Question 2 Local authorities do follow the normal preparation of financial statements, and their most important statements are: a) An Income Statement/Statement of Revenue and Expenditure that indicates the revenue and expenses of the council for a specific period. It could be monthly, half yearly or yearly statements. b) A statement of financial position that indicates the financial position of the council at a particular time with regard to the amount of assets and liabilities. Below are the financials of Omuthiya Local Authority in the Oshikoto Region for the period ended 31 March 2019. Page 10 of 11 FACULTY OF ECONOMIC & MANAGEMENT SCIENCES You are required to construct a Statement of Position of the Authority in question. (15 Marks) Accounts payable N$ 500 000.00 Assets in the form of Land N$ 40 500.00 Stores & Material N$ 25 000.00 Fund Equity N$ 489 000.00 Cash at FNB N$ 25 000.00 Office Equipment N$ 37 850.00