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 $

Fees Income 4,575,622

Permanent Post 5,312,430

Allowance 856,670

Indepenence Concultancy 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 Banks 294,233

Training and Workshop Cost 104,000

Bad Debts Provision (students 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 Sales 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.

2. With reference to IPSAS 1: Presentation of Financial Statements, state four (4) objectives of general purpose financial statements.