3 rd level Q&A 2 nd semester

1. GA 3rd level Q&A 2nd semester

2. (( FIRST TOPIC)) WHAT IS:Treasury?: Represent state fund which shall be deposit all revenues collected and the withdrawal of all expenditures in accordance with the allocations in the budget. WHAT ARE :The Treasury duties?: 1 - Receipt of revenue from the state units. 2 - Payment of accrued expenses on state units.

3. 3 - Recording of operations in the above (1, 2). 4 - Auditing the financial operations. 5 - Prepare the periodic statements (monthly trial balances). 6 - Preparing the final accounts relating to the implementation of the budget. 7 - Outcome measure and show the deficit or surplus as well as the preparation of the balance sheet. 8 - Cash management (marginal use) (may show a surplus or deficit).

4. WHAT IS:main Treasury? : Working to achievement all the tasks of the public treasury of preparing the trial balance and outcome measure and preparation of the balance sheet, except marginal use. Cash in the main Treasury = cash in the main Treasury in the bank + cash on the Fund.

5. WHAT IS:Sub- Treasury?: Only work on the completion of the payment and receipts no accounting books. Cash in the public treasury = cash in the treasury and sub + cash at the bank. • All Treasuries' are linked in terms cash and receipt of financing surplus and cover the deficit by (account of current financing ) .The Ministry of Finance - Accounting Department is responsible for it as well as to marginal use.

6. First: Accounting entries in case of surplus in the main treasury 1- main Treasury's :  Current of accounting (central funding unit)/ Acc *** Bank / Acc *** Send cash surplus to the Ministry of Finance 2- Accounting department (central funding unit) Bank/ Acc. *** Current Treasury which sent the money /Acc. *** Receive cash surplus from the Treasury……………..

7. Second: Accounting entries in case of deficit in the treasury a main 1- main Treasury's : Bank / Acc *** Current of accounting (central funding unit) / Acc *** Receive money to cover the deficit from the Ministry of Finance 2-Accounting department (central funding unit) Current of treasury which sent its money /Acc. *** Bank/ Acc. *** Send money to cover the deficit in the treasury……….

8. EXERCISE

9. WHAT MEANS:Central in the organization of accounting government? Means there is central administration in payment and receipt process and recording , as well as audit and control and preparation of the monthly trial balance and final accounts ((outcome measure and balance sheet

10. WHAT ARE:The Advantages of the central accounting system?: 1 - Requires a small number of accountants because of the lack of treasuries. 2 - Independence of audit because it is linked with the Ministry of Finance. 3 - Helps the cash management process by covering the deficit and receive the surplus. 4- Because the few of treasuries ,can unified accounts to prepare trial balance and final accounts.

11. what are:Defects of the central system?: 1- weakness in the implementation of the budget, which led to delays in the completion of financial transactions. 2 – weakness in the audit and development of the accounting.

12. Concept of decentralizationsystem (( SECOND TOPIC )) WHAT IS:Decentralization system?:- • 1 - Represents the evolution of the central system. • 2 - there is no link between government units and the central administration. • 3 - Each unit is independent of the other. • 4 - Open an account for each unit in the bank. Funded by central finance unit..

13. WHAT ARE:Advantages of decentralization system?: 1 - Provide great flexibility with respect to accrued expenses. 2 - Provide great control on the advances and secretariats accounts. 3 - Provides high efficiency in the audits. 4 – expand in the analysis of accounts. 5 – Maximizes from the role of the central departments in the control. 6 - Each unit is preparing its final accounts.

14. WHAT ARE:defects of Decentralization system?: 1 – this system requires large number of accountants. • 2 - Audit is not independent because linked with the unit independent of the treasuries. • 3 - funding units is difficult because of the large number of units. 4 - The problem in the unification of the monthly trial balance and final accounts. 5 - The problem in the measuring results and financial position .

15. ((THIRD TOPIC)): • Documentation WHAT ARE:The Documentation in the g a s?: 1 - Documents are main factor in the system. 2 - Documents are basis of recording financial. transactions relating to expenses and revenue. 3 - Basic element of the internal control. 4 - There are two types of documents for payments and receipts. 5 - There are documents relating to the central system, and the other related to the decentralized system.

16. Analys of the accounts used in the government accounting system: Assets: 1 11 cash.12 advances13 Debtors15 investments16 adjustment accounts of the debtor 17 finance current accounts19 systemic accounts receivable Liabilities: 2 21 cash accounts payables 22 secretariats 23 Creditors 24 loans 26 adjustment of accounts payable27 Current accounts payable financing 28 result accounts 29 systemic accounts payable.

17. Expenses(3): according to the economic division of the expenses that were previously described. Revenues(4): according to the economic division of the revenues that were previously described. • Accounting entries for the expense of public expenditure: • 1 - Expense: is debit account when the payment money (part and article and type). • 2 – public Treasury (bank or cash). • 3 - Accounting entry in the case of payment expense: • From: part - article - type (general expenses)/ Acc.   ****      • To: public treasury (Bank or cash)/ Acc. ****

18. Examp.1 On 04/01/2000: 480000 ID. was spent by the Ministry of Commerce to buy Furniture Library note: that Furniture library records at the expense of capital expenditure part 35, Article 01 Furniture and Type 01 Wooden Furniture. Accounting entry: From: 350101 – furniture/ Acc. 480000 To: Bank/ Acc. 480000 Purchase furniture

19. Accounting entries for excess expenses: • Mean expense is paid at the expense of public expenditure (type - article - part) more than owed ​​and there are three cases: • The first case: the discovery of the error (the increase in expenditure) during the same fiscal year. • accounting treatment is: • From: diverse of advances - name of the recipient/Acc.*** • To: part - article - type (type of expense)/Acc.*** • record the increase in expenditure • If the debtor re increase paid • From: public treasury (cash or Bank)/Acc.*** • To: diverse of advances - name of the recipient/Acc.*** • Receipt the increase in expenses

20. Examp.2 On 05/04/1999, spent the University of Sulaymaniya 870,000 ID to Molloy library for printed forms at the expense of (3205) printing expenses. 2 - On 14/11/1999 through audit found that the amount paid to the library Molloy should be 780000 ID were demanding the library re-increase. 3 - On 27/11/1999 Library Molloy paid the amount of the increase for cash to the University of Sulaymaniya. Required: 1 - Recording expenses entry. 2 - Recording correction error entry. 3 - Recording the return of the increase entry.

21. Expenses entry: From: 3205 printing expenses /Acc. 870000 To: bank /Acc. 870000 Payment printing expenses • correction error entry: Determined the increase: 870000 – 780000 =90000 ID. Form:diverse of advances- Library Molloy /Acc. 90000 To: 3205 printing expenses/Acc.90000 Record the increase in expenditure • return of the increase entry: From: cash /Acc. 90000 To: diverse of advances- Library Molloy /Acc. 90000 Receipt the increase in expenses

22. The second case: the discovery of the error (the increase in expenses) after 31/12 from years the spending . Fiscal period: starting from 1/1 budget execution date and ends on 31/12 In this case :Accounting treatment is the same as for the previous case, Explain the process: excess expenses at the stage of final accounts • if the error was discovered in (Q2) on 16/01/2000 • accounting treatment is Determined the increase: 870000 – 780000 =90000 ID. Form:diverse of advances- Library Molloy/Acc. 90000 • (stage of the final accounts for the year 1999) To: 3205 printing expenses /Acc.90000 record increase of expenses at the stage of final accounts

23. The third case: the discovery of the error (the increase in expenses) after the closure of the accounts for the financial year The increase as revenue in the year in which they discovered. The accounting treatment is: • if the error was discovered in (Q2) on 17/04/2000 • Determined the increase: 870000 – 780000 =90000 ID. • Form:diverse of advances- Library Molloy /Acc. 90000 • To: 49 07 03 Diverse of revenues /Acc.90000 • Record the Diverse of revenues • If the money payment from the library: • From: cash or bank /Acc. 90000 • To: diverse of advances- Library Molloy /Acc. 90000 • Receipt the increase in expenses

24. Accounting entries to the decrease of expenses: • There are three cases: • The first case • The discovery of decrease of expenses in the same year • From : part - article - type (type of expense) / Acc *** •  To : Bank / Acc *** • In expensesTo pay the difference • Second case: • Error discovery after 31/12 years of spending • After the end of the fiscal year is not permitted to spend any money. • And spending on the new year allocations which discovered the error. • From : part - article - type (type of expense) / Acc *** •  To : Bank / Acc *** • To pay the difference In expenses

25. Third case: Note : discovery of the error at the stage of final accounts (the same as the second case). • Q3: • The following financial transactions in the tax administration: • 1 – 07/08/1999 spends 19,500 ID for the purchase of stationery from Salem library on the account 330101. • 2 – 09/08/1999 spends 287500 ID for the maintenance of cars in green workshop on the account 340506. • 3 - 25/08/1999 it became clear that the amount paid to the Salem library should be 29,500 ID. • 4 - 16/01/2000 there is an increase in the amount paid to the Green Workshop of 10,500 ID. • 5 - 25/01/2000 receipt for cash increase in expenses from green workshop. • recording accounting entries.

26. 1- From:330101 Stationery /Acc 19500 To: Bank / Acc 19500 Purchase stationery • 2- From: 340506 cars Maintenance /Acc 287 500 To: Bank / Acc 287 500 Payment car maintenance • 3-From:330101 Stationery /Acc 10000 To: Bank / Acc 10000 payment the difference in Purchase stationery

27. 4- Determined the increase: 10500 ID. Form:diverse of advances- green workshop/Acc. 10500 (The stage of the final accounts in year 1999) • To: 340506 cars Maintenance /Acc.10500 Record increase of expenses at the stage of final account • 5- From: cash / Acc 10500 To:diverse of advances- green workshop /Acc. 10500 Receipt increase in car maintenance

28. :Public revenues Accounting entries for the general revenues Normal case: Revenues creditor account and the money that is to be received by government units and the amounts will be recorded revenue for the number of material and type. Accounting entries in increase of revenues which received : increase in revenues: means receipt revenues in the governmental units more than owed , and three cases:

29. For each case there are three of accounting treatments : 1-Receipt of Revenues. .2-The discovery of increase in revenues 3- Re increase. first case :The discovery of the error (increase in Revenues) during the same year : From: bank or cash /acc **** TO: N.A.T type of revenues /acc *** Receipt revenues From : N.A.T type of revenues /acc*** To : divers of deposits(name of which payment) /acc *** Record increase in revenues

30. from : divers of deposits(name of which payment) /acc *** To : bank /acc*** Payment re increase in revenues Second case: The discovery of the error (increase in Revenues) after 31/12 In the year following the receipt of Revenues and within the stage of the final accounts. The same as the first case with recording the period of the final accounts. Third case: The discovery of the error after the closure of the accounts : There is no accounting entry error and the increase will be refunded: From : 361010 different refunded /acc *** To: bank/ acc *** Payment re increase of revenues after the closure of the accounts

31. Q4: On 07.01.1997 received Fund in Sulaimaniya Tax Department from Mr. Essam the following amounts: 650000 Real Estate tax: number 1 of article 03 Type 01 180000 additional Real Estate tax: number 1 of article 03 Type 03 Recording accounting entry: From: cash / acc 830000 TO : 10301 Real Estate tax / acc 650000 10303 Additional Real Estate tax/acc 180000 Receipt tax from Mr.essam

32. Q5 • On. 7/3/1999: Tax Department received 79500 ID from Mr. Baker as income. The number 41 income and wealth taxes and income tax article 01. • 0n.25/10/1999: discovered during the audit an amount of 19,000 ID received in excess of Mr. Baker. Were recorded revenue excess. • 0n.12/07/1999: returns the amount of the increase to Mr. Baker for cash. • Recording accounting entries:

33. 7/3/1999 From : bank /acc 795000 To: income tax /acc 7950000 Receipt income tax • 25/10/1999 From : income tax /acc 19000 To : diverse of deposits (Mr.baker)/acc 19000 Record increase in income tax • 12/11/1999 from : diverse of deposits (Mr.baker)/acc 19000 To: cash /acc 19000 • Payment increase of income tax