🇳🇬 PATRIOT ODUNARO BABATUNDE JIMOH

96 TUTORIAL QUESTIONS on acc 414-Public sector accounting and reporting 2

(CONTACT PATRIOT FOR SOLUTIONS ON 08038454008)

TOPIC 1: INTRODUCTION TO PUBLIC SECTOR ACCOUNTING

1. Define Public Sector Accounting and explain its main objectives.

2. Discuss five (5) distinguishing features between public sector accounting and private sector accounting.

3. Explain the importance of Public Sector Accounting in Nigeria.

4. List and explain five (5) sources of government revenue in the public sector.

5. Identify and explain five (5) funds commonly used in public sector accounting.

6. Explain the legal and regulatory framework guiding public sector accounting in Nigeria.

7. State and explain five (5) major objectives of government budgeting in the public sector.

8. Discuss five (5) major challenges facing public sector accounting in Nigeria.

9. Explain the term “accountability” in public sector accounting and state its importance.

10. Discuss the role of IPSAS in improving public sector financial reporting.

TOPIC 2: BASIC ACCOUNTING FOR NOT-FOR-PROFIT (NFP)

11. a. Explain the term Not-for-Profit Organization (NFP).
b. Highlight and explain five (5) main features of Not-for-Profit Organizations.

12. Discuss the main objectives of accounting in Not-for-Profit Organizations.

13. Distinguish between the following financial statements prepared by Not-for-Profit Organizations:
(a) Receipts and Payments Account
(b) Income and Expenditure Account

14. Explain the treatment of the following items in the accounts of a Not-for-Profit Organization:

i. Subscriptions

ii. Donations

iii. Entrance fees

iv. Legacy

v. Endowment fund

15. Describe briefly the types of funds maintained by Not-for-Profit Organizations and state the purpose of each.

16. Discuss five (5) major sources of income for Not-for-Profit Organizations.

17. Explain the purposes and limitations of the Receipts and Payments Account in a Not-for-Profit Organization.

18. State and explain five (5) key differences between Not-for-Profit and Profit-Oriented Organizations.

19. Explain the importance of accounting records in a Not-for-Profit Organization.

20. List and explain the major financial statements prepared by a Not-for-Profit Organization.

21. a. Define a Not-for-Profit Organization (NFP).
b. State and explain four (4) key features of NFPs.
c. Identify three (3) major differences between NFPs and profit-making organizations.

22. Explain the following terms as used in accounting for Not-for-Profit Organizations:
i. Receipts and Payments Account
ii. Income and Expenditure Account
iii. Capital Fund
iv. Restricted Fund

23. Below is the Receipts and Payments Account of Unity Sports Club for the year ended 31st December 2024:

Receipts and Payments Account

Receipts	₦	Payments	₦
Balance b/d	20,000	Rent	50,000
Subscriptions	120,000	Salaries	70,000
Donations	40,000	Stationery	15,000
Sale of old furniture	10,000	Purchase of new furniture	30,000
Interest received	5,000	Electricity	5,000
		Balance c/d	?
Total	195,000	Total	195,000

Additional Information:

1. Subscriptions outstanding for 2024: ₦10,000

2. Subscriptions received in advance for 2025: ₦5,000

3. Depreciation on furniture for the year: ₦3,000

Required:
Prepare the Income and Expenditure Account for the year ended 31st December 2024.

24. The following information relates to Sunshine Charity Foundation as at 31st December 2024:

Particulars	₦
Capital Fund (1/1/2024)	150,000
Surplus for the year	25,000
Building Fund	80,000
Creditors	10,000
Cash at bank	60,000
Furniture and Fittings	50,000
Land and Building	120,000
Investments	35,000

Required:
Prepare a Statement of Financial Position as at 31st December 2024.

25. From the information below, prepare a Receipts and Payments Account for Hope Welfare Home for the year ended 31st December 2024.

Information:

Item	₦
Subscriptions received	150,000
Donations	40,000
Sale of investments	20,000
Salaries paid	80,000
Rent paid	25,000
Electricity	10,000
Purchase of equipment	30,000
Cash in hand (1/1/2024)	5,000

26. a. Explain the difference between in Not-for-Profit Organizations. capital receipts and revenue receipts
b. Give two examples of each.

TOPIC 3: CLASSIFICATION OF NOT-FOR-PROFIT (NFP) ORGANISATIONS

27. a. Define Not-for-Profit (NFP) Organisations.
b. Explain four bases on which Not-for-Profit Organisations can be classified.

28. Enumerate and explain five categories of Not-for-Profit Organisations classified according to their purpose or objective, giving one example of each.

29. Discuss the classification of Not-for-Profit Organisations based on sources of funding, providing suitable examples.

30. Explain the legal classification of Not-for-Profit Organisations in Nigeria and cite the legal framework governing each type.

31. Explain three classifications of Not-for-Profit Organisations according to the scope of operation, and give one example for each.

32. Why is the classification of Not-for-Profit Organisations important in accounting and management practice? Discuss any four reasons.

33. Differentiate between Charitable Organisations and Professional Associations as types of Not-for-Profit Organisations.

34. List and explain five examples of Not-for-Profit Organisations in Nigeria, indicating their category and main objective.

TOPIC 4: BASIC CHARACTERISTICS OF GOVERNMENTAL ACCOUNTING

35. a. Define Governmental Accounting.
b. Explain briefly five (5) basic characteristics of governmental accounting.

36. Discuss the importance of accountability as a major characteristic of governmental accounting.

37. Identify and explain five (5) characteristics that distinguish governmental accounting from private sector accounting.

38. Explain the role of fund accounting as a basic characteristic of governmental accounting.

39. State and explain five (5) basic characteristics of governmental accounting relating to financial reporting and control.

40. Explain the significance of budgetary emphasis as a characteristic of governmental accounting.

41. Describe any five (5) key differences between governmental accounting and commercial accounting based on their objectives and reporting focus.

42. Explain why transparency and audit oversight are essential characteristics of governmental accounting.

TOPIC 5: STRUCTURE OF GOVERNMENTAL ACCOUNTING IN NIGERIA: THE

TREASURY, AUDIT DEPARTMENT, CONSOLIDATED REVENUE FUND,

CAPITAL AND DEVELOPMENT FUND,

43. Explain the role of the Treasury in the structure of governmental accounting in Nigeria.

44. Differentiate between the Consolidated Revenue Fund (CRF) and the Capital and Development Fund in Nigeria.

45. Discuss the functions of the Audit Department in Nigeria’s public sector accounting system.

46. The following are extracts from the accounts of the Federal Treasury for the year ended 31st December 2024:

Description	₦ (million)
Revenue from taxes	6,000
Revenue from oil royalties	4,000
Revenue from non-tax sources	1,000
Recurrent Expenditure	7,000
Capital Expenditure	2,000

Required:
(a) Compute the balance of the Consolidated Revenue Fund (CRF) at year-end.
(b) State two uses of the CRF balance.\

47. A State Treasury recorded the following transactions for 2024:

Item	₦ (million)
Opening Capital Fund	1,000
Annual Budget Allocation	2,500
Expenditure on new road construction	1,200
Expenditure on hospital building	800
Expenditure on equipment purchase	400

Required:
(a) Prepare a Capital and Development Fund Statement showing the balance as at year-end.
(b) Comment briefly on the result.

48. List and explain four key features of the Consolidated Revenue Fund (CRF) in Nigeria.

49. Describe the relationship between the Treasury, the Audit Department, and the Legislature in the Nigerian public accounting structure.

50. Given the following transactions for the Federal Government in 2025:

Item	₦ (million)
Taxes collected	8,000
Grants received	1,500
Borrowings	2,000
Recurrent Expenditure	7,500
Capital Expenditure	3,000

Required:
(a) Compute the overall fiscal balance.
(b) State whether the budget resulted in a surplus or deficit.

51. Identify and explain three sources of funds for the Capital and Development Fund in Nigeria.

52. Highlight and explain four legal or constitutional provisions guiding governmental accounting structure in Nigeria.

TOPIC 6: FINANCIAL ACCOUNTING AND ANALYSIS: USE OF SELF-

ACCOUNTING SYSTEM, FUND ACCOUNTING SYSTEM, AND

STANDARDIZED UNIFORMS FOR TRANSACTIONS.

53. Explain the concept of the self-accounting system in governmental accounting and state its major advantages and disadvantages.

54. Define fund accounting system and explain its relevance in public sector financial management.

55. Explain what is meant by standardized uniforms for transactions and discuss its importance in governmental accounting.

56. Distinguish between the self-accounting system and the fund accounting system in government accounting.

57. The Ministry of Works operates under a self-accounting system. During the year 2024, the following data were extracted:

Particulars	₦
Appropriation for the year	12,000,000
Revenue generated internally	3,500,000
Expenditure incurred	13,800,000
Unspent balance brought forward	1,000,000

Required:
Prepare a Statement of Departmental Financial Performance showing whether there is a surplus or deficit for the year.

58. Under the fund accounting system, the following information was extracted from the Education Development Fund for the year 2024:

Particulars	₦
Government Grant	8,000,000
Donations from NGOs	2,000,000
Expenditure on school renovation	6,500,000
Expenditure on teacher training	2,300,000
Administrative expenses	700,000

Required:
Prepare a Statement of Fund Operations and determine the fund balance at year-end.

59. The Ministry of Finance adopts standardized uniforms for transactions and recorded the following balances:

Particulars	₦
Opening cash balance	1,200,000
Receipts from Treasury	4,000,000
Internally generated revenue	800,000
Total payments	5,500,000

Required:
Using the standardized government transaction format, prepare the Receipts and Payments Account for the period.

TOPIC 7: DECISION MAKING AND PLANNING AND CONTROL OF PUBLIC

FUND: APPLICATION OF COSTING METHODS, BUDGETING

PROCESSES (IPSAS 24), THE USE OF AUDIT DEPARTMENT,

60. Explain the concept of decision making in public sector financial management and highlight any four key features of decision making in the management of public funds.

61. Discuss three (3) costing methods applicable in public sector decision making and their relevance.

62. Explain the budgeting process under IPSAS 24 and state any three benefits of budget reporting under IPSAS 24.

63. Enumerate and explain four (4) functions of the Audit Department in controlling public funds.

64. Describe how costing methods, budgeting, and auditing interact to ensure effective control of public funds.

65. The Ministry of Education uses absorption costing to evaluate its school feeding program. The following information is available for 2024:

Particulars	₦
Direct food cost	45,000,000
Labour cost	20,000,000
Overhead cost	15,000,000
Total number of pupils fed	10,000

Required:
Compute the cost per pupil and determine the variance if the approved budget was ₦7,000 per pupil

66. The Ministry of Works prepared the following data for a road construction project:

Item	Budget (₦)	Actual (₦)
Materials	10,000,000	11,500,000
Labour	8,000,000	7,500,000
Overhead	2,000,000	2,500,000

Required:
(i) Compute total budget and actual costs.
(ii) Determine the total variance and state whether it is favourable or adverse.

67. A Ministry operates under IPSAS 24 budget reporting. The following data were extracted from its financial statements:

Particulars	Budget (₦)	Actual (₦)
Revenue	50,000,000	48,000,000
Expenditure	45,000,000	44,500,000

Required:
(i) Prepare a summary of budget performance.
(ii) State whether there is a surplus or deficit and by how much.

68. The Audit Department reviewed a project with a total allocation of ₦25,000,000. The following irregularities were discovered:

₦1,500,000 unretired cash advances.

₦2,000,000 over-invoicing.

₦1,000,000 unaccounted materials.

Required:
(i) Determine the total amount of irregular expenditure.
(ii) Compute the percentage of irregular expenditure to total allocation.

69. Discuss how the Audit Department complements the budgeting and costing systems in ensuring the effective control of public funds.

TOPIC 8: ACCOUNTING FOR LOCAL GOVERNMENT, EDUCATIONAL AND

HEALTH INSTITUTIONS

70. a. Explain five (5) objectives of accounting for local government.
b. Identify and explain the main accounts maintained by a local government in Nigeria.

71. Discuss five (5) major sources of revenue to local governments in Nigeria and their importance in local governance.

72. Explain five (5) key features of accounting for educational institutions.

73. State and explain four (4) sources of revenue and four (4) types of expenditure in health institutions.

74. Explain three (3) major differences among local government, educational, and health institution accounting systems.

75. The following information was extracted from the records of Ado Local Government for the year ended 31st December 2024:

Item	Budget (₦)	Actual (₦)
Internally Generated Revenue	12,000,000	10,000,000
Statutory Allocation	18,000,000	19,000,000
Recurrent Expenditure	15,000,000	16,500,000
Capital Expenditure	10,000,000	8,000,000

Required:
Prepare a Budget Performance Report and comment briefly on the results.

76. From the following information, prepare the Income and Expenditure Account for Great Minds College for the year ended 31st December 2024.

Particulars	₦
Tuition Fees	5,000,000
Government Grant	3,000,000
Salaries	4,200,000
Stationery	400,000
Electricity	300,000
Building Maintenance	800,000

77. The following data was extracted from Sunrise General Hospital for the year ended 31st December 2024:

Particulars	₦
Government Subvention	8,000,000
Patient Fees	2,500,000
Salaries	6,000,000
Drugs	2,000,000
Equipment Maintenance	1,000,000
Utilities	500,000

Required:
Prepare the Income and Expenditure Account for the hospital and determine the surplus or deficit.

78. From the following details, calculate the Net Surplus/Deficit of Ijebu Local Government:

Item	₦
Revenue:
Statutory Allocation	20,000,000
IGR	5,000,000
Expenditure:
Personnel	15,000,000
Overhead	7,000,000
Capital Projects	4,000,000

TOPIC 9: HISTORY AND EVOLUTION OF IPSAS (MEANING, OBJECTIVE, SCOPE,

DUE PROCESS, CONVERGENCE OF IPSAS WITH IFRS).DETAILED

STUDIES ON IPSAS REPORTING.

79. Explain the meaning and origin of International Public Sector Accounting Standards (IPSAS).

80. State and explain the main objectives of IPSAS.

81. Discuss the scope of IPSAS and the types of entities it covers.

82. Explain the due process involved in developing IPSAS.

83. Explain the convergence between IPSAS and IFRS and highlight major differences.

84. Explain the concept of IPSAS reporting and its importance in public financial management.

85. Discuss the benefits and challenges of implementing IPSAS in Nigeria.

86. Enumerate and explain the two major bases of IPSAS reporting.

87. Explain the role of IPSAS in public sector reforms and financial transparency.

88. Discuss how IPSAS contributes to accountability and good governance in Nigeria.

89. The following balances were extracted from the books of Brits State of Nigeria as at 30^th September, 2025.

DR CR

N`000 N`000

Cash Account 50,000

Consolidated Revenue Fund 1/1/2025 90,000

Allocation from Federation Account 200,000

Other Revenue 20,000

Personnel Costs 100,000

Ordinary Shares of N1 each in GT Bank Plc 100,000

Deposit 50,000

Advances 60,000

Loans from Federal Government 50,000

Loans to Local Government 60,000

Fixed Deposit –Forum Loans and Saving 40,000

410,000 410,000

The following information is also to be taken into accounts.

i. N20 million should be transferred to Development Fund for Capital projects to be embarked upon in the fourth quarter of 2025.

ii. Other charges approved by the Funds Management Committee and paid during the quarter but which was omitted from the books amounted to N25 million.

iii. Total Grants of N50 million collected from Federal Government for capital projects to be embarked upon in the fourth quarter of 2025 had not been recorded anywhere in the books.

You are required to prepare the following statements for the third quarter of 2025 for submission to the Governor`s Office.

(a) Consolidated Revenue Fund Account

(b) Development Accounts

90. Prepare:

(a) Federation Account

(b) Consolidated Revenue Fund

For the month ended 3oth June, 2023 and the following information were provided:

Inflows: N’000

Import duties 1,000,000

Export duties 750,000

Excise duties 500,000

Petroleum profits tax 200,000,000

Companies’ income tax 177,500,000

PAYE: deductions from the emolument of the Armed Forces 1,000,000

Police personnel 75,000

Residents of Abuja 50,000

Dividend from Federal Government Investments 300,000

Balance b/f 50,781,625

Outflows:

Remuneration of Statutory Officers 34,500,000

Recurrent expenditure 3,750,000

Transfer to: Development Fund 6,250,000

Contingency Fund 50,000

Note: The revenue allocation formula is:

Federal Government 50.65%

State Government 25.62%

Local Government 23.73%

91. (a) Define Consolidated Revenue Fund

(b) How many revenue heads are payable into the Consolidated Fund Account, and which

line of expenditures is it used to finance.

92..(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

93. There are several accounting bases that can be applied in public sector accounting depending on the policies and regulations of the government. These public sector accounting bases include the following:

Cash Basis
Accrual Basis
Budgetary / Appropriation Basis
Commitment Basis
Modified Accrual Accounting Basis and
Modified Cash Accounting Basis

IPSASB allows for the use of both cash basis (in the short term) and accrual basis (ultimately) form of financial reporting.

As a student of Southwestern University Nigeria, enumerate the merit and demerit of both cash basis and accrual basis of public sector accounting and reporting.

94. State what the following International Public Sector Accounting Standards (IPSAS) is in relation to and enumerate their objectives:

a. IPSAS 1

b. IPSAS 2

c. IPSAS 11

d. IPSAS 16

e. IPSAS 18

f. IPSAS 21

95. Write short note on:

a. Trust Fund

b. Special Fund

c. Contigency Fund

d. Capital Project Fund

e. Self-Liquidating Fund

f. General Fund

96. Mawibekiri State Government has a problem of not being able to pay the salaries of workers promptly. Apart from the statutory allocations receivable from the State and Federal Governments, internally generated sources are meagre.

You are the Chief Accountant assigned the responsibility of managing the Treasury.

The following information are available:

On 31 May, 2025, the State anticipated the under listed transactions up to 31 December, 2025:

(a) Advise the Government on the ways of optimizing the use of liquid funds.

(b) Prepare the Cash Budget of the State for June to November, 2025.

Month	Statutory Allocation N`000	Internally Generated Revenue N`000	Salaries N`000	Others N`000
June	50,000	10,000	5,000	600
July	70,000	12,000	4,900	620
August	65,000	8,000	5,100	650
September	72,000	11,000	6,000	630
October	61,000	5,000	7,200	580
November	42,000	3,000	15,000	710
December	49,000	1,560	15,550	490