Question 2 The trial balance below relates to Jonah Commercial Bank as at 31st December, 2019. Dr. Cr. GH GH Interest income 14,850 Interest on customers deposits 2550 Net fees and commission income 2700 Gains on foreign currency 120 Dividend income 90 Operating expenses 7,200 Directors emolument 60 Auditors fees 120 Dividend paid (Note 6 ) 60 Loan impairment provision as at 1st Jan 2019 (Note 4) 1230 Rental income from investment property (Note 3) 270 Corporate current tax 300 Income surplus as at 1st Jan 2019 5,100 Capital surplus as at 1st Jan 2019 60 Statutory reserve as at 1st Jan 2019 1920 Stated capital (50,000 equity shares) as at 1st Jan 2019 300 Cash on hand 1020 Balance with the Bank of Ghana 9,150 Investment in government securities 32,700 Investment in listed financial institutions 480 Receivables from other banks 4,830 Payables to other banks 150 Overdraft, loans and advances 47,100 Sunday receivables and prepayments 1500 Property, plant and equipment 3,720 Accumulated depreciation of PPE as at 1st Jan 2019 (Note 1) 1170 Investment property (Note 3) 720 Customers deposits 73,650 Expense trade payables and accruals 9,900 Total 111,510 111,510 Notes 1. Property, plant and equipment as at 1st January, 2019 was as follows: Cost Acc. dep Rate of depreciation GH000 GH000 GH000 Land and building 450 80 20% straight line per annum Equipment 750 300 25% straight per annum Motor vehicles 40 20 25% per annum line The value of land and building at acquisition was GH450,000 (land 50,000 and building 400,000) on 1st January, 2016. The company policy on depreciation does not cover land. The directors caused the property (land and building) to be revalued in 1st January, 2017. The valuers assigned value of GH400,000 for both land and building but advised that the estimated remaining useful life should be maintained. The directors wish to incorporate this valuation in 2017 financial statement. 2. There was neither tax liability nor current tax asset as at 1st January, 2019. During 2017, the company paid GH100,000 for corporate tax on interim assessment. The bank is subject to 20% corporate tax. The company adopts nil provision for deferred tax. 3. The investment property was acquired in January 2019. The rental income from the investment property GH90,000 relates to the three-year period ending 31st December, 2021. The bank adopts fair value model in subsequent measurement of the investment property and fair value assessment at 31st December 2017 puts the valuation at GH250,000. 4. Loan impairment provision at the end of the year as at 31st December, 2017 is to be increased to GH510,000. 5. In compliance with the Banking Act 12.5% of profit after tax is to be transferred to statutory reserve. 6. On 15th November, 2019 the directors paid an interim dividend of GH0.40 per share. No further dividend is recommended for the year. 7. In order to satisfy the Central Bank minimum stated capital requirement, the shareholders, at an emergency meeting on 24th December, 2017 approved a bonus issue of one share for each one held (out of income surplus) to be credited at the current market price of GH5 per share. This decision is to be reflected in the 2017 financial statements. Required: Prepare the following financial statements of Kelewele Limited for publication in accordance with relevant legislations and international reporting standards (IFRS): (a) Prepare the Statement of Comprehensive Income for the year ended 31st December, 2017 (b) Prepare the Statement of Changes in Equity for the ended 31st December, 2017 (c) Prepare the Statement of Financial Position as at 31st December, 2017.