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FINAL ACCOUNTS OF GENERAL INSURANCE COMPANIES All the insurances other than the life insurance is covered under General Insurance. It includes fire insurance, marine insurance, cargo insurance, mobile insurance etc. The General insurance Corporation of India is the apex general insurance institution of India. The Final Accounts of General Insurance Companies include Revenue Account, Profit…
FINANCIAL STATEMENTS OF LIFE INSURANCE COMPANIES Financial Statements of Life Insurance Companies include preparation of Revenue account, profit and loss account and balance sheet. The formats of preparing these are provided by the Insurance Regulatory & Development Authority Regulations, 2002. The performa of these statements are as follows: REVENUE ACCOUNT FORM A- RA Name of…
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VALUATION BALANCE SHEET In accounting, a valuation account is usually a balance sheet account that is used in combination with another balance sheet account in order to report the carrying amount of an asset or liability. An example of a valuation account that is associated with an asset is the Allowance for Doubtful Accounts. In…
LIFE INSURANCE Life insurance is simply a contract between the policyholder and the insurance company. The policyholder pays a premium to the insurance company for a specific number of years (or for life), and in return the insurer promises to pay a sum assured to the nominee upon the death of the policyholder. For some…
ADVANCES IN BANKING COMPANY Banking company is a company that deals in cash, money and credit. It accepts deposits and extends loans and advances to the needy persons. ACCORDING TO BANKING REGULATION ACT, 1949 “Banking refers to the acceptance for the purpose of lending or investment of deposits of money from the public repayable of…
NON-PERFORMING ASSETS Non-performing assets are the assets that cease to generate any kind of income for the banking company. The assets are categorized as non-performing by applying some standard norms. Non-performing asset is a loan or advance where: Interest or installment of principal remain overdue for a period of more than 90 days in respect…
ASSET CLASSIFICATION OF BANKING COMPANY Assets are the property that banking company owns. Asset classification of banking company is done as follows: STANDARD ASSETS These assets do not carry more than normal risk which is attached to the business and does not constitute any problem. These are not non-performing assets. NON-PERFORMING ASSETS Non-performing assets are…
PROVISIONS OF BANKING REGULATION ACT 1949 The provisions of banking regulation act 1949 relating to accounts of banking companies are as follows: BANKING COMPANY Banking company is a company that deals in cash, money and credit. It accepts deposits and extends loans and advances to the needy persons. ACCORDING TO BANKING REGULATION ACT, 1949 “Banking…
MEANING Internal Reconstruction is also known as Capital Reduction. Section 66 of the companies Act governs the internal reconstruction. A company resorts to internal reconstruction or capital reduction only in exceptional circumstances. Internal reconstruction result in the reduction of the capital of the company. CONDITIONS/ PROVISIONS REGARDING INTERNAL RECONSTRUCTION AUTHORISATION BY ARTICLES OF ASSOCIATION The…
ALTERATION OF SHARE CAPITAL Alteration of Share Capital refers to the changes in the existing capital structure of the firm. A company can alter its share capital only if it is authorized by its Articles of Association. An article of association is the document framed at the time of incorporation of the company to govern…
