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FINAL ACCOUNTS
The most important objective of accounting is to ascertain the profit or loss made by the concern Financial position of the concern The final product of accounting process iS final accounts The objectives of accounting can be achieved by preparing the final accounts, which comprise of: Profit & Loss Account & Balance Sheet
FINAL ACCOUNTS
Summary of those accounts which affect the profit and loss of a business concern is called Income Statement The income statement has normally Income statement comprises of Trading and Profit & Loss Account. They have two parts-the first part is called Trading account which reveals gross profit or gross loss, and the second part is called Profit & Loss account to show net profit or net loss.
FINAL ACCOUNTS
In a trading concern direct expenses include: all expenses in bringing the goods to the godown of the firm and in making them ready for sale, like freight paid on purchases, cartage, octroi, custom duty, carriage inward, etc. all expenses for sale and distribution of goods.
FINAL ACCOUNTS
In a manufacturing concern direct expenses include: all expenses incurred for production of goods (like wages, power and fuel, Factory lighting,, factory rent and rates) and all expenses incurred in bringing the goods to the godown of the firm and in making them ready for sale, like freight paid on purchases, cartage, octroi, custom duty, carriage inward, etc.
FINAL ACCOUNTS
Administrative and office expenses include: Office salaries Establishment expenses Office rent & taxes Printing & Stationnery Postage & Telephone expenses Electricity charges Entertainment expenses Conveyance expenses Legal expenses & Audit fee
FINAL ACCOUNTS
: Selling & Distibution expenses include: Advertising Commission Discount Packing expenses Carriage outward Freight on sales Export duties Insurance Bad debts
FINAL ACCOUNTS
Fixed assets are those which are acquired for continuous use not for sale may be tangible may be intangible
FINAL ACCOUNTS
Current assets are those which are: kept temporarily for resale for converting into cash they are cash or cash equivalent are to be realized within a period of one year are to be realized during the normal operating cycle
FINAL ACCOUNTS
Owners fund includes: Capital less drawings of the owner Undistributed profits Reserves Assets minus liabilities
FINAL ACCOUNTS
: Closing consolidated journal entries are normally passed for Transfer of all manufacturing and purchase expense to the debit side of trading a/c Transfer of Purchases and Sales return to the debit side of Trading a/c Transfer of Sales and Purchases return to the credit side of Trading a/c Transfer of closing stock to the credit of trading account by an adjustment entry
FINAL ACCOUNTS
Transfer of Gross profit to the credit side of Profit & Loss a/c Transfer of Gross loss to the debit side of Profit & Loss a/c Transfer of all administrative, selling and financial expenses to the debit of P & L A/c Transfer of all operational and non-operational incomes to the credit of P & L A/c Transfer of Net proft to the credit of Capital a/c Transfer of net loss to the debit of Capital a/c
FINAL ACCOUNTS
Some common adjustments are: Closing Stock Expenses due but not paid (Outstanding expenses) Expenses paid in advance (Prepaid expenses) Incomes due but not received (Accrued incomes) Incomes not due but received (Unearned incomes) Depreciation on assets Interest on Capital
FINAL ACCOUNTS
Interest on Drawings Interest on Loan Bad debts to be written off Provision for bad debts Provision for discount on Debtors Provision for discount on creditors Losses on account of accidents Commission payable on profit Goods used by the proprietor Goods distributed as Free Samples
Profit sharing ratio for disposal of profits Amount to be allowed as drawings and the timings of such drawings Whether any partner will be allowed a salary
Multiplier is given
COMPANY Accounts
Features of a Joint Stock Company 1. Incorporated association: A company is a registered body of individuals. According to the Companies Act, 1956, it is compulsory to register a joint stock company. 2. Artificial person: It is an artificial person created by law. It is different from its members It can enter into contracts, purchase and sell the properties, can sue and be sued upon. Even a member can enter into contract with the company. 3. Perpetual succession: A company has a perpetual succession. Death, or insolvency of any shareholder does not affect existence of the company. 4. Common seal: As the company is an artificial person created by law, it cannot sign its name. So it has a common seal on which the companys name is engraved. The common seal is treated as companys signature and is affixed in all important documents and contracts as per the resolutions passed by the Board. 5. Limited liability: The liability of the members of the joint stock company is limited to the face value of shares held by them. Companies (Amendment) Bill 2003 states that if a company, private or public, fails to enhance its minimum paid up capital ( i.e. One Lakh rupees or Five Lakh rupees, as the case may be) each director or manager or shareholder will have unlimited liability.
COMPANY Accounts
6. Separation of management from ownership: Even though the shareholders are true owners, they do not participate in the management of the company. They elect their representatives known as Board of Directors. 7. Transferability of shares: The shares of a company are freely transferable subject to restrictions placed on transfer of private limited companys shares. 8. Separate legal status: A company has an independent legal status and as such, the shareholders or the owners are not liable for the acts of the company. 9. Large membership: A company is owned by a large number of members. In the case of private limited company the minimum number of members is 2 and the maximum is 50. In the case of public limited company, the minimum number of members is 7 and there is no maximum limit on the number of members.
COMPANY Accounts
The Liabilities of a company are arranged in the following order Share Capital Reserves and Surplus Secured Loans Unsecured loans Current Liabilities & Provisions
Current Liabilities Provisions
Other Provisions
: Sweat shares means Equity shares issued by the company to employees or directors
at a discount, or for consideration other than cash
-for providing know how -making available right in the nature of intellectual property rights -value additions shares should be of the same class which have already been issued it should be authorized by members by passing resolution in the General meeting it should be issued in accordance with the regulations made by the SEBI
Under Employees Stock Option Scheme, the company grants option to an employee to apply for shares at a pre-determined price the right to be exercised during a specified period listed companies have to follow SEBI guidelines for ESOS
COMPANY Accounts
The Assets side of the balance sheet shows the following sequence: Fixed Assets Investments Current assets, Loans and Advances
Current Assets Loans & Advances
COMPANY Accounts
With regard to Share Capital, the company should specifically state: Details of Authorised, Issued, Subscribed, Called up and Paid up capitals Details of number of shares and face value of each share Amount called up on each share Classes of shares-Preference or Equity with or without voting rights Shares allotted as fully paid for consideration other than cash Shares issued as bonus shares and source
COMPANY Accounts
RESERVES AND SURPLUS Capital Reserve Capital redemption Reserve Share Premium Account Other reserves Less: Debit balance in P & L A/c, if any Surplus (Balance in the P & L appropriation A/c) Proposed additions to reserves Sinking funds
COMPANY Accounts
SECURED LOANS Debentures Loans and advances from banks Loans and advances from Subsidiaries Other Loans and advances
COMPANY Accounts
UNSECURED LOANS Fixed deposits Loans and advances from subsidiaries Short term loans & Advances
from Banks From Others
COMPANY Accounts
CURRENT LIABILITIES & PROVISIONS (A) Current Liabilities Acceptances Sundry Creditors Subsidiary companies Advance payment and unexpired discounts Unclaimed dividends Other liabilities (if any) Interest accrued but not due on loans
COMPANY Accounts
FIXED ASSETS
Goodwill Land Buildings Leaseholds Railway sidings Plant & Machinery Furniture & fittings Development of property Patents, trade marks & designs Live stock Vehicles, etc.
COMPANY Accounts
The fixed assets must be Classified and distinguished The following details are required to be shown separately:
original cost, additions during the year, deductions there from during the year, Total depreciation written off or provided up to the end of the year
COMPANY Accounts
INVESTMENTS Investments in Government or trust securities Investment in shares, Debentures or bonds Investment in immovable properties Investment in the capital of partnership firms Balance of un-utilised monies raised by issues
COMPANY Accounts
: The followings must be clearly stated with regard to Investments: Nature of Investments Mode of valuation (Cost or market value) Classification of Investments
COMPANY Accounts
CURRENT ASSETS LOANS & ADVANCES Current Assets Interest accrued on investments Stores and spare parts Loose tools Stock in trade Sundry Debtors Cash in hand Bank balances
With scheduled banks With others
COMPANY Accounts
: In respect of Sundry Debtors following details are to be shown: Debts considered good and in respect of which the company is fully secured Debts considered good for which the company holds no security other than personal security of debtors Debts considered doubtful or bad
COMPANY Accounts
Loans & Advances Advances and loans Bills of Exchange Advances receivable in cash or kind or for value to be received Balances on current accounts Balances with Customs, Port trust, etc. (where payable on demand)
COMPANY Accounts
Miscellaneous expenditure is shown in the following sequence on the assets side of the balance sheet: Preliminary expenses Expenses including commission or brokerage on underwriting or subscription of shares or debentures Discount allowed on issue of shares or debentures Interest paid out of capital during construction Development expenditure not adjusted Other items
BANKING ACCOUNTS
What is true about a Banking Company? A company that carries on the business of Banking in India. It generally governed by the Provisions of the Companies Act, 1956. It is specifically governed by the Banking Regulation Act.
BANKING ACCOUNTS
The Major institutions that are carrying on business of banking in India are: Nationalised Banks State Bank of India and their associates Foreign Banks having branches in India Co-operative Banks Rural Banks Private Sector Banks
BANKING ACCOUNTS
Main functions of modern commercial Banks are: Accepting money on deposits. Facilities to depositors for making payments by cheques. Granting of loans and advances. Dealing in securities on its own account or on behalf of customer. Opening letters of credit and issuing Guarantees Dealing in Foreign Exchange Transferring money from one place to another in the form of Demand Draft, Telegraphic Transfers, Travellers Cheques and bills. Acting as Trustees and Executors. Dealing in Merchant Banking
BANKING ACCOUNTS
Bankers Books include: Ledgers Day Books Cash Books Account Books All other records used in the ordinary business of a bank
BANKING ACCOUNTS
Third Schedule: Form A Form of Balance Sheet Balance Sheet as on 31st March,. Capital and Liabilities Rs Capital 1 . Reserves and Surplus . Deposits . Borrowings . Other Liabilities and Provisions . Total . . Schedule
2 3 4 5
BANKING ACCOUNTS
Assets Schedule No. Cash and Balance with RBI . Balance with Banks and Money at call and Short Notice . Investments . Advances . Fixed Assets . Other Assets . Total Contingent Liabilities
Rs.
6
7 8 9 10 11 12
BANKING ACCOUNTS
The various items in schedule-1(Capital) in Balance Sheet(Form A) includes: For Nationalised Banks- Capital For Banks incorporated outside India- Start up capital as prescribed by RBI + Amount of deposit kept with RBI under section 11(2) of BR Act,1949. For other Banks- i) Authorised Capital (shares of Rs.each) ii) Issued Capital --do iii) Subscribed Capital --do iv) Called-up Capital --do v)Less call unpaid + Add Forfeited Shares
BANKING ACCOUNTS
The various items in schedule-2(Reserve and Surplus) in Balance Sheet(Form A) includes: Statutory Reserves(opening Balance + Additions and Deductions during the year). Capital Reserves ( ---------------- do-------------------------------------------). Share Premium ( ---------------- do-------------------------------------------). Revenue and other Reserves ( ---------------- do---------------------------). Balance in Profit and Loss Account. Total(a+b+c+d+e)
BANKING ACCOUNTS
The various items in schedule-3(Deposits) in Balance Sheet(Form A) includes: a) (I) Demand Deposits-- ( i )From Banks, ii) From Others. (II) Savings Bank Deposits (III) Term Deposits i)From Banks, ii) From Others (IV) Total (I + II + III) b) (I) Deposits of Branches in India (II) Deposits of Branches Outside India
BANKING ACCOUNTS
The various items in schedule-4(Borrowings) in Balance Sheet(Form A) includes: Borrowings in India (reserve Bank of India +Other Banks +Other Institutions and agencies) Borrowings outside India Total(a + b) Secured Borrowings in a & b above
BANKING ACCOUNTS
The various items in schedule-5(other Liabilities and Provisions) in Balance Sheet(Form A) includes: Bills Payable Inter-office Adjustments(net) Interest Accrued Others(including Provisions)
BANKING ACCOUNTS
The various items in schedule-6(Cash and Balances with RBI) in Balance Sheet(Form A) includes: Cash in Hand (including foreign currency notes) Balances with RBI in(Current Account, other Accounts) Total(a + b)
BANKING ACCOUNTS
The various items in schedule-7(Balance with Banks & Money at call and short notice) in Balance Sheet(Form A) includes: In India: i) Balance with banks (in Current Accounts + in Other Deposit Accounts) ii) Money at Call and Short Notice (With Banks + With other Institutions) Total( i + ii ) Outside India: i) In Current Accounts ii) In other Deposit Accounts iii) Money at Call and Short Notice Total (i + ii + iii) Grand Total (a + b)
BANKING ACCOUNTS
The various items in schedule-8(Investments) in Balance Sheet(Form A) includes: Investments in India in: i) Govt. Securities ii) Other Approved Securities iii) Shares iv) Debentures and Bonds v) Subsidiaries and/or Joint Ventures vi) Others (to be specified
BANKING ACCOUNTS
Investments Outside India in: i) Govt.Securities (including Local Authorities) ii) Subsidieries and/or Joint Ventures abroad iii) Other Investment (to be specified) Total: Grand Total (a and b)
BANKING ACCOUNTS
. The various items in schedule-9(Advances) in Balance Sheet(Form A) includes: i) Bill Discounted and Purchased ii) Cash Credits, Overdrafts and Loans Payable on Demand iii) Term Loans Total: i) Secured by Tangible Assets ii) Covered by Bank/Govt. Guarantees iii) Unsecured Total:
BANKING ACCOUNTS
I. Advances in India: i) Priority Sectors ii) Public Sector iii) Banks iv) Others Total: II. Advances Outside India: i) Due from Banks ii) Due from Others( Bills Purchased and Discounted, Syndicated Loans, Others) Total: Grand Total( I and II )
BANKING ACCOUNTS
The various items in schedule-10(Fixed Assets) in Balance Sheet(Form A) includes: Premises : At cost as on 31st March of the preceding year Additions during the year Deductions during the year Depreciation to date Other Fixed Assets(Including Furniture and Fixture) At cost on 31st March of the preceding year Additions during the year Deductions during the year Depreciation to date Total (a + b)
BANKING ACCOUNTS
. The various items in schedule-11(Other Assets) in Balance Sheet(Form A) includes: Inter-Office Adjustments Interest Accrued Tax Paid in Advance/Tax Deducted at source Stationery and Stamps Non-banking Assets acquired in satisfaction of claims Others (any unadjusted balance of loss, when the loss exceeds the aggregate of capital, Reserves and Surplus)
BANKING ACCOUNTS
. The various items in schedule-12(Contingent Liabilities) in Balance Sheet(Form A) includes: Claims against the Bank not acknowledged as debts Liability for partly paid investments Liability on account of Outstanding Forward Exchange Contracts Guarantees given on behalf of constituents; i) In India ii) Outside India Acceptances, Endorsements and other Obligations Other items for which the Bank is contingently liable Total
BANKING ACCOUNTS
. Cash and Balance with the Reserve Bank of India includes: Cash in hand including foreign currency notes. Balance with RBI in current account and in other accounts. It includes cash in hand including foreign currency notes and also of foreign branches in case of banks having such branches.
BANKING ACCOUNTS
Balances with other Banks and Money at Call and Short Notice includes: Balances with Banks in India including co-operative Banks, in current accounts and in other Deposit accounts shown separately. Money at call and short notice with banks and other institutions. It represents loans given by one bank to other for a short period. Call loans are repayable at any time the banker recalls while short notice advances are repayable within short notice say, 24 hours to maximum period of two weeks. It also includes deposits repayable within 15 days notice lent in the inter-bank call money market. Balances in current accounts and deposit accounts outside India which includes balances held by foreign branches and branches of Indian Banks outside India. Money at call and short notice in foreign countries.
BANKING ACCOUNTS
Investment in India includes: Central and State Govt. securities and govt. treasury bills shown at the book value. Difference between the book value and market value should be mentioned in notes. Other than govt. securities which are treated as approved securities as per BR Act,1949. Investments in shares, debentures and bonds of companies and corporations not included above. Investments in Subsidiaries/Joint Ventures (including RRBs) Residual investments if any, like Gold, commercial paper and instruments in the nature of share/debentures/bonds.
BANKING ACCOUNTS
Investment outside India includes: All foreign government securities including securities issued by local authorities. Investments made in the share capital of subsidiaries floated outside India and/or joint ventures abroad. All other investments made outside India.
BANKING ACCOUNTS
. The various items in Schedule 13 (Interest Earned) of Profit and Loss Account (Form B) includes: Interest/Discount on Advances/Bills Income on Investments Interest on balances with RBI and other interbank funds Others
BANKING ACCOUNTS
The various items in Schedule 14 (Other Incomes) of Profit and Loss Account (Form B) includes: Commission, Exchange and Brokerage Profit on Sale of Investments Less: Loss on sale of investments Profit on Revaluation of Investments Less: Loss on Revaluation of Investments Profit on Sale of Land/Building and other Assets Less: Loss on sale of Land, Building & Other assets Profit on Exchange Transactions Less: Loss on Exchange Transactions Income earned by way of dividends, etc., from subsidiaries, companies and/or joint ventures abroad/in India Misc. Income
BANKING ACCOUNTS
The various items in Schedule 15 (Interest Expended) of Profit and Loss Account (Form B) includes: Interest on deposits Interest on RBI/Inter-Bank Borrowings Others
BANKING ACCOUNTS
. The various items in Schedule 16 (Operating Expenses) of Profit and Loss Account (Form B) includes: Payments to and Provisions for Employees Rent, Taxes and Lighting Printing and Stationery Advertisement and Publicity Depreciation on Banks property Directors fees, Allowances and Expenses Auditors fees and expenses (Including Branch Auditors) Law Charges Postages, Telegrams, Telephones etc. Repairs and Maintenance Insurance Other Expenditure
BANKING ACCOUNTS
. Interest Earned (schedule 13) includes: Interest/discount on Advances/bills: includes interest and discount on all types of loans and advances like Cash Credit, demand loans, overdrafts, export loans, term loans, domestic and foreign bills purchased and discounted (including those rediscounted), overdue interest and also interest subsidy, if any, relating to such advances/bills. Income on investments: Includes all income derived from the investment portfolio by way of interest and dividend. Interest on Balances with RBI and other inter-bank funds: includes interest on balances with Reserve Bank and other banks, call loans, money market placements, etc. Others: Includes any other interest/discount income not included in the above heads.
BANKING ACCOUNTS
Other Incomes (schedule 14) includes: Commission, Exchange and Brokerage: includes all remuneration on services such as commission on collection, commission/exchange on remittances and transfers, commission on letters of credit, letting out of lockers, guarantees, commission on Govt. business, commission on the other permitted agency business including consultancy and other services, brokerage etc., on securities excluding foreign exchange income. Profit on sale of investments less loss on sale of investments. Profit on revaluation of investments less loss on revaluation of investments.
BANKING ACCOUNTS
Profit on sale of Land, buildings and other assets less loss on sale of land, buildings and other assets. It also includes profit/loss on sale of securities, furniture, land and buildings, motor vehicle, gold, silver etc.(only net position to be shown and net loss should be shown as deduction). Profit on Exchange transaction less loss on Exchange transaction. It includes profit/loss on dealing in Foreign Exchange, all income earned by way of foreign exchange, commission and charges on foreign exchange transactions excluding interest which will be shown under interest. (only net position to be shown and net loss should be shown as deduction. (only net position to be shown and net loss should be shown as deduction). Income earned by way of dividends, etc., from subsidiaries, companies, joint ventures abroad/in India. Miscellaneous Income: Includes recoveries from constituents for Godown rents, income from bank properties, security charges, insurance etc., and any other miscellaneous income. In case any item under this head exceeds one percentage of the total income, particulars may be given in the notes.
BANKING ACCOUNTS
Interest Expenses (schedule 15) includes; Interest on deposits: Includes interest paid on all types of deposits from banks and other institutions. Interest on RBI/Inter-bank borrowings: Include discounts/interest on all borrowings and refinance from RBI and other banks. Others: Includes discount/interest on all borrowings/refinance, penal interest paid, etc.
BANKING ACCOUNTS
Operating Expenses (schedule 16) includes: Payments to and provisions for employees: Includes staff salaries/wages, allowances, bonus, other staff benefits like provident fund, pension, gratuity, leave fare concessions, staff welfare medical allowance to staff. Rent, Taxes and lighting: Includes rent paid by the banks on buildings and other municipal and other taxes paid excluding income tax and interest tax, electricity and other similar charges and levies. House rent allowance and other similar payments to staff should appear under the head Payment to and provisions for employees.
BANKING ACCOUNTS
Printing and stationery: Includes books and forms of stationery used by the bank and other printing charges which are not incurred by way of publicity expenditure. Advertisement and publicity: Includes expenditure incurred by the bank for advertisement and publicity purposes including printing charges of publicity matter. Depreciation on banks property: Includes depreciation on banks own property, motor cars and other vehicles, furniture, electric fittings, vaults, lifts, leasehold properties, non-banking assets etc.
BANKING ACCOUNTS
Directors fees, allowances and expenses: Includes sitting fees and all other items of expenditure incurred on behalf of directors. The daily allowance, hotel charges, conveyance charges etc., which though in the nature of reimbursement of expenses incurred may be included under this head. Similar expenses of local committee members may be included under this head. Auditors fees and expenses (Including branch auditors fees and expenses): Includes the fees paid to the statutory auditors and branch auditors for professional services rendered and all expenses for performing their duties, even though they may be in the nature of reimbursement of expenses. If external auditors have been appointed by bank themselves for internal inspection and audits and other services, the expenses incurred in that context including fees may not be included under this head but shown under Other expenditure. Law charges: includes all legal expenses and reimbursement of expenses incurred in connection with legal services.
BANKING ACCOUNTS
Postage, telegrams, telephones etc.: Includes all postage charges like stamps, telegram, telephones, teleprinters etc. Repairs and Maintenance: Includes repairs to banks property, their maintenance charges. Insurance: Includes insurance charges on banks property, insurance premium paid to DICGC etc., to the extent they are not recovered from the concerned parties. Other expenditures; Includes all expenses other than those not included in any of the other heads like, license fees, donations, subscriptions to papers, periodicals, entertainment expenses, travel expenses, etc. In case any particular item under this head exceeds one percentage of the total income, particulars may be given in the notes.
BANKING ACCOUNTS
The Provisions and Contingencies include: Provisions made for bad and doubtful debts Provisions for taxation Provision for diminution in the value of investments Transfers to contingencies
BANKING ACCOUNTS
Money At Call and Short Notice? It relates to inter-bank transactions Banks having short supply of money borrow from banks having surplus money. Money is borrowed usually for 1 to 14 days. The rate of interest fluctuates everyday and even within a day.
BANKING ACCOUNTS
Advances? includes Loans, Cash Credit and Overdraft Loan is an advance which has fixed amount and fixed period. Cash Credit is an arrangement where banks agree to lend money to borrowers up to a fixed limit against Hypothecation or Pledge of securities. However the borrower need not avail the whole amount in one go. Overdraft is an arrangement where customer is permitted to overdraw money in his current account up to a certain limit against securities like, L.I.C. Policy, FDRs, National Saving Certificates, Quoted shares etc.
BANKING ACCOUNTS
Bills receivable being Bills for collection as per contra? It is a contra item in the Balance Sheet. Bills received being bills for collection account denotes the amounts receivable and is shown on assets side of the balance sheet. Bills for collection being Bills receivable account denotes the amount payable to the customer and is shown in the liabilities side of the balance sheet.
BANKING ACCOUNTS
Acceptance Endorsements and other Obligations? It represents liabilities, which the bank assumes on behalf of its customers. The various ways in which a bank may accommodate its customers are, opening of L/C, accepting bills on behalf of customers, making endorsements on Promissory Note prepared by customers, issuing Letter of Guarantee. The bank obtains counter Guarantee from its customers to meet the third party liabilities. It creates contra item in balance sheet. The account Constituents liability for acceptances, endorsements or other obligations appears in the asset side of the balance sheet. The account Acceptances, Endorsements and other Obligations appears in the liabilities side of the balance sheet.
BANKING ACCOUNTS
, Non-Banking Assets? This relates to assets, which are not acquired by the banks, but against security of which Loan is given. In case of non-payment of loan amount such securities are taken in possession for recovery. Profit or loss on disposal of such assets are disclosed separately in the Profit and Loss account.
BANKING ACCOUNTS
Investment by banks include; Government Securities Debentures and Bonds Subsidiaries/Joint Ventures Shares Approved securities Others(Commercial papers, units of mutual fund etc.)
BANKING ACCOUNTS
Prepare the Profit and Loss account of X Bank Ltd. for the year ended 31st March, 2003, from the following: Rs Interest on Fixed Deposits 1,62,410 Rebate on Bills discounted 29,000 Interest on Loans 45,000 Commission Charged to Customers 62,500 Establishment 15,000 Discount on Bills Discounted 89,000 Interest on Cash Credit 24,000 Amount Charged against Current Accounts 71,500 Directors Fees 10,000 Audit Fees 20,000 Postage and Telegram 2,000 Printing and Stationery 4,000 Rent and Taxes 22,500 Interest on Overdrafts 71,000 Sundry Charges 1,500 Interest on Savings Bank Deposits 57,780
BANKING ACCOUNTS
Profit & Loss Account for the year ended 31st March 2003 Schedule No. Rs I. Income Interest Earned 13 2,71,500 Other Income 14 62,500 Total 3,34,000 II. Expenditure Interest Expended 15 2,20,190 Operating Expenses 16 75,000 Provision for Contingencies Total 2,95,190 III. Profit Net Profit for the year 38,810
BANKING ACCOUNTS
Schedules to be annexed with Profit and Loss Account Schedule13: Interest Earned Interest on: Loan 45,000 Cash Credit 24,000 Overdrafts 71,000 1,40,000 Discount on Bills discounted 89,000 Less: Rebate on Bill Discounted 29,000 60,000 Amount charged against current accounts 71,500 2,71,500 Schedule 14: Other Income Commission charged to customer 62,500 Schedule 15: Interest Expended Interest paid on Fixed Deposits 1,62,410 Savings Bank Deposits 57,780 2,20,190
BANKING ACCOUNTS
Schedule 14: Other Income Commission charged to customer 62,500 Schedule 15: Interest Expended Interest paid on Fixed Deposits 1,62,410 Savings Bank Deposits 57,780 2,20,190
BANKING ACCOUNTS
Schedule 16: Operating Expenses Establishment Expenses 15,000 Directors Fees 10,000 Audit Fees 20,000 Rent and Taxes 22,500 Postage and Telegrams 2,000 Printing and Stationery 4,000 Sundry Expenses 1,500 75,000
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