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.

Answer rating: 100% (QA)

Step 1 Reserve Reserve is the profit which is put it back into the business and reduces the amount o... View the full answer