Pakistan Institute of Public Summer Exam-2023

Finance Accountants [13.May.2023] [09:00 am – 12:15 pm]

Public Sector - Accounting (Application)

Books Allowed:
 CGA’s Ordinance 2001 and AGP’s Ordinance 2001  Chart of Accounts
 Manual of Accounting Principles by Auditor General of Pakistan  IPSAS(Cash Basis) by IPSASB (IFAC)
 Accounting Policies and Procedures Manual by Auditor  IPSAS-1 and 2 (Accrual Basis) by IPSASB (IFAC)
General of Pakistan

Q.1. (a) Codify the following by giving Function, Entity, and Object elements of Chart of
Accounts.
(i) DG Health Services, Sindh incurred expenditure on research and survey for a 03
specific health research project.
(ii) Collection of payments for services rendered by the Directorate of Marine 03
Fisheries, Karachi.
(iii) Postal Services Division transfer funds between post office officers. 03
(iv) Recoveries of canal irrigation expenditures reported by Chief Engineer Irrigation 03
Sargodha.
(b) Codify/de-codify the following HR information with proper listing.
(i) 5810 02
(ii) 00002919 02
(iii) Adhoc Relief Allowance 02
(iv) Commerce College 02

Q.2. Comment on the following actions as “admissible or inadmissible” and also give exact
reference;
(a) A cheque received by a District Account Office that was subsequently dishonored by 05
the bank and consequently did not appear in the bank scroll, concerned account
office made an adjustment of dishonored cheque.
(b) A contingent expenditure booked in suspense account because of insufficient details 05
of expenditure at the time of transaction.
(c) The delegated officer in the office of the Accountant General send a copy of the 05
Daily Balances Exception List to the SBP - HQ in order to reconcile the differences
and take the necessary follow-up actions in consultation with the Accountant
General.

Contd….…
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(d) A BPS-16 officer retired from government service on 13.02.2023. The concerned 05
accounts officer verified through last pay certificate that no outstanding amount is
due from employee.

Q.3. An amount of Rs. 16,667/- on account of motorcar advance is deducted from a monthly 10
salary of an officer of Federal Government. How the deduction will be recognized in the
books of accounts?

Q.4. Give a threshold amount of fixed assets to be entered in Fixed Asset register and how it can 05
be adjusted afterward?

Q.5. Following are the cash receipts and payments from consolidated funds of Federal
Government for the year ended 30th June 20XX with opening cash balance of Rs.500, 805
million:
Amount
Cash Receipts and Payments
(Rs. in millions)
Investment Recovery 162,652
Defence Services receipts 15,041
Repayment of Debts 1,917,773
Servicing of debts 2,761,031
Sales Tax 897,166
General Administration & Economic receipts 11,453
Expense on Physical Assets 381,175
Development Surcharge & Royalties 457,374
Dividend and profit share 730,967
Loans and Advances paid 417,980
Other expenditures 7,873
Foreign Debt Borrowing 2,111,879
Salaries and employees benefits 1,229,118
Expenditure on Civil Works 221,348
Federal Excise, Custom duty 444,818
Operating Expenses 784,049
Income Tax 698,608
Citizenship, nationalization, passport and copyright 13,120
Interest on Loans and Advances 101,306
Domestic Borrowings 3,918,276
Transfer grants, subsidies, Write off of Loans 1,442,807
Other Transfer payments 78,076

Required:
Prepare a Statement of Cash receipts and Payments from the above data and calculate the 25
cash at the end of year.

Contd….…
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Q.6. Following is the data relates to GP fund in respect of Mr. Zubair, Audit Officer:
 GP fund Balance Rs.412,500 as on 30/06/2021
 Monthly subscription Rs. 5,360
 Withdrawal of refundable GP fund Advance amounting to Rs. 330,000 in October
2021.
 Advance is recoverable in 48 equal monthly installments next from the month of
withdrawal.

Required:
(a) Prepare a GP Fund Statement and calculate the Interest on GP Fund for the year 15
2021-2022 (Interest rate 12.4%).
(b) Calculate the Closing Balance as on 30th June 2022. 05

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