Preparation of final accounts
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Accounting and Financial Management for Bankers — JAIIB.
One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
What is the primary purpose of preparing final accounts in banking?
Final accounts summarise a bank's financial transactions over an accounting period to show its financial position, profitability, and performance to stakeholders including regulators like RBI.
What is the format prescribed for a bank's Balance Sheet under the Banking Regulation Act?
Third Schedule of the Banking Regulation Act, 1949 prescribes it.
Which two principal statements constitute the final accounts of a commercial bank in India?
The Balance Sheet and the Profit and Loss Account (Income Statement) constitute the final accounts of a commercial bank, as prescribed under the Banking Regulation Act, 1949.
What does Schedule 3 of a bank's Balance Sheet represent?
Schedule 3 represents Deposits held by the bank.
Under which schedule of the Banking Regulation Act are the formats for bank final accounts prescribed?
The formats for Balance Sheet and Profit and Loss Account of banking companies are prescribed under the Third Schedule to the Banking Regulation Act, 1949.
What is included under Schedule 4 of a bank's Balance Sheet?
Schedule 4 covers Borrowings of the bank.
What does Schedule 1 of a bank's Balance Sheet represent?
Schedule 1 of a bank's Balance Sheet represents Capital, showing the authorised, issued, subscribed, and paid-up share capital of the bank.
Which schedule in a bank's Balance Sheet represents Cash and Balances with RBI?
Schedule 6 represents Cash and Balances with RBI.
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