Question

Identify with reasons the nature of following Government Budget transactions.
a) Salary paid to Army officers.
b) Expenditure on construction of bridge
c) Sale of shares of a public sector undertaking to a private enterprise..

Answer 1

Answer:

It is a revenue expenditure as it neither creates any asset nor reduces any liability of the government.

(ii) It is a capital expenditure as it increases asset of the government.

(iii) It is a capital expenditure as it reduces the liability of the government

(iv) It is a revenue expenditure as it neither creates any asset nor reduces any liability of the government

(v) It is a capital expenditure as it increases asset of the government.

(vi) It is a revenue expenditure as it neither creates any asset nor reduces any liability of the government.

(vii) It is a capital expenditure as it increases asset of the government.

(viii) It is a revenue expenditure as it neither creates any asset nor reduces any liability of the government.

(ix) It is a capital expenditure as it increases asset of the government.

Answer 2

Answer:

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