40

relief available when the advance is written off will be accounted for in the year of wnte-off. (d) Fixed Assets: The premises and other fixed assets except for foreign branches are accounted for at their historical cost. Depreciation has been provided on written down value method at the rates specified in the Income Tax Rules, 1962. Depreciation in respect of assets of foreign branches has been provided as per the local laws. Illustration 2 From the following information, prepare Profit and Loss A/c of Dimple Bank as on 31-3-2013: 000 Item '000 2011-12 2012-13 14,27 Interest and Discount 20,45 1,14 Income from investment 1,12 1,55 Interest on Balances with RBI 7,22 Commission, Exchange and Brokerage 12 Profit on sale of investments 6,12 Interest on Deposits 1.27 Interest to RBI 7,27 Payment to and provision for employees 1,58 Rent, taxes and lighting 1,47 Printing and stationery 1.12 Advertisement and publicity 98 Depreciation 1,48 Director's fees 1.10 | Auditor's fees 50 Law charges 48 Postage, telegrams and telephones 42 Insurance 57 Repair & maintenance Also give necessary Schedules. Other Information: (0) The following items are already adjusted with Interest and Discount (Cr.): Tax Provision ('000) 1.48 Provision for Doubtful Debts (0007 92 Loss on sale of investments (000) 12 Rebate on Bills discounted ('000 55 (ii) Appropriations : 25% of profit is transferred to Statutory Reserves 5% of profit is transferred to Revenue Reserve. 1,77 7,12 1,22 8,22 1.47 8,55 1.79 2,12 98 98 2,12 1,10 1,52 62 52 66