Ex: Following is the trail balance of Dhaka Bank Ltd as on 31 December 2014

Sl

Particulars
1 Investment in Treasury Bill
2 Investment in National Prize Bond
3 Rent & Taxes
4 Travel expenes
5 Auditors fees
6 Directors remuneration
7 Cash in hand
8 Cash with Bangladesh Bank
9 Cash with Sonali Bank
10 Cash with Prime Bank
11 Interest on loan and advances
12 Bills discunted and purchased
13 Salary (Basic)
14 Dearness allowance
15 Other Benefit
16 Advertising expenses
17 AGM expenses
18 Managing Directors fees
19 Postage and stamp
20 Printing and stationery
21 Current deposit
22 Fixed deposit
23 Saving deposit
24 MSS( Monthly Saving Scheme)
25 Paid up capital
26 Retained earnings
27 Cash with IFIC Bank
28 Money at call and sort notice
29
ICB
30
Premier bank
31
Bank Asia
32 Share of Beximco Pherma
33 Overdraft and Cash Credit
34 Term Loan
35 Demand Loan
36 Furnitures
37 Machenery and equipments
38 General reserve
39 Asset revaluation reserve
40 Interest paid on deposit
41 Interest paid on borrowings
42 Interest received
43 Interest accrued on deposit
44 Unclained deposit
Page 1 of 18

Dr
8,000,000
5,000,000
30,000
10,000
50,000
60,000
2,000,000
5,000,000
1,400,000
2,200,000
5,000,000
1,400,000
2,000,000
1,000,000
20,000
30,000
40,000
10,000
30,000

2,500,000
800,000
700,000
200,000
700,000
3,200,000
6,000,000
3,600,000
100,000
200,000

200,000
500,000

45 Share premium
46 Share issue commission
47 Interest suspense account
Total

51,980,000

Adjustments:
a. Investment in Beximco shares is for trading purpose and Govt Securities is f
investment purpose.
b. Market value of the Bexinco Shares at 31 December 2013 is Tk 690,000.
c. Provide 10% & 5% depreciation on Furnitures and Machinery respectively.
d. Directors proposed 5% Dividend.
e. Income tax provision and other statutory provisions should be kpet as p
applicable rules and regulations.

f. Accetance and endorsement on behalf of customer is amounted to Tk 10,000,000

g. A cash credit Tk 100,000 is regarded as substandard loan; interest accrued on th

loan is Tk 10,000 which is kept in the suspense account. Market value of t
commodities is Tk 80,000 which are pledged with the bank.

h. The bank has a term loan of Tk 2,000,000 which are less than 5 years of life. Fi
quarterly installments were over due. Interest of Tk 100,000 has been kept in t
suspense account. The secutiry agaisnt the loan is mortage of land and buildin
valued at Tk 3,400,000.

i. Bank has accepted some foreign bills for collection on behalf of its custome
amounted to Tk 120,000.
Requirement
1.s:Prepare profit & loss account
2. Prepare a balance sheet.
g.

Basis for provision:

(100000-10000- (50% of 80000) =

h.

5 Qtr instalments were over due i.e 15 Months. So will be treated as bad loss.
Basis for provision:
(2,000,000 - 100,000- (50% of 3,400,000) ==

Page 2 of 18

n 31 December 2014;
Cr

8,360,000

9,000,000
8,200,000
7,000,000
5,000,000
10,000,000
2,000,000

250,000
400,000

1,290,000
20,000
50,000
Page 3 of 18

100,000
200,000
110,000
51,980,000

d Govt Securities is for

s Tk 690,000.
y respectively.

hould be kpet as per

unted to Tk 10,000,000

interest accrued on this

nt. Market value of the

Basis for provision: Shall be maintained on the balance to

than 5 years of life. Five

00 has been kept in the
ge of land and buildings

Interest Suspense' and value of eligible securities fro the

behalf of its customers

50,000

20%

10,000

100%

200,000

eated as bad loss.

200,000

Page 4 of 18

Page 5 of 18

ed on the balance to be ascertain by deducting the amount of

le securities fro the outstanding balance of classified accounts.

Page 6 of 18

Page 7 of 18

Page 8 of 18

General reserve

250,000
Dhaka Bank Limited
Balance Sheet
As on 31 December 2013
Note:

Property and Assets

Cash
Cash in hand
Balance with Bangladesh bank including its agents
Balance with other banks and financial institutions
In Bangladesh
Outside Bangladesh
Money at call and short notice
Investment
Government
Others
Loan and advances
loans, cash credit, overdrafts etc
Bill discounted and purchased
Fixed assets including land, building, furniture's and fixture
Other assets
Non banking assets
Total Assets:
Liabilities and Capital
Liabilities:
Borrowings from other banks, financial institution and agents
Deposits and other accounts
Current deposit and other accounts
Bills parables
Savings bank deposits
Fixed deposits
MSS

Other liabilities
Total Liabilities
Shareholders' Equity
Paid up capital
Statutory reserve
Dividend equalization reserve
Assets revaluation reserve
Revaluation for amortization of treasury security
Reserve for revaluation of treasury security
General reserve
Foreign currency translation gain
Profit and loss account-Retained earnings
Total Shareholders' Equity:
Total liabilities and shareholders' equity:

Off balance sheet Items:

Contingent liabilities:
Acceptance and endorsement
letter of guarantee
Irrevocable letter of credit
Bill for collection

Other commitments:
Total Off balance sheet items:

Tk

Notes to the balance sheet:

1.

Cash
Cash in hand

Cash in hand
Balance with Bangladesh bank including its agents

Cash
Cash
Cash
Cash

with
with
with
with

Bangladesh Bank
Sonali Bank
Prime Bank
IFIC Bank
Total

2.

Balance with other banks and financial institutions

In Bangladesh
Outside Bangladesh

0
0
0

3. Money at call and short notice

ICB
Premier bank
Bank Asia

800,000
700,000
200,000
Total

1,700,000

4. Investment
Government

Investment in Treasury Bill

Investment in National Prize Bond
Total
Others

Share of Beximco Pherma

5. Loan and advances

loans, cash credit, overdrafts etc

Overdraft and Cash Credit

Term Loan
Demand Loan
Total

Bills discunted and purchased

5,000,000

6. Fixed assets including land, building, furniture's and fixture

Furnitures
Machenery and equipments

7.

Total
Depriciation
Net

Other assets

8. Non banking assets

Total Assets:
Liabilities and Capital
9.

Liabilities:
Borrowings from other banks, financial institution and agents

10. Deposits and other accounts

Current deposit
Fixed deposit
Saving deposit
MSS( Monthly Saving Scheme)

9,000,000
8,200,000
7,000,000
5,000,000
Total

29,200,000

Total

50,000
110,000
160,000

11. Other liabilities

Unclained deposit
Interest suspense account
Total Liabilities
12. Shareholders' Equity

Paid up capital

10,000,000

Statutory reserve
Dividend equalization reserve

Asset revaluation reserve

Share premium

400,000
100,000

Reserve for revaluation of treasury security

General reserve

250,000

Foreign currency translation gain

Retained earnings
Asset revaluation reserve

Total Shareholders' Equity:

2,000,000
400,000

Total liabilities and shareholders' equity:

13. Off balance sheet Items:

Contingent liabilities:
Acceptance and endorsement
letter of guarantee
Irrevocable letter of credit
Bill for collection

Other commitments:
Total Off balance sheet items:

2,000,000

5,000,000
1,400,000
2,200,000
2,500,000
8,600,000

8,000,000
5,000,000
13,000,000

700,000

3,200,000
6,000,000
3,600,000
12,800,000

Depreciation
100,000
10,000
200,000
10,000.00

300,000
20,000.00
280,000.00