BP · ACCOUNTINGIN

FINAL ACCOUNTS OF BANKING COMPANIES

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for accounting in depth — Bank Promotions.

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Q

What is the primary legislation governing the preparation of final accounts of banking companies in India?

A

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.

Q

Under which Act are banking companies required to prepare their final accounts?

A

Banking Regulation Act, 1949 governs final accounts.

Q

Which schedule prescribes the format for the Balance Sheet of a banking company?

A

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.

Q

What is the frequency at which banks must publish their Balance Sheet?

A

Banks must publish Balance Sheet annually every financial year.

Q

What are the major heads under 'Capital and Liabilities' in a bank's Balance Sheet?

A

The major heads are: Capital, Reserves and Surplus, Deposits, Borrowings, Other Liabilities and Provisions.

Q

Which RBI circular mandates the disclosure of restructured accounts in bank financial statements?

A

RBI's Asset Quality Review and restructuring norms mandate such disclosures.

Q

What are the major heads under 'Assets' in a bank's Balance Sheet?

A

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.

Q

What is the minimum percentage of net profit that banks must transfer to Statutory Reserve?

A

Banks must transfer minimum 25% of net profit to Statutory Reserve.

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