Gce Model Questions Vol1 2019 Financial Accounting Question 27

A local authority maintains two funds. The General Fund opened with an unspent appropriation of \(£500,000\). The Capital Maintenance Fund opened with a capital grant of \(£200,000\). During the year the authority: (i) received a revenue grant of \(£80,000\) for services, (ii) incurred operating expenses of \(£300,000\) paid in cash, (iii) purchased a road asset costing \(£120,000\) from the Capital Fund (asset life 20 years, straight‑line depreciation, no residual value), (iv) recorded depreciation for the asset, (v) received cash of \(£20,000\) in advance for services to be delivered next year, (vi) transferred \(£30,000\) from the General Fund to the Capital Maintenance Fund at year‑end. Assuming the advance cash is recorded as a liability and does not affect fund balances, compute the closing balance of each fund at year‑end.