Saraswathi Bank Ltd - Prepare balance sheet

Ashwika Vinu (ISM)

 From the following balances of Saraswathi Bank Ltd, as on 31st March 2015, prepare its balance sheet in the prescribed form

                                                             (‘000)                                                           (‘000)

Particulars	Amount	Particulars	Amount
Paid up capital of Rs.100 each	2,000	Stamps and stationery	10
Bills discounted	1,800	Cash in hand	500
Reserve fund	770	Cash with reserve bank	1,300
Cash credits	2,000	Branch adjustment (Dr.)	170
Overdrafts	800	Investments	950
Unclaimed dividends	10	Loans (Cr.)	1,200
Loans	4,600	Recurring deposits	1,000
Current deposits	3,800	Fixed deposits	2,000
Furniture	40	Cash certificates	1,000
Profit and loss A/c	220	Contingency reserves	170

Adjustments:

a)         Rebate on bills discounted Rs. 10 thousands.

b)         Provide Rs. 80 thousands for doubtful debts.

c)         Banks acceptances on behalf of customers were Rs. 650 thousands.

Solution   

                               Banking Balance Sheet                                            (‘000)     

Capital and Liabilities	Sch. No.	Amount
Share capital	1	2,000
Reserves and surplus	2	1,070
Deposits	3	7,800
Borrowings	4	1,200
Other liabilities and provisions	5	100
Total		12,170
Assets	Sch. No.	Amount
Cash in hand and	6	1,800
Balance with RBI	7	Nil
Balance with other bank and Money at call & short notice	8	950
Advances and loans	9	9,200
Fixed assets	10	40
Other assets	11	180
Total		12,170
Contingent liabilities	12	650
Bills for collection	--	Nil

 

 

Working Notes                                                                                                                                                                                                                                                                                  (‘000)

Particulars	Amount
Sch No. 1 Shared capital: Paid up share capital of Rs. 100 each	2,000
Sch No. 2 Reserves and Surplus
Reserve fund	770
Contingency reserve	170
Profit and loss A/c (cr.)                                                            220
Less: Rebate on bills discounted                                10
Provision for doubtful debts                           80          90	130
Total	1,070
Sch No. 3 Deposits
Current deposits	3,800
Recurring deposits	1,000
Fixed deposits	2,000
Cash certificates	1,000
Total	7,800
Sch No. 4 Borrowings: Loans (Cr)	1200
Sch No. 5 Other liabilities
Unclaimed dividend	10
Rebate on bills discounted	10
Provision for doubtful debts	80
Total	100
Sch No. 6 Cash in hand and Bal. with RBI
Cash in hand	500
Cash with RBI	1,300
Total	1,800
Sch No. 7 Balance with Other Bank and Money at Call and Short Notice	Nil
Sch No. 8 Investments: Investments	950
Sch No. 9 Advances and Loans
Bill Discounted	1,000
Cash Credit	2,000
Overdraft	800
Loans	4,600
Total	9,200
Sch No. 10 Fixed Assets: Furniture	40
Sch No. 11 Other Assets
Stamps Stationery	10
Branch adjustment (Dr.) Total	170
	180
Sch No. 12 Contingent liabilities: Bank acceptances on behalf of customers	650
Bills for collection: Endorsement on bills for collection	Nil