General Purpose Financial Statements

The following Trial Balance relates to Banco Community College, a public tertiary educational institution
in Guyana, as at December 31, 2019.
DR CR
$000 $000
Fees Income 4,575,622
Permanent Post 5,312,430
Allowance 856,670
Independent consultancy fees 655,600
Legal Cost 25,059
CARICOM Grant 1,540,000
Consultancy Cost 565,500
Non-Permanent Post 1,253,600
Seminars cost 500,000
Sponsorship (granted/received) 8,100 9,066,828
Receivables 468,050
Payables 182,840
20% loan 8,600
Books and Research Allowance 150,765
Plant and Machinery 3,000,000 250,000
Motor Vehicle 2,505,000 352,000
Building 12,300,000 756,000
Software 995,500 150,000
Other Incomes 211,430
Project Work Supervisory Allowance 48,500
Cash and Bank 294,233
Training and Workshop cost 104,000
Bad debt provision (student fees) 4,940
Work in Progress 8,251,735
Other Expenses 71,000
Withholding Tax 90,500
Accumulated Fund 11,205,270
Utilities Bills 560,053
Proceeds from Sale of Admission Forms 9,196,270
Superannuation 278,500
End of Service Benefits 298,040
Stationery Stock 399,165
38,245,900 38,245,900
Additional Information:
I. The college has adopted the accrual basis International Public Sector Accounting
Standards (IPSAS) as the basis for preparation of its financial statements.
II. Stationery stock as at 31/12/2019 was $200,500,000 but have a Net Realizable Value of
$155,254,000.
III. Social benefits of $1,720,000 yet to be paid during the year was included in the Work In
Progress value. Consultancy cost amounting $234,500,000 was incurred but not yet
paid.
IV. Books and Research Allowance was received from Government during the period
amounting to $337,530,000 for disbursement to qualified Lectures 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
31/12/2018. 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:

  1. Prepare a Statement of Financial Performance for Banco Community College
    for the year ended 31/12/2019. (8 marks).
  2. With reference to IPSAS 1: Presentation of Financial Statements, state four
    (4) objectives of general purpose financial statements. (2 marks).

Sample Solution

ACED ESSAYS