According to Negotiable Instruments Act 1881, Negotiable instrument means ‘an unconditional order or promise to pay certain sum of money only to a person or to the bearer of it’.
It includes Promissory Notes, Bills of Exchange, Cheques, Demand Drafts and Currency.
Balance sheet is a financial statement which is presented from time to time.
Balance sheet shows the financial position of a concern on a particular date.
A Balance Sheet consists of Assets at one side and Liabilities at another side.
Bill of Exchange is and instrument in writing containing an unconditional order signed by the maker, directing a certain person to pay a certain sum of money only to or to the order of a certain person or to the bearer of the instrument.
This bill can be discounted in the bank, and can have loan in that bank.
Cash Reserve Ratio is the minimum amount that a bank required to deposit with RBI, Rate this Ratio may be changed by RBI, from time to time. This ratio ranges between 3% to 15% of the Bank Deposits.
Statutory Liquidity Ratio is the minimum percentage of deposits that the bank has to maintain in form of Cash, Gold or Government Securities.
This is intended to regulate credit control in India, and to regulate Inflation.
When a person [here individual, Firm, Concern, Bank.etc] receives monitory benefit or a loan, from the concern at present and is liable to pay in future. Or a person who owes to the concern. [Is a current asset]
Is a current liability to the concern.
Cash credit is usually given on hypothecation or pledge of stock at high rate of interest.
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