Balance sheet of banking and non-banking companies are different from each other. The main difference is in the classification of assets and liabilities. In this answer, we will discuss the differences between the balance sheet of banking and non-banking companies.

Balance Sheet of Banking Companies

The balance sheet of a banking company includes the following:

1. Cash and cash equivalents: This includes currency, coins, and balances held in banks.

2. Advances: This includes loans and advances given to customers.

3. Investments: This includes investments made by the bank in government securities, shares, and debentures.

4. Fixed assets: This includes land, buildings, and equipment used by the bank.

5. Other assets: This includes miscellaneous assets such as rent receivables, deferred tax assets, and goodwill.

6. Deposits: This includes the amount deposited by customers in the bank.

7. Borrowings: This includes the amount borrowed by the bank from other banks and financial institutions.

8. Other liabilities: This includes miscellaneous liabilities such as provisions for taxation, interest payable, and dividend payable.

9. Capital and reserves: This includes the share capital, reserves, and surplus of the bank.

Balance Sheet of Non-Banking Companies

The balance sheet of a non-banking company includes the following:

1. Fixed assets: This includes land, buildings, and equipment used by the company.

2. Investments: This includes investments made by the company in government securities, shares, and debentures.

3. Current assets: This includes assets that are expected to be converted into cash within a year, such as inventory, accounts receivable, and cash.

4. Other assets: This includes miscellaneous assets such as deferred tax assets, goodwill, and patents.

5. Shareholders' funds: This includes the share capital, reserves, and surplus of the company.

6. Borrowings: This includes the amount borrowed by the company from banks and financial institutions.

7. Other liabilities: This includes miscellaneous liabilities such as provisions for taxation, interest payable, and dividend payable.

Conclusion

In conclusion, the balance sheet of a banking company is different from that of a non-banking company as it includes specific items such as cash and cash equivalents, advances, and deposits. On the other hand, the balance sheet of a non-banking company includes current assets and inventory.