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Page 1 Preparation of Profit and Loss Account Problem No. 1 Prepare a Profit and Loss account of ABC Bank Ltd for the year ended 31.3.2018 from the following: Particulars Rs. Rs. Interest on Fixed Deposits 162410 Rebate on Bills discounted 29000 Interest on Loans 45000 Commission charged to Customers 62500 Establishment 15000 Discount on Bills discounted 89000 Interest on Cash Credit 24000 Amount charged against Current Accounts 71500 Directors' Fees 10000 Audit Fees 20000 Postage and Telegram 2000 Printing and Stationery 4000 Rent and Taxes 22500 Interest on Overdraft 71000 Sundry Charges 1500 Interest on Savings Bank Deposits 57780 Solution: Profit and Loss Account for the Year ended 31.3.2018 Particulars Schedule Rs. I. Income Interest Earned 13 271500 Other Income 14 62500 Total 334000 II. Expenditure Interest Expended 15 220190 Operating Expenses 16 75000 Total 295190 III. Profit and Loss Profit for the year 38810 IV. Appropriation Transfer to Statutory Reserve 9702.5 Balance to Balance Sheet 29107.5 38810 Page 2 Preparation of Profit and Loss Account Problem No. 1 Prepare a Profit and Loss account of ABC Bank Ltd for the year ended 31.3.2018 from the following: Particulars Rs. Rs. Interest on Fixed Deposits 162410 Rebate on Bills discounted 29000 Interest on Loans 45000 Commission charged to Customers 62500 Establishment 15000 Discount on Bills discounted 89000 Interest on Cash Credit 24000 Amount charged against Current Accounts 71500 Directors' Fees 10000 Audit Fees 20000 Postage and Telegram 2000 Printing and Stationery 4000 Rent and Taxes 22500 Interest on Overdraft 71000 Sundry Charges 1500 Interest on Savings Bank Deposits 57780 Solution: Profit and Loss Account for the Year ended 31.3.2018 Particulars Schedule Rs. I. Income Interest Earned 13 271500 Other Income 14 62500 Total 334000 II. Expenditure Interest Expended 15 220190 Operating Expenses 16 75000 Total 295190 III. Profit and Loss Profit for the year 38810 IV. Appropriation Transfer to Statutory Reserve 9702.5 Balance to Balance Sheet 29107.5 38810 Schedule 13: Interest Earned Rs. Schedule 15: Interest Expended Rs. Interest on Loan 45000 Interest paid on Fixed Deposits 162410 Interest on Cash Credit 24000 Interest paid on Savings Bank Deposits 57780 Interest on Overdrafts 71000 220190 Discount on Bills discounted 89000 Less: Rebate on Bills discounted -29000 Schedule 16: Operating Expenses Rs. Amount charged against current Account 71500 Establishment Expenses 15000 271500 Director Fees 10000 Audit Fees 20000 Schedule 14: Other Income Rs. Rent and Taxed 22500 Commission charged to customer 62500 Postage and Telegrams 2000 Printing and Stationery 4000 Sundry Expenses 1500 75000 Problem No. 2 The following financial data extracted from the books of Sri Krishna Bank Limited as on 31.3.2019: Particulars Rs. Interest on Fixed Deposits 36500 Rebate on Bills discounted 4800 Interest on Loans 34900 Commission charged to Customers 910 Office Expenses 15500 Discount on Bills discounted 19400 Interest on Cash Credit 22400 Directors' Fees 420 Postal Expenses 150 Printing and Stationery 390 Rent and Taxes 1800 Interest on Overdraft 12800 Other Expenses 180 Interest on Savings Bank Deposits 6900 Required: Prepare a Profit and Loss Account as on 31.3.2019 Solution: Profit and Loss Account for the Year ended 31.3.2019 Particulars Schedule Rs. I. Income Interest Earned 13 84700 Other Income 14 910 Total 85610 Page 3 Preparation of Profit and Loss Account Problem No. 1 Prepare a Profit and Loss account of ABC Bank Ltd for the year ended 31.3.2018 from the following: Particulars Rs. Rs. Interest on Fixed Deposits 162410 Rebate on Bills discounted 29000 Interest on Loans 45000 Commission charged to Customers 62500 Establishment 15000 Discount on Bills discounted 89000 Interest on Cash Credit 24000 Amount charged against Current Accounts 71500 Directors' Fees 10000 Audit Fees 20000 Postage and Telegram 2000 Printing and Stationery 4000 Rent and Taxes 22500 Interest on Overdraft 71000 Sundry Charges 1500 Interest on Savings Bank Deposits 57780 Solution: Profit and Loss Account for the Year ended 31.3.2018 Particulars Schedule Rs. I. Income Interest Earned 13 271500 Other Income 14 62500 Total 334000 II. Expenditure Interest Expended 15 220190 Operating Expenses 16 75000 Total 295190 III. Profit and Loss Profit for the year 38810 IV. Appropriation Transfer to Statutory Reserve 9702.5 Balance to Balance Sheet 29107.5 38810 Schedule 13: Interest Earned Rs. Schedule 15: Interest Expended Rs. Interest on Loan 45000 Interest paid on Fixed Deposits 162410 Interest on Cash Credit 24000 Interest paid on Savings Bank Deposits 57780 Interest on Overdrafts 71000 220190 Discount on Bills discounted 89000 Less: Rebate on Bills discounted -29000 Schedule 16: Operating Expenses Rs. Amount charged against current Account 71500 Establishment Expenses 15000 271500 Director Fees 10000 Audit Fees 20000 Schedule 14: Other Income Rs. Rent and Taxed 22500 Commission charged to customer 62500 Postage and Telegrams 2000 Printing and Stationery 4000 Sundry Expenses 1500 75000 Problem No. 2 The following financial data extracted from the books of Sri Krishna Bank Limited as on 31.3.2019: Particulars Rs. Interest on Fixed Deposits 36500 Rebate on Bills discounted 4800 Interest on Loans 34900 Commission charged to Customers 910 Office Expenses 15500 Discount on Bills discounted 19400 Interest on Cash Credit 22400 Directors' Fees 420 Postal Expenses 150 Printing and Stationery 390 Rent and Taxes 1800 Interest on Overdraft 12800 Other Expenses 180 Interest on Savings Bank Deposits 6900 Required: Prepare a Profit and Loss Account as on 31.3.2019 Solution: Profit and Loss Account for the Year ended 31.3.2019 Particulars Schedule Rs. I. Income Interest Earned 13 84700 Other Income 14 910 Total 85610 II. Expenditure Interest Expended 15 43400 Operating Expenses 16 18440 Total 61840 III. Profit and Loss Profit for the year 23770 IV. Appropriation Transfer to Statutory Reserve 5942.5 Balance to Balance Sheet 17827.5 23770 Schedule 13: Interest Earned Rs. Schedule 15: Interest Expended Rs. Interest on Loan 34900 Interest paid on Fixed Deposits 36500 Interest on Cash Credit 22400 Interest paid on Savings Bank Deposits 6900 Interest on Overdrafts 12800 43400 Discount on Bills discounted 19400 Less: Rebate on Bills discounted -4800 Schedule 16: Operating Expenses Rs. Office Expenses 15500 84700 Rent and Taxed 1800 Director Remuneration 420 Schedule 14: Other Income Rs. Postal Expenses 150 Commission charged to customer 910 Printing and Stationery 390 Other Expenses 180 18440 Problem No. 3 The following financial data extracted from the books of Mysore Bank Limited as on 31.3.2019: Particulars Rs. Interest on Fixed Deposits 55000 Rebate on Bills discounted 9800 Interest on Loans 51800 Commission 1600 Depreciation on Bank Property 1000 Discount on Bills discounted 29200 Interest on Cash Credit 44600 Directors' Fees 600 Postage and Telegram 300 Printing and Stationery 600 Rent and Taxes 3600 Interest on Overdraft 30800 Sundry Expenses 400 Interest on Savings Bank Deposits 13600 Page 4 Preparation of Profit and Loss Account Problem No. 1 Prepare a Profit and Loss account of ABC Bank Ltd for the year ended 31.3.2018 from the following: Particulars Rs. Rs. Interest on Fixed Deposits 162410 Rebate on Bills discounted 29000 Interest on Loans 45000 Commission charged to Customers 62500 Establishment 15000 Discount on Bills discounted 89000 Interest on Cash Credit 24000 Amount charged against Current Accounts 71500 Directors' Fees 10000 Audit Fees 20000 Postage and Telegram 2000 Printing and Stationery 4000 Rent and Taxes 22500 Interest on Overdraft 71000 Sundry Charges 1500 Interest on Savings Bank Deposits 57780 Solution: Profit and Loss Account for the Year ended 31.3.2018 Particulars Schedule Rs. I. Income Interest Earned 13 271500 Other Income 14 62500 Total 334000 II. Expenditure Interest Expended 15 220190 Operating Expenses 16 75000 Total 295190 III. Profit and Loss Profit for the year 38810 IV. Appropriation Transfer to Statutory Reserve 9702.5 Balance to Balance Sheet 29107.5 38810 Schedule 13: Interest Earned Rs. Schedule 15: Interest Expended Rs. Interest on Loan 45000 Interest paid on Fixed Deposits 162410 Interest on Cash Credit 24000 Interest paid on Savings Bank Deposits 57780 Interest on Overdrafts 71000 220190 Discount on Bills discounted 89000 Less: Rebate on Bills discounted -29000 Schedule 16: Operating Expenses Rs. Amount charged against current Account 71500 Establishment Expenses 15000 271500 Director Fees 10000 Audit Fees 20000 Schedule 14: Other Income Rs. Rent and Taxed 22500 Commission charged to customer 62500 Postage and Telegrams 2000 Printing and Stationery 4000 Sundry Expenses 1500 75000 Problem No. 2 The following financial data extracted from the books of Sri Krishna Bank Limited as on 31.3.2019: Particulars Rs. Interest on Fixed Deposits 36500 Rebate on Bills discounted 4800 Interest on Loans 34900 Commission charged to Customers 910 Office Expenses 15500 Discount on Bills discounted 19400 Interest on Cash Credit 22400 Directors' Fees 420 Postal Expenses 150 Printing and Stationery 390 Rent and Taxes 1800 Interest on Overdraft 12800 Other Expenses 180 Interest on Savings Bank Deposits 6900 Required: Prepare a Profit and Loss Account as on 31.3.2019 Solution: Profit and Loss Account for the Year ended 31.3.2019 Particulars Schedule Rs. I. Income Interest Earned 13 84700 Other Income 14 910 Total 85610 II. Expenditure Interest Expended 15 43400 Operating Expenses 16 18440 Total 61840 III. Profit and Loss Profit for the year 23770 IV. Appropriation Transfer to Statutory Reserve 5942.5 Balance to Balance Sheet 17827.5 23770 Schedule 13: Interest Earned Rs. Schedule 15: Interest Expended Rs. Interest on Loan 34900 Interest paid on Fixed Deposits 36500 Interest on Cash Credit 22400 Interest paid on Savings Bank Deposits 6900 Interest on Overdrafts 12800 43400 Discount on Bills discounted 19400 Less: Rebate on Bills discounted -4800 Schedule 16: Operating Expenses Rs. Office Expenses 15500 84700 Rent and Taxed 1800 Director Remuneration 420 Schedule 14: Other Income Rs. Postal Expenses 150 Commission charged to customer 910 Printing and Stationery 390 Other Expenses 180 18440 Problem No. 3 The following financial data extracted from the books of Mysore Bank Limited as on 31.3.2019: Particulars Rs. Interest on Fixed Deposits 55000 Rebate on Bills discounted 9800 Interest on Loans 51800 Commission 1600 Depreciation on Bank Property 1000 Discount on Bills discounted 29200 Interest on Cash Credit 44600 Directors' Fees 600 Postage and Telegram 300 Printing and Stationery 600 Rent and Taxes 3600 Interest on Overdraft 30800 Sundry Expenses 400 Interest on Savings Bank Deposits 13600 Interest on Current Accounts 8400 Locker Rent 200 Salaries and Allowances 10800 Auditor's Fees 200 Transfer Fees 100 Required: Prepare a Profit and Loss Account as on 31.3.2019 Solution: Profit and Loss Account for the Year ended 31.3.20 Particulars Schedule Rs. I. Income Interest Earned 13 155000 Other Income 14 1800 Total 156800 II. Expenditure Interest Expended 15 68600 Operating Expenses 16 17600 Provision and Contingencies Total 86200 III. Profit and Loss Profit for the year 70600 IV. Appropriation Transfer to Statutory Reserve 17650 Balance to Balance Sheet 52950 70600 Schedule 13: Interest Earned Rs. Schedule 15: Interest Expended Rs. Interest on Loan 51800 Interest paid on Fixed Deposits 55000 Interest on Cash Credit 44600 Interest paid on Savings Bank Deposits 13600 Interest on Overdrafts 30800 68600 Discount on Bills discounted 29200 Less: Rebate on Bills discounted -9800 Schedule 16: Operating Expenses Rs. Interest on Current Accounts 8400 Salaries and Allowances 10800 15500 0 Rent and Taxed 3600 Director's Fees 600 Schedule 14: Other Income Rs. Auditor's Fees 200 Commission received 1600 Postage and Telegram 300 Locker rent 200 Printing & Stationery 600 1800 Transfer Fees 100 Depreciation on Bank Property 1000 Sundry Charges 400 17600 Page 5 Preparation of Profit and Loss Account Problem No. 1 Prepare a Profit and Loss account of ABC Bank Ltd for the year ended 31.3.2018 from the following: Particulars Rs. Rs. Interest on Fixed Deposits 162410 Rebate on Bills discounted 29000 Interest on Loans 45000 Commission charged to Customers 62500 Establishment 15000 Discount on Bills discounted 89000 Interest on Cash Credit 24000 Amount charged against Current Accounts 71500 Directors' Fees 10000 Audit Fees 20000 Postage and Telegram 2000 Printing and Stationery 4000 Rent and Taxes 22500 Interest on Overdraft 71000 Sundry Charges 1500 Interest on Savings Bank Deposits 57780 Solution: Profit and Loss Account for the Year ended 31.3.2018 Particulars Schedule Rs. I. Income Interest Earned 13 271500 Other Income 14 62500 Total 334000 II. Expenditure Interest Expended 15 220190 Operating Expenses 16 75000 Total 295190 III. Profit and Loss Profit for the year 38810 IV. Appropriation Transfer to Statutory Reserve 9702.5 Balance to Balance Sheet 29107.5 38810 Schedule 13: Interest Earned Rs. Schedule 15: Interest Expended Rs. Interest on Loan 45000 Interest paid on Fixed Deposits 162410 Interest on Cash Credit 24000 Interest paid on Savings Bank Deposits 57780 Interest on Overdrafts 71000 220190 Discount on Bills discounted 89000 Less: Rebate on Bills discounted -29000 Schedule 16: Operating Expenses Rs. Amount charged against current Account 71500 Establishment Expenses 15000 271500 Director Fees 10000 Audit Fees 20000 Schedule 14: Other Income Rs. Rent and Taxed 22500 Commission charged to customer 62500 Postage and Telegrams 2000 Printing and Stationery 4000 Sundry Expenses 1500 75000 Problem No. 2 The following financial data extracted from the books of Sri Krishna Bank Limited as on 31.3.2019: Particulars Rs. Interest on Fixed Deposits 36500 Rebate on Bills discounted 4800 Interest on Loans 34900 Commission charged to Customers 910 Office Expenses 15500 Discount on Bills discounted 19400 Interest on Cash Credit 22400 Directors' Fees 420 Postal Expenses 150 Printing and Stationery 390 Rent and Taxes 1800 Interest on Overdraft 12800 Other Expenses 180 Interest on Savings Bank Deposits 6900 Required: Prepare a Profit and Loss Account as on 31.3.2019 Solution: Profit and Loss Account for the Year ended 31.3.2019 Particulars Schedule Rs. I. Income Interest Earned 13 84700 Other Income 14 910 Total 85610 II. Expenditure Interest Expended 15 43400 Operating Expenses 16 18440 Total 61840 III. Profit and Loss Profit for the year 23770 IV. Appropriation Transfer to Statutory Reserve 5942.5 Balance to Balance Sheet 17827.5 23770 Schedule 13: Interest Earned Rs. Schedule 15: Interest Expended Rs. Interest on Loan 34900 Interest paid on Fixed Deposits 36500 Interest on Cash Credit 22400 Interest paid on Savings Bank Deposits 6900 Interest on Overdrafts 12800 43400 Discount on Bills discounted 19400 Less: Rebate on Bills discounted -4800 Schedule 16: Operating Expenses Rs. Office Expenses 15500 84700 Rent and Taxed 1800 Director Remuneration 420 Schedule 14: Other Income Rs. Postal Expenses 150 Commission charged to customer 910 Printing and Stationery 390 Other Expenses 180 18440 Problem No. 3 The following financial data extracted from the books of Mysore Bank Limited as on 31.3.2019: Particulars Rs. Interest on Fixed Deposits 55000 Rebate on Bills discounted 9800 Interest on Loans 51800 Commission 1600 Depreciation on Bank Property 1000 Discount on Bills discounted 29200 Interest on Cash Credit 44600 Directors' Fees 600 Postage and Telegram 300 Printing and Stationery 600 Rent and Taxes 3600 Interest on Overdraft 30800 Sundry Expenses 400 Interest on Savings Bank Deposits 13600 Interest on Current Accounts 8400 Locker Rent 200 Salaries and Allowances 10800 Auditor's Fees 200 Transfer Fees 100 Required: Prepare a Profit and Loss Account as on 31.3.2019 Solution: Profit and Loss Account for the Year ended 31.3.20 Particulars Schedule Rs. I. Income Interest Earned 13 155000 Other Income 14 1800 Total 156800 II. Expenditure Interest Expended 15 68600 Operating Expenses 16 17600 Provision and Contingencies Total 86200 III. Profit and Loss Profit for the year 70600 IV. Appropriation Transfer to Statutory Reserve 17650 Balance to Balance Sheet 52950 70600 Schedule 13: Interest Earned Rs. Schedule 15: Interest Expended Rs. Interest on Loan 51800 Interest paid on Fixed Deposits 55000 Interest on Cash Credit 44600 Interest paid on Savings Bank Deposits 13600 Interest on Overdrafts 30800 68600 Discount on Bills discounted 29200 Less: Rebate on Bills discounted -9800 Schedule 16: Operating Expenses Rs. Interest on Current Accounts 8400 Salaries and Allowances 10800 15500 0 Rent and Taxed 3600 Director's Fees 600 Schedule 14: Other Income Rs. Auditor's Fees 200 Commission received 1600 Postage and Telegram 300 Locker rent 200 Printing & Stationery 600 1800 Transfer Fees 100 Depreciation on Bank Property 1000 Sundry Charges 400 17600 Problem No.4 From the following information, prepare Profit and Loss Account of Yes Bank Ltd. for the year ended 31-3-2019 Particulars Rs. in Crores Interest on Loans 2590 Interest on Fixed Deposits 2750 Commission 82 Rebate on Bills Discounted 490 Salaries and Allowances 540 Discount on Bills Discounted 1850 Interest on Cash Credit 2230 Depreciation on Bank's Property 400 Rent and Rates 180 Interest on Overdraft 1540 Director's Fees 30 Audit Fees 50 Interest on Savings Deposits 680 Postage 14 Printing and Stationery 29 Sundry Expenses 15 Additional Information: Bad debts to be written off amounted to Rs.380. Provision for Taxation may be made at 35%. Transfer 20% of profits to Statutory Reserve and provide Rs.3 for dividends. Solution Profit and Loss Account for the Year ended 31.3.20 Particulars Schedule Rs. I. Income Interest Earned 13 7720 Other Income 14 82 Total 7802 II. Expenditure Interest Expended 15 3430 Operating Expenses 16 1258 Provision and Contingencies 1470 Total 6158 III. Profit and Loss Profit for the year 1644 IV. Appropriation Transfer to Statutory Reserve 411Read More
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