Final Accounts of Banking Companies

05/05/2021 1 By indiafreenotes

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 31^st 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 31^st 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 31^st 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 31^st 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