Accounts of Banking Companies

Yathiraju K M.Com., MBA., NET., Seshadripuram Academy of Business Studies K S town B’lore 60

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FINAL ACCOUNTS OF BANKING COMPANIES

1. From the following particulars prepare profit and loss account of HDFC bank Ltd. for 2012-13 Particulars `

Interest on loans 34,900 Interest on fixed deposits 36,500 Rebate on bills discounted 4,800 Commission charged on customers 910 Office expenses 15,500 Discount on Bills discounted 19,400 Interest on cash credits 22,400 Balance of Profit and loss A/c 1,200 Rent and taxes 1,800 Interest on overdraft 12,800 Director’s Remuneration 420 Interest on savings deposits accounts 6,900 Postal Expenses 150 Printing and Stationery 390 Other expenses 180

[Ans: Profit for the Year ` 23,770]

2. From the following particulars, prepare the profit/loss account of ICICI Bank Ltd. for the year ended 31-03-2014

Particulars ` Interest on loans 2,59,000 Interest on fixed deposits 2,75,000 Rebate on bills discounted 49,000 Commission charged on customers 8,200 Establishment Expenses 54,000 Discount on bills discounted 1,95,000 Interest on cash credits 2,23,000 Interest on current account 42,000 Rent and Taxes 18,000 Interest on overdrafts 54,000 Director’s and Audit fees 4,200 Interest on Savings Bank deposits 68,000 Postage and telegrams 1,400 Printing and Advertisement 2,900 Sundry charges 1,700

[Ans: Profit for the Year ` 2,23,200]

3. From the following information, prepare profit/loss account of Money bank Ltd. for the year ended 31-03-1993

Particulars ` Interest on loans 25,90,000 Interest on fixed deposits 27,50,000 Commission 82,000 Establishment charges 5,04,000 Interest on cash credit 22,30,000 Interest on current account 42,000 Discount on bills discounted 14,60,000


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Interest on Current and savings deposits 11,00,000 Rent and Rates 1,80,000 Interest on overdrafts 15,40,000 Director’s fees 30,000 Auditor’s fees 12,000 Postage and Telegrams 14,000 Printing and Stationery 29,000 Sundry charges 17,000

Bad debts to be written of amounted to Rs. 4,00,000. Provided for taxation at 55%. Rebate on bills discounted Rs. 40,000.


4. From the following particulars, prepare P/L account of SBI Bank Ltd. for the year ended on 31-03-1994

Particulars ` Interest on loans 51,800 Interest on fixed deposits 55,000 commission received 1,600 Salaries and allowances 10,800 Discount on bills discounted 29,200 Rebate on bills discounted 9,800 Interest on cash credits 44,600 Interest on current accounts 8,400 Rent and Taxes 3,600 Interest on overdrafts 30,800 Director’s fees 600 Auditor’s fees 200 Interest on Savings bank deposits 13,600 Postage and Telegrams 300 Printing and Stationery 600 Locker rent 200 Transfer fees 100 Depreciation and Bank properties 1,000 Sundry Charges 400

Other information (i) Provision for bad debts Rs. 8,000 (ii) Provision for Income Tax Rs. 30,000


5. From the following particulars, prepare profit/loss account ofRadha Bank Ltd. for 1994-95.

Particulars ` Interest on loans 35,000 Interest on fixed deposits 36,000 Commission received 1,000 Office Expenses 15,000 Discount on bills discounted 20,000 Interest on cash credits 23,000 Balance of Profit/loss A/c 1,200 Rent and Taxes 1,800


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Interest on overdraft 12,900 Director’s Remuneration 450 Interest on savings deposits 7,000 Postal expenses 150 Printing and Stationery 400 Other expenses 200


6. From the following information, you are required to prepare the profit and loss account of Krishna Bank Ltd for the year ended 31-3-98

Particulars ` (in ‘000) Interest on loans 518 Interest on cash credits 446 Discount on bills discounted 390 Interest on overdrafts 108 Interest on Savings bank deposits 220 Interest on fixed deposits 554 commission, Exchange and brokerage 16.4 Rent, Tax and Lighting 36 Auditor’s fees 2.4 Postage, Telegrams and Telephones 2.8 Sundry Charges 2 Advertisement and publicity 1.4 Director’s fees 6 Printing and Stationery 0.4 Law charges 1.4 Payment to employees 108 Locker rent 0.7 Transfer fees 1.4 Depreciation and Bank properties 10

Supplementary Information: (i) Rebate on bills discount Rs. 9,800 (ii) Provide for bad debts Rs. 58,000

[Ans: Profit for the Year ` 380.1]

7. From the following information, prepare profit and loss account of Bajaj Bank Ltd. for the year ended 31-03-1999

Particulars ` (in ‘000) Interest on loans 2,590 Interest on fixed deposits 3,170 Commission 82 payments to employees 540 Discount on bills discounted 1,060 Interest on cash credit 2,230 Rent, Tax and Lighting 180 Interest on overdraft 1,540 Director’s fees, Allowances and Expenses 30 Auditor’s fees and Expenses 12


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Interest on savings bank deposits 680 Post, telegram and telephones 14 Printing and Stationery 29 Sundry charges 17

Additional Information: 1. Provide for contingencies Rs. 2,00,000 2. Transfer Rs. 2,00,000 to Central Government. 3. Transfer Rs. 15,57,000 to Reserve fund.


8. From the following information, prepare profit and loss account of IBM Bank Ltd. for the year ended 31-03-2000 with necessary schedules.

Particulars ` (in ‘000) Interest/discount on advances/bills 31,628 Income on Investments 11,810 Interest on balances with RBI 4,243 Commission, Exchange and Borrowings 2,907 Profit on sale of investments 114 Interest on deposits 31,404 Interest on RBI borrowings 3,361 Payment to and provision for employees 9,717 Rent, taxes and lighting 955 Printing and Stationery 213 Advertisement and publicity 87 Depreciation on Bank’s property 292 Director’s fees, allowances and expenses 7 Auditor’s fees and expenses 41 Law charges 22 Postage, telegram, telephones etc. 312 Repairs and maintenance 91 Insurance 915 Other expenditure 884 Balance of Profit/Loss A/c b/f 1,524

Adjustments: 1. Make a provision for income tax (including surcharge) at 51.75%. 2. Every year, the bank transfers 20% of Profit to statutory Reserve and 5% of Profit to Revenue Reserve. 3. Dividend amounting to Rs. 2,00,000 for the year ended 31-03-2000 is proposed to Board of Directors.


9. The following balances have been taken from the books of Wipro Bank Ltd. on 31-03-2001

Particulars ` Particulars ` Paid up Capital 10,00,000 Furniture 20,000 Local Bills Discounted 9,00,000 Fixed Deposits 20,00,000 Reserves Fund 3,85,000 Profit and Loss a/c - Balance(Cr) 1,10,000 Loans, Advances 14,00,000 Stamps on hand 5,000 Unpaid dividend 5,000 Cash Balance 2,50,000 Overdrafts 23,00,000 Cash Balance with other Banks 6,50,000 Current and Savings Deposits 25,00,000 Investments (Cost) 4,75000


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The directors of the bank have instructed that the investment should be shown in the Balance sheet at the Market value of Rs. 5,25,000 The authorized capital of the Bank was Rs. 12,00,000 in Rs. 10 shares. Prepare the Balance sheet of the Bank, as on 31-03-2001

(Bangalore University B.Com., Apr. 1993) [Ans: Balance Sheet ` 60,50,000]

10. From the following balances have been taken from the books of Axis Bank Ltd. on 31-03-2001

Particulars ` Particulars ` Share Capital (2,000 shares) 2,00,000 Money at call 9,00,000 Premises 1,00,000 Profit and Loss A/c 45,000 Rebate on Bills Discounted 5,000 Investments 7,00,000 Traveller’s Cheque 2,00,000 Bills Purchased 15,00,000 Deposits 56,00,000 Acceptances for customers 5,00,000 Loans 22,00,000 Bills for collection 4,00,000 Reserves 3,00,000 Depreciation Fund on Premises 10,000 Cash in hand 30,000 Cash with RBI 5,20,000 Cash with other Banks 4,50,000 Pension Fund 40,000

The following were completely omitted while the above balances were calculated. They should be adjusted suitably. 1. Travellers Cheque Paid Rs. 10,000. 2. Money at call recovered Rs. 20,000.

(Bangalore University B.Com., Nov. 1993) [Ans: Balance Sheet ` 63,80,000]

11. From the following balances have been taken from the books of Dhanalakshmi Bank Ltd. on 31-03-2001

Particulars Debit Credit Subscribed Capital 50,000 equity shares of Rs. 10 each 5,00,000 Reserve fund 2,50,000 Loans, Cash credit and Overdraft 2,85,000 Premises 50,000 Indian Government Securities 4,00,000 Current Deposits 1,00,000 Fixed Deposits 1,25,000 Savings Bank Deposit 50,000 Salaries 28,000 General Expenses 27,400 Rent, Rates, and Taxes 2,300 Director’s Fees 1,800 Profit and Loss A/c 1-4-2000 16,000 Interest and Discount 1,28,000 Stationery and Stamps (stock of) 8,500 Bill Purchased and Discounted 46,000 Interim Dividend paid 17,000 Recurring Deposits 20,000 Shares 50,000 Cash in hand and with RBI 1,93,000 Money at call and Short Notice 80,000


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11,89,000 11,89,000 Additional Information: 1. Provision for bad doubtful debts required is Rs. 5,000/-. 2. Interest accrued on investments is Rs. 8,000. 3. Unexpired discount amounts to Rs. 380. 4. Interim dividend declared was 4% actual. 5. Rs. 10,000 was added to the premises during the year. 6. Endorsement made on behalf of customers totaled Rs. 1,15,000. 7. Market value of Government of India Securities was Rs. 3,90,000.

Prepare Profit and Loss A/c for the year ended 31-03-2001 and Balance sheet as at the date in prescribed form.

[Ans: Profit for the Year ` 67,120 and Balance Sheet ` 11,16,500]

12. SWIZ Bank Ltd. presents its ledger balances on 31-03-2002. Particulars `

Loans 4,00,000 Cash credits 1,00,000 Overdrafts 70,000 Premises 1,00,000 Investments 8,00,000 Salaries 56,000 General Expenses 54,800 Rent, Rates and Taxes 4,600 Director’s fees 3,600 Stock of Stationery 17,000 Bills purchased 92,000 Cash in hand 2,00,000 Cash with RBI 1,86,000 Money at call 1,60,000 Share Capital 10,00,000 Reserve fund 5,00,000 Current A/c 2,00,000 Fixed deposits 2,50,000 S.B.Deposit 50,000 Cash certificates 50,000 Profit/Loss A/c 1-4-2001 (Cr.) 32,000 Interest and Discounts 2,56,000 Interim Dividend 34,000 Shares in Company 1,00,000 Recurring Deposits 40,000

Other Information: 1. Provide for doubtful debts Rs. 10,000. 2. Interest Receivable on investment Rs. 16,000. 3. Unexpired discounts Rs. 760 4. Interim Dividend declared was 4% actual. 5. Endorsement and Guarantee Rs. 2,00,000. 6. Additions made to premises during the year Rs. 20,000. 7. Depreciation premises at 5% on opening balance. Prepare Profit/Loss Account and Balance Sheet of the Bank.

[Ans: Profit for the Year ` 1,38,240 and Balance Sheet ` 22,37,000]


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13. Following is the Trial Balance of Sathyam Bank Ltd. as on 31-03-2003. Prepare Bank final accounts.

Debit Balance: ` Premises 2,10,000 Money at call and Short notice 2,50,000 Furniture 25,000 Cash in hand 2,50,000 Cash at Bank 3,00,000 Investments 1,50,000 Loan and Cash Credit 11,23,500 Interest on deposits 1,50,000 Audit fees 5,000 Salaries 40,000 Director’s fees 2,500 Printing and Stationery 2,500 Depreciation 5,000 Non-Banking Assets 25,000 Other Expenditure 1,500 25,40,000

Credit Balances: Interest and Discount 2,50,000 Share Capital 5,00,000 Reserve fund 2,50,000 Deposit 7,50,000 Telegraphic transfer 2,50,000 Traveller’s letter of credit 2,50,000 Pay order and Gift cheques 50,000 Pension fund 75,000 Borrowings from banks 50,000 Unclaimed Dividend 30,000 Rent 10,000 Commission received 40,000 Profit/Loss A/c 30,000 Bills payable 5,000 25,40,000

Adjustments: 1. Provide Rs. 2,500 for rebate on bills discounted. 2. Liabilities on bills rediscounted Rs. 5,000. 3. Bills for collection amounted to Rs. 1,50,000. 4. Provide Rs. 500 for bad debts. 5. Provide for income tax Rs. 2,000. 6. Director’s proposed 5% dividend on share capital. 7. Liabilities outstanding of forward exchange contract Rs. 2,500.


14. Following is the Trial Balance of Jayram Bank Ltd. as on 31-03-2003. Prepare Bank final accounts.

Particulars Debit Credit Share capital 3,00,000


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Cash in hand and with RBI 46,350 Investment in Government of India Bonds 1,94,370 Other investments 1,55,630 Gold Bullion 15,130 Interest accrued on Investments 24,620 Security Deposits of Employees 15,000 Savings Bank A/c 7,420 Current Ledger control A/c 97,000 Fixed deposits 23,050 Share Premium A/c 90,000 Statutory Reserve 1,40,000 Silver Bullion 2,000 Constituents liability for acceptances and endorsements 56,500 Buildings 65,000 Furniture 5,000 Borrowings from Banks 77,230 Money at call and Short Notice 26,000 Advances 2,00,000 Profit/Loss A/c balance 6,500 Bills discounted and purchased 12,500 Bills for collection 43,500 Acceptances and Endorsements 56,500 Interest 7,950 72,000 Commission and Brokerage 25,300 Discounts 42,000 Bills Receivable being bills for collection 43,500 Audit fees 5,000 Loss on sale of furniture 1,000 Director’s fees 1,200 Salaries 21,200 Postage 50 Rent 600 Profit on Bullion 1,200 Managing Director’s Remuneration 12,000 Miscellaneous income 2,700 Loss on sale of investments 30,000 Deposit with other banks 75,000 Branch Adjustments 20,000 Depreciation Reserve on Buildings 20,000 10,20,000 10,20,000

You are required to prepare Profit/Loss account for the year ended 31-03-2003 and Balance Sheet after considering the following: 1. Provide rebate on bills discounted Rs. 5,000. 2. A scrutiny of the Current Account ledger reveals that there are accounts overdrawn to the extent of Rs. 25,000 and the total of Credit Balance is Rs. 1,22,000. 3. Claims by employees for bonus amounting to Rs. 15,000 is pending award for arbitration. 4. Depreciation on building for the year amount to Rs. 5,000. 5. Director’s proposed a dividend of 8%.


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15. Following is the Trial Balance of Audi Bank Ltd. as on 31-03-2004.

Particulars Debit Credit Interest and Discount 2,60,000 Share Capital 6,00,000 Reserve Fund 3,00,000 Deposits 8,00,000 Telegraphic transfer 2,00,000 Traveller’s letter of credit 3,00,000 Gift cheques 60,000 Pension fund 1,00,000 Borrowings from Bank 75,000 Unclaimed Dividend 25,000 Rent 20,000 Commission 50,000 Profit/Loss A/c on 1-4-2003 40,000 Bills payable 10,000 Buildings 2,50,000 Money at call and Short Notice 2,75,000 Furniture 40,000 Cash in hand 2,75,000 Cash at bank 3,25,000 Investments 1,75,000 Loan, Cash credit and overdrafts 11,40,000 Interest on deposits 1,75,000 Audit fees 10,000 Salaries 50,000 Director’s fees 5,000 Printing and Stationery 5,000 Depreciation 7,500 Non-Banking Asset 1,00,000 Other Expenditure 7,500 28,40,000 28,40,000

Adjustments: 1. Provide Rs. 5,000 for rebate on bills discounted. 2. Bills for collection amounted to Rs. 10,500. 3. Provide Rs. 1,250 for bad debts. 4. Provide Rs. 2,500 for income tax. 5. Liabilities on Bills rediscounted Rs. 7,500. 6. Liabilities outstanding on forward exchange contractor Rs. 3,000. 7. Director’s propose 5% dividend on share capital.

Prepare Bank Accounts. [Ans: Profit for the Year ` 61,250 and Balance Sheet ` 25,80,000]

16. From the following is the Trial Balance of Benz Bank Ltd. Prepare Profit/Loss Account for the year

ending 31-03-2005 and Balance sheet as on the date.

Particulars Debit Credit Paid Up capital 10,00,000


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Money at call and Short notice 4,00,000 Reserve fund 2,50,000 Cash on hand 5,00,000 Cash with RBI 2,00,000 Fixed Deposits 12,00,000 Loans, cash creditors etc. 15,00,000 Investments 2,00,000 Borrowings from Citi Bank 3,00,000 Pension Fund 1,00,000 Unclaimed Dividend 50,000 Furniture less Depreciation 80,000 Premises less Depreciation 3,20,000 Rent 10,000 Interest and Discounts 6,00,000 Commission Received 60,000 Salaries and allowances 90,000 Interest on Deposits and Borrowings 3,10,000 Audit fees 8,000 Director’s fees 7,000 Depreciation on Bank property 9,000 Printing and Stationery 4,000 Other expenses 2,000 Profit/Loss A/c 1-4-2004 60,000 Total 36,30,000 36,30,000

Adjustments: 1. Provide Rs. 5,000 for rebate on bills discounted. 2. Provide Rs. 22,000 for bad debts. 3. Bills for collection on behalf of customers Rs. 50,000. 4. Provide for taxation Rs. 4,000 [Ans: Profit for the Year ` 2,09,000 and Balance Sheet ` 32,00,000]

17. The following is the Trial Balance of BMW Bank Ltd. as on 31-03-2006.

Particulars Debit Credit Subscribed Capital (1,00,000 Shares of Rs.20 each) 20,00,000 Reserved fund 6,00,000 Loans, cash credits 59,40,000 Premises 2,00,000 Indian Government Securities 12,00,000 Current Deposits 44,00,000 Fixed Deposits 5,00,000 Savings Bank deposits 2,00,000 Salaries 1,12,000 General Expenses 1,09,600 Rent and Taxes 9,200 Director’s fees 7,200 Profit/Loss a/c 1.4.2005 64,000 Interest and Discounts 5,12,000 Telegraphic Transfer 2,00,000 Circular Notes 1,00,000


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Branch Adjustments 1,00,000 Stock of Stationery 34,000 Bills purchased and discounted 1,84,000 Interim Dividend paid 68,000 Recurring Deposits 80,000 Shares 2,00,000 Cash in hand and with RBI 3,72,000 Money at call and Short Notice 3,20,000 Total 87,56,000 87,56,000

Additional information: 1. Provide for doubtful debts Rs. 15,000. 2. Interest accrued on investments Rs. 20,000. 3. Unexpired discount Rs. 1,200. 4. Endorsement on behalf of customers Rs. 2,00,000. 5. Premises added during the year Rs. 20,000. 6. Depreciate premises at 5% on opening balance.

Prepare Bank Final Account. [Ans: Profit for the Year ` 2,68,800 and Balance Sheet ` 84,61,000]

18. The following is the Trial Balance of Govinda Bank Ltd. as on 31-03-2007. Prepare Bank final accounts.

Particulars Debit Credit Issued and paid-up capital shares of Rs. 100 each 15,00,000 Profit and Loss A/c balance as on 1-4-2006 40,000 Fixed Deposits 26,00,000 Savings Bank A/c 21,00,000 Current A/c 34,00,000 Commission and Exchange 1,02,000 Bills Payable 1,00,000 Interest and Discount 6,00,000 Investment Reserve 25,000 Reserve Fund 3,10,000 Investment in Government Securities 5,75,000 Cash in hand and with RBI 7,00,000 Deposit with other Banks 12,45,000 Money at call and Short notice 4,00,000 Loans. Advances and Overdrafts 74,00,000 Furniture 45,000 Buildings 2,00,000 Salaries and allowances to staff 85,000 Interest on Deposits and Borrowings 1,75,000 Unexpired Insurance 450 Stamps in Hand 150 Contribution to Provident Fund 18,400 Director’s fees 4,500 Audit fees 1,500 Printing and Stationery 3,550 Rent, Rates and Taxes 6,450 Postage and telegrams 800 Branch Adjustment 25,000


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Pension fund 58,800 1,08,60,800 1,08,60,800

Additional Information: 1. Market value of Investments as on 31-03-2007 was Rs. 5,48,000. The investments were written down to this figure. 2. Provide for- (a) Taxation Rs. 75,000. (b) Doubtful debts Rs. 50,000. (c) Rebate on bills discounted Rs. 25,000. 3. Acceptances, endorsements and other obligation Rs. 2,50,000. 4. Depreciate Buildings at 2 ½ %.

[Ans: Profit for the Year ` 2,49,800 and Balance Sheet ` 1,05,33,600]

19. The following is the Trial Balance extracted from the books of HSBC Bank Ltd. You are required to prepare Profit/Loss and Balance Sheet as at 31-3-2008 after taking into consideration the adjustments given below:

Particulars Debit Credit 60,000 Equity Shares of Rs. 10 each 6,00,000 3,00,000 8% Preferential Shares of Rs. 10 each 3,00,000 Fixed Deposits 3,50,000 Savings Bank Account 2,50,000 Current A/c 6,00,000 Reserve Fund 3,00,000 Interest and Discount 3,00,000 Money at Call and Short Notice 3,00,000 Cash in hand 3,00,000 Cash at Bank 3,60,000 Investment in Government Securities 1,80,000 Loans and Cash Credits 13,48,200 Furniture 30,000 Premises 2,52,000 Interest on Deposits 1,80,000 Salaries 48,000 Audit fees 6,000 Director’s fees 3,000 Depreciation on Bank Property 6,000 Printing and Stationery 3,000 Non-Banking Assets 30,000 Other Expenditure 1,800 Profit and Loss A/c (1-4-2007) 42,000 Unclaimed Dividend 1,20,000 Pension fund 36,000 Borrowings 90,000 Rent 12,000 Commission 48,000 30,48,000 30,48,000

Adjustments: 1. Provide for bad debts Rs. 10,000. 2. Provide for Rebate on bills discounted Rs. 4,000.


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3. Acceptance on behalf of customers Rs. 5,00,000. 4. Bills for collections Rs. 4,80,000.


20. The following is the Trial Balance of Standard Chartered Bank Ltd. as on 31-03-2009.

Particulars Debit Credit Subscribed capital (50,000 Shares of Rs. 20) 10,00,000 Reserve Fund 3,00,000 Loans and cash credits 29,70,000 Premises 1,00,000 Indian Government securities 6,00,000 Current Deposits 22,00,000 Fixed Deposits 2,50,000 Savings Bank Deposits 1,00,000 Salaries 56,000 General expenses 54,800 Rent and Taxes 4,600 Directors Fees 3,600 Profit and Loss A/c 1-4-2008 32,000 Interest and discount 2,56,000 Telegraphic transfer 1,00,000 Circular note 50,000 Branch adjustments 50,000 Stock of stationery 17,000 Bills purchased and discounted 92,000 Interim dividend paid 34,000 Recurring deposits 40,000 Shares 1,00,000 Cash in hand and RBI 1,86,000 Money at call and short notice 1,60,000 43,78,000 43,78,000

Additional Information: 1. Provide for doubtful debts – 5,000 2. Interest accrued on investments – 8,000 3. Unexpired discount – 380 4. Endorsements on behalf of customers – 1, 15,000 5. Premises added during the year – 20,000 Depreciation premises at 5% on opening balance. Prepare bank final accounts. (Bangalore University B.Com., Apr. 1996)


21. The following are the Ledger Balances of State Bank of Mysore. From the given Trial Balance prepare Profit and Loss Account and Balance Sheet as at 31-3-2010.

Particulars Debit Credit Share Capital 20,000 Shares of Rs. 100 each 20,00,000 Bad debts 1,28,710 Reserve Fund Investments 10,00,000 Reserve Fund 10,00,000


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General Expenses 1,82,420 Current Accounts 2,02,44,220 Interest Paid 1,60,520 Deposit Accounts 69,20,230 P&L A/c (Cr.) 1-4-2009 2,29,340 Acceptances for customers 15,42,820 Discount 2,43,760 Endorsements and guarantees 74,020 Commission 44,240 Cash 2,26,540 Interest Received 5,32,260 Cash with RBI 20,12,100 Endorsements guarantees (Control) 74,020 Owing by foreign correspondents 2,00,440 Customers liabilities for acceptances 15,42,820 Short Loans 64,82,060 Loans and Advances 1,54,56,700 Investments 98,82,540 Bills discounted 62,28,240 Premises 22,17,900 3,93,12,950 3,93,12,950

Adjustments: 1. Reserve Rs. 64,380 for Rebate on Bills discounted. 2. Provide for Taxation Rs.20,000. 3. Depreciate premises at 10%. 4. The Profit and Loss Account balance is the balance left on that account after the payment of Interim

dividend amounting to Rs. 2,00,000. (Bangalore University B.Com., Apr. 1997)

[Ans: Profit for the Year ` 42,440 and Balance Sheet ` 3,70,02,670]

22. Krishna Bank ltd. has the following bills to be discounted on 31.03.2012 Date of bill Amt Term Rate of discount 10.01.2012 9,00,000 3 months 10% 16.02.2012 7,00,000 4 months 12% 11.03.2012 5,00,000 3 months 11%

Calculate rebate on bills discounted as on 31.03.2012 (Bangalore University B.Com., Nov 2012 and 2010)

[Ans: Total Rebate on Bills discounted ` 32,917] 23. Shanta Bank Ltd. provides the following information for the year ending 31st march 2012.

Particulars Rs Interest on overdraft 3,12,000 Discount on bills discounted 7,20,000 Interest on loans 12,40,000 Interest on SB A/c 4,60,000 Commission, Exchange and brokerage 3,40,000 Interest on FD 10,20,000 Lockers rent 1,60,000 Transfer fees 1,86,000 Administrative expenses 3,56,000 Interest on cash credits 8,56,000 Adjustments


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1. Rebate on Bills discounted Rs. 1,92,000 2. Provide for Bad and doubtful debts Rs. 1,20,000 Prepare Profit and Loss account for the year ended 31st March 2012.

(Bangalore University B.Com., Nov 2012) [Ans: Profit for the Year ` 16,66,000]

Adjustments: 1. Endorsements Made on behalf of customers totaled to Rs. 1,15,000 2. Unexpired discount amounted to Rs. 380 3. Interest accrued on investment Rs. 8,000

(Bangalore University B.Com., Nov 2012) [Ans: Profit for the Year ` 1,27,620 and Balance Sheet ` 22,16,000]

25. On 31st march 2010, Vijaya Bank had a balance of Rs. 9 crores in rebate on bills discounted. During the year ended 31st march 2011, it discounted bills of exchange of Rs. 4,000 crores charging interest at 18% p.a. the average period of discount being 73 days. Of these bills of exchange of Rs. 600 crores were due for collection from the acceptors/customers after march 31st 2011. The average period outstanding after 31st march 2011 being 36.5 days. Give journal entries.

(Bangalore University B.Com., Nov 2011)


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[Ans: Balance Sheet ` 1,27,60,000]




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[Ans: Balance Sheet ` 72,66,500]

29. Srinidi Bank Ltd. has discounted the following bills during the year ended 31.12.07 at discount of 5% p.a. Amount Due date 1,00,000 31.01.2008 80,000 30.04.2008 60,000 03.03.2008

Calculate rebate on bills discounted (Bangalore University B.Com., Dec 2009)

[Ans: Total Rebate on Bills discounted ` 2,348]


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(Bangalore University B.Com., Dec 2009 and Dec 2006)



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(Bangalore University B.Com., Dec 2007)



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(Bangalore University B.Com., Dec 2007)

[Ans: Profit for the Year ` 5,47,000 and Balance Sheet ` 3,70,02,670]

Accounts of Banking Companies

Documents

savings bank deposits

fixed deposits

following particulars

bills discounted rs

savings deposits accounts

directors fees

bank properties

loss account of hdfc