Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Profit and loss account of banking companies

7,891 views

Published on

Profit and Loss account of banking companies as prescribed under the banking act, 1949

Published in: Economy & Finance
  • My brother found Custom Writing Service ⇒ www.WritePaper.info ⇐ and ordered a couple of works. Their customer service is outstanding, never left a query unanswered.
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • I can advise you this service - ⇒ www.HelpWriting.net ⇐ Bought essay here. No problem.
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Hi there! I just wanted to share a list of sites that helped me a lot during my studies: .................................................................................................................................... www.EssayWrite.best - Write an essay .................................................................................................................................... www.LitReview.xyz - Summary of books .................................................................................................................................... www.Coursework.best - Online coursework .................................................................................................................................... www.Dissertations.me - proquest dissertations .................................................................................................................................... www.ReMovie.club - Movies reviews .................................................................................................................................... www.WebSlides.vip - Best powerpoint presentations .................................................................................................................................... www.WritePaper.info - Write a research paper .................................................................................................................................... www.EddyHelp.com - Homework help online .................................................................................................................................... www.MyResumeHelp.net - Professional resume writing service .................................................................................................................................. www.HelpWriting.net - Help with writing any papers ......................................................................................................................................... Save so as not to lose
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Dating for everyone is here: ❶❶❶ http://bit.ly/369VOVb ❶❶❶
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Follow the link, new dating source: ❤❤❤ http://bit.ly/369VOVb ❤❤❤
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here

Profit and loss account of banking companies

  1. 1. PROFIT AND LOSS ACCOUNT OF BANKING COMPANIES PRESENTED BY: ANAND SARAN 142005
  2. 2. PROFIT AND LOSS ACCOUNT • A summery of the revenues, costs and expenses incurred during a specific period of time • Prepared to calculate the profit or loss of the Organisation during one financial year .
  3. 3. FUNCTIONS OF A BANK 1. Receiving deposits from the public 2. Granting loans and advances 3. A bank performs certain functions as an agent for and on behalf of its customers. 4. Other functions: • Issuing letters of credit to its customers • Issuing bank drafts • Issuing travelers cheques • Lockers
  4. 4. PROFIT AND LOSS ACCONT OF BANKING COMPANIES • Banking Business in India is governed by the Banking Regulations Act 1949 • Section 29 of this Act lays down the provisions regarding Accounts and Balance Sheet of a banking company • The profit and loss account is shown in ‘Form B’ of Schedule III of this Act
  5. 5. SCHEDULES RELATED TO PROFIT AND LOSS ACCOUNT The schedules related to the calculation of income and expenses of a bank are as follows: • Schedule 13: Interest Earned • Schedule 14: Other Incomes • Schedule 15: Interest Expended • Schedule 16: Operating Expenses
  6. 6. FORM B: PROFIT AND LOSS ACCOUNT I. Income Interest earned (Schedule 13) Other income (Schedule 14) Total II. Expenditure Interest expended (Schedule 15) Operating expenses (Schedule 16) Provisions and contingencies Total III. Profit / Loss Net profit / loss (-) for the year IV. Appropriations V. Balance carried over to Balance Sheet
  7. 7. SCHEDULE 13: INTEREST EARNED • Interest/discount on advance/bills • Income on investments • Interest on balances with Reserve Bank of India and other Inter bank funds • Others
  8. 8. SCHEDULE 14: OTHER INCOME • Commission, exchange and brokerage • Profit on sale of investments (Less: Loss on sale of investments) • Profit on revaluation of investments (Less: Loss on revaluation of investments) • Profit on sale of land, buildings and other assets (Less: Loss on sale of land, buildings and other assets) • Profit on exchange transactions (Less : Loss on exchange transactions) • Income earned by way of dividends, etc. from subsidiaries/ companies and/or joint ventures abroad/ in India • Miscellaneous income
  9. 9. SCHEDULE 15: INTEREST EXPENDED • Interest on deposits • Interest on Reserve Bank of India/Inter bank borrowings • Others
  10. 10. SCHEDULE 16: ORERATING EXPENSES • Payment to and provisions of employees • Rent, taxes and lighting • Printing and stationery • Advertisement and publicity • Depreciation on bank's property • Director's fees, allowances and expenses `
  11. 11. Cont. • Auditor’s fees and expenses (including branch auditors) • Law charges • Postages, Telegrams, Telephones, etc. • Repairs and maintenance • Insurance • Other expenditure
  12. 12. APPROPRIATION OF PROFITS • Transfer to statutory reserves • Transfer to other reserves • Transfer to government/ Proposed dividend = Final Balance Transferred to the Balance Sheet (Transferred to the liabilities side under the head ‘Reserves and Surplus’)

×