Dr Cr

Property rates - 53,300.00

Service charges - 21,000.00

Investment revenue - 22,000.00

Grant received - 112,000.00

Other own revenue -27,100.00

Employee costs 42,000.00 -

Transport costs 15,500.00 -

Electricity 5,400.00 -

Councillor remuneration 18,000.00 -

Depreciation and asset impairmen5,200.00 -

Material & bulk purchases 49,500.00 -

Other expenditure 19,000.00 -

Professional fees 5,500.00 -

Telephone costs 7,500.00 -

Insurance expenses paid 3,800.00 -

Inventory 7,000.00 -

Accounts receivables 32,000.00 -

Accounts payables - 23,000.00

Bank balances 59,000.00 -

Long term loan - 65,000.00

Buildings 70,000.00 -

Net Assets /Community wealth/ Equity - 26,000.00

349,400 349,400

Additional information:

1. Ubuntu Local municipality owes R 4,000 for electricity and R600 for telephone expenses.

2. Depreciation on buildings of 2 % has not yet been taken into account as at year end.

3. The above transactions have not been taken into account as at year end and will need to be

taken into account.

Required:

1.Prepare adjusting journal entries in respect of the information given above. (8marks)

Prepare statement of financial performance and Statement of financial position for Ubuntu Local Municipality for the year

ended 30 June 2015. (12marks )