Page 51 - MA - May 2017

Cost per voucher Rs15/- No. of Instruments 1200
Servicing cost (16540 * 15) Rs2,48,250/- Servicing cost = 1200 * 56= Rs 67,200/-
(b) No. of vouchers at the 4 collection centres (daily) Notional income on Float Funds=
130 2400000 * 9 * 8/100 * 365 = Rs4734.25
Total number of vouchers for the year Exchange received = 2400000 * 15 p/100 * 100 =
300*130 = 39,000 Rs3600/-
Servicing cost (15*39000) Rs5,85,000/- Net Result (Loss) Rs58,865.75
(c) Drafts issued per year (4*52) 208
Servicing cost (208*32) Rs6,656/- VI. Bills for Collection
(d) Notional Income of float funds in case of drafts No. of Instruments 170
@9% (issued at 4 collection centres) Servicing Cost = 170 * 145 = Rs24,650/-
8500000* 52 * 9 * 7/100 * 365 Rs7,62,904.10 Notional Income on Float funds =
(e) Average outstandings at 4 centres (M1, M2, M3 and 600000 *9 * 9/100 * 365 = Rs1331.50
M5) Rs365,00,000/- Exchange Received = 600000 * 20 p/100 * 100 =
Interest Rate 15.5% Rs1200/-
Interest received Rs56,57,500/-/- Net Result (Loss) Rs22,118.50
(f) Cost of Funds of Rs365 lakhs @7.5% Rs27,37,500/-
(g) Notional Income on funds which are held at M4 VII. Cheques Purchased
Rs30lakhs @7.5% Rs2,25,000/- No. of Instruments 650
(h) Total Income (d + e + g) Rs 66,45,404.10 Servicing Cost= 650 * 27 = Rs17,750/-
(i) Total Cost (a + b + c + f) Rs 35,77,406/- Cost of Funds = 7215000 * 7.5 * 6/100 * 365 =
(j) Net Result (Profit)( h - i) Rs30,67,998.10 Rs8895.20
Exchanged Received = 7215000 * 45 p/100 * 100
II. Drafts Issued = Rs32,467.50
No. of drafts issued 4750 Net Result (Profit) Rs5822.30
Servicing cost 4750 * 32 = Rs1,52,000/-
Notional Income on Float Funds = 3563700 * 9 * Net Profit from the Account:
7/100 * 365 Rs6151.04 1. Net Income from Advances Account =
Exchange Received =3563700 * 5p/100 * 100 Rs30,67,998.10
= Rs1781.85 2. Net Loss from Demand draft issued account =
Net result (Loss) Rs1,44,067.11 Rs1,44,067.11
3. Net Loss from M Ts issued account = Rs1,935.16
III. M Ts Issued 4. Net Loss from T Ts issued account = Rs8,165.00
No. of M Ts issued 30 5. Net Loss from Cheques sent for collection account
Servicing Cost = 30 * 65 = Rs1950/- = Rs58,865.75
Notional Income on float funds = 6000 * 9 * 8/ 100 6. Net Loss from Bills sent for collection account
* 365 = Rs11.84 = Rs22,118.50
Exchange Received = 6000 * 5 p/100 *100 = 7. Net Income form Cheques purchased account
Rs3.00 = Rs5,822.30
Net result (Loss) Rs1935.16 8. Net Profit from MEWL = Rs28,38,668.88

IV. T Ts Issued Profitability of MEWL = [Total Income generated
No. of T Ts issued 100 from the Account – Total expenditure incurred on the
Servicing Cost= 100 * 84 = Rs8400/- Account]/[Net Loanable Funds
Notional Income Nil = [28,38,668.88]/[3,35,00,000]
Exchange Received = 470000 * 5 p/100 * 100 = = 0.0847
Rs235/- = or 8.47%
Net Result (Loss) Rs8165/-
Loss of Income on account of the request of MEWL
V . Collection of Cheques for extending at par facilities:

www.icmai.in May 2017 l The Management Accountant 51