The disbursement of public funds between the variousn expenditures undertaken by the state should also, in a generaln manner, be determined by the same criteria as per ordinaryn individuals’ expenditures, since the poor state collects a largen part of its revenue from the ordinary individual.  Hence as a larger percentage of the poor man's income is expendedn on the necessities rather than the comforts and luxuries of life,n equally the underlying principles of public expenditures by then state should prove to be the same as those followed by then individual, since on final analysis the state represents then collective interests of the people and may be regarded as one ofn the many means by which individuals seek to secure satisfaction forn themselves.

n REQUIRED:
n (I) From your knowledge on public expenditure theory outline twon (2) reasons why the state expenditure structure should be differentn from the individuals from whom the state collects its revenues.

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(II) Outline what you know from the public expenditure theory’sn notion of the  coefficient of public expenditures. 

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B) The aggregate of public expenditures also depend upon then theory of social relations which the people have adopted and then degree of strictness with which it is followed in practice. Thesen theories may be summed up in the two phrases, expansive governmentn and restrictive government.

n Outline the phrases of expansive government and restrictiven government in the light of public expenditure theory. 

The following control account has been prepared by a trainee accountant: RECEIVABLES LEDGER CONTROL ACCOUNT Opening balance Credit sales Cash sales Contras against credit balances in payables ledger $ 308,600 154,200 88,100 4,600 Cash received from credit customers Discounts allowed to credit customers Interest charged on overdue accounts Irrecoverable debts written off Allowance for receivables Closing balance $ 147,200 1,400 2,400 4,900 2,800 396,800 555,500 555,500 What should the closing balance be when all the errors made in preparing the receivables ledger control account have been corrected?