The City of Kings have won several international awards in Southern Zimbabwe for its

transparent operations interpreted as key indicators of good governance in Local Authorities.

The City operates an effective Water and Sanitation General fund from which the following

transactions have extracted.

$1.$ The Full Council executive meeting approved a budget of $$280000$ for the following

year operations of the department

$2.$ The department is enterprising, hence levy user charges for both water and sanitation.

At the day the budget was approved, the department also forecast cash revenue

amounting to $$98000.$

$3.$ The department makes its orders for water treatment chemicals semi$-$annually from

OEM & ODEM Chemicals South Africa. At the beginning of the year a purchase order

for Water Treatment Chemicals to the tune of $$140000$ was issued.

$4.$ The council has also allocated $$210000$ from property tax to fund the department

during the current year.

$5.$ With just a month from the date of the order, OEM & ODEM Chemicals delivered

chemicals valued at $$63000$ at invoice price similar to the order price and the invoices

were paid in full.

$6.$ The department incurred staff costs of $$14000$ which were paid for in full.

$7.$ The other purchase order for water treatment chemicals to the tune of $$7000$ was raised

at midyear.

$8.$ OEM & ODEM Chemicals delivered chemicals for outstanding purchase orders of $ $4$

$200$ at an invoice price of $$2800.$

$9.$ The department received an allocation from property tax received amounting to $$56$

$000$

$10.$ The department discovered that it had large stock of one of the ordered chemicals hence

cancelling a purchase order of $$7000.$

Required

a$)$ Using the governmental fund basis of accounting, show journal entries to post the above

transactions. $[15]$

b$)$ Complete the Appropriations$-$Expenditures $$Encumbrances ledger to reflect these

transactions. $[10]$