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.