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- 20 Marks
Question
a) Below are extracts from the books of a Local Government Authority for the period ended 31 December 2015.
| GH¢ | |
|---|---|
| Rates | 27,115.16 |
| Non-Governmental Agencies | 1,000.00 |
| Grants – District Development Facility | 888,828.37 |
| Lands and Royalties | 113,563.50 |
| Rents of Lands, Buildings | 14,855.20 |
| Licences | 55,394.22 |
| Fees | 139,784.70 |
| Fines, Penalties and Forfeits | 14,231.00 |
| Miscellaneous and Unidentified Revenue | 27,345.50 |
| Established Posts | – |
| Non-Established Posts | 41,503.62 |
| Other Allowances | 40,231.05 |
| Casual labour | 7,576.45 |
| Materials /Office Supplies | 34,628.40 |
| Utilities | 5,286.20 |
| General Cleaning | 358.50 |
| Rentals | 6,260.07 |
| Transport | 90,724.05 |
| Repairs and Maintenance | 10,568.40 |
| Training, Seminars, Conferences | 46,013.70 |
| Consulting Services | 1,500.00 |
| Special Services | 37,904.00 |
| Other Charges / Fees | 1,735.40 |
| Grants – DACF | 459,992.60 |
| Constituency’s Share of the Common Fund | 39,000.00 |
| GOG – Grant | 206,845.97 |
| Donors | 595,086.20 |
| Other expenses | 11,163.44 |
Below The Line Accounts
| GH¢ | |
|---|---|
| Cash and Bank | 200,740.71 |
| Receivables | 29,100.97 |
| Equity Investment | – |
| Infrastructure, Plants and Equipment | 322,929.71 |
| Work-in-progress | 125,064.79 |
| Accounts Payables | 5,000.00 |
| Deposits and Other Trust Monies | 25,000.00 |
| Accumulated Fund | 1,002,096.58 |
Required: Prepare a Revenue and Expenditure Statement for the year ended 31 December 2015 and a Statement of Financial Position as at that date. (Show workings) (20 marks)
Answer
Revenue and Expenditure Statement for the Period Ended 31 December 2015
| Revenue | Note | GH¢ |
|---|---|---|
| Rates | 27,115.16 | |
| Donors, Grants and Relief | – | |
| Non-Governmental Agencies | 1,000.00 | |
| Grants – Districts | 888,828.37 | |
| Interest | – | |
| Lands and Royalties | 113,563.50 | |
| Rents of land, buildings | 14,855.20 | |
| Licenses | 55,394.22 | |
| Fees | 139,784.70 | |
| Fines, Penalties and Forfeits | 14,231.00 | |
| Miscellaneous unidentifiable revenue | 27,345.50 | |
| Total Revenue | 1,282,117.65 |
| Expenditure | ||
|---|---|---|
| Compensation of Employees | (1) | 89,311.12 |
| Goods and services | (2) | 234,978.72 |
| Consumption of fixed capital | – | |
| Interest | – | |
| Grants*** | (3) | 1,300,924.97 |
| Other expenses | 11,163.44 | |
| Total Expenditure | 1,636,378.25 | |
| Surplus / deficit for the period | (354,260.40) | |
| Accumulated surplus as at 31/12/13 | 1,002,096.58 | |
| Accumulated surplus as at 31/1/14 | 647,836.18 |
STATEMENT OF FINANCIAL POSITION AS AT 31ST DECEMBER, 2015
| Assets | GH¢ | GH¢ |
|---|---|---|
| Current Assets | ||
| Cash Balances | 200,740.71 | |
| Receivables | 29,100.97 | |
| Prepayments | – | |
| Total Current Assets | 229,841.68 |
| Non-Current Assets | | | | Equity Investment | | – | | Infrastructure, Plant & Equipment | | 322,929.71 | | Work-in-progress | | 125,064.79 | | Total Non-Current Assets | | 447,994.50 | | Total Assets | | 677,836.18 |
| LIABILITIES | GH¢ | GH¢ |
|---|---|---|
| Current Liabilities | ||
| Accounts Payables | 5,000.00 | |
| Deposits & Other Trust Monies | 25,000.00 | |
| Short-term Borrowings | – | |
| Total Current Liabilities | 30,000.00 |
| Non-Current Liabilities | | – | | Total Liabilities | | 30,000.00 |
| NET ASSETS | | 647,836.18 |
Workings
- Compensation of Employees
| Compensation of Employees | GH¢ |
|---|---|
| Non-Established Post | 41,503.62 |
| Other Allowances | 40,231.05 |
| National Insurance Contribution | 7,576.45 |
| Total | 89,311.12 |
- Goods & Services
| Goods & Services | GH¢ |
|---|---|
| Materials / office supplies | 34,628.40 |
| Utilities | 5,286.20 |
| General Cleaning | 358.50 |
| Rentals | 6,260.07 |
| Transport | 90,724.05 |
| Repairs & Maintenance | 10,568.40 |
| Training, Seminars, Conference | 46,013.70 |
| Consulting Services | 1,500.00 |
| Special Services | 37,907.00 |
| Other Charges/Fees | 1,735.40 |
| Total | 234,978.72 |
- Grants**
| Grants**** | GH¢ |
|---|---|
| Grant – DACF | 459,992.60 |
| MP’s Common Fund | 39,000.00 |
| GOG Grant | 206,845.97 |
| Donors | 595,086.20 |
| Total | 1,300,924.97 |
*** An alternative treatment is to treat grant*** as revenue to the Assembly since the question was not clear on whether the grant is expenditure or revenue.
(20 marks evenly spread using ticks)
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