by Format of Profit and Loss Account of Banking Company
Banks are required to prepare final accounts for each financial year, i.e., its books are closed each year on 31st March. But for internal purpose, banks usually close their books on 30th September. A banking company is required to prepare its Profit and Loss Account according to Form B in the Third Schedule to the Banking Regulation Act, 1949. From B is in a summary form and the details of the various items are given in the schedules. From B is given as follows:
From ‘B’
Form of Profit and Loss Account
For the year ended 31st March, (Year)
| Particulars | Schedule No. | Year ended on 31-3-(Current Year) | Year ended 31-3- (Previous Year) |
| I. Income
Interest earned Other Income |
13 14 |
||
| Total: | |||
| II. Expenditure
Interest expended Operating expenses Provisions and contingencies |
15 16 |
||
| Total: | |||
| III. Profit/Loss
Net Profit/Loss (-) for the year Profit/Loss (-) brought forward |
|||
| Total: | |||
| IV. Appropriations
Transfer to statutory reserve Transfer to other reserves Transfer to Government/Proposed dividend Balance carried over to balance sheet |
|||
| Total: |
SCHEDULE 13: INEREST EARNED
| Year ended on 31-3-(Current Year) | Year ended 31-3- (Previous Year) | |
| I. Interest/discount on advances/bills
II. Income on investments III. Interest on balances with Reserve Bank of India and other inter-bank funds IV. Others |
||
| Total: |
SCHEDULE 14: OTHER INCOME
| Year ended on 31-3-(Current Year) | Year ended 31-3- (Previous Year) | |
| I.Commission, exchange and brokerage
II.Profit on sale of investments Less: Loss on sale of investments III. Profit on revaluation of investments Less: Loss on revaluation of investments IV. Profit on sale of land, buildings and other assets Less: Loss on sale of land, buildings and other assets V. Profit on exchange transactions Less: Loss on exchange transaction VI. Income earned by way of dividends etc. from subsidiaries/companies and/or joint ventures abroad/in India VII. Miscellaneous Incomes |
||
| Total: |
SCHEDULE 15: INTEREST EXPENDED
| Year ended on 31-3-(Current Year) | Year ended 31-3- (Previous Year) | |
| I. Interest on deposits
II. Interest on Reserve Bank of India/Inter-bank borrowings III. Others |
||
| Total: |
SCHEDULE 16: OPERATING EXPENSES
| Year ended on 31-3-(Current Year) | Year ended 31-3- (Previous Year) | |
| I. Payments to and provisions for employees
II. Rent, taxes and lighting III. Printing and stationery IV. Advertisement and publicity V. Depreciation on bank’s property VI. Directors’ fees, allowances and expenses VII. Auditors’ fees, allowances and expenses (including branch auditors) VIII. Law charges IX. Postage, telegrams, telephone, etc. X. Repairs and maintenance XI. Insurance XII. Other expenditure |
||
| Total: |
Format of Balance Sheet of a Banking Company
Preparation of Balance Sheet
The Balance sheet of a banking company is to be prepared in Form A given in third schedule to the Act. Unlike the previous form the present one is devoid of details, the latter being shown in the schedules. RBI has given guidelines for compiling the balance sheet. Below are given From A, the schedules there under and the instructions of RBI and in that order.
- THE THIRD SCHEDULE
(See Section 29)
From ‘A’
FROM OF BALANCE SHEET
Balance Sheet of …………….. (Here enter name of the Banking Company)
Balance Sheet as on 31st March (Year)
| Schedule | As on 31.3.20..
(current year) |
As on 31.3.20..
(previous year) |
|
| Capital & Liabilities
Capital Reserves & Surplus Deposits Borrowings Other liabilities and provisions |
1 2 3 4 5 |
||
| Total: | |||
| Assets
Cash and balance with Reserve Bank of India Balances with banks and money at call and short notice Investments Advances Fixed Assets Other Assets |
6
7 8 9 10 11 |
||
| Total: | |||
| Contingent Liabilities
Bills for collection |
12 |
Schedule 1 – Capital
| Particulars | As on 31.3…
(current year) |
As on 31.3…
(previous year) |
|
| I | For Nationalized Banks
Capital (Fully owned by Central Government) |
||
| II | For Banks Incorporated Outside India
Capital (i) (The amount brought in by banks by way of startup capital as prescribed by RBI should be shown under this head) (ii) Amount of deposit kept with the RBI under Section 11(2) of the Banking Regulation Act, 1949. |
||
| Total | |||
| III | For Other Banks
Authorized Capital (Shares of Rs. Each) Issued Capital (shares of Rs. Each) Subscribed capital (Shared of Rs. Each) Called-up Capital (Shares of Rs. Each) Less: Called unpaid Add: Forfeited shares. |
Schedules 2 – Reserve & Surplus
| Particulars | As on 31.3…
(current year) |
As on 31.3…
(previous year) |
|
| I | Statutory Reserve
Opening Balance Additions during the year Deductions during the year |
||
| II | Capital Reserves
Opening Balance Additions during the year Deductions during the year |
||
| III | Share Premium
Opening Balance Additions during the year Deductions during the year |
||
| IV | Revenue and other Reserves
Opening Balance Additions during the year Deductions during the year |
||
| V | Balance in Profit and Loss Account | ||
| Total:
(I,, II,, III,, IV and V) |
Schedule 3 – Deposits
| Particulars | As on 31.3…
(current year) |
As on 31.3…
(previous year) |
|
| A.I | Demand Deposits
(i) From banks (ii) From others |
||
| II | Saving Bank Deposits | ||
| III | Term Deposits
(i) From banks (ii) From others |
||
| Total:
(I, II and III) B. (i) Deposits of branches in India (ii) Deposits of branches outside India |
|||
| Total: |
Schedule 4 – Borrowings
| Particulars | As on 31.3…
(current year) |
As on 31.3…
(previous year) |
|
| I | Borrowings in India
(i) Reserve Bank of India (ii) Other banks (iii) Other institutions and agencies |
||
| II | Borrowings outside India
Total (I and II) |
||
Secured borrowings in I & II above – Rs.
Schedule 5: Other Liabilities and Provisions
| Particulars | As on 31.3…
(current year) |
As on 31.3…
(previous year) |
|
| I | Bills Payable | ||
| II | Inter-office adjustment (net) | ||
| III | Interest accrued | ||
| IV | Other (including provisions | ||
| Total |
Schedule 6: Cash and Balances with Reserve Bank of India
| Particulars | As on 31.3…
(current year) |
As on 31.3…
(previous year) |
|
| I | Cash in hand (including foreign currency notes) | ||
| II | Balances with Reserve Bank of India
(i) In Current Account (ii) In other Accounts
|
||
| Total: (I & II)
|
Schedule 7 – Balances with Banks & Money at Call & Short Notice
| Particulars | As on 31.3…
(current year) |
As on 31.3…
(previous year) |
|
| I | In India
(i) Balances with Banks (a) in Current Accounts (b) in other Deposit Accounts (ii) Money at call and short notice (a) With banks (b) With other institutions |
||
| Total (I & II) | |||
| II. | Outside India
(i) in Current Accounts (ii) in other Deposit Accounts (iii) Money at call and short notice
|
||
| Total:
|
|||
| GRAND TOTAL:
(I & II) |
Schedule 8 – Investments
| Particulars | As on 31.3…
(current year) |
As on 31.3…
(previous year) |
|
| I. | Investments in India In
(i) Government securities (ii) Other approved securities (iii) Shares (iv) Debentures and Bonds (v) Subsidiaries and/or joint ventures (vi) Other (to be specified) |
||
| Total: | |||
| II. | Investments outside India in
(i) Government securities (including local authorities) (ii) Subsidiaries and/or joint ventures abroad (iii) Other investments (to be specified) |
||
| Total:
|
|||
| GRAND TOTAL:(I & II) |
Schedule 9: Advances
| Particulars | As on 31.3…
(current year) |
As on 31.3…
(previous year) |
|
| A. | (i) Bills purchase and discounted
(ii) Cash credits overdrafts and Loans repayable on demand (iii) Term Loans |
||
| Total: | |||
| B. | (i) Secured by tangible assets
(ii) Covered by Bank/Government Guarantees (iii) Unsecured |
||
| Total: | |||
| C. | 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 (a) Bills purchased and discounted (b) Syndicated Loans (c)Others |
|||
| Total: | |||
| Grand Total (C.I and II) |
Schedule 10: Fixed Assets
| Particulars | As on 31.3…
(current year) |
As on 31.3…
(previous year) |
|
| I | Premises
At cost as on 31st March of the preceding year Additions during the year Deductions during the year Depreciation to date |
||
| II. | Other Fixed Assets
(including Furniture and Fixtures) At cost as on 31st March of the preceding year Additions during the year Deductions during the year Depreciation to date |
||
| Total: (I & II)
|
|||
| TOTAL |
Schedule 11: Other Assets
| Particulars | As on 31.3…
(current year) |
As on 31.3…
(previous year) |
|
| I | Inter-office adjustment (net) | ||
| II. | Interest accrued | ||
| III. | Tax paid in advance/tax deducted at source
|
||
| IV. | Stationery and Stamps | ||
| V. | Non-banking assets acquired in satisfaction of claims | ||
| Vi. | Others | ||
| Total |
Schedule 12: Contingent Liabilities
| Particulars | As on 31.3…
(current year) |
As on 31.3…
(previous year) |
|
| I | Claims against the bank not acknowledged as debts | ||
| II. | Liability for partly paid investments | ||
| III. | Liability on account of outstanding forward exchange contracts
|
||
| IV. | Guarantees given on behalf of constituents
(a) In India (b) Outside India |
||
| V. | Acceptances endorsements and other obligations | ||
| Vi. | Other items for which the bank is contingently liable | ||
| Total |
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