The following ledger balances were extracted from books of Ravi Chandra Bank Ltd., as on

31.12.2010.

Rs.('000)

Interest on loans 600

Interest on fixed deposits 550

Commission 20

Brokerage 40

Rent, sundry charges 50

Printing 60

Interest on saving bank 174

Gross discount on bills 304

Interest on overdraft 540

Taxes, licenses 20

Audit fee 20

Salaries, allowances 20

Additional Information:

a) Interest of Rs.8, 000 on doubtful debts credited to interest on loan A/c.

b) Provide Rs.30, 000 for dividend and income tax at 55%.

c) A customer to whom Rs.2, 00,000 has been advanced has become insolvent and it is expected only 40% can be recovered from his estate. You are required to prepare profit and loss account.

2. A Life Insurance Company gets it valuation for every two years. The Life Insurance fund balance as on 31.3.2010 was Rs.41, 40,000. Before providing Rs.30, 000 for shareholders dividend for the year 2009-10. The net liability as on 31.3.2010 was Rs.40, 40,000. During the last two years interim dividend of Rs.60, 000 was paid.

how to make a statement sharing the amount now available as bonus to shareholders.