Problem -2 A Problem on Bank Financial Statements The following ledger balances of Progressive Bank Ltd. extracted on 31st December 2011. Prepare (a) the Profit & Loss Account for the year ending 31st December 2011 and (b) the Balance Sheet as on that date. Share Capital (Authorized and Subscribed: 3000 shares Tk. 100 each Tk. 50 paid up) Interest & Discount Received Share Premium A/C Balance with Bangladesh Bank Commission, Brokerage & Exchange Received Interest paid on deposits Money at call & short notice Savings Bank Deposit Rent, Rates & Insurance Current Deposits Fixed Deposits Reserve Fund Cash in hand Salaries & Allowances 1,37,500 Bills Discounted & Purchased 4,25,000 Bills Payable 3,50,000 Investment in Shares 12,00,000 4,60,000 Prize Bonds 1,32,500 50,000 Directors' Fees 20,000 Interest Suspense Account 62,500 10,00,000 Bank Premises 8,50,000 (Cost Tk. 10,00,000) 1,40,000 Outstanding Auditors' Fees 50,000 1,75,000 Stationery, Printing and 1,25,000 Advertisement 1,02,500 10,00,000 Loans, Cash Credit and Overdraft 32,61,500 17,500 22,50,000 30,50,000 50,000 41,000 Additional Information (a) Depreciation on premises is Tk. 25,000 (b) Provision for bad and doubtful debt is Tk. 1500 (C) Create a provision for taxation by Tk. 5000