Check sibling questions

When we deposit amount in Bank

It is Assets for us (as it is our property)

But will be lability for bank (as bank has to pay us back)

 

When we take loan from bank

it is liability for us (as we have to pay it back)

But it is asset for the bank

Balance Sheet of a Company vs Balance Sheet of Bank - Teachoo.JPG

Different Assets and Liabilities of a Commercial Bank - Teachoo.JPG

MCQ Questions

Question 2

___ refers to those deposits in which amount is deposited with bank for a fixed period

of time.

a. Current Deposits

b. Time Deposits

c. Demand Deposits

d. Savings Deposits

View Answer

Question 3

Demand Deposits are:

a. Chequable Deposits

b. Non-chequable deposits

c. Term Deposits

d. None of these

View Answer

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Transcript

Balance Sheet of a Company vs Balance Sheet of Bank Suppose a company has Rs 10000 in ICICI Bank Current Account It also has FD of 20000 in ICICI Bank It also has taken a loan of 80000 from ICICI Bank Balance Sheet of a Company For a Business Loan taken is liability FD and Bank A/c are our Assets (Property) For the Bank Loan given is Asset Money of Public in Current A/c is Demand Deposit (Liability) Money of Public in FD A/c is Term Deposit (Liability) Balance Sheet of ICICI Bank Different Assets and Liabilities of a Commercial Bank Initial Money Invested Sometimes bank borrows money from RBI Saving Account, Current Account Fixed Deposits/ Recurring Deposits Cash kept in Bank for Withdrawal by customers Amount deposited by Bank with RBI Loan Given to Public Amt invested in Government Bonks Investment in Government Securities Deposits with Central Bank Demand Deposits

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CA Maninder Singh is a Chartered Accountant for the past 12 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.