GES Promotion Interview Questions & Answers (Accounts & Audit) Part 3

QUESTION 1

WHAT IS A BUDGET? NAME THE ITEMS OF EXPENDITURE ON WHICH THE BUDGET OF A GHANA EDUCATION SERVICE COST CENTRE IS PREPARED.

The budget is an estimate of revenue to be earned and expenses to be incurred within a specific period usually in the future.

The budget is prepared on two major sources of funding ie Government of Ghana Grants (GOG) and Internally Generated Funds (IGF).

The items of expenditure on which the budget is prepared are:

1. Compensation of Employees,

2. Goods and Services

3. Assets/Investment.

 

QUESTION 2

NAME THE SUB-ITEMS UNDER GOODS AND SERVICES (ITEM 2).

1. Materials and Consumables.

2. Utilities.

3. General Cleaning.

4. Rentals/Lease.

5. Travel and Transport.

6. Repairs and Maintenance.

7. Training, Seminar & Conference Costs.

8. Consultancy Expenses.

9. Other Charges.

10. General Expenses.

 

QUESTION 3

NAME TEN (10) ALLOWANCES THAT FALL UNDER EMPLOYEE COMPENSATION SUB-ITEM 3 (OTHER ALLOWANCES)

1. Motorbike Maintenance Allowance.

2. Bicycle Maintenance Allowance.

3. Car Maintenance Allowance.

4. Watchman’s Overtime Allowance.

5. Guide Allowance.

6. Overtime Allowance.

7. Tools Allowance.

8. Transfer Grant.

9. Domestic Servant Allowance.

10. Responsibility Allowance.

 

QUESTION 4

NAME TEN (10) SUB-SUB-ITEMS UNDER GOODS AND SERVICES, SUB-ITEM 1 (MATERIALS AND CONSUMABLE)

1. Printed Materials and Stationery.

2. Refreshment Items.

3. Drugs.

4. Electrical Accessories.

5. Uniform & Protective Clothing.

6. Feeding Cost.

7. Textbooks and Library Books.

8. Chemical Consumables (Lab Materials).

9. Other Teaching and Learning Materials.

10. Sports and Recreational/Cultural Materials.

 

QUESTION 5

NAME SIX (6) SUB-SUB-ITEMS UNDER ITEM 2, SUB-ITEM 2(UTILITIES)

1. Electricity Charges.

2. Water
3. Telecommunication
4. Postal charges
5. Sanitation charges
6. Armed guards and security
7. Fire fighting accessories

 

QUESTION 6

WHAT INPUTS OR INFORMATION DO YOU NEED TO PREPARE YOUR BUDGET FOR EMPLOYEE COMPENSATION?

To prepare the budget for Employee Compensation you need to have the departmental pay roll with the names, ranks and gross salaries of the personnel to enable you prepare the nominal roll or salary expenditure.

To prepare the budget for the other related allowances you also need the following;

1. Number of officers with assigned bicycles, motor bikes and vehicles, FDS

2. Number of officers with assigned bicycles, motor bikes and vehicles,

3. Number of qualified officers with maid servants,

4. Number of officers qualified for responsibility allowance,

5. Number of officers qualified for guide allowance,

6. Number of overtime workers and their basic monthly salaries

7. Number of qualified officers estimated to go on transfer.

 

QUESTION 7

WHAT INFORMATION DO YOU NEED TO PREPARE YOUR SCHOOL’S BOARDING/USER FEE BUDGET FOR A TERM?

The information required include:

1. Approved standard charges by the Director General of Ghana Education Service,

2. Approved levies by the Board of Governors and the Director General,

3. Previous term’s expenditure and

4. Activities to be undertaken in the term based on inputs from the departments.

 

QUESTION 8

APART FROM GOVERNMENT RELEASES TO SUPPORT ITEM 1 EXPENSES, FUNDING UNDER ITEMS 2 AND 3 IS WOEFULLY INADEQUATE. AS AN ACCOUNTANT WHAT CAN YOU SUGGEST TO BOOST THE REVENUE BASE OF YOUR INSTITUTION?

Most institutions rely on the traditional sources of revenue ie. Government grants and school fees but there are other areas where an institution can look at to generate some internal funds, however small in proportion they might be. These include:

1. Renting out of premises for conferences during holidays with the approval of Board of Governors,

2. Going into farming like maize, vegetables, palm plantation, orchard, poultry, pig farm, cattle and sheep rearing, rabbit/grass cutter rearing, fish farming and mushroom production,

3. Installing a corn mill for the institution’s use to reduce cost and extending services to people around

4. In the case of technical institutions taking contract for the production of furniture and other maintenance services can bring in some revenue.

 

QUESTION 9

HOW WOULD YOU INCORPORATE THE SUPPLY OF 20 BAGS OF MAIZE FROM THE SCHOOL FARM TO THE KITCHEN INTO YOUR INSTITUTION’S ACCOUNTS?

The use of farm produce without incorporating it into the feeding cost of an institution understates the feeding cost. To get the real cost of feeding the students the value of the 20bags of maize should first be established taking into consideration the market price. The maize should be handed over to the Storekeeper to take on charge and SRA issued to cover them before they are issued to the Domestic Bursar through the normal stores procedure to food the students.

Where the school farm account is not separate from the school’s accounts, Other Funds (under IGF) would be credited and Feeding Cost debited through journal entry.

Where there is a separate school farm account, School Farm Account would be credited and Feeding Cost debited through the journal. When payment is finally effected, School Farm account would be debited and cash/bank credited.

 

QUESTION 10

HOW WOULD YOU INCORPORATE THE DONATION OF 100 BAGS OF CEMENT VALUED ¢3,000.00 FROM THE OLD STUDENTS ASSOCIATION TO SUPPORT THE REPAIR OF A DORMITORY INTO YOUR ACCOUNTS?

The 100 bags of cement valued at ¢3,000.00 should first be taken on charge by the storekeeper by issuing SRA to cover them. With the support of the SRA a journal entry would be passed to bring the donation into the accounts of the school. Donations under IGF would be credited and maintenance of building debited. This will help you to know the actual cost of the maintenance work.

 

QUESTION 11

10 BAGS OF RICE WERE PRESUMED PURCHASED BYTHE HEADMASTER AND SENT DIRECT TO THE KITCHEN FOR FEEDING THE STUDENTS WITHOUT PASSING THEM THROUGH THE STORES. WHAT DOCUMENT CAN ASSIST YOU TO KNOW THAT THE 10 BAGS OF RICE ACTUALLY WENT INTO THE FEEDING OF THE STUDENTS AND WHAT WOULD YOU DO TO REGULARIZE THE TRANSACTION TO ENABLE YOU RE-IMBURSE THE HEADMASTER FOR THE COST OF THE RICE?

The document that can give evidence of the rice having gone into the feeding of the students is the Domestic Bursar’s Daily Cost Sheet which should be cross-checked with the Storekeeper’s issues to the Domestic Bursar during the same period. When it is thus confirmed that the rice were used for the intended purpose then the Head will have to produce the relevant receipt or invoice covering the purchase, the Storekeeper would take the items on charge and prepare SRA. He would then issue the 10 bags of rice to the Domestic Bursar who would in turn regularize her recordings. The Accountant can now go ahead using the SRA and supporting invoice to raise a P.V. and pay the Head.

 

QUESTION 12

WHAT IS THE EFFECT OF A DEBIT ENTRY IN AN ASSETS ACCOUNT?

It increases its value and a credit entry reduces its value.

 

QUESTION 13

WHAT IS THE LAST DOCUMENT PREPARED AND ATTACHED TO A PAYMENT VOUCHER BEFORE IT IS SENT TO THE TREASURY?

Cheque Payment Order.

 

QUESTION 14

WHAT IS THE DIFFERENCE BETWEEN A PROFORMA INVOICE AND AN INVOICE?

Both the proforma-invoice and invoice provide list of items, quantities and prices meant to be supplied. The proforma invoice is a proposal to the buyer for bidding purpose and can be accepted or rejected. When accepted it is used for the preparation of the A&El and the P.O. The invoice is issued after a firm order has been given to the supplier and he has accepted the terms of the order. It is normally prepared and submitted together with the goods being delivered. The prices quoted on the invoice are binding on the supplier and cannot be varied without the consent of the purchaser. A proforma invoice is not binding on the supplier since it is only a proposal.

 

QUESTION 15

WHAT IS A VALUE BOOK? GIVE FOUR EXAMPLES OF VALUE BOOKS.

A value book is a book, form or any electronic device purposely used for collecting revenue and making payments, the loss of which can bring about loss of revenue to the entity. One major characteristic of a value book is that it is pre-numbered.

Examples of value books are Counterfoil Receipt, Cheque Book, Bill Book, SRA, P.O and A&El.

 

QUESTION 16.

HOW DO YOU KEEP AND CONTROL THE USE OF VALUE BOOKS?

1. Upon receipt of a set of value books the Accountant should first check the quantity to see if it agrees with what is on the waybill or invoice.

2. He should check the content of the value books to see whether the numbering is serially correct and if he finds any defect he should report to the supplier so that he can rectify the situation.

3. The value book should be taken on charge at the stores and later issued to the Accountant.

4. He should serially record the value books in a Stock Register of Value Books then keep them in a safe or cabinet under lock.

Whenever a value book is required the person who needs it should make a request and sign for the book issued to him and should be authorized by the Accountant or a designated officer. When the book is completed it should be given back to the Accountant who will keep it in a safe place for future auditing.

One person should not have more than one particular value book in use at a point in time and issues should be done serially.

 

QUESTION 17

WHAT IS AN ACCOUNTING SYSTEM? WHAT ARE THE MAIN ACCOUNTING SYSTEMS USED IN THE GHANA EDUCATION SERVICE?

Accounting System is the way and manner in which financial transactions are recorded and statements prepared.

The main accounting systems in use in the Ghana Education Service are manual-writing in books of account and computerized – use of computers for recording and preparing statements.

As at now there is no fully established computerized accounting system but a blend with the manual system.

 

QUESTION 18

IN ESTABLISHING AN ACCOUNTING SYSTEM WHAT SHOULD BE TAKEN INTO CONSIDERATION?

In establishing an accounting system the type of organization and its information needs should be taken into consideration.

Also worthy of taking note are the caliber of staff and their capacity and guarantee for continuous existence of the system-financial support.

 

QUESTION 19

WHAT ARE THE ADVANTAGES OF THE COMPUTERIZED SYSTEM OF ACCOUNTING?

As compared to the manual system of accounting the computerized accounting system has the following advantages:

1. It is faster
2. It is more accurate
3. It is consistent
4. It can detect errors, for instance where excesses are occurring
5. Storage and retrieval of information is easy
6. There is confidentiality and limit of scope through the use of password

 

QUESTION 20

WHAT IS A STUDENT JOURNAL OR CHARGES BOOK? WHAT IS THE PURPOSE OF KEEPING IT?

It is one of the books of original entry in which students charges for a particular term are entered against each student class by class and summaries prepared to get total amount charged under each item during the term. It serves as the revenue budget so far as the boarding user fee is concerned and therefore enables management to know how much it expects as revenue for the term. Entries to the charges book are made from the approved fees and levies payable by the students as indicated in the students’ bills. The charges book is prepared termly.

Below is an example of a summary of the charges book for a term.

Class	Boarding fee	Sports	Stationery	Pract.	Maintenance	Total
SHS 1	20,000	1000	1,200	600	1,200	24,000
SHS 2	28.000	1,400	1,500	800	,600	33,300
SHS 3	18,000	900	1.000	500	1,000	21,400
TOTAL	66,000	3,300	3,700	1,900	3,800	78,700

 

CHECK OUT:
GES Promotion Interview Questions & Answers (Accounts & Audit) Part 1
GES Promotion Interview Questions & Answers (Accounts & Audit) Part 2
GES Promotion Interview Questions & Answers (Accounts & Audit) Part 3
GES Promotion Interview Questions & Answers (Accounts & Audit) Part 4
GES Promotion Interview Questions & Answers (Accounts & Audit) Part 5