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
Balance sheet-Form A
| Capital & Liabilities | Assets |
| 1.Capital | 6.Cash & Bank Bal. RBI |
| 2. Reserves & surplus | 7.Balances with Banks & Money at call and SN |
| 3.Deposits | 8.Investments |
| 4.Borrowings | 9Advances |
| 5 Other Liabilities & Provisions | 10.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 Income | Schedule.13 Schedule.14 |
| Expenditure Interest Expended Operating Expenses Provision for contingencies | Schedule.15 Schedule.16 |
| Profit /Loss | |
| Appropriations | |
| Significant Accounting Policies | Schedule.17 |
| Notes forming part of Accounts | Schedule.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 maturity | Available for sale | Held for trading |
| Investment should not exceed | Freedom available | Freedom 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/c | Marked to market To be sold within 90 days |