55 PROBLEM 7 Following figures are extracted from the books of the New Bank Ltd. as on 31st March, 2010: ('000) ('000) Interest and Discount received 3,695 Payment to Employees 200 Interest paid on Deposits 2,032 Director's Fees and Allowances 30 Issued and Subscribed Capital 1,000 Rent and Taxes paid 100 Statutory Reserve under Sec. 17 800 Postage and Telegrams 50 Commission, Exchange & Brokerage 200 Depreciation on Bank's Property 30 Rent received Stationery etc. 50 Profit on Sale of Investments 200 Advertisement and Publicity 15 Audit Fees 5 The further information is given : (a) A customer to whom a sum of 10,00,000 has been advanced has become insolvent and it is expected only 50% can be recovered from his estate. Interest due at 18% on his debt has not been provided in the books. (b) There were also other debts for which a provision of 1,50,000 was found necessary by the auditors. (c) Rebate on bills discounted as on 1st April, 2009 16,000. Rebate on bills discounted as on 31st March, 2010 * 12,000. (d) Provide 76,50,000 for income tax. (e) The Directors desire to declare 10% dividend. Prepare the Profit and Loss Account in accordance with the Law. Make necessary assumptions