WAEC Accounting 2020 Theory — Question 4

Model answer

(a)(i) Books of accounts used in public sector accounting: Consolidated revenue fund account; Development fund account; Federation account. (ii) Users of public sector accounting information: The government; The citizens; Labour union; The international organisation. (b) Differences between public sector accounting and private sector accounting: i. In the public sector, accounting is on cash basis while it is accrual basis in the private sector. ii. Public sector accounting is for government/parastatals while private sector accounting is for commercial undertakings that aim to make profit. iii. Legislation for public sector accounting is drawn from the constitution while the company's act serves as basic law for private sector accounting. iv. Public sector accounting is prepared to show how revenues are generated and funds dispensed, while private sector accounting determines the profit and financial position of the company.