How the budget is being prepared in The Kingdom of Saudi Arabia? Explain any budget with reference to the revenue, expenditure and sectorial spending.

 

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(Total number of the questions. 5 Questions each question will carry 3 marks)

Q-1-Which of the government fund is being operated by the Saudi Government? Highlight the main objectives of the fund.

Answer:-

 

Question no 2-

How the budget is being prepared in The Kingdom of Saudi Arabia? Explain any budget with reference to the revenue, expenditure and sectorial spending.

Answer :

Question no 3

The Western Province of K.S.A. has approved the 2020 budget as follows:

Budgeted 2020 revenues from:

Property taxes $8,000,000

Sales taxes $2,000,000

Appropriations for 2020:

Salaries $7,200,000

Materials $2,000,000

Equipment $200,000

During 2020, the authority has presented the budget revision to increase the amount of

appropriation for salaries by $100,000. The council approved this budget revision.

Required:

1. Prepare the general journal entry necessary to initially record the budget.
2. Prepare the general journal entry necessary to record the budget revision.

 

Question no 4-

Prepare entries to record the following transactions and events related to Northern township’s tax revenues for the year beginning January 1, 2015:

1. To raise property tax revenue of $1,500,000 the County bills its property owners a total of $1,504,000, providing $4,000 for uncollectible and refundable taxes.
2. During the year, taxpayers pay a total of $1,300,000 in property taxes.
3. Edam declares bankruptcy, owing the County $4,000 in property taxes. The County writes off the unpaid amount as uncollectible.
4. The state collects sales taxes on behalf of Northern townships. It sends the province’s $300,000 for sales taxes collected during the year.
5. At year-end, the Northern township declares all unpaid property taxes to be

Delinquent

Answer

 

Question no 5-

From the information below prepare Financial Statements

 

Cash

20,000

 

Taxes receivable, net

147,000

 

Investments

65,000

 

Due from other funds

68,000

 

Vouchers payable

 

39,000

Due to other funds

 

152,750

Unassigned fund balance

 

117,000

Estimated revenues

610,000

 

Appropriations

 

590,000

Budgetary fund balance

 

20,000

Revenues-taxes

 

590,175

Revenues-charges for services

 

14,080

Expenditures-personal services

287,125

 

Expenditures-supplies

29,680

 

Expenditures-capital outlay

244,000

Transfer in from debt service fund

 

32,500

Transfers out to capital projects fund

84,700

0

 

$1,555,505

$1,555,505

Answer: