JAIIB · AFM

FINAL ACCCOUTNS OF BANKING COMPANIES

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Accounting and Financial Management for Bankers — JAIIB.

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Q

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

A

Banking companies are required to prepare their final accounts under the Banking Regulation Act, 1949, along with the Companies Act, 2013.

Q

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

A

Banking Regulation Act 1949 along with Companies Act provisions.

Q

What is the prescribed format for the Balance Sheet of a banking company in India?

A

The Balance Sheet of a banking company must be prepared in Form A as prescribed under the Third Schedule of the Banking Regulation Act, 1949.

Q

Which schedule of the Banking Regulation Act contains the prescribed format for bank balance sheets?

A

Third Schedule of the Banking Regulation Act 1949.

Q

What is the prescribed format for the Profit and Loss Account of a banking company?

A

The Profit and Loss Account of a banking company must be prepared in Form B as prescribed under the Third Schedule of the Banking Regulation Act, 1949.

Q

What is the minimum percentage of net profits that Indian commercial banks must transfer to Statutory Reserve each year?

A

At least 25% of net profit each year.

Q

What are the main heads under liabilities in the Balance Sheet of a banking company?

A

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

Q

What does Schedule 3 of a bank's Balance Sheet represent?

A

Borrowings from RBI, other banks, and financial institutions.

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