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 […]

MEANING OF DEPRECIATION Depreciation is the reduction in the value of assets due to wear and tear. It is a method of allocation of the cost of the asset over its useful life. Every asset is subject to wear and tear in the normal course of its use and also over time. The cost of […]

Bank is an essential service sector organization. Customers play the most significant part in the bank. The customer is the one who uses the banking products and services and judges the quality of those products and services. A banking relationship is a contract between the Bank & the Customer. TYPES OF BANK CUSTOMERS During the […]