Model: Preparation of P & L A/c From the following information, prepare the profit and loss A/c of Merchant Bank Ltd. for the year ended on 31 March 2011 in the prescribed form:
|
Rs. |
|
|
Interest on Loan |
5,18,000 |
|
Interest on Fixed Deposits |
5,50,000 |
|
Rebate on Bills Discounted Required |
98,000 |
|
Commission |
16,400 |
|
Establishment |
1,08,000 |
|
Discount on Bills Discounted |
3,90,000 |
|
Interest on Cash Credit |
4,46,000 |
|
Interest on Current Account |
84,000 |
|
Rent and Taxes |
36,000 |
|
Interest on Overdraft |
3,08,000 |
|
Director’s Fees |
6,000 |
|
Auditor’s Fees |
2,400 |
|
Interest on Savings Bank Deposits |
1,36,000 |
|
Postage, Phone, Internet Expenses |
2,800 |
|
Printing and Stationery |
5,800 |
|
Sundry Charges |
3,400 |
Bad debts to be written off amounted to Rs.80,000. Provision for taxation may be made @ 50%. Balance of profit from last year was Rs.2,40,000. The Directors have recommended a dividend of Rs. 40,000 for the shareholders.