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JAMB Principles of Accounts 2013 Question 49

Question 49

Public Sector Accounting

Given:
Assets and Liabilities of a Local Government
Bank balance ₦6,484,000
Cash ₦900,000
General revenue balances ₦9,774,500
Accrued salaries ₦1,220,000
Investments in shares ₦1,480,000
Vehicles ₦7,620,000
Calculate the liabilities of the local government.

  1. A.₦10,994,500.
  2. B.₦17,394,500.
  3. C.₦18,774,500.
  4. D.₦18,874,500.
Show the answer and explanation

Answer: A (₦10,994,500.)

Explanation

The fund and liability side is the general revenue balance plus accrued salaries: 9 774 500 + 1 220 000 = ₦10 994 500. Bank, cash, investments and vehicles are assets.