MORNBFI Vol. 1 - Planters Development Bank

APP. Q-28-a08.12.311Accounting EntriesAllowance for Probable Losses – NPAssold Allowance For Probable Losses -Remaining Assets(For unbooked provisions)(As additional provisions)Cash Only20(30, 0)155FinancialInstrumentsOnly(0, 120)20Part Cash,PartFinancialInstruments 1(30, 100)Part Cash,PartFinancialInstruments 2(30, 90)Part Cash,PartFinancialInstruments(30, 70)Debit Credit Debit CreditDebitCredit Debit Credit Debit Credit155201552015520155To record the reclassification of existingspecific allowance for credit losses onNPAs sold as provisions againstremaining assets.2CashUnquoted Debt Securities Classified asLoans/INMESDeferred ChargesLoans/ROPAsAllowance for Credit Losses -Unquoted Debt SecuritiesClassified as Loans/INMES300901200012001200301000120103090012003070201200To record the sale of NPAs, receipt ofcash and/or financial instruments, anddeferred recognition of loss, if any.3Amortization – Deferred ChargesDeferred Chargesxxxxxx000000xxxxxxTo record annual write down ofdeferred charges based on schedule ofstaggered booking of losses.4Provision for Credit Losses –Unquoted Debt Securitues Classifiedas Loans/INMESAllowance for Credit Losses –Unquoted Debt SecuritiesClassified as Loans/INMES00xxxxxxxxxxxxxxxxxxxxxTo record annual build up of allowancefor credit losses on financial instrumentsbased on schedule of staggered bookingof allowance for credit losses.1Face amounts of financial instruments exceed the excess of the gross amount of the NPAs over the cashproceeds.2Face amounts of financial instruments do not exceed the excess of the gross amount of the NPAs over thecash proceeds.Q RegulationsAppendix Q-28-a - Page 6Manual of Regulations for Non-Bank Financial Institutions