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WAEC Financial Accounting 2013 Question 32

Question 32

Public Sector Accounting

Use the following information to answer questions 32 and 33.
Aminn Local Government prepared its receipts and payments account from the following:
Fines: Le 20,000
Market rates: Le 120,000
Salaries: Le 60,000
Maintenance of vehicles: Le 49,000
Park collections: Le 100,000
The balance at the end of the period is

  1. A.Le 270,000
  2. B.Le 139,000
  3. C.Le 131,000
  4. D.Le 120,000
Show the answer and explanation

Answer: C (Le 131,000)

Explanation

Receipts = 20,000 + 120,000 + 100,000 = 240,000. Payments = 60,000 + 49,000 = 109,000. Balance = 240,000 − 109,000 = Le 131,000.