of supplies.
17.
Payment for office equipment was done.
Required;
a)
Journalize the transactions.
[5marks]
b)
Post the transactions to ledger Accounts.
[10marks]
c)
Prepare an adjusted Trial Balance.
[5marks]
QUESTION TWO
The following transactions took place in the city of Hague during 2005/6 fiscal year;
1.
A bond issue of 120,000 was authorized for the construction of a library. A capital
project fund journal and ledger were established and a narrative entry made to
record the project authorization.
2.
The bonds were sold at a premium of 900.
3.
The cost of issuing the bonds of sh.800 was paid.
4.
An order was placed for materials estimated to cost 65,000.
5.
Salaries and wages amounting to 5,000 were paid.
6
The premium was transferred to the debt service fund.
Page 2 of 3
Required;
a)
Prepare journal entries to record the above transactions in books of the city.
[5marks]
b)
Post to Leger accounts.
[7marks]
c)
Prepare a balance sheet as at June 30th 2006.
[3marks]
QUESTION THREE
Outline the role of government accounting in Kenya by the following;
i)
The treasury.
[5marks]
ii)
The controller and auditor general
[3marks]
iii)
The public accounts committee.
[3marks]
iv)
The parliament.
[4marks]
QUESTION FOUR
Explain the following accounting techniques as applied in public sector accounting;
a)
Budgetary accounting.
[3marks]
b)
Cash accounting.
[3marks]
c)
Accrual accounting.
[3marks]
d)
Commitment accounting.
[3marks]
e)
Fund accounting.
[3marks]
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