Bac 410: Public Sector Accounting Question Paper

Exam Name: Bac 410: Public Sector Accounting 

Course: Bachelor Of Commerce

Category: Kenyatta University question papers

Exam Year:2009

KENYATTA UNIVERSITY
UNIVERSITY EXAMINATIONS 2008/2009
SECOND SEMESTER EXAMINATION FOR THE DEGREE OF BACHELOR OF
COMMERCE
BAC 410: PUBLIC SECTOR ACCOUNTING

DATE: WEDNESDAY, 19TH AUGUST 2009
TIME: 8.00 A.M. – 10.00 A.M.

INSTRUCTIONS:
1.
Answer question ONE and any other THREE questions.
2. Answer
FOUR questions in all.

QUESTION ONE

a)
Explain briefly the specific funds falling under each of the categories below:

i)
Government
funds
(5
marks)

ii)
Proprietory
funds
(2
marks)

iii)
Fiduciary
funds (3
marks)

b)
In relation to Government Accounting explain briefly the meaning of the following

terminologies:

i)
Public
Accounts
Committee
(PAC)
(3
marks)

ii)
Controller
and
Auditor
General
(3
marks)

iii)
Committee
of
Ways
and
Means
(3
marks)

c)
Explain any THREE financial accounting techniques that may be adopted by the

public sector.








(6 marks)



Page 1 of 5


QUESTION TWO
The Director in charge of the Department of Tourism Promotion in the Ministry of Tourism has
submitted the following information as at 31 December 2008:

i.
Balance Sheet as at 31 December 2007:
ASSETS










KShs

Stocks as at 31 December 2007



689,800
Debtors:

- Sundry







70,400

- Trade







234,100

Cash



30,400
1,024,700


LIABILITIES

Loans from bank
547,900

Trade Creditors

38,450

Sundry Creditors
9,200

Bank Overdraft

77,150
672,700
Accumulated fund 31 December 2007



352,000









1,024,700

ii)
Transactions that took place during the year ended 31 December 2008 were as follows:
KSh
Sales 3,400,780
Purchases 3,200,800
Sundry expenses
38,500
Repayment of Bank loan
150,000
Interest on loan
54,600
Repairs and maintenance
15,850
Salaries and wages
12,830
Page 2 of 5
Receipts from Park entry fees
2,500
Purchase of equipment
100,000
Receipts from insurance claim
162,000

ii
Closing balance on 31 December 2008:

KSh
Debtors
- Trade
193,200
- Sundry
32,800


Creditor
- Trade
132,400
- Sundry
68,300
- Others
100,000
Stock 495,400
Bank overdraft
15,150
Required:

a)
Income and expenditure account for the year ended 31 December 2008 (7 marks)
b)
The
balance
sheet
as
at
31
December
2008.
(8
marks)

QUESTION THREE
The following information relates to the Ministry of Education, department of higher education
for the fiscal year 2006/2007:











KShs.
Gross
estimated
expenditures
920,000
Estimated
Appropriation-in-Aid


70,000
Drawings
from
the
exchequer
700,000
Actual
gross
expenditure
650,000
Actual
Appropriation-in-Aid
250,000

Prepare:
a)
General
Account
of
Vote
(GAV)
(4
marks)
b)
Exchequer
account
(2 1 marks)
2

Page 3 of 5

c)
Paymaster
General
account
(PMG)
(2 1 marks)
2
d)
Statement of assets and liabilities as at 30th June 2007.


(6 marks)

QUESTION FOUR
The estimate and expenditure details relating to a Ministry as at 30th June 2008 were as
follows:
Original

Actual
Estimates
Expenditure

KSh.
KSh.
110 – Personal emoluments
140,000
120,000
120 – Commuter allowances
40,000
25,000
130 – Medical expenses
55,000
60,000
140 – Plant and machinery
130,000
110,000
150 – Electricity and water
20,000
20,000
160 – Salaries and wages
15,000
18,000
170 – House allowances
12,000
15,000
180 – Training expenses
16,000
7,000
190 – Repairs and maintenance
8,000
6,000
200 – Telecommunication expenses
6,000
5,000
210 – Appropriation-in-Aids
50,000
40,000

Supplementary Estimates authorized during the year were:
110

Personal
emoluments
KSh
(50,000)
180

Training
expenses
KSh
(9,000)
200

Telecommunication
expenses
KSh
2,000

Required:
Appropriation account for the year ended 30th June 2008 in a suitable form for publication.












(15 marks)

QUESTION FIVE
The following details relate to the Ministry of Public Works for the year 2008:
- Authority to incur expenditure (A-I-E) amounting to KSh900,000
i)
Transactions (January 2008)
Page 4 of 5

Jan 1: Ordered for tar worth Ksh180,000 (LPO 1510) from Amir Shah Ltd.

Jan 10: Paid KSh20,000 for lorry hire to transport road construction materials


(PV No. 160)

Jan 15: Issued LPO No. 1511 to Athi River Mining worth KSh150,000

Jan 20: Paid KSh40,000 for salaries and wages (PV No. 161)

Jan 31: Paid KSh 18,000 to Nairobi garage for repair machine and equipment


(PV No. 162)

ii)
Transactions (December 2008)

Dec 5: Paid Amir Shah Ltd KSh145,000 being part payment for goods ordered
through LPO No. 1510 (PV No. 163)
Dec 8: Issued LPO No. 1512 to Bamburi Cement worth KSh130,000
Dec 10 Purchased road construction machinery worth KSh250,000 (PV No. 164) from Japan.
Dec 16: Paid KSh70,000 to Athi River Mining Company Ltd being part payment for cement
ordered through LPO No. 1511 (PV No. 165)
Dec 20: Paid electricity bill KSh20,000 (PV No. 166)
Dec 22: Part payment of KSh37,000 to Bamburi Cement (LPO No. 1512)
Required:
a)
Record the above transactions in
the
Vote
Book.
(10
marks)
b)
Comment on the commitment to the expendable amount in the vote on
31
December
2008.
(5
marks)

QUESTION SIX
Ministry and Government Departments have failed to balance their statements of assets and liabilities
which are submitted along with the annual Appropriation Accounts to the Controller and Auditor-
General.
a)
i)
Give reasons that would make a statement of assets and liabilities fail to balance.












(4 marks)

ii)
Explain the steps that should be taken by a ministry and other government
departments to ensure that the statements of assets and liabilities are balanced
at
the
end
of
the
year.
(3
marks)
b) Explain
briefly:

i)
The functions of public sector financial
reports
(4
marks)

ii)
The specific objectives of the public sector accounting.


(4 marks)
********************
Page 5 of 5




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