Public Sector Accounting

  Public sector accounting is the process of recording,summarizing, analyzing and interpreting the financial transactions of the government. Government accounting shows the receipts and payments of public funds in all levels of government.

  Users of public sector accounting information include:
(1) The President, Governors and local government Chairmen.
(2) Government Advisers.
(3) Pressure groups.

(4) Legislators.
(5) Media Representatives.
(6) Foreign Investors.
(7) Foreign Governments.
(8) Creditors
(9) General Public
(10) Administrators of Government departments
(11) International Financial Institutions.

   Government Accounting has many purposes including:
(1) It shows the sources of Government revenue
(2) It proves financial accountability
(3) It shows the basis of disbursement of Government revenue
(4) It is a control instrument
(5) It enables effective and efficient Government planning
   Government`s financial transactions are recorded when cash is paid out or received, irrespective of the fact that transaction leading to payments and receipts ma have been recorded in the previous accounting.Under cash basis of accounting, debtors and creditors are not taken into consideration. The cost of fixed assets are written off in the year of purchase. The cash basis is used in many countries because it simple.
  Difference Between Government Accounting And Commercial Accounting
   

Government Accounting	Commercial Accounting
Its provides goods and services at reasonable prices to the people. Public is the target of of the product of government. It is on cash basis. It reports to the general public The cost of asset is written off in the year of purchase.	The goal of commercial accounting is to maximize profit. Commercial accounting targets those who have the ability to pay. It is on accrual basis. It reports to the shareholders. The cost of asset is spread over the useful life of the asset.

   Sources of government revenue are:
(1)  Federal Government: Direct tax, indirect tax, Mining, Licenses and Internal Revenue, Interest and Repayment, et.c.
(2) State Government: Fees, Direct tax, indirect tax, Mining, Licenses and Internal Revenue, Interest and Repayment, et.c. 
(3) Local Government:  Donations, Tenement rates, Fines, Park collection, Licenses,  Allocation from federal government.
  Government Financial Officials Are:

Accountant-General of the federation:  He is the chief executive officer of the federation. He prepares financial statements of the country. The financial statements show the true state of affairs of the country.

Auditor-General of the federation: He is entrusted with the receipt with the receipt, custody and disbursement of government funds. He is responsible for controlling scarce resources of the public.

  Treasury Department is the the strong house of the government. It deals with the management of public funds at all levels of government. It receives and pays money on behalf of the government.
Board of inland revenue monitors tax, prosecute tax evaders, and ensures uniformity in the system of tax collection in the whole country.
Ministry of finance arranges revenue allocation, insures government properties, plans the economy, and monitors import duty.
Board of customs and revenue ensures speedy collection of import duties, prosecutes smugglers, collect excise duties and monitors importation and exportation.
        Government Expenditures

1. Capital expenditures are expenditures that are capital in nature. They are fixed assets e.g railway lines, hospitals, schools e.t.c.
2. Recurrent expenditures are costs on running  the day to day activities of the government departments e.g wages and salaries of workers, maintenance of buildings e.t.c.

     Government Revenues

1. Capital revenue is the revenue that accrues to the government through loans and grants from both local and foreign sources which are tied down to certain projects.
2. Recurrent revenue is the amount of money collected by the government from their regular sources of revenue. The revenue is generated daily and expected by government in a particular year.

Estimate is the name given to a budget in public sector accounting. It is a government`s proposal in terms of spending in a particular year. We have capital and recurrent estimates.
     Books of Accounts in Public Sector Accounting

1. Receipt voucher
2. Payment voucher
3. Store receipt voucher
4. Store issues voucher
5. Adjustment voucher
6. Cash book
7. Vote book.