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JAMB Principles of Accounts 2007 Question 24

Question 24

Public Sector Accounting

The federal government approved ₦140 m to local governments W, X, Y and Z. The amount is to be shared on the basis of 40% equality, 35% population and 25% internal revenue generation. Calculate the share of local government W on equality.

  1. A.₦35 m
  2. B.₦14 m
  3. C.₦56 m
  4. D.₦28 m.
Show the answer and explanation

Answer: B (₦14 m)

Explanation

Equality portion = 40% × 140 m = ₦56 m, shared equally among 4 councils: 56 ÷ 4 = ₦14 m.