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Problem on bank final account 2
1. Haribhai V. Desai College, Pune 411002
Department of Commerce
E- Content Development Cell
Third Year B. Com.
Bank Final Accounts
Designed by Dr. Yashodhan Mithare
2. Learning Objectives
1. To understand structure of Bank Final Accounts
2. To understand format of Financial Statements
3. To understand various statutory provisions
regarding preparation of the Financial
Statements
4. To understand the effect of various
adjustments
3. Following is the Trial Balance of Lakshmi Bank Ltd. As on 31st March 2019.
Prepare Profit & Loss Account for the year ended 31st March 2019 and Balance
Sheet as on that date.
Particulars AMOUNT
Loans, Cash Credit & Overdraft 28,50,000
Premises 5,00,000
Indian Government Securities 41,70,000
Salaries 2,80,000
General Expenses 74,000
Rent, Rates & Taxes 23,000
Directors fees 18,000
Stock of stationery 85,000
Bills purchased & Discounted 4,60,000
Shares 5,00,000
Cash in hand and with R.B.I. 19,30,000
Money at call and short notice 8,00,000
Share capital (50,000 Equity Shares of Rs. 100 each) 50,00,000
4. Particulars AMOUNT
Reserve Fund 25,00,000
Current Deposit 10,00,000
Fixed Deposit 12,50,000
Savings Bank Deposit 5,00,000
Profit & Loss Account (1-4-2018) 1,60,000
Interest & Discount 12,80,000
Interest Expended 2,00,000
Recurring Deposit 2,00,000
1. Maintain Reserve for doubtful debts Rs. 50,000
2. Interest accrued on investments Rs. 80,000
3. Unexpired Discount / Rebate on Bills discounted Rs. 3,800
4. Endorsement made on behalf of customers Rs. 11,50,000
5. Authorized Capital was 80,000 equity shares of Rs. 100
6. Rs. 1,00,000 were added to the premises during the current year.
Depreciate premises @ 5% on original cost
7. Market value of Government securities was Rs. 39,00,000
Consider following adjustments :
5. Schedule No. 1: Capital
Particulars Current Year Previous Year
Authorised Capital
80000 Equity shares of Rs. 100 each 80,00,000
Issued, subscribed, called and paid up
capital
50,000 Equity shares of Rs. 100 each 50,00,000
50,00,000
6. Schedule No. 2 : Reserve & Surplus
Particulars Current Year Previous Year
Reserve Fund 25,00,000
Add : 25 % profit 1,72,800
Total Reserve Fund 26,72,800
Balance of P&L appropriation a/c 6,78,400
33,51,200
7. Schedule No. : 3 Deposits
Particulars Current Year Previous Year
Current Account 10,00,000
Fixed Deposit 12,50,000
Saving Account 5,00,000
Recurring Deposit 2,00,000
29,50,000
8. Schedule No. 4 : Borrowings
Particulars Current Year Previous Year
Borrowings from other banks NIL
NIL
9. Schedule No. 5 : Other Liabilities & Provisions
Particulars Current Year Previous Year
Unexpired Discount Rebate on Bills
Discounted
3,800
3,800
10. Schedule No. 6 : Cash in Hand & with RBI
Particulars Current Year Previous Year
Cash in hand and with RBI 19,30,000
19,30,000
11. Schedule No. 7 : Balances with other bank & MACSN
Particulars Current Year
Previous
Year
Money at call & short notice 8,00,000
8,00,000
12. Schedule No. 8 : Investments
Particulars Current Year Previous Year
Indian Government Securities (Market
Value Rs. 39,00,000)
41,70,000
Shares 5,00,000
46,70,000
13. Schedule No. 9 : Advances
Particulars Current Year Previous Year
Loans, cash credit & Overdraft 28,50,000
Bills Discounted and Purchased 4,60,000
33,10,000
(-) Provision 50,000
32,60,000
14. Schedule No. 10 : Fixed Assets
Particulars Current Year Previous Year
Premises Opening Balance 4,00,000
Add : Additions during the year 1,00,000
Total 5,00,000
Less : Depreciation @5% on opening
balance i.e. Rs. 4,00,000
20,000
4,80,000
15. Schedule No. 11 : Other Assets
Particulars Current Year Previous Year
Stock of Stationery 85,000
Interest Accrued on Investments 80,000
1,65,000
16. Schedule No. 12 : Contingent Liabilities
Particulars Current Year Previous Year
Endorsement on behalf of customers 11,50,000
11,50,000
17. Schedule No. 13 : Interest Earned
Particulars Current Year Previous Year
Interest & Discount 12,80,000
(-) Unexpired Discount / Rebate on Bills
Discounted
3,800
12,76,200
Interest on Investments 80,000
13,56,200
18. Schedule No. 14 : Other Income
Particulars Current Year Previous Year
NIL
NIL
19. Schedule No. 15 : Interest Expended
Particulars Current Year Previous Year
Interest Expended 2,00,000
2,00,000
20. Schedule No. 16 : Operating Expenses
Particulars Current Year Previous Year
Depreciation on Premises 20,000
Salaries 2,80,000
General Expenses 74,000
Rent, Rates & Taxes 23,000
Director Fees 18,000
4,15,000
21. Lakshmi Bank Limited
Profit & Loss Account For the year ended 31st March 2019
Particulars Schedule No. Current Year Previous Year
(1) Income
Interest Earned 13 13,56,200
Other Income 14 NIL
Total 13,56,200
(2) Expenditure
Interest Expended 15 2,00,000
Operating Expenses 16 4,15,000
Provisions (RDD – 50,000) 50,000
Total 6,65,000
(3) Profit / Loss
Profit brought forward (Last Year) 1,60,000
Net Profit for the year 6,91,200
8,51,200
(4) Appropriations
Transfer to Reserve Fund (25% of 6,91,200) 1,72,800
Dividend for Last year NIL
Balance Transferred to Balance Sheet 6,78,400
22. Lakshmi Bank Limited - Balance Sheet as on 31st March 2019
Particulars Schedule No. Current Year
CAPITAL & LIABILITIES
Capital 1 50,00,000
Reserve & Surplus 2 33,51,200
Deposits 3 29,50,000
Borrowings 4 0
Other Liabilities and Provisions 5 3,800
TOTAL 1,13,05,000
ASSETS
Cash in hand & with RBI 6 19,30,000
Balances with other bank & MACSN 7 8,00,000
Investments 8 46,70,000
Advances 9 32,60,000
Fixed Assets 10 4,80,000
Other Assets 10 1,65,000
TOTAL 1,13,05,000
Contingent Liabilities 11,50,000
