Gce Model Questions Vol1 2022 Financial Accounting Question 11

A local authority prepares its statement of financial activities. The opening cash balance was £(120{,}000) and opening net assets (excluding cash) were £(80{,}000). During the year the following cash transactions occurred: tax revenue received £(250{,}000), grant revenue received £(80{,}000), interest income received £(5{,}000), prepaid income received in advance £(6{,}000), salaries paid £(150{,}000), supplies paid £(30{,}000), interest expense paid £(4{,}000) and capital expenditure paid £(100{,}000). At year‑end the cash balance is £(115{,}000). In addition, the authority incurred accrued expenses of £(12{,}000) not yet paid and recorded depreciation of £(20{,}000). Assuming no other transactions, calculate the surplus for the year on an accrual basis.