Neco 2019 Financial Accounting Question 27

A local government council prepares its cash receipt and payment statement for the year. The following information (all amounts in ₦) is given: Total revenue receipts (excluding taxes) 2,500,000; Tax revenue 1,800,000; Grants received 300,000; Capital receipts (sale of assets) 150,000; Transfer payments to other agencies 400,000; Salaries and wages expense 1,200,000; Depreciation expense 120,000 (non‑cash); Interest on loans 80,000; Repayment of loan principal 200,000; Purchase of equipment (capital expenditure) 250,000; Miscellaneous cash outflows 70,000. The opening cash balance was 500,000 and opening accrued liabilities were 100,000. At year‑end accrued liabilities increased by 30,000. Compute the cash surplus (or deficit) for the year and the closing cash balance.