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Bac 410: Public Sector Accounting Question Paper
Bac 410: Public Sector Accounting
Course:Bachelor Of Commerce
Institution: Kenyatta University question papers
Exam Year:2009
KENYATTA UNIVERSITY
INSTITUTE OF OPEN LEARNING (IOL)
UNIVERSITY EXAMINATIONS 2008/2009
EXAMINATION FOR THE DEGREE OF BACHELOR OF COMMERCE
BAC 410:
PUBLIC SECTOR ACCOUNTING
DATE: Wednesday, 7th January, 2009
TIME: 8.00 a.m. – 10.00 a.m.
------------------------------------------------------------------------------------------------------------
INSTRUCTIONS:
? Answer ALL questions
? Marks allocated are shown at the end of each question
Question One
The Ministry of Trade had the following estimated revenues to collect during the
financial year ended 30/6/2008.
Shs.
Hotel and Restaurant Licences
900,000
Licences under Trade Licensing Act
765,000
Liquor Licences
500,000
Professional Licences
75,000
Licenses for registration of Insurance companies
320,000
During the year and prior to any issue of Licences, it was found necessary to suspend the
issue of liquor licences and professional licences. The Receiver of Revenue further
found out that more people were interested in scrap metal business. The Treasury
authorized the Receiver of Revenue to open a new head for scrap metal licences with an
estimated collection of Ksh.955,000. At the close of the financial year, the Receiver of
Revenue had collected the following amounts:-
Kshs.
Hotel and Restaurant Licences
1,131,259
Cattle Traders licences
2,261,250
Licences under Trading Licensing Act
705,000
Liquor licences
-
Professional licences
-
Scrap metal licences
1,117,500
Registration of insurance companies
255,000
The Receiver of Revenue had provided the following additional information:
i)
The Ministry had a balance of Kshs.33,750 at the beginning of the financial year.
ii)
An amount of Kshs.335,000 in respect of scrap metal licences was still in the
hands of agents as at 30/6/2008.
iii)
A sum of Kshs.8,750 was due to the exchequer at the end of the year.
Required:
a)
A statement of Assets and Liabilities for the year ended 30/6/2008 (5 marks)
b)
A statement of revenue for the year ended 30/6/2008
(12 marks)
c)
Indicate any items where you feel a footnote would be necessary (3 marks)
(Total: 20 marks)
Question Two
Discuss the role played by the following institutions with respect to Public Sector
accounting:
i)
Public accounts committee
(4 marks)
ii)
Controller and Auditor General
(4 marks)
iii)
Constitution
(4 marks)
iv)
Committee of ways and means
(3 marks)
(Total: 15 marks)
2
Question Three
a)
Explain the main differences between Public Sector accounting and Private Sector
accounting.
(3 marks)
b)
Discuss the usefulness of published accounts for the Provincial Hospitals
managed by the Ministry of Health form the point of view of:
i)
Member of parliament
(3 marks)
ii)
A tax payer
(3 marks)
iii)
A patient in one of the hospitals
(3 marks)
iv)
A creditor in one of the hospitals
(3 marks)
(Total: 15 marks)
Question Four
a)
In relation to fund accounting in the Public Sector, state what is meant by the
following special funds, explaining fully how they are operated.
i)
Trust funds
(3 marks)
ii)
Sinking funds
(3 marks)
iii)
Revolving funds
(3 marks)
b)
The approved estimates and actual expenditure details of the Ministry of
Industrialization for the year 2007/2008 were as follows:
Approved Estimates
Actual Expenditure
Kshs.
Kshs.
Personal Emoluments
123,280
97,520
House Allowances
19,530
14,260
Passages and Leave
4,140
667
Transport Maintenance
16,100
13,593
Traveling
1,334
1,656
Miscellaneous charges
17,480
16,882
Training expenses
5,980
4,738
Purchase of equipment
21,000
39,800
Appropriation in Aid
1,000
5,560 (Realised)
3
The Ministry made four equal withdrawals from Exchequer in July 2007, October
2007, January 2008 and May 2008. In total the Ministry had withdrawn
Kshs.200,000, by the end of the year.
Required:
a)
General Account of vote
(4 marks)
b)
Exchequer Account
(4 marks)
c)
Paymaster General Account
(3 marks)
(Total: 20 marks)
4
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