Term: 2^nd Term

Week: 4

Class: Senior Secondary School 3

Age: 17 years

Duration: 40 minutes of 2 periods each

Date:

Subject: Financial accounting

Topic:- Public sector account II

SPECIFIC OBJECTIVES: At the end of the lesson, pupils should be able to

List and explain the sources of government revenue
List and explain the types of government expenditure

INSTRUCTIONAL TECHNIQUES: Identification, explanation, questions and answers, demonstration, videos from source

INSTRUCTIONAL MATERIALS: Videos, loud speaker, textbook, pictures

INSTRUCTIONAL PROCEDURES

PERIOD 1-2

PRESENTATION	TEACHER’S ACTIVITY	STUDENT’S ACTIVITY
STEP 1 INTRODUCTION	The teacher reviews the previous lesson on public sector accounting	Students pay attention
STEP 2 EXPLANATION	She lists and explains the sources of government revenue	Students pay attention and participates
STEP 3 DEMONSTRATION	She lists and explains the types of government expenditure	Students pay attention and participate
STEP 4 NOTE TAKING	The teacher writes a summarized note on the board	The students copy the note in their books

NOTE

PUBLIC SECTOR ACCOUNTING

SOURCES OF GOVERNMENT REVENUE

Direct taxes:
- Personal income tax
- Company income tax
- Petroleum tax
- Capital gain tax
Indirect taxes:

Import duties
Export duties
Tariffs
Export duties

Mining:
- Royalties on mineral resources e.g. Tin, gold etc.
- Revenue from export of crude oil
- Quarrying licenses
- Mining fees
Fees:

Court fees
International passport fees
Visa fees
Advertisement fees (Bill board)

Earning and sales:
- Federal government investments
- Sales of government properties e.g land, building
- Proceeds from prison farms
Licenses and internal revenue:

Arms and ammunition licenses fees
Registration and licenses fees e.g company registration, club registration fees
Churches registration fees

Interest and repayment:
- Interest and repayment of loans granted to state government and government worker.
- General loan interest.
Rent on government properties:

Income from rent of government quarters
Rent of government offices
Rent of government vehicles
Federal government land fees.

Armed forces:
- Income from armed forces educational receipts
- Sales of small weapons
- Sales of armoured tanks, aircrafts
Miscellaneous:

Any other income not mentioned above e.g money recovered from drug pushers etc.

GOVERNMENT EXPENDITURE

Government expenditure can be classified into two such as:

Capital Expenditure
Recurrent Expenditure

Capital Expenditure: This is the expenditure incurred by government which adds to the value of fixed asset. Such as: purchases of Buildings, plants machinery, motor vehicles, constructions of bridges and roads, constructions of rails etc.

Recurrent Expenditure: These are day-to-day costs of running the activities of an organization of government department and ministries. These are: wages and salaries,

Transportation, repairs of motor vehicle, maintenance of buildings, payment for services. Etc

ILLUSTRATION:

The Federal Ministry of Works and Housing incurred the following in 2013.

Construction of estates in Garki Central area	350,000,000.00
Bought wires	200,000,000.00
Purchase four site motors	35,000,000.00
Purchases Transformer	505,300,000.00
Construction of the roads	455,000,000.00
Paid civil engineers	12,000,000.00
Paid wages to the drivers	500,000.00
Renovate some buildings	32,000,000.00
Maintenance of the buildings	44,000,000.00
Constructions of General Hospital	205,000,000.00
Purchases of spare parts You Are Required To Prepare Statement Of:	17,000,000.00

Capital Expenditure
Recurrent Expenditure

STATEMENT OF CAPITAL EXPENDITURE

PARTICULARS

AMOUNT

Purchases four site motor Construction of estates in Garki Abuja Purchases of transformer Construction of roads

Construction of General Hospital

35,000,000.00

350,000,000.00

505,000,000.00

455,000,000.00

205,000,000.00

1,550,300,000.00

STATEMENT OF RECURRENT EXPENDITURE

PARTICULARS	AMOUNT N
Bought wires Paid civil engineers Paid wages to the drivers Maintenance of the Building Purchases of spare parts	200,000,000.00 12,000,000.00 500,000.00 44,000,000.00 17,000,000.00
	273,500,000.00

EVALUATION: 1. Outline the major sources of revenue to:

Federal government
State government
Local government

Mention three sources of direct tax
Mention two types of Mining as a source of Revenue to government.

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively

Lesson Notes By Weeks and Term - Senior Secondary 3

SUGGESTED SOLUTION:

STATEMENT OF CAPITAL EXPENDITURE