L1- Bank's balance sheet

Q2: Classify each of the following accounts from the bank's point of view:
a. Zero interest loans to bank employees
b. Certificate of Deposit to customers
c. Customers current accounts
d. Treasury notes
e. Salaries and benefits to managers
f. Certificates of Suez Canal Purchased.
g. The bank's rented offices.
h. Commissions for external transfer
i. Deposit at the central bank
f. interest on loans to customers
g. due to commercial bank
j. interest from financial securities
j Foreign securities
k. cash in foreign currency
m. ATM machines
n. Computers and networks
o. Customers' money received to be transferred abroad.
l. commission and service fees earned

Question2:
The following balances appeared in the records of Treasure Bank at the end of the
financial year (in millions):

Legal reserve 24 Trading securities 80

Current accounts 265 Due from banks 219

 Due from other banks 188 Demand deposit 410

Savings deposits 210 Allowance for loans 80

losses
Other assets 119 Unearned discount on 23
borrowings
Loans to customers 640 General Reserve 46

Customers time deposit 114 Borrowings 124

Total Equity (without reserves) ? Fixed assets 680

Required: Prepare the statement of financial position

Q 3:
You are working in Emirates NBD in Egypt, you had the following balances at the
end of the quarter (in million Egyptian Pounds):
Borrowing from local banks 220 Bank's deposit in the central bank
400
Common stockholders' equity 205 Interests on customers' loans
420
Loans to customers 640 Other expenses
42
Bank deposits in foreign currency 300 Trading securities
212
Reserve funds 82 Time deposits
420
Allowance for loans losses 120 Interests on customers' deposits
324
Return on investments 118 Current accounts
432
Commissions and fees earned 244 Due from local banks
316
Costs of money transfer 94 Demand deposits
220
Income from propriety 65 Salaries and other employees'
benefits 218
Coupons collected for customers 264
REQUIRED: Prepare the income statement followed by the balance sheet for
Emirates NBD – Egypt in a proper order.
 Income stat.
==============
Revenues
Interests on customers' loans 420
Return on investments 118
Commissions and fees earned 244
Income from propriety 65
Total revenues
(-) Expenses
Income from propriety 65
Salaries and other employees' benefits 218
Other expenses 42
Costs of money transfer 94
Total expenses
= Net income

Q4– Choose the correct answer:

1-Loans given are considered the main …………………. To the bank.
a. Liability b. Back up of liquidity c- source of income
d- Source of funding

2-The following are the main sources of funds to the bank (liability):
a- Demand deposits b-Time deposits c- Savings deposits
d-Checking accounts with interests. E- all are main funding
sources.

3- If Bloom bank made a deposit at Barclays, it will be recorded as a/an …… to

Bloom and a/an…….to Barclay.
a-Liability, fund b- Liability, asset c- investment, liability d-
asset, liability

5- If the bank distributes the dividends to shareholders, this will:

a-expense b-income c- no effect on equity d- dividends are part of the
profit

Q5: You are working in Emirates NBD in Egypt, you had the following balances at the
end of the quarter (in million):
Total assets 86 Customers deposits 824
Borrowing from local banks 320 Cash deposit in the central bank 300
Common stockholders' equity 205 Interests on customers' loans 420
Loans to customers 640 Other expenses 42
Deposits in foreign currency 214 Trading securities 112
Reserve funds 82 Time deposits 420
Allowance for loans losses 120 Interests on deposits 324
Return on investments 118 Current accounts 432
Commissions and fees earned 244 Due from local banks 116
Costs of money transfer 94 Demand deposits 220
Returns from propriety investments 65 Salaries and other employees' benefits
218
Legal expenses and fines for cases and loan collection disputes 84

Required: Prepare the balance sheet for Emirates NBD – Egypt in a proper order.