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Questions and Answers
What was the total income for Hiral Bank for the year ended 31-3-2018?
Which of the following is included in the appropriations for Hiral Bank?
What was the profit brought forward for Hiral Bank for the year ended 31-3-2018?
What was the interest expended by Hiral Bank for the year ended 31-3-2018?
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Which item was not a part of the operating expenses for Hiral Bank?
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What was the net profit for Hiral Bank for the year ended 31-3-2018?
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Which category includes 'Interest on Balances with RBI' in Hiral Bank’s accounts?
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Which of the following is true regarding the interest and discount for Hiral Bank?
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Study Notes
Hiral Bank Profit & Loss Account
- The Profit and Loss account for Hiral Bank is presented for the fiscal years ending March 31, 2017 and March 31, 2018.
- The account details income and expenditure for each year, calculating the net profit or loss.
- The table shows that Hiral Bank had a net profit for the year ended 31-3-2018 of ₹25,86,000, up from ₹16,96,000 the previous year.
- Hiral Bank appropriates its profit by transferring 25% to Statutory Reserves and 5% to Revenue Reserve.
- Net profit for the year is added to the profit brought forward from the previous year to arrive at the total profit figure.
- Interest and Discount revenue includes tax provision, provision for doubtful debts, loss on sale of investments, and rebate on bills discounted.
- The provided information reveals that Hiral Bank experienced an increase in income in 2017-18 over the year prior, particularly from interest and discount revenue.
- The Bank also had a rise in operating expenses, such as rent, taxes, and lighting.
- The table highlights the importance of analyzing financial information over time, revealing trends in profitability and expenditure.
Revenue
- Hiral Bank's income includes:
- Interest and Discount
- Income from Investments
- Interest on Balances with RBI
- Commission, Exchange and Brokerage
- Profit on Sale of Investments
Expenditure
- Key expenses for Hiral Bank include:
- Interest to RBI
- Rent, Taxes, and Lighting
- Payment to and Provision for Employees
- Printing and Stationery
- Advertisement and Publicity
- Depreciation
- Director's Fees
- Auditor's Fees
- Law Charges
- Postage, Telegrams, and Telephones
- Insurance
- Repair and Maintenance
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Description
This quiz examines the Profit and Loss account for Hiral Bank for the fiscal years ending March 31, 2017, and March 31, 2018. It covers key metrics such as net profit, appropriation of profits, and insights into interest revenue and operating expenses.
