asset and liabilties of bank.pptx

accounting

1. Assets and Liabilities of Commercial Banks

2. It is for particular Period of Time. Liabilities represent sources of fund. Assets represent applications/ uses of fund.

3. Balance S heet of C ommercial Bank Liabilities 1. Paid-Up Capital XX 2. Reserves and Surplus XX 3. Deposits XX 4. Borrowings XX 5. Other Liabilities XX Assets 1. Cash Balances XX 2. Money at Call or Short Notice XX 3. Investment XX 4. Loans and Advances XX 5. Other Assets XX

4. LIABILITIES OF COMMERCIAL BANK 1.PAID-UP CAPITAL Contribution made by shareholder. It indicate liabilities to shareholder

5. Reserves and Surplus Accumulated profit of bank Its undistributed profits Maintain for unseen loss/event They belong to shareholder

6. Deposits It classified as Current Deposits Saving Bank Deposits Term Deposits

7. Borrowings Amount Refinance by: central Bank Commercial Bank Other Financial Institution

8. Other Liabilities It include: Bills Payable Traveller Cheque Pay slip Bankers Cheque

9. ASSETS OF COMMERCIAL BANK Cash Balances: Most Liquid Assets 100% liquidity and zero percent profitability Helps to Meet daily Demand

10. Investment Commercial Bank invest in: GOI securities Other approved Securities Non approved Securities Investment in SLR and Non SLR

11. Loan and Advances Cash Credit Overdraft Purchase of Discounting bill Loans

12. Other Assets It Include Fixed assets

13. Thank you