The following balances were extracted from the books of Abobakau Local Government for the year ended 31st December 2019.
Construction of an office block ------ 3,850,000
Renovation of classroom blocks ----1,065,500
Court fines---- --------------------------------90,000
Building permits ---- -----------------------650,000
Rehabilitation of street lights-- ----------470,500
Wages and salaries----------------------7,880,450
Medical services -- ----------------------1,334,650
Provision of pipe borne water--- -----2,500,000
Interest on investments-------------------250,000
Lorry park levies----------------------------380,000
Market tolls-----------------------------------560,000
Property rates-----------------------------1,200,000
General administration------------------- 630,700
Motor vehicle procured-----------------6,653,000
Extension of office building------------- 950,000
Royalties ----------------------------------4,500,000
Subvention from Central/Fed govt 20,000,000
Grants from donor agencies---------2,000,000
Donations to charity homes----------250,000
Entertainment permits------------------70,000
Staff training ----------------------------550,000
Entertainment expenses ------------200,000
Marriage registration fees ------------80,000
Allowances to community leaders-380,000
Birth certificate fees ------------------160,000
Maintenance of motor vehicles----650,000
You are reg You are required to prepare for the ended 31st December 2019
(a) Statement of Recurrent Expenditure
(b) Statement of Capital Expenditure
(c) Statement of Revenue
Statement of Recurrent Expenditure:
- Wages and salaries ------------------------7,880,450
- Medical services -------------------------1,334,650
- Rehabilitation of street lights ---------470,500
- Provision of pipe borne water -------2,500,000
- Interest on investments ----------------250,000
- Lorry park levies -------------------------380,000
- Market tolls ------------------------------560,000
- Property rates --------------------------1,200,000
- General administration -----------------630,700
- Entertainment expenses --------------200,000
- Staff training -----------------------------550,000
- Allowances to community leaders ---380,000
- Birth certificate fees --------------------160,000
- Maintenance of motor vehicles -----650,000
Total Recurrent Expenditure: ------- 16,166,300
Explanation:
Recurrent expenditure refers to the day-to-day running expenses of an organization that are incurred regularly, such as salaries, rent, utilities, and other expenses that are necessary for the organization's ongoing operations. The statement of recurrent expenditure shows the total amount spent on such expenses during the year. In this case, the total recurrent expenditure of Abobakau Local Government for the year ended 31st December 2019 was 16,166,300.
Statement of Capital Expenditure:
- Construction of an office block -----3,850,000
- Renovation of classroom blocks ---1,065,500
- Building permits -----------------------650,000
- Extension of office building ---------950,000
- Motor vehicle procured --------------6,653,000
Total Capital Expenditure: ------------12,168,500
Explanation:
Capital expenditure refers to the money spent on acquiring, constructing, or improving fixed assets, such as buildings, equipment, and land. The statement of capital expenditure shows the total amount spent on such assets during the year. In this case, the total capital expenditure of Abobakau Local Government for the year ended 31st December 2019 was 12,168,500.
Statement of Revenue:
- Court fines ------------------------------------90,000
- Interest on investments -------------------250,000
- Lorry park levies ------------------------------380,000
- Market tolls ------------------------------------560,000
- Property rates --------------------------------1,200,000
- Royalties ---------------------------------------4,500,000
- Subvention from Central/Fed govt ---20,000,000
- Grants from donor agencies ------------2,000,000
- Donations to charity homes --------------250,000
- Entertainment permits ---------------------70,000
- Marriage registration fees ----------------80,000
Total
Statement of Recurrent Expenditure:
- Wages and salaries ------------------------7,880,450
- Medical services -------------------------1,334,650
- Rehabilitation of street lights ---------470,500
- Provision of pipe borne water -------2,500,000
- Interest on investments ----------------250,000
- Lorry park levies -------------------------380,000
- Market tolls ------------------------------560,000
- Property rates --------------------------1,200,000
- General administration -----------------630,700
- Entertainment expenses --------------200,000
- Staff training -----------------------------550,000
- Allowances to community leaders ---380,000
- Birth certificate fees --------------------160,000
- Maintenance of motor vehicles -----650,000
Total Recurrent Expenditure: ------- 16,166,300
Explanation:
Recurrent expenditure refers to the day-to-day running expenses of an organization that are incurred regularly, such as salaries, rent, utilities, and other expenses that are necessary for the organization's ongoing operations. The statement of recurrent expenditure shows the total amount spent on such expenses during the year. In this case, the total recurrent expenditure of Abobakau Local Government for the year ended 31st December 2019 was 16,166,300.
Statement of Capital Expenditure:
- Construction of an office block -----3,850,000
- Renovation of classroom blocks ---1,065,500
- Building permits -----------------------650,000
- Extension of office building ---------950,000
- Motor vehicle procured --------------6,653,000
Total Capital Expenditure: ------------12,168,500
Explanation:
Capital expenditure refers to the money spent on acquiring, constructing, or improving fixed assets, such as buildings, equipment, and land. The statement of capital expenditure shows the total amount spent on such assets during the year. In this case, the total capital expenditure of Abobakau Local Government for the year ended 31st December 2019 was 12,168,500.
Statement of Revenue:
- Court fines ------------------------------------90,000
- Interest on investments -------------------250,000
- Lorry park levies ------------------------------380,000
- Market tolls ------------------------------------560,000
- Property rates --------------------------------1,200,000
- Royalties ---------------------------------------4,500,000
- Subvention from Central/Fed govt ---20,000,000
- Grants from donor agencies ------------2,000,000
- Donations to charity homes --------------250,000
- Entertainment permits ---------------------70,000
- Marriage registration fees ----------------80,000
Total
