The following are the figures extracted from the book of Golden Bank Ltd. as on 31 March 2010:
|
Interest and Discount Received |
74,11,476 |
|
Interest Paid on Deposits |
40,74,904 |
|
Issued & Subscribed Capital |
20,00,000 |
|
Salaries & Allowances |
4,00,000 |
|
Directors Fees & Allowances |
60,000 |
|
Rent & Taxes Paid |
1,80,000 |
|
Postage & Phone |
1,20,572 |
|
Statutory Reserve Fund |
16,00,000 |
|
Commission, Exchange & |
3,80,000 |
|
Brokerage |
|
|
Rent Received |
1,30,000 |
|
Profit on Sale of Investments |
4,00,000 |
|
Depreciation on Bank’s Properties |
60,000 |
|
Stationery Expenses |
80,000 |
|
Preliminary Expenses |
50,000 |
|
Auditor’s Fees |
10,000 |
The following further information is given:
- A customer to whom a sum of Rs.20 lakhs has been advanced has become insolvent and it is expected only 50% can be recovered from his estate.
- There were also other debts for which a provision of Rs.3,00,000 was found necessary by the auditors.
- Rebate on bills discounted on 31 March 2009 was Rs.24,000 and on 31 March 2010 was Rs.32,000.
- Provide Rs.13,00,000 for income tax.
- The Directors desire to declare 10% dividend.
Prepare the P & L A/c of Golden Bank Ltd. for the year ended on 31 March 2010 and also show how the P & L A/c will appear in the balance sheet of the P & L A/c. Opening balance was nil as on 31 March 2009.