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:

  1. 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.
  2. There were also other debts for which a provision of Rs.3,00,000 was found necessary by the auditors.
  3. Rebate on bills discounted on 31 March 2009 was Rs.24,000 and on 31 March 2010 was Rs.32,000.
  4. Provide Rs.13,00,000 for income tax.
  5. 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.