JAIIB · AFM

FINAL ACCOUNTS 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

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

A

The Banking Regulation Act, 1949 governs the preparation of final accounts by banking companies, along with the Companies Act, 2013 and guidelines issued by the Reserve Bank of India.

Q

Which authority must approve the final accounts of a banking company before publication?

A

Board of Directors must approve before publication.

Q

In which form must a banking company prepare its Balance Sheet as per the Banking Regulation Act, 1949?

A

A banking company must prepare its Balance Sheet in Form A as specified in the Third Schedule to the Banking Regulation Act, 1949.

Q

Under which Schedule of the Banking Regulation Act are the forms for bank final accounts prescribed?

A

Third Schedule of the Banking Regulation Act, 1949.

Q

In which form must a banking company prepare its Profit and Loss Account as per the Banking Regulation Act, 1949?

A

A banking company must prepare its Profit and Loss Account in Form B as specified in the Third Schedule to the Banking Regulation Act, 1949.

Q

What does Schedule 2 of a bank's Balance Sheet represent?

A

Schedule 2 represents Reserves and Surplus of the bank.

Q

What are the main heads under the liabilities side of a bank's Balance Sheet?

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

Schedule 3 represents Deposits held by the bank.

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