Model: Preparation of P & L A/c The following figures are extracted from the books of Lucky Bank Ltd. for the year ending on 31 March 2011:
|
Rs. |
|
|
Interest and Discount Received |
60,90,000 |
|
Interest Paid on Deposits |
36,06,000 |
|
Issued and Subscribed Capital |
15,00,000 |
|
Reserve under Section 17 |
10,50,000 |
|
Commission, Exchange and Brokerage |
2,70,000 |
|
Rent Received |
90,000 |
|
Profit on Sale of Investments |
2,85,000 |
|
Director’s Fees and Allowances |
36,000 |
|
Rent and Taxes Paid |
1,62,000 |
|
Stationery and Printing |
36,000 |
|
Postage and Phone |
75,000 |
|
Other Expenses |
36,000 |
|
Audit Fees |
12,000 |
|
Depreciation on Bank Properties |
37,500 |
Other information:
- A customer, to whom a sum of Rs.7,50,000 has been advanced, has become insolvent and it is expected that 40% can be recovered from his estate. Interest due at 15% on his debt has not been provided in the books.
- Provision for bad and doubtful debts on other debts necessary is Rs.1,50,000.
- Rebate on bills discounted as on 1 April 2010 is Rs.22,500
- Provide Rs.5,00,000 for income tax.
- The directors decide to declare 10% dividend.
Prepare the profit and loss A/c in accordance with law. Make necessary assumptions, wherever necessary.