1) Differentiate between Public sector accounting and Private sector accounting 2) Sources of revenue for a local government 3) Items of expenditure of a lo...

Assessment: WAEC SSCE - Financial Accounting - 2018 (Essay) Subject: Financial Accounting

Question 1 Report

1) Differentiate between Public sector accounting and Private sector accounting

2) Sources of revenue for a local government

3) Items of expenditure of a local government

 

Answer Details

1. Public sector versus Private sector accounting

Public sector accountingPrivate sector accounting
Keeps accounts for government and its agencies.Keeps accounts for individuals and privately owned businesses.
Main aim is to render services/welfare, not profit.Main aim is to make and maximise profit.
Largely uses cash/fund accounting and budgets backed by law.Largely uses accrual accounting to measure profit.
Revenue mainly from taxes, rates, levies, grants and allocations.Revenue mainly from sales, capital and loans.
Governed by financial regulations and appropriation/enabling laws.Governed by the Companies Act and accounting standards.

2. Sources of revenue for a local government

  • Statutory allocation/subvention from federal and state governments.
  • Property (tenement) rates.
  • Market tolls and stall/shop rents.
  • Motor/lorry park levies.
  • Licences and permits (building, entertainment, etc.).
  • Registration fees (marriage, birth and death certificates).
  • Court fines and royalties.
  • Grants from donor agencies and interest on investments.

3. Items of expenditure of a local government

  • Wages and salaries of staff.
  • Provision of primary healthcare and medical services.
  • Construction and maintenance of roads, drains and street lighting.
  • Provision and maintenance of water supply.
  • General administration and running costs.
  • Maintenance of markets and motor parks; refuse disposal.
  • Capital projects (office buildings, vehicles, equipment).
  • Grants and donations to communities and charities.
Read lesson note on Public Sector Accounting (JAMB)
Read lesson note on Accounts Of Not-for-profit-making Organizations (JAMB)
View Answer

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