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
UNIVERSITY EXAMINATIONS 2008/2009
INSTITUTE OF OPEN LEARNING (IOL)
EXAMINATION FOR THE DEGREE OF
BACHELOR OF COMMERCE
BAC 410: PUBLIC SECTOR ACCOUNTING
DATE: Wednesday
12th August 2009
TIME: 2.00p.m-4.00pm
------------------------------------------------------------------------------------------------------------
INSTRUCTIONS:
• Answer question ONE and other THREE questions.
• Answer FOUR questions in total
QUESTION ONE
a)
In relation to fund accounting, explain what is meant by the following types of
special
funds:
i)
Revolving
funds
[2marks]
ii)
Trust
funds
[2marks]
iii)
Sinking
funds
[2marks]
b)
Explain briefly the following types of public expenditure:
i)
Capital
expenditure
[3marks]
ii)
Recurrent
expenditure
[3marks]
iii)
Transfer
payment
[3marks]
c)
Give and explain briefly FOUR reasons that would make the statement of
assets and liabilities fail to balance.
[4marks]
Page 1 of 6
d)
Name THREE users of Public Sector Accounts and describe the main needs of
each
of
the
users.
[6marks]
QUESTION TWO
The approved estimated and actual expenditure details of the Ministry of Education for
the year ended 2007/2008 were as follows:
CODE
DETAILS
APPROVED
ACTUAL
ESTIMATES
EXPENDITURE
Ksh
Ksh
010
Personal emoluments
100,000
80,000
020
House allowance
70,000
65,000
030
Travelling
10,000
17,000
040
Training expenses
15,000
18,000
050
Purchase of equipment
120,000
130,000
060
Telecommunication
5,000
4,000
070
Electricity and water
12,000
10,000
080
Passage and leave
20,000
24,000
090
Repairs and maintenance
8,000
15,000
200
Appropriation-in-Aid
30,000
35,000
Supplementary estimates authorized during the year were as follows:
Ksh
040 4,000
070 (2,000)
090 10,000
Prepare
a)
The
appropriation
account
[16marks]
b)
The
General
Account
of
Vote
[3marks]
c)
The
exchequer
account [2marks]
Page 2 of 6
d)
The
Paymaster
General
account
[2marks]
e)
Statement of assets and liabilities as at 30th June 2008
[2marks]
QUESTION THREE
The following information related to the Ministry of Health for the month of December
2007 and January 2008:
Transactions (December 2007)
Dec 1:
Ordered for medicine worth S£ 10,000 from United Kingdom (LPO No 6220)
Dec 5:
Paid ksh 180,000 for airlifting of the medicine (P.V. No. 501)
Dec 9:
Issued LPO No. 6221 to U.S.A for x-ray equipment worth $1000
Dec 15: Paid Ksh 20,000 for motor vehicle repairs and maintenance (PV 502)
Dec 26: Paid Ksh 50,000 for salaries and wages (PV 503)
Transactions (January 2008)
Jan 3:
Paid half the value of medicine ordered through LPO No. 6220-(PV No. 504)
Jan 10: Purchased equipment worth ksh 15,000 from Okelo Ltd (PV No. 505)
Jan 20: Part payment to USA $500 (PV No. 506)
Jan 25: Paid ksh 60,000 to Shah Ltd (PV No. 507)
Jan 30: Issued LPO No. 6222 to Japan for medical equipment work JY 10,000
Jan 31: Paid salaries and wages Ksh 50,000 (PV No. 508)
Additional information:
i)
The maximum Authority to incur Expenditure (AIE) amounts to Ksh 1.5 M
ii) Exchange
rates:
US$ 1 = Ksh. 70
S£ 1 = Ksh 120
Page 3 of 6
JY 1 = Ksh 15
Required:
a)
Complete a Vote Book to reflect the above transactions.
[20marks]
b)
Comment on the commitment of the expendable balances in the vote book on 31
January
2008.
[5marks]
QUESTION FOUR
The director in charge of the Ministry of Local Authorities has submitted the following
information relating to the City Council as at 31 Dec. 2008.
1.
Balance Sheet as t 31 Dec 2007.
ASSETS
Ksh
Stock (31 Dec 2007)
500,000
Debtors:
• Trade
190,000
• Sundry
60,000
Cash at bank
39,000
Cash in hand
93,000
882,000
LIABILITIES
Loan from bank
450,000
Creditors
• Sundry
50,000
• Trade
10,000
• Others
2,000
Bank overdraft
20,000
Accumulated fund
350,000
882,000
2.
Transactions that took place during the year ended 31 Dec 2008 were as follows:
Page 4 of 6
Ksh
Sales 493,000
Purchases
95,000
Sundry expenses
50,000
Transport costs
60,000
Purchase of equipment
80,000
Repayment of loan
200,000
Interest on loans
30,000
Salaries and wages
20,000
Repairs and maintenance
15,000
Insurance claim
3,500
Receipts from car park
4,000
3.
Balance as at 31 Dec 2008
Debtors:
• Trade
103,000
• Sundry
40,000
Creditors:
• Trade
5,000
• Sundry
50,000
Stock 190,00
Bank
7,500
Required:
a)
Income and expenditure account for the year ended 31 Dec 2008
[13marks]
b)
Balance Sheet as at 31 Dec 2008
[12marks]
Page 5 of 6
QUESTION FIVE
a)
Explain briefly the role of the following government entities in the management
of public funds.
i)
Controller
and
Auditor
General
[5marks]
ii)
Parliamentary
Accounts
Committee
(PAC)
[5marks]
iii)
Parliamentary Committee of ways and means
[5marks]
iv)
Government
Ministries
Accounting
Officers
[5marks]
b)
Outline Five specific objectives of the public sector accounts
[5marks]
{Total 25 marks}
Page 6 of 6
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