Problem-1: From the following balances of the Arab Bangladesh Bank Ltd. as on 31 December 2012, prepare the Balance sheet as on 31% December, 2012 and Profit and Loss account for the year ended: Tk Tk. Paid up capital 15,00,000 | Salaries 32,150 Profit & Loss A/e 40,333 | Buildings (coat Tk. 3 Jaks) 2,05,000 | Current Accounts 34,12,829 | Law charges 1,650 | Fixed deposits 38,95,554 | Cash in hand and | with banks 8,16,324 Savings Bank A/c 20,68,000 | Cash with other banks 12,05,125 Directors Fee 2,980 | Investment at cost 8,78,126 | Auditors Fee 3,000 | Loans, cash credit | and overdraft 70,20,000 Fumiture (cost Tk. 50,000) 37,280 | Bills discounted 14,00,520 Interest & Discount 2,00,223 | Unexpired insurance 625 Commission & Exchange 1,12,000 | Statutory Reserve fund 60,000 Investment Reserve Fund 35,000 | Reserve fund 2,05,000 Branch Adj. Cr.) 66,894 | Rent, Rates and 8,507 taxes Postage 2,156 | Provident fund contribution 15,000 Printing & Stationery 2,390 | ContingencyReserve | 55,000 i) The bank has accepted Tk. 2,00,000 Bill on behalf of customers, the securities lodged against them amounted to Tk. 3,00,000. ii) Provide Tk. 7,000 on Buildings and Tk. 4,500 on furniture for depreciation. iii) The market value of investments on 31“ December, 2012 amounted Tk. 850,000. iv) Rebate on bills discounted on 31" December, 2012, Tk. 5,900. Problem-2: From the above particulars for Liverpool Bank Itd. prepare Profit and Loss Statement for the year ended 31" December 2012 and a Statement of Financial Position on that date as per the 1* Schedule of Banking Companies Act-1991: Particulars Debit (Tk) Particulars Credit(Tk) Cash in hand 3,20,000 | Capital 25,00,000 Cash with Bangladesh bank 8,50,000 | Reserve fund 10,00,000 Interest paid 3,96,000 | Interest & discount 6,55,000Salaries é& allowances 1,22,000 [Tneome from dividend PF. Contribution 8,500 | Exchange & commission Directors fees 12,500 | Brokerages Management expenses 50,000 | Share transfer fees Bills discounted £8,00,000 | Investment fluctuation fund, Premises '5,00,000 | Contingency reserve Fumiture 166,000 | Deposits & other accounts Investment 25,00,000 | Provident fund P-F. Investment 75,000 Loans & Cash Creditors 40,06,000 Overdrat 23,00,000, 1.20,06,000 Others information: Rebate on bills discounted Tk. 12,500. Management expenses outstanding Tk. 9,600. Interest accrued but not received Tk. 17,500. Depreciation on premises Tk. 25,000 and Furniture Tk. 6,000. Investment is to be shown in market price which is Tk. 24, 50,000. vi. The bank has accepted bills on behalf of customers Tk. 2, 20,000. Problem-3: From the following balances of the Loyads Bank Ltd. prepare Profit and Loss Statement for the year ended 31 December 2011 and a Statement of Financial Position as on that date: Particulars Taka Share capital (6,000 shares of Tk. 100 each, Tk. 50 paid-up) | _3,00,000 Interest and discount received 8,50,000, Share Premium account 1,00,000 Balances with Bangladesh bank 14,50,000 ‘Commission, brokerages etc. received 2,80,000 Balance with other bank 5,50,000 Interest paid on deposits 3,50,000 Money at call and short notice 2,50,000 Savings bank deposits 20,10,000 Rents, rates and insurance premium paid 25,000 Current account, contingency account ete. 45,00,000 Law charges paid 10,000 Shares and debentures purchased (investment) 3,65,000 Miscellaneous receipts from constituents 20,000 Cash in hand 82,000 General reserve fund 1,90,000 Rent received from tenants 50,000 Fixed Deposits 60,00,000 Salaries allowances etc. 2,75,000Bills discounted and purchased-loans and advances Postages, telegrams, and stamps Bills payable Government securities purchased Director’s fees and allowances Auditors fees Bank premises Unclaimed dividend Depreciation Rebate on bills discounted Miscellaneous expenses Repairs to bank premises Stationery, printing and advertising Profit and loss account (Cr.) Loans and advances: Unclassified Substandard Doubtful Bad Branch adjustment (Dr.) Interest accrued on investment 8,50,000 65,000 7,00,000 23,00,000 28,000 12,000 16,50,000 15,000 50,000 35,000 25,000 74,000 46,000 50,000 30,00,000 20,00,000 8,00,000 2,23,000 5,95,000 25,000 Additional information: i. Provide for taxation Tk. 20,000; Dividend declared @ 10 for the year; ‘The management has decided to create a specified provision for Tk. 50,000 and general provision for unclassified advances Tk. 30,000; Transfer to general reserve Tk. 20,000; Transfer to investment fluctuation fund Tk. 20,000; Bills for collection Tk. 5,00,000; acceptance endorsement Tk. 10,00,000; Outstanding salaries Tk. 10,000; Prepaid law charges Tk. 2,000. Problem-4: The following are the balances of Bengal Bank Ltd. at December, 2006. Debit | Credit (te) | ky ‘Share capital (88,750 shares of TK-10 each) 887,500 Reserve | _5,00,000 Current accounts 25,81,343 Deposit accounts 6,85,135 Acceptance and endorsement for customers 340,216 Reserve for final dividend 56,005 Profit & Loss account (01.01.85) 128,139Interest received TAio10 Discount charges 38,41 ‘Commission charges 1,54,859 Dividend received less tax 86,251 Cash in hand 341,644 Cash with Bangladesh bank 621,858 Money at call and short notice 2,79,416 Bills discounted 8,33,483, Advances to customers 13,42,120 Liability of customers for acceptance & endorsement 3,40,216 Bank premises 2,60,000 Investment in shares of Joint stock companies (at cost) 2,48,000 Investments in national defence bonds (at cost) 1,68,000 Balances with other banks 24,220 Government securities (at cost) 618,358 Interest paid 42,048 General expenses 91,363 Salaries & allowances 100,000, Interim dividend 32,188 Final dividend 56,005 35,98,919 | 55,98.919 You are required to prepare a profit and loss account for the year ended 31% December, 2006 and the Balance sheet as at that date after taking into account the following adjustments: i ‘Unexpired discounts amounted to Tk. 4,200, while interest and dividends accrued and outstanding were Tk. 1, 23,395. Salaries include Tk. 10,000 paid to general expenses. Provide Tk. 17, 500 for depreciation on Bank premises. v. Provide for bad debts to the extent of Tk. 5,500. Problem-5: ‘The market value of shares of Joint Stock Companies was Tk. 2, 55,000. From the following trial balance of National Bank Ltd,, prepare the balance sheet as on 31% December, 2009 and profit and loss account for the year ended 31% December, 2009: Tk Share Capital: Authorized and Issued 10,000 shares of tk. 100 each, Tk. 90paid | _5,00,000 Reserve fund 3,50,000 Fixed deposit accounts 9,50,000 Savings bank deposits 30,00,000 Current accounts 80,00,000 Money at call & short notice 3,00,000 ‘Acceptance and endorsement on behalf of customers 2,00,000 Investment (at cost) 30,00,000 Interest accrued and paid 2,00,000Salary (including salary to general manager Tk. 24000 and directors fees tk. 5000 80,000 | ‘Non banking assets acquired in satisfaction of claims 50,000 | Rent paid 720,000 | General expenses 15,000 Stationery a 8,000 ‘Auditors fees 2,000 Profit and loss account (credit) on I“ January, 2006 2,10,000 Dividend paid for 2005 ae [50,000 Premises (Less accumulated depreciation up to December, 2005 Tk. 100000) 12,00,000 Cash in hand 60,000 Cash with Bangladesh Bank 15,00,000 Cash with other banks 13,00,000 Borrowed from banks 7,00,000 Interest and discounts 650,000 Commission, exchange, brokerage etc. 15,000 Branch adjustment (credit) 50,000 Bills discounted and purchased 5,00,000 Bills payable 8,00,000 Loans, cash credits and overdrafts 770,00,000 Unclaimed dividends 30,000 Sundry creditors 30,000 Bills for collection 7,40,000 Additional Information: a. Rebate on bills discounted and purchased for unexpired terms amounted to Tk. 5,000. b.A provision for doubtful debts amounting to Tk. 25,000 is required. c. The market value of investments amounted to Tk. 34, 50,100. 4d. Provide for taxation Tk. 1,00,000. e. The directors recommended 15% dividend for the year 2006. £ Allow 5% depreciation on premises on original cost. Problem-06: From the following balances of the Arab Bangladesh Bank Ltd. as at 31" December 2009, prepare a profit and loss account and a balance sheet. ‘The authorized capital consists of 20,000 shares of Tk. 100 each, Tk. 50 per share called up and paid. Provide Tk. 8,000 for depreciation on buildings, Tk. 3,500 on furniture, Tk. 25,000 for investment reserve fund, Tk. 20,000 further by way of bad debts reserve. The rebate on bills not due amounted to Tk. 15,000. An-ad-interim dividend at the rate of 7% per annum was paid for half year ended 30" June 2009. Tk. Paid up capital 10,00,000 Buildings (cost Tk. 300000) [__2,05,000 Profit & loss appropriation account (1% January 2006) 40,000 ‘Advertising 1,700 Investment reserve fund 35,000Bils discounted sams 9,00,000 Lomstocustomers = 45,00,000 Liability for expenses 46,000 Cash credit & overdrafis 30,00,000 Current account 34,153,000 ‘Cash with other banks 16,05,000 Directors & auditors fees 5,900 Cash at head office & branches 416,000 Fumiture & fixtures (cost Tk. 50000) 37,000 Fixed deposits 38,99,000 Interest 3,50,000 Discount received 67,000 Investment cost 2,78,000 Postage & telegrams 2,000 ‘Unexpired insurance 500 Printing & stationery 3,000 ‘Stamps on hand 200 Rent, taxes & insurance 8,700 Reserve fund 2,65,000 Salaries 357,000 Reserve for bad debis 40,000 Interest on deposits 100,000 Out of the total debts for Tk. 5, 18,000 were considered doubtful, and the balance was considered good, of which debts amounting to Tk. 43, 50,000 were fully secured, and amounting to Tk. 6,99,000 the bank held guarantees for one or more persons over and above the personal secutities of debtors. Debts due by directors jointly with other persons amounted to Tk. 2,00,000. For the balance the bank held no other security except the personal security of the debtor. Problem-07: The following trial balances of Habib Bank Ltd. as on 31% December, 2009: Particulars Debit (Tic) _| Credit (Tk) Share capital account (authorized and paid-up) 3,00,000 10000 shares of Tk. 100 each, Tk. 50 paid-up Reserve fund 8,00,000, Fixed deposit account 30,00,000 Savings bank deposits 20,00,000 Current accounts and unadjusted contingencies 1,10,00,000 Money at call and short notice-in Bangladesh 1,00,000 Money at call and short notice-outside 50,000 Bills discounted and purchased-in Bangladesh —____ | 4,50,000 | Bills discounted and purchased- outside 1,00,000Investment at cost 7 Government securities 50,00,000 Ordinary share-fully paid 5,00,000 Preference share-fully paid 1,00,000 Preference share-partly paid (calls to be made 20000) 50,000 Debentures 200,000 Gold 12,00,000 Pakistan Government Securities 5,00,000 Reserve for Building 3,00,000 Interest and discount 650,000 Commission brokerage and exchange 50,000 Rents 20,000 Interest on deposits, current accounts etc, 2,00,000, Salaries (Tk. 30000 to General Manager) 2,15,000 Postage and Telegrams 3,000 Rent, rates, insurance ete, 11,000 Legal charges 500 Director’s fees 2,500 ‘Auditor's fees 1,500 Miscellaneous receipts 61000 Premises at cost 30,00,000 ‘Additions to premises 10,00,000 Depreciation fund on premises 40,00,000 Repair to premises 60,000 Stationery, printing and advertisement 72,000 Stamps on hand 3,000 Other expenses of the business 15,000 Cash in hand 62,000 Cash with Bangladesh Bank 12,00,000, Cash with Pakistan State Bank 3,00,000 Cash with other Banks in Bangladesh [6,00,000 Unclaimed Dividends 12,000 Unexpired Discounts 25,000 Loans, advances, overdrafts and cash credits: InBangladesh 50,00,000 In Pakistan 8,00,000 Branch Adjustment 9,00,000 Silver 1,00,000 ‘Advance payment of tax 60,500 Interest accrued on investments 125,000 Interim dividend on share capital 25,000 ‘Non-banking assets acquired in satisfaction of claims 10,000 Borrowed from Banks in Bangladesh 1,25,000 Borrowed from Banks in Pakistan 15,000 Bills payable 10,00,000,Profit and Loss Account ~1,50,000 ] Dividend equalization fund 3,00,000 2.42,18,000 | 2,42,18,000 The bank had bills for collection Tk. 150000 including Tk. 10000 in Pakistan and acceptance and endorsements Tk. 200000 on December 31, 2005 for its constituents. The directors decided to reserve Tk. 1000 more for unexplored discounts. Bonus to staff to be provided Tk. 42000 including Tk. 5000 to general manager. The directors decided to transfer reserve for building to depreciation fund account as new premises have been collected. Out of loans to clients in Pakistan, a loan to the extent of Tk. 5000 is considered bad and the directors have passed a resolution to write it off. All otherLoans and Debts are considered good. You are required to prepare profit and loss account and balance sheet as at 31" December, 2009. Problem-08: From the following particulars of Dhaka City Bank Ltd. prepare the balance sheet as on 31" December, 2009 and profit and loss account for the year ended December 31, 2009: T Particulars Tk Borrowing from other banks 12,00,000 Bils receivable for collection 12,00,000 Customer’s liability for acceptances 21,06,800 Rebate on bills discounted 4,000 Branch adjustment (credit) 45,000 Reserve Fund 13,00,000 Capital: 20000 shares of tk. 100 each 20,00,000 Interest and discount received cSt 6,50,000 Exchange and commission (credit) 180,000 Profit and Loss Account balance on 1.1.2006 1,90,000 Cash in hand 6,62,050 Money at call and short notice 250,000 Investments (cost) “30,00,000 Interest acerued on investment 47,050 Cash credit and Joans 30,41,000 Bills purchased and discounted 24,00,900 Furniture, fixture and equipment 50,000 Repairs 40,000 Interest paid 140,000 Exchange and commission paid 30,000 Salaries 7,30,000 Directors’ fees and remuneration a 5,000 Stationery and advertisements i 720,000 Miscellaneous expenses 50,000 Land and buildings 3,60,000 Current deposits 35,00,000 Savings bank accounts 24,50,000 Fixed and time deposits 37,67,000 Sundry creditors account 50,000 Other Information: () Provide for depreciation on building Tk. 10,000. Depreciation up to the last year is Tk. 90,000. i Provide Tk. 10,000 for doubtful debts. (ii) Transfer Tk. 50,000 to reserve fund and provide Tk. 10,000 for income tax (iv) A dividend of 5% was declared for the year 2006 and (v) The market value of investment is Tk. 49,50,000.