Pakistan Institute of Public

Winter Exam-2022
Finance Accountants [08.Nov.2022] [09:30am – 12:15 pm]
Additional time – 15 mins for Paper Reading

PS Accounting (Application)
AGP | PG | PMAD | Public Sector
Marks-80 Subjective Duration: 02 Hours 30 Minutes
[Instructions]
 Ensure that the question paper delivered to you is the same, in which you intend to appear.
 Read the instructions given on the title page of Answer Script.
 Start each question from fresh page.
Books Allowed:

 Manual of Accounting Principles

 Accounting Policies and Procedures Manual
 Chart of Accounts
 International Public Sector Accounting Standard Vol-II (Cash Basis)

Attempt all questions

Q.1. (a) Elaborate the Financial and Accounting responsibilities of the Public Accounts Committee 05
(PAC). How it is formed and to whom is accountable?
(b) What are the financial and accounting responsibilities of the Finance and Accounts Officer? 05

OR
State duties and the responsibilities executed by the Auditor General of Pakistan under the 05
Constitution of the Islamic Republic of Pakistan.

Q.2. (a) Codify the following giving exact reference from the Chart of Accounts showing as, Major
Object, Minor Object, and Detailed Object Description:

(i) Physical Assets 03

(ii) Miscellaneous Receipts 03
(iii) Recoveries of Loan and Advances 03
(iv) Receivables 03

(b) De-codify the following giving exact reference from the Chart of Accounts showing as,
Major Object, Minor Object, and Detailed Object Description:

(i) A12, A121 and A12101 to A12502 03

(ii) C027, C02701 to C02743 03
(iii) F01, F011 and F01101 to F01403 03

Contd……
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Q.3. A DDO of the Federal Government Office paid pension and the gratuities amount lump sum 05
to its employee directly without following prescribed procedure.

Comment on gross procedural violation that has been made in the payment of pension and the
gratuities amount.

Q.4. An office disposed of various items/articles and earned an amount of Rs. 500,000 on account 05
of sale proceeds from disposal of fixed assets.

Journalize above transaction.

Q.5. What are responsibilities and the function of the Drawing and Disbursing Officer? 10

OR
Give the double entry along with its narration to record the following: 10
(i) Payroll transactions
(ii) Expenditure with commitment
(iii) Expenditure without commitment
(iv) Cancellation of issued payments with commitment

Q.6. Give accounting entries with illustrations of the following transactions:

(a) The Federal Government incurred expenditure and charges for issues supplied to a
Provincial Government;
(i) Recognition of incurring the expenditure. 02
(ii) Recognition of inter-entity transfer, when transaction is passed from AGPR 02
to the Provincial AG.
(iii) Recognition of transfer of the cash between bank accounts, from Provincial 02
AG to Federal AG, on receipt of clearance memo from bank.

(b) Transaction between departments centrally accounted for by the Government one of
the department incurred expenses on behalf of the other department;
(i) Recognition of inter-department transfer. 02

(c) Transaction between departments accounted for involving self-accounting entities,

not requiring a transfer of funds;
(i) Recognition of incurring the expenditure. 02
(ii) Recognition of inter-entity transfer. 02

(d) Additionally where the departments do not share the same bank account the
department making the cash transfer shall notify the SBP of the transfer;
(i) Recognition of transfer of the cash between bank accounts, from one 02
Department to another Department on receipt of clearance memo from
bank.

Contd……
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Q.7. (a) What is the main role and objectives of the Financial Reporting under the Cash Basis of 05
Accounting- International Public Sector Accounting Standard (IPSAS)?
(b) Give a presentation of Statement of Cash Receipts and Payment of Federal Government 10
under the Cash Basis of Accounting – (IPSAS).

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