Skip to content

CS Professional · Banking and Insurance - Laws and Practice · Analysis of Financial Statements of Banks

Kaveri Bank is preparing its balance sheet in Form A. It holds cash in hand of Rs 40 crore and balances with the RBI of Rs 460 crore. Balances with other banks and money at call and short notice are Rs 300 crore. Under the prescribed format, what is reported under Schedule 6 'Cash and balances with Reserve Bank of India'?

Rs 500 crore is reported, being cash in hand of Rs 40 crore plus RBI balances of Rs 460 crore. Balances with other banks and call money are shown separately in the next schedule, not in cash and balances with the RBI.

  1. ARs 500 croreCorrect
  2. BRs 800 crore
  3. CRs 460 crore
  4. DRs 300 crore

Explanation

Schedule 6 covers cash in hand (including foreign currency notes) and balances with the RBI: 40 + 460 = Rs 500 crore. Balances with other banks and money at call and short notice go to Schedule 7, so including them (Rs 800 crore) is wrong.

Did you get it right without looking?

One question tells you little. A timed set on Analysis of Financial Statements of Banks shows your real accuracy, how long you take and where you lose marks.

Practise Analysis of Financial Statements of BanksFree diagnostic mock

More Analysis of Financial Statements of Banks questions