Waec Model Questions Vol1 2024 Financial Accounting Question 4

A local government council prepares its annual financial statements. The following data (in ₦ thousands) are given: - Total revenue appropriated in the budget: 120,000 - Actual revenue collected: 115,000 - Total expenditure appropriated: 110,000 - Actual expenditure incurred: 112,000 - A capital grant of 20,000 was received during the year (recorded as revenue but not appropriated). - Opening cash balance: 15,000 - Opening capital reserve: 30,000 Assume that any revenue not collected is still receivable and any unspent appropriation for expenditure would reduce expense (there is none in this case because expenditure exceeded appropriation). Compute (a) the closing cash balance and (b) the total equity (capital reserve plus surplus/deficit) to be reported in the statement of financial position.