Wiam water supply services orders a water pump and expects the delivery in 30 days. The order was placed in 1^st January, 2019 with an estimated cost of RO 8000. The water pump was delivered on time by the supplier on 30^th January, 2019 with a voucher of RO 8,100. The voucher was approved on 6^th February 2019 and the payment was settled on 7^th February, 2019.

1)

In the above case the disbursement is recorded on:

a.

1st July, 2019

b.

7th February, 2019

c.

30th January, 2019

d.

6th February, 2019

2)

Suppose the order made on 1st January is cancelled later on 10th January, which among the following will be the correct accounting treatment?

a.

A fresh encumbrance is made again on 10th January

b.

The encumbrance made earlier is reversed.

c.

The available fund balance will be shown as reduced by estimated amount of the order

d.

There will be no effect on the encumbrance control account

3)

Which among the following journal entries are passed at the time of ordering goods?

a.

Encumbrances control (Debit) 8,000

Budgetary fund balance for encumbrances (Credit) 8,000

b.

Budgetary fund balance for encumbrances (Debit) 8,000

Vouchers payable (Credit) 8,000

c.

Encumbrances control (Debit) 8,000

Vouchers payable (Credit) 8,000

d.

Budgetary fund balance for encumbrances (Debit) 8,000

Encumbrances control (Credit) 8,000

4)

Which among the following journal entries are recorded to cancel encumbrance made earlier?

a.

Budgetary fund balance for encumbrances (Debit) 8,100

Encumbrances control (Credit) 8,100

b.

Encumbrances control (Debit) 8,100

Vouchers payable (Credit) 8,100

c.

Budgetary fund balance for encumbrances (Debit) 8,000

Encumbrances control (Credit) 8,000

d.

Encumbrances control (Debit) 8,000

Budgetary fund balance for encumbrances (Credit) 8,000

5)

Which among the following journal entries relate to recording of expenditure for water pump on 30^th January, 2019?

Expenditure control (Debit) 8,100

Vouchers payable (Credit) 8,100

Expenditure control (Debit) 8,000

Vouchers payable (Credit) 8,000

Expenditure control (Debit) 8,100

Cash (Credit) 8,100

Expenditure control (Debit) 8,000

Cash (Credit) 8,000

6)

Which among the following journal entry is passed for recording settlement of payment to vendor on 7^th February, 2019?

a.

Vouchers payable (Debit) 8,100

Bank (Credit) 8,100

b.

Vendor (Debit) 8,100

Bank (Credit) 8,100

c.

Vouchers payable (Debit) 8,000

Bank (Credit) 8,000

d.

Vendor (Debit) 8,000

Bank (Credit) 8,000.