Archive | Banking Companies

Treatment of Minimum Capital and Reserves | Banking Companies

Section 11 lays down the following minimum limit of paid up capital and reserves:  (a) Banking Companies Incorporated Outside India:  If it has a place of business in Mumbai or Kolkata or both ............... Rs. 20 lakhs If it does not have a place of business in Mumbai or Kolkata ............... Rs. 15 lakhs Further, every year 20% of the [...]

By |2017-02-06T20:58:55+00:00February 6, 2017|Banking Companies|Comments Off on Treatment of Minimum Capital and Reserves | Banking Companies

Classification of Advances by Banks | India

The most important asset for banks is “loans and advances” comprising cash credits and overdrafts, bills discounted and purchased and term loans. The banks have to classify their advances as follows in order to arrive at the amount of the provision to be made against them, into the following groups:- 1. Standard Assets 2. Sub-Standard Assets 3. Doubtful Assets and [...]

By |2017-02-06T20:58:55+00:00February 6, 2017|Banking Companies|Comments Off on Classification of Advances by Banks | India

Accounts of Banking Companies | India | Accounting

Here is a compilation of top four accounting problems on accounts of banking companies with its relevant solutions.  Illustration 1: From the following information, prepare the Profit and Loss Account of South Indian Bank as on 31st March, 2004: Illustration 2: The following Trial Balance was extracted from the books of the United Bank of India as on March 31, [...]

By |2017-02-06T20:58:55+00:00February 6, 2017|Banking Companies|Comments Off on Accounts of Banking Companies | India | Accounting
Go to Top