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JAIIB CAIIB STUDY MATERAILS

Requirements –Accounts & audit

  • Third Schedule annexed to
    • Form A- Balance sheet
    • Form B- Profit & Loss Account
    • Audit
    • Submission of accounts- RBI- within 3 months
    • Publication of accounts- within 6 months
    • Auditor-prior approval of RBI for appt/removal
    BRA

Balance sheet-Form A

Capital & LiabilitiesAssets
1.Capital6.Cash & Bank Bal. RBI
2. Reserves & surplus7.Balances with Banks & Money at call and SN
3.Deposits8.Investments
4.Borrowings9Advances
5 Other Liabilities & Provisions10.Fixed Assets
 11.Other Assets

Demand deposits

  • Credit balances in OD and CC
  • Deposits payable at call
  • Overdue deposits
  • In-operative current accounts
  • Matured time deposits
  • Matured cash certificates
  • Matured certificate of deposits

Contingent liabilities

Schedule-12

  • Claims against bank not acknowledged as debts
  • Liability for partly paid shares
  • Liability on account of outstanding forward exchange contracts
  • Acceptances ,endorsement & other obligations
  • Other items for which bank is contingently liable.

PROFIT & LOSS ACCOUNT-FORM B

Income Interest Earned Other IncomeSchedule.13 Schedule.14
Expenditure Interest Expended Operating Expenses Provision for contingenciesSchedule.15 Schedule.16
Profit /Loss 
Appropriations 
Significant Accounting PoliciesSchedule.17
Notes forming part of AccountsSchedule.18

Other Income

  • Profit on exchange transactions
  • Profit on sale of investments
  • Profit on revaluation of investments
  • Profit on sale of fixed assets
  • Letting of locker (income from locker charges )
  • Misc. income -Godown rent

Just go through these points

  • Govt. securities shown at book value and diff. between MV and BV is given in the notes
  • If some fixed assets are w/o on revaluation of assets/reduction of capital every B/S after wards should. show the revised figure for next 5 yrs. With the date & amt. revised
  • Other fixed assets includes vehicles, furniture and fixtures. Lockers and safe deposit vaults are included in furniture
  • 20% to reserve fund before declaring dividend
  • Gold is treated as investment
  • Silver is treated as other assets
  • Income from performing assets is recognized on accrual basis while in r/o non-performing assets it is on cash basis
  • In r/o NPA, if income is already recognized, then make provision

ASSET CLASSIFICATION ETC

  • Asset Classification
  • Income Recognition
  • Asset Classification

SLR & NON SLR DEPOSITS

  • Performing and
  • non performing ( remain out of order)
  • Performing-accrual basis
  • Non performing-cash basis
  • Std-0.40% (revised from 0.25%)
    • Sub-Std.-Unsecured – 25%, Secured – 15%
    • Doubtful – Unsecured – 100%, Secured – upto 1year-25%, 1 to 3yrs-40%, more than 3 years – 100%
    • Loss assets-100%
Held to maturityAvailable for saleHeld for trading
Investment should not exceedFreedom availableFreedom available
25% of total investment  
-no marked to market. Profit on sale treated as cap. Reserve-Marked to market -profit on sale of investment.taken to P&L a/cMarked to market To be sold within 90 days

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