Ican 2023 Public Sector Accounting And Finance Question 1

The following information relates to the accounts of Dovet State Government for the year ended December 31, 2022: DR CR N‟M N‟M Land and buildings (cost) 387,500 Long-term investments 187,500 Equipment and furniture 67,500 Accumulated depreciation: - Land and building 40,000 - Motor vehicles 30,000 - Equipment and furniture 21,250 Motor vehicles (cost) 145,000 Federation account allocation 287,500 VAT allocation 87,500 Grants from Federal Government 33,750 Internally generated fund 97,500 Grant from donor agency 25,000 Personnel emolument 125,000 Maintenance of premises 5,000 Consolidated Revenue Fund charges 32,500 Overhead expenses 25,000 Miscellaneous expenditure/income 37,500 61,250 Loan notes 250,000 Current assets/liabilities 38,750 36,250 Consolidated Revenue Fund (CRF) 81,250 Total 1,051,250 1,051,250 The following additional information is also relevant: (i) Loan interest outstanding at the end of the year was N12.5 billion. (ii) Depreciation on tangible assets is charged at the following rates on cost: - Building is 5% (cost of land is N250 billion) - Motor vehicles is 20% - Equipment and furniture is 15% (iii) A building costing N12.5 billion with accumulated depreciation of N5 billion was sold for N11.25 billion. This transaction has not been adjusted in the accounts. (iv) Interest on receivable amounted to N10 billion.