Graded Assessment 2: Problem Set #1 General Purpose Financial Statements The following Trial Balance relates to Banco Community College, a public tertiary educational institution in Guyana, as at December 31, 2019. CR DR S000 $000 4,575,622 5,312,430 856,670 655,600 25,059 1,540,000 Fees Income Permanent Post Allowance Independent consultancy fees Legal Cost CARICOM Grant Consultancy Cost Non-Permanent Post Seminars cost Sponsorship (granted/received) Receivables Payables 20% loan Books and Research Allowance Plant and Machinery Motor Vehicle Building Software Other Incomes 565,500 1,253,600 500,000 8,100 468,050 9,066,828 182,840 8,600 150.765 3,000,000 2,505.000 12,300,000 995,500 250,000 352,000 756,000 150,000 211,430 48,500 294,233 104,000 4,940 8,251,735 71,000 90,500 11,205,270 Project Work Supervisory Allowance Cash and Bank Training and Workshop cost Bad debt provision (student fees) Work in Progress Other Expenses Withholding Tax Accumulated Fund Utilities Bills Proceeds from Sale of Admission Forms Superannuation End of Service Benefits Stationery Stock 560,053 9,196,270 278,500 298,040 399,165 38.245.900 38.245.900 Additional Information: 1. IV. V. VI. The college has adopted the accrual basis International Public Sector Accounting Standards (IPSAS) as the basis for preparation of its financial statements. Stationery stock as at 31/12/2019 was $200,500,000 but have a Net Realizable Value of $155,254,000 Social benefits of $1,720,000 yet to be paid during the year was included in the Work in Progress value. Consultancy cost amounting $234,500,000 was incurred but not yet paid Books and Research Allowance was received from Government during the period amounting to $337,530,000 for disbursement to qualified Lectures and Administrative staff. Provision is to be made for interest on loans. 60% of the receivables represent an amount of students' fees outstanding as at 31/12/2018. Provision for doubtful debt is estimated to be 5% of outstanding school fees. The university uses straight line basis of depreciation for Capital Assets. Capital Assets and their useful lives are detailed out below: Assets Useful Life Plant and Machinery 8 years Motor Vehicle 5 years Building 50 years Software 7 years VII. Required: 1. Prepare a Statement of Financial Performance for Banco Community College for the year ended 31/12/2019. (8 marks) 2. With reference to IPSAS 1: Presentation of Financial Statements, state four (4) objectives of general purpose financial statements. (2 marks)