Silver should be shown under the heading in
Balance Sheet in
in Banking company final
accounts.
Answers
Answer:
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Explanation:
Silver should be shown under the heading Investment in the Balance sheet in the Banking company final accounts.
- The final accounts of Banking company are divided into 2 forms:-
Form-A Balance sheet.
Form-B Income statemen (Profit and loss a/c.
- And each forms are divided into schedules.
- Form-A Balance sheet has 12 schedules and Form -B Income statement has 4 schedules.
- Balance sheet schedules are as follows :-
Schedule - 1 = Capital.
Schedule - 2 = Reserves and surplus.
Schedule - 3 = Deposits.
Schedule - 4 = Borrowings.
Schedule - 5 = Other liabilities and provision.
Schedule - 6 = Cash with RBI.
Schedule - 7 = Bank.
Schedule - 8 = Investment.
Schedule - 9 = Advances.
Schedule - 10 = Fixed assets.
Schedule - 11 = Current assets.
Schedule - 12 = Contingent and liabilities.
- Income statement schedule are as follows :-
Schedule - 13 = Intrest earned.
Schedule - 14 = Other Income.
Schedule - 15 = Intrest expended.
Schedule - 16 = Operation expended.
Silver is considered as cash or cash equivalents because of its ability to trade in future and it's liquidity.
And it's an tangible asset in nature.
Hence it comes under the schedule - 8 Investment in the balance sheet.