afer} ie lapel BE. te Laks, vA | fe a ne fae frie vestoieat fen! de bet Che of such cbpesits_| | henge” "op ee ald ; according fi! "Te em al Baak (ep) Wi Ip ton Sh fad | Atited cepesit js ctype of clpesl? wn cik mall ached toy heel. hotel of cs Bae ema Za | eis PG CPA ee tents, seat ft Fea!) + 446 afited ip | ie te ( =a Adenitges of fied pels = = ard ie re io —enprie | OS, bee C elt +S Sei A cae dest seston : 4/266 Scanned with CamScannerWi 4A istiecl ete of ehuihzsfubel_ fake of refun Fitted — eine pa Masih Gencleh ~ale liste Le ble Yoru, He teusb cederd typo) de dept Alok’, Lut oe. he nirtintune depute Vile by. Canks 3. ay iguidalonss. an cus) “Hensal hye ited > T9MAATIONS = —: _ fensalan _Ligyehje- d tate Tht piu calte Wagh Ue? bank | ol le pctipziis nN) Pe a ga i aes a fe ha 7 tlery easy, dat Lean up fo 904 oF de. i epastt te erste BE He bank the lefpncdl of lan AE 1 Mechicing intiest esbesa a3 He idetst es. ue Pitad, 50 He its oat ma ia Line_clith ‘idlallon, (ete Aharyblton tate}. [2 Locikee-j2 Farle by Aeon psc Fach one po? available P| the castoner in Light! ene) cant cavetbl_7o_cash_ easily. | [s-Penalites on alithditisals penalties are chaay) 1 cushners| ~abho_alithd rey _fhei¢’ detesits Prematurely . asian Js 4. Fifeo! iderest lates te rate of teil tenons decane —fel_the. enti duration, even ie fhe pofes iia. _|| Scanned with CamScanner7 |.2- Nice deposi. | — |.4s_lied cysts on? Fle be of Lat bility [ed et OP he he Le Puatclad piob ated delete withdiad he dept, pero dle. banks. Ba hintto_conece the —dpele_amuial” ob Weel — Fe. desettled ote’ Me bed depesif. =f ——— $0, cusknerspiolere _pobice els as. mote faite ato! — _flefiple_ ancl_casiel 4: se pack quickly fe een I te Mle Z Of. Se is. His Han ikea.” RT wT |. Loaves! sales rete ton Freel. cepesit_but highel’ Han Sache | S#LL_financhal Penalty Inclichig los of deste jaletext. Iolo Bold sf epesit—Recais |. 2e_hanks_ oles. reejats. ahhh Steate fe hollecsing.». The nan “of Me. Alder, gas Rake. ab J ices 2 Pilied i |_of fhe _ olepesit. 7 ae * i iE shovlel be selec! Heat He. Lge, perioc! of deposit, — ee a Metn features. of. Notice. _clepeSifss: ee q | Miney mat be sitchen mnedialely : a3 cnofice shuld | 42 givente_ the benfe(Fibl_weok to 6 noiiths)- 7210 -|- |. 2-301 money ca be althetocin easly axel quletly Here Js) Clim) asd ais | | He hiohesT _raterest pate » Scanned with CamScanner Se eel \2 catmel’ deprsltee! tes Gath. —xx Feed. to bang. 2 cashone! Hensfer sa —~ Fated Lattice deposi Gree hope bat ce eek = on Mawes rere! He -—ab data eahied. eee - Pel pce deposit ~ Reyer” lca el accouril - customer : . Fikech /wetice depesit — soon check, 2g acto. customer ae eee aa eee Scanned with CamScanner| \ | to ake _ accetellig. «to the INET on #a05/6 » Thee ae tp wehbe of gta fe He iet3T seafed | Ks. polloye — Ah Recatl and cat just once in ball af maturity 4 ecotel art cui! at ete! of set FireaTs tecorling aT Matir’h Ty CAeMP +35) tin srs . the Wifes] = = cteposit amu X ites] 7 Ya petted CH ws Bho f Wp? cdeb t ihe it : ST WNC 5/1 | jae dast| e Example2: BaK page 64 On 31" May 2019, the balance of deposits at CIB bank Cairo Festival branch were as follows: —j}— LE Interest rate per year Fixed Deposits 120,000,000 1% Notice Deposits 76,000,000 14% (On this date, some customers elaimed ei deposits after its investing period already finished. The original amounts deserved to the customers were LE25,000,000 of fixed deposits and LE15,000,000 notice deposits. The average period for fixed deposits was five years, ——— and for notice deposits were three years and a half. Jf you learnt that CIB bank computes and records the deposits’ interest only atthe deposits” maturity date. Required: 36 Scanned with CamScannerTo calculate and ~ deposits and its interest were added to the customers’ checking ~~~ accounts while the remaining amounts paid in cash to the customers. | Feel clyabits 25 0m cxo_K_14% X 6 yowts «11250000 + Notice cepesits 15. el a _X_J4%_X 3-5 yeats= 4,36 900 Sg at adert hy dale rita. interes! = 28a i Aural eaty fo reterel ‘ake = — | «fe value of Fited ckpesit 25000 000 + {175000 =46Z5Q0) fle Value_of Notice depestt= [Scopes + 7350080 = 28 350,00) ssueuas = ” 7 OB 600, 680 607. to cheek. fe renating ja_aash t Scanned with CamScannereach a es aemeneia hee, and. | a fateh ale SS aaa Uere5T- ackied oh : titel lietile_cbepesit value 7 cet ere ir ‘ ee | nghidl Acciied evi itera : ai | - fed nore dyad LO Ses 4! Se vers : ote custorecr’_requesl’ fo_rened | Noles ek at gly che 7 he old ore - oro ania in Cabh er _adt! 79 ig ad (checkig. Lig ole, At Appar. | | He sedempties! eatyy— _j__ 38 Scanned with CamScannerBook page 74 ©@ Example 4: On 1* October 2018, QNB bank Porto Sokhna branch received a request from Deema Company to open a fixed deposit account lasts four months (12% interest rate and the interest to be computed monthly). The fixed deposit amounted LE800,000 as follows: LE200,000 cash depositing, LE300,000 deducting from the company’s checking credit account at the same branch, LE120,000 a cheque drew on a customer has a checking, debit account at Suez branch, and LE180,000 a cheque drew on a customer at SAIB bank Assiut branch. On the deposit’s maturity date, Deema company withdrew in cash LE150,000 and transferred LE400,000 to its checking credit account, and Tenewal the remaining amount as a new fixed deposit for six months (13% interest rate. Instru 1. - To joumalize the mentioned transactions 2 - To show the effect of these transactions on the income statement and the balance sheet of QNB bank as on 31 December 2018 (the fiscal year ends on 31 December each year) The solution x - Record the opening of fixed deposit account: the entry will be as follows: Cash 200,000 Customers’ credit checking accounts 300,000. ‘Customers’ debit checking accounts 120,000 ‘Local Banks (SAIB) 180,000 Fixed Deposits 800,000 @® lee 33 Scanned with CamScanner"30" November 2018: : Debit interest on fixed deposits Accrued Debit interest on fixed deposits —Fe record accrued interest of November 2018- 8,000] 8,000 "| 3" December 2018: Debit interest on fixed deposits Accrued Debit interest on fixed deposits ~Fe record acerued interest of December 2018 8,000 8,000 Income Summary Debit interest on fixed deposits ~ To-elose the debit interest in the income statement 16,000] 16,000 p 31" January 2019; ye Debit intereSt on fixed deposits ‘Accrued Debit interest on fixed deposits + |__ To record accrued interest of January 2019 8,000) 8,000 284 February 2019: Debit interest on fixed deposits Accrued Debit interest on fixed deposits ‘To record accrued interest of February 2019 8,000 On the maturity date: Fixed Deposits (Old) Accrued Debit interest on fixed deposits Cash Customers’ checking acc Fixed deposit «NeW» ——— 8,000 ~ Scanned with CamScannerbad A Linicetion of he ckpsits in ase of ubeit Need of money ter shall tine. cestomeys_ fenal p —bortee! clith collateral of Heir and are tia meted and! He jiereT Wake usually moe Yard ialeresl of obpasit nest 24, Wole ied aos MeeD>| cent asia a shy I a ao sot i Zeon equal. 2h of He value of PE for eee 2 ag. Dnt extecel_ de demsit” fenure . | Hele He hank ferel Lastomck we cain spteray ft er ce Tourhgl entries: ee cuSfene?” geF Loan gaint aepesi ot xxx represent oa of aepesit fi? 6 mols, lea) PE ta foes aD p3sh ect 3 éy pail ie ject edit Wee - | eal? interesh x Smo Scanned with CamScannerTe cashnel mode. rejeynen of Loan at miirty clate-h ash yore Cosh KKK ee | Leon_agantl Feel /uohce_ dept AKL BONIS WS to) ay NLU) + ROS) Ged er Anelter oiey of repyneil's, (a nautty af depot x-Lean) = caStente nbce_repe(ne of lean ab mately dake by deduchen of fhe fited /potite depesit and_reteive rencining NAS. ikea /Netlce_ clepesit Lean agaiat free /potte @sh 2) — wet 2 pede 2) KA. Yes « —ORchecking ALLOW dere He caone® hes po. peee! take He narloum Limit ef Lean andl altth no certain tine | for tenes ines} ceuttecl by dys ancl recor deel each month. + Jeurnal entries x - . |» Te customer allfpchoa)_an ancutt on demond fem lean Led [yeti del Accmed cxadit interés i _ cred ind xx_|I Ls nae mn Accrued cect tater \ 42 Scanned with CamScannerdr. check! PS BIA GYEIW4 She SEIN. ® On 1* September 2018, Ahmed submitted a request to CIB Bank in Tanta to get a loan against hif fixed deposit\yo be last on the same date of maturity of his fixed deposit. © Example 5: Ifyou learnt that: ‘The deposit amount was LE20,000 (15% interest), and Ahmed opened the fixed deposit account on 1* January 2016 that last three years. The bank usually grants 90% as loans against fixed deposit, but Ahmed requested only 40% in cash. © ~ The bank deducts 1% of the loan as fees The bank calculates the interest on deposits atthe end of the year but adding it on the maturity date of the deposit. =) ~ The bank encashed the residual amount to Ahmed after deducting the loan, (Z) instruction: Soin, To record these transactions in the bank’s journal. Solution: -80- | 43 Scanned with CamScannerAccrued citehit iateresT cellit interest 8000.X IF XAf2 — (es vei 2H devi Loans against firesl/ystice deposit pected cred? interest CB dal fe oiled debi} jilereT en clepasit accrued debit inteeat 20099 K 19% KZ Gelaldilss zariw iw) few pactued debit interest abel fixed /wotiee depesit Slow) vip) aaah AC eee Lean ogainsl Pec! depst cash Anil) Of Yd in 028) Aud expt. S23) yy Scanned with CamScanner