Gce Model Questions Vol1 2019 Financial Accounting Question 3

A local government department had the following budgeted figures for the year: revenue budget \(\text{₦}15,000,000\), expense budget \(\text{₦}12,000,000\). The actual cash receipts were \(\text{₦}14,200,000\) and cash payments were \(\text{₦}11,500,000\). At year‑end the following adjustments were required: \(\text{₦}300,000\) for services received but not yet paid (accrued expense), \(\text{₦}200,000\) provision for doubtful receivables (reduces revenue), a non‑cash grant of \(\text{₦}500,000\) recorded in the income statement but not in cash receipts, and \(\text{₦}400,000\) of revenue earned but not yet received (accrued revenue). Determine the department's reported surplus (or deficit) in the statement of financial performance and the cash surplus (or deficit) for the year.