CORPORATE ACCOUNTIG EXAMINATION

1V SEMESTER

1. Give the meaning of inter office adjustments. (2 marks)

2. Write a note on rebate on bills discounted. (2 marks)

3. The following is the trial balance extracted from the books of Mythri Bank Ltd. You are required
to prepare profit & loss account as on 31-3-2008 after consideration the adjustments. (20 marks)

Trial balance as on 31-3-2008

 Dr Cr
6,000 equity shares of Rs.100 each 6,00,000
3,000 8% preference shares of 10 each 3,00,000 Adjustments:

Fixed deposits 3,50,000 1. Provide

for bad
Savings bank deposits 2,50,000
debts
Current account 6,00,000 15,000

Reserve fund 3,00,000 2. Provide

Interest and discounts 3,00,000 for rebate
on bills
Money at call & short notice 3,00,000 discounted
Cash in hand 3,00,000 3,000

Cash at banks 3,60,000 3. Acceptanc

es on
Investments in govt. Securities 1,80,000
behalf of
Loans& cash credits 13,48,000 the
customers
Furniture less depreciation 30,000
4,50,000
Premises less depreciation 2,52,000
4. Bills for
Borrowings from city commercial 1,20,000 collection
banks 4,20,000
Unclaimed dividends 36,000
Pension fund 90,000
Rent 12,000
Commission received 48,000
Interest on borrowings and deposits 1,80,000
Salaries and allowances to staff 48,000
Audit fees 6,000
Directors fees 3,000
Depreciation on bank property 6,000
Printing & stationary 3,000
Non-banking assets 30,000
Other expenses 1,800
Profit & loss account balance 42,000

TOTAL 30,48,000 30,48,000