Accounting

PROBLEM NO 3: While closing its books of account on 31st March, 2018 a Non-Banking Finance Company has its advances classified as follows: Rs. in lakhs Standard assets 16,800 Sub-standard assets 1,340 Secured portions of doubtful debts: -upto one year 320 -one year to three years 90 -more than three years 30 Unsecured portions of doubtful debts 97 Loss assets 48 Calculate the amount of provision, which must be made against the Advances as per i) The Non-Banking Financial Company - Non-Systemically Important Non- Deposit taking Company (Reserve Bank) Directions, 2016; and