 MEKDEL AMBA UNIVERSTY.

 COLLEG OF BUSINESSES AND

ECONOMICS
 DEPARTMENT OF ACCOUNTIN AND FINANCE

 Government and NFP Accounting.

 INDIVIDUAL ASSIGNMET
 .Section Three
Set by:-Natnael Amare
ID:-1576

Submitted to: - Werkneh.

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 Answer the following question
Solution:-
Transaction 2:-Property tax receivable…………………………………7,200,000

Revenue current …………………………………………………………7,060,000

Allowance for uncollectable tax ………………………………………… 140,000

Transaction.3:- cash ………………………………………..6.500,000

Property tax receivable…………………………………6,500,000

: - Cash…………………………………………………1,020,000
Other revenue…………………………………………….1, 020, 0000
T.N.4:- Allowance for uncollectable tax…………………………130,000

Property tax receivable…………………………………………..130,000

T.N.5:- purchase order ……………………………………3,600,000
Cash…………………………………………….3, 600,000
T.N.5:- cash……………………………………………………3,800,000
Order purchase receivable………………………………………..3,800,000
T.N.5:6:- cash…………………………………………………500,000
Internal service fund…………………………………200,000
Enterprise fund………………………………………300,000
T.N.7:- Internal service fund………………………………..140,000
Enterprise fund………………………………………250,000
Cash……………………………………………………….390, 000
T.N.8:-transfer to DSF…………………………........................110,000
Cash……………………………………………………..110,000
T.N.9.A:- cash……………………………………………………400,000
Property tax receivable……………………………………400,000
T.N .9.B:-cash…………………………………………………..100,000
Subsidy…………………………………………………100,000
T.N, 10:- Allowance for uncollectable tax……………………………..10,000
Allowance for uncollectable delinquent………………………..10,000
T.N.11.:- cash…………………………………………………..125,400
Flat penalty…………………………………………57, 000
Tax receivable………………………………………68,400

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 T, N.12:-cash………………………………………………………467,900
Tax receivable……………………………………..342,500
Interest receivable………………………………….68, 400
Penalty receivable………………………………......57,000
T.N.13:- cash……………………………………………………228,000
Tax due……………………………………………228,000
T.N.14:- cash…………………………………………………….420, 000
Selling expense……………………………………………….420, 000

A. General fund
A general fund is the primary fund used by a government entity. This fund is used to record
all resource inflows and outflows that are not associated with special-purpose funds. Used
to account for all financial resources that are not restricted to specific purposes or
otherwise required to be accounted for in another fund. Only fund that all
governments have.
. The General Fund is usually the largest and most important of the funds maintained
by governmental units.
The General Fund typically has a greater number and variety of revenue sources than
other funds and its resources finance a wide range of governmental activities.
B. Special Revenue Funds
Used to account for general government financial resources that are restricted by
Law or contractual agreement to specific purposes other than debt service or major
Capital projects. Exist as long as the government has resources dedicated to specific
purposes.

C. Debt service fund

A debt service fund is a cash reserve that is used to pay for the interest and principal payments
on certain types of debt. Debt service fund is used to account for both the repayment of the
principal and payment of interest of the long-term debt when they are due. Often debt service
funds are legally mandated. Other times, the government administrator might think a debt service
fund is useful for management of resources being accumulated for debt service.

D. Enterprise Fund

Enterprise fund means a fund used to account for operations that are financed and operated in
a manner similar to private business enterprises where the intent of the governing authority is
that the costs of providing goods and services to the general public on a continuing basis be
financed or recovered primarily through user charges or where the governing authority has
decided that periodic determination of revenues earned, expenses incurred, or net income is
appropriate for capital maintenance, public policy, management control, accountability, or
other purposes.

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E. Internal Service Funds
Internal Service Funds—to account for the financing of goods or services provided by
one department or agency to other funds, departments, or agencies of the governmental
unit, or to other governmental units, on a cost-reimbursement basis.
F. Trust Funds &/or Agency Funds.

Trust funds are used to account for assets held by the government in a trustee
capacity.

 Example: - Unemployment, School Employees, Unemployment Compensation Disability,

California State University and Colleges Trust, Student Loan, Housing Loan.

Agency funds are used to account for assets held by the government as an agent for
individuals, private organizations, other governments, and/or other funds.

 Examples of Major agency funds included in this group are Revenue Collecting and Disbursing,
Deposit, and Departmental Trust, Investment trust Fund, consisting of the Local Agency Investment
Fund.