- 20 Marks
PSAF – L2 – Q11.4 – Preparation and presentation of financial statements for central government
Prepare the cash flow statement for Zamunda Central Government for 2024 with reconciliation notes.
Question
The Central Government of Zamunda: Cash flows statement for the year ended 31st December 2024
Prepare the cash flow statement for the Central Government of Zamunda for the year ended 31st December 2024, based on the following data:
| Cash flows from operating activities | GHC million |
|---|---|
| Corporate income tax | 38,000 |
| Custom and excise duties | 43,000 |
| Value added taxes | 45,000 |
| Multilateral grants | 16,000 |
| Income tax (PAYE) | 15,000 |
| Fee and charges for services | 10,000 |
| Dividend and other investment income | 7,000 |
| Bilateral grants | 12,000 |
| Fines, penalties and forfeitures | 9,000 |
| Established post salaries | (22,000) |
| Non-established post salaries | (20,000) |
| 13% SSF contribution for staff | (7,000) |
| Staff allowances | (8,000) |
| Administrative cost | (15,000) |
| Seminar and workshops | (12,000) |
| Training and capacity building | (6,000) |
| Foreign travelling cost | (5,000) |
| Repair and maintenance | (8,000) |
| Domestic debt interest paid | (12,000) |
| External debt interest paid | (12,000) |
| Payments for subsidies on utilities | (12,000) |
| Payment for subsidies on fuel | (12,000) |
| Community empowerment program | (12,000) |
| Support for social protection of aged widows | (12,000) |
| Statutory transfers | (12,000) |
| Other expenses | (12,000) |
| Cash flows from investing activities | GHC million |
|---|---|
| Recoveries of loans and advances | 8,000 |
| Payment for property, plant and equipment during year | (18,000) |
| Payments for infrastructure during year | (20,000) |
| Loans and advances granted during the year | (13,000) |
| Cash flows from financing activities | GHC million |
|---|---|
| External borrowing during the year | 30,000 |
| Domestic borrowing during the year | 20,000 |
| Repayment of external borrowing during the year | (10,000) |
Additional information for notes:
- Surplus of revenue over expenses for the year ending 2024: GHC 23,200 million
- Depreciation charged for the year: GHC 3,500 million
- Increase in inventories: GHC (1,500) million
- Taxes recoverable: GHC (16,200) million
- Accrued expenses: GHC 11,000 million
- Prepaid rent: GHC (5,000) million
W1 Taxes recoverable GHC million Corporate income taxes 3,000 Customs & excise duties 5,000 VAT 6,000 Personal Income Tax 4,000 Total taxes receivable 18,000 Less amount estimated as irrecoverable 1,800 Taxes recoverable 16,200 W2 Accrued expenses GHC million Domestic debt interest 3,000 External debt interest 4,000 Accrued salaries 4,000 Total accrued expenses 11,000 W3 Prepaid Rent GHC million Prepaid Rent 5,000 Include a reconciliation note for surplus/deficit to cash flows from operating activities.
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