Waec Model Questions Vol1 2021 Financial Accounting Question 48
Practice objective / multiple choice question 48 from the 2021 Waec Model Questions Vol1 Financial Accounting examination.
A municipal council receives a grant of ₦2,000,000 to construct a community centre. The grant is conditional: 30% is unrestricted and can be recognised as revenue immediately, while the remaining 70% must be spent within the financial year, otherwise it must be returned. By year‑end the council has spent ₦800,000 of the conditional portion on the project and incurred other unrelated expenses of ₦300,000. What is the net increase in the council's fund balance at year‑end as a result of this grant?
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About This Question
This is Waec Model Questions Vol1 2021 Financial Accounting Question 48. It is one of the objective questions from the 2021 Waec Model Questions Vol1 Financial Accounting examination.
Difficulty level: Hard .
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