CBC is a government owned enterprise which is legislated to generate its own income which it uses to cover capital and recurrent expenditures. The legislations also give the government the powers to order CBC to transfer all or part of the income it generates to the consolidated fund as it deems fit. Outside of these powers, its government also provide CBC with monthly subventions to cover its recurrent expenditures based on CORIS RA budgetary demands and the legal allocations by the government.
For the 2017 and 2018, CBC used the cash basis to prepare its financial statements, although some of the accounting transactions were recorded using the accrual basis. It should be noted that the government instructed all of its agencies to use an accrual basis that is guided and recommended by IPSASs.
You were asked by to government to assist CBC with its accounting processes, which involved the recording, generation and preparation of accounting transactions and final accounts as stipulated by the IPSASs.
Working with a team of qualified and experienced accountants, you were able to prepare the following accounting information of CBC for the year ending December 2020:
|
Details |
Amount |
|
Dividend Received |
93,250 |
|
Loan payment |
143,000 |
|
Amounts Recovered |
194,000 |
|
Interest Expense |
200,000 |
|
Court Administration Fees |
240,000 |
|
Cost of Training |
275,000 |
|
Bar License |
300,400 |
|
Store Rent |
300,750 |
|
Fines and Penalties |
330,000 |
|
General Cleaning |
350,000 |
|
Sanitation |
370,000 |
|
Accumulated Fund (1/1/2020) |
370,600 |
|
Basic Taxes and Rates |
370,900 |
|
Allowances |
390,470 |
|
Equity Investment Acquired |
420,000 |
|
Royalties |
430,000 |
|
Accountancy and Consultancies cost |
470,000 |
|
Work-In-Progress |
490,000 |
|
Herbalist License |
530,370 |
|
Posts not on Establishment |
580,000 |
|
Other Expenditure |
600,000 |
|
Stool Land Revenue |
600,000 |
|
Transport and Travelling cost |
620,000 |
|
Utilities |
630,000 |
|
Hostel License |
630,920 |
|
Advances to Staff |
660,000 |
|
Local Park Fees |
720,400 |
|
Inventory and Consumables |
800,000 |
|
Special Services |
820,000 |
|
Property Rate |
820,900 |
|
Social Benefit |
840,300 |
|
Market Tolls |
870,000 |
|
Consumption of Fixed Assets |
960,000 |
|
Infrastructure, Plant and Equipment |
980,000 |
|
Permit Fees |
990,000 |
|
Proceeds from Sale of Equity |
990,320 |
|
Established Posts |
1,140,700 |
|
Development Bonds Issued |
1,300,000 |
|
Business Income |
2,300,600 |
|
Loans Received |
2,330,000 |
|
Local Fund |
2,930,000 |
|
Rent from Land and Building |
6,120,800 |
|
Central Government Salaries |
12,000,000 |
|
Cash and Cash Equivalent @ (1/1/2020) |
12,300,240 |
|
Parish Development Facility |
15,000,600 |
NOTES
Using the guidelines and formats set out in the applicable IPSASs, you are to:
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