Neco 2021 Financial Accounting Question 7

A local government council prepared its annual financial statements. The budgeted revenue consisted of \(\text{₦}150{,}000\) from taxes and \(\text{₦}30{,}000\) from grants (total \(\text{₦}180{,}000\)). Actual cash receipts were \(\text{₦}140{,}000\) of taxes and \(\text{₦}35{,}000\) of grants. Budgeted expenditures were \(\text{₦}120{,}000\) operating and \(\text{₦}20{,}000\) capital (total \(\text{₦}140{,}000\)). Actual cash payments were \(\text{₦}115{,}000\) operating and \(\text{₦}25{,}000\) capital. At year‑end there were accrued expenses of \(\text{₦}8{,}000\) not yet paid and accrued revenues of \(\text{₦}5{,}000\) earned but not received. An unspent budgetary allocation of \(\text{₦}10{,}000\) must be returned to the central government. Determine the adjusted change in the council's fund balance for the year.