NATIONAL OPEN UNIVERSITY OF NIGERIA

UNIVERSITY VILLAGE, PLOT 91, CASDASTRAL ZONE, NNAMDI AZIKIWE EXPRESS WAY, JABI, ABUJA.
FACULTY OF MANAGEMENT SCIENCES
MARCH/APRIL 2015 EXAMINATION

COURSE CODE: ACC418                                                                        

CREDIT UNIT: 3

COURSE TITLE:  PUBLIC SECTOR ACCOUNTING AND FINANCE

TIME ALLOWED: 2^1/2 HOURS

INSTRUCTION:

Attempt question one and any three questions of your choice. Question one carries 25 marks while others carry 15 marks each. Present your answer in coherent and orderly manner.

QUESTIONS

1. You are required to prepare Federation Account and Consolidated Revenue Fund from the following information.

FLOWS                                                                                                           N’000

Import duties                                                                                               33,000,000

Export duties                                                                                              24,000,000

Excise duties                                                                                   20,000,000

Petroleum profits tax                                                                    920,000,000

Companies income tax                                                                            530,000,000

PAYE: deductions from the emolument of the Armed Forces                        480,000

Police personnel                                                                                               120,000

Residents of Abuja                                                                                           140,000

Dividend from Federal Government Investments                                340,000

Outflows:

Remuneration of Statutory Officers                                             420,000,000

Recurrent expenditure                                                                                49,000,000

Transfer to: Development Fund                                                                 82,000,000

   Contingency Fund                                                                       805,000

Note: The revenue allocation formula is:

Federal Government                                                                                 48.5%

State Government                                                                                        24%

Local Government                                                                                       20%

Special Fund                                                                                                7.5%

2. Outline ten users (internal and external) of public sector accounting information.

3. What is the difference between Government accounting and private sector accounting?

4. Outline eight functions of the sub-accounting officer.

5. Explain the following term:

1. Annual General Warrant of Recurrent Expenditure;
2. Provisional General Warrant; and
3. Supplementary General Warrant.

6. The Cash Book of Esan West Local Government showed a debit balance of N902,000 as at 31/12/2014. However, the bank account statement showed a credit balance of N879,000. On investigation, the following were discovered:

1. Cheque Numbers 51522 and 32552 for N4,000 and N5,000 respectively, have not been presented for payment.
2. Interest on investment of N4,000 has not been posted into the Cash Book.
3. A sum of N8,000 paid into the bank was credited only after the bank statement was issued.
4. Bank charges of N2,000 have not been recorded in the Treasury Cash Book.

You are required to prepare a Bank Reconciliation Statement for the Local Government.