b) Mpuntuo Municipal Assembly (MMA) is a subnational level institution in Ghana which is in the...

 

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b) Mpuntuo Municipal Assembly (MMA) is a subnational level institution in Ghana which is in the process of preparing its financial statements for year ended 31st December, 2019. Below is the Assembly's most recent Trial Balance as at 31st December 2019. Property rates Ceded revenue Share of district assembly common fund Hawkers licenses Training workshop Fixed deposit Contract retention Tax withholdings Advances to staff Contract mobilization Bank and cash Loans Established post Assemblymen allowances Printing and publication Rent Repairs and maintenance Rehabilitation of facilities Construction works completed Construction works in progress Purchase of furniture and fittings Purchase of computer and accessories Consultancy Conference and seminar cost Finance charges Allowances to staff Casual labour Donor support Market tolls Lorry parks Court fines and penalties Share of stool land revenue Basic rates Hiring of equipment and facilities Market store rent GHc'000 GHc'000 48,000 29,000 68,000 2,000 2,500 15,000 6,000 59,800 20,000 1,200 52,000 1,300 600 200 800 4,500 240,000 125,000 30,000 1,250 350 670 140 34,300 4,320 32,000 3,500 95,450 86,350 45,000 11,120 14,700 86,200 1,600 1,640 Rent of residential accommodation Utilities and office consumables Accumulated fund Foreign travels cost and per diem Special social interventions Interest on fixed deposits GCB Loan 2,900 860 380 2,200 Historical Cost Replacement Cost Net Realisable value 58,810 6,500 12,000 604.070 604.070 Additional information The following additional information has been made available: 1. The fixed deposit amounting to GHc 15million was made with Sika Bank on July 1st, 2019 at the rate of 20% per annum. Interest is receivable every three months. The last quarter interest is yet to be received. 2. Consumption of fixed capital on all non-current assets are charged at 20% per annum on a straight line basis. 3. During the year, newly constructed market stores were let out to traders who paid two years rent in advance on July 1st 2019 and this rent will expire on June 30th, 2021. 4. Revenues are classified in line with the provisions of the Local Governance Act, 2016, (Act 936). 5. Inventories of stationery and printing materials for use available at the end of the year was as follows: GHc¹ million 800 600 500 You are required to prepare, in a format suitable for external use, and in accordance with the Public Financial Management Act, 2016 (Act 921), the Local Governance Act, 2016 (Act 936) and the International Public Sector Accounting Standards the following: i) A Statement of Financial Performance for the year ended 31st December, 2019; ii) A statement of Changes in Net Asset and Equity for the year ended 31st December, 2019; iii) A Statement of Financial Position as at 31st December, 2019; and iv) Notes to the accounts. (Total: 30 marks) b) Mpuntuo Municipal Assembly (MMA) is a subnational level institution in Ghana which is in the process of preparing its financial statements for year ended 31st December, 2019. Below is the Assembly's most recent Trial Balance as at 31st December 2019. Property rates Ceded revenue Share of district assembly common fund Hawkers licenses Training workshop Fixed deposit Contract retention Tax withholdings Advances to staff Contract mobilization Bank and cash Loans Established post Assemblymen allowances Printing and publication Rent Repairs and maintenance Rehabilitation of facilities Construction works completed Construction works in progress Purchase of furniture and fittings Purchase of computer and accessories Consultancy Conference and seminar cost Finance charges Allowances to staff Casual labour Donor support Market tolls Lorry parks Court fines and penalties Share of stool land revenue Basic rates Hiring of equipment and facilities Market store rent GHc'000 GHc'000 48,000 29,000 68,000 2,000 2,500 15,000 6,000 59,800 20,000 1,200 52,000 1,300 600 200 800 4,500 240,000 125,000 30,000 1,250 350 670 140 34,300 4,320 32,000 3,500 95,450 86,350 45,000 11,120 14,700 86,200 1,600 1,640 Rent of residential accommodation Utilities and office consumables Accumulated fund Foreign travels cost and per diem Special social interventions Interest on fixed deposits GCB Loan 2,900 860 380 2,200 Historical Cost Replacement Cost Net Realisable value 58,810 6,500 12,000 604.070 604.070 Additional information The following additional information has been made available: 1. The fixed deposit amounting to GHc 15million was made with Sika Bank on July 1st, 2019 at the rate of 20% per annum. Interest is receivable every three months. The last quarter interest is yet to be received. 2. Consumption of fixed capital on all non-current assets are charged at 20% per annum on a straight line basis. 3. During the year, newly constructed market stores were let out to traders who paid two years rent in advance on July 1st 2019 and this rent will expire on June 30th, 2021. 4. Revenues are classified in line with the provisions of the Local Governance Act, 2016, (Act 936). 5. Inventories of stationery and printing materials for use available at the end of the year was as follows: GHc¹ million 800 600 500 You are required to prepare, in a format suitable for external use, and in accordance with the Public Financial Management Act, 2016 (Act 921), the Local Governance Act, 2016 (Act 936) and the International Public Sector Accounting Standards the following: i) A Statement of Financial Performance for the year ended 31st December, 2019; ii) A statement of Changes in Net Asset and Equity for the year ended 31st December, 2019; iii) A Statement of Financial Position as at 31st December, 2019; and iv) Notes to the accounts. (Total: 30 marks)

Answer rating: 100% (QA)

i STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 31ST DECEMBER 2019 Income Property rates GHc48000 Ceded revenue GHc29000 Share of district assembly common fund GHc68000 Hawkers licenses GHc200... View the full answer