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Acct 423: Accounting For Public Agencies Question Paper

Acct 423: Accounting For Public Agencies

Course:Bachelor Of Commerce

Institution: Kabarak University question papers

Exam Year:2011

KABARAK UNIVERSITY
UNIVERSITY EXAMINATIONS
2010/2011 ACADEMIC YEAR
FOR THE DEGREE OF BACHELOR OF COMMERCE
COURSE CODE: ACCT 423
COURSE TITLE: ACCOUNTING FOR PUBLIC AGENCIES
STREAM: Y4S2
DAY: FRIDAY
TIME: 9.00 ± 11.00 A.M
DATE: 25/03/2011
INSTRUCTIONS:
Answer Question ONE and any other TWO
PLEASE TURNOVER
QUESTION ONE
a) What are the differences between government organizations from business organizations?
(10 Marks)
b) With reference to public sector accounting briefly explain;
i. General fund
ii. Annual estimates
iii. Excess vote
iv. Encumbrance
v. Vote on account
vi. Exchequer over issues (12 Marks)
c) Explain the various forms of accounting undertaken by the public agencies(8 Marks)
QUESTION TWO
XYZ retirement benefit scheme has provided you with the following information for the year
ended 31/12/2010
DR CR
Sh Sh
Accumulated fund at the start
Withdrawals from the scheme
Pensions and commutations
Management expenses
Member contribution
Interest on investments
Provisions for exchange losses
Quoted investments
Investment in quoted investments
Government securities
Premises
Offshore investments in shares
Fixed deposits
Current account deposits
Employers contributions
Payable to members
Receivable from the employer
Income receivable
22,500
313,500
10,500
4,500,000
3,750,000
885,000
1,200,000
1,800,000
390,000
48,300
953,400
120,000
13,993,200
11,460,000
375,300
960,000
240,000
945,900
12,000
13,993,200
Required;
i. Statement of changes in net assets for the year ended 31/12/2010 (10 Marks)
ii. Statement of net assets as at 31/12/2010 (10 Marks)
QUESTION THREE
a. With real life examples, explain the various modes of government expenditure?
(6 Marks)
b. Give a general layout of how the government accounts for expenditure (4 Marks)
c. You are provided with the following transactions in respect to expenditures incurred by
the Ministry of Fisheries in year 2008
Transaction
number
Details Original
estimate
Ksh in µ 000¶
Actual
estimate
Ksh in µ 000¶
101 House allowances 20,000 27,000
132 Personal Emoluments 70,000 75,000
140 Electricity and water
expenses
8,000 9,000
540 Purchase of fixed assets 45,000 48,000
650 Appropriations in aid 15,000 12,000
080 Passage and leave 5,000 4,500
110 Travelling expenses 22,000 24,000
Supplementary estimates authorized during the minibudget were as follows
132 Personal Emoluments 8000
110 Travelling expenses (3000)
Required; prepare the appropriations account for the year ended 2008 (10 Marks)
QUESTION FOUR
a. Explain the different sources of government revenue (6 Marks)
b. You are a government accountant based at the Malindi office for which
authorized imprest is Ksh. 3,000. The following transactions took place in the
December year 2009
Date Transaction
Dec 2 Opening balances; cash 6,190 and Bank, sh 23,810
Dec 2 Received sh. 1230(cheques) in respect of Motor vehicle licenses
Dec 2 Paid telephone account (cheque No 11) for sh 150
Dec 3 Paid James Wangunyu sh 130 (cash) in settlement of claim of
travelling expenses
Dec 3 Received cash in respect of trade licenses sh 600
Dec 4 Settled electricity account sh 306 (cheque no 12)
Dec 4 Sh. 400 (cheque) received for cattle traders license from Mr.
Leompati
Dec 4 Paid Shah sh 192 (cheque No. 13) for uniforms
Dec 5 Cheques for sh 1000 were received in respect of liquor licenses
Dec 5 Collected from Nyali Cinemax sh 420 (cheque) for entertainment tax
Dec 5 Paid Bidii Garage sh 4600 (cheque No. 14) for repairs to a
government lorry
Dec 6 Keep a cash balance of sh. 2000 and banked the rest on cash
together with all cheques on hand
Dec 7 Paid Maridadi stores for food rations Sh 538 (cheque No. 15)
Dec 9 Received from the chief accountant a cheque for sh. 1598 which was
banked immediately
Dec 10 Received sh 110 for game licenses
Dec 10 Sh 12600 cash was brought in by revenue clerk in respect of trade
licenses
Dec 10 Surplus cash of Sh 30 was found
Dec 11 Paid Prof Kathuri house allowance of sh 330 (cheque No 16)
Dec 11 Received a cheque for sh 390 from Nyali cinema in respect of
entertainment tax
Dec 12 Paid wages to Mr. khamati for sh 1800 in cash
Dec 12 A cheque of Sh. 400 was received from Mr. Onyiso in respect of
liquour license
Dec 12 Arthur Mutiso paid sh 104, for publications purchased
Dec 13 Paid in cash mileage claims for various officers totaling sh 3900
Dec 14 Kept a cash balance of sh 3000 and banked the rest of the cash and
all cheques
Dec 15 Remitted a cheque to the chief accountant for the amount in excess
of the authorized imprest and then ruled off the cash book
Required; record the above transactions in the cash book taking the
appropriations as indicated (14 Marks)

Acct 423: Accounting For Public Agencies Question Paper

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