Bac 410: Public Sector Accounting Question Paper

Exam Name: Bac 410: Public Sector Accounting 

Category: Kenyatta University question papers

Exam Year:2008

KENYATTA UNIVERSITY
UNIVERSITY EXAMINATIONS 2007/2008
PARKLANDS CAMPUS

SECOND SEMESTER EXAMINATION FOR THE DEGREE OF BACHELOR OF
COMMERCE
BAC 410: PUBLIC SECTOR ACCOUNTING

DATE: WEDNESDAY, 18TH JUNE 2008
TIME: 8.00 A.M. – 10.00 A.M.
______________________________________________________________________

INSTRUCTIONS: ANSWER ALL QUESTIONS



SHOW ALL YOUR WORKING

1.
Explain the following terms:
(i)
General Account of Vote




(3 marks)
(ii)
Fund Accounting





(3 marks)
(iii)
Commitment Accounting




(3 marks)
(iv)
Appropriation in Aid




(3 marks)
(v)
Paymaster General





(3 marks)
(Total 15 marks)

2.
The following details were extracted from the Trial Balance of
Maisha Retirement Benefit Scheme as at 30th June 2006.







Shs 000
Interest on investments



835,000
Pension payments




225,500
Personal Contributions



8,800
Management Expenses



25,500
Fund balance – 1st January 1989

9,000,500
Investments at cost – 1st January 1989
8,000,000
Cash Deposit (JCF)



2,500
Sugar Finance Corporation


675,000
Pay Master General



860,500
Provision for loss on investments


40,000





2

Additional information:
(i)
Personal contributions in arrears


100,000
(ii)
Government matching contributions not received 14,500
(iii)
Interest on investments due but not received
3,500
(iv)
Pension benefits assessed but not paid

80,000
(v)
On 31 October 2005 investments worth 1.5 billion were sold for 1.6 billion
and proceeds were held on deposit with the JCF.
(vi)
The provision for loss on investments is to be adjusted to Sh55 million.
(vii) The market value of the investment at year end was Sh6.56 billion.
Required:
(a)
Income and Expenditure Account for the year


(13 marks)
(b)
Balance Sheet for the Fund as at 30th June 2006


(7 marks)








(Total 20 marks)

3.
(a)
The following information relates to a Government Revenue head
for the year ended 30 June 2007:


Estimated
Actual
Receipts
Receipts
KSh Millions
KSh Millions
Rent on equipment
450
470
Trading Licence Fees
250
220
Export & Import Licence Fees 540
570
Other Receipts
45
20

Additional Information
(i)
The balance on hand as at 1st July 2006 was Sh 57 million.
(ii)
The balance on hand as at 30th June 2007 was Sh 80 million
Required:
Prepare a Statement of Revenue for the year ended 30 June 2007. (8 marks)

b)
Highlight and explain clearly the main needs of the users of Public
Sector Accounts.






(7 marks)










(Total 15 marks)


3
4.
a)
The estimate and expenditure
details to the Ministry of Education as at
30 June 2006 were as follows:

Estimate
Actual
Ksh ‘000’
Ksh’000’

Personal Emoluments
155,900
119,790
House Allowances
35,000
26,390
Passages and Leave
7,400
8,850
Transport & Maintenance expenses
10,900
14,950
Travelling & accommodation expenses
9,200
5,250
Postal and Telecommunication expenses
11,900
5,450
Electricity, water and conservancy
8,500
8,290
Purchase of supplies
89,600
78,300
Uniforms & clothing
12,000
25,050
Miscellaneous & other charges
8,060
12,050
Student allowance’s
210,400
120,620
Purchase of Equipments
35,000
56,180
Maintenance of Equipment
15,000
11,450
Appropriation in Aid
800
1,000



Supplementary estimates authorized during the year were as follows:


Transport & Maintenance expenses


KSh5,000,000


Travelling & Accommodation expenses


(Ksh5,000,000


Required:
Appropriation Account for the year ended 30 June in a suitable form for
publication.











(17 marks)

b)
Explain the main objectives of Public Sector Accounting.
(3 marks)










(Total 20 marks)



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