Neco 2018 Financial Accounting Question 25

A municipal council prepares a quarterly cash budget for its Health Department.\n\n**Budgeted receipts** (₦): Taxes 5,000,000; Grants 2,000,000; Borrowings 1,500,000 - total 8,500,000.\n**Budgeted payments** (₦): Salaries 3,200,000; Supplies 1,800,000; Capital projects 2,500,000; Interest 200,000 - total 7,700,000. (Budgeted surplus 800,000)\n\n**Actual receipts** (₦): Taxes 4,800,000; Grants 2,200,000; Borrowings 1,400,000 - total 8,400,000.\n**Actual payments** (₦): Salaries 3,250,000; Supplies 1,750,000; Capital projects 2,600,000; Interest 210,000 - total 7,810,000.\n\nAt quarter‑end there is an unspent appropriation of \(\text{₦}150,000\) from the previous quarter that must be transferred to the "Unspent Appropriation Fund". A supplementary grant of \(\text{₦}300,000\) has been received and will be recorded as a liability until spent.\n\nDetermine (a) the cash surplus (or deficit) for the quarter after accounting for the actual receipts and payments, and (b) the amount that should be transferred to the Unspent Appropriation Fund at quarter end.