StuDocu.com Public Sector Accounting Questions and Answers Accountants in Business (ACCA) (University of Professional Studies) ‘StuDo0u is not sponsored or endorsed by any colege or university Downloaded by Medonald Mutsvanga Tinashe(tinashemedonakimutsvanga@gmsaicom)Marking Scheme Statement of Financial Performance for the year ended 31 Dec 2018 Actual Budget Revenue GHeM = GiIeM Direct tax 57,500 60,000 Indirect tax 48,800 $5,000 ‘Non-tax revenue 90,700 100,700 Grants 18,100 20,000 Total revenues 215.100 235.700 Expenditures Compensation for employees 64,500 62,400 Goods and services 35,000 45,000 Consumption of fixed capital 18,000, Grants 200 500 Interest 6,500 6,000 Subsidies 1,000 1,500 social benefit cost 500 2,000 Other expenditures 11,000 8,000 Total expenditure 156.700 125.400 Surplus 58.400 110,300 Statement of Financial Position as at Dec 312018 ‘Assets GHte PPEs 162,000 Equity investment 38,000 Loans 13,000 Advances 400 Revenues receivable 2,500 Bank and cash 25,000 240,900 Liabilities and Fund Payable (14,500+3000+20,000) 37,500 Domestic debt 30,000 External debt 35,000 102,500 Accumulated fund (80,000 +58,600) 138,400 240,900 Downloaded by Medonalé Mutsvanga Tinashe (inashemedonaldmutsvangNotes to the accounts 1. Accounting policies a) Basis of accounting ‘The financial statements are prepared on acerual basis. ) Consumption of fixed capital PPEs are consumed at the rate of 10% per annum on carrying amount. ©) Compliance to the IPSAS the financial statements have been prepared in compliance with the IPSAS and PFMA. 2. Direct taxes, Taxes paid by corporations ‘Taxes paid by individuals other direct taxes ‘Taxes receivables 3. Indirect taxes ‘Taxes on general goods and services 30,000 Communication service taxes 18,000, other taxes on goods 800 48,800 4, Compensation for employees Established post 40,000 Casual labour 10,000 ‘Travel allowance 2,000 13%SSC 8,000 Secondment 1,500 Salaries arrears 3,000 £4,500 5. Goods and services Travel and transport 5,000 Seminar and conferences 12,000 General Cleaning 6,000 Local consultancy 12,000 Electricity outstanding 20,000 55,000 6. Accumulated Fund Balance bif 80,000 Surplus 58,400 138,400 60 ticks @ 0.3 marks = 18 marks, 2 accounting policies @ 1 mark each = 2 marks, Total = 20 marks Downloaded by Medonalé Mutsvanga Tinashe (nashemedonaldmutsvangUNIVERSITY OF PROFESSIONAL STUDIES ACCRA DEPARTMENT OF ACCOUNTING INTERIM ASSESSMENT, 2019 BACT406: PUBLIC SECTOR ACCOUNTING (EVENING GROUP ) TIME ALLOWED: | HOUR Below is the list of balance of the Consolidated Fund for the year ended 31™ December 2018 GHC'million Direct tax 100,000 Indirect tax 150,000 Grants from bilateral partners 25,000 Grants from multilateral partners 320,000 Others grants received 10,000 Royalties 8,000 Fees and fines 2,000 Interest income 400 Seminar and trainning 22,000 Local consultancy 34,000 Foreign consultancy 23,000 ‘Travel and transport 6,000 ‘Travel allowances and perdiem 56,000 Estaplished post salaries 220,000 Non-established post 80,000 End of service benefits 120,000 Car maintenance allowances 40,000 other staff cost 12,000 Cleaning cost 3,000 Office consumable 5,000 Subsidies 10,000 Social benefit cost 35,000 Grants to local government 60,000 Property plant and equipment at cost 400,000 Accumulated consumption of PPEs 45,000 Investments 80,000 Loans and advances 20,000 Cash and equivalent 36,000 Other expenditures 15,000 Domestic debt 180,000 External debt 320,000 interest expense 40,000 Downloaded by Medonald Mutsvanga Tinashe (nashemedonaldmutsvanga@gmaiLcom)Accummulated fund (Cr.) 156,600 Additional Information i) __Itis the policy of government to charge consumption of fixed capital on cost pe. Property plant and equipment is consumed at the rate of 20% per annum. ii) Fees amounting to GHe20,000,000,000 was earned but not received as at 31" December, 2018. iii) Staff allowances of GHe500,000,000 remained unpaid at the end of the year. iv) The revenue and expenditure extracts from the budget for 2018 are as follows. \ GHe million Direct taxes 120,000 Indirect taxes 180,000 Grants 400,000 ‘Compensation for employees 420,000 ‘Goods and services 90,0000 ‘Non-tax revenues 50,000 Subsidies cost 20,000 Social benefit cost 40,000 Grants expense 70,000 Other expenditures 20,000 Interest expense 40,000 Required: ) Prepare in compliance to the IPSAS and the Public Financial Management Act 2016 (Act 921) for the Consolidated Fund: i) Statement of Revenue and Expenditure for the year ended 31% December 2018; ii) Statement of Financial Position as at 31" December, 2018; and iii) Notes to the accounts. b) Which public officer is responsible for the preparation of the set of financial statements you have prepared in question (a) above? [20 marks} Downloaded by Medonalé Mutsvanga Tinashe (nashemedonaldmatsvanga@gmaiLcom)Marking Scheme for Evening School ‘Statement of Revenue and Expenditure for the year ended 31st Dec 2018 ‘Actual Budget GHem GHem Direet tax 100,000 120,000 Indirect tax 150,000 180,000 Grants 355,000 400,000 ‘Non-tax revenues 30,400 50,000 000 Expenditure ‘Compensation for employees 420,000 Goods and services 90,000 Consumption of fixed capital - Interest 40,000 Grants 70,000 Subsidies 20,000 Social benefit 40,000 Other expenditures 20,000 700,000 Deficit/surplus 50,000 ition as at 31st December, 2018 Assets GHeM Property plant and equipment 284,000 Investments 80,000 Loans and advances 20,000 Revenues receivable 20,000 Cash and equivalent 36,000 440,000 Liabilities and Funds Payable 500 Domestic debt 180,000 External debt 20,000 500,500 Accumulated fund -60,500 Downloaded by Medonalé Mutsvanga Tinashe (nashemedonaldmutsvangNotes 1, Accounting Policies a) Basis of Accounting Accounts have been prepared on accrual basis b) Consumption of fixed capital Itis the policy to charge consumption of fixed capital on carrying amount. ©) Compliance with IPSAS Accounts are prepared in compliance with IPSAS. 2. Grants Bilateral 25,000 Multilateral 320,000 Other grants 10,000 3. Non-tax revenues Royalties 8,000 Fees and fines 2000 Interest income 400 Fees receivable 20,000 30,400 4. Compensation for employee Travel allowance 36,000 Established post 220,000 Non established post 80,000 Car maintenance allowance 40,000 Other staff costs 12,000 ESB 120,000 Allowance arrears 500) 528,500 5. Goods and Services Cleaning 3,000 Office consumable 5,000 ‘Seminar and training 2,000 Local consultancy 34,000 Foreign consultancy 23,000 Travel and transport 6,000 6. Accumulated fund Balance bif 156,600 Deficit 217,100 60,500 Downloaded by Medonald Mutsvanga Tinashe (Unashemedonaldmutsvanga@gmal.com)+b) Controller and Accounting General is responsible for the compilation of public accounts of the consolidated Fund, Mark allocation 60 ticks @ 0.3 = 18 marks I mark for any one accounting policy stated =I mark 1 mark for identifying controller and accountant general = 1 mark Downloaded by Medonald Mutsvanga Tinashe (nashemedonaldmutsvanga@gmallcom)