Menu
- 16 Marks
Question
The Trial Balance was extracted from the books of Bokom Municipal Assembly (BMA) as at 31st December 2015.
| Debit | GH¢’000 | Credit | GH¢’000 |
|---|---|---|---|
| Property rate | 450 | Sundry payables | 60 |
| Basic rates | 200 | Short term loans | 120 |
| Special rates | 50 | Deposits | 100 |
| Lorry park fees | 40 | Accumulated Fund | 43 |
| Marriage and divorce registration | 10 | ||
| Building permits | 110 | ||
| Penalties | 80 | ||
| Market toll | 620 | ||
| Share of District Assembly Common Fund | 980 | ||
| District Development Facility | 350 | ||
| Compensation for employees | 1,000 | ||
| Herbalist licenses | 20 | ||
| Hawkers licenses | 15 | ||
| Other licenses | 12 | ||
| Royalties | 50 | ||
| Share of stool land revenue | 150 | ||
| Market Store rent | 70 | ||
| Other rentals | 40 | ||
| Interest on investment | 10 | ||
| Gains from business | 30 | ||
| Established post | 1,080 | ||
| Non-established post | 700 | ||
| Goods and services | 950 | ||
| Interest expense | 20 | ||
| Social benefits | 180 | ||
| Other expenditure | 260 | ||
| Bank and Cash | 40 | ||
| Advances and loans | 80 | ||
| Investment | 100 | ||
| Property, Plant, and equipment | 1,200 | ||
| 4,610 | 4,610 |
Additional Information:
- Revenues are classified as follows: Rate, Land Revenue, Fees and Fines, Licenses, Rent income, investment income, and Grants.
- The expenditure classification should comply with the harmonized Chart of Accounts.
- Consumption of fixed capital for the year is computed as GH¢260,000.
Required:
a) Prepare:
i) A Statement of Financial Performance for the year ended 31st December 2015.
ii) A Statement of Financial Position as at 31st December 2015. (Please show all workings clearly). (16 marks)
Answer
i) Statement of Financial Performance for the year ended 31st December 2015:
| Revenues | GH¢’000 |
|---|---|
| Rates (Property, Basic, Special) | 700 |
| Land Revenue (Royalties, Stool Land) | 200 |
| Fees and Fines (Lorry park fees, Marriage registration, Building permits, Penalties, Market toll) | 860 |
| Licenses (Herbalist, Hawkers, Other licenses) | 47 |
| Rent Income (Market Store, Other rentals) | 110 |
| Investment Income (Interest, Gains from business) | 40 |
| Grants (DACF, DDF, Compensation) | 2,330 |
| Total Revenue | 4,287 |
| Expenditures | GH¢’000 |
|---|---|
| Compensation (Established and Non-Established Posts) | 1,780 |
| Goods and Services | 950 |
| Consumption of Fixed Capital | 260 |
| Interest Expense | 20 |
| Social Benefits | 180 |
| Other Expenditure | 260 |
| Total Expenditure | 3,450 |
Surplus: GH¢837,000
ii) Statement of Financial Position as at 31st December 2015:
| Assets | GH¢’000 |
|---|---|
| Property, Plant, and Equipment (1,200 – 260) | 940 |
| Investment | 100 |
| Advances and Loans | 80 |
| Bank and Cash | 40 |
| Total Assets | 1,160 |
| Liabilities and Fund | GH¢’000 |
|---|---|
| Sundry Payables | 60 |
| Short Term Loans | 120 |
| Deposits | 100 |
| Accumulated Fund (837 + 43) | 880 |
| Total Liabilities and Fund | 1,160 |
Workings:
- Rates:
- Basic Rate: GH¢200,000
- Property Rate: GH¢450,000
- Special Rate: GH¢50,000
- Land Revenue:
- Royalties: GH¢50,000
- Share of Stool Land Revenue: GH¢150,000
- Fees and Fines:
- Lorry Park Fees: GH¢40,000
- Marriage and Divorce Registration: GH¢10,000
- Building Permits: GH¢110,000
- Penalties: GH¢80,000
- Market Toll: GH¢620,000
- Licenses:
- Herbalist Licenses: GH¢20,000
- Hawkers Licenses: GH¢15,000
- Other Licenses: GH¢12,000
- Rent Income:
- Market Store Rent: GH¢70,000
- Other Rentals: GH¢40,000
- Investment Income:
- Interest on Investment: GH¢10,000
- Gains from Business: GH¢30,000
- Grants:
- Share of District Assembly Common Fund: GH¢980,000
- District Development Facility: GH¢350,000
- Compensation for Employees: GH¢1,000,000
- Uploader: Joseph