Accounting Solutions: Accounts of Banking Companies Banking

ACCOUNTING SOLUTIONS
SCO: 209, First Floor, Sector-36/D. Chandigarh (M): 0172-4670390-5017149, 9876149390

ACCOUNTS OF BANKING COMPANIES
Banking:
According to banking regulation act 1949, section 5, and banking defines as
the accepting, for the purpose of lending or investment of deposits of money from the public repayable on demand or
otherwise and withdrawable by cheque, draft, and order or otherwise.
The provisions of the act, relating to annual accounts of banking company are as follows:
Preparation of annual accounts.
At the end of accounting year, every banking corporate company in India, in respect of all business transacted by it and
every banking company incorporated outside India in respect of all business transacted through the branches in India
are required to prepare the final accounts i.e. profit and loss a/c and balance sheet in forms set out in the third
schedule. Form A in third schedule is balance sheet form B is the profit & loss account. Forms A and B have been revised
w.e.f. 1at April 1991.
Signing authority.
All the annual financial statements must be signed by manager or principal officer and by at least 3 directors. In case
banking company incorporated in India and there are not more than 3 directors, all directors must sign the statement
of accounts. In case banking co. incorporated outside India, the manager of the principal office of the co. in India must
sign the statement of accounts.
Auditing of accounts
Under sec 30, the banks are required to get their accounts audited from a duly qualified chartered accountant,
appointed with the prior permission of the Reserve Bank Of India. Three copies of these audited statements with the
report of the auditor have to be filed with the Reserve Bank Of India and registrar of the companies of that area. It is
also necessary to get these audited statements published in the leading newspaper of India.
Filing of accounts.
Every banking company must file the three copies of the audited balance sheet and profit and loss a/c together with the
auditors report shall be furnished as returns to the reserve Bank of India within 3 months from the end of accounting
year to which they relate. This 3 month period can be extended to further up to 3 months. RBI has authority to call for
further information as it may think fit. A banking company is also required to send to the Registrar of companies three
copies of its audited balance sheet and profit and loss a/c and auditors report and if RBI demands any further
information the copy of such additional information is also required to submit to the registrar.
Publication of accounts.
The balance sheet, profit and loss discount and the auditors report of every banking company shall be published in any
newspaper circulating at place where it has principal office, within 6 months from the end of the accounting year. Every
banking company incorporated outside India has to display place of principal office, profit and loss accounts and
balance sheet in the publication.
If rebate on bill discounted or unexpired discount at the end of the year given in trial balance then it is to be shown on
the liability side of the balance sheet under schedule 5.
If rebate on bill discounted or unexpired discount at the end of the year given as adjustment to the trial balance then it
will be deducted out of the balance of discount earned schedule 13 and also shown on the liability side of balance sheet
under schedule no. 5
SCO: 209, F.F. Sector-36/D Chandigarh. 0172-4670390-5017149, 9876149390

If market value of the investment given in the question then it will not to be treated anywhere.
Statutory reserve @ 5% current year profits should be made until accumulated balance of statutory reserve and
securities premium become equal to paid up capital.
Figures should be rounded off to the nearest thousand rupees. Thus the sum of RS. 28, 72,821.75 will appear as RS.
2,872
Form B
Form of profit and loss account

st
Profit and loss account For the year ended 31 march (year)
Schedule no. Year ended on Year ended on
31-03...... 31-03.........
(current year) (previous year)
1. Income:
Interest earned 13
Other income 14
Total
2. Expenditure:
Interest expanded 15
Operating expenses 16
Provisions and contingencies
Total
3. Profit and loss:
Net profit/loss
Total
4. Appropriations:
Transfer to statutory reserve
Transfer to other reserve
Transfer to
Govt/proposed dividend
Balance carried over to
Balance sheet
Total

SCHEDULE 13-INTEREST EARNED
YEAR ENDED ON YEAR ENDED ON
31-03............. 31-03.........
(CURRENT YEAR) (PREVIOUS YEAR)
1. Interest/discount on advanced/ bills
2. Interest on investment
3. Interest on balance with reserve bank of India and

other inter bank funds.
4.
Others
Total
SCHEDULE 14-OTHER INCOME
31-03............. 31-03.........

1. COMMISSION, EXCHANGE AND BROKERAGE
PROFIT ON SALE OF INVESTMENT
2. LESS: Loss on sale of investments.
Profit on revaluation of investment.
3. Less: loss on revaluation of investments
Profit on sale of land.
4. Less: loss on sale of land, buildings and other

assets.
Profit on exchange
Transactions.
5.
Less: loss on exchange transactions.
Income earned by way of dividends etc. From

subsidiaries/companies and/or joint ventures
abroad /in India.
6.
Miscellaneous income
7.
Total
SCHEDULE 15-INTEREST EXPENDED
31-03............. 31-03.........
1. Interest on deposits.
2. Interest on reserve bank of India/inter bank

borrowings
Others
3.
Total
SCHEDULE 16-OPERATING EXPENSES.

31-03............. 31-03.........
1. Payment to and provisions for employees.
Rent, taxes and lighting.
2. Printing and stationery.
3. Advertisement and publicity.
4. Depreciation on banks property.
5. Directors fees, allowances and expenses.
6. Auditors fees, allowances and expenses

(including branch auditors)
7.
Law charges
Postages, telegrams, telephones, etc.

8.
Repairs and maintenance
9.
Insurance
10.
Other expenditures.
11.
Total
12.
FORM OF BALANCE SHEET
BALANCE SHEET OF.....As on 31st march (year)
Capital and liabilities Schedule As on 31-03...... As on 31-03.........
Capital 1.
Reserves and surplus 2.
Deposits 3.
Borrowings 4.
Other liabilities and 5.
Provisions
Total
Assets
Cash and balance with RBI 6.

Balances with banks and 7.
Money at call and short
Notice
Investments 8.
Advances 9.
Fixed assets 10.
Other assets 11.
Total
Contingent liabilities 12.
Bills for collection
SCHEDULE 1-CAPITAL
As on 31-03...... As on 31-03.........
1. For nationalised banks.
Capital (fully owned by central govt)
2. For banks incorporated outside India capital:
(i)The amount brought in by banks by way of start

up capital sa prescribed by RBI should be shown
under this head)
(ii)amount of deposit kept under section 11(2) of

the banking regulation act, 1949.
Total
For other banks

3.
Authorised capital
(.......shares of RS. .....each)
Issued capital
Subscribed capital
Called up capital

Less: calls unpaid
Add: forfeited shares.
SCHEDULE 2-RESERVES AND SURPLUS.
As on 31-03...... As on 31-03.........
1. Statutory reserve
Opening balance
Additions during the year
Deductions during the year
2. Capital reserves
Opening balance
3. Securities premium
Opening balance
4. Revenue and other reserves.
Opening balance
5. Balance in profit and loss account.
Total
SCHEDULE 3-DEPOSITS
As on 31-03...... As on 31-03.........
a. I. demand deposits
(i) From banks.

(ii) m others
II. saving bank deposits.
III. Term deposits.
(i)from banks
(ii) From others.
Total
b. 1.deposits of branches in India
2. Deposits of branches outside India.
Total
SCHEDULE 4-BORROWING
As on 31-03...... As on 31-03.........
1. BORROWINGS IN India
a.RBI
b.other banks
C.other institutions and agencies.
Borrowing outside India.
2. Total
SCHEDULE 5-OTHER LIABILITIES AND PROVISIONS
As on 31-03...... As on 31-03.........
1. Bills payable
2. Inter-office adjustments (net)
3. Interest accrued
4. Others (including provisions)

Total
SCHEDULE 6-CASH AND BALANCES WITH RBI
As on 31-03......... As on 31-03.........
1. Cash in hand
(including foreign currency notes)
Balances with reserve bank of India.
2. a. Current a/c
b. In other a/c
SCHEDULE 7-BALANCES WITH BANKS & MONEY AT CALL & SHORT NOTICE.
As on 31-03......... As on 31-03.........
1. In India
i.balances with banks
a. In current a/c
b.in other deposit a/c
Ii.money at call and short notice.
a. With banks
b.with other institutions.
Total
2. Outside India
i.in current accounts
ii.in other deposit accounts.
iii. money at call and short notice.
Total
Grand Total
SCHEDULE 8-INVESTMENT.
As on 31-03......... As on 31-03.........

1. 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)
total
2. investments outside India in
i.govt securities
(including local authorities)
ii.subsidiaries and/or joint ventures abroad
ii.other investments (to be specified)
total
SCHEDULE 9-ADVANCES
As on 31-03......... As on 31-03.........
1. I. Bills purchased and discounted
ii. cash credits, overdrafts, and loans

repayable on demand
iii. term loans.
i.secured by tangible assets

2.
ii. covered by bank/govt guarantees
iii. unsecured
total
I.advances in India
3.
a. priority sectors
b. public sectors

c. banks
d. others.
Total
II. advances outside India
a.due from banks
b. due from others
Total
SCHEDULE 10-FIXED ASSETS.
As on 31-03......... As on 31-03.........
1. Premises
st
At cast as on 31 march of the preceding year.
Addition during the year.
Deduction during the year
Depreciation to date
Other fixed assets (including furnitures and

fixtures)
st
At cast on 31 march of preceding year.
Depreciation to date.
Total
SCHEDULE 11-OTHER ASSETS.
As on 31-03......... As on 31-03.........
1. Inter office adjustments (net)

2. Interest accrued
3. Tax paid in advance/tax deducted at source
4. Stationery and stamps
Non-banking assets required in satisfaction of

claims.
5.
Others @
6.
Total
@ In case there is any unadjusted balance of loss the same may be shown under this item with appropriate footnote.
SCHEDULE 12-CONTINGENT LIABILITIES.
As on 31-03......... As on 31-03.........
1. Claims against the banks not
acknowledged as debts.
2. Liability for partly paid investments
3. Liability on account of outstanding
forward exchange contracts
guarantees given on behalf of
Constituents.
a.In India b. Outside India
Acceptance, endorsements and other

obligations.
Other items for which the bank is contingently

liable.
Total
Interest on doubtful debts
When the debts are considered to be doubtful at the end of the year then point arises that whether the interest on
debt should be credited to interest account or not. Such interest should be credited to Interest suspense account
because the realisation of this interest is considered doubtful.
The following entry should be passed:
Loan a/c dr. (with total interest due)

To interest suspense a/c
When some portion of the interest is realised in the next year and some is considered bad then it will be shown as:
Interest suspense a/c dr. (with total interest)
To interest a/c (interest realised)
To loan a/c (interest become bad)
Circular notes and letters of credit
Circular notes: circular notes refers to demand drafts and telegraphic transfers. Bank charges from the customer for the
collection of amount of bank draft. The d/d is drawn on its own appropriate branch by bank but if the bank issuing the
d/d on the other branch of any other bank. It can be done only through agreement b/w the banks. Through telegraphic
transmission, the bank informs the relevant branch telegraphically to credit the requisite amount to the payees a/c. It
is the fast way to transmission of money.
These types of drafts, telegraphic transfers, traveller cheque etc are shown in schedule 5 i.e.e other liabilities and
provisions and are included in items bills payable.
Letters and credits: bankers in a way by issuing letters of credit certify the credit worthiness of the customers. The
customer has to deposit cash for the required amount for this purpose. At the issue of letter of credit, the cash received
from the customer is debited and letter of credit account id credited. When the bill of exchange is drawn against the
letter of credit is received for payment, the amount is debited to letter of credit account. These are very popular in
foreign trade. These are shown under the head acceptances, endorsements and other obligations as vth item of
schedule 12-contingent liability.
Contingent liabilities.
They are those liabilities the occurrence of which is uncertain i.e. it may happen or not.
Types:
1. Sometimes the seller of the goods may insist that the bill be accepted by the bank or if accepted by the bank
should be endorsed by the bank. In both the cases though the liability towards seller is that bank, yet the primary
liability remains that of purchaser. If the bank has to pay, it is on the behalf of the purchaser it is contingent
liability of the bank.
2. Claims against the bank not acknowledged as debts.
3. Liability on account of outstanding forward exchange contracts.
4. Acceptance, endorsements and guarantees.
5. Other items i.e. arrears of dividends on cumulative preference shares, bills rediscounted under underwriting
contracts etc. Are involved in contingent liabilities.
Contingent liabilities are not actual liabilities and these are shown as footnote under schedule 12.
Money at call and short notice.
It is the money lent for a very short period, generally varying from 1 to 14 days. Such advances are usually made to
other banks and financial institutions only. Money at call ensures liquidity. The amount invested and the interest
earned depends upon the conditions prevailing in the money market. In the interbank market it enables banks to make
adjustments according to their liquidity requirements.
It is shown in schedule-7 on the asset side of the banks balance sheet under the head balances with banks and money
at call & short notice.

Meaning of slip system of posting: in this system, posting is made from the slips prepared inside the organisation itself
or from slips filled in by its customers. In a banking comp-any, for every purpose to make deposits or to withdraw cash
or to give a cheque for collection slips are used. These slips serve the basis of the entry in the ledgers and control
accounts in the general ledger are prepared on the basis of analysis of these slips.
Merits & demerits of slip system of posting.
Slip system of posting has following merits & demerits:
Merits
1. It is very simple to understand by customers.
2. It is economical in time and money.
3. Subsidiary books are avoided as posting is done from slips.
4. It is easily handled by officer concerned by being small and handy.
5. It ensures the smooth flow of accounting work.
6. The number of banking transactions is very large. This system can suitably distribute the work of posting among
many people.
Demerits.
1. There are always a risk of misplacement, loss and destruction of slips by dishonest employees.
2. Illiterate depositors cannot write these slips properly.
3. Books cannot be verified if subsidiary books are not kept.
4. There is an over burden on the internal auditors because of checking of different types of slips.
1. Statutory reserve
Under section 17, every banking company in corporate in India is required to transfer at least 25% of its current profits
to its reserve fund. It is known as statutory reserve. Only those banks get exemption from this label condition, whose
reserve along with share premium if any become equal to paid up capital.
As per RBI guidelines for complication of financial statements, reserve created must be disclosed separately in the
balance sheet under the schedule 2.
2. Non-banking asset
Any asset which does not come in the ordinary course of business of a bank is called non-banking asset. The bank is not
allowed to deal in such assets. But a bank can always lend against the security of the assets. The bank may have to take
possession of the asset given as security, if the loanee fails to repay the loans. Such asset is a non-banking asset side of
the balance sheet under the head other asset. Such assets have to be disposed off within a period of seven years
from the date of acquiring these assets.
Accounting treatment of non-banking asset.
a. Any profit or loss on sale of such asset much be shown in the profit and loss account under schedule 14.
b. Non-banking assets acquired in satisfaction of claims must be disclosed separate item in balance sheet under
schedule 11 under the head other assets.
3. Rebates on bills discounted.

It is like interest received in advance and represents unearned discount for those bills which will mature after the
closing of the financial accounts. It is possible that the maturity dates of some bills may fall after the date of
preparation of final accounts, the total discount credited in respect of such bills cannot be treated as earned during the
current year. So discount for the unexpired period is debited to discount account to cancel the credit given previously
and credited to rebate on bills discounted account or unexpired discount account.
Accounting treatment in balance sheet
a. In the profit and loss account, this item is deducted from interest and discount to get the net income of
one year.
b. In the balance sheet, this item appears under the heading other liabilities under schedule 5 as
unexpired discounts.
Adjustment entry for recording unexpired discount.
The following adjustment entry should be passed in the beginning of the year:
The rebate on bills discounted account dr.
To discount account
At the end of the year, reverse entry should be followed:
Discount account a/c dr.
To rebate on bills discounted a/c
st
For example. A person gets a bill of exchange discounted on 1 February 2002 during the financial year
st
ending 31 march, 2003. The amount of the bill is say RS.1000 and it is for 3 months, the date of the
th
maturity being 4 may. This part of discount i.e. RS. 5.75 is called rebate on bills discounted.
st
31 march
Discount a/c dr. 5.75
To rebate on bills discounted a/c 5.75
(being the amount of unexpired discounted)
st
1 april
Rebate on bills discounted a/c dr. 5.75
To discount a/c 5.75
(being the amount of rebate brought in the next year.)
4.provision for bad and doubtful debts.
The banks are required to classify their advances in the following four broad groups:
(i) Standard assets (ii) sub-standard assets (iii) doubtful assets (iv) loss assets.
Provision for bad debts and doubtful debts made at different rates according to the category of bank advances.
Various rates of provisions as given by RBI are as follows:
(i) On standard basis: a minimum provision of 0.25% of total standard assets should be made as matter of
abundant questions even though there could be no risk of non-recovery or default.

(ii) On sub-standard assets: a general provision of 10% of total outstanding.
(iii) On doubtful assets: doubtful assets are to be divided into two parts, one is unsecured and other is secured
part of the doubtful assets.
On the unsecured part, a provision at the rate of 100% of the total outstanding should be made.
On the secured part provision is to be made as under:
Period for which the advance has %age of the provision for the
been considered doubtful. Secured portion.
Up to 1 year. 20%
1 year to 3 year 30%
More than 3 year. 50%
(iv) On loss assets: the entire assets should be written off if the assets are to made in the books for any reason.
Then 100% of the outstanding should be provided.
Accounting treatment.
1. Provision for bad and doubtful debts will be shown in the profit and loss account
Under the heading provisions and contingencies.
2. In the balance sheet, provisions for bad and doubtful debts will be shown in schedule 5 other liabilities
and provision.
Standard assets.
Standard asset is one which does not disclose any problem and which does not carry more than normal
risk attached to the business. Such an asset is not non-performing. However, govt guaranteed advances,
although categorised as NPA for the purpose of income recognition are to be treated as standard assets.
Further, the advances against tern deposits, NSCs eligible for surrender Indira Vikas Patra, kisan Vikas
Patras and LIC policies are to be classified as standard assets.
Sub-standard assets
st
With effect from 31 march, 2001 a sub standard asset is one in which has remained NPA for the period not
exceeding 18 months. Proper security is not available to the bank for these assets and there are chances of
that bank any suffer some loss on account of holding such assets provision @ 10% of the total outstanding
amount of these be made.
Doubtful assets
st
With effect from 31 march 2001 an asset to be classified as doubtful it has remain NPA for a period exceeding 18
months. Banks have been asked to note that a credit facility which has been classified by them as loss, doubtful etc.
According to their own norms, should not be upgraded under any circumstances.
A proper distinction is made b/w secured and unsecured portion of these assets. The unsecured portion has to be fully
provided i.e. 100% amount for provision be made against unsecured doubtful assets.
In addition to this proper provision be made against secured doubtful portion on the following basis:
Period for which the advance has been %age of the provision for the secured

considered doubtful portion
Up to 1 year. 20%
1 year to 3 tear. 30%
Loss asset
A loss asset is one where loss has been identified by the bank or internal or external auditors or RBI inspectors, but the
amount has not been written off wholly or partly. It is considered non-collected and is of such little that its continuance
as a bankable asset is not warranted although there may be some salvage coverage value. There is no security available
for such advances. These assets should be written off entirely or 100% provision should be made for the amount
outstanding.
A banking company is required to maintain a large no . of books
1. Major or principal books
2. Subsidiary books.
3. Memorandum records.
Principal or major books: following are the major books of accounts kept by banks:
a. General ledgers
b. Bill registers.
c. Cash books.
Subsidiary books: a banking company is required to maintain a large no. Of subsidiary books but more
important are given below:
1. Receiving cashiers counter cash book.
2. Paying cashiers counter cash book
3. Current accounts ledger.
4. Saving bank accounts ledger.
5. Fixed deposits accounts ledger.
6. Investment ledger
7. Bills discounted and purchased ledger.
8. Loan ledger.
9. Cash credit ledger.
10. Customers acceptance, endorsements, and guarantee ledger.
11. Recurring deposits accounts ledger.
Memorandum books: Besides the above mentioned books a bank also maintains the following chief registers
and memorandum books which are given below

1. Accounts opening and closing registers.
2. Specimen signatures book
3. Salary register, attendance register etc.
4. Stationery registers
5. Bills for collection registers
6. Demand draft registers.
7. Registers for shares and other securities held on behalf of each customer.
8. Jewellery register.
9. Safe deposit vault register
10. Standing orders registers.
11. Letters of credit register.
12. Letters of guarantee registers.
13. Safe custody registers.
Non-performing asset refers to credit facility in respect of which the principal repayment instalment is in arrears for
more than 90 days or payment of interest instalment is in arrears for 90 days beyond the due date. Interest accrued on
non-performing asset is not recognised as income and not taken to the profit and loss account in banking companies.
RBI has prescribed the following basis for treating a credit facility as non-performing:
Term loans.
A term loan is treated as NPA if interest on it remains past due for a period of two quarters. Suppose a term loan of Rs.
21 crores, interest for the past three quarters is in arrears beyond the due date. Hence the term loan is NPA.
Bills purchased and discounted.
The bills discounted must remain overdue for a period of at least 12 months i.e. 4 quarters during the year. Overdue
interest should be charged and taken as income unless it is realised.
Cash credit and overdrafts.
Cash credit and overdrafts are treated as NPA. If these remain overdue for a period of 2 quarters. An account should be
treated as out of order if the outstanding balance remains continuously in excess of the sanctioned limit/drawing
power.
Agricultural advances.
Agricultural advances are treated as NPA if interest and/or instalment remain out of order for two harvests seasons.
Other accounts
In respect of any other credit facility, it should be treated as NPA if any amount remains out of order for a period of
two quarters.
Advances. Advance includes all types of advances given to the borrower in the form of bill discounted and purchase,
cash credit, overdraft and loans repayable on demand and term loans. The total figure is shown on the assets side of
the balance sheet and the details are given in schedule no. 9. The schedule also gives break upn of the total advances

according to the nature of security as secured by tangible assets, covered by bank or govt. Guarantee and unsecured.
Advances are further classified in the schedule as advances in India and outside India.
Deposits: deposits mean excepting money from the banks or public which is repayable on demand or otherwise.
Deposits are shown in the liability side of the balance sheet under schedule 3 and withdrawable by cheque, draft, order
or otherwise.
Deposits are three categories:
1. Demand deposits : This include bank deposit repayable of demand, current, accounts, deposits payable at call
accounts etc.
2. Saving bank deposit
3. Term deposit: this include fixed deposit, cumulative and recurring deposit, ordinary staff deposit, foreign currency
non residents deposits account.
Standard assets.
Standard asset is one which does not disclose any problem and which does not carry more than normal risk attached to
the business. Such an asset is not non-performing. However, govt guaranteed advances, although categorised as NPA
for the purpose of income recognition are to be treated as standard assets. Further, the advances against tern deposits,
NSCs eligible for surrender Indira Vikas Patra, kisan Vikas Patras and LIC policies are to be classified as standard assets.
Doubtful assets.
st
A doubtful is one which remained NPA for a period exceeding 2 years. With effect from 31 march 2001 an asset to be
classified as doubtful it has remain NPA for a period exceeding 18 months. Banks have been asked to note that a credit
facility which has been classified by them as loss, doubtful etc. According to their own norms, should not be upgraded
under any circumstances.
A proper distinction is made b/w secured and unsecured portion of these assets. The unsecured portion has to be fully
provided i.e. 100% amount for provision be made against unsecured doubtful assets.
In addition to this proper provision be made against secured doubtful portion on the following basis:
Period for which the advance has been %age of the provision for the secured
considered doubtful portion
Up to 1 year. 20%
1 year to 3 tear. 30%
Non-banking assets.
Any assets which does not come in the ordinary course of business of a bank is called non-banking asset. The bank is
not allowed to deal to deal in such assets. But as bank can always land against the security, if the loanee fails to repay
the loans. Such asset as a non-banking asset appear on the asset side of the balance sheet under the head other
assets.
Accounting treatment of non-banking assets.
1. Any profit or loss on sale of such asset must be shown in the profit and loss account under schedule 14.

2. Non-banking assets acquired in satisfaction of claims must be disclosed separate items in balance sheet under the
schedule 11 under the head other assets.
Contingent liabilities
A contingent liability is one that is not an actual liability but which will become an actual one on the happening of
some event which is uncertain. Thus such liabilities have two characteristics: a. Uncertainty as to whether the amount
will be payable at all and b. Uncertainty about the amount involved. It is sufficient if the amount of such liability is
stated on the face of the balance sheet by way of a footnote unless there is a probability that a loss will materialize. In
that event it is no more a contingent liability and a specific provision should be made therefore.
Examples of such liabilities are:
1. Claims against the companies not acknowledged as debts.
2. Uncalled liability on partly paid up shares.
3. Arrears of fixed cumulative dividend.
4. Estimated amount of contracts remaining to be executed on capital account and not provided for.
5. Liability of a case pending in court.
6. Bills of exchange, guarantees given against a particular firm or person
7. Income tax, and sales tax demands under appeal.

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ACCOUNTING SOLUTIONS

SCO: 209, First Floor, Sector-36/D. Chandigarh (M): 0172-4670390-5017149, 9876149390

Preparation of annual accounts.

SCO: 209, F.F. Sector-36/D Chandigarh. 0172-4670390-5017149, 9876149390

Form of profit and loss account

Schedule no. Year ended on Year ended on

(current year) (previous year)

Provisions and contingencies

3. Profit and loss:

Transfer to statutory reserve

Transfer to other reserve

Balance carried over to

SCO: 209, F.F. Sector-36/D Chandigarh. 0172-4670390-5017149, 9876149390

YEAR ENDED ON YEAR ENDED ON

(CURRENT YEAR) (PREVIOUS YEAR)

1. Interest/discount on advanced/ bills

3. Interest on balance with reserve bank of India and

SCHEDULE 14-OTHER INCOME

YEAR ENDED ON YEAR ENDED ON

(CURRENT YEAR) (PREVIOUS YEAR)

SCO: 209, F.F. Sector-36/D Chandigarh. 0172-4670390-5017149, 9876149390

PROFIT ON SALE OF INVESTMENT

2. LESS: Loss on sale of investments.

Profit on revaluation of investment.

3. Less: loss on revaluation of investments

Profit on sale of land.

4. Less: loss on sale of land, buildings and other

Income earned by way of dividends etc. From

SCHEDULE 15-INTEREST EXPENDED

YEAR ENDED ON YEAR ENDED ON

(CURRENT YEAR) (PREVIOUS YEAR)

2. Interest on reserve bank of India/inter bank

SCHEDULE 16-OPERATING EXPENSES.

YEAR ENDED ON YEAR ENDED ON

SCO: 209, F.F. Sector-36/D Chandigarh. 0172-4670390-5017149, 9876149390

(CURRENT YEAR) (PREVIOUS YEAR)

1. Payment to and provisions for employees.

Rent, taxes and lighting.

2. Printing and stationery.

3. Advertisement and publicity.

4. Depreciation on banks property.

5. Directors fees, allowances and expenses.

6. Auditors fees, allowances and expenses

Postages, telegrams, telephones, etc.

FORM OF BALANCE SHEET

BALANCE SHEET OF.....As on 31st march (year)

Capital and liabilities Schedule As on 31-03...... As on 31-03.........

(current year) (previous year)

Reserves and surplus 2.

Other liabilities and 5.

Cash and balance with RBI 6.

SCO: 209, F.F. Sector-36/D Chandigarh. 0172-4670390-5017149, 9876149390

Money at call and short

Fixed assets 10.

Other assets 11.

Contingent liabilities 12.

Bills for collection

(current year) (previous year)

1. For nationalised banks.

Capital (fully owned by central govt)

2. For banks incorporated outside India capital:

(i)The amount brought in by banks by way of start