Professional Documents
Culture Documents
Accounting & Finance For Bankers
Accounting & Finance For Bankers
BANKERS
Topics
Partnership accounts
Co#pan$ accounts
Accountin" in a Co#puteri&e'
en(iron#ent
Partnership Accounts
Intro'uction
)efinition
Partnership 'ee'
In the asence of partnership 'ee'*if
'ee' is silent
No interest on capital
No interest on 'ra,in"s
Fi1e'
Current account
Fluctuatin"
Necessit$
Sale of usiness
0etho's8
A(era"e profit
Super profit
capitali&ation of profit
0etho's of "oo',ill
A(era"e profit
9AP:
Super profit
9SP:
Capitali&ation of
profit
AP 1 0ultiplier SP 1 #ultiplier
SP ; AP less NP
NP;nor#al profit
9Capitalise'
(alue: less
Actual Capital
0ultiplier is
"i(en
0ultiplier is
"i(en
GOO)5I66 I0PORTANT ENTRIES
A)0ISSION
RETIRE0ENT*)EAT<
A)0ISSION
RETIRE0ENT
Acti(e
Sleepin"
Fuasi
no#inal
FINA6 ACCOUNTS OF BANKING
CO0PANIES
)efinition
Au'it
O(er'ue 'eposits
Asset Classification
Perfor#in" an'
Inco#e Reco"nition
Perfor#in"2accrual asis
Asset Classification
Su2St'DL>H #onths2>J/
)outfulE>H #onths2usl2>JJ/2secure'D@$rs2KJ/3E>&L@2@J/2
upto >$ear2AJ/
6oss assets2>JJ/
S6R & NON S6R )EPOSITS
<el' to #aturit$ A(ailale for
sale
<el' for tra'in"
In(est#ent shoul'
not e1cee' AK/ of
total in(est#ent
Free'o# a(ailale Free'o# a(ailale
2no #ar!e' to #ar!etD
Profit on sale treate' as
capD Reser(e
20ar!e' to #ar!et
2profit on sale of
in(est#entDta!en to
P&6 a*c
0ar!e' to #ar!et
To e sol' ,ithin
?J 'a$s
CO0PANM ACCOUNTS
Features of a Joint stock Company
Incorporate' association
Artificial person
Perpetual succession
Co##on seal
6i#ite' liailit$
Transferailit$ of shares
6ar"e #e#ership
T$pes of co#panies
On the asis of
incorporation
On the asis of
o,nership
On the asis of
liailit$
Chartere'
co#pan$
Pri(ate co#pan$ CoDli#ite' $
shares
Statutor$
co#pan$
Pulic co#pan$ CoD 6t'D $
"uarantee
Re"istere'
co#pan$
Go(ern#ent
co#pan$
CoD ,ith
unli#ite'
liailit$
Forei"n
co#pan$
<ol'in"
co#pan$
S<ARE CAPITA6
EFUITM
PREFERENCE
CU0U6ATICE
RE)EE0AB6E
PARTICIPATING
S<ARE CAPITA6
AUT<ORISE) CAPITA6
ISSUE) CAPITA6
SUBSCRIBE) CAPITA6
CA66E) CAPITA6
PAI) UP CAPITA6
ISSUE OF S<ARE AT PAR
2BANK
2 S<ARE APP6ICATION
)eite'
2
2
cre'ite'
-
S<ARE APP6ICATION
-S<ARE CAPITA6
)eite'
2
2
Cre'ite'
O(er suscription
2share application
2share capital
2an! 9refun':
2share allot#ent
)eite'
2
2
2
2
Cre'ite'
Cre'ite'
Cre'ite'
S<ARE A66OT0ENT*S<ARE CA66
Share allotment a/c
Share capital a*c
)eite'
2
2
Cre'ite'
Bank a/c
Share allot#ent a*c
)eite'
2
2
Cre'ite'
Share call a/c
Share capital a*c
)eite'
2
2
Cre'ite'
Bank a/c
Share call a*c
)eite'
2
2
Cre'ite'
Calls in arrears a/c
Share allot#ent a*c
Share call a*c
)eite'
2
2
2
Cre'ite'
Cre'ite'
Issue of shares at pre#iu#
Share application*
allot#ent a*c
Share capital A*c
Share pre#iu# A*c
)eite'
2
2
2
Cre'ite'
Cre'ite'
Issue of shares at 'iscount
Share allot#ent A*c
)iscount on issue of
shares A*c
Share capital A*c
)eite'
)eite'
2
2
2
Cre'ite'
Forfeiture of shares
Share capital A*c
Call in arrears A*c
Forfeite' shares A*c
)eite'
2
2
2
Cre'ite'
Cre'ite'
Re2issue of shares
Ban! A*c
Forfeite' shares A*c
Share capital A*c
Capital reser(e A*c
)eite'
)eite'
2
2
2
2
Cre'ite'
Cre'ite'
Issue of Bonus shares
CapD Re'D Reser(e A*c
Share pre#iu# A*c
Capital reser(e A*c
Gen Reser(e A*c
Profit & 6oss A*c
Bonus to sharehol'ers A*c
)eite'
)eite'
)eite'
)eite'
)eite'
2
2
2
2
2
2
cre'ite'
Bonus to sharehol'ers A*c
E%uit$ share capital A*c
)eite' 2
cre'ite'
Balance sheet e%uation
6IABI6ITIES ASSETS
Capital @JJDJJ Fi1e' assets GJJDJJ
Reser(es AJJDJJ Current
assets
@JJDJJ
Ter# 6oans @JJDJJ
Current
6iailities
@JJDJJ
Total >JJJDJJ Total >JJJDJJ
Balance Sheet E%uation
Assets ; 6iailities
Assets ; 6iailities 9N: Capital
6iailities ; Assets 92: Capital
Capital ; Assets 92: 6iailities
BA6ANCE S<EET EFUATION
Assets ; 6iailities
Assets ; Capital N 6iailities
Assets ;Net ,orth N 6iailities
Net ,orth ; Capital N Reser(es& Surplus
Net ,orth ; Assets 6ess 6iailities
>D The Assets of a usiness are RsDKJJJJJ an' its
capital is RsD>>KJJJD Its liailities on that 'ate
,oul' e222222
a: RsD.>KJJJ
: RsD@HKJJJ
c: RsDKJJJJJ
': RsD >>KJJJ
AD A ha' a capital of RsDGKJJJJD <e has also purchase'
"oo's of RsD>KJJJJ on cre'it fro# 0rD SahaD The
(alue of total assets of the entit$ is22222
a: RsDGKJJJJ
: RsD?JJJJJ
c: RsD.JJJJJ
': RsD>JKJJJJ
B*s E%uation
E1a#ples
9>: If the net ,orth of the usiness is RsD>>JJ3fi1e' assets are RsD .JJ3 current
assets RsDIJJ3 in(est#ents RsD@JJ3 current liailities RsD Nil3 ,hat is the
a#ount of clai# to outsi'ersO
RsD >@JJl
RsD KJJ
RsDAJJP
RsD Nil
9A: I'entif$ the ,ron" pair
)ata 8 fact
)ata2 fact