Governmental Accounting: Mr. Ismail Ibrahim Duale Contact Details: Phone: 00252634601580 Whats App: 00252659917146

GOVERNMENTAL
ACCOUNTING
Mr. Ismail Ibrahim Duale
Contact Details:
Phone: 00252634601580
Whats app: 00252659917146
Email: ismailduale523@gmail.com

MBA, and BA iin Accounting and Finance
CHAPTER ONE
OVERVIEW OF
GOVERNMENTAL
ACCOUNTING

INTRODUCTION
 There are organizations whose object is not to
make profit.
 These not-for-profit organizations account their
resources and financial activities under different
accounting system.
 Every organization wants to be successful, of
course In order to know if it is successful,
“success” must be defined in terms of goals.
 And then it needs some means to measure its
results against its goals.

MBA and BA in Accounting and Finance
 Measuring success is often thought of in
terms of effectiveness (achieving the goal
at the highest level) and efficiency
(achieving the goal through using the least
amount of resources.
 For profit seeking organizations(F.P.) or
organizations whose objective is to make profit,
both efficiency and effectiveness can easily be
measured with financial statement.

MBA and BA in Accounting and Finance
USES AND USERS OF FINANCIAL REPORTS OF
GOVERNMENTAL UNITS
 The objective of financial reporting by
governments reflects the information needs of
those who use these reports and the distinctive
character of the governmental operations.
 The principal users of external financial reports
by governments are:
1.The citizenry;
2. Legislative and other oversight bodies; and
3. Creditors and investors in securities issued by
the government.
 Citizens, legislators, and other oversight
officials use financial reports to access
Accountability, that is, to access whether the
government has operated in a Responsible
manner.
 Creditors and Investors in government
securities use financial reports to access a
government’s financial condition and its
compliance with financial laws and
regulations.

 Financial Reporting Objectives:
1. Financial reporting should assist in fulfilling
government’s duty to be publicly accountable
and should enable users to assess that
accountability by:
a)Providing information to determine whether
current year revenues were sufficient to pay for
current year services;
b)Demonstrating whether resources were
obtained and used in accordance with entity’s
legally adopted budget, and demonstrating
compliance with other finance related legal or
contractual requirements;
c) Providing information to assist users in
assessing the service efforts, costs, and
accomplishments of the governmental entity.
2. Financial reporting should assist users in
evaluating the operating results of the
governmental entity for the year by:
a)Providing information about sources and uses of
financial resources;
b)Providing information about how it financed its
activities and met its cash requirements;
c) Providing information necessary to determine
whether its financial position improved or
deteriorated as a result of the year’s operations
3. Financial reporting should assist users in
assessing the level of services that can be
provided by the governmental entity and its
liability to meet its obligations as they become
due by:
a)Providing information about its financial position
and condition;
b)Providing information about its physical and
other non financial resources having useful lives
that extend beyond the current year, including
information that can be used to assess the
service potential of those resources;
c) Disclosing legal or contractual restrictions on resources
and the risk of potential loss of resources.
 It can be understood from the statement that
Accountability is the cornerstone of all financial
reporting in government.
 Accountability requires governments to answer
to the citizens, to justify the raising of public
resources and the purposes for which they are
used.
 Governmental accountability is based on the
belief that citizenry has a “right to know” a right
to receive openly declared facts that may lead to
public debate by the citizens and their elected
representatives.
 Financial reporting plays a major role in fulfilling
governments duty to be publicly accountable in a
democratic society.
 the GASB believe that inter period equity is a
significant part of accountability and is
fundamental to public administration.
 It therefore needs to be considered when
establishing financial reporting objectives.
 In short financial reporting should help users
assess whether current year revenues are
sufficient to pay for services provided that year
and whether future taxpayers will be required to
assume burdens for services previously
provided.
 Financial reports of Non profit organizations-
Voluntary health and welfare organizations,
college and universities, Hospitals, religious
organizations and others- have similar uses but,
in recognition of the fact that the financial
operations of NFPs are generally not subject to
as detailed legal restrictions as are those of
governments
 The financial accounting standards board
believes the financial reports for not-for-profit
organizations should provide:

1. Information useful in making resource
allocations decisions;
2. Information useful in assessing services and
ability to provide services;
3. Information useful in assessing management
stewardship and performance; and
4. Information about economic resources,
obligations, net resources and changes in them.

Financial Reporting Entity
 Financial reporting entity for a state and local

governments consists of a primary government
and its components and its units.
 The financial reporting entity also includes
related organizations that do not qualify as
component units; they are “other organizations
for which the nature and significance of their
relationship with the primary government are
such that exclusion would cause the reporting
entity’s financial statements to be misleading or
incomplete.
ISSUES: A CITY’S REPORTING ENTITY
 In addition to other operations of a municipality,
Capital City is associated with a university
located in the city. The university was once a city
college wholly owned and operated by the city,
twenty years ago, the state added the university
to its higher education system and began
subsidizing the university according to a formula
applied to all universities in the state system.
 The state subsidy represents about 60% of the
university’s total revenue.
 The remaining 40% is split about equally between
student tuition and endowment income.
 The university is administered by a board of nine
trustees – three elected by residents of the city,
three appointed by the mayor and three
appointed by the state governor.
 The university operates several book stores
organized as a separate nonprofit corporation;
they are wholly owned by the university, and the
considerable profits are invested in a scholarship
endowment fund.
 One could argue that the university is a
component unit of the city and, therefore, should
be included in the city’s financial reporting entity
because six of the nine trustees come from the
city.
 However, one could also argue that only three of the
trustees really come from the city government (the other
three come from the electorate), making control of the
board by the government far from assured.
 Thus, although the university is related to the city, it is
not a component organization of the city.
 We lack sufficient information to resolve this matter, and
the university may be either a component unit of the city
or merely a related organization.
 In In either case, however, it is likely that the nonprofit
corporation operating the books would be a component
unit of the university.

FUND ACCOUNTING SYSTEM
 The accounts of a governmental unit are
partitioned into segments called “Funds”, and
separate financial statements are prepared for
each fund.
Definition of Fund:
 A fund is defined as a distinct accounting entity
“with a self-balancing set of accounts and other
financial resources, together with all related
liabilities and residual equities or balances and
changes there in”.

 It has key phrases indicating the following
points; It is by itself is an entity, having its own
accounting existence and a self balancing set of
books(double entry system).
 That set of books is established for recording a
specific financial activity.
 The establishment of the fund will attain a
specific objective and will have regulations,
restrictions or limitations.

TYPES OF FUNDS
 The accounting system of a government is
composed of as many funds as are required by
law or deemed appropriate by the government
itself for sound financial administration.
 There are three types of funds with sub funds of
each type.
1. Governmental Funds
2. Proprietary Funds.
3. Fiduciary Funds.

Governmental Funds
 General Fund: to account for financial resources except
those required to be accounted for in another fund.
 Special Revenue Funds: to account for the proceeds of
specific revenue sources (other than expendable trusts,
or for major capital projects) that are legally restricted to
expenditure for specified purposes.
 Capital Project Funds: to account for financial
resources to be used for the acquisition or construction
of major capital facilities (other than those financed by
proprietary funds and trust funds).
 Debt Service Funds: to account for the accumulation of
resources for, and the payment of general long-term
debt principal and interest.

Proprietary Funds
a) Enterprise Funds: to account for operations:
 That are financed and operated in a manner similar to
private business enterprises where the intent of the
governing body is that the cost (expenses, including
depreciation) of providing goods or services to the
general public on a continuing basis be financed or
recovered primarily through user charges, or
 Where the governing body has decided that periodic
determination of revenues earned, expenses incurred,
and/or net income is appropriate for capital maintenance,
public policy, management control, accountability, or
other purposes.

b) Internal Service Funds: to account for the
financing of goods or services provided by one
department or agencies of the governmental
unit, or to other governmental units, on a cost
reimbursement basis.
Fiduciary Funds
a)Trust and Agency Funds: to account for assets held by
a governmental unit in a trustee capacity or as an agent
for individuals, private organizations, other governmental
units, and/or other funds. These include
1. Expendable Trust Funds;
2. None Expendable Trust Funds;
3. Pension Trust Funds;
4. Agency Funds.
MEASUREMENT AND RECOGNITION
 Two measurements must be in order to describe an
accounting system
1. What resources are measured?; and
2. When are the effects of transactions on those resources
recognized?
 Accounting for governmental funds has a much narrower
focus than accounting for businesses.
 Whereas the focus of business accounting is all
resources or assets of a business, the focus of
governmental fund accounting, which is called the “follow
of financial resources focus”, is just the financial
resources of the fund:
 Cash, Claims to cash (securities and receivables), Claims
to goods or service (prepayments), Consumable goods
(supplies inventories) and Equity securities
MEASUREMENT AND RECOGNITION OF
REVENUE
 Most government fund revenues do not arise
from exchange transactions; consequently a
different revenue recognition principle is
required.
 Most government fund revenues arise from
taxation and other non exchange transactions
including fines, license, fees and donations.
 Such revenues are typically recognized when
they become measurable and available for
expenditure.

TAX REVENUES
 Under GASB Statement No. 11, Tax revenues
should be recognized when
1. The underlying transaction or event has taken
place and
2. The government has demanded the taxes from
the tax payer by establishing a due date; these
two conditions are evidence that the government
has obtained financial resources, regardless of
when cash is received (GASB Statement No. 11
pars. 40 and 144).

Sales and Income Tax Revenues
 Application of these criteria to sales and income taxes
results in the recognition of tax revenues in the period
during which the related sales or income earnings
occurs.
Property Taxes Revenues
 Application of these criteria to property taxes usually
results in recognition of tax revenues in the period in
which the taxes are billed.
Non Tax Revenues
 Nontax revenues arising in non exchange transactions
including revenues from fines, licenses and permits, and
donations should be recognized “when the underlying
event takes place and the government has an
enforceable legal claim to the amounts, regardless of
when received. Mr. Ismail Ibrahim Duale
MEASUREMENT AND RECOGNITION OF EXPENDITURE
 As a consequent of the flow of financial

resources measurement focus, governmental
funds use expenditure accounting rather than
expense accounting.
 Unlike expense accounting, expenditure
accounting does not entail the matching of
expenditure with related revenues.
 In general, expenditures are “recognized when
transactions or events that result in claims
against the financial resources take place,
regardless of when cash is paid (GASB
Statement No. 11 par.73).
 In most cases, a government recognizes expenditure
when it receives goods and services to be paid for at
later time.
 Thus, expenditures for salaries should be recognized
when the related work is performed, and expenditures
for utilities should be recognized when utility services are
used.
CAPITAL EXPENDITURES
 Capital expenditures result from the acquisition of capital
assets through purchase, construction, or capital lease.
Such expenditures should be recognized when the
capital asset is acquired. T
 Thus, the full cost of an asset is included in expenditures
for the period of its acquisition
BUDGETS AND EXPENDITURES CONTROL
 Government accounting systems frequently
record “Budgeted Revenues and
Expenditures” as well as “Actual Revenues
and Expenditures”.
 The dual recording makes possible a continuing
comparison of actual and budgeted items
throughout the year, thus serving as an aid to
effective budgetary control and accountability.
 Control of expenditures is particularly important
in governments, as the following issues section
indicates.

APPROPRIATION AND EXPENDITURES
 Capital city, population 200,000 employs a widely used
budgetary process to control expenditures.
 The process begins with preparation of a budget.
 The city’s budget officer assembles the budget requests
and prepares the budget document, which is submitted to
the city council for possible modification, adoption
and final enactment.
 The budget includes estimates of revenues from such
sources as property taxes, income taxes, licenses and
permits, fines, intergovernmental grants, and shared
revenues.
 The expenditure budget, once modified and adopted by
the council, is enacted into law by the passage of an
appropriation ordinance.
 The appropriation authorizes the various city
departments to make expenditures and to incur
obligations up to the maximum level specified by the
appropriation.
 Expenditures in excess of the appropriation are illegal
unless a supplemental appropriation to cover the excess
is later approved by the council.
 Statutes applicable to Capital City direct that
unexpended appropriations lapse at the end of the
budget period.
 In some cities however, unexpended appropriations do
not lapse and continue as authority to make
expenditures in the subsequent period.

 To illustrate, assume that a general fund begins
1995 with no assets or liabilities. The budget for
1995 shows estimated revenues of $100,000 and
other financing sources (operating transfer in) of
$20,000, and authorized expenditures of $95,000
and estimated other financing uses (operating
transfer out) of $10,000. To simplify this
illustration, assume that all revenues of the fund
are received in cash and all expenditures are
paid in cash. Actual revenues and expenditures
for 1995 were $96,000 and $94,500,
respectively. The actual operating transfers in
and out were equal to the budget amounts.

Recording the Annual Budget
Dr. Cr.
1. Est. Revenues
Control …………………….$100,000
Est. Other financing
source control ………......…$20,000
Appropriations Control ………………….. $95,000
Est. other financing
uses control ……………………………….. $10,000
Budgetary fund balance ………..………… $15,000

Recording Actual Sources and Uses of Funds
Dr. Cr.
2. Cash ………….. …….$116,000
Revenues Control ………………….. $96,000
Other financing
sources control ..……………………. $20,000
3. Expenditures control …. $94,500

Other financing
uses control ……………$10,000
Cash ………………………….. $104,500
CLOSING ENTRIES
 In order to prepare the accounts for the next
year, the current year’s budget must be removed
from the records and the accounts for actual
sources and uses of resources must be closed
to the unreserved fund balances.
 This two step closing process is accomplished
by the following entries:

Dr. Cr.
Appropriations control …….. $95,000
Estimated other financing
uses control …………………. $10,000
Budgetary fund balance …….$15,000
Estimated revenues control ……………. $100,000
Estimated other financing
sources control ………………………..….. $20,000

Dr. Cr.
Revenues control ….. $96,000
Other financing
sources control ……… $20,000
Expenditure control.……………….. $94,500
Other financing uses
control ………………………………. $10,000
Unreserved fund balance .………... $11,500

Encumbrance Accounting
 A governmental unit often makes a commitment to future
expenditures prior to the time it is legally obligated to pay the
expenditures.
 Such commitments, which are called encumbrances, take in
the form of purchase orders, purchase agreements, or other
unperformed (executor) contracts for goods and services.
 The amount available for future expenditure is the excess of
the appropriations over the sum of both encumbrances and
expenditures.
 In order to avoid exceeding appropriation limits, encumbrances
are recorded in the expenditure subsidiary accounts as well as
in the encumbrances control account.
 The recording of encumbrances is particularly appropriate in
general funds, special revenue funds, and capital project
funds.

Recording Encumbrances
 Encumbrances are frequently recorded before the amount of
the related future expenditure is known with precision.
 Consequently, the recording of encumbrances does not
replace the recording of expenditures.
 Consider a purchase in the general fund of police
department supplies; the 1995 budget for such supplies
is $1,200.
 On January 15, 1995, a purchase order is issued for the
acquisition of supplies with an estimated cost of $500.
On February 20, 1995, the supplies are received,
together with an invoice giving their cost as $512.

General fund entry to record encumbrance – January 15, 1995
Description Debit Credit
Encumbrance control – police department supplies $500
Fund balance reserved for encumbrance $500
General fund entry to record reversal of encumbrances –

February 20, 1995
Fund balance reserved for encumbrances $500
Encumbrance control – police department $500
supplies

General fund entry to record expenditures – February 20, 1995

Expenditure control – police department supplies $512
Vouchers Payable $512
Recording Encumbrances
Encumbrances are not expenditures.
Encumbrances lead to expenditures, but the two amounts must
be distinguished from one another.
The balance of encumbrances at year end should not be
combined with expenditures in operating statements.

REPORTING A FUND BALANCE RESERVED FOR
 At year end, the debitENCUMBRANCES
balance of the encumbrances control
account equals the credit balance of the fund balance reserved
for encumbrances account.
 Moreover, the reciprocal balances are artifacts of the budgetary
control system; and strictly speaking, neither account is reported
in the financial statements of the related fund.
 Although neither account is reported, as such, a segregation of
the fund’s equity balance, under the circumstances described
subsequently, may be required in the amount of the outstanding
encumbrance, for example, when appropriations do not lapse (or
when the unencumbered portion of the appropriation lapses), the
encumbered portion of the appropriation continues to be effective
after year end and confers authority on the governmental unit to
complete transactions in process at year end.

 In such cases, fund balance reserved for encumbrances
should be established to indicate a commitment to make an
expenditure in the subsequent year.
 Suppose that $30,000 of encumbrance had been outstanding
at the end of the year:
Fund balance reserved for encumbrance $30,000
Encumbrance control – supplies $30,000

Unreserved fund balance $30,000
Fund balance reserved for encumbrances $30,000

RECORDING EXPENDITURES RELATED TO
ENCUMBRANCES OF PRIOR YEAR
 As indicated previously, when appropriations related to year
end encumbrances do not lapse, or only unencumbered
appropriations lapse, the fund balance reserved for
encumbrances is appropriately carried forward to the next
year as a segregation of the fund balance.
 On the first day of the subsequent year (1996), the
encumbrances control account for the $30,000 encumbrances
shown in the above example should be reestablished by the
following entries:

Unreserved fund balance $30,000

Encumbrance control $30,000
When invoice was received in 1996 for the supplies, the

reversal of the encumbrances of $30,000 and the actual cost of
$31,000 would be recorded in the general fund by the following
entries:

Encumbrances control – supplies $30,000

Expenditure control – supplies $31,000
Vouchers payable $31,000

Accounting for the General Fund
 The general fund accounts for the general operations of a
governmental unit that is the general fund accounts for all
financial resources that are not accounted for in another fund.
 The accounting system for every governmental unit contains at
least one general fund.
 In addition, of course, the governmental unit may also employ
other funds for specific purpose.
 Let us illustrate the accounting entries and financial statements
prepared for a general fund by reference to the city of
Hargeisa. Hargeisa was incorporated in 1996, and its
accounting system includes the following funds and account
groups:
 On December 15, 1996, the city council of Hargeisa adopted
the 1996 budget for the city government. The budgeted
estimated revenues, authorized expenditures, and estimates
other financing uses are as follows:
General Fund Budget for 1996
Estimated Revenues:
Property tax (net) $258,000
Interest and penalties on delinquent taxes (net) 400
Others 63,600
Total estimated revenues $322,000
Appropriations – Expenditures:
Supplies $21,000
Salaries 122,000
Transportation equipment 14,300
Interest 250
Other 150,450
Total estimated expenditures $308,000
Estimated other financing uses – operating transfers out 10,000

(To debt service fund)
Total appropriations and estimated other financing uses $318,000
Excess of est. revenues over appropriations and other est. financing uses $4,000

 In addition to providing for estimated revenues and
appropriating amounts for various expenditures, the budget
provides for a transfer of cash from the general fund to the
debt service fund.
 The transfer to the debt service fund will be used to pay
matured principal and interest on long-term debt.
 On December 31 1996, the general fund had the following
balance sheet:

City of Hargeisa
General Fund Balance sheet
At December 31, 1995
Assets
Cash $8,400
Taxes Receivable – delinquent $2,400
Less: allowance for uncollectible 1,000 1,400
Total Assets $9,800
Liabilities and Fund balance
Voucher Payable $420
Unreserved fund balance 9,380
Total liabilities and unreserved fund balance $9,800

Recording the Budget
Estimated Revenue Control $322,000
Appropriation Control $308,000
Estimated other financing use control 10,000
Budgetary fund balance 4,000
2. On January 1, 1996, property taxes are levied in the actual

amount of $272,000, which includes $14,000 estimated to be
uncollectible.
Tax Receivable – current $272,000
Revenues Control – property taxes $258,000
Allowance for uncollectible – current taxes 14,000

3. Delinquent property taxes in the amount of $1,500 are
collected on January 12, 1996, and the remainder of prior year’s
delinquent taxes is judged to be uncollectible.
a)Cash $1,500
taxes receivable – delinquent $1,500
b) Allowance for uncollectible – delinquent taxes $900

taxes receivable – delinquent $900
c) Allowance for uncollectible – delinquent taxes $100

revenues control – property taxes $100

4. To provide operating resources prior to collection of the 1996
tax levy, the general fund borrows $50,000 from a local bank on
a tax anticipation notes payable on January 15, 1996. The face
of the note and $250 in interest are paid to the bank on July 15,
1996.
a)Cash $50,000
tax anticipation notes payable $50,000
b) Tax anticipation notes payable $50,000

Expenditure control – interest 250
Cash $50,250

5. Current property taxes in the amount of $255,600 are collected,
and current taxes in the amount of $9,900 are written off as
uncollectible. Uncollected taxes become delinquent at December 5
of each year. An allowance for uncollectible delinquent taxes in the
amount of $3,280 is provided at December 5, 1996.
a)Cash $255,600
Taxes receivable – current $255,600
b) Allowance for uncollectible – current taxes $9,900
c) Taxes receivable – delinquent $6,500
d) Allowance for uncollectible – current taxes $4,100
Revenue control – property taxes $820
Allowance for uncollectible – delinquent taxes 3,280

6. At December 31, 1996, interest and penalties accrued on
delinquent taxes amount to $450; of this amount, $50 is
estimated to be uncollectible.
interest and penalties receivable on taxes $450
Revenues control – interest $ penalties on
delinquent taxes $400
Allowance for uncollectible 50
7. Revenues other than property taxes are collected in the total
amount of $56,000.
Cash $56,000
Revenue control – other $56,000

8. Encumbrances for supplies and other expenditure are
recorded in the amount of $176,250.
Fund balance reserved for encumbrance $176,250
9. During 1996, vouchers totaling $175,000 (these had been
encumbered for $175,800), were approved for payments of
enumerated expenditures as follows: supplies, $20,000,
transportation equipment, $15,000, and other expenditures,
$140,000. Vouchers totaling $132,000 were approved for
payment of unencumbered expenditures as follows: Salaries,
$120,000, and other expenditures of $12,000. In addition, cash
of $10,000 was transferred to the debt service fund.

a) Fund balance reserved for encumbrance $175,800
b) Expenditure control $175,000
Voucher payable $175,000
c) Expenditure control 132,000
Voucher payable 132,000
d) Other financing use control – operating transfer out
(to debt service fund) 10,000
Due to debt service fund 10,000
e) Due to debt service fund 10,000
Voucher payable 10,000

10. Vouchers totaling $315,200 are paid including vouchers payable at
January 1, 1996.
Voucher payable $315,200
Cash $315,200
11. At December 31, 1996 supplies on hand total $3,800, the inventory is
judged to be material, and the fund balance is reserved in the amount of
$3,800. The general fund uses the purchase method of accounting for
inventories.
Inventory of supplies $3,800
fund balance reserved for encumbrance of supplies $3,800
12. On December 31, 1996, the general fund establishes a petty cash fund
in the amount of $2,000.
a)Petty cash 2,000
Cash 2,000
b)Unreserved fund balance 2,000
Fund balance reserved for petty cash 2,000

13. On June 15, the general fund borrows $15,000 from the
utility (enterprise) fund. The amount is repaid on August 15
together with $250 interest ( no purchase order or voucher is
prepared for this payment).
a)Cash $15,000
Due to utility fund $15,000
b) Due to utility fund 15,000
Expenditure control 250
Cash 15,250
14. On December 31, 1996, equipment carried in the general
fixed assets group at a cost of $7,500 is sold as scrap for $100.
Cash 100
Revenue control – other 100

END…


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GOVERNMENTAL

Mr. Ismail Ibrahim Duale

Mr. Ismail Ibrahim Duale

Mr. Ismail Ibrahim Duale

Mr. Ismail Ibrahim Duale

Mr. Ismail Ibrahim Duale

Mr. Ismail Ibrahim Duale

Mr. Ismail Ibrahim Duale

 Financial reporting entity for a state and local

Mr. Ismail Ibrahim Duale

Mr. Ismail Ibrahim Duale

Mr. Ismail Ibrahim Duale

Mr. Ismail Ibrahim Duale

Mr. Ismail Ibrahim Duale

Mr. Ismail Ibrahim Duale

Mr. Ismail Ibrahim Duale

Mr. Ismail Ibrahim Duale

 As a consequent of the flow of financial

Mr. Ismail Ibrahim Duale

Mr. Ismail Ibrahim Duale

Mr. Ismail Ibrahim Duale

Mr. Ismail Ibrahim Duale

3. Expenditures control …. $94,500

Mr. Ismail Ibrahim Duale

Mr. Ismail Ibrahim Duale

Mr. Ismail Ibrahim Duale

Mr. Ismail Ibrahim Duale

Mr. Ismail Ibrahim Duale

General fund entry to record reversal of encumbrances –

Mr. Ismail Ibrahim Duale

Description Debit Credit

Mr. Ismail Ibrahim Duale

Mr. Ismail Ibrahim Duale

Description Debit Credit

Mr. Ismail Ibrahim Duale

Mr. Ismail Ibrahim Duale

Description Debit Credit

When invoice was received in 1996 for the supplies, the

Mr. Ismail Ibrahim Duale

Description Debit Credit

Mr. Ismail Ibrahim Duale

Property tax (net) $258,000

Interest and penalties on delinquent taxes (net) 400

Total estimated revenues $322,000

Transportation equipment 14,300

Total estimated expenditures $308,000

Estimated other financing uses – operating transfers out 10,000

Mr. Ismail Ibrahim Duale

Mr. Ismail Ibrahim Duale

Mr. Ismail Ibrahim Duale

2. On January 1, 1996, property taxes are levied in the actual

Mr. Ismail Ibrahim Duale

b) Allowance for uncollectible – delinquent taxes $900

c) Allowance for uncollectible – delinquent taxes $100

Mr. Ismail Ibrahim Duale

b) Tax anticipation notes payable $50,000

Mr. Ismail Ibrahim Duale

Mr. Ismail Ibrahim Duale

Mr. Ismail Ibrahim Duale

Mr. Ismail Ibrahim Duale

Mr. Ismail Ibrahim Duale

Mr. Ismail Ibrahim Duale

Mr. Ismail Ibrahim Duale