1. What percentage of provision is required on performing assets? (a) 10 (b) 40

Question

1. What percentage of provision is required on performing assets?
(a) 10
(b) 40
(c) 0.40
(d) 25.

2. The Balance Sheet of Alpha Banking Co. has doubtful advances amounting Rs. 300 lakhs ( classified as outstanding for more than three years on 31.03.2005). The provision will be made for Rs.
(a) 100.
(b) 300.
(c) 90.
(d) 120.

3. What will be the amount of provision to be shown in Profit and Loss Account of Dena Bank Ltd. in respect of doubtful asset aging 1 %u2013 3 years of Rs. 1,000?

(a) 200.
(b) 300.
(c) 500.
(d) 100.

4. When income is to be recognized on cash basis by Safe Trust Bank, a distinction should be made between
(a) Banking and Non-banking assets.
(b) Monetary and Non-banking assets.
(c) Current and Non-current assets.
(d) Performing and Non-performing assets.

5. For the year ended 31st March, 2006 non-performing assets classified as sub-standard in Centura Bank Ltd. will be classified as doubtful after
(a) 24 months.
(b) 18 months.
(c) 12 months.
(d) 180 days.

Explanation / Answer

1. What percentage of provision is required on performing assets?

(d) 25.

2. The Balance Sheet of Alpha Banking Co. has doubtful advances amounting Rs. 300 lakhs ( classified as outstanding for more than three years on 31.03.2005). The provision will be made for Rs.

(c) 90.

3. What will be the amount of provision to be shown in Profit and Loss Account of Dena Bank Ltd. in respect of doubtful asset aging 1 %u2013 3 years of Rs. 1,000?

(a) 200.

4. When income is to be recognized on cash basis by Safe Trust Bank, a distinction should be made between

(

(b) Monetary and Non-banking assets.

5. For the year ended 31st March, 2006 non-performing assets classified as sub-standard in Centura Bank Ltd. will be classified as doubtful after

(a) 24 months.

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