UPSA-DEPARTMENT OF ACCOUNTING

Solution to Teaching and Practice Questions

Question 1

CONSOLIDATED FUND OF THE REPUBLIC OFGHANA

Statement of Financial Performance for the year ended 31/12/19.
Revenue Notes Actual Budget
GHS GHS
Direct tax 2 370000 400000
Indirect tax 3 530000 600000
Non-tax 4 140000 200000
Grants 5 174000 150000
1214000 1350000
Expenses
Compensation 6 519000 490000
Goods & Services 7 463000 350000
Consumption of fixed
capital 8 50000 -
Interest 9 1090000 800000
Grants 290000 260000
Subsidies 245000 240000
Social benefits 315000 250000
Other expenses - -
2972000 2390000
Deficit (1758000) 1040000

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 UPSA-DEPARTMENT OF ACCOUNTING

Statement of Financial Position as at 31/12/19

Assets Notes GHS GHS
NCA "000 "000
PPE 10 230000
Infrastructure 10 290000
Equity Investment 200000
720000
Current Asset
Loans& advances 11 186000
Cash and cash equivalent 110000 296000
1016000
Liabilities & Fund
Sundry creditors 90000
Domestic debt 1200000
External debt 1800000
3090000
Accumulated Fund 12 (2074000)
1016000

WORKINGS

1. Accounting Policies
The following accounting policies have been applied to the preparation of the financial
statements.
a) Basis of Accounting. The financial statement has been prepared using the accrual
basis of accounting.
b) Consumption of fixed capital. The consumption of fixed capital has been charged
using straight-line method in accordance with fixed asset policy of Government.
c) Cost. Historical cost measurement has been applied to the assets of the entity.
d) Compliance with IPSAS and PFM Laws. The financial statements have been
presented in accordance with the current IPSAS and the PFM Act 2016.
2. Direct Taxes GHS
Corporate taxes 200000
Personal Income tax 120000
Capital gain taxes and sundries 50000
370000

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 UPSA-DEPARTMENT OF ACCOUNTING

3. Indirect Taxes GHS

Taxes on general goods and
services 180000
Customs 250000
Communication Service Tax 100000
530000

4. Non tax revenue GHS

Fees, fines and penalties 80000
Investment income 20000
Royalties 40000
140000
5. Grants GHS
Grants b/f 150000
Grants in kind 24000
174000

6.Compensation GHS
Established post 240000
Casual labor 60000
13% SSC 26000
Gratuity and end of service
benefit 168000
Probation 25000
519000

7.Goods and Services GHS

T&T 70000
Repairs and Maintenance 50000
State Protocol 180000
Independence Day Celebration 205000
Seminar& conferences 30000
Donation in kind 24000
Repairs and maintenance in
advance (96000)
463000

8.Consumption of fund
capital GHS
PPE 20000
Infrastructure 30000
50000

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 UPSA-DEPARTMENT OF ACCOUNTING

9.Interest expense GHS

Domestic debt interest 500000
External debt interest 580000
1090000

10.Non-Current Asset Schedule

Cost PPE Infrastructure Total
GHS GHS GHS
Bal b/f 300000 400000 700000
Depreciation
Accumulated depreciation 50000 80000 130000
Current depreciation 20000 30000 50000
70000 110000 18000
Carrying amount 230000 290000 520000

11.Advances GHS
Per TB 90000
repairs and maintenance in
advance 96000
186000

12.Accumulated Fund GHS

Bal b/f (316000)
Deficit (1758000)
(2074000)

13.Sundry Creditors GHS

Bal b/f 80000
Domestic Interest due 10000
90000

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 UPSA-DEPARTMENT OF ACCOUNTING

CASH FLOW STATEMENT OF THE CONSOLIDATED FUND FOR THE YEAR

ENDED 31ST DECEMBER 2019

Cash flow from operating activities GHc'000 GHc'000

Direct tax 1,200,000
Indirect tax 1,300,000
Grants 400,000
Non tax 120,000
Compensation for employees (1,000,000)
Interest (220,000 +240,000) (460,000)
Goods and services (750,000)
Grants (200,000)
Subsidies (60,000)
Social benefit (70,000)
Other benefits (20,000)
Net cash flow from operating (740,000)
Cash flow from investing
Loan (90,000)
Advances (150,000)
Recovery of loan 30,000
Recovery of advance 20,000
Equity investment (600,000)
Other investments (300,000)
Sale of equity 200,000
Sale of other investment 100,000
Motor vehicle (250,000)
Sale of Motor vehicle 100,000
Construction of bridges (800,000)
Inventory (40,000)
President aircraft (900,000)
Net cash flow from investing (2,680,000)
Cash flow from financing
Domestic borrowing 1,800,000
External borrowing 2,000,000
Repayment of domestic debt -450,000
Repayment of external debt -500,000
Net cash flow from financing 2,850,000
Net decrease in cash and cash equivalent (570,000)
Cash and cash equivalent at 1/1/2016 140,000
Cash and cash equivalent at 31/12/2016 (430,000)

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 UPSA-DEPARTMENT OF ACCOUNTING

Question 3
Revenue and Expenditure Returns for the 4th Quarter of 2019.
Current Previous Cumm Current Previous Cumm
Items Warrant Warrant Warrant Payment Payment Payment Balance
Compensation 125000 365000 490000 130000 352000 482000 8000
Goods&Services 70000 200000 270000 75000 215000 290000 -20000
Non financial
Assets 80000 270000 350000 70000 255000 325000 25000
Total 275000 835000 1110000 275000 822000 1097000 13000

QUESTION 4
Department of Tourism
Statement of Final Performance for the year ended 31/12/19

Revenue Notes GHS

"000
GoG 2 300000
IGF 3 50000
350000
Expenses
Compensation of employees 4 107000
Goods and Services 5 89700
Consumption 6 52500
Other expenditure 8000
257200
Surplus 92800

Statement of Budget Information in Comparison with the Budget for the year
ended 31/12/19
Revenue Note Actual Budget Variance
GHS GHS GHS
GoG 2 300000 400000 (100000)
IGF 3 50000 45000 5000
350000 445000
Expenses
Compensation of employees 4 107000 100000 (7000)
Goods and Services 5 89700 80000 (9700)
Consumption 6 52500 - -
Other expenditure 8000 5000 (3000)
257200 185000
Surplus 92800 260000

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 UPSA-DEPARTMENT OF ACCOUNTING

Statement of Financial Position as at 31/12/19

Assets Notes GHS GHS
NCA
PPE 6 125000

Current Assets
Inventory 1800
Receivables 4000
Fixed Deposits 2000
Loan 30000
Advances 10000
Cash and Bank 8000 55800
160800
Liabilities and Accumulated Fund
Payables 32000
Accumulated fund 1288000
160800

1. Accounting Policy
Complete the accounting policies section.

2. GoG receipt GHS

Compensation 100000
Goods and serv. 80000
Assets 120000
300000

3. IGF GHS
Per TB 46000
revenue
receivable 4000
50000
4.Compensation of employees GHS
Established post 50000
Casual and daily labour 10000
End of service benefits 20000
13% SSC 10000
Travel allowance 9000
Probation 8000
107000

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 UPSA-DEPARTMENT OF ACCOUNTING

5.Goods and GHS GHS

services
T&T 15000
General cleaning 25000
Office Supplies 10000
Closing inventory (1800) 8200
Utilities 5000
Arrears 3000 8000
Seminar and conferences 20000
Foreign travel 5000
Insurance 2000
Bank charges 500
897000

Motor
NCA Schedule Equipment Vehicle Furniture Total
Cost 50000 100000 80000 230000
Depreciation
Accumulated consumption 10000 32500 30000 72500
For the year 12500 20000 20000 52500
22500 52500 50000 125000
Carrying amount 27500 47500 30000 105000

6. Payable GHS
per TB 29000
Utility 3000
32000

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 UPSA-DEPARTMENT OF ACCOUNTING

QUESTION 5

GA Regional Hospital
Statement of Financial Performance for the year ended 31st Dcecmber,2019
Revenue Note GHS
GoG Subvention 1,200,000
IGF 2 1,105,000
2,305,000
Expenses
Compensation 3 1270000
Goods & Services 4 1141000
Consumption of fixed capital 350000
Interest 20000
Other expense 15000
2796000
Deficit 491000

GA Regional Hospital
Statement of Budget Information in Comparison with Actual
for the year ended 31st December,2019
Revenue Note Budget Actual Variance
GHS'000 GHS'000 GHS'000
GoG 2000000 1200000 -800000
IGF 2 1000000 1105000 105000
3000000 2305000
Expenses
Compensation 3 1250000 1270000 -20000
Goods &Services 4 700000 1099000 -399000
Consumption of fixed capital 0 350000 -
Other expense 10000 15000 -5000
1982000 2754000

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 UPSA-DEPARTMENT OF ACCOUNTING

GA Regional Hospital
Statement of Financial Position as at 31st December,2019
Assets Notes GHS GHS
NCA "000 "000
PPE 5 2450000
CA
Inventory 36000
Receivables (250000+35000) 60000
Loans 90000
Fixed Deposit 30000
Bank & Cash 12000 228000
2678000
Liabilities &Fund
Payable 142000
Bank loans 200000
342000
Accumulated Fund 2336000
2678000

Workings
1. Accounting Policy
Disclose relevant accounting
policies here

2.Retained IGF GHS

"000
Outpatient 120000
Impatient 350000
Drugs & Medication 560000
Investment Income 6000
NHIS Claims 35000
Other Service 34000
1105000

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 UPSA-DEPARTMENT OF ACCOUNTING

3.Compensation of Employees GHS

"000
Established post salaries 850000
Casual labour 70000
Extra duty allowance 250000
Other allowances 100000
1270000

Goods and Services GHS GHS

"000 "000

T&T 45000
Seminar and conferences 80000
Consulting specialist 50000
General cleaning 10000
Clinical Consumables 160000
Operating expense 430000
Purchase of drugs 300000
Add Inventory of drugs 60000
Less closing inventory -36000 324000
Outstanding ECG bill 42000
1141000

5. PPE Schedule
GHS’000
Cost 3500000
Depreciation
Bal b/f 700000
For the year 350000
1050000
Carrying Amount 2450000

6.Accumulated Fund GHS

Bal b/f 2827000
Deficit -491000
2336000

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 UPSA-DEPARTMENT OF ACCOUNTING

QUESTION 6
Poton University
Statement of Financial Performance for the year ended 31/12/19
Revenue Notes GHS
"000
GoG subvention 280000
IGF 1 1290200
1570200
Expenses
Compensation of employees 2 460000
Goods and
Services 3 162500
Consumption of
FC 4 97000
Other expenses 17600
Interest 12000
749100
Surplus 821100

Poton University
Statement of Financial Position as at 31/12/19
Asset Notes GHS GHS
NCA "000 "000
PPE 4 1,036,000
CA
Inventory 5 6000
Receivables 90200
Bank and cash 5000 101,200
Total Assets 1137200

Liabilities &Fund
Sundry Creditors 140000
Bank loans 125000
Accumulated fund 872200
1137200

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 UPSA-DEPARTMENT OF ACCOUNTING

WORKINGS

1. IGF GHS
"000
Tuition fees 600200
Consultancy revenue 400000
Other revenues 210000
Fees due 80000
1290200

2. Compensation of
employees GHS
"000
Salaries 380000
Casual labour 40000
Book&research allowance 40000
460000

3.Goods and services

Admin expenses 75000
General expenses 30000
Training and seminar 10500
T&T 18000
Educational materials 35000
unused materials (6000) 29000
162500

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 UPSA-DEPARTMENT OF ACCOUNTING

4.NCA Schedule
Motor
Premises Vehicle F&F Equipment Total
GHS"000 GHS"000 GHS"000 GHS"000 GHS"000
Cost 950000 120000 100000 80000 395000
Depreciation
Bal b/f 55000 20000 22000 20000 117000
For the year 47500 24000 5500 20000 97000
102500 44000 27500 40000 214000
Carrying amount 847500 76000 72500 40000 1036000

5. Receivable GHS
"000
Bal b/f 10200
Fees due 80000
90200

6. Accumulated
Fund GHS
Bal b/f 51100
Surplus 821100
872200

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 UPSA-DEPARTMENT OF ACCOUNTING

QUESTION 7

Talensi Municipal Assembly

Statement of Financial Performance in Comparison with the Budget Information
for the year ended 31/12/19
Revenue Note Budget Actual
GHS"000 GHS"000
Decentralized Transfer 2 980000 978000
IGF 3 32030 32530
Donation(1000bags@40) 0 40
1012030 1010570
Expenses
Compensation 4 21600 23100
Goods and Services 5 8150 5150
Consumption of fixed
capital 6 0 18170
Other expenses 4000 0
33750 46420
Deficit 964150

Talensi Municipal Assembly

Statement of Financial Position as at 31/12/19
Assets Note GHS"000 GHS"000
NCA
PPE 6 128930
Work -in-progress(870000+40) 870040
998970
CA
Fixed Deposit 450
Loans & Advances 130 580
Total Assets 999550

Liabilities &Fund
Payable 7 2000
Accumulated Fund 997550
999550

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 UPSA-DEPARTMENT OF ACCOUNTING

WORKINGS

1. Accounting Policy

2.Decentralised Transfer GHS"000

Established post salaries 20000
DACF 844000
District Development Facility 54000
Special sanitation grant from govt 60000
978000

3.IGF GHS"000 GHS"000

Licenses
Entertainment 850
Vehicles 1250
Hawkers 280 2380
Income taxes 4600
Fees &charges:
Market tolls 800
Market store fees 14000
Lorry park 950
Advertisement 600 16350
Fines &penalties 80
Rates:
Basic 320
Property 8800 9120
32530

4.Compensation GHS"000
Established post salaries 20000
Casual labour 1200
Arrears for casual labour 300 1500
Allowances for
staff 1600
23100

5.Goods and Services GHS"000

T&T 500
Office
consumables 400
Repairs &Maintenance 350

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 UPSA-DEPARTMENT OF ACCOUNTING

Seminars and Conferences 680

Town hall meeting 120
Special audit fees 100
Assembly members allowances 2400
Electricity outstanding 600
5150

6.NCA Schedule
Motor
vehicle Building F&F TOTAL
GHS"000 GHS"000 GHS"000 GHS"000
Cost 57000 95400 8000 160400
Depreciation
Bal b/f 57000 6400 1200 13300
For the year 11400 4770 2000 18170
17100 11170 3200 31470
Carrying
Amount 39900 84230 4800 128930

7.Payables GHS"000
Bal b/f 1100
Casual labour 300
Electricity 600
2000

Accumulated
Fund GHS"000
Bal b/f 33400
Surplus 964150
997550

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