UNIVERSITY OF CAPE COAST SCHOOL OF BUSINESS DEPARTMENT OF ACCOUNTING ACC303:

PUBLIC SECTOR ACCOUNTING 2022/2023 ACADEMIC YEAR

Question 2
The following are the balances extracted from the Consolidated Fund of the Public Accounts for
the year ended 31st December, 2018.
Debit Credit
GHS GHS
10% Reduction in Ministers' Salaries 563450
Accumulated Surpluses (1/1/2018) 718380
Advances and Receivables 300820
Allowances to Employees 280000
Cash and Bank Balances 9804490
Consumption of Fixed Assets 1239730
Customs and Other Import Duties 2907940
Deposits and Other Trust Monies 18762060
Domestic Debt 118597940
Domestic Debt Interest 201000
Equity Investments 58098760
Established Post-Salaries 4004000
Excises 464500
External Debt 161415740
External Debt Interest 418860
Free School Uniforms and Sandals Cost 343390
Free SHS Programme Cost 112543120
General Taxes on Goods and Services 1325320
Gold Reserves 39737660
Grant 140550
Infrastructure, Plant and Equipment 10144030
Leap Programme Cost 330600
Long term Receivables 14183080
Materials and Office consumables 587630

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 National Pension Contribution 454400
Non-Established Post
Salaries 2000520
One-District-One-Factory Expenses 1252000
Other Direct Taxes 491190
Other Expenses 206620
Other revenue 254640
Payables 6055220
Rentals, Travel and Transport 208050
Revenue from other Exchange Transactions 5261250
School Feeding Programme Cost 152500
Short-term Borrowings 56499110
Taxes on Goods and Services 1325320
Taxes paid by Companies and Enterprises 678920
Taxes paid by individuals 4052180
Training, Seminar and Conference Cost 271250
Transfers 1000500
Utilities 172800
Village Dam Cost 62054500
Work-in-Progress 61524400
380514210 380514210

Required:
a) Prepare Consolidated Fund Statement of Revenue and Expenditure for the year ended
31st December, 2018.
st
b) Prepare Statement of Financial Position as at 31 December 2018.

Question 3
st
The following trial balance relate to the Consolidated Fund of the Government of Ghana for 31
December, 2018.
DR CR
PAYE( Rev..Dir tax) 3,700,000
General Taxes on Goods and Services(Exp G&S) 2,100,000
Corporate Income Tax(Dir.Tax) 3,800,000

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Excises(Indir.Tax) 286,336
Customs & Other Import Duties(indir.Tax) 5,275,417
Taxes on Exports(Indir.Tax) 318,550
Taxes on Petroleum Products(Indir Tax) 111,742
Programme Grant(Rev Grant) 105,134
Project Grant(Rev Grant ) 790,000
Property Income(Non-tax rev) 964,197
Sales of goods and services(Non tax rev) 481,839
Fines, penalties and forfeiture(Non tax rev)
34,787
NHIL: SSNIT( Ind tax rev) 218,198
NHIL: Domestic and Imports(Indir tax) 750,000
Bilateral Loans(liability LTB) 505,000
Multilateral Loans(liabilityLTB) 934,000
Domestic Commercial Loans(Liability LTB) 107,866
External Commercial Loans(Liability LTB) 121,951
Treasury bills issued(Short term t bill) 330,967
Treasury bills redeemed(short term t bill) 300,100
Reserves 31/12/17( contributed by ) 2,013,075
Compensation of Established post(Exp comp) 10,032,347
Compensation of Non established
post(Exp.comp) 3,882
Allowances(Exp.comp) 265,682
13.5% SSF Contribution(Exp.comp) 680,224
Gratuity(Exp.comp) 358,505
Pension(Exp. Comp) 639,360
End of Service Benefit (Exp.Comp) 54,477
Materials and Office consumables( Exp G$S) 600,250
Utilities(Exp G$s) 169,136
General Cleaning( Exp G$s) 3,558
Rentals(Exp G$s) 33,450
Travel and Transport(Exp G$S) 190,164
Repairs and Maintenance(Exp G$S) 212,033
Training, Seminar and Conference(Exp G$S) 304,911
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Consultancy Expenses(Exp.G$S) 243,877
Other Charges and Fees( Exp.G$s) 157,284
Special and Emergency Services(Exp.G$S) 8,672
Statutory transfers(Exp it own) 71,200
Property, Plant and Equipment(Sofp Non fin
asset) 1,280,366
Work-in-Progress(Non financial asset) 493,308
Intangible Asset( non-current it own) 6,746
Interest Expense( Exp on it own) 75,800
Government Subsidies(Exp on it own) 86,750
Foreign Exchange Reserve(contri.by) 105,000
Social Benefits(Exp on its own) 4,802
Other Expenditure(other Exp) 401,000
Loan Repayment(other Exp) 1,920,000
Other Payments(other Exp) 280,000
Equity Investment(Asset Financial) 94,000
Bond Acquisition(financial Asset) 1,739
Treasury Main Account(Contributed by) 7,309,246
MDA Sub-CF Accounts(Current Asset) 633,220
Regional Sub-CF Accounts(liability) 812
MMDA Sub-CF Accounts(current Asset) 121,780
Tax Revenue Accounts( Asset) 1,538,513
Non-Tax revenue Accounts(liability) 15,956
Special Accounts Balances(Current asset) 4,778,858
Domestic Commercial Banks balance( current
asset) 44,009
Vehicle Advances(Asset-advances and loan) 34,401
Special Advances(Asset-adv and loan) 327
Salary Advances(Asset adv and loan) 257
Loans to Government Workers( advances $
loan) 401,982
Payables(liability) 584,985
Gold Reserves(Financial Asset) 1,500,840
Infrastructure(Non financial asset) 4,254,688
Trust Monies(liabilities$ 1,317,440
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 32,282,498 32,282,498

Additional Information
a. In the year 2018, the government of Ghana recovered the following amounts of loans and
advances:
Loans recovery GHS10,229.00
Advances recovery GHS5,384.00
b. It is estimated that an amount of GHS431.982.00 should be written off for the year 2018
as consumption of fixed assets.
Required:
i. Prepare the income and expenditure accounts of the government of Ghana for the year
st
ended 31 December 2018; and
ii. The statement of financial position as at that date.

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 Question 4
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The following balances represent the trial balance of KUMI Municipal Assembly as at 31
December, 2018.
GHS '000
DACF Allocation R-grant 1,600
Property rate R-rate 442.5
Fixed Deposit Account sofp-FA 100
Vehicle purchased sofp-nonFA 280
Investment in shares sofp-FA 400
Rent income Revenue 17
Electricity & Water bill Exp-G&S 18.4
Telephone Exp-G&S 21.8
Road user fee R-fees 23.4
Investment income Revenue 60.35
Voucher Payable sofp-liab 73
Salaries and Wages Exp-comp 166.7
Vehicle advance sofp-CA 130.65
Retention money sofp-liab 24.71
Personnel Salary Allowance Exp-comp 45.8
Cash at Bank sofp-CA 36.5
Petty cash sofp-CA 10.4
Stationery Exp-G&S 50.1
Basic rate R-rate 50
Meeting allowance E-comp 31.8
Market fees R-fees 20.6
Travelling and Transport E-G&S 18.5
CR-SSF Contribution sofp-liab 7.15
Equipment sofp-nonFA 22.5
Accumulated Fund Balance contributed by 227.04
Poverty alleviation E-socialB 1,212.60

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The following information is relevant:
i. Stock of unused stationery amount to GHS 22,590; unpaid bills, water & electricity and telephone
are respectively GHS1, 480 and GHS 520. less unused frm stat.Amt, as CA(inven), add to
bill and add to CL,same for E&T st
ii. Only 80% of the Common Fund has been received from the Administrator as at 31
December, 2018. 2000(100%) would be recorded in the revenue and 400(20%) would be debtor insofp
iii. The district expects revenue of GHS 18,400 from court fines and charges of cases pending
at the district court at the year end. R- fines,sofp rev owings CA
iv. The Assembly adopts accrual concept in preparing its financial statement in line with
IPSAS.
v. Ignore consumption of fixed capital.
Required:
i. Prepare Revenue and Expenditure Account for the year ended 31 December, 2018.
st
ii. Prepare the Statement of Financial Position as at 31 December, 2018.

Question 5
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The list of balances extracted from the books of Tayoo District Assembly as at 31 December,
2018.
GHS
Cash & Bank sofp-CA 5,181,992
Property rate R-rate 6,898,908
Penalties received R-fees 7,800
Licenses & fees R-fees 3,308,592
Basic rate R-rate 1,600,000
Time merchants License fees R-fees 1,400,000
Fines
R-fees 928,500
Water rates R-rate 841,350
Market fees & rent R-fees 132,000
Sundry revenue Revenue 5,682,950
Construction of educational facilities sofp-NFA 5,000,000
Repairs to market facilities Exp-Repairs 1,600,000
Parks and recreational costs Exp-G&S 1,480,740
Wages & salaries E-Comp 382,800
Remuneration to Assembly Members E-comp 7,520,000
Plant & Equipment purchased sofp-NFA 7,000,000

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 Interest on investments R- nontax 1,000,000
Health and Welfare costs Exp- Social 2,191,260
Administration costs E-G&S 3,010,500
Other recurrent expenditure Exp 12,500,000
Trade earnings Rev 800,000
Receipts from central government R 20,000,000
Sundry expenses Exp 29,640
Investment-fixed deposits sofp-FA 7,000,000
Staff & other advances sofp-CA 1,563,750
Creditors sofp-Liab 957,500
Loans-Youth in agriculture sofp-FA 75,000
District Development Bond issued sofp-Lia 1,800,000
Interest payments to Bondholders E-stat 200,000
Repairs & Maintenance of schools E-repairs 1,500,000
District Assemblies Common Fund R-grant
Receipts 4,000,000
Net accumulated results sofp-contributed by 6,878,082

Additional information:
i. In June 2018, the District Assemblies Common Fund Secretariat purchased roofing
sheets amounting to GHS 875, 000 and paid directly on behalf of Tayoo District
Assembly for repairs and maintenance of schools. This has not been recorded in the
books of the Assembly. add to repairs
ii. Total vouchers amounting to GHS 750,000 for Administrative Expenses are
outstanding at the end of the year and not recorded in the books of the Assembly. add to ADM exp
Required:
As the Head of Final Accounts working with the Assembly, prepare a Revenue and Expenditure
st
Statement for 2018 and Statement of Financial Position as at 31 December, 2018 (using
Government of Ghana Main Accounts Classifications).

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Question 6

The following are the balances extracted from the Consolidated Fund of Public Accounts for the
year ended 31st December, 2017.
GHS’000
Consumption of fixed Capital(Exp. 208,878
Miscellaneous Direct Taxes 98,238
Social Security Benefit in Kind 66,120
13.5% SSF Contribution 45,000
Project Grant 9,370
Fines, Penalties and Forfeitures 25,928
Materials and Office Consumables 117,526
General Taxes on Goods & Services 265,064
Travel & Transport 41,610
Social Assistance Benefits 68,678
Established Post- salaries 800,800
Domestic Debt Interest 40,200
Gratuity 20,000
Training, Seminar and Conference Cost 54,250
External Debt Interest 83,772
Allowances to Employees 56,000
Repairs and Maintenance 34,560
Property Income 25,000
Cash & Bank Balances 1,960,898
Advances & Receivables 60,164
Taxes on Exports 581,588
Long Term Receivables 2,836,616
Non-Established Post-salaries 400,104
Payables 1,211,044
Accumulated Surpluses (1/1/2017) (61,343,676)
Deposit and Other Trust Monies 3,752,412
Short-Term Borrowing 11,299,822
Taxes paid by individuals 810,436
Subsidy on Petroleum Products 15,000
Fertilizer Subsidies 24,068
Equity Investment 3,619,752
End of Service Benefit 25,880
Infrastructure, Plant & Equipment 2,028,806
Taxes paid by Companies & Enterprise 135,784
Work-In-Progress 304,880
Domestic Debt 23,719,588
External Debt 32,283,148
Employer Social Benefits in Cash 30,500
Other Expenses (note i) 22,584
Excise Duties 92,900

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 Additional Notes:

i) Other Expenses
During the year, the Government of Ghana benefited from free services provided from
medical experts who were task forces of the British Government. The main object of this task
force was to help curb cholera in the country. The fair value of these services amounted to
GH¢ 18,740,000. It is the policy of Government to include goods and services received
during the year in kind in its financial statements at fair values.

ii) The annual estimates for the year ending 2017 were as follows
Annual Budget Revised Budget
GHS ‘000 GH¢ ‘000’
Revenue
Direct Tax 800,000 940,000
Indirect Tax 1,000,000 1,200,000
Grants 40,000 56,000
Non- Tax Revenue 47,000 49,000
Total Revenue 1,887,000 2,245,000

Expenditure
Compensation of employees 1,367,688 1,400,040
Use of goods & Services 345,672 398,300
Public Debt interest 120,984 112,560
Social Benefits 187,590 168,954
Exchange Difference 35,000 38,676
Government Subsidies 26,442 29,650
Other Expenses 35,000 32,000
Consumption of Fixed Capital 192,000 202,770
Total Expenditure 2,310,376 2,382,950
Surplus/Deficit (423,376) (137,950)

Required:
a) Prepare a Statement of Revenue and Expenditure of the Consolidated Fund for the
year ended December 31, 2017 indicating the accompanying variances to the statement.

b) Prepare a Statement of Financial Position of the Consolidated Fund as at December 31,

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