Question ThreeThe following Trial Balance is the financial details of West Municipal Assembly for the yearended 31 December, 2021 District Development Facility (DDF) $58,600 CreditSpecial Sanitation Grant from Government $30,260 CreditShare of Common Fund $587,450 CreditProperty Rate (ii) $73,230 CreditFuneral Rate $25,270 CreditSalary Div 1 $266,280 DebitCommission to Revenue Collectors $15,790 DebitPrinting and Publication $66,110 DebitUtility Bills $20,040 DebitConferences $14,580 DebitDonations $80,770 CreditContract Retention $13,970 CreditMarket Tolls $25,550 CreditCourt Fines $109,400 CreditMarriage and Divorce Registration $43,840 CreditTelecommunication Cost $18,830 DebitRepairs and Maintenance $9,720 DebitTown Hall Meetings $64,890 DebitSpecial Audit Fees $27,130 DebitTravel and Transport $54,670 DebitRevenue Receivable $208,570 DebitSalary Div 2 $315,090 DebitAssembly Members Allowance $79,000 DebitConsultancy Cost $4,750 DebitHawkers License $37,150 CreditChop bar License $85,600 CreditMarket Stall Rent $31,590 Credit Bungalow Rent $20,750 CreditAdvertisement and Promotions $11,500 CreditOffice Consumables (1/1/2021) $18,290 DebitPurchase of Office Consumable $47,580 DebitWithholding Tax $45,400 CreditInterest on Loan/ Financial Assets (vii) $5,740 Debit $1,050 CreditOther Expense (iv) $25,620 DebitMotor Vehicles (v) $61,180 Debit $18,220 CreditBuilding Structures (v) $119,200 Debit $7,450 CreditFixtures, Furniture and Fittings (v) $25,000 Debit $10,000 CreditWork in Progress $20,520 DebitLoans and Advances to Staff $20,700 DebitPayables $96,760 CreditLong Term loans $75,330 CreditAccumulated Fund $70,870 CreditCash and Cash Equivalents $50,730 Debit Debit $1,560,010 Credit $1,560,010 Additional Information i) It is policy of the Assembly to adopt Accrual Basis in preparing its financialStatements in compliance with Public Financial Management Act, 2016 (Act 921),Public Sector accounting Standards (IPSAS) and Local Governance Act 2016,(Act 936).ii) Office Consumables in respect of Stationery and other items bought remainedunused during the year. The ending inventory amounted to $1,550,000.iii) Property Rates received in respect of 2022 financial year amounted to $2,050,000.iv) Salaries outstanding during the year amounted to $750,000 and other expensesamounting to $1,105,000 paid in respect of 2022 financial year. v) Consumption of fixed assets is charged on straight line basis for the year asfollows:Asset Useful LifeMotor Vehicles 10 YearsFurniture, Fixtures & Fittings 5 YearsBuilding and Structures 50 Years vi) Included in the Work in progress is an amount of $2,000,000 relating to aBuilding which was completed, commissioned and put to use on 5 July 2021, afteran additional amount of $800,000 was spent to complete the pavement aspect ofthe building. This expenditure has not yet been paid.vii) Interest on Loans to staff is at the rate of 15% per annum and interest on long termLoans is at the rate of 10%per annum Required:Prepare:a) A Statement of Financial Performance for West Municipal for the year ended 31December 2021.b) A Statement of Financial Position for West Municipal as at 31 December, 2021.
Question Three
The following
ended 31 December, 2021
District Development Facility (DDF) $58,600 Credit
Special Sanitation Grant from Government $30,260 Credit
Share of Common Fund $587,450 Credit
Property Rate (ii) $73,230 Credit
Funeral Rate $25,270 Credit
Salary Div 1 $266,280 Debit
Commission to Revenue Collectors $15,790 Debit
Printing and Publication $66,110 Debit
Utility Bills $20,040 Debit
Conferences $14,580 Debit
Donations $80,770 Credit
Contract Retention $13,970 Credit
Market Tolls $25,550 Credit
Court Fines $109,400 Credit
Marriage and Divorce Registration $43,840 Credit
Telecommunication Cost $18,830 Debit
Repairs and Maintenance $9,720 Debit
Town Hall Meetings $64,890 Debit
Special Audit Fees $27,130 Debit
Travel and Transport $54,670 Debit
Revenue Receivable $208,570 Debit
Salary Div 2 $315,090 Debit
Assembly Members Allowance $79,000 Debit
Consultancy Cost $4,750 Debit
Hawkers License $37,150 Credit
Chop bar License $85,600 Credit
Market Stall Rent $31,590 Credit
Bungalow Rent $20,750 Credit
Advertisement and Promotions $11,500 Credit
Office Consumables (1/1/2021) $18,290 Debit
Purchase of Office Consumable $47,580 Debit
Withholding Tax $45,400 Credit
Interest on Loan/ Financial Assets (vii) $5,740 Debit $1,050 Credit
Other Expense (iv) $25,620 Debit
Motor Vehicles (v) $61,180 Debit $18,220 Credit
Building Structures (v) $119,200 Debit $7,450 Credit
Fixtures, Furniture and Fittings (v) $25,000 Debit $10,000 Credit
Work in Progress $20,520 Debit
Loans and Advances to Staff $20,700 Debit
Payables $96,760 Credit
Long Term loans $75,330 Credit
Accumulated Fund $70,870 Credit
Cash and Cash Equivalents $50,730 Debit
Debit $1,560,010 Credit $1,560,010
Additional Information
i) It is policy of the Assembly to adopt Accrual Basis in preparing its financial
Statements in compliance with Public
Public Sector accounting Standards (IPSAS) and Local Governance Act 2016,
(Act 936).
ii) Office Consumables in respect of Stationery and other items bought remained
unused during the year. The ending inventory amounted to $1,550,000.
iii) Property Rates received in respect of 2022 financial year amounted to $2,050,000.
iv) Salaries outstanding during the year amounted to $750,000 and other expenses
amounting to $1,105,000 paid in respect of 2022 financial year.
v) Consumption of fixed assets is charged on straight line basis for the year as
follows:
Asset Useful Life
Motor Vehicles 10 Years
Furniture, Fixtures & Fittings 5 Years
Building and Structures 50 Years
vi) Included in the Work in progress is an amount of $2,000,000 relating to a
Building which was completed, commissioned and put to use on 5 July 2021, after
an additional amount of $800,000 was spent to complete the pavement aspect of
the building. This expenditure has not yet been paid.
vii) Interest on Loans to staff is at the rate of 15% per annum and interest on long term
Loans is at the rate of 10%per annum
Required:
Prepare:
a) A Statement of Financial Performance for West Municipal for the year ended 31
December 2021.
b) A
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