final a/c of banking company

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chapter - final account of banking company

question- compute the amount of provision for doubtful debts from the following details of advances of national bank ltd.

                                                                                                             (Rs. in lakhs)

Total Loan and Advances                                                                      50     

Fully secured advance without any default by the 

borrower                                                                                                    30

Advance overdue for 12 months                                                        10

Advances overdue for more than 30 months (secured

by mortgage of plant worth Rs. 3 lakhs)                                            5

Non-recoverable unsecured advances                                              3

Small advance not exceeding rs. 25000 to each 

borrower                                                                                                   2       

 

Replies (1)

30*.4%=.12

10*10%=1

5*20%=1

3*100%=3

2*100%=2

TOtal amount of Provision is 7.12 Lakhs


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