1. The Board of Survey of Eagle-Eye Local Government
Council has been directed to inspect its store. You are required to:
(a) Itemise the procedures of inspection to be
adopted by the Board of Survey.
(b) ‘’Internal control comprises the plan of the
organisation and all the co-ordinate measures and methods adopted to achieve
certain objectives.’’ List four objectives which underlie the reasoning.
(c) What circumstances would warrant the setting up
a Board of Enquiry?
2. (a)
Distinguish between ‘pension’ and ‘gratuity’
(b) Aiyegbajeje whose record of service
spanned between 1st January 1969 and 31st December 1998, retired voluntarily.
Out of this period, 7 years were spent in the State services and the rest in
various Ministries at the Federal level.
Aiyegbajeje was 52 years when he retired.
He had accumulated leave of one year which the
appropriate authority had approved on terminal departure. He commenced the
leave on 1st January 1999.
The rates of gratuity and pension are given as
follows:
Years
in Service
|
Gratuity As
|
Pension As
|
|
%
of Final Pay
|
% of Final Pay
|
28
|
244
|
66
|
29
|
252
|
68
|
30
|
260
|
70
|
31
|
268
|
72
|
32
|
276
|
74
|
Mr. Aiyegbajeje’s terminal emolument is as
follows:
Per month
N
Basic salary 42,000
Housing allowance 12,500
Transport allowance 21,500
Utility and other allowance 3,000
You are required to:
(i) Calculate the gratuity and pension due to Mr.
Aiyegbajeje.
(ii) Apportion his gratuity and pension between the
Federal and State Governments.
3. Parastatals and public companies are agencies
established by government for specific purposes.
(a) What are the most common accounting policies
adopted by parastatals and public companies?
(b) Give the main objectives of setting up
parastatals, departments and agencies.
4. (a) List 10 types of vouchers used in Public
Sector Accounting.
(b) In the
event of loss of an already raised payment voucher, what are the
procedures
to be followed?
(c) List 5 documents required to accompany a
Contract Payment Voucher
5. (a) Define
Ratio Analysis
(b)
Explain the objective of the following ratios and state their respective
mode of computation:
(i)
Current ratio (ii) Quick ratios or Acid Test
Ratio
(iii)
Debtors payment period (vi)
Creditors payment period
(v)
Stock turnover period
6. (a) The Cash Book of Bamishaye Local Government
showed a debit balance of N502,000 as at
30/9/2018.
However, the bank account statement showed a credit
balance of N505, 000. On investigation,
the following were discovered:
(i)
Cheque
Numbers 51522 and 32552 for N2, 000 and N3,000 respectively, have not
been presented for payment.
(ii) Interest on investment of N1, 000 has
not been posted into the Cash Book.
(iii) A sum of N2, 000 paid into the bank was
credited only after the bank statement was
issued.
(iv) 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.
(b) List five items that caused discrepancy
between cashbook and bank statement.
7. (a) Outline the stages involved in the
preparation of Transcripts.
(b ) List out documents required to be transmitted
along with transcripts.
(c ) The following balances have been extracted from
the books of Foyegbe Local
Government Treasury, for the month ended 31 March 2018
N’000
Reserve Fund 33,500
Cash on hand 53,000
Bank Overdraft 5,700
Revenues (recurrent/capital) 158,500
Expenditures (recurrent/capital) 125,390
Loans 200,000
Deposits into (the L.G.C. Treasury) 23,450
Advances (granted by L.G.C.) 25,560
Investments 15,200
Suspense accounts 202,000
As a student of Management and Business Studies, you
are required to prepare a trial balance for the month ended 31 March 2018.
STUDENTS VISIT:
TRAIN YOUR BRAIN :
BE POSITIVE:
YOU ARE ALL WELCOME!
LCP!
FIRST AND THE BEST
Patriot Odunaro B.J.
08038454008
