Scribd
Upload
19 views4 pages

Public Sector and Civil Socity Accounting Assignment 2015

The document outlines assignments for accounting students at Zion Technology and Business College, focusing on public sector and civil society financial transactions for two cities, Y and X, during specific fiscal years. It includes detailed transaction records that require students to record journal entries and close accounts for budgetary and operating statements. The assignments aim to assess students' understanding of public sector accounting principles and practices.

Uploaded by

mebrat88
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
19 views4 pages

Public Sector and Civil Socity Accounting Assignment 2015

The document outlines assignments for accounting students at Zion Technology and Business College, focusing on public sector and civil society financial transactions for two cities, Y and X, during specific fiscal years. It includes detailed transaction records that require students to record journal entries and close accounts for budgetary and operating statements. The assignments aim to assess students' understanding of public sector accounting principles and practices.

Uploaded by

mebrat88
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 4

Zion Technology and Business College- Hawassa campus

Accounting for Public Sector and Civil Society-Assignment I


MARKS ALLOTED: 20% SUMBMISSION DATE: TAHISAS 13/2015 E.C

# Question 1:- During the year ended December 31, 2012, the following
transactions occurred for City of Y:
A. City of Y Administration authorizes expenditures of Br. 3,100,000 and forecasts revenues of
Br. 3,140,000 for fiscal year 2012.
B. The city council authorized borrowing of birr 300,000. The loan was obtained from a local
bank at a 6% annual interest rate.
C. The property tax levy for Fiscal Year 2012 was recorded. Net assessed valuation of taxable
property for the year was birr 43,000,000, and the tax rate was birr 5 per birr 100. It was
estimated that 4 percent of the levy would be uncollectible.
D. Purchase orders and contracts were issued to vendors and others in the amount of birr
2,059,000.
E. Unassessed properties with a total taxable value of birr 500,000. The owners of these
properties were charged with taxes at the city’s General Fund rate of birr 5 per birr 100
assessed value.
F. Birr 1,961,000 of current taxes, birr 383,270 of delinquent taxes, and birr 20,570 of interest
and penalties were collected.
G. Additional interest and penalties on delinquent taxes were accrued in the amount of birr
38,430, of which 30 percent was estimated to be uncollectible.
H. The city was notified that it will receive birr 80,000 in intergovernmental revenues.
I. Total payroll during the year was birr 819,490. Of that amount, birr 62,690 was withheld for
employees’ pension contribution, birr 103,710 for employees’ income tax; the balance was
paid to employees in cash.
J. The employer’s pension contribution was recorded for birr 62,690.
K. Revenues from sources other than taxes were collected in the amount of birr 946,700.
L. Pension contributions withheld and employees’ income tax withheld were paid to concerned
bodies.
M. Purchase orders and contracts encumbered in the amount of birr 1,988,040 were vouchered
at a net cost of birr 1,987,570.

Page 1 of 4
N. Vouchers payable totaling birr 2,301,660 were paid after deducting purchases discount of birr
8,030.
O. On November 30, 2012, the 300,000 birr loan with related interest was repaid.
P. All unpaid current year’s property taxes became delinquent. The balances of the current tax
receivables and related uncollectible were transferred to delinquent accounts.
Required
a) Record in general journal form the effect of the above transactions on the
General Fund for the year ended December 31, 2012.
b) Record in general journal form entries to close the budgetary and operating
statement accounts.
# Question 2:-The following transactions occurred during the 2011 fiscal year
for the City of X.
1. The budget prepared for the fiscal year 2011 was as follows:

Page 2 of 4
2. Encumbrances issued against the appropriations during the year were as follows:

3. The current year’s tax levy of $2,005,000 was recorded; uncollectible were estimated as
$65,000.
4. Tax collections from prior years’ levies totaled $132,000; collections of the current year’s
levy totaled $1,459,000.
5. Personnel costs during the year were charged to the following appropriations in the
amounts indicated.

6. Invoices for all items ordered during the prior year were received and approved for
payment in the amount of $14,470. Encumbrances had been recorded in the prior year for
these items in the amount of $14,000.
7. Invoices were received and approved for payment for items ordered in documents
recorded as encumbrances in Transaction (2) of this problem.
8. Revenue other than taxes collected during the year consisted of licenses and permits,
$373,000; intergovernmental revenue, $400,000; and $66,000 of miscellaneous revenues.
9. Payments on Vouchers Payable totaled $2,505,000.
Additional information follows: Fund Balance account had credit balance of $82,900 as of
December 31, 2010; no entries have been made in the Fund Balance account during 2011.

Page 3 of 4
Required
a) Record in general journal form the effect of the above transactions on the General Fund for
the year ended December 31, 2011.
b) Record in general journal form entries to close the budgetary and operating statement
accounts.
c) What would be the balance of Fund Balance as of December 31, 2011

Page 4 of 4

You might also like