Theory question 104
Public Sector Accounting(a) List: (i) three books of accounts used in public sector accounting; (ii) four users of public sector accounting information.
(b) State four differences between the private sector accounting and the public sector accounting.
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(a)(i) Any three: cash book; vote book (vote expenditure book); departmental vote book; treasury cash book; revenue collectors' books; ledgers (personal advances, deposits); payment and receipt vouchers.
(ii) Any four: legislature/parliament; government (executive) and ministries; the public/taxpayers; auditor-general; donor agencies and lenders; investors and researchers; civil servants and unions.
(b) Any four: aim – profit vs service to the public; source of funds – capital and sales vs taxes, grants and loans; basis – accruals vs mainly cash; regulation – Companies Act vs constitution and financial regulations; owners – shareholders vs the public; budget is binding in the public sector; no profit and loss account / no dividends in the public sector.
List the books and users, then contrast aim, funding, basis and regulation.