Accounts of Banking Companies, Advanced Corporate Accounting B Com Notes | EduRev

Advanced Corporate Accounting

B Com : Accounts of Banking Companies, Advanced Corporate Accounting B Com Notes | EduRev

The document Accounts of Banking Companies, Advanced Corporate Accounting B Com Notes | EduRev is a part of the B Com Course Advanced Corporate Accounting.
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Final Accounts of Banking Companies

Requirements – Accounts & audit

  1. Third Schedule annexed to BRA
  2. Form A- Balance sheet
  3. Form B- Profit & Loss Account
  4. Audit
  5. Submission of accounts- RBI- within 3 months
  6. Publication of accounts- within 6 months
  7. Auditor-prior approval of RBI for appt/removal

Balance sheet-Form A

Capital & Liabilities Assets
1.Capital 6.Cash & Bank Bal. RBI
2. Reserves & surplus 7.Balances with Banks & Money at call and SN
3.Deposits 8.Investments
4.Borrowings 9Advances
5 Other Liabilities & Provisions 10.Fixed Assets
  11.Other Assets

Other Income

  1. Profit on exchange transactions
  2. Profit on sale of investments
  3. Profit on revaluation of investments
  4. Profit on sale of fixed assets
  5. Letting of locker (income from locker charges )
  6. Misc. income -Godown rent

Just go through these points

  1. Govt. securities shown at book value and diff. between MV and BV is given in the notes
  2. If some fixed assets are w/o on revaluation of assets/reduction of capital every B/S after wards should. show the revised figure for next 5 yrs. With the date & amt. revised
  3. Other fixed assets includes vehicles, furniture and fixtures. Lockers and safe deposit vaults are included in furniture
  4. 20% to reserve fund before declaring dividend
  5. Gold is treated as investment
  6. Silver is treated as other assets
  7. Income from performing assets is recognized on accrual basis while in r/o non-performing assets it is on cash basis
  8. In r/o NPA, if income is already recognized, then make provision

Asset Classification​ etc.

  1. Asset Classification
    1. Performing and
    2. non performing ( remain out of order)
  2. Income Recognition
    1. Performing-accrual basis
    2. Non performing-cash basis
  3. Asset Classification
    1. Std-0.40% (revised from 0.25%)
    2. Loss assets-100%
    3. Doubtful – Unsecured – 100%, Secured – upto 1year-25%, 1 to 3yrs-40%, more than 3 years – 100%
    4. Sub-Std.-Unsecured – 25%, Secured – 15%

SLR & NON SLR DEPOSITS

Held to maturity Available for sale Held for trading
Investment should not exceed 25% of total investment Freedom available Freedom available
-no marked to market. Profit on sale treated as cap. Reserve -Marked to market
-profit on sale of investment.taken to P&L a/c
Marked to market
To be sold within 90 days
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