1. (4 Points)
The following amounts have been legally approved as the budget for the General Fund of Riyadh Municipal Corporation government for the fiscal year, 2017. As of January 1, 2017, the first day of the fiscal year, the total Estimated Revenues are SAR.500, 000 and it should be recorded in the General Fund general ledger control account, an amount of SAR.450, 000 were made towards appropriations and SAR.50,000 towards Budgetary Fund Balance.
The amounts expected to be recognized during 2017 from each revenue source specified in the budget should be recorded in subsidiary ledger accounts. Expected revenues include SAR.300,000 towards Taxes, SAR.50,000 towards Licenses and Permits, SAR.50,000 towards Intergovernmental Revenues, SAR.50,000 towards Charges for services, SAR.25,000 towards Fines and Forfeits, and SAR.25,000 towards Miscellaneous Revenues. Appropriations were also made for the above said revenues and they are as follows.
General Government : 120,000
Public Safety : 150,000
Public Works : 100,000
Cultural and Recreation : 80,000
You are required to pass the appropriate entry in the books of General Ledge and Subsidiary Ledgers.
2. Explain the different types of Government Activities (Governmental-type, Business-type and Fiduciary-type)? (3 Points)
3. Discuss the nature and purpose of “fund accounting.” (3 Points)