Padhuka's Students' Handbook on Advanced Accounting - For CA IPCC Group II Solution: Classification of Assets Standard Assets Sub-Standard Assets

Doubtful Assets (a) Secured: Less than 1 year More than 1 year but less than 3 years More than 3 years (b) Unsecured Loss Assets Total Provision to be made 1. Provision on Advances % of Provision 0.40 15 Amount (t 000's) 4,000 2,240 nftelv Provision (Z 000's) 16

.
25 240 600
A"

25 40 100 100 100

100 600 600 390 376 8,306

1,983

2. Profit and Loss Account of Sh am Bank Ltd for the year ended 31 5t March 2012 in 000's Particulars I. Income: Interest Earned Other Income Total Interest Expended Operating Expenses (Given) (Given) (Given) Sch. No. 13 14 15 16 31.03.12 8,830 220 - 9,050 2,720 2,830 8,064 31.03.11

II. Expenditure:

Provisions and Contingencies (Note) Total III. Profit / Loss: Add: IV. Appropriations:

'=

2,514
986 Nil 986 247 739 986

Net Profit for the year 50Profit / (Loss) brought forward Total Transfer to Statutory Reserve (25% of 986) Balance carried to Balance Sheet (bal. figure) Total

Note: Total of Provisions and Conlingendes (Z in 000's) is Z 2,514 computed as under - (a) Provision on Advances (WN 1) 1,983 + (b) Provision for Taxation = 9,050 - (Z 2,720 + Z 2,830 + Z 1,983)] x 35% = 531. Schedules to the Profit and Loss Account in 000's Schedule 1 3 - Interest Earned 31.03.12 Interest / Discount on Advances / Bills (8,860 - Rebate on B/Disc. 30 - Int on Invt 10) 8,820 Income on Investments (shown separately) 10 Total 8,830 Note: Schedule 14, 15, 16 not written up separately, since the summary information is given in the question. 31.03.11

*Preparation Of

Profit and Loss AM0Unf, ArdVidon on Advances, Invetitments

M 11 (Ninatat

the following information prepare the Profit & Loss Account of Jawahar Bank Limited for the year ended 31 March 2012. Also give necessary Schedules. Rs. Particulars Rs. Lakhs Particulars 2.76 Interest earned on Term Loans 17.26 Profit on Revaluation of Lakhs Interest earned on Term Loans classified as 15.53 4.52 Investments Investments Income from NPA Interest received on Term Loan classified as 18.75 2.04 Salaries, Bonus and Allowances NPA t' on Cash Credits and Overdraft' 1.70 Interest 38.54 Rent, Taxes and Lighting Interest earned but not received on Cash Credit 0.75 8.39 Printing and Stationery and Director's Fees, Allowances, 1.33 Overdraft treated as NPA Expenses 0.22 Interest on Deposits 27.20 Law Charges Commission 1.97 Repairs and Maintenance 0.18 0.30 Profit on Sale of Investments 11.76 Insurance