nal Accounts anal Statuary Requirements For aking Companion ow Aebate on file Dlacounted Account DRA) Pareatara onal | WN ie | 9 Dn | Parkers ea 142017 | fo tnovent one 147017] By Balance vt Draco A ‘00 1-3-2088 By etorest ane va corn] te alanen eat 28,000 | pacar be Ineront and Diacount Account Sona] Pee AT ae k= wee | Paris P2040} fo abate on Om 14 2017 By Fat Bi Ducounted NS 21,000| tlasnte fv v1-n.2010) etn and ane Ae] 1,0.12,000) 2017-18) By Osenece | itao.a0700 rr iMstration 4 at verng formation ls avalabo inthe books of X Bank Limited ae on si Maren 2 1.37.98,000 Discount racolved ashe Dota of bins discountod are ae fotows Value of bill (@) Due date, Rate of discount 18,26,000 5-6-2014 12% 50,00,000 wzo-2014 12% 20,20,000, 2562014 14% 40,60,000 7.2014 16% core na rabato on bila dacouni ae on 91-9-2014 and ave recansary out tt {IYOAR, April 2014, 2011, CA-PCC, Now 2007, aaepted) ‘statement Showing Rebate on Bilis Discounted taal [Fo baa] oapa aaron “a poa| s-62014 | (0031 + 5) = 68 12% 39600 12 oon) de-oote | aoe + 12) = 73 te 1 doeee 28,20,000| 25-6-2014 | (30 +31 + 25) = 86 14% | 93,021 ied eran | 2239-00 toe 259 Tinton bla acountod on 33204 se Za Epais of Oani-|-Oiacolnt Aunt 1.37,05,000] ine Dooks of X Bank Lt. ‘oumal Ents eee a TP on i [HO He pat ov ils Ocounnd Aceon es 7.000| recent on ba Rect — 1 ft on ils counted aso te cont oni Pact on i Acco Fe ania Decco count 00a maton st Mar, 2014 4, | Bisco on i Account trot ar ons Account 1 rua, lh a rt 98com. Part — f Advanced Finante jut secoutins Se scout sees 92218 oo Iustration 5 ng In "Reb vant saiance of © 45 lal its of exct nt wen 201d, Nanw Bak LS Cet incu! Beer 015. 1. Rebate on Bills Discounted Account waciner ne 2 | 2, tatecest and Discount Account (rvear, Apri 2007, (C1 oe In the Books of Nanu Bank Ltd. 1 Journal Entries r pea ese Ea nk rarer dete 07 r. oeitoterest and Discount A/C = | 81,000 Gash Ae Pale 51,000 | Jat or is Purchased and Discounted A/c {acing ine ciscounted bits colected] - ills Purchased and Discounted Ale peg] onecOl en Te interest and Discount No, b \ ow (@ 51,000 x 15/100 x 72/365 \ | To Customers’ / Clients A/c. 49,470 | teeing discounting of ils during the year] 2018 , 31-3 | 4. | Interest and Discount Alc y Dr. 66.80 \ i (@ 3.067 x 15/100 x 53/365) 4 aS ‘19 Rebate on Bils Discounted Ac esco |S | | teeing prouiion made for unexied discount on 31st March | 7 2018) \ 31-3 | 5. [interest and Discount Ne Dr. | 1,508.20 “To Profit and Loss Ae isos20 | {Being the transfer af Interest and Discount Ale balance to \ |_| the Profit and Loss A/c] \ Or. Rebate on Bills Discounted Account cr. \ tDate* | Particulars “ht] in lakhs | 2xDate 8°) Particulars Zin lakhs | 7-4-2017 | To Interest and By Balance bid 45.00 Discount Ae 45.00 By interest and \ 31-9-2018| To Balance cid 66.80 _ | Discount Ale 66.80 | 117-80 —aaD | Dr. __ Interest and Discount Account cr. \ EeDate® | Pantculars, [in lakhs [= Oate=| Particulars sarge se —=| Cin lakhs: tals |e eee Bits «6 1-4-2017 | By Rebate on Bills r 3.80 Discounted Alc 66.80 31-8.2018] To Profit and Loss Alc | 1,508.20) 2017-18 | By Bills Purchased (Transfer) ‘and Discounted A/c 1,508.20 1,575.00 TS7500Final Accounes and Seat 7 Requirements For Bonking Companies * fan Bark U4. a9 at 312t March, 2018, 12,00,000, 600.000 | " to Profit and Loss Account and pass (ICWA Inter, June 2015, adapted) ‘the amount ef discount received to 12 Journal Entries for the same. Calculation of Unexpired Discounts or Rebate on Bills Discounted 46 50 106 }12,00,000) 49 |6,00,000 ‘ed discounis én Stst March, 2018 = € 1,093,004 yo be eredited to P & L Ac is ascertained from the Discount Account as fellows Discount on Bills Account Fea [mate | Pariculars Sas Panicuars ToProft& toss Ac | 4,25,099| 31-3-18| By Sundries (Bal. Fig.) 31-3:18 | By Rebate on Bills To Rebate on Bills 1,02,808 | ~ Siscountes 91,503 (on 1-4-17) | Journal Paria Cate [no | EA 2018] | 31-3 | 1. | Rebate on Bils Discounted Ac To Discount on Balls Ale {Geing unexpired discount brought forward from the previous year, credited to Discount Account] 31-3 | 2. [Discount on Bills Ale Or | 1.02,808 192,804 ‘To Rebate on Bills Discounted A/c [Being provision for unexpired discount required at the end of the year] | | | |yO* x retton ishnavi Bank LI as tis War Tee ming w an extact rom Taal Balance of YS Particulars Bills Discounted Bils Discour scouRTed (65 OF VEUAPHT 2017) is rn anaiyeis of the bits discounted and held on 919 i) 5 months: ‘) amon a “ 4 months we be Smontis en {) Calculate the amount of dicount on Bl 0 Be crest fended 3ist March, 2018. (iy Show the necessary Journal Entries in this respect Solution = Calculation of Rebate of Bills Discountes Tenis Amount (®) "|= DuE Ost We ater tel March 205 | Aaa 2,50,000| 6-6-2018 30+31+8=69 z 1/50,000) 13-6-2018 4 200,000 2 3,00,000, 30431 +23 = 64 9,00,000 Rebate on bills discounted Statement Showing Ariount tobe credited to Profit and Loss ACO" Faia TRE: CARES TRON DIE SBS SORES Fransfer from Rebate on Bills discounted as on 1-4-2017 - T35" Siecount received during the year encod March 31, 2078 Less : Rebate on bills discounted as on 31-3:2016 ‘Amount credited to Profit and Loss Ac In the Books of Vaishnavi Bank Ltc. Journal Entries Fine: zi Pariguiars ee 1. | Rebate on Bills Discounted Ale “To Discount on Bills Ac a {peing vansfer of rebate on Bills eiscounted on 1-4-2017 10 25 on bills Alc] 2. | Discount on Bills Alc - ‘To Rebate on Bills Discounted Ale {Being the unexpired Giscount transfered to rebate on ils discounted Alc] Discount on Bills Ae - ‘To Profit and Loss Alc . {Being the amount of discount on bils transferred to Profit ane \ Loss Alc} — Drfon i prea) 1378 3.361 D Diswowk to bo tramfond 0 lee jostration B discounted @ 16%. = elotors a ANATRA| WHAM (= [A To Tah) Dado Bae | . Soon 1 en os lLeed tooo | i March, 2018 (TYGAR april 2011, adapted) aut Journal aie [Hf = Faia or = en 2016 2098) 1. | ome oicouned and purchased Ne om. | 1.20.00 Toceomore We 600 | | tebe $0 juego ot 1.00.00 (econ and purchase 2017 | | 2 | 2. | ona osc and Purchased Ne on | 150,000 | 2 | oa Gesomars me | sz. Towcoun 4 ten [Being bills of € 1,50,000 (X) discounted and purchased] _| | sos]. femene yan 2 08 | 100.000] "Bit scoured and Purchabéa Ne 100.000 [serge payment for el Cw eceved a aoc | rsa ara | 4. [Discount Ale ~ or | 12.000] Reba on Bis counts Ne | 00 TB rat and Lows Ae | 30 sang une’ desount of 4900 cai overt. nxt | \earSnd balance varsiored to Pref ene ote Ae 1.4 | 5, | Rote on els Oscountes We o To beaut Ne 09 isang eksatn he besinnng vandaredte Discount Ae)_| Bill Discounted and Purchased Ale Or. “To Customers Ale To Discount Ae [Being bils of€ 3,00,000 (¥) discounted and purchased] 126 | 7. [Bank Ale or To Bills Rurchased and Discounted Ae 1,50,000 {Being the payment for 148 | 8. [Bank Ne Dr. | 3,00,000 “To Bills Purchased and Discounted Alc [Being the payment for Y's bil received] Bills Discounted and Purchased Ac br. | 480,000 “To Customer's Ac “To Discount Ale {Being bls of 4,50,000 (2) discounted and purchased} 31-3 | 10, [ Discount Ae Be | 40,800 “To Rebate on Bills Discounted Vc 14,400 ‘To Profit and Loss Alc 26,400 [Being unexpired discount of & 14,400 carted over to next year and balance transferted to Profit and Loss Ale]jeconntinn CO savance Finan worming Hotes 1 cateutation of Data of MALY 7 Date’! Bil 7 [osu Boom in Monte seat Bil " 12.200 5 bao! : eon ‘ ; 1d Unexpired D186O! wo. o1 Daye Allo" ‘ayst Mare > carcuttion of Total Discount Recelved 8 Total Discount Renewed: Amount of Bal Total Annus aia Piaogund Pan 1,00,000 150,000 3.00,000 £450,000 _ 7 = . 5 Unexpiedt Dlacouns has been calculated a8 UNAS 1gov0y¥ 3 ‘No.of Days after the close of year oc Total Annual Discount x as Fora bil of € 1,50,000 = € 24,000 x 73/965 = € 4,000 Feu8 pt ot € 4 80,000 = € 72,000 x 73,068 = € 14.400 SESS tuntetion 9 (Bad Debts and Provision For Tax Ales In FA) aaeing balances have been extracted from the books cf @ banking ‘company as on 315t March, 2013 : Bad Debis £500,000 Advances 74,50,00,000 Profit Belore Charging Bad Debts %21,80,000 Fequired Provision for Bad Debts '€7,00,000 Provision fot Taxation to be made 40% of Net Profit Proven eine above items wil appear Inthe banking company’s Profit and Loss Account and Balance Sheet. Solutlon : ‘rotlt and Loss Account (Extracts) For the Year Ending 31st March, 2013 Particulars. © Li siaiewitime betteh enacts ¢y'V 000° 08.8 5 ae: |. Income a 21,80,000 ti, Pisoni - Provisions and Contingencies (WN 1) : 15.80,C00, I Prolivioss- Not Profi for the year : 5.70,000 Balance Shoot (Extracts) as on Stst March, 2013 Padua [Sonoda e Copita & Liab Other Liabltes and Provisions (Wn nae (WN 2) 5 3,860,000 __- Advances (WN 3) 2 67.50,000 Working Notes : (1) Provisions and Contingencies Bad Debts < Provaion fr Bad Dobts Seo obo Provision for Taxation (21,50,000 + 80, ( 5,00,000 - 7,00,000) x 40% 3180.00 15.80.06 wait) (iat (at (ot ba) You ont Bol. all ust The! Bills Cash TermFinal Accounts and Statuory Requirements For Banking Companies ‘Other Liab {2) Provision for Taxation has been shown under he Messing the Balance Shoet (a) The figura of Advances in the Bi opts must have already been deducted from a Iitustratton 10 : (Classitication of Advances) From tho Books of Accounts of New Bank Ltd. 2s regarding Woans and advances given by the Bank in Inc lance Sheet is atter deducting Fr \svances. {)) Loans to Corporate Sector ful secured (axclusing BANKS = liv which siractors are interested) — 08 {i Loan to Mjay Bank Lid, «fully secured ” {ul Debts duo by officers (excluding directors fully sec¥reS) zt {iv) Loans to non-comporate sector «fully secured (0) Loans to Nagik Bank Ltd. - fully secured {ur Dabte duo by Managka, a ciector ofthe Bank «tly Secure {ui) Debts considered good which are unsecured (hn Dubte due by companies in which the directors are intsvesteS {ix) Maximum amount of debts at any time curing the year (») Doubtful Oebts {ui) Provision for Bad and Doubtful Debts {a) Moximum amount of dobts due by officers and dire sooo raquied to show how the items are statutonily requires & of the Bank, Solution NEW BANK LTD. Schedule 9 : Adv: Paricalarey ‘A. (i) Bills Purchased and Discounted {)) Casn Credits, Overcralts and Loans Repayatie on Demand (ii) Term Loans * Total BB. (i) Secured by Tangible Assets and a) Covered by BankiGovernment Guarantees (ii) Unsecured Total . 1. Advances in Indla = (i) Prionty Sectors es Ui) Public Sector 09 (ii) Banks 108. (iv) Others, oo. Total : Ih. Advances Outside tndia () Ouo trom Banks, {i Bue from Other ~ = (0) Bills purchased and discounted {b) Syndicated Loans = ra) (c) Others, Total (C.14 6.1) = uw Grand Total el , Mustration 14 0 {he following are the details of advances ot 4 6 ~ on Pills purchased and discounted 0 1h cradits, and loans repayable on demand rn form foana oe2 oot ose SS cor ze i ose oe pate eieve9 poweg ‘emojoy 5691 van we was (sommpeuos ise) 6, women Tela par iol mel par\e (al yewo bin anion sortentle® Senesie 1A paerent Fane retenn hn an NAA BND \ ANNAN Spats ala wa Sepak oy toh on ale a a aH HOHE yew SeNeH HE tatorwat Eapented Taeeet es) vent Dee pogmreat 0 Sanh) Bank DANO tarevet AY RARNMIN Yea cy jtevonnne pcom. Parl (000) 1,040 1,400 40 150 poawe ewane bbe Ahan Halanoe Sheet of tha Bank only, S MM Hvatration 14s (Pravtaion) coat eso wvertnent € 49 (in 096e) fe nota pat falta |, gIven In tre! coor fe fotowng mnhomaton of AY Bank Lined, eampute the provielona to be mada in the Pratt ang Ler ADOT Fore year (Secured) wo years ann three yeas (Secured) (Sasuree by moitpage of Pant and Machinery € 600 lakhs) oss Assets slutio Cateulation of Amount of Provision to be made in the Profit and Loss Account ne year (Secured) For tao fo thee Years Secure) move thai three years (Unsecured) Foe move than thuee years (Secured) Noo Recoverable Asuets (Loss Assets) Total Provision Required Amount of, | Percentage | Amount of Advances || ot Provision | =Provi (in ahs): SEO 20,000 16,000 6,000 25 4,000 40 1,400 100 6 100 1,600 100 (Pin iakhs) 80 2,400 1,800 1,600 4,400 600 4,500 9,080 ityae mor piso! 0g Bun ek eo pounoaap pus poneyand se vo 2:8 ze ak + Bk spn pu pa se2 UO 1821 eo oar (os@ieoL (vane (a) vave sorerue we {gwieg sos area us 6 psiioos: be sa pus Yan vo jn seg ens2e vo pasttone oa rave sess BunHe UO w % Fae PIE PORES HE a reno oe 98059 PRO re eel oo on o (some ra) a o. 9 seo vo posubooe: oa pious S985 a inoue sosty Buioved vOrse res aun BIR PRBS HG eo7 we syeipiono pus 19019 =" Brsay Burasonog von ee waneaumypuedsa 2o0roe' twouory - ooo’Ik: Proto I, Coes on Exchange Transactions : 250 | elwend, e000) 4,00 1,00 © 000 60 ‘apted) 14,00 10.40 78,40 8.40 1,50 2 275 27 (62) 2.50 Hamat Accounts ana stotmory wequrements Schosulo 18 -Intorost Expanded [en nfoteat wn tant Depoata | ule 16 Operating Expenses ante fo and Provisions for Employees Allowances and Bonus Fund Contabution Hi Printing and Stationery Hil. Advertisement and Publicity IV. Directors’ Fees, Allowances and Exp V. Auitors’ Fees and Expenses Vi. Postage, Talograms, Telephones, otc Vil. Ropaite and Maintenance Total Working Note ‘Standard (3,000 x 0.40%) ‘Sub-standard (1,120 x 15%)" Doubtful not covered by Security (200 x 100%) ‘Doubiul covered by Security for one year (50 x 2 Loss Assots (200 x 100%) Depreciation on Current Investments Cost (75% of 27,50) Less : Markot Value 26% of the folalInveeimante are hold to maturity. ‘nol marked to market value ge bn investments haa been calculatad only on other investments which Gan either Be Haig Isr Tracing (HFT) or Avaliabio for Sale (AFS), IMustration 25 + The following figirés Fave beén obtaitied from the books of the Richie-Rich Bank | ending 31st March, 2018 : Issued and Subscribed Capital Interest and Discount earned Commission and Exchange interest Paid Salaries and Wages Directors’ Fees Rent and Taxes Postage and Telegrams Profit on Sale of Investments Loss on Sale of Investments Rent Received : Depreciation. Stationery Auditors’ Fees ‘Additional Information : 1.,,The profit and loss account had a balance of € 10,00,000 on tst Apri, 2017. : 2. An advance of ® 5,68,000 has become doubtful and itis expected that only 50% of the amount - due can be recovered from the security s9 —ma | Total 0 a “Advanced Fin ” a1 35% 4, tno provisions fr taxbe made a0, 4. Agivdend @ 10% is PrOPOES be distributed a Prepare prott and Loss Account and I 2018. Solution : ichie-Rich Le. 2018 st tne year ended 31 March, profit and Loss Account for Income . Interest Earned 7 4 ther Income : Total 7 I. Expenditure 48 : 6 Interest Expended ‘Operating Expenses Provisions and Contingencies Total Il, Profit/ Loss Net Profit fer the year Profit Brought Forward Total WV, Appropriations. Tranaler to Statuiory Reserve cee Transfer to Other Resorves i Nil Proposed Dividend and Dividend Tax : 117.00 Balance carried over fo Balance Sheet ie 4,574.25 7,935.00 ‘Schedules Sara TT OID EF TDD TFN RT| Rn '0GOTN ‘Schedule 19- Intoreat Earned J._lntarast ang Discount Eamed 3,800 Schedulo 14. Other Income L. Commission, Exchange and Brokerage 195 li, Profit on Sale of Investments ie Lees : Loss on Sale of Investments 2,02 Wl, Rent = 62. Total 459 Schedule 15 - interest Expended L._Interest 2,000 ‘Schedule 16 - Operating Expenses I. Payments and Provisions for Employees etna 210 |, Rent and Taxes - 70 Ile Stationery IV. Directors’ Fees V. Auditors’ Fees Vi. Depreciation VIL. Postages, Telegrams TotalY ey Final Accounts and Statutory Requirements For Banking Companies va , Working Notes : / fedte 1. Calculation of Amount of Income Tax : : pted) Operating Expenses “475+ Provsion fer Doub Debts ee ee Tia provision for Income Tax @ 35% S05 2, provielon and Contingencies —_ : Provision for Doubtful Debts oO ee 284 Lehre poheedogrs os : om 4. Transfer ta Staiuiory Reserve eae ered att, esol € 875 thousand =¥ 249.75 thousand 4 bropaved Dividend & Dividend Tax tredans (10% 1 000 400 “Dividend Tax (17% x 100) 47 ‘ra (000) 7 IMlustration 26 : From the following information, prepare Profit and Loss Account of Tare Jamin Par Bank Lid, for the year ended on 31st March, 2018 Paricilatses| eee interest on Loans 300) Interest on Savings Bank Deposits 87 Interest on Fixed Deposits 275| Postage, Telegram and Stamps 10 Commission 40| Printing and Stationery 20 Exchange and Brokerage ‘Sundry Expenses 40 Salaries and Allowances 18 Discount on Bille (Gross) 19 Interest on Cash Crodits 40 Interest on Temporary Overdratts ' in Current Accounts ‘Additional Information : wa 1. Rebate on bills discounted ¥ 30,000. wa 2. Salary of Managing Director & 30,000. 3. Provision for Bad Debts ¥ 40,000. 800 4. Provision for Income Tax is to be made for € 34,000 and §. Interest of € 4,000 on Doubtful Debts was wrongly credited to interest on loans account 195 Working should form part of your answer. (TYBAF, May 2009, adapted) Solution : Tare Jamin Par Bank Ltd. Profit and Loss Account for the year ended 31st March, 2018 Zin "000 oe uieeeesee (Chrréat Year) 210 1. Income, . 70 interest Eamed . 13 688, 60 Other Income 4 30 35 Total 1. 2 Ul, Expenditure me 1 Interest Expended a Operating Expenses 8 25 as Provisions and Contingencies (WN 1) 74 = Total or ee ee% Proft/ Loss Reebrotat boss Total I Appropriations Feeeerte sinter Reserves Transter to Omer Resets i Butane camped over Baance Shee Total eine ve srovgnt Fo 13 - Interest Earned rect and Descour Recenved (WN 2 ‘Batance of Rebate on Bal OsCOU Senedule 15 ae | Fort Ui, Rent, Tanes enc Lighting I. Printing ane Stationery W. Deector's Fees i ¥. Ausiors Fees Vi. Postages ar Vi, Other Ei Total ary paid wo MO = Working Notes 1. Calculation ef Previsions and Contingencies 000 Provision for Bac Cotas Provision tor Texation a4 " 4 | 2, Interest and Discounts Injorest on Loans Discount on Bilis interest on Cash Crests Interest on Temporary Overcratt Less : Interest on Doubt Debts Tutorial Note : Interest on Sout income onty when it's actualy rece'v y non-performing sssets718 30 Tes 30 362 “150 25 20 10 10 10 255 000 78 dked as interest Final Accounts amd Statuary Hoyntranvente Lor Manblow tangas Hiustrati 27: (Two Yona) From the following information, qroyarm Pal at 1% A AM Hone w oa 66 6418 Palka Fae TET RENE LVN pe vari LA o7.9 oka 9D ist ” A \ Ci \eunn invorost a Discount wal aA Income fromm tnvestmont 4 , invert om faalancon wth FL “hoon Commission, Exchange mi! Trokorage Va) 0 Proton Sala.ofInvestnenta y) we Intorest on Dopota 44 Interest to AD! at Paymota o and Proviion for Emplynnn 1 ae Rent, Taxes and Lighting a) ne Printing and Stationery a Advertisement and Publicly 6 Depreciation s Director's Freon a4 ‘Auditor's Fees 419 Law Charges" a Postage, Telegrams and Tolophones % Incuran 9 w Repair and Maintonanco a % ‘iso give necessary schedules. Further ‘nformation 1. The following lems aro already adjuster with Intaraet anid Diecraunt 4) ny Tax Provision ‘ Provision for Doubttl Dobia % Lee on Sala of investmonts 12 bate on Bila lacountod % 2. Appropriations : 25% of Prolt Is tronsfarrad to Statutory leeerves 5% of Prof Is transforred 1o Revenua Rasery (TDAP, Apri 2012, asopien) Solutio Hiral Bank Profit and Loss Account for the year ended 31-9-2018 000 (ous Edad | oar 3.2016 Nap 925 10i A ta bs| (Currant Yaar) eaokeck ort Income Interest Earned: 13 (Other income “4 Total [ N. Expenditure Interest Expendod 15 Operating Expenses 16 Provisions and Contingencios (WN 1) | Total il, Profit / Los Net Profit / Loss (~) for the year Profit / Loss (~) Brought Forward Totalvs roprinins IN Appeter io Stabe Fanster toe Botan cared otal ‘Schedule 13 - Interest 1. Interest / Discount ti, income en investments Ii, Interest on Balances wit Total in ABI and Other Schedule 14 - Other Income een Smmission, Exchange and Brokerage li, Profit on Sale of Investments Lees: Loss on Sale of Investments Total Schedule 15 - Interest Expended interest on Deposits Ii. Interest on ABUInter-Bank Borrowings Total toter-Bank Fund Schedule 16 - Operating Expenses pen Baymants to and Provision for Employees li, lent, Taxes and Lighting li Printing anc Stationery IV. Advertisement and Publicity V._ Depreciation on the Bank's Property Vi. Director's Fees, Allowances and Expense: Vii, Auditor's Fees and Expenses (including vill,Law Charges Ik. Postage, Telegrams, Telephones, etc X. Repairs and Maintenance Xi, Ineurance Total Mlustration 201 ‘The allowing figures are extracted from tho Piniculars Asean BOT Interest and Discount received Interest Paid on Deposits Issued and Subscribed Capital Salaries and Allowances Directors Fees and Allowances Rent and Taxes Paid Postage and Telegrams Statutory Reserve Fund Commission, Exchange and Brokerage Rent Received Profit on Sale of Investment \ Depreciation on Assets | Statutory Expenses Preliminary Expenses | Auditors’ Fee 3s ‘Branch Auditors) books | ss. |—ses6[ 1886 ef 7 722 1,22 12 (2) a eae | 78e ee e22 e12 iva 27 ss [2.88 38 | 721 158 tar Vie 38 148 110 tio tee 50 2 8 6 7 2 a 96 | 1687 '38,00,160 22,95,260 10,00,000 2,50,000 35,000 41,00,000 65,340 8,00,000 1,90,000 72,000 2,25,800 "40,000 38,000 7 _ 30,000 42,000 ee427 1g Final Acco inal Accounts and Statutory Requirements For Banking Companies 9 Tho following further information is given 1. Acustomor to whom a sum of € 10 takha was advanced has hor In oxpocted only 55% can be rocoverad trom his estat ee 2. There was also other debt for which a provision of € 2.00.00 wns tound necessary 3. Rebate on bil discounted on 1-3-2017 waa ® 15,000 a0 on 91-2.2018 waa ® 20,000 4 Income tax of €2,00,000 Is to bo provided. 5. Wate-off Proliminary Expenses 8. The diroctors dosiro to doclaro 5% dividand. Propare the Profit and oss Account of KLM Bank Ld. forthe Yaa! ended 31-3.2018 and alyo show, how the-Profitiand-Loss Accoun' opening balance was all as on 31-3-2017. Solution : (M.com., Jan. 2019, KLM Bank Limited Profit and Loss Account for the year ended 318t March, 2018 TYBAF, April 2015, CA-Inter, Nov. 2012, eed ADtAihiiinan aaa tds twit appear in the Balance Shest the Prot and Loss Account Lg Bio Em nawn Sehpule| ope Frnaeds a adapted) = (000) S010 SAD: hele ies Svbes.| (Current. Years 1. Income & rf 2 “995 2. Interest Earned wees sel tte 13 37,95,160 ther Income Coa ‘a27.260, Total 262,560 1 Expenditure | —28e60 Interest Expended Sh) eae.ce0 ‘Operating Expenses 16 5,70,340, Provisions and Contingencies (WN 1) 850,000, Total or 37,15,700 I, Profit/ Loss Ket fo for th bork etn rotlt Brought Forware Total [667,260 IV. Appropriations Fransler to Statutory Reserves (25% x 5,67,260) 1,44,815 50,000 Proposed Dividend (5% x 10,00,000) Balance carried over to Balance Sheet Total 567,260 3,75,445 Profit and Loss Account Balance of ¥ 3,75,445 will appear under the head ‘Reserves and Surplus’ in Schedule 2 of the Balance Sheet. Paricularsh= Bivtaaiiae ata) YE 000)4 Schedule 13 - Interest Earned ‘ 1. Interest / Discount on Advances / Bills (Refer WN 2) 37.95,160 Schedule 14 - Other Income 1... Commission, Exchange and Brokerage 1,90,000, 2. Profit on Sale of Investment + 2,256,800 3. Rent received 72,000 Total . 4,87,800 Schedule 15 - Interest Expended \.__ Interest Paid on Deposits 22,985,360 Schedule 16 - Operating Expenses {Payment to and Provision for Employees (Salaries and Allowances) ... |, Rent, Taxes paid ! 7 ood Il. ‘Depreciation of Assets "40,000Advane 7 rowances and EXPeN80* Yi. Stanoory (Law) Expene Vii Portage and Telegram Vin Preary Expenses ( Tota! ‘Working Note 1. Provisions ‘Bak DABTTVO;00;000 X45 Provision for Bad Debt Provision for Tax 12. Interest and Discount Interest and Discount received [Add ; Rebate on Bills discounted on 31-9-2017_ less Rebate on Bils discounted on 31-3:2018 Eas iustration 29 : From {he following tial balance ané propare aBalance Sheet of akshmi 1 th adeltional infomation. Bank 3 a 31st March, 2018 + Bank Ltd. a Scheduled Commercial — lanes: i ‘| Cash Crodits veuem | 121848 Gash in Hand _ 24023 Gash with Reserve Bank of India a e7ez |: Cash with Other Banks == saat | Money at Call and Short Notice : \ sist Gold | sae a ‘Government Securities = 365.25 (Current Accounts ——. 42.00 Promieot : 193.55 | Furniture - e518 | Sch Term Loan 5 4,189.32 A 3,862.53 lance: (20,70,000 Equity Sharee of € 10 each, fully paid up). 297.00 Statutory Reserve . — ~348.50 a Nat Profit far the year (before appropriation) 22500 | Profit and Loss Account (Opening balance) e800 | Fixed Deposit Accounts 77550 | Savings Deposit Accounts ersco | Current Accounts | 79018 | 018 Bus Payable Borrowings trom Other Banks Additional Information : 1. Bills for Collection :€ 18,10,000 i ee 2. Acceptance and Endorsements : €14,12,000 " 3. Claims against the Bank not acknowledged as Debts : € 55,000 4. Depreciation charged on Premises : € 1,10,000 and Furniture : € 78,000 (TYBAF, April 2006, adapted)EM-II1) 35,000 12,000 38,000 65,340 30,000 70,380 x :80,000-— 2,00,000 2.00.00 450,000 e 3,00,160, 18,000 (20.000) 295,160 218.15 240.23 67.82 s3281 315.18 52.84 365.25 4200 193.55 95.18 198.32 {982.33 297.00 346.50 225.00 618.00 775.50 675.00 780.18 015, 185.00, 3,882.93, idapted) Final Accounts and Statutory Requirements For Banking Companies Solution LAKSHMI BANK LTO, on 31st March 2018 Balance Sheet ue in takhs) Capital & Liabilities Capital 1 297.00 Reserves & Surplus ee 1.19950, Deposits a 2200.68 Borrowings 4 165.00 Other Libis and Prc visions 5 V0.5 Total 3662.33 Assets Cash and belance with Reserve Bank of India 6 208.05 Balance with Banks and Money at call and short notice 7 400.99 lnvestments 8 448.09 Agvances % Fixed Assets Total : Contingent Liatlties 2 71487 Bills for Coiection ~ ~ 18.10 : Schedules : hi = a ici ee ‘Schedule 1 - Capital Issued, Subscribed and Called-up Capital (29,70,000 @ & 10) ‘Schedule 2- Reserves and Surplus ; v r (Being Schedule Ul, Profit and Less Alc Opening ‘Add : Current Year (2 2.25,00,000 ~ 86,25,000) Total Schedule 3 - Deposits A. |. Demand Deposits Il, Savings Bank Deposits Ill, Term Deposits Total (1+ 11+ m1) 2,290.68 Schedule 4- Borrowings L_ Borrowings from Other Banks 165.00 Schedule 5 - Other Liabilities and Provisions 1, “Bills Payable 0.15: ‘Schedule 6 - Cash and Balances with Reserve Bank of India L Cash in Hand 24083 Hl. Balances with RBI 67.82 Total © 308.05 ‘Schedule 7 - Balances with Banks & Money at Call & Short Notice 1 Inindia (i) Balances with Other Banks 132.81 (il) Money at Call and Short Notice 315.18 I. Current Accounts 42.00 Grand Total (I+ II) Ezonat Acc 4 Finen Advances 8. Term Loant ‘Assets Schedule 10+ Fi 1 Premises: Cees Depreciation 4 Furniture Lees: Depreciation Tol ‘Schedule 12 : Contingent Liabilities penReceptance and Endorsements Ii, Claims against the Bank not ackno % Imustratfon 30 ‘The folowing is trial balance of OJ Bank Lid. Prepare Balance Sheet 25 OF ey SSS DE | Paricvars RES Free eS a | 120] Share Capita of 100 e82 swlegged as Debts hin Rand Cash with RBI 200| © 50called Cash wiih Other Banks '300| Reserve Fund 3 ney at Call 50| Divicens Equaisation 150| Profit and Loss 50) Current Accounts 350) Savings Bank Dep Investment in Government Securities Shares and Debentures Gola Loans 41,890| Faved Deposits Ellls eiscounted '200| Recurring Deposit Foxod Ascots (at cos!) 2,000| Borrowings Fixod Ageia acquirad In satisfaction’ Branch Adjustment cf claim 60| Unclaimed Owidena ‘Advance Tax 20] Unpaid Dividand Tex Deducied a1 Source 10| Proposed Dividend Acerved invent 170) Provision tor Tax Unexpired Discount Bills Payable Accrued Interest Provision for Depreciation Reserve for Dovbtiul Dees 3570 Other information 1. Bills for collection & 2,00,000. 2. Aclaim by employees for bonus amounting to & 3. Liabilty for partly paid investment & 20,000, 4. Guarantees given on behalf of constituents ® 200 is pending award ot arbi 000. (TYBAF, April 2017, adapted!325 Led i09 415 132 an 7 pted) Final Accounts and Statuary Requirements Hat anking ¢ampanies Solution 4 Want Uma Balance Sheet wa on V8 March, 201% ow 2, Hee ean pel a yA By ae ss BA WHILE Capital & Liabilities | wy Capital ’ LE Reserves & Surplva 2 Me perce: ; 3 orromings ‘ w Other Liabities and Provision —_ Tota i Assets ; Cash and balance wih Reserie Bark Ania ql Baince nn ae ery ata 0 7 Agvances 4 Fixed Asse 0 Otner Asse! | Liabilities Bile tor Collection LLELE PGT Schedule 1 - Capital lil, For Non-Govt. Indian Banks Autherised / lesved / Subscribed Copia! 10,000 Equity Bharas of € 100 each Callod-up Capital 10,006 Eraity Shares of 190 each, 0 6 Schedule 2 - Reserves and Surplus [Statutory Reserves Opening Balance NV, Revenue and Other Reserves Dividend Equalisation Fund Ve Balance in Profit and Lass Account Total Schedule 3 - Cepusits A |. Demand Deposits From Omrers W. Savings Bank Depasite Recuteg Oepeets Mi, Term Ceposits From Oners Total (+ Hs 8. 0) Degas cf Bracches w intsa (i) Degeaits cf Brarche Total Schedule 4- Borrowings 1 Borrowings Schedule 5 - Other Liatilities an Provisions eter fhe bespatrraeing (Me ag pinanelat Aceon ig advance ,O 14 Hh. Unclaimed Dividend IML. Unpaid Dividend IV. Proposed Dividend V. Unexpired Discount Vi, Bille Payable Vil. Accrued Interest Vill. Reserve for Doubitul Debts ie 6 Geni and Balances wih Reser 6 Goan an Gy orag currey NU) Want Recount To Schedule 7 Balances with Banks & Money at Call & ‘Short Notice 1. Inindia (} Balances with Banks (a) in Current Accounts (©) in Other Deposit Accounts (iy Money at Call and Short Notice Total HH, Outside India Grand Total (1+ i) ‘Schedule 8 - Investments [Investments in india (i), Government Securities {iw) Shares and Debentures (vi)Other (lo be specitied) Gold Total Investments Outside India Com. part-ll: SE {i) Cash Credits, Overdrafts and Loans Repayable on Demand Total ©. In/ Outstde India Grand Total 1. Fixed Assots at Cost Lese : Accumulated Depreciation Total ‘Schedule 11 - Other Assets |. Fixed Assets acquired in satisfaction of claim I. Advance Tax ‘Add: TDS Less :; Provision for Tax Il, Accrued Interest : Total . - ‘Schedule 12 : Contingent Liabilities |. Claims by Employee for Bonus Il. Partly Paid Investment Ill. Guarantees on Behalf of Customers Total Grand Total (1 +I!) Schedule 9 - Advances ‘A. (i) Bills Purchased and Discounted 300 1,890 TEMend 2,000 (800) 1.200 Finad Aooonnes and Souruiory Requirements For Ranking Companies Mosteation a rom the fotlowinyg paitioutars the Balance Ranvare St OO) CRNA PEATE Shave Capital ve Fat Fivedt Deposits Saving Deposits Suvrent Aooounts Money at call and ahort notice Bilis discounted and purchased Investments at Cost Cental and State Government Government Securities. Bullion Reserve for Buildings Promises atcost Aktion to Premises: Depreciation Furnd on Premises Cash with RBI Cash with SBH Unclaimed Dividers Unexpired 0 Loans and Advances Branch Agjustment Advance Payment of Tax Interest Accrued on Investment Non-Banking Assote Borrowings from Banks Bills Payables Profit and Lass Account (Profit for the yaar 2.10) Dividend fluctuation (und Total oot of Pragatl Hank Lid ag on 31st March, 2018. 105 Daa woe: (eianhs) | (euakAs)E 10.00 46.00 40.00 60.00 220.00- 200 9.00 100.00 4.00 24.00 100.00 20.00 34.00 12.00 100.00 57.98 2,00 1.10 280 a70 20.00 4.10 6.00 460,34] 480.34 tion for its constituent The Bank had bils for coll was a claim of € 2,00,000 agai discounted was © decided to transfer 2 Solutio (M.com PRAGATI BANK LTD. Balance Sheet as on 31st March 2018 Capital & Liabilities Capital Rosorves & Surplus Deposits Borrowings Other Liabiltis and Provisions Total 1 Assets ash and balance with Reserve Bank of India Balance with Banks and Money at call and short notice Investments Advancos ¥ 9,00,000 and Acceptances & 4,00,000. There at the bank but not acknowledgad as a debt, The liabilities for bills 100, Liabiitles for forward exchanga contract was € 20,00,000. The Directors 1% to statutory reserves & reserve € 2,000 for unexpired di Oct, 2010, 2007, TYBAF, Oct: 19, adapted) -ounts, (000) Sn Ry NosIV, Revenue and Other Reserves V. Balance in Profit Schedule 3 - Deposits A. L Demand Deposits B. (i) Deposits of Branches in india Schedule 4 - Borrowings ‘Schedule 5 - Other Liabilities and Provisions sd Financial Aecounting ( 108 Advances ® Food Assets Other Assets a Total ‘Schedules Schedule-+=Capital Mor Non-Govt. Indian Banks Authorised/ Issued / Subscribed / Called-up Capital 7 Shares of & ? each Schedule 2 - Reserves aiid Surplus I. Statutory Reserve Opening Balance Additions during the Year Dividend Equalisation Fund nu Loss Account Total 4, Savings Bank Deposits Ml Term Deposits Total (1+ H+ Il) (i) Deposits of Branches outside India Total Borrowings In India Contingent Liabilities ae el Bil for Collection M.Com, Part: SEM 28 i Bils Payable ' 2,000 IV, Others (inekiding provisions) 807 | : Total 11.076 Schedule 6 - Cash and Balances with Reserve Bank of india 1 Balances with RBI _ 3,400 30 Schedule 7 - Balances with Banks & Money at Call & Short Notice Lo In india () Balances with Banks 1.200 (i) Money at Call and Short Notice 200 Total 7.400 Mus 1. Outside india NIL From Grand Total (I+ Il) 7,400 fore Schedule 8 - Investments be Investments in India () Government Securities 10,000 (i) Debentures and Bonds ‘400 (w) Other (to be specitied) Sitver Bullion 2,400 Total 72,800a Final Accounts and Seatutory 4 ‘quirements For Banking Compene, {vestments Outside india Grand Total (1 « 1) Schedule 9- Advances (Bis Purch tnd Dtecoutea (8) Cash Credits, Overdrats and U: oans Rey — 7 Tota © in/ Outside inca Grand Tota : ‘Schedule 10 - Fixed Assets == - 1 Premtoee At Cost as on 31st March of the Preceding Year Additions during the Year Total Schedule 11 - Other Assets: |. Inter Office Adjustments (Net) Hl. Interest Accruea Ill, Tax paid in advance / Tax deducted at source \V._ Nor-banking Assets acquired in satisfaction of claims Vi. Other @ Total ‘Schedule 12 : Contingent Liabilities |. Claims against the Bank not acknowledged as Debts LiL. Liability on account of outstanding forward exchange contracts V. Acceptances, Endorsements and Other Obligations Total ability 6r Bills Discounted ose y Notes : (1) Figures for previous year are not available, (2) Amounts are in Thousands as prescribed in the statutory format. Working Notes : 1. Addition to Statutory Reserves = 21,10,000 x 20% = 42,000 2. Balance in P &L Ale ‘As per TB 410.000 Less : Transferred to Statutory Reserve 42,000 Less : Transferred to Reserve for Unexpired Discount 2.000 _ 44.9 3. Other Provision Unexpired Discount (50,000 + 2,000] 52.000 Unclaimed Dividends 24000 Depreciation Fund [10,00,000 + 80,00,000] 92.00.00 QIELOY llustration 32 : (Calculating CRR and SLR) From the following information prepare a Baiance Sheet of Continental Bank Lt as on Stst March, 2018 giving the relevant schedules. ion : = 5 : Jest E ecind awete ee 3,000 Current Accounts ‘Share Capital ; ‘400 Cash Credits 19,00,000 Shares ot € 10 each” | 198.00 Cashin Hand Statutory Reserve ese Cash with FL Not Proit before Appropriation aaney Profit & Loss Alc 412.00 Cashwith othr Banksa { } at.Com. Parte: SEMI, contig vos Advanced Financia sce ved Deposit NE S000 Money at Call Saving Deposit Ale 520.12 Sear eertine o10 Govt Seauten abl p00 Furniture -_ ass Term toons EOE ‘Addiional Information| _ Bit for Caloctions oes Advances and Ensorsomans Claims apainet the Bank act ackrowiedged at debt Depreciation Charges -Premises Furniture ore soothe Term Loans are secured by Government guarantees, 10% ol So ca 0 uate coon roses equre ane aun reserve aed Bee nang and Pofed is 0s of comand and time labities and iqud reserves required 6 30% of ‘oun : Vilar 02, €&1N-94, ad0pted) Solution: Continental Bank Ltd. Balance Sheet as on 31st March 2018 Capital & Liabilities Capital 1 19,800 Reserves & Surplus 2 79,300, Deposits ce 3 348.712 Borrowings 4 11,000 Other Libities and Provisions 5 10 Total [ese Assets Cash and balance with Reserve Bank of India 6 20,878 Balance with Banks and Money at call and short notice 7 35,928 vestments, 8 16.540 Advances i 8 4,83,298, Fixed Assets — 10 22562 Other Assets 1" : Total 28022 Contingent Liabilities 2 1,467 1810 Bills fr Collection ‘Schedules Paice AIRE IS Schedule 1 - Capital I For Non-Govt. Indian Banks Authorised Cepital & Shares of @ each Issued / Subscribed / Called-up Capital 198,000 Shares of 100 each, ~ ash credit is unsecured. | Sehe Schedule 2 - Reserves and Surplus L Statutory Reserves Opening Balance Additions during the Year 23,100 3,000my tea) Vinal Accaunts and Statutary Megquiremens For Banking Companten in Profit and Loss Recount Schedule 1 Deposits Kt Demand Deposits Fro W. Savings Bank Deposits WH, Farm Bepasite «From farts 1) 1 Branches nda Branches outs India f. () Dagon (a) Depa Total Schedule 4 Borrowings |. Borrowings In india - Othar Barks Fehedule 5 Other Liabilities and Provisions ts Payable eves Cash ard alpces wih Reser Bankr Sereaae 6 Gra sloseg Foran Cure a =| Seen anih man caret four raat ances with Banks & Money at Call & Short Notice 16.018 4461 0.476 Schedule 7 ninco 4) Money ai Cal ar Total 1, Oxide iia Grand Total (1+) Gehadule &- Investments re pvestments in India In (), Goverment Securtios ee 11017. (8) 60 |___ 5,523 Total 16.540 1. investments Outside india Grand Total (1+) T6540 Schedule 5 - ha vances A. () Bila Purchased end Disenunted s - 1 Coen crass, Oversrats 2rd Loans Repayable on Demand 84,010 (ay Terr Loans 73,288 Teta “1.63.28 8. 6) Seemed by Tangitle Assets (Grane as ant none 163,258 ©. in| Outside india : ae ___ Grand Total 763.298) Schedule 10- Fixed Assets Ez = 1 Premives #1 Conk 29 on Fiat March of the Preceding Year 15,680 Cagresiaion to Date