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Financial Statements of a Bank (Figures published in financial …
Financial Statements of a Bank
Users of banking accounting
External
Financial accounting
annual report
profitability
Internal
Managerial accounting
Financing, resource allocation and marketing decisions
Figures published in financial statements provide essential data on the
liquidity
safety
efficiency
solvency
Balance sheet
cash in hand and due from banks
money in vaults, balances with other banks, cheques in process of collection
investments
bonds, shares and interest-bearing securities purchased on the open market
fixed assets
loans
The largest asset of a bank
Bookkeeping
Record all the transactions (journals )
balance sheet income statement
Ledger
the double-entry method.
Accounting equation
Assets = Liabilities + Equity Capital
Fixed Assets
Current Assets