Referring to the statement of the "Percentage Bank" given on page 90 the following profit and loss sheet of that bank may prove of interest:

Per cent of Total Liability to Public

Per cent of Total


The net profits for the year after providing for all bad and doubtful debts amount to.....................



Dividends Paid



Written off bank premises. . .



Transferred to rest account. .



Transferred to pension fund



Balance carried forward. . . .



The net profit is found after paying all the current expenses of the bank for the year, and providing for any loss from bad or doubtful debts. The shareholders do not by any means get the whole of the net profits, only a little over 50 per cent of the amount being paid in dividends, equal to 10 per cent on the capital or 5 1/4 per cent on the capital and reserve combined. Of the balance about 11 per cent is applied to writing off bank premises account, 12 per cent is transferred to reserve or rest account, a small amount to the pension fund of the bank, and 24 per cent is carried forward in the shape of undivided profits for contingency.