Nizwa Municipality follows fund accounting. The following transactions took place during the year 2019. The government...

Nizwa Municipality follows fund accounting. The following transactions took place during the year 2019.

The government imposes a tax on Liquified Petroleum Gas (LPG) to compensate the loss in revenue due to decline in oil prices. This tax revenue is planned to be used exclusively for improving the health facilities in the local health centers. The tax revenue collected in Al Dakhiliyah Governorate until for the year 2019 amounts to RO 40,000. The governorate spent RO 37,000 for purchase of medical equipments in the local health centers.

You are required to state for each of the transactions above,:

 Pass journal entries in each of the respective funds

 Briefly explain the Basis of accounting, the accounting treatment and the measurement focus of these transactions in the respective funds where these transactions are accounted.

Expert Solution

ekkarill92 answered 2 years ago

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