The following ledger balances were extracted from books of Ravichandra 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.