- 20 Marks
Question
The following information has been extracted from the books of Egbin Electricity Board, a public sector-owned electricity generating company, for the year ended December 31, 2014:
| Item | N’000 |
|---|---|
| Accumulated Depreciation, January 1, 2014 | 45,224 |
| Sale of Electricity | 114,392 |
| Purchase of Electricity | 95,784 |
| Meter reading, billing, and collection | 1,624 |
| Non-Current Assets Expenditure | 84,102 |
| Debtors for electricity consumption | 12,006 |
| Training and welfare | 692 |
| Stock and work-in-progress | 1,234 |
| Rents, Rates, and Insurance | 2,126 |
| Electricity Estimated unread consumption | 7,222 |
| Administration and General Expenses | 1,476 |
| Electricity Council Grant | 21,556 |
| Preparation of Electricity Council’s Expenses | 362 |
| Bank Balance and Cash | 1,284 |
| Depreciation for the year | 3,634 |
| Hire purchase and deferred payment | 2,672 |
| Interest and Financing Expenses | 2,434 |
| Creditors and accrued liabilities | 13,926 |
| Profit on contracting and sale of appliance poles | 534 |
| Reserves | 23,116 |
| Rental of Meters Application | 556 |
| Distribution cost | 4,476 |
| Customer Service | 1,810 |
Required:
Prepare in vertical form the Statement of Financial Performance and Statement of Financial Position for Egbin Electricity Board for the year ended December 31, 2014.
Answer
Statement of Financial Performance for the Year Ended December 31, 2014
| Description | N’000 |
|---|---|
| Sales of Electricity | 114,392 |
| Less: Purchases of Electricity | (95,784) |
| Gross Profit | 18,608 |
| Profit on Contracting and Sale of Appliance Poles | 534 |
| Rental of Meter Applications | 556 |
| Total Profit (A) | 19,698 |
| Less: Expenditure | |
| Meter Reading, Billing, and Collection | 1,624 |
| Training and Welfare | 692 |
| Rent, Rates, and Insurance | 2,126 |
| Administration and General Expenses | 1,476 |
| Preparation of Electricity Council’s Expenses | 362 |
| Depreciation | 3,634 |
| Interest and Financing Expenses | 2,434 |
| Distribution Cost | 4,476 |
| Customer Services | 1,810 |
| Total Expenditure (B) | 18,634 |
| Net Income (A – B) | 1,064 |
Statement of Financial Position as at December 31, 2014
| Description | N’000 | N’000 |
|---|---|---|
| Non-Current Assets | ||
| At Cost | 84,102 | |
| Less: Accumulated Depreciation | 48,858 | |
| Net Book Value | 35,244 | |
| Current Assets | ||
| Stock and Work-in-Progress | 1,234 | |
| Debtors/Receivables | 12,006 | |
| Electricity Estimated Unread Consumption | 7,222 | |
| Hire Purchase and Deferred Payment | 2,672 | |
| Bank Balance and Cash | 1,284 | |
| Total Current Assets | 24,418 | |
| Total Assets | 59,662 | |
| Current Liabilities | ||
| Payables/Creditors and Accrued Liability | (13,926) | |
| Working Capital | 10,492 | |
| Net Total Assets | 45,736 | |
| Financed by: | ||
| Electricity Council Grant | 21,556 | |
| Reserves Brought Forward | 23,116 | |
| Retained Profit for the Year | 1,064 | |
| Total Equity and Liabilities | 45,736 |
- Topic: Public Sector Financial Statements
- Series: NOV 2015
- Uploader: Kwame Aikins