The trial balance below relates to Prudential Commercial Bank as at 31st December, 2019. GH₵ GH₵ Interest income 690,708 Interest expense 92,982 Fees and commission income 114,392 Fees and commission expense 22,422 Staff expenses 259,868 Advertisement 41,177 Audit fees 4,955 Directors remuneration 1,891 Depreciation 21,135 Other administrative expenses 94,864 Cash at hand 197,441 Balance with Bank of Ghana 311,133 Receivables from other banks 176,000 Investment in government securities 202,595 Land & buildings 51,827 Furniture & equipment 92,057 Computer and data handling equipment 64,478 Motor vehicle 20,294 Acc-Dep: Land & buildings 9,254 Acc-Dep: Furniture & equipment 40,625 Acc-Dep: Computer and data handling equipment 32,975 Acc-Dep: Motor vehicle 2,781 Intangible assets 12,162 Stated capital 115,000 Statutory reserve as at 1/1/2019 145,748 Credit risk reserve as at 1/1/2019 22,384 Revaluation reserve as at 1/1/2019 12,864 Interim and final dividend paid 55,650 Customers' deposits 321,000 Payable to other banks 120,000 Trade payables and accruals 95,200 1,722,931 1,722,931 Notes: In compliance with the Banking Act, 12% of the net profit after tax is to be transferred to statutory reserve of net profit after tax. Corporate tax rate is 25%. Management agreed to transfer GHȼ1,211 from the retained earnings to credit risk reserve based of Ghana’s provisional guidelines and IFRS. Audit fees accrued for the year ended 31st Dec 2019 was GHȼ1,520. Depreciation is to be calculated the company using straight line method on the following rates: Land & buildings 2% Straight line method Furniture & equipment 15% Straight line method Computer and data handling equipment 5% Straight line method Motor vehicle 5% Straight line method Required: Prepare the following financial statements of Prudential Commercial Bank Limited for publication in accordance with relevant legislations and international reporting standards (IFRS): The Statement of Comprehensive Income for the year ended 31st December, 2019 The Statement of Changes in Equity for the ended 31st December, 2019. The Statement of Financial Position as at 31st December, 2019.

The trial balance below relates to Prudential Commercial Bank as at 31st December, 2019. GH₵ GH₵ Interest income 690,708 Interest expense 92,982 Fees and commission income 114,392 Fees and commission expense 22,422 Staff expenses 259,868 Advertisement 41,177 Audit fees 4,955 Directors remuneration 1,891 Depreciation 21,135 Other administrative expenses 94,864 Cash at hand 197,441 Balance with Bank of Ghana 311,133 Receivables from other banks 176,000 Investment in government securities 202,595 Land & buildings 51,827 Furniture & equipment 92,057 Computer and data handling equipment 64,478 Motor vehicle 20,294 Acc-Dep: Land & buildings 9,254 Acc-Dep: Furniture & equipment 40,625 Acc-Dep: Computer and data handling equipment 32,975 Acc-Dep: Motor vehicle 2,781 Intangible assets 12,162 Stated capital 115,000 Statutory reserve as at 1/1/2019 145,748 Credit risk reserve as at 1/1/2019 22,384 Revaluation reserve as at 1/1/2019 12,864 Interim and final dividend paid 55,650 Customers' deposits 321,000 Payable to other banks 120,000 Trade payables and accruals 95,200 1,722,931 1,722,931 Notes: In compliance with the Banking Act, 12% of the net profit after tax is to be transferred to statutory reserve of net profit after tax. Corporate tax rate is 25%. Management agreed to transfer GHȼ1,211 from the retained earnings to credit risk reserve based of Ghana’s provisional guidelines and IFRS. Audit fees accrued for the year ended 31st Dec 2019 was GHȼ1,520. Depreciation is to be calculated the company using straight line method on the following rates: Land & buildings 2% Straight line method Furniture & equipment 15% Straight line method Computer and data handling equipment 5% Straight line method Motor vehicle 5% Straight line method Required: Prepare the following financial statements of Prudential Commercial Bank Limited for publication in accordance with relevant legislations and international reporting standards (IFRS): The Statement of Comprehensive Income for the year ended 31st December, 2019 The Statement of Changes in Equity for the ended 31st December, 2019. The Statement of Financial Position as at 31st December, 2019.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The trial balance below relates to Prudential Commercial Bank as at 31^st December, 2019.

	GH₵	GH₵
Interest income		690,708
Interest expense	92,982
Fees and commission income		114,392
Fees and commission expense	22,422
Staff expenses	259,868
Advertisement	41,177
Audit fees	4,955
Directors remuneration	1,891
Depreciation	21,135
Other administrative expenses	94,864
Cash at hand	197,441
Balance with Bank of Ghana	311,133
Receivables from other banks	176,000
Investment in government securities	202,595
Land & buildings	51,827
Furniture & equipment	92,057
Computer and data handling equipment	64,478
Motor vehicle	20,294
Acc-Dep: Land & buildings		9,254
Acc-Dep: Furniture & equipment		40,625
Acc-Dep: Computer and data handling equipment		32,975
Acc-Dep: Motor vehicle		2,781
Intangible assets	12,162
Stated capital		115,000
Statutory reserve as at 1/1/2019		145,748
Credit risk reserve as at 1/1/2019		22,384
Revaluation reserve as at 1/1/2019		12,864
Interim and final dividend paid	55,650
Customers' deposits		321,000
Payable to other banks		120,000
Trade payables and accruals		95,200
	1,722,931	1,722,931

Notes:

In compliance with the Banking Act, 12% of the net profit after tax is to be transferred to statutory reserve of net profit after tax.
Corporate tax rate is 25%.
Management agreed to transfer GHȼ1,211 from the retained earnings to credit risk reserve based of Ghana’s provisional guidelines and IFRS.
Audit fees accrued for the year ended 31^st Dec 2019 was GHȼ1,520.
Depreciation is to be calculated the company using straight line method on the following rates:

Land & buildings	2%	Straight line method
Furniture & equipment	15%	Straight line method
Computer and data handling equipment	5%	Straight line method
Motor vehicle	5%	Straight line method

Required:

Prepare the following financial statements of Prudential Commercial Bank Limited for publication in accordance with relevant legislations and international reporting standards (IFRS):

The Statement of Comprehensive Income for the year ended 31^st December, 2019
The Statement of Changes in Equity for the ended 31^st December, 2019.
The Statement of Financial Position as at 31^st December, 2019.

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