Introduction To safeguard their advances, the bank accepts different types of securities during the lending and creates charges upon them. When land/buildings and fixed assets that are permanently fastened to the earth are offered as a security, it is charged by a mortgage in favor of a bank. When movable goods are offered as a […]

INTRODUCTION In India, the Negotiable Instruments Act was passed during 1881 which came into force from March 01, 1882. Originally, it had 137 Sections. Sections 138 to 142 were added in 1988, and Sections 143 to 147 were added during December 2002. At present it has 147 sections and 17 Chapters. It extends to the […]

PRESENT VALUE (PV)  In finance, present value (PV), also known as present discounted value, is the value of an expected income stream determined as of the date of valuation. The present value is always less than or equal to the future value because money has interest-earning potential, a characteristic referred to as the time value […]

INTRODUCTION Letter of Credit is a guarantee letter issued by a bank in international trade in favor of the exporter that a buyer’s payment will be paid on time. If the buyer is unable to make payment on the purchase, the bank will be required to cover the full or remaining amount of the purchase. […]

INTRODUCTION Bill finance is one of the major activities of the Banks. Under this type of lending, the Bank takes the bill drawn by the borrower on his (borrower’s) customer and pays him immediately deducting some amount as a discount/commission. The Bank then presents the Bill to the borrower’s customer on the due date of […]

INTRODUCTION Accounting aims to ascertain the financial performance of a firm. To do so the transactions have to be identified as capital or revenue in nature. This will determine whether they are placed in the Profit and Loss Account or the Balance Sheet. Let us study about capital and revenue expenditure and receipts. EXPENDITURE Expenditure […]