A government department prepared the following operating budget for the year: Budgeted revenues - Tax revenue $N1,200,000$; Grants $N300,000$. Budgeted expenses - Salaries $N800,000$; Supplies $N150,000$; Capital grants $N200,000$. During the year actual revenues were Tax revenue $N1,150,000$ and Grants $N320,000$. Actual expenses were Salaries $N820,000$; Supplies $N140,000$; Capital grants $N210,000$. At year‑end there is an unspent cash balance of $N50,000$ that must be returned to the Treasury Fund. Compute $a$ the overall budget variance, $b$ the variance for revenues and for expenses, and $c$ the amount to be transferred to the Treasury Fund.

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a) Overall surplus of N50,000. b) Revenue shortfall N30,000; expense overrun N20,000. c) Transfer N50,000 to the Treasury Fund.

Neco 2025 Financial Accounting Question 30

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