1

ACCOUNTS OF BANKING COMPANIES

Solution 1
Interest on Performing assets to be recognised on accrual basis, but interest on Non- Performing assets
should be recognised on cash basis.
Particulars ₹ (in Lakhs)
Interest on Cash Credits and Over Drafts (1800+70) 1,870
Interest on Term Loan (480+40) 520
Interest on Bills Purchases and Discounted (700+36) 736
Total Interest to be recognized 3,126

Solution 2
Computation of Provision
Assets Amount Provisioning Amount of provision
(₹ In lacs) Rate (%) (₹ In lacs)
Standard assets 5,000 0.40 20
Sub-standard assets 4,000 15 600
Doubtful Assets
: for 1 year 800 25 200
: for 3 years 600 40 240
: for > 3 years 200 100 200
Loss assets 1,000 100 1,000
2,260
Note- It has been assumed that sub-standard & doubtful assets are secured in nature

Solution 3
31.03.2021
Advance Category: Doubtful 2.5 years (1-3 years)
Secured Portion: 8,000*40% = 3,200
Unsecured Portion: 2,000*100% = 2,000
5,200
31.03.2022
Advance Category: Doubtful >3 years
Secured Portion: 8,000*100% = 8,000
Unsecured Portion: 2,000*100% = 2,000
10,000

Solution 4
Outstanding Balance 4,00,000
Less: Value of security (1,50,000)
Unsecured portion 2,50,000
ECGC (50% of ₹ 2,50,000) (1,25,000)
Net unsecured portion 1,25,000
Provision for unsecured portion = 1,25,000 x 100% = 1,25,000
Provision for secured portion (> 3 years) = 1,50,000 x 100% = 1,50,000
Total Provision = 1,25,000 + 1,50,000 = 2,75,000
Solution 5
Particulars Amount
Outstanding Balance 6,73,000
Less: Realisable value of security (1,50,000)

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 2
Unsecured portion 5,23,000
Less: ECGC cover
25% of 5,23,000 = 1,30,750 Limited to 1,00,000 (1,00,000)
Net unsecured portion 4,23,000
Provision required (Doubtful) upto 1 year
Secured (1,50,000 * 25%) 37,500
Unsecured (4,23,000 * 100%) 4,23,000
4,60,500

Solution 6
(i)
Particulars Amount
Outstanding Balance 60,00,000
Less: Realisable value of security (15,00,000)
Unsecured portion 45,00,000
Less: ECGC cover @ 40% (18,00,000)
Net unsecured portion 27,00,000
Provision required (Doubtful) > 3 years
Secured (100%) 15,00,000
Unsecured (100%) 27,00,000
42,00,000

(ii) Computation of Provision

Assets Amount Provisioning Amount of provision
(₹ In lacs) Rate (%) (₹ In lacs)
Standard assets 3,000 0.40 12
Sub-standard assets 2,200 15 330
Doubtful assets
: for 1 year 900 25 225
: for 2 years 600 40 240
: for 3 years 400 40 160
: for >3 years 300 100 300
Loss assets 600 100 600
1,867
Note- It has been assumed that sub-standard & doubtful assets are secured in nature

Solution 7
Assets Amount Provisioning Amount of provision
(₹ In lacs) Rate (%) (₹ In lacs)
Standard assets
Advances to CRE 1,500 1 15
Others 6,000 0.40 24
Sub-standard assets
Secured 4,000 15 600
Unsecured- Others 1,500 25 375
Unsecured infrastructure 500 20 100
Doubtful assets: Secured
: upto 1 year 1,200 25 300
: For more than 1 year up to 3 years 900 40 360
: more than 3 years 400 W.N.-1 275
Doubtful assets: unsecured (>3 years) 500 100 500
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 3
Loss assets 1,500 100 1,500
4,049

Working Note: Provision required where assets are ECGC covered

Particulars ₹ (in Lakhs)
Outstanding Balance 400
Less: Realisable value of security (150)
Unsecured portion 250
Less: ECGC cover @ 50% (125)
Net unsecured portion 125
Provision required (Doubtful) > 3 years
Secured (100%) 150
Unsecured (100%) 125
275

Solution 8
(i) Amount of discount to be credited to the P&L Account
Discount received 1,60,572
Add: Opening Rebate on B/D as on 1 April, 2020
st
78,566
Less: Rebate on B/D as on 31 March 2021 (71,723)
1,67,415
(ii) Journal Entries
Particulars L.F. Dr. Cr.
Rebate on bills discounted A/c Dr. 78,566
To Discount on bills A/c 78,566
Discount on bills A/c Dr. 1,67,415
To P & L A/c 1,67,415
Discount on bills A/c Dr. 71,723
To Rebate on bills discounted A/c 71,723

Calculation of Rebate on bills discounted

Amount Due date Days after Rate Rebate on bills
2021 31.03.21 discounted
2,90,000 June 01 62 10% 4,926*
8,75,000 June 08 69 10% 16,541
5,65,000 June 21 82 10% 12,693
8,12,000 July 1 92 10% 20,467
6,50,000 July 5 96 10% 17,096
71,723
*2,90,000 x 10% x 62/365 =4,926

Solution 9
(i) Calculation of Rebate on bills discounted
Amount Due date Days after Rate Rebate on bills
2021 31.03.21 discounted
10,95,000 June 15 76 14% 31,920*
30,00,000 June 25 86 12% 84,822
16,92,000 July 5 96 16% 71,203
24,36,000 July 15 106 16% 1,13,191
TOTAL 3,01,136
*10,25,000 x 14% x 76/365 =31,920
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 4
(ii) Journal Entries
Particulars L.F. Dr. Cr.
Rebate on bills discounted A/c Dr. 1,32,960
To Discount on bills A/c 1,32,960
1
(Being the transfer of Rebate on Bills Discounted
on 1.4.2020 to Discount on Bills Account)
Discount on bills A/c Dr. 3,01,136
To Rebate on bills discounted A/c 3,01,136
2 (Being the transfer of rebate on bills discounted
required on 31.3.2021 from discount on Bills
Account)
Discount on bills A/c Dr. 4,65,814
To P & L A/c 4,65,814
3
(Being the amount of discount on Bills
transferred to Profit and Loss Account)

Working Note: Amount of discount to be credited to the P&L Account

Discount received 6,33,990
Add: Opening Rebate on B/D as on 31 March, 2021 1,32,960
Less: Rebate on B/D as on 31 March, 2021 (3,01,136)
4,65,814

Solution 10
(i) Amount of discount to be credited to the P&L Account
Discount received 3,40,312
Add: Opening Rebate on B/D as on 1st April, 2020 1,36,518
Less: Rebate on B/D as on 31 March 2021 (1,40,318)
3,36,512
(ii) Journal Entries
Particulars L.F. Dr. Cr.
Rebate on bills discounted A/c Dr. 1,36,518
To Discount on bills A/c 1,36,518
Discount on bills A/c Dr. 3,36,512
To P & L A/c 3,36,512
Discount on bills A/c Dr. 1,40,318
To Rebate on bills discounted A/c 1,40,318
Calculation of Rebate on bills discounted
Amount Due date Days after Rate Rebate on bills
2021 31.03.21 discounted
5,60,000 June 01 62 10% 9,512*
17,44,000 June 08 69 10% 32,969
11,28,000 June 21 82 10% 25,341
16,24,000 July 1 92 10% 40,934
12,00,000 July 5 96 10% 31,562
1,40,318
*5,60,000 x 10% x 62/365 =9,512

Solution 11
Calculation of Rebate on bills discounted
Amount Due date Days after Rate Rebate on bills
2021 31.03.21 discounted

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 5
1,46,200 04.05.2021 34 15% 2,043
2,30,400 12.05.2021 42 15% 3,977
4,35,900 28.05.2021 58 15% 10,390
4,36,200 18.06.2021 79 16% 15,106
2,68,100 04.07.2021 95 16% 11,165
TOTAL 42,681
(i) Journal Entries
Particulars L.F. Dr. Cr.
Rebate on bills discounted A/c Dr. 26,592
To Discount on bills A/c 26,592
1
(Being the transfer of Rebate on Bills Discounted
on 1.4.2020 to Discount on Bills Account)
Discount on bills A/c Dr. 42,681
To Rebate on bills discounted A/c 42,681
2
(Being the transfer of rebate on bills discounted
required on 1.4.2021 from discount on Bills Acc)
Discount on bills A/c Dr. 1,10,770
To P & L A/c 1,10,770
3
(Being the amount of discount on Bills
transferred to Profit and Loss Account)
Working Note:
Amount of discount to be credited to the P&L Account
Discount received 1,26,859
Add: Opening Rebate on B/D as on 31 March, 2020 26,592
Less: Rebate on B/D as on 31 March, 2021 (42,681)
1,10,770

Solution 12
Journal Entries
Date Particulars L.F. Dr. (in crores) Cr. (in crores)
1/4/20 Rebate on bills discounted A/c Dr. 40
To Discount on bills A/c 40
1/4/20 Bills purchased & discounted A/c Dr. 5,000
to To Customer A/c 4,720
31/3/21 To Discount on bills A/c 280
31/3/21 Discount on bills A/c Dr. 14
To Rebate on bills discounted A/c 14
31/3/21 Discount on bills A/c Dr. 306
To P & L A/c 306

Working Note:
Opening Rebate on bills discounted (31/03/20) 40 crores
Discount during the year
146 280 crores
5,000 crores x 14% x
365
Closing Rebate on bills discounted (31/03/21)
73 14 crores
500 crores x 14% x
365

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 6
Solution 13
Bills for Collection (Assets) A/c
Particulars Amount Particulars Amount
To Balance b/d 7,00,000 By Bills for collection (Liability) A/c 47,00,000
To Bills for collection (Liability) A/c 64,50,000 By Bills for collection (Liability) A/c 5,50,000
By Balance c/d 19,00,000
71,50,000 71,50,000

Bills for Collection (Liability) A/c

Particulars Amount Particulars Amount
To Bills for collection (Assets) A/c 47,00,000 By Balance b/d 7,00,000
To Bills for collection (Assets) A/c 5,50,000 By Bills for collection (Assets) A/c 64,50,000
To Balance c/d 19,00,000
71,50,000 71,50,000

Solution 14
Top Bank Ltd.
Profit & Loss A/c for the year ended 31/3/21
Particulars Sch. No. Amount
I. Income
Interest Earned 13 59,23,180
Other Income 14 7,28,000
Total 66,51,180
II. Expenditure
Interest Expended 15 32,59,920
Operating Expenses 16 7,68,460
Provision and contingencies (WN-1) 20,70,000
Total 60,98,380
III. Profit /loss
Net profit during the year 5,52,800
Profit /loss carried forward -
Total 5,52,800
IV. Appropriation
Transfer to statutory reserve (25%) 1,38,200
Balance transfer to balance sheet 4,14,600
Total 5,52,800
Schedule 13: Interest Earned
Particulars Amount
Interest and discount received 59,29,180
Add: Opening rebate on bills discounted (31/3/20) 19,000
Less: Closing rebate on bills discounted (31/3/21) (25,000)
59,23,180

Schedule 14: Other Income

Particulars Amount
Commission, exchange & brokerage 3,04,000
Rent Received 1,04,000
Profit on sale of Investments 3,20,000
7,28,000

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 7
Schedule 15: Interest Expended
Particulars Amount
Interest paid on deposits 32,59,920
32,59,920

Schedule 16: Operating Expenses

Particulars Amount
Salaries and allowances 3,20,000
Directors fee and allowances 48,000
Rent and taxes paid 1,44,000
Postage and telegrams 96,460
Depreciation on bank properties 48,000
Statutory expenses 44,000
Preliminary expenses 40,000
Auditor’s fee 28,000
7,68,460
W.N.-1 Provision and contingencies:
Particulars Amount
Provision for bad debts (16,00,000 x 60%) 9,60,000
Provision for other debts 2,10,000
Provision for income tax 9,00,000
20,70,000
Solution 15
Popular Bank
Profit & Loss A/c for the year ended 31/3/21
Particulars Sch. No. ₹
I. Income
Interest Earned 13 28,72,500
Other Income 14 1,87,500
Total 30,60,000
II. Expenditure
Interest Expended 15 20,40,000
Operating Expenses 16 17,55,000
Provision and contingencies (WN-1) 5,10,000
Total 43,05,000
III. Profit and loss
Net profit for the year (12,45,000)
Profit /loss carried forward -
Total (12,45,000)
IV. Appropriations
Transfer to Statutory reserve -
Balance carried to balance sheet (12,45,000)
Total (12,45,000)
Schedule 13: Interest Earned
Particulars ₹
Interest on cash credit (13,65,000-6,15,000+3,00,000) 10,50,000
Interest on overdraft (5,62,500-3,37,500+75,000) 3,00,000
Interest on term loans (11,55,000-5,62,500+1,87,500) 7,80,000
Income on investments 6,30,000
Interest on Balance with RBI 1,12,500
28,72,500

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 8
Interest on NPA is recognized on cash basis.

Schedule 14: Other Income

Particulars ₹
Commission on remittances and transfer 56,250
Commission on letter of credit 88,500
Commission on Government business 61,500
Profit on sale of Land and Building 20,250
Loss on Exchange Transactions (39,000)
1,87,500

Schedule 15: Interest Expended

Particulars ₹
Interest paid on deposits 20,40,000
20,40,000

Schedule 16: Operating Expenses

Particulars ₹
Auditors’ fees and allowances 90,000
Directors’ fees and allowances 1,87,500
Advertisement 1,35,000
Salaries, allowances and bonus to employees 9,30,000
Payments to Provident Fund 2,10,000
Printing and stationary 1,05,000
Repairs and maintenance 37,500
Postage, telegram and telephones 60,000
17,55,000

Computation of Provision
Assets Amount Provisioning Amount of provision
Rate (%)
Standard assets 22,50,000 0.40 9,000
Sub-standard assets (assumed secured) 8,40,000 15 1,26,000
Doubtful assets (secured: For 1 year) 37,500 25 9,375
Doubtful assets (fully un-secured) 1,50,000 100 1,50,000
Loss assets 1,50,000 100 1,50,000
4,44,375

Total Investment = 20,62,500

Current investment = 20,62,500 x 75% = 15,46,875 M.V. of Current investment = 14,81,250
Provision in respect of investment = 15,46,875 – 14,81,250 = 65,625

Total = 4,44,375 + 65,625 = 5,10,000

Solution 16
Wealth Bank Limited
Profit & Loss A/c for the year ended 31/3/21
Particulars Sch. No. ₹ (In Lakhs)
I. Income
Interest Earned 13 766
Other Income 14 50
Total 816
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 9
II. Expenditure
Interest Expended 15 54
Operating Expenses 16 468
Provision and contingencies (WN-1) 158.96
Total 680.96
III. Profit and loss
Net profit for the year 135.04
Profit /loss carried forward -
Total 135.04
IV. Appropriations
Transfer to Statutory reserve (20% of Profits) 27.01
Balance carried to balance sheet 108.03
Total 135.04
Schedule 13: Interest Earned
Particulars ₹ (In Lakhs)
Interest on cash credit (364 – 164 + 80) 280
Interest on overdraft (150 – 150 + 50) 50
Interest on term loans (308 – 90 + 20) 238
Income on investments 168
Interest on Balance with RBI 30
766
Interest on NPA is recognized on cash basis.
Schedule 14: Other Income
Particulars ₹ (In Lakhs)
Commission on remittances and transfer 15
Commission on letter of credit 24
Commission on Government business 16
Profit on sale of Land and Building 5
Loss on Exchange Transactions (10)
50
Schedule 15: Interest Expended
Particulars ₹ (In Lakhs)
Interest on Fixed deposits 25
Interest on Recurring deposits 17
Interest on Savings Bank deposits 12
54
Schedule 16: Operating Expenses
Particulars ₹ (In Lakhs)
Auditors’ fees and allowances 24
Directors’ fees and allowances 50
Advertisement 36
Salaries, allowances and bonus to employees 248
Payments to Provident Fund 56
Printing and stationary 28
Repairs and maintenance 10
Postage, courier and telephones 16
468

Computation of Provision
Assets Amount Provisioning Amount of provision
(₹ In lacs) Rate (%) (₹ In lacs)

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 10
Standard assets 60 0.40 0.24
Sub-standard assets (fully secured) 22 15 3.30
Doubtful assets (secured)
: for upto 1 year 6 25 1.50
: for upto 3 years 3 40 1.20
: for >3 years 2 100 2
Doubtful assets (fully un-secured) 40 100 40
Loss assets 38 100 38
86.24
Provision for Tax: 35% (816-54-468-86.24) = 72.72
Total = 86.24 + 72.72 = 158.96
Notes:
Cost of investment is missing in the question. Therefore, it is assumed that cost of 75% of the
investments, other than the investments held for maturity, is same as its market value. Hence no
diminution in the value is provided for in the given solution.

Solution 17
(i) Computation of Provision
Assets Amount Provisioning Amount of provision
(₹ In lakhs) Rate (%) (₹ In lakhs)
Standard assets 4,100 0.40 16.40
Sub-standard assets (fully secured) 380 15 57
Doubtful assets
: Unsecured 155 100 155
: Secured
: for 1 year 10 25 2.50
: More than 1 year, but less than 2 years 18 40 7.20
: More than 2 year, but less than 3 years 35 40 14
: More than 3 years 22 100 22
Loss assets 50 100 50
324.10
Provision for taxation
Profits available = 1,840+15-1,136-105-324.10 =394.90
Provision for tax = 394.90 x 35% = 101.47

Total provision and contingencies = 324.10+101.47 = 425.57

(ii) Supreme Bank Ltd.

Profit & Loss A/c for the year ended 31/3/21
Particulars Sch. No. ₹
(In Lakhs)
I. Income
Interest Earned 13 1,840
Other Income 14 15
Total 1,855
II. Expenditure
Interest Expended 15 1,136
Operating Expenses 16 105
Provision and contingencies (WN-1) 425.57
Total 1,666.57
III. Profit and loss
Net profit for the year 188.43
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Profit /loss carried forward 65
Total 253.43
IV. Appropriations
Transfer to Statutory reserve (188.43*25%) 47.11
Balance carried to balance sheet 206.32
Total 253.43

Schedule 13: Interest Earned

Particulars ₹ (In Lakhs)
Interest & Discount (1,835 – 3) 1,832
Interest on Investments 8
1,840
Schedule 14: Other Income
Particulars ₹ (In Lakhs)
Commission , exchange and brokerage 12
Profit on sale of investments 1
Rent received 2
15
Schedule 16: Operating Expenses
Particulars ₹ (In Lakhs)
Printing & stationery 18
Repair & maintenance 2
Payment to and provision for employees 80
(salaries, bonus etc.)
Other Operating Expenses 5
105

Solution 18
New Bank Limited
Profit and Loss Account for the year ended 31st March, 2021
Schedule Year ended
31.03.2021
I. Income:
Interest earned 13 52,01,200
Other income 14 3,25,800
Total 55,27,000
II. Expenditure
Interest expended 15 22,95,920
Operating expenses 16 10,49,510
Provisions and contingencies 11,37,000
(6,50,000+2,37,000+2,50,000)
Total 44,82,430
III. Profits/Losses
Net profit for the year 10,44,570
Profit brought forward Nil
10,44,570
IV. Appropriations
Transfer to statutory reserve (25% of 10,44,570) 2,61,143
Dividend 1,60,000
Balance carried over to balance sheet 6,23,427
10,44,570

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 12
Note: Profit & Loss Account balance of 6,23,427 will appear under the head ‘Reserves and Surplus’ in
Schedule 2 of the Balance Sheet.

Schedule 13 – Interest Earned

I. Interest/discount on advances/bills (Refer W.N.) 48,16,200
Interest on cash credit* 2,65,000
Interest on overdraft * 1,20,000
52,01,200
Schedule 14 – Other Income
I. Commission, exchange and brokerage 1,45,000
II. Profit on sale of investment 1,15,800
III. Rent received 65,000
3,25,800
Schedule 15 – Interest Expended
I. Interests paid on deposits 22,95,920
22,95,920
Schedule 16 – Operating Expenses
I. Payment to and provisions for employees 8,40,510
(salaries & allowances)
II. Depreciation on assets 40,000
III. Director’s fee, allowances and expenses 45,000
IV. Auditor’s fee 5,000
V. Statutory (law) expenses 38,000
VI. Postage and telegrams 60,000
VII. Legal expenses 21,000
10,49,510
* Considered to be earned
Working Notes:
Interest and discount received 48,11,200
Add: Rebate on bills discounted on 31.3. 2020 20,000
Less: Rebate on bills discounted on 31.3. 2021 (15,000)
48,16,200

Classification of Assets Amount of % age of Amount of

Advances provision provision
Standard assets 10,00,000 0.40 4,000
Sub-standard assets 8,20,000 15 1,23,000
Doubtful assets:
For one year (secured) 40,000 25 10,000
Loss assets 1,00,000 100 1,00,000
Total provision required 2,37,000

Solution 19
Computation of Tier I and Tier II Capital Fund
S.No. Particulars Amount
(₹ in lakhs)
I Tier -1 Capital
Equity Share Capital 48,000
Statutory reserve 28,000
Capital Reserve (arising out of sale of assets i.e. (1210-280) 930
76,930
II Tier II Capital
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 13
Capital Reserve (arising out of revaluation of assets) 280
Less: Discount to the extent of 55% (154)
126
TOTAL (Tier-I + Tier-II) 77,056

Risk Adjusted Assets

Particulars (₹ in Lakhs) % of weight (₹ in Lakhs)
Funded Risk Assets
Cash balance with RBI 480 0 0
Balance with other banks 1250 20 250
Claims on Bank 2850 20 570
Other investments 78250 100 78250
Loans and advances:
Guaranteed by Government 12820 0 0
Guaranteed by public sector undertakings 70210 0 0
Others 520250 100 520250
Premises, furniture and fixture 18200 100 18200
Other Assets 20120 100 20120
Total (i) 637640
Off-Balance Sheet Items
Acceptances, endorsements and letters of credit 370250 100 370250
Total (ii) 370250
Total [(i) + (ii)] 1007890

Risk Weighted Assets Ratio / Capital Adequacy Ratio:

= . Capital Fund x 100
Risk Adjusted Assets
77056
=  100 = 7.645%
1007890
Solution 20
Computation of Tier I and Tier II Capital Fund
S.No. Particulars Amount
(₹ in crores)
I Tier -1 Capital
Equity Share Capital 600
Statutory reserve 470
Capital Reserve (arising out of sale of assets i.e. (130 - 25) 105
Profit and Loss Account (Dr. Balance) (30)
1,145
II Tier II Capital
Capital Reserve (arising out of revaluation of assets) 25
Less: Discount to the extent of 55% (13.75)
11.25
TOTAL (Tier-I + Tier-II) 1,156.25

Risk Adjusted Assets

Particulars (₹ in crores) % of weight (₹ in crores)
Funded Risk Assets
Cash balance with RBI 35.50 0 0
Balance with other banks 15 20 3
Claims on Bank 52.50 20 10.50
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 14
Other investments 70 100 70
Loans and advances:
Guaranteed by Government 22.50 0 -
Guaranteed by DICGC/ECGC 110 50 55
Others 9,365 100 9,365
Premises, furniture and fixture 92.50 100 92.50
Leased Assets 40 100 40
Total (i) 9,636
Off-Balance Sheet Items
Guarantee and other obligations 1,100 100 1,100
Acceptances, endorsements and letters of credit 6,200 100 6,200
Total (ii) 7,300
Total [(i) + (ii)] 16,936
Risk Weighted Assets Ratio / Capital Adequacy Ratio:
= . Capital Fund x 100
Risk Adjusted Assets
1156.25
=  100 = 6.83%
16936

Solution 21
Computation of Tier I and Tier II Capital Fund
S.No. Particulars Amount
(₹ in crores)
I Tier -1 Capital
Equity Share Capital 600
Statutory reserve 250
Capital Reserve (arising out of sale of assets i.e. (87 - 26) 61
911.00
II Tier II Capital
Capital Reserve (arising out of revaluation of assets) 26
Less: Discount to the extent of 55% (14.30)
11.70
TOTAL (Tier-I + Tier-II) 922.70

Risk Adjusted Assets

Particulars (₹ in crores) % of weight (₹ in crores)
Funded Risk Assets
Cash balance with RBI 20 0 0
Balance with other banks 28 20 5.60
Other investments 38 100 38
Loans and advances:
Guaranteed by Government 18.50 0 -
Others 6,625 100 6,625
Premises, furniture and fixture 108 100 108
Total (i) 6776.60
Off-Balance Sheet Items
Guarantee and other obligations 600 100 600
Acceptances, endorsements and letters of credit 4,200 100 4,200
Total (ii) 4,800
Total [(i) + (ii)] 11576.60

The copyright of these notes is with C.A. Nitin Goel

No part of these notes may be reproduced in any manner without his prior permission in writing
 15
Risk Weighted Assets Ratio / Capital Adequacy Ratio:
= . Capital Fund x 100
Risk Adjusted Assets
922.70
= × 100 = 7.97%
11576.60

Solution 22
Risk Adjusted Asset = 50,00,000*50% = 25,00,000

The copyright of these notes is with C.A. Nitin Goel

No part of these notes may be reproduced in any manner without his prior permission in writing