Preparation of Balance sheet of banking companies
Problem No.24 Page No.12.112
From the following particulars of XY Bank Ltd., prepare a Balance sheet as on 31.3.96 in
the revised format.
Particulars Rupees in ‘000’
Authorised capital 4000
Subscribed capital 2000
Investments 7000
Bills discounted 15000
Profit and loss A/c (Cr) 850
Endorsement on bills for collection 100
Liability of customers for acceptances 5000
Money at call and short notice 9000
Cash in hand 2000
Cash with RBI 4000
Statutory reserve 3000
Cash with State Bank of India 4000
Letters of credit issued 500
Telegraphic transfers payable 800
Bank drafts payable 1200
Short loans 40
Rebate on bills discounted 10
Acceptances for customers 5000
Loans and advances 10000
Cash credit 10000
Overdraft 1000
Bills purchased 1000
Current and deposit accounts 56000
Investment fluctuation fund 100
Bills for collection 100
Buildings 1000
Hint: Letters of credit is a contingent liability.
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Problem No.25 Page No.12.113
From the following balances of Saraswathi Bank Ltd., as on 31st December
1995, prepare its balance sheet in the prescribed form.
Particulars (Rs. in '000)
Paid-up share capital (shares of Rs. 100 each fully paid) 2000
Bills discounted 1800
Reserve fund 770
Cash credits 2000
Overdrafts 800
Unclaimed dividends 10
Loans 4600
Current deposits 3800
Furniture 40
Profit and loss A/c (Cr) 220
Stamps and stationery 10
Cash in hand 500
Cash with reserve Bank 1300
Branch adjustment (Dr) 170
Investments 950
Loans (Cr) 1200
Recurring deposits 1000
Fixed deposits 2000
Cash certificates 1000
Contingency reserve 170
Adjustments:
a) Rebate on bills discounted Rs. 10,000
b) Provide Rs. 80,000 for doubtful debts
c) Banks acceptances on behalf of customers were Rs. 6,50,000
Hint: Provision for doubtful debts can also be reduced in Schedule 9.
Preparation of Balance sheet of banking companies
2
Problem No.26 Page No.12.114
On 31.12.1993, the following balances stood in the books of Asian Bank Ltd.
Particulars Rupees in
‘000’
Share capital-issued 80000 shares of Rs.100 each, Rs.50 4000
paid.
Reserve fund. 6200
Fixed deposits. 42600
Savings bank deposits. 19000
Current accounts. 23200
Money at call and short notice. 1800
Government securities. .9,000
Other investments 16000
Profit and loss Account (Cr) balance (1.1.93). 1350
Dividend for 1992. 400
Premises (after depreciation up to 31.12.93,Rs.45000). 2,950
Cash in hand. 380
Cash with RBI. 10000
Cash with other banks 6000
Bills discounted. 51000
Loans and overdrafts 4136
Drafts payable 70
Unclaimed dividends 60
Rebate on bills discounted 50
Short loans (Cr). 4750
Furniture ( after depreciation up to 31.12.93, Rs.136000). 1164
Net profit for 1993. 1550
Prepare the balance sheet as per the Banking Regulation Act1949.
Hint: Prepare Appropriations part of P&L A/c as working note.
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Preparation of Balance sheet of banking companies
Problem No.27 Page No.12.115
27. On 31.3.93 the following balances stood in the books of New Bank Ltd.,
after preparing Profit and loss A/c.
Particulars Rs. in ‘000’
Share capital 3500
Reserve fund. 2450
Fixed deposit accounts. 6650
Savings bank accounts. 21000
Current accounts. 56000
Money at call and short notice. 2100
Investments (at cost). 21000
Profit and loss Account (Cr) 1.4.92. 1470
Dividends for 1992. 350
Land and Buildings (after depreciation) up to 31.3.93. 7445
Cash in hand. 420
Cash with Reserve Bank. 10500
Cash with other banks 9100
Borrowings from other banks. 4400
Bills discounted and purchased. 4200
Sundry creditors. 210
Bills payable. 5600
Loans, overdrafts and cash credits. 49000
Unclaimed dividend. 210
Bills for collection. 980
Acceptance on behalf of customers. 1400
Net profit for 1992-93 1680
Additional Information:
After deducting provisions for bad debts Rs.2,10,000; tax provision Rs.7,00,000
and rebate on bills discounted Rs.35,000
Prepare the balance sheet of the bank as on 31.3.93.
Hint: 1. Provision for doubtful debts can also be reduced in Schedule 9.
1. Prepare Appropriation part of P & L A/c as working note.
