12 JULY
THE NEW ZEALAND GAZETTE
2137

EASTERN AND CENTRAL SAVINGS BANK
BALANCE SHEET AS AT 31 MARCH 1979

Assets

1979
$
1978
$

Current assets—
Cash resources ..
5,197,479
4,943,688
Interest accrued on
investments ..
469,989
511,261
Accounts receivable ..
141,241
133,219
Prepayments ..
36,571
45,193
Stationery stock on
hand (note 1d) ..
78,500
63,000

5,923,780
5,696,361

Investments (see note 1c)—
New Zealand Govern-
ment stock (nominal
value $27,241,721)
27,196,436
22,292,433
Local authority stock
($219,965)
219,965
239,299
Mortgages (note 2) ..
39,236,585
29,347,873
Personal loans ..
1,467,704
704,499
Less: Interest (un-
earned) ..
190,718
83,735

1,276,986
67,929,972
52,500,369

Fixed assets at cost less
depreciation (see
notes 1b, 3, and 4)—
Land and buildings ..
868,545
799,222
Leasehold improve-
ments ..
59,815
56,171
Furniture and fittings
..
58,314
61,462
Office machinery ..
232,116
216,032
Data capturing equip-
ment—landing char-
ges ..
19,050
24,211
Security equipment ..
23,934
29,638
Motor vehicles ..
27,359
29,407
Medal and coin collec-
tion ..
6,913
6,340

1,296,046
1,222,483

Prepayment—Data cap-
turing equipment ..
185,365
46,454

Total assets ..
$75,335,163
$59,465,667

Less:

Liabilities

Depositors’ Funds—
Savings accounts ..
46,105,494
40,018,131
Current accounts ..
2,609,127
1,666,589
Investment accounts ..
10,613,912
12,239,347
Term Deposit accounts
..
12,277,412
3,934,632
Housing bonds ..
1,557,400
963,900

73,163,345
58,842,599

Add:
Accrued interest on
investment accounts,
term deposits, and
housing bonds ..
819,673
584,929

73,983,018
59,427,528

Less: items in
transit ..
1,244,502
1,779,754

Total liability to
depositors ..
72,738,516
57,647,774

Current liabilities
Provision for donations
..
40,000
30,000
Accounts payable ..
208,804
95,399
Commissioner of
Inland Revenue ..
227,727
61,174

476,531
186,573

Term liabilities
Mortgages ..
244,000
262,000
Provision for deferred
taxation (see note 1c)
..
234,546
274,222
Home ownership—
supplementary loan
..
3,990
4,450

482,536
540,672

Total liabilities
73,697,583
58,375,019

Excess of assets
over liabilities
1,637,580
1,090,648

Represented by—
General reserve as at
1/4/78 ..
1,088,582
808,470
Net profit for year
(transferred to gen-
eral reserve) ..
401,927
280,112

1,490,509
1,088,582

Property revaluation re-
serve ..
143,647

Special reserve—
Personal loans ..
3,424
2,066

$1,637,580
$1,090,648

EASTERN AND CENTRAL SAVINGS BANK
REVENUE ACCOUNT FOR YEAR ENDED 31 MARCH 1979

Income

1979
$
1978
$

Interest—
New Zealand Govern-
ment stock ..
1,672,852
1,385,622
Local authority stock
..
21,382
15,224
Mortgages and
Personal loans ..
3,527,449
2,509,000
Term deposits ..
531,451
483,623

5,753,134
4,393,469

Commissions ..
62,676
23,384
Rents ..
19,338
26,012
Sundry income ..
113,097
102,460

Sales of Government
stock and local
authority stock—
profit (net) ..
36,580
14,151

Total income ..
5,984,825
4,559,476

Less: Expenses
Interest on depositors’
funds ..
2,024,370
1,497,666
Interest credited ..
Accrued interest on
investment accounts,
term deposits, and
housing bonds ..
819,673
584,929

2,844,043
2,082,535

Administration—
Administration
expenses ..
2,225,529
1,822,889
Depreciation ..
95,244
78,956

2,320,773
1,901,845

Amortization—
Government stock
and local authority
stock (net) ..
6,082
18,828
Realisation of assets—
loss (net) ..
866
2,707

Total expenses ..
5,171,764
4,005,915

Net profit: before taxation
..
813,061
553,561
Less: Provision for taxa-
tion (see note 1 (c)) ..
355,476
243,544

Tax paid profit
for year—transferred
to appropriation ac-
count ..
$457,585
$310,017

APPROPRIATION ACCOUNT FOR YEAR ENDED 31 MARCH 1979

1979
$
1978
$

Net profit for year, trans-
ferred from revenue
account ..
457,585
310,017
Unclaimed donations ..
80
95

457,665
310,112

Less: Provision for dona-
tions ..
40,000
30,000
Special reserve—personal
loans ..
1,514

Under provision for taxa-
tion ..
14,224
55,738

Balance—trans-
ferred general reserve
..
$401,927
$280,112

NOTES TO THE ACCOUNTS

1. Statement of accounting policies—The general accounting principles as
   recommended by the New Zealand Society of Accountants for the measurement
   and reporting on profit on a historical cost basis have been followed by the bank.
   The following particular accounting principles which materially affect the
   measurement of profit and of the financial position have been consistently applied.
   (a) Revenue—Interest has been accrued to 31 March 1979. Personal loan
   interest excludes unearned interest and has been apportioned by the Rule of 78.
   (b) Depreciation—Fixed assets have been depreciated using the straight line
   method based on the economic life of the assets. The principle write-off periods are:

Buildings .. 40–50 years
Furniture and fittings .. 7–10 years
Office equipment .. 7–10 years
Motor vehicles .. 3 years to estimated
residual value

(c) Taxation—(i) The charge for income tax in the revenue account is
calculated on the reported profit for the year at the present rate of taxation.
(ii) Deferred taxation arises from timing differences between accounting and
taxation recognition of income and expenditure. These differences relate to
depreciation and investment income.
(d) Stationery stock on hand—The stock on hand shown in the balance sheet
represents bulk stationery supplies valued at cost less a provision for wastage.
(e) Investments—Investments are shown in the balance sheet at cost except for
Government stock where it is the bank’s policy to show the value at cost less any
interest accrued contained in the purchase price and to amortise discounts,
premiums, and exchange rate variations over the term of the investment on a
straight line basis. In accordance with this policy the amortization debited to
revenue for this financial year amounts to $6,082.

2. Mortgages—Mortgages approved but not yet uplifted total $1,925,195.

3. Fixed assets—

Cost price .. $1,733,147
Depreciation to date .. 437,101
Book value .. 1,296,046

4. Capital Commitments—

Premises Development .. 74,000

D. H. MILLER, President.
E. ROBERTSON, General Manager.