Government and Fund Accounting


  1. Appropriated OMR 54000 for employees education and training.
  2. The department signed contracts with audit consultants for OMR 12600 .
  3. The department ordered books costing OMR4500
  4. The audit consultants conducted workshops and billed for OMR 12600
  5. Operating expenses encumbered OMR 7540
  6. It authorised employees to attend various conferences ,estimated cost was OMR 20500
  7. Employees submitted for OMR 19600 for reimbursement requests for the conferences.

1) Required: a .Record journal entries

b.Encumbrances Table

c. Closing Entries

Q2. Give journal GFAAG accounting journal entries for the following, where assets have been acquired using capital projects fund resources:

A. Local municipality Purchased of a building for OMR 1,750,000 which was financed as follows – OMR 750,000 by other governmental grant and OMR1,000,000 by issue of


B. Construction of a stadium by the local municipality for OMR 2,375,000 which was financed as follows – OMR 375,000 as donation from a private trust, OMR1,600,000 as

proceeds from bond issue and OMR 400,000 as grant from the state government

Q3. Record journal entries in GFAAG for the following :

A. The local government carried forward a WIP of OMR 728,000 in 2013. End of 2014, the stadium was completed costing a total of OMR1,522,000. The project was funded by

grants from the state government.

B. The town municipality carried forward a WIP of OMR 380,000 in the year 2014. End of year 2015 the building project was completed costing a total of OMR 520,000.

This was funded by a federal grant.

Sample Solution