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Unformatted text preview: they lend is their asset which they will get back sometime in the future. Tabular arrangement of the accounts of a banker is called a Balance Sheet . The loans issued by banks are also known as advances . Balance sheet Liabilit ies Assets 1) Share Capital 500 1) Reserve s with Central Bank and Cash in hand 1200 2) Reserve Fund 1000 2) Call Money 1500 3) Saving (Deman d) Deposit s 3500 3) Bills Discoun ted 4300 4) Fixed (Time) Deposit s 4000 4) Investm ents, Loans, Advanc es 2200 5) Borrowi ng from other banks 1000 5) Premise s, Propert y etc. 800 Total 10,000 Total 10,000 The Balance sheet of a banker always balances. This is because it is only a technical device of equating assets with liabilities ....
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This note was uploaded on 11/17/2011 for the course EC ec 201 taught by Professor - during the Fall '10 term at Montgomery.
- Fall '10