Neco Model Questions Vol1 2021 Financial Accounting Question 22

A local government council prepares its annual financial statements (all figures in \(\text{₦ thousands}\)). The following information is given:\n\n- Opening cash balance: \(5,000\)\n- Cash receipts during the year: \(120,000\)\n- Accrued revenue earned but not yet received: \(30,000\)\n- Cash payments during the year: \(80,000\)\n- Accrued expenses incurred but not yet paid: \(20,000\)\n\nAt year‑end an audit discovers that a grant of \(15,000\) was received but not recorded, and a liability for \(10,000\) of accrued salaries was omitted. The council uses the accrual basis for its financial statements but prepares the cash‑flow statement on a cash basis.\n\nDetermine: (a) the corrected cash balance at year‑end, (b) the corrected total assets, (c) the corrected total liabilities, and (d) the surplus (or deficit) for the year on an accrual basis.