Page 151 - DCOM205_ACCOUNTING_FOR_COMPANIES_II

Accounting for Companies – II

notes Solution.
1. Demand & time liability

Saving deposits 15,000
Term deposits 40,000
Demand deposits 80,000 1,20,000
1,35,000
2. Cash reserve to be maintained = 135000 × 10% = 13500 – 8000 = 5500

3. RBI – Current A/C ` 5,500
To RBI – Non/ Current 5,500
Or Cash in hand
statutory liquidity ratio:

l z Every Commercial Bank
l z Should maintain 25% of demand & time liabilities
l z In approved securities
l z On every alternate Friday starting from 21-4-97
approved securities means:
1. Cash in hand

2. Cash for Reserve Bank of India – Non Current A/c
3. Cash for other banks
4. Money at call and short notice
5. Unencumbered securities: unencumbered means free for disposal w/o instruction

6. Gold, etc.
Illustration 4
Calculate C.R.R. and S.L.R. for a scheduled bank :
particulars `
Deposits (Nets) 1,50,000

Debit Deposits 10,000
Gold 5,000
Cash with R.B.I. (Current Account) 6,000
Cash in Hand 20,000

Encumbered securities 20,000
Money at call & short notice 5,000
Balance with other banks 15,000

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