Gce Model Questions Vol1 2022 Financial Accounting Question 18
Practice objective / multiple choice question 18 from the 2022 Gce Model Questions Vol1 Financial Accounting examination.
A local authority received a restricted grant of \(\text{₦}1,200,000\) intended to fund a capital project costing \(\text{₦}1,500,000\). During the year it incurred \(\text{₦}900,000\) of the project expenditure. According to public‑sector accounting rules, the portion of the grant that can be recognised as income is proportional to the expenditure incurred. Calculate the amount of the restricted grant that must be shown as a deferred liability at year‑end.
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About This Question
This is Gce Model Questions Vol1 2022 Financial Accounting Question 18. It is one of the objective questions from the 2022 Gce Model Questions Vol1 Financial Accounting examination.
Difficulty level: Hard .
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