FINAL ACCOUNTS OF BANKING COMPANIES
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What is the primary legislation governing the preparation of final accounts of banking companies in India?
The Banking Regulation Act, 1949 governs the preparation of final accounts of banking companies in India, along with the Companies Act, 2013 and RBI guidelines.
Under which Act are banking companies required to prepare their final accounts?
Banking Regulation Act, 1949 governs final accounts.
Which schedule prescribes the format for the Balance Sheet of a banking company?
The Third Schedule to the Banking Regulation Act, 1949 prescribes the format for the Balance Sheet, while the Fourth Schedule prescribes the format for the Profit and Loss Account.
What is the frequency at which banks must publish their Balance Sheet?
Banks must publish Balance Sheet annually every financial year.
What are the major heads under 'Capital and Liabilities' in a bank's Balance Sheet?
The major heads are: Capital, Reserves and Surplus, Deposits, Borrowings, Other Liabilities and Provisions.
Which RBI circular mandates the disclosure of restructured accounts in bank financial statements?
RBI's Asset Quality Review and restructuring norms mandate such disclosures.
What are the major heads under 'Assets' in a bank's Balance Sheet?
The major heads under Assets are: Cash and Balances with RBI, Balances with Banks and Money at Call and Short Notice, Investments, Advances, Fixed Assets, and Other Assets.
What is the minimum percentage of net profit that banks must transfer to Statutory Reserve?
Banks must transfer minimum 25% of net profit to Statutory Reserve.
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