Model: Cash reserves and statutory reserves balance sheet From the following information, prepare a balance sheet with necessary schedules of the New India Bank Ltd. as on 31 March …. and ascertain cash reserves and statutory liquid reserves required:
(Rs.in Lakhs) |
||
Share Capital: 6,00,000 Shares of 100 Each |
— |
600 |
Statutory Reserves |
— |
690 |
Net Profit Before Appropriation |
— |
450 |
Profit and Loss Account |
— |
1,230 |
Fixed Deposit Account |
— |
1,560 |
Saving Deposit Account |
— |
1,350 |
Current Accounts |
90 |
1,560 |
Bills Payable |
— |
3 |
Cash Credit |
2,439 |
— |
Borrowing from Other Banks |
— |
330 |
Cash in Hand |
480 |
— |
Cash with RBI |
120 |
— |
Cash with Other Banks |
468 |
— |
Money at Call and Short Notice |
630 |
— |
Gold |
165 |
— |
Government Securities |
330 |
— |
Premises |
468 |
— |
Furniture |
210 |
— |
Term Loan |
2373 |
— |
7,773 |
7,773 |
Additional Information: |
|
Bills for Collection |
60,00,000 |
Acceptances and Endorsements |
45,00,000 |
Claims Against the Bank not Acknowledged as Debits |
1,80,000 |
Depreciation Charges: |
|
Premises |
3,00,000 |
Furniture |
2,40,000 |
50% of the Term Loans Are Secured by Govt. Guarantees 10% of the Cash Credit Is Unsecured Note: Cash reserves required 3% of the total demand and time liabilities and stationary liquidity ratios require 30% of the total demand and time liabilities. Statutory reserves: 20% of the net profit.