Find Related Questions by Tags, levels, etc.
Below is a Trial Balance of Paja Teaching Hospital (PTH) under the Ministry of Health for the year ended 31 December 2023.
| Debit (GH¢000) | Credit (GH¢000) |
|---|---|
| Cash and Bank – GoG | 3,400 |
| Cash and Bank – IGF | 72,200 |
| Cash and Bank – Donor Funds | 210,400 |
| Undeposited Cash – IGF | 4,000 |
| Petty Cash | 100 |
| Investments | 2,000 |
| Debtors | 661,400 |
| Other Receivables | 17,700 |
| Withholding Tax | |
| Trust Funds | |
| Trade Payables | |
| GoG Subsidy – Employee Compensation | |
| GoG Subsidy – Goods & Services | |
| Development Partners Programmes Receipt | |
| Other Non-Operating Income | |
| Medicines & Pharmaceuticals | 433,900 |
| Surgical | 50,800 |
| Medical | 111,400 |
| Investigation | 140,900 |
| OPD | 238,400 |
| Obstetrics and Gynaecology | 135,300 |
| Dental | 8,300 |
| Pediatrics | 40,300 |
| Ear, Nose & Throat | 5,300 |
| Eye Care | 7,300 |
| Mortuary | 30,000 |
| Ambulance Fees | 300 |
| Ophthalmology | 3,000 |
| Physiotherapy | 3,300 |
| Examination Fees | 200 |
| Dialysis | 400 |
| Feeding | 30,400 |
| Employee Compensation – GoG | 3,912,500 |
| Goods & Services – GoG | 20,800 |
| Employee Compensation – IGF | 148,000 |
| Goods & Services – IGF | 978,500 |
| Capital Expenditure – IGF | 27,500 |
| Goods & Services – Partners Fund | 472,400 |
| Accumulated Fund | |
| Total | 6,530,900 |
| Inventory Type | Cost (GH¢000) | Replacement Cost (GH¢000) | Net Realisable Value (GH¢000) |
|---|---|---|---|
| Medicines (for resale) | 146,800 | 176,100 | 132,100 |
| Medical Consumables (For use on clients) | 29,400 | 33,800 | 30,800 |
| Office Consumables | 19,600 | 29,400 | 18,600 |
In compliance with IPSAS, the PFM Act, and the Government of Ghana Chart of Accounts, prepare:
a) A Statement of Financial Performance for Paja Teaching Hospital for the year ended 31 December 2023.
Find Related Questions by Tags, levels, etc.
i. Identify TWO provisions of Financial Regulations which guide against the delay in contract payments. (3 Marks)
ii. Enumerate TWO punishments each that can be meted out to a government official and a legal person in case of delay in payment of contracts executed. (4 Marks)
Find Related Questions by Tags, levels, etc.
a. The revised Local Government Financial Memoranda (1991) spells out the administrative guidelines, the existing checks and balances, and roles of officers in local governments.
Required:
Identify THREE objectives and FIVE contents of Local Government Financial Memoranda. (8 Marks)
b. Bureau of Establishments and Training of Waso State awarded a contract to one of its Government Business Entities (GBE), Unity Enterprises, for the supply of stationery for use in various MDAs in the State. The Bureau conducted the following transactions for the year ended December 31, 2020:
Required:
Record the above transactions as journal entries in the books of Bureau of Establishments and Training of Waso State.
Find Related Questions by Tags, levels, etc.
a. The following information relates to the accounts of Dovet State Government for the year ended December 31, 2022:
| Description | DR (N’M) | CR (N’M) |
|---|---|---|
| Land and buildings (cost) | 387,500 | |
| Long-term investments | 187,500 | |
| Equipment and furniture | 67,500 | |
| Accumulated depreciation: | ||
| – Land and building | 40,000 | |
| – Motor vehicles | 30,000 | |
| – Equipment and furniture | 21,250 | |
| Motor vehicles (cost) | 145,000 | |
| Federation account allocation | 287,500 | |
| VAT allocation | 87,500 | |
| Grants from Federal Government | 33,750 | |
| Internally generated fund | 97,500 | |
| Grant from donor agency | 25,000 | |
| Personnel emolument | 125,000 | |
| Maintenance of premises | 5,000 | |
| Consolidated Revenue Fund charges | 32,500 | |
| Overhead expenses | 25,000 | |
| Miscellaneous expenditure/income | 37,500 | 61,250 |
| Loan notes | 250,000 | |
| Current assets/liabilities | 38,750 | 36,250 |
| Consolidated Revenue Fund (CRF) | 81,250 | |
| Total | 1,051,250 | 1,051,250 |
Additional Information:
Required:
b. Financial statements provide information that meets a number of qualitative characteristics in financial reporting.
Required:
Discuss FOUR characteristics of financial reporting.
Find Related Questions by Tags, levels, etc.
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.
Find Related Questions by Tags, levels, etc.
a. Differentiate between unapplied mandate and uncredited cheques. (5 Marks)
b. The Account Officer of University of Igbokuenu, Abia, supplied the following information for Asejere Bank for the month ended March 31, 2020. On the same date, the balance as per the bank statement was a credit balance of N26,229,000, while the cash book showed a debit balance of N12,063,000.
The investigation carried out by the accounts officer revealed the following:
| Mandate No. | Beneficiary | Amount (N) |
|---|---|---|
| 0671420 | SolarTech | 90,000 |
| 0002418 | GreenLaud | 120,000 |
| 0021462 | S-Publishers | 15,000 |
Required:
i. Prepare a bank reconciliation statement for the period ended March 31, 2020. (10 Marks)
ii. Identify and explain FIVE challenges of bank reconciliation under the e-payment system. (5 Marks)
Find Related Questions by Tags, levels, etc.
The University of Okoko Consultancy Unit (Uniko Consult) provides training courses for staff, public and private individuals. The consultancy unit is currently collating information for its budget for the six months ending December 31, 2021. The following information is available:
(i) Provisional bookings for courses:
| July | Aug | Sept | Oct | Nov | Dec | |
|---|---|---|---|---|---|---|
| Number of courses | 0 | 2 | 4 | 3 | 4 | 4 |
| Average number of attendees per course | 0 | 16 | 8 | 16 | 8 | 12 |
No courses are run during the month of July. Uniko Consult requires intending participants to confirm their attendance in the week prior to the course, giving their credit card number as a guarantee. On average, 75% of provisional bookings are confirmed and therefore result in fee payment.
(ii) Course prices:
Each course lasts for three days, running from Friday to Sunday. The fee for each course is N120,000 per attendee. Any returning participant will be given a 25% discount on the fee. One in three of confirmed bookings is from a returning participant.
(iii) Personnel costs:
The courses are delivered by an experienced team of professors led by Emeritus Professor Omopinleola, who charges Uniko Consult N300,000 for each course. His assistant, Dr. Chukwuma, is paid a wage of N50,000 per course. Uniko Consult has several part-time support staff. Wages costs for July are only N100,000 per month, but every month thereafter amounts to N400,000. The consult is planning to increase wages by 5% from September. All staff are paid at the end of each month.
(iv) Property costs:
The University owns a Researchers’ Lodge, which includes an office, a kitchen, and two conference rooms. Uniko Consult rents the Researchers’ Lodge at a rental cost of N2,400,000 per annum, with rents being paid quarterly in advance on March 31, June 30, September 30, and December 31. However, the Consultancy Unit has received notice from the Bursar stating that, with effect from December 31, 2021, annual rental payments will increase by 5%.
(v) Food costs (Tea break and lunch):
All food items purchased are organic and delivered weekly by Uniko Farms. On the 5th of each month, Uniko Consult pays the bill for the previous month’s food deliveries. In December, Uniko Consult is also required to settle its bill for December due to the two-week holiday taken by Uniko Farm in January. The cost for food on each training course is N5,000 per attendee. However, inflation of 2% per month is expected from September onwards. Food costs for June 2021 are expected to be N110,000.
(vi) General overheads:
Uniko Consult’s annual running costs are N835,000, paid in ten equal instalments from April to January each year. Fuel costs of N420,000 per annum are paid through monthly direct debits. Due to a systems error, the direct debits from January to April failed, so the payment for July will include these outstanding amounts.
(vii) Capital expenditure:
Uniko Consult needs to replace three air conditioners by August at a cost of N180,000 each, with a 10% discount negotiated. The supplier allows the payment in two instalments—one in August and the other in October.
(viii) Bank account:
The balance on the Consultancy’s bank account is expected to be zero on June 30, 2021, but it has an adequate overdraft facility to cover any cash deficit.
(ix) Remittances:
The Consultancy Unit must remit 50% of its cash balance to the University’s account on a half-yearly basis.
Required:
a. Prepare a cash budget for each of the six months ending December 31, 2021.
Note: All workings should be rounded to the nearest N000. (20 Marks)
b. Enumerate the steps involved in Planning, Programming, and Budgeting Systems (PPBS). (7 Marks)
c. State and explain THREE characteristics of the performance budgeting system. (3 Marks)
Find Related Questions by Tags, levels, etc.
IPSAS 24 on Presentation of Budget Information in Financial Statements requires a comparison of budgeted amounts and the actual amount arising from execution of the budget to be included in the financial statements of entities. The standard also requires disclosure of an explanation of the reasons for material differences between the budget and actual amounts to ensure that public sector entities discharge their accountability obligations and enhance the transparency of their financial statements.
Ogoja State Government provided the following budget information for the year ended December 31, 2018.
Required:
Prepare a consolidated budget report for the year ended December 31, 2018.
Find Related Questions by Tags, levels, etc.
Ogogo Local Government is one of the 26 Local Governments in Alimosho state of
Federal Republic of Wazobia. The Local Government has adopted Treasury Single
Accounting (Direct method) and prepares its accounts using IPSAS accrual basis.
There has been wide spread fraud since the retirement of the Treasurer of the
council about two years ago. However, there was no adequate information to
suggest that there was fraud or misappropriation of funds. The Chairman invited
you to his office as the new Treasurer and handed over some of the financial data
from treasury department to you as detailed below:
The trial balance for the year ended December 31, 2017 is as follows:
The following transactions took place in the Office of the Treasurer of the Local
Government for the year ended December 31, 2018.
i. Listed below are the revenue and expenditure items for the year ended December 31, 2018
(ii) Code 1 is used as prefix for revenue, 2 for recurrent expenditure and 4 for
capital expenditure
(iii) Preliminary investigations carried out revealed the following irregularities,
which occurred and were discovered within the year:
• Included in the payments for the expenses under primary health care department were various duplicated vouchers amounting to N7million;
• There were some falsifications in the bills for items bought for the provision of water under other charges. The total discrepancies amounted to N3million.
(iv) The following agreed revenue demand notices were sent to the indigenes of the Local Government during the year.
(v) Included in the payments under works and housing is the cost of motor
vehicles of N25 million while medical equipment costing N35 million was
included in primary health care department expenses.
(vi) Included in the payments under works and housing is the cost of land
including construction of access roads, certificate of occupancy etc, amounting
to N100 million. The land was acquired by the Local Government and sold to
local prospective land owners at a cost of N520,000 per plot. The land consists
of 200 standard plots for the construction of houses of their choice. Only 150
plots were fully subscribed and paid for during the year.
(vii) Included in the payments under finance department is the cost of office
stationery of N25 million while the value of office stationery based on stock
sheet as at December 31, 2018 was N6.5 million.
viii) Capital grant from the State Government was received on December 31, 2017
and utilised in 2018.
(ix) The capital expenditure paid during the year was for the acquisition of land for the new Local Government Health Centers.
(x) Some of the accounting policies for depreciation adopted by the Government include the following depreciation rates;
Note: All non-current assets were purchased at the beginning of the
year.
(xi) The following expenses were incurred but not settled as at end of the year.
You are required to prepare:
a. The journal entries to record the loss of fund (3 Marks)
b. The statements of financial performance for year ended December 31, 2018
(15 Marks)
c. The statement of financial position as at December, 31 2018 (17 Marks)
d. Identify FIVE external controls and FIVE problems of Local Government in
Nigeria (5 Marks)
Find Related Questions by Tags, levels, etc.
The records of research work in the individual countries in the ‘third world’ are difficult to obtain, unlike in the advanced countries, where research work has been documented and published.
Required:
Discuss FIVE observations and FIVE features of a good system of public sector accounting in the developing countries as contained in the United Nations Manual on Government Accounting.
Find Related Questions by Tags, levels, etc.
In line with the Government’s efforts at promoting accountability and transparency, the Federal Government of Nigeria has adopted and is implementing the International Public Sector Accounting Standards (IPSAS). The IPSAS 16 specifically deals with Investment Property which could be land, building, or both. A public sector entity may be established to manage such property portfolios on a commercial basis. An example of such an entity could be a University or Local Government.
Required:
a. Discuss two reasons for holding investment property and the two methods of measurement as contained in IPSAS 16.
(8 Marks)
b. Illustrate with four examples each of investment property and non-investment property.
(12 Marks)
Find Related Questions by Tags, levels, etc.
Below is the Trial Balance of the Consolidated Fund for the year ended 31 December 2014.
Additional Information:
i) It is the policy of Controller and Accountant General to adopt the accrual basis of preparing the public accounts of the Consolidated Fund for the first time in compliance with the Financial Administration Regulation 2004 and the International Public Sector Accounting Standards (IPSAS). The effective date is 31 December 2014.
ii) The current Chart of Accounts based on the GFS 2001 is used in the classification of revenues and expenditures.
iii) Consumption of fixed capital charged on cost for the year has been computed as GH¢156,000,000.
iv) Direct tax revenues due to government but were not received at 31 December 2014 amounted to GH¢49,000,000.
v) An established post salary in arrears as a result of salary increment in the fourth quarter of 2014 was GH¢56,000,000 and goods and services outstanding at the end of the year amounted to GH¢12,000,000.
vi) The grant shown in the trial balance as expenditure represents a statutory transfer to the District Assembly Common Fund (DACF). Any arrears in the DACF should be treated as payable. The current rate of transfer is 7.5% on the amount received.
vii) Public debt interest of GH¢14,000,000 was due to creditors but was not paid as at 31 December 2014.
Required:
a) Prepare in a form suitable for publication and in accordance with the relevant Financial Laws and IPSAS:
i) Statement of Financial Performance of the Consolidated Fund for the year ended 31 December 2014.
ii) Statement of Financial Position of the Consolidated Fund as at 31 December 2014.
(Show all workings clearly)
b) Disclose any TWO significant accounting policies as part of the notes to your accounts, as much as the information provided will permit.
Find Related Questions by Tags, levels, etc.
Country X and Country Y are Sub-Saharan African Countries that attained independence around the same period. Presented below are the financial statements of the two countries.
Statement of Financial Performance for the year ended 31 December 2020:
| Item Description | Country X (GH¢ million) | Country Y (GH¢ million) |
|---|---|---|
| Revenues | ||
| Domestic tax | 39,675 | 25,500 |
| International trade tax | 27,300 | 31,995 |
| Non-tax revenue | 11,250 | 19,200 |
| Grants | 1,950 | 1,650 |
| Total revenue | 80,175 | 78,345 |
| Expenditure | ||
| Compensation for employees | 44,700 | 30,450 |
| Use of goods and services | 15,450 | 21,000 |
| Consumption of fixed capital | 360 | 420 |
| Exchange difference | 1,485 | 900 |
| Interest | 29,490 | 15,690 |
| Subsidies | 765 | 180 |
| Other expenses | 2,400 | 2,145 |
| Total Expenditure | 94,650 | 70,785 |
| Net Operating Result | (14,475) | 7,560 |
Other Information:
| Item Description | Country X | Country Y |
|---|---|---|
| Population | 30,000,000 | 22,500,000 |
| Gross Domestic Product (GDP) | GH¢ 217,500,000,000 | GH¢ 165,000,000,000 |
Statement of Financial Position as at 31 December 2020:
| Item Description | Country X (GH¢ million) | Country Y (GH¢ million) |
|---|---|---|
| Non-Current Assets | ||
| Property, plant, and equipment | 3,675 | 33,600 |
| Equity investment | 12,000 | 8,250 |
| Total Non-Current Assets | 15,675 | 41,850 |
| Current Assets | ||
| Receivables | 10,050 | 12,600 |
| Cash and cash equivalent | 7,050 | 27,000 |
| Total Current Assets | 17,100 | 39,600 |
| Total Assets | 32,775 | 81,450 |
| Funds and Liabilities | ||
| Accumulated Fund | (120,300) | 7,200 |
| Current Liabilities | ||
| Payables | 9,300 | 6,150 |
| Trust monies | 2,100 | 1,350 |
| Domestic debt | 24,000 | 6,750 |
| Total Current Liabilities | 35,400 | 14,250 |
| Non-Current Liabilities | ||
| Domestic debt | 54,000 | 27,000 |
| External debt | 63,675 | 33,000 |
| Total Non-Current Liabilities | 117,675 | 60,000 |
| Total Fund and Liabilities | 32,775 | 81,450 |
Required:
i) From the information provided, compute for the two countries respectively:
ii) Based on the result in question i), write a report discussing and analyzing the financial performance and financial position of the two countries. Include in your report the limitations of the analysis of the two countries. (4 marks)
Find Related Questions by Tags, levels, etc.
Below is the Trial Balance of the Consolidated Fund of Ghana for the year ended 31 December 2020.
| Item Description | DR (GH¢ million) | CR (GH¢ million) |
|---|---|---|
| Cash and Bank | 61,350 | |
| Established Post Salaries | 13,524 | |
| Non-Established Post Salaries | 4,016 | |
| Communications Service Tax | 5,144 | |
| PAYE | 6,940 | |
| Non-Tax Revenues | 2,312 | |
| Travel and Transport | 468 | |
| Administration Cost | 6,704 | |
| Conferences and Seminars | 2,510 | |
| Foreign Travel Cost | 1,490 | |
| Stationery Inventories | 20 | |
| Stationery Purchased | 220 | |
| Vehicles Income Tax | 2,316 | |
| Corporate Tax | 4,626 | |
| Grants | 1,150 | 2,516 |
| Customs and Excise Duties | 1,286 | |
| Subsidies for Consumption | 1,282 | |
| Subsidies for Production | 722 | |
| Value Added Tax | 7,716 | |
| Social Benefits | 760 | |
| State Protocol | 100 | |
| Allowance | 300 | |
| Domestic Debt Interest | 2,906 | |
| External Debt Interest | 3,482 | |
| Motor Vehicle | 4,800 | 1,920 |
| Equipment | 8,400 | 1,680 |
| Computers | 18,400 | 5,240 |
| Railway (Completed) | 5,000 | |
| Work in Progress | 400 | |
| Equity and Security Investment | 1,960 | |
| Loans and Advances | 1,120 | |
| Gold and Other Reserves | 1,620 | |
| Judgement Debt | 280 | |
| Treasury Bills | 22,240 | |
| Domestic Debt | 26,924 | |
| Payables | 34,844 | |
| External Debt | 45,726 | |
| Trust Fund and Deposits | 4,470 | |
| Other Expenditure | 1,800 | |
| Rent Receivable | 1,600 | |
| Accumulated Fund | 29,516 |
Total: 175,900, 175,900
Additional information:
i) It is the policy of the Controller and Accountant General to use Accrual Basis of Accounting in preparing the Public Accounts of the Consolidated Fund financial statements in compliance with the Public Financial Management Act, 2016 (Act 921), Public Financial Management Regulation 2019 L.I 2378, and the International Public Sector Accounting Standards (IPSAS).
ii) Inventory in respect of stationery outstanding as at 31 December 2020 cost GH¢18 million and has a current Replacement Cost of GH¢12 million. Meanwhile, the Net Realisable value of the Inventories is estimated at GH¢14 million. No market exists for unused inventories.
iii) An Established Post Salary in arrears as a result of a salary increment in the fourth quarter of 2020 was GH¢56 million, and Public Debt Interest outstanding as at 31 December 2020 amounts to GH¢14 million.
iv) Consumption of Fixed Capital is charged on a Straight-Line Basis for the year as follows:
| Asset | Useful life |
|---|---|
| Motor Vehicle | 5 years |
| Equipment | 10 years |
| Computers | 5 years |
| Railway | 20 years |
v) The Multilateral Partners have extended their Debt Forgiveness policy to the Government, which has resulted in the External Debt write-off amounting to GH¢4 billion in the year. However, this transaction has not been accounted for in the books.
vi) In the year 2019, GH¢8 billion was spent in acquiring Equipment to boost Government projects. However, these transactions were recognised in the accounts as Goods and Services Expenditure in the year 2019. This error has since not been rectified.
Required:
a) Prepare in a form suitable for publication and in accordance with the relevant Financial Laws and IPSAS:
Find Related Questions by Tags, levels, etc.
Implementation of the International Public Sector Accounting Standards (IPSAS) is a priority of Government in 2021, and the Controller and Accountant General is doing everything possible to ensure effective implementation. One major concern of the implementors is the measurement of public assets, as these assets are numerous, varied, and acquired in different ways. Nevertheless, assets need to be measured and recognised in accordance with IPSAS.
Required:
i) Explain the objectives of Measurement in Financial Reporting under IPSAS. (4 marks)
ii) Explain FOUR (4) Measurement Bases for assets in line with the Conceptual Framework of General Purpose Financial Report. (6 marks)
Find Related Questions by Tags, levels, etc.
Financial Reporting is not an end in itself. Its usefulness is by reference to the users of General-Purpose Financial Reports (GPFR) and their information needs. Until the information provided meets the information needs of the users, that information is worthless. Thus, accountants must be knowledgeable of the class of users of the information and the need for such information. The Conceptual Framework identifies the primary users whose information needs should be paramount in the preparation of GPFR.
Required:
Discuss FOUR (4) matters that the information provided in a GPFR helps primary users to assess an entity. (5 marks)
Find Related Questions by Tags, levels, etc.
Revenues of Local Government Authorities are often limited. Therefore, there is a need for the Assemblies to institute adequate internal controls over their revenues to improve their financial health.
Required:
State and explain FOUR (4) internal control systems that the Assemblies can put in place to effectively control their revenues. (4 marks)
Find Related Questions by Tags, levels, etc.
In accordance with Section 4 (2) (d) of the Public Financial Management Act 2016 (Act 921), the Minister of Finance shall manage Government property, Financial assets, Government debts, Government guarantees, and other contingent liabilities specified under Act 921. Paragraph 160 (2) of Public Financial Management Regulations, L.I 2378 of 2019 sets out measures the Finance Minister shall take upon recognizing that Government land or building is illegally occupied by an unauthorized person.
Required:
State and explain THREE (3) measures the Finance Minister shall take, upon recognizing that Government land or building of a covered entity is illegally occupied by an unauthorized person. (6 marks)
Find Related Questions by Tags, levels, etc.
Find Related Questions by Tags, levels, etc.
Elevate your professional expertise across key business domains with our comprehensive training programs
Follow us on our social media and get daily updates.
This feature is only available in selected plans.
Click on the login button below to login if you’re already subscribed to a plan or click on the upgrade button below to upgrade your current plan.
If you’re not subscribed to a plan, click on the button below to choose a plan