You were transferred to the Expenditure Unit of the Accountant General of your country. The Unit is responsible for the consolidation of Government accounts. Your manager asked you to analyze the information provided in the following Trial Balance of the Consolidated Fund for the year ended December 31, 2018. Transaction Debit $ Million Credit $ Million Salaries – Central Gov’t 6,760 Salaries – Local Gov’t 2,010 Salaries – Agencies 230 Administrative cost 3,350 Conferences & seminars 1,260 Foreign travel 750 Social benefits 1,040 Domestic debt interest 1,450 Foreign debt interest 1,740 Purchase of vehicles 250 Purchase of equipment 410 Construction of infrastructure 560 Cash and bank 2,470 PAYE 7,330 Corporate tax 5,010 VAT 2,320 Fines 150 Fees 310 Fuel levy 700 Grants 430 Treasury bills 11,120 Bonds 13,460 Euro Bond 7,460 Bi & multilateral debts 19,660 Other expenditure 910 Accumulated Fund 44,760 67,950 67,950 Additional information VAT of $50M was due to the Government but was not received as at December 31, 2018 A grant agreement signed in 2017 by the Government and the Embassy of another country for the purchase of various medical supplies for a Health Centre was received and paid for in November 2018 Using the information from the Trial Balance and additional information, prepare Statement of Financial Performance for the Consolidated Fund for the year ended December 31, 2018

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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You were transferred to the Expenditure Unit of the Accountant General of your country. The Unit is responsible for the consolidation of Government accounts. Your manager asked you to analyze the information provided in the following Trial Balance of the Consolidated Fund for the year ended December 31, 2018.

Transaction	Debit $ Million	Credit $ Million
Salaries – Central Gov’t	6,760
Salaries – Local Gov’t	2,010
Salaries – Agencies	230
Administrative cost	3,350
Conferences & seminars	1,260
Foreign travel	750
Social benefits	1,040
Domestic debt interest	1,450
Foreign debt interest	1,740
Purchase of vehicles	250
Purchase of equipment	410
Construction of infrastructure	560
Cash and bank	2,470
PAYE		7,330
Corporate tax		5,010
VAT		2,320
Fines		150
Fees		310
Fuel levy		700
Grants		430
Treasury bills		11,120
Bonds		13,460
Euro Bond		7,460
Bi & multilateral debts		19,660
Other expenditure	910
Accumulated Fund	44,760
	67,950	67,950

Additional information

VAT of $50M was due to the Government but was not received as at December 31, 2018
A grant agreement signed in 2017 by the Government and the Embassy of another country for the purchase of various medical supplies for a Health Centre was received and paid for in November 2018

Using the information from the Trial Balance and additional information, prepare Statement of Financial Performance for the Consolidated Fund for the year ended December 31, 2018

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