Overview-of-Banking-Company-Accounts.pptx

This presentation provides a comprehensive overview of banking company accounts, covering key concepts, types of accounts, regulatory frameworks, and financial reporting standards. It explores the structure of banking financial statements, important accounting principles, and compliance requirements. Whether you're a finance professional, student, or banking enthusiast, this slide deck offers valuable insights into how banking companies manage their accounts and financial operations.s

1. B.Parkavi Assistant Professor Department of B.Com CMA Sri Ramakrishna College of Arts & Science (Autonomous) Coimbatore - 641006

2. Overview of Banking Company Accounts This presentation provides an overview of banking company accounts, emphasizing the importance of financial statements in the banking sector. We will explore key financial statements, including the Balance Sheet and Profit and Loss Account. The objective is to enhance understanding of banking company accounts and their regulatory framework.

3. Profit and Loss Account Schedules Schedule 13: Interest Earned Includes interest on advances, bills discounted, investments, and balances with RBI. Schedule 14: Other Income Includes commission, exchange and brokerage, and profit on the sale of investments. Schedule 15: Interest Expended Includes interest on deposits and borrowings. Schedule 16: Operating Expenses Includes salaries, rent, and other administrative costs.

4. Balance Sheet Schedules - Capital and Reserves Schedule 1: Capital Includes authorized, issued, subscribed, and paid-up capital. Schedule 2: Reserves & Surplus Includes statutory reserves, capital reserves, share premium, and revenue reserves.

5. Balance Sheet Schedules - Deposits Schedule 3: Deposits Includes demand deposits, savings bank deposits, and term deposits. Demand Deposits Funds readily available to depositors. Term Deposits Deposits held for a fixed term.

6. Balance Sheet Schedules - Borrowings and Other Liabilities Schedule 4: Borrowings Includes borrowings from RBI and other banks. Schedule 5: Other Liabilities & Provisions Includes provisions for doubtful debts and other contingent liabilities.

7. Balance Sheet Schedules - Assets 1 Schedule 6: Cash and Balances with RBI Details the cash reserves and balances held with the Reserve Bank of India. 2 Schedule 7: Balances with Banks Money at Call and Short Notice, detailing inter-bank balances. 3 Schedule 8: Investments Details the investment portfolio of the banking company. 4 Schedule 9: Advances Details the loans and advances made by the bank.

8. Balance Sheet Schedules - Fixed Assets and Other Assets 1 Schedule 10: Fixed Assets Details the bank's property, plant, and equipment. 2 Schedule 11: Other Assets Includes prepaid expenses and other miscellaneous assets.

9. Balance Sheet Schedules - Contingent Liabilities Schedule 12: Contingent Liabilities Includes guarantees, letters of credit, and other obligations. 1 Guarantees Financial assurances provided by the bank. 2 Letters of Credit Documents ensuring payment upon fulfillment of conditions. 3

10. Regulatory Framework and Accounting Policies 1 Accounting Standards Follows ASB guidelines. 2 RBI Guidelines Specifies formats for financial statements. 3 Banking Regulation Act, 1949 Governs banking operations and financial reporting.

11. Summary and Conclusion In summary, this presentation has provided a detailed overview of the schedules of the Profit and Loss Account and the Balance Sheet in banking company accounts. Accurate financial reporting is crucial in banking. Future directions should focus on improvements in financial management and regulatory compliance.