14 MARCH
THE NEW ZEALAND GAZETTE
455

WELLINGTON DISTRICT SAVINGS BANK

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH 1967

1966
£

Interest—
29,125 Paid and credited to depositors ..
7,891 Accrued on investment accounts

37,016

Administration expenses—
4,817 Advertising ..
657 Auditor’s fees and expenses
273 Amortised cost of leases
1,308 Depreciation..
4,525 Printing and stationery
6,615 Rent
21,809 Salaries
.. Trustees’ fees
5,667 Other administration expenses ..

£82,687

1967
£

58,982
14,713

73,695

5,257
761
118
2,874
5,854
12,157
38,030
..
13,106

£151,852

1966
£

Investment income—
56,797 Interest received, due, and accrued—
New Zealand Government stock
631 Local authorities stock
1,673 Mortgages..
581 Fixed deposits
195 Short term deposits

59,877

Commissions received and accrued—
2,375 Government stock ..
94 Local authorities stock
854 Sundry income

63,200 Total income ..

19,487 Net cost of operations for year transferred
to establishment account

£82,687

1967
£

97,387
1,743
20,399
1,770
289

121,588

1,509
200
3,727

127,024

24,828

£151,852

BALANCE SHEET AS AT 31 MARCH 1967

1966
£

Current liabilities—
1,735 Creditors ..
1,543 Owing to other trustee
savings banks
7,891 Provision for accrued in-
vestment account in-
terest

11,169 Total current liabili-
ties ..

Long term liabilities—
57,123 Bank overdraft (Note 7)
Total long term lia-
bilities ..

Depositors’ balances—
1,235,390 Savings bank ..
111,557 Thrift clubs ..

1,346,947 Ordinary depositors’
total ..
420,450 Investment accounts ..

1,767,397 Total depositors’ bal-
ances ..

Reserve fund (Note 2)—
551 Discounts receivable on
maturity of New Zea-
land Government stock

Total reserve fund ..

£1,836,240

1967
£

3,650
1,200
14,713

19,563

80,449

80,449
100,012

2,094,735
151,483

2,246,218
732,830

2,979,048

751

751

£3,079,811

1966
£

Current assets—
47,143 Cash resources (Note 1)
186 Debtors
5,628 Owing by other trustee
savings banks
652 Payments in advance
27,406 Accrued income

81,015 Total current assets

1967
£

125,598
425
8,346
669
35,030

170,068

1966
£

Investments (at cost unless
otherwise stated)—
1,509,237 New Zealand Govern-
ment stock (Note 2) ..
20,489 Local authorities stock ..
134,035 Mortgages (Note 3)
50,000 Fixed deposits

1,713,761 Total investments ..

5,869 Fixed assets (Note 4)—
Furniture and fittings,
safes, office machines..
5,165 Improvements to lease-
hold premises
765 Motor vehicles

11,799 Total fixed assets ..

1,927 Intangible assets (cost)—
Cost of leases (Note 5) ..
27,738 Establishment account
(Note 6) ..

29,665 Total intangible
assets ..

£1,836,240

1967
£

2,170,869
51,315
569,738
50,000

2,841,922

7,347
5,076
1,523

13,946

1,309
52,566

53,875

£3,079,811

The references in these accounts to the numbered notes, are to
the notes following, which form an integral part of, and are to be
read in conjunction with, these accounts.

FELIX WOOD, President.
J. W. BROWN, General Manager.

NOTES TO THE ACCOUNTS

NOTE 1: Cash Resources—In accordance with section 24 (3) of
the Trustee Savings Banks Act 1948, in order to meet depositors’
demands, the bank is required to keep immediately available in
cash resources, 5 percent of its depositors’ balances. For this
purpose, fixed deposits are included as part of cash resources.

NOTE 2: Government Stock—It is the bank’s policy to hold New
Zealand Government stock investments until maturity. In accor-
dance with this policy, discounts receivable or premiums paid
are amortised to reserve fund over the term of the investment on
a straight line basis as a capital, non-taxable item.

As at 31 March 1967, the values of the bank’s holdings of New
Zealand Government stock were:

1966
£

1,508,686 Cost price
1,519,600 Nominal value
1,472,254 Market value

1967
£

2,170,118
2,186,300
2,067,571

The balance sheet valuation is as follows:

1,508,686 Cost price
.. Amortisation to 31 March 1966 ..
.. Amortised discounts receivable for
the year ended 31 March 1967

1,509,237

Less amortised premiums paid
for the year ended 31 March
1967

£1,509,237

2,170,118
551
543

2,171,212

343

£2,170,869

NOTE 3: Mortgages—The bank advances up to two-thirds of its
valuation of a property by way of first mortgage finance on free-
hold or leasehold property. On freehold property, advances may
be for any term with a maximum of 25 years, but the term for
leasehold property is subject to special conditions.

Interest rates are:

1. Home finance, 6 percent (with a maximum advance of
   £5,000).
2. Clubs, societies, institutions and church groups, from
   6¼ percent.
3. Farms and commercial, from 6¾ percent.

NOTE 4: Fixed Assets and Depreciation—

Furniture
and
Fittings,
Safes,
Office
Machines
Improvements
to
Leasehold
Premises
Motor
Vehicles
Total

Cost as at 31 March 1966 ..
Depreciation to 31 March 1966 ..
Book value as at 31 March 1966 ..
Additions for year
Disposals for year
Depreciation for year ..
Balance as at 31 March 1967 ..

£
6,611
742
5,869
2,333
..
855
7,347

£
5,765
600
5,165
1,434
1,523
496
5,076

£
956
191
765
1,904
650
496
1,523

£
13,332
1,533
11,799
5,671
650
2,874
13,946

Depreciation has been charged at rates approved by the Inland
Revenue Department on some assets, while the remainder have
been depreciated on a straight line basis over the estimated useful
life of the assets.

NOTE 5: Cost of Leases—These charges are the cost of purchasing
leases for branch premises. Purchases are recorded at cost and
amortised to profit and loss account over the term of the various
leases on a straight line basis.