Q1 (a) The Kunsong-Litiale District Assembly has been without an accountant for the past 3 months. Joe Lamisi, the administrative officer assumed responsibility for the accounting function at the assembly and prepared the following accounts: Kunsong-Litiale District Assembly Income Statement for the year ended 30th December 2019 GHC GHC Revenue Property Tax 800,000.00 Fees earned from the abattoir 50,000.00 Mineral royalties 40,000.00 890,000.00 Expenditure Personal emoluments 425,000.00 Depreciation (2019) 210,000.00 Sundry supplies 45,000.00 Insurance 6,000.00 Page 1 of 3 Travel and Transport Repairs and maintenance 29,000.00 35.000.00 Net Income 750,000.00 140,000 Additional Information i. Only half of the property tax was received during the period. The remaining amount is not expected to be received until 4 months into next financial year. ii. The fees from the abattoir will be available to meet special expenditure when they become due on 1 January 2020. Mineral royalties were received in cash. Sanitary equipment totalling GHC15,000.00 was purchased and paid by cheque during the year. Five percent of the total salary is accrued at the year end. vi. The supplies were purchased and used within the current year. vii. The insurance was purchased in the preceding financial period. iv. V. You have been posted to the Assembly as the District Finance Officer. Required; Recast the income statement for 2019 using the cash basis of accounting 20 Marks (b) Commitment accounting as used in the public sector is burdensome and must be discarded. Discuss 15 Marks Section B (40 marks). Answer any 2 questions Q2 State and explain five (5) duties of a Principal Spending Officer as enshrined in the Public Financial Management Act, 2016 (Act 921) Q3 Article 252 of the 1992 Constitution of the Republic of Ghana provides for the establishment of the District Assembly Common Fund. Outline and discuss the basis for the distribution of the Common Fund to Metropolitan, Municipal and District Assemblies. 20 Marks Q4 The Petroleum Revenue Management Act, 2011 (Act 815) provides for the establishment of the Ghana Heritage Fund. Discuss the arguments for and against the creation of the Ghana Heritage Fund. 20 Marks Q1 (a) The Kunsong-Litiale District Assembly has been without an accountant for the past 3 months. Joe Lamisi, the administrative officer assumed responsibility for the accounting function at the assembly and prepared the following accounts: Kunsong-Litiale District Assembly Income Statement for the year ended 30th December 2019 GHC GHC Revenue Property Tax 800,000.00 Fees earned from the abattoir 50,000.00 Mineral royalties 40,000.00 890,000.00 Expenditure Personal emoluments 425,000.00 Depreciation (2019) 210,000.00 Sundry supplies 45,000.00 Insurance 6,000.00 Page 1 of 3 Travel and Transport Repairs and maintenance 29,000.00 35.000.00 Net Income 750,000.00 140,000 Additional Information i. Only half of the property tax was received during the period. The remaining amount is not expected to be received until 4 months into next financial year. ii. The fees from the abattoir will be available to meet special expenditure when they become due on 1 January 2020. Mineral royalties were received in cash. Sanitary equipment totalling GHC15,000.00 was purchased and paid by cheque during the year. Five percent of the total salary is accrued at the year end. vi. The supplies were purchased and used within the current year. vii. The insurance was purchased in the preceding financial period. iv. V. You have been posted to the Assembly as the District Finance Officer. Required; Recast the income statement for 2019 using the cash basis of accounting 20 Marks (b) Commitment accounting as used in the public sector is burdensome and must be discarded. Discuss 15 Marks Section B (40 marks). Answer any 2 questions Q2 State and explain five (5) duties of a Principal Spending Officer as enshrined in the Public Financial Management Act, 2016 (Act 921) Q3 Article 252 of the 1992 Constitution of the Republic of Ghana provides for the establishment of the District Assembly Common Fund. Outline and discuss the basis for the distribution of the Common Fund to Metropolitan, Municipal and District Assemblies. 20 Marks Q4 The Petroleum Revenue Management Act, 2011 (Act 815) provides for the establishment of the Ghana Heritage Fund. Discuss the arguments for and against the creation of the Ghana Heritage Fund. 20 Marks