From the following ledger
balances of Indian Bank Ltd., Prepare the Profit and Loss Account and Balance
Sheet as on 31st March 2018
|
Particulars |
Amount |
Particulars |
Amount |
|
Freehold and leasehold property |
4,15,000 |
Shares and stock |
6,37,500 |
|
Premises and furniture |
3,37,500 |
Government securities |
6,00,000 |
|
Loans and advances |
46,65,000 |
Other securities |
8,25,000 |
|
Bills discounted |
3,79,500 |
Interest accrued and paid |
25,500 |
|
Money at call and short notice |
2,74,250 |
Profit and loss account on 1.4.2015 |
15,300 |
|
Cash in hand and with RBI |
15,84,750 |
Acceptances on behalf of customers |
12,00,000 |
|
Interest, discount and commission |
2,44,500 |
Current accounts and deposits |
77,31,450 |
|
Premises a/c - written off (depreciation) |
22,500 |
Reserve fund |
6,00,000 |
|
Current expenditure salaries, rent etc. |
71,250 |
Sh. capital 12,500 shares of Rs. 100 each |
12,50,000 |
|
Amount added to staff retirement fund |
3,000 |
Other assets |
500 |
Make a provision for rebate on bills
discounted Rs.2,450.
Solution
Banking Profit and Loss
Account
|
Particulars |
Sch. No. |
Amount |
|
I. Income |
||
|
Interest Earned |
13 |
2,42,050 |
|
Other incomes |
14 |
Nil |
|
Total (A) |
2,42,050 |
|
|
II. Expenditure |
||
|
Interest Expended |
15 |
25,500 |
|
Operating Expenses |
16 |
96,750 |
|
Provisions and Contingencies |
-- |
Nil |
|
Total (B) |
1,22,250 |
|
|
III. Profit/Loss A/c |
||
|
Net Profit for the year (A) - (B) |
-- |
1,19,800 |
|
Profit/Loss brought forward (Opening P/L
A/c) |
-- |
15,300 |
|
Total |
1,35,100 |
|
|
IV. Profit/Loss Appropriation A/c |
||
|
Transfer to Statutory Reserves (Transfer to
Sch:2) |
-- |
29,950 |
|
(25% on Net Profits =
1,19,800 x 25%) |
||
|
Transfer to revenue reserves |
-- |
Nil |
|
Transfer to proposed dividends |
-- |
Nil |
|
Profit/Loss carry forward (Transfer to
Sch:2) (b/f) |
-- |
1,05,150 |
|
Total |
1,35,100 |
|
Working Notes |
|
|
Particulars |
Amount |
|
Sch. No. 13 Interest earned |
|
|
Interest, discount and commision |
2,44,500 |
|
Less: Rebate on bills discounted |
2,450.00 |
|
2,42,050 |
|
|
Sch. No. 14 Other incomes |
Nil |
|
Sch. No. 15 Interest expended: Interest
accrued and paid |
25,500 |
|
Sch. No. 16 Operating expenses |
|
|
Premises account - written off |
22,500 |
|
Current expenditure, salaries, rent, etc. |
71,250 |
|
Amount added to staff retirement fund |
3,000 |
|
Total |
96,750 |
Balance Sheet
|
Capital
and Liabilities |
Sch. No. |
Amount |
|
Share capital |
1 |
12,50,000 |
|
Reserves and surplus |
2 |
735,100 |
|
Deposits |
3 |
77,31,450 |
|
Borrowings |
4 |
Nil |
|
Other liabilities and provisions |
5 |
2,450 |
|
Total |
97,19,000 |
|
|
Assets |
Sch. No. |
Amount |
|
Cash in hand and Balance with RBI |
6 |
15,84,750 |
|
Balance with other bank & Money at call
& short notice |
7 |
2,74,250 |
|
Investments |
8 |
20,62,500 |
|
Advances and loans |
9 |
50,44,500 |
|
Fixed assets |
10 |
7,52,500 |
|
Other assets |
11 |
50 |
|
Total |
97,19,000 |
|
|
Contingent liabilities |
12 |
12,00,000 |
|
BIlls for collection |
-- |
Nil |
|
Working Notes |
|
|
Particulars |
Amount |
|
Sch. No. 1 Share Capital : Share capital 12,500 ordinary shares of
Rs.100 each |
12,50,000 |
|
Sch. No. 2 Reserves & Surplus |
|
|
Reserve fund |
6,00,000 |
|
Statutory reserve(transferred from P/L
appropriation A/c) |
29,950 |
|
Profit and Loss A/c (transferred from P/L
appropriation A/c) |
1,05,150 |
|
Total |
7,35,100 |
|
Sch. No. 3 Deposits : Current accounts and deposits |
77,31,450 |
|
Sch. No. 4 Borrowings |
Nil |
|
Sch. No. 5 Other Liabilites : Rebate on bills discounted |
2,450 |
|
Sch. No. 6 Cash in hand and Balance with RBI |
15,84,750 |
|
Sch. No. 7 Balance with other Bank and Money
at Call and Short Notice |
|
|
Money at call and short notice |
2,74,250 |
|
Sch. No. 8 Investments |
|
|
Shares and stock |
6,37,500 |
|
Government securities |
6,00,000 |
|
Other securities |
8,25,000 |
|
Total |
20,62,500 |
|
Sch. No. 9 Advances and Loans |
|
|
Lands and advances |
46,65,000 |
|
Bills discounted |
3,79,500 |
|
Total |
50,44,500 |
|
Sch. No. 10 Fixed Assets |
|
|
Freehold and leasehold property |
4,15,000 |
|
Premises and furniture |
3,37,500 |
|
Total |
7,52,500 |
|
Sch. No. 11 Other Assets |
500 |
|
Sch. No. 12 Contingent liabilities
Acceptance on behalf of customers |
12,00,000 |
|
Bills for collection |
Nil |