NATIONAL OPEN UNIVERSITY OF NIGERIA

UNIVERSITY VILLAGE, PLOT 91, CASDASTRAL ZONE, NNAMDI AZIKIWE EXPRESS WAY, JABI, ABUJA.
FACULTY OF MANAGEMENT SCIENCES
OCTOBER/NOVEMBER 2016 EXAMINATION

Course Code: ACC418                                                                                                      

Course Title:  PUBLIC SECTOR ACCOUNTING AND FINANCE

Credit unit: 3

Time Allowed: 2 hours 30 minutes

Instruction:

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

QUESTION 1

1. Give 5 differences between Government accounting and Private sector accounting? (10 marks)
2. Prepare Federation Account and Consolidated Revenue Fund from the following information:

INFLOWS                                                                       N’000

Import duties                                                                  400,000

Export duties                                                                 300,000

Excise duties                                                                 200,000

Petroleum profits tax                                                        80,000,000

Companies income tax                                                      71,000,000

PAYE: deductions from the emolument of the Armed Forces            400,000

Police personnel                                                              30,000

Residents of Abuja                                                           20,000

Dividend from Federal Government Investments                          120,000

Outflows:

Remuneration of Statutory Officers   13,800,000

Recurrent expenditure                 1,500,000

Transfer to: Development Fund       2,500,000

Contingency Fund                     20,000

Note: The revenue allocation formula is:

Federal Government            48.5%

State Government               24%

Local Government               20%

Special Fund                      7.5%          (15 marks)

QUESTION 2

There are three bases under which the financial statements of a public sector enterprise are compiled. Discuss  and state 4 advantages and disadvantages of each of them. (15 marks)

QUESTION 3

a) The Cash Book of Zolu Local Government showed a debit balance of N502,000 as at 30/9/2012. However, the bank account statement showed a credit balance of N505,000. On investigation, the following were discovered:

1. Cheque Numbers 51522 and 32552 for N42,000 and N43,000 respectively, have not been presented for payment.
2. Interest on investment of N41,000 has not been posted into the Cash Book.
3. A sum of N42,000 paid into the bank was credited only after the bank statement was issued.
4. Bank charges of N1,000 have not been recorded in the Treasury Cash Book.

You are required to prepare a Bank Reconciliation Statement for the Local Government. (10 marks)

b) State 3 importance of bank reconciliation statement (5 marks)

QUESTION 4

a) Explain with examples the term “self accounting unit”. (3 marks)

b) What are the three conditions to be fulfilled for a unit to be referred to as self accounting (4.5 marks)

c) State five advantages and five disadvantages of a self accounting unit. (7.5 marks)

QUESTION 5

Explain the following term:

1. Annual General Warrant of Recurrent Expenditure; (5 marks)
2. Provisional General Warrant; and (5 marks)
3. Supplementary General Warrant. (5 marks)

QUESTION 6

Explain in details 6 functions of the sub-accounting officer. (15 marks)