TYBBI & TYBAF SANJAY SIR

“Banking Company”
Home Work:
“Rebate on Bills Discounted”
Q.1. ABC Bank Ltd. has following bills in its hands on 31st march, 2015

Date of Bill Amount (Rs.) Term in month Discount @ % p.a.

Jan. 11 80,000 4 20
Feb. 12 90,000 3 19
March 8 2,10,000 4 13.5
Calculate Rebate on Bill Discounted and also Pass Required Journal entry.

Q.2. PQR Bank Ltd. Gives you the following details as 31-03-2015:

Bill No. Date of Bill Amount (Rs.) Period of Bill Discounted on

101 21-02-2015 10,00,000 4 Month 28-02-2015
106 28-02-2015 8,00,000 4 Month 20-03-2015
108 10-03-2015 6,00,000 3 Month 23-03-2015
109 15-03-2015 14,00,000 3 Month 30-03-2015
The bills were discounted @ 15% p.a. You are required to find out the amount of Rebate on Bill Discounted. Also Pass
Journal Entries for Discount and Rebate.

Q.3. The Following details are available from the books of Ram bank LTD. as on 31.03-2015.

Bill No. Amount Rs. Date of Discount Rate of Discount Due Date
102 20 lakhs 01-03-2015 15% 30-05-2015
104 10 lakhs 10-03-2015 12% 13-06-2015
106 16 lakhs 15-03-2015 14% 18-06-2015
110 14 lakhs 20-03-2015 11.5% 23-06-2015
Q.4. Calculate rebate on Bill Discounted as on 31-03-2006 from the following data and show the journal entry to
be passed for this purpose:

Date of Bill Amount (Rs.) Term in month Discount @ % p.a.

15-01-2006 2,50,000 5 9
10-02-2006 1,50,000 4 9
25-02-2006 2,00,000 4 8
20-03-2006 3,00,000 3 8
“Non- Performing Assets”
Q.5. While closing the books of accounts of PQR Bank Ltd

Advances Rs. Lakhs

Standard 16,000
Sub- standard (Secured) 1,300
Sub- standard (Unsecured) 1,000
Doubtful Assets (Secured) :-
Upto 1 year 700
1 to 3 year 500
Above 3 Year 400
Loos Assets 200
You are required to calculate the amount of provision for NPA to be made by the bank 31-03-2005.

1
TYBBI & TYBAF SANJAY SIR
Q.5. While closing the books of accounts of SBI Bank Ltd

Advances Rs. Lakhs

Standard 15,000
Sub- standard (Secured) 5,000
Sub- standard (Unsecured) 4,000
Doubtful Assets (Unsecured) 2,000
Doubtful Assets (Secured) :-
Upto 1 year 1,000
1 to 3 year 500
Above 3 Year 700
Loos Assets 800
You are required to calculate the amount of provision for NPA to be made by the bank 31-03-2002.

“Profit and Loss account”

Q.1. Prepare Profit and Loss Statement of P Bank Ltd. for the year ended 31-03-2013:

Particulars Amt. (Rs.) Particulars Amt. (Rs.)

Interest on Loan 53,20,000 Interest on Fixed Deposit 45,00,000
Rebate on Bill Discounted (31- Commission 2,24,000
03-12) 8,40,000 Discount on Bill Dicounted 32,76,000
Establishment Charges 9,60,000 Interest on current Account 15,00,000
Interest on cash Credit 45,00,000 Auditors Fees 32,000
Rent and Rates 5,00,000 Postage 24,000
Director Fees 1,30,000 Printing and Stationery 44,000
Interest on Saving Account 14,32,000 Sundry Charges 52,000
Additional Information:
1) Advances were irrecoverable to the extent of Rs.8, 00,000.
2) Provision for tax to be made @ 40%
3) Transfer 20% of the profit to Statutory Reserve.
4) Rebate on Bill discounted on 31st March, 2013 accounts to Rs.5, 60,000.

Q.2. Prepare Profit and Loss Account of xyz Bank Ltd. for the year ended 31-03-2012:
Particulars Amt. (Rs.)
Interest on Loan 6,98,000
Interest on Fixed Deposits 7,30,000
Rebate on Bill Discounted as on 31-03-2012 96,000
Commission 18,200
Salaries 3,10,000
Discount on Bill Discounted 3,88,000
Interest On Cash Credit 4,48,000
Locker Rent 24,000
Rent and Rates 36,000
Interest On Overdraft 2,56,000
Directors Fees 4,000
Auditors Fees 4,400
Interest on Saving Account 1,38,000
Postage And Telegram 3,000
Printing and Stationery 7,800
Sundry Charges 3,000
2
TYBBI & TYBAF SANJAY SIR
Provide Rs.1, 60, 000 for taxation.

Q.3. From the following information, prepare Profit and Loss Account of I Bank Ltd for the year 31 st March, 2011

Particulars Amt. (Rs.)

Interest on Balances With RBI 4,00,000
Interest Received on Loan 51,40,000
Interest on Fixed Deposit 41,00,000
Rebate on Bill discounted (1st -04-2010) 10,00,000
Commission, Exchange And Brokerage 2,16,000
Establishment Charges 10,80,000
Discount on bill discounted 29,20,000
Interest on cash credit 44,60,000
Rent and Rates 3,60,000
Interest on Overdraft 30,80,000
Director Fees 60,000
Auditors Fees 24,000
Interest on saving bank Deposit 12,00,000
Postage And Telegram 28,000
Printing and Stationery 58,000
Sundry Charges (Cr.) 34,000
Profit and Loss Account (1st -04-2010) 4,00,000
Dividend on Share 1,00,000
Additional Information:
1) Bad Debts Amounted to Rs.2, 00,000.
2) Provision for taxation @ 35%
3) Rebate on Bill discounted on 31st March, 2011 accounts to Rs.6, 00,000.
4) Transfer 30% of the profit to Statutory Reserve and 5% to revenue Reserve.

Q.4. From the following particulars prepare the profit and loss account of M bank Ltd. for the year ended 31st March,
2011.

Particulars Amt. (Rs.)

Commission Charged 28,000
Discount on Bill Discounted 8,40,000
Director And Auditors Fees 20,000
Establishment Expenses 2,40,000
Interest on Loan 11,20,000
Interest on FD 11,92,000
Interest on Cash Credit 9,60,000
Sundry Expenses 8,000
Interest On Current Account 1,80,000
Interest on Overdraft 2,40,000
Interest on Saving Bank Account 2,88,000
Postage and Telegram 8,000
Printing and Stationery 12,000
Rebate on Bill Discount 2,20,000
Rent ant taxes 88,000
Additional Information:
a) Make Provision of Doubtful Debt Rs.1,20,000
b) Transfer 20% profit to Statutory Reserves.

3
TYBBI & TYBAF SANJAY SIR
Q.5. From the following information prepare Profit and Loss account for S Bank ltd for the year ended 31st March,
2011.

Particulars Amt. (Rs.)

Interest on Loan 51,80,000
Interest on Fixed Deposit 55,00,000
Rebate on Bill Discount 9,80,000
Commission 1,64,000
Establishment Charges 10,80,000
Discount on Bill Dicounted Net 29,20,000
Interest on Cash Credit 44,60,000
Interest On Current Account 8,40,000
Rant and Rates 3,60,000
Interest On Overdraft 30,80,000
Directors Fees 60,000
Auditors Fees 24,000
Interest on Saving Bank Deposits 13,60,000
Postage and Telegram 28,000
Printing and stationery 58,000
Sundry charges 34,000
Bad Debts Written Off 8,00,000
Taxation Provision @ 55% to be Made ?
Statutory Reserves @ 25% to be transferred ?

Q.6. From the following information prepare profit and Loss account of ABC bank Ltd. for the year ended 31 st march,
2010.

Particulars Amt. Rs,000 Particulars Amt. Rs,000

Interest On Loans 600 Interest on Saving Bank deposits 174
Interest on Fixed Deposits 550 Postage , Telegram And stamp 20
Commission Received 20 Printing and Stationery 40
Exchange And Brokerage Received 40 Sundry Expenses 20
Salaries and Allowances 300 Rent and Taxes 50
Discount on Bill (Gross) 304 Audit Fees 20
Interest on Cash Credit 480 Establishment Charge 80
Interest on Temporary account 60 Director Fees 60
Additional Information:
a) Rebate on Bill discounted Rs.60,000
b) Provision for tax to be made @ 40% (Round off to nearest thousand)
c) Interest of Rs.8,000 on Doubtful debt was wrongly credited to interest on Loan account

Q.7. You are given the following information with a request to prepare profit and loss account of XAIS Bank ltd. For
the year ended 31st march, 2009.
Particulars Amt. (Rs.)
Interest on Loan 5,18,000
Interest on Fixed Deposits 5,50,000
Rebate on Bill Discounted Required 98,000
Commission 1,64,000
Administration Charges 1,08,000
Discount on Bill discounted (net) 39,00,000
Interest on Current account 84,000

4
TYBBI & TYBAF SANJAY SIR
Interest on Cash credit 4,46,000
Rent / Rates and Taxes 36,000
Interest on Bank Overdraft 3,08,000
Directors Meeting Fees 6,000
Audit Fees 2,400
Interest on saving Bank Deposits 1,36,000
Postage and Telegram 2,800
Printing and Stationery 5,800
Sundry Charges Received 3,400
Write of Bad Debts 80,000
Provision for taxation to be Made @ 40% ?

Q.8. From the Following balance Prepare profit and Loss account of Azad Bank Ltd, for the year ended 31 st March,
2006
Particulars Amt. Rs Particulars Amt. Rs
Interest On Loans 10,36,000 Interest on Fixed Deposits 11,00,000
Commission Received 32,800 Salaries and Allowances 2,16,000
Discount on Bill Discounted 1,68,000 Interest on Cash Credit 8,92,000
Interest on Current account (Cr) 4,40,000 Rent And Taxes 72,000
Interest on Overdraft 6,16,000 Directors Fees 16,800
Interest on saving Bank Account 2,72,000 Postage and Telegram 17,200
Locker Rent 4,000 Transfer Fess 2,800
Sundry Charges 6,800
Depreciation On bank Properties 20,000
Other Information
a) Rebate on Bill Discounted Rs.38,000
b) Bad Debts Rs.1,60,000
c) Provision for the tax Rs.6, 00,000.

Q.9. From the following particulars prepare the profit and loss account of Andhra bank Ltd for the year ended 31st
amrch,2004.
Particulars Amt. Rs Particulars Amt. Rs
Commission charged 1,40,000 Interest on Current account 9,00,000
Discount on Bill Discounted 42,00,000 Interest on Overdraft 12,00,000
Directors and Auditors Fees 1,00,000 Interest on Saving Bank Account 14,40,000
Establishment Expenses 12,00,000 Postage and Telegram. 40,000
Interest On Loan 56,00,000 Printing And Stationery 60,000
Interest on Fixed Deposits 58,00,000 Unexpired Discount on the bill Discounted 11,00,000
Interest on Cash Credit 48,00,000 Rent and Tax 4,40,000
Sundry Expenses 40,000
Make provision for Doubtful Debt Rs.6, 00,000

Balance Sheet
Q.1. On 31st March, 2006 the Following balance stood in books of ABC Bank Ltd after preparing final Accounts:
Particulars Amt. Rs. (000) Particulars Amt. Rs.(000)
Share Capital 14,000 Reserve Fund 9,800
Current Accounts (Credit) 2,24,000 Fixed Deposits Accounts 26,600
Money at call and short Notice 8,400 Saving Bank Account 84,000
Profit and Loss Account Investment (at cost) 84,000
(Credit – 01-04-2005) 5,880 Dividend for 2005 1,400

5
TYBBI & TYBAF SANJAY SIR
Land and Building 29780 Cash in Hand 1,680
Cash with RBI 42,000 Loans, Overdraft & Cash Credit 1,96,000
Cash with Other Banks 36,400 Borrowings from other Banks 17,600
Bill Discounted and Purchased 16,800 Sundry Creditors 840
Unclaimed Dividend 840 Bills payable 22,400
Acceptance on behalf of customers 5,600 Bills of Exchange 3,920
Net profit for 2005 -06 6,720
The net profit is after charging provision for Bad Debts Rs.8, 40,000 for provision Rs.28, 00,000 and Rebate on Bills
Discounted Rs.1, 40, 000. Prepare Balance Sheet of the Bank at 31st March, 2006.
Q.2. On 31st March, 2006 The following balance stood in the books of PQR Bank Ltd. after preparing Profit and loss
accounts:
Particulars Amt. Particulars Amt.
Rs.(000) Rs.(000)
Share Capital 70,000 Fixed deposits Accounts 1,33,000
Reserve Fund 49,000 Saving Bank Accounts 4,20,000
Current Accounts (Credit) 11,20,000 Money at Call and Short Notice 42,000
Investment 4,20,000 Profit and Loss account (Credit as on 1-04-2005) 29,400
Dividends for 2005 paid 7,000 Land Building(After Dep. Upto 31-03-2005) 1,48,900
Cash in Hand 8,400 Cash With RBI 2,10,000
Cash with Other Bank 1,82,000 Loans, Overdraft and Cash Credits 9,80,000
Borrowings from other banks 88,000 Bill Discounted and Purchased 84,000
Sundry Creditors 4,200 Bill Payable 1,12,000
Unclaimed Dividend 4,200 Bill for Collection 19,600
Acceptance on behalf of customers 28,000 Net profit for 2005-06 33,600
The net Profit for the year After Deducting, provisions for bad Debts 42,00,000, tax Provision 14,00,000 and rebate on
Bill Discounted 7,00,000.

Q.3. Prepare the balance Sheet Janakalyan Bank Ltd. as on 31st March, 2007 from the following Particulars:

Particulars Rs. Lakhs Particulars Rs. Lakhs

Investment 60 Building 30
Money at call and short Notice 10 Furniture 6
Paid Up Capital 20 Loans and Advances 16
Acceptances and endorsements for customers 4 Cash Credit 6
Reserves Funds 20 Fixed deposits 48
Bill Discounted and Purchased 8 Saving Deposits 22
Bills Payable 10 Net Profit 8
Current accounts 28 Cash and Balance with RBI 20
Bills for Collection 60
The net Profit is arrived at before making adjustment for unexpired discount of Rs.2, 00,000 for Bill Discounted During
the current year but not matured till the end of the year. Investment includes 1, 00,000 equity shares of Rs.10 each of
which Rs.5 is Paid up.

Q.4. From the following information, prepare Balance Sheet of Company Bank Ltd. as on 31st March,2016.

Debit Balance Dr. Rs. Lakhs Credit balance Cr. Rs. Lakhs
Current Account 56 Share Capital 396
Cash Credits 1,624 Statutory Reserves 462
Cash In Hand 320 Profit for the Year 300
Cash With RBI 74 Profit and Loss Account 824
Cash with Other Banks 310 Fixed Deposits 1034
6
TYBBI & TYBAF SANJAY SIR
Money at Call and Short Notice 420 Saving Deposits 900
Gold 110 Current Accounts 1040
Government Securities 220 Bills Payable 12
Premises 310 Borrowings From Other Banks 200
Furniture 140
Term Loans 1,584
5,168 5,168
Additional Information:

1. Bill For Collection were Rs.36.20 Lakhs

2. Acceptances and Endorsements were Rs.28.24 Lakhs.
3. Claim against the bank not acknowledged as debts were Rs.10.10 Lakhs.

Q.5. from the Following Balances, Prepare Balance Sheet of Ravi – Kiran Bank Ltd for the year ended 31st March, 2006.

Particulars Rs. Lakhs Particulars Rs. Lakhs

Share Capital 40 Cash in Hand `24
Statutory Reserves 20 Cash With RBI 48
Profit and Loss Account 08 Money at Call short Notice 72
Capital Reserves 04 Investment In Government Securities 56
Saving Deposits 58 Investment In Gold 40
Fixed Deposits 80 Cash Credit 72
Other Deposits 84 Overdrafts 60
Borrowings from RBI 48 Term Loans 120
Borrowing from Other Banks (Secured) 160 Premises 50
Bills Payable 06 Provision for taxation 06
Inter Office Adjustments (Credit ) 28
The Authorised capital of the bank was Rs.100 lakh Divided into 5 lakhs Shares of Rs.10 Each. The Bank Has Bill for
Collection to the extent of Rs.24 lakhs.

Q.6. On 31st March, 2000, the following balance stood in the books of New Bank Ltd, after Preparing Profit and Loss
Account.

Particulars Rs. Lakhs Particulars Rs. Lakhs

Share Capital 35,00,000 Reserves Fund 24,50,000
Fixed Deposits 66,50,000 Saving Bank Account 2,10,00,000
Current Account 5,60,00,000 Money at Call and short Notice 21,00,000
Investments 2,10,00,000 Profit and Loss Account (Cr.) 14,70,000
Dividends for 1999 3,50,000 Land and Building 74,45,000
Cash in Hand 4,20,000 Cash with RBI 1,05,00,000
Cash with Other Banks 91,00,000 Borrowing from Other Banks 44,00,000
Bill Discounted and Purchased 42,00,000 Sundry Creditors 2,10,000
Bills Payable 56,00,000 Unclaimed Dividends 2,10,0000
Bill for Collection 9,80,000 Acceptance on Behalf of Customers 14,00,000
Net Profit for the year 16,80,000 Loans, Overdraft and Cash credits 4,90,00,000
The net profit is after deducting provisions for bad debts Rs.2,10,000, tax Provision of Rs.7,00,000 and Rebate on bill
discounted Rs. 35,000. Prepare the balance Sheet as at 31-03-2000.

7
 TYBBI & TYBAF SANJAY SIR
Final Account
Q.1. From the following, you are required to prepare the profit and loss account and balance sheet of ABC as on 31-03-
2014
Particulars DR. Rs. CR. Rs.
Issued Capital: (20,000 Shares of Rs.100Each) 40,00,000
Money at call and Short Notice 2,00,000 -
Reserve Fund - 20,00,000
Cash in Hand 16,00,000 -
Deposits - 74,00,000
Cash at Bank 24,00,000 -
Borrowing from RBI - 21,00,000
Investment in government Securities 26,00,000 -
Secured Loans 44,00,000 -
Cash Credits 15,50,000 -
Premises less Depreciation 17,00,000 -
Furniture less Depreciation 3,00,000 -
Rent 15,000 -
Interest and discounts - 24,00,000
Commission and Brokerage - 2,10,000
Interest paid on Deposits 9,00,000 -
Salary and Allowance 4,00,000 -
Interest paid on Borrowings 1,50,000 -
Audit fees 20,000 -
Directors Fees 24,000 -
Non- Banking Assets 2,00,000 -
Depreciation on Bank’s Property 39,000 -
Printing 9,000 -
Advertisement 3,000 -
Stationery 15,000 -
Rent Received - 1,80,000
Postage and Telegrams 6,000 -
Other Expenses 9,000 -
Profit on sale of Investment - 10,000
Loss on sale of Investment 10,000 -
1,83,00,000 1,83,00,000
Additional Information:
1. Provide Rs.40, 000 for doubtful debts. 3. Acceptance and endorsement on behalf of
2. Provide Rs.50, 000 on bill discounted but not customer amounting to Rs.2,00,000
matured on 31st -03-2014. 4. Provide Rs.80, 000 for taxes.

Q.2. From the following particulars, prepare the final account of SBI Bank Ltd.
Trial Balance as on 31st March, 2014
Particulars DR. Rs. CR. Rs.
Share Capital : 1,00,000 Shares of Rs.10Each; Rs.5 paid up - 10,00,000
Reserve Fund - 20,00,000
Fixed Deposits - 40,00,000
Saving Bank Deposits - 60,00,000
Current Accounts - 1,40,00,000
Borrowing from Bank - 4,00,000
Investments 60,00,000 -
Premises 24,00,000 -
8
TYBBI & TYBAF SANJAY SIR
Cash In Hand 1,20,000 -
Cash in Bank 56,00,000 -
Money at call and short Notice 6,00,000 -
Interest accrued and Paid 4,00,000 -
Salaries 1,60,000 -
Rent 60,000 -
Profit and Loss account (1-04-2013) - 3,20,000
Net profit for the year - 9,00,000
Bill discounted 10,00,000 -
Bill Payable - 16,00,000
Loans , Advances, Overdraft and Cash Credits 1,40,00,000 -
Unclaimed Dividend - 60,000
Sundry Creditors - 60,000
3,03,40,000 3,03,40,000
The bank has the Bill for Rs.28, 00,000 as Collection for its Constituents and also acceptances and Endorsement for them
amounting to Rs. 8, 00,000.

Q.3. The following is the Trial Balance of PQR Ltd. as on 31st march, 2006.
Particulars DR. Rs. CR. Rs.
Share capital 30,000 shares of Rs. 10each - 6,00,000
Statutory Reserves - 8,00,000
Deposits: - -
Fixed - 5,56,000
Saving - 9,00,000
Current - 7,48,000
Cash in hand 2,90,000 -
Cash with Reserve Bank of India 4,20,000 -
Interest and Discount - 6,00,000
Commission and brokerage - 1,00,000
Interest on Fixed Deposits 30,000 -
Interest on Saving Deposits 20,000 -
Interest on Current Deposits 12,000 -
Salaries (Including Rs.12,000 to Manager) 1,31,000 -
Rent, insurance , taxes 4,000 -
Postage and Telegram 900 -
Printing and Stationery 7,000 -
Audit fees 4,000 -
Depreciation 3,100 -
Investment in shares 84,000 -
Loans, Cash credit and Overdraft 4,90,000 -
Bill Discounted and Purchased 1,80,000 -
Government Bonds 1,60,000 -
Furniture 40,000 -
Premises 3,00,000 -
Branch adjustment account - 48,000
43,52,000 43,52,000
Additional Information:
1. Rebate on Bill Discounted Rs.44, 000. 3. Acceptances on Behalf of customers Rs.3, 60,000.
2. Create Reserve for Bad and Doubtful Debts Rs.24, 000.
You are required to Prepare Profit and Loss Account for the Year ended 31 st march, 2006 and Balance Sheet as on that date.

9
TYBBI & TYBAF SANJAY SIR
Q.4. The following is the Trial balance of SUMIT Bank Ltd. as on 31st march, 2006.
Particulars DR. Rs. CR. Rs.
Share Capital - 1,000
Statutory Reserves - 500
Loans, Cash Credit and Overdraft. 570 -
Premises 120 -
Government Securities 800 -
Fixed Deposits - 200
Saving Deposits - 250
Current Deposits - 100
Interest on Deposits 28 -
Salaries and Allowances 56 -
General Expenses 52 -
Rent and rates 08 -
Directors Fees 04 -
Profit and Loss Accounts - 32
Interest and discount - 256
Printing and Stationery 16 -
Bills Purchased and Discounted 92 -
Interim Dividend 34 -
Investment in shares 38 -
Cash In Hand 178 -
Cash with RBI 206 -
Money at call and Short Notice 164 -
Borrowings From Banks - 28
2366 2366
The following information is also available:
1. Unexpired Discount Amounted Rs.7.6
2. Endorsement on Behalf of customers Were Rs.23

10
TYBBI & TYBAF SANJAY SIR
st
Prepare Profit and Loss Account For the year ended 31 March, 2006 and Balance sheet as on that date.

Q.5. the Following is the Trial Balance of RAMESH Bank Ltd. as on 31-03-2006.
Particulars DR. Rs. CR. Rs.
Share Capital - 6,000
Statutory Reserves - 8,000
Fixed Deposits - 5,560
Saving Deposits - 8,400
Current Deposits - 7,480
Cash In Hand 580 -
Cash With RBI 840 -
Interest and Discount - 6,000
Commission and Brokerage - 1,000
Interest on Fixed Deposits 600 -
Interest On Saving Deposits 400 -
Interest On Current Deposits 250 -
Salaries and Allowances 2,020 -
Rent , Insurance 80 -
Postage 180 -
Printing and Stationery 1,400 -
Audit fees 80 -
Depreciation 660 -
Investment in share 1,680 -
Loans, Cash Credit and Overdraft 21,800 -
Bills Discounted and Purchased 3,600 -
Government Bonds 3,200 -
Furniture 800 -
Premises 600 -
Branch Adjustment 3,670 -
42,440 42,440
Additional Information:
1. Rebate on Bill Discounted Rs.540.
2. Create reserves for Doubtful debts Rs.220
3. Acceptance on behalf of customer Rs.1,600
You are required to prepare profit and loss account for the year ended 31-03-2006 and Balance sheet as
on that date

11