The trial balance below relates to Prudential Commercial Bank as at 31 st December, 2019. GH GH
Question:
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.
College Accounting A Practical Approach
ISBN: 978-0132564441
11th Canadian Edition
Authors: Jeffrey Slater, Brian Zwicker