The following Trial Balance relates to Bunsu Education College, a public tertiary educational institution in Ghana, as at 31/12/2018.
Additional information:
i) The college has adopted the accrual basis International Public Sector Accounting Standards (IPSAS) as the basis for the preparation of its financial statements.
ii) Stationery stock as at 31/12/2018 was GH¢200,500,000 but have a Net Realisable Value of GH¢ 155,254,000
iii) Social benefits of GH¢1,720,000 yet to be paid during the year was included in the Work In Progress value. Consultancy cost amounting to GH¢234,500,000 was incurred but not yet paid.
iv) Books and Research Allowance was received from Government during the period amounting to GH¢337,530,000 for disbursement to qualified Lecturers and Administrative staff.
v) Provision is to be made for interest on loans.
vi) 60% of the receivables represent an amount of students’ fees outstanding as at 31/12/2017. Provision for doubtful debt is estimated to be 5% of outstanding school fees.
vii) The university uses straight line basis of depreciation for Capital Assets. Capital Assets and their useful lives are detailed out below:
Assets Useful Life
Plant and Machinery 8 years
Motor Vehicle 5 years
Building 50 years
Software 7 years
Required:
i) Prepare a Statement of Financial Performance for Bunsu Educational College for the year ended 31/12/2018. (8 marks)
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ii) Prepare a Statement of Financial Position as at 31/12/2018. (6 marks)
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