Question
QUESTION 3 You have just been appointed as the Controller and Accountant General of Ghana by the President of the republic of Ghana and at
QUESTION 3
You have just been appointed as the Controller and Accountant General of Ghana by the President of the republic of Ghana and at your first day at the office you are provided with the following trial balance and foot notes relating to the Consolidated Fund for the year ended 31st December, 2020
| Debit | Credit | |
| GH'000 | GH'000 | |
| Corporate taxes | 200,000 | |
| Personal income taxes | 120,000 | |
| Capital gain taxes and sundries | 50,000 | |
| Taxes on general goods and services | 180,000 | |
| Fees, fines and penalties | 80,000 | |
| Investment income | 20,000 | |
| Custom duties | 250,000 | |
| Grants | 150,000 | |
| Communication service taxes | 100,000 | |
| Royalties | 40,000 | |
| Established post | 240,000 | |
| Casual labour | 60,000 | |
| Travel and transport | 70,000 | |
| Repairs and maintenance | 50,000 | |
| 13% Social security contribution | 26,000 | |
| Gratuity and end of service benefit | 168,000 | |
| State protocol | 180,000 | |
| Independence Day celebration | 205,000 | |
| Seminar and conferences | 110,000 | |
| Probation | 25,000 | |
| Property plant and equipment (at cost) | 300,000 | |
| Infrastructure (at cost) | 400,000 | |
| Accumulated consumption of fixed capital- PPE | 50,000 | |
| Accumulated consumption of fixed capital- Infrastructure | 80,000 | |
| Grants to local government | 290,000 | |
| Social benefits | 315,000 | |
| Subsidies cost | 245,000 | |
| Domestic debt Interest | 500,000 | |
| External debt interest | 520,000 | |
| Domestic debt | 1,200,000 | |
| External debt | 1,800,000 | |
| Loans and advances | 90,000 | |
| Equity investment | 200,000 | |
| Cash and cash equivalent | 110,000 | |
| Sundry creditors | 80,000 | |
| Accumulated Fund | 316,000 | ------------ |
| 4,400,000 | 4,400,000 |
Additional Information
The following has been extracted from the 2019 annual budget.
|
| GHc000HH |
| Compensation for employees | 490,000 |
| Good and services | 350,000 |
| Direct taxes | 400,000 |
| Indirect taxes | 600,000 |
| Public debt interest | 800,000 |
| Subsidies cost | 240,000 |
| Social benefit | 250,000 |
| Grants to local government | 260,000 |
| Grants from other governments | 150,000 |
| Consumption of fixed capital | - |
| Non-tax revenue | 200,000 |
Consumption of fixed capital for the year ended 31st December, 2019 is charged as follows; property, plant and equipment GH20,000,000 and infrastructure GHc30,000,000.
Donation received in-kind during the year amounted to GHc24,000,000 and no record was made in the books of accounts.
Salary for 5,000 new staff recruited into the civil service remained unpaid during the year. Repair and maintenance paid in advanced to recognize garages during the year amounted to GH96,000,000.
Domestic interest due but not paid at the end of the year amounted to GH10,000,000.
The financial reports are prepared using GIFMIS chart of accounts of government.
Required:
Prepare in line with the IPSAS and the Public Financial Laws of Ghana:
A Statement of Revenue and Expenditure Statement of the Consolidated Fund in Comparison with the Budget for the year ended 31st December, 2019.
A Statement of Financial Position of the Consolidated Fund as 31st December, 2019
Notes to the financial statement.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Accounting for Governmental and Nonprofit Entities
Authors: Earl R. Wilson, Jacqueline L Reck, Susan C Kattelus
15th Edition
978-0256168723, 77388720, 256168725, 9780077388720, 978-007337960
