Neco Model Questions Vol1 2020 Financial Accounting Question 35

A local government council prepared its annual budget as follows (all figures in naira):\n\nEstimated revenues - Tax: \(\text{₦}1\,200\,000\), Grants: \(\text{₦}300\,000\), Fees: \(\text{₦}150\,000\).\nEstimated expenditures - Salaries: \(\text{₦}800\,000\), Maintenance: \(\text{₦}250\,000\), Capital projects: \(\text{₦}400\,000\), Debt service: \(\text{₦}100\,000\).\n\nDuring the year the actual figures were:\n\nRevenues - Tax: \(\text{₦}1\,150\,000\), Grants: \(\text{₦}320\,000\), Fees: \(\text{₦}140\,000\), plus a special grant of \(\text{₦}50\,000\) that was spent entirely on capital projects.\nExpenditures - Salaries: \(\text{₦}820\,000\), Maintenance: \(\text{₦}260\,000\), Capital projects: \(\text{₦}380\,000\), Debt service: \(\text{₦}110\,000\).\n\nCompute (a) the actual cash surplus (or deficit) for the year and (b) the variance between the estimated surplus and the actual surplus (state the variance as a positive number if the actual surplus is higher, otherwise as a negative number).