LEARNING ACTIVITIES

Determination of Insured and Uninsured Deposit.

Directions: Using the information given, solve the following questions and encircle/highlight the
correct answer. Submit your solution/work in the pigeon boxes which are provided in your
department/college, or to google class on or before the date as reflected in your study schedule.
Note: Items without any solutions are INVALID

Problem Solving and Preparation of Balance Sheet

Activity 3 :
The following entries are from the balance sheet of South North Bank at the end of December
31,2020.
Demand deposit 2,950,700
Real estate loan 1,850,500
Deposit in BSP 2,500,700
Other liabilities 3,105,780
Due from other banks 2,700,500
Consumer loans 1,500,800
Non-interest-bearing deposit 2,850,750
Furniture & Fixture 750,500
Securities 975,500
Long-term bonds 1,500,750
Savings deposit 1,100,750
Commercial loans 2,015,500
Interest bearing deposit 2,150,850
Cash and other items 1,205,000
Due to other banks 1,700,650
Building & Equipment 4,500,750
Other assets 1,850,750

1. How much is the total assets? (5 Points)

Solution:
Real Estate Loan P 1,850,000
Deposits in BSP 2,500,700
Commercial Loans 2,500,700
Consumer Loans 1,500,800
Securities 975,500
Furniture & Fixture 750,500
Due from other banks 2,700,000
Cash and other items 1,205,000
Building & Equipment 4,500,750
Other assets 1,850,750
TOTAL ASSETS P 19,850,500

2. How much is the total liabilities? (5 Points)

Solution:
Demand deposit P 2,950,700
Non-interest-bearing deposit 2,850,750
Interest bearing deposit 2,150,850
Due to other banks 1,700,650
Long-term bonds 1,500,750
Savings deposit 1,100,750
Other Liabilities 3,105,780
Total Liabilities P 15,360,230

3. How much is the bank equity? (5 Points)

Solution:
EQUITY = ASSETS – LIABILITIES
= P 19,850,500 – P 15,360,230
= P 4,490,270

Bank, Capital P 4,490,270

Total Equity P 4,490,270

4. The bank’s equity is what percentage of its total assets? (5 Points)

Solution:
P 4,490,270
Bank Equity as a Percentage of Assets = ¿ = 22.62%
P 19,850,500

5. The bank’s liability is what percentage of its total assets? (3 Points)

Solution:
P 15,360,230
Bank Liability as a Percentage of assets= ¿ = 77.38 %
P 19,850,500
 6. Prepare the balance sheet of South North Bank (10 points)
SOUTH NORTH BANK
BALANCE SHEET
As of December 31, 2020
ASSETS
Real Estate Loan P 1,850,000
Deposits in BSP 2,500,700
Commercial Loans 2,500,700
Consumer Loans 1,500,800
Securities 975,500
Furniture & Fixture 750,500
Due from other banks 2,700,000
Cash and other items 1,205,000
Building & Equipment 4,500,750
Other assets 1,850,750
TOTAL ASSETS P 19,850,500

LIABILITIES
Demand deposit P 2,950,700
Non-interest-bearing deposit 2,850,750
Interest bearing deposit 2,150,850
Due to other banks 1,700,650
Long-term bonds 1,500,750
Savings deposit 1,100,750
Other Liabilities 3,105,780
Total Liabilities P 15,360,230

EQUITY
Bank, Capital P 4,490,270
Total Equity P 4,490,270

TOTAL LIABILITIES AND EQUITY P 19,850,500

Activity 4
The following entries are form the balance sheet of East West Bank at the end of December 31,2020.
Deposit 2,700,800
Accumulated Depreciation-F&F 220,020
Cash and cash items 3,700,500
Due to other banks 1,500,000
Short-term bonds 500,750
Other financial assets 2,100,000
Demand deposit 1,900,750
Due from BSP 1,500,000
Interbank loan receivable 900,500
Time deposit 1,700,500
Accumulated depreciation - 90,050
Building
Money market deposit account 1,230,550
Bank Premises, Furniture & Fixture 2,200,200
Loan and receivable-others 700,200
Real & other properties-acquired 3,075,000
Bank Equipment 900,500
Interest bearing deposits 800,950
Non-interest-bearing deposits 500,200
Due from other banks 2,750,550
Non-current asset held for sale 500,500
Other financial liabilities 780,500

7. What would be the total liabilities of East West Bank? (5 Points)

Solution:
Demand deposit P 1,900,000
Deposit 2,700,800
Non-interest-bearing deposit 500,000
Interest bearing deposit 800,000
Time deposit 1,700,500
Money market deposit account 1,230,550
Due to other banks 1,500,000
Other financial liabilities 780,500
Total Liabilities P 11,114,250

8. How much is the total asset of East West Bank? (5 Points)

Solution:
Due from BSP P 1,500,000
Cash and Cash items 3,700,500
Interbank loan receivable 900,500
Bank Premises, Furniture & Fixture 2,200,200
Accumulated depreciation – Building (90,050)
Accumulated depreciation -F&F (220,020)
 Loan and receivables-other 700,200
Real & other properties-acquired 3,075,000
Short-term bonds 500,750
Bank Equipment 900,000
Due from other bank 2,750,000
Other financial assets 2,100,000
Non-current assets held for sale 500,500
TOTAL ASSETS P 18,518,630

9. What is the total capital of East West Bank? (5 Points)

Solution:
EQUITY = ASSETS – LIABILITIES
= P 18,518,630 – P 11,114,250
= P 7,404,380

Bank, Capital P 7,404,380

Total Equity P 7,404,380

10. Using the given information, calculate the bank’s capital as a percentage of total
assets (5 Points)

Solution:
P 7,404,380
Bank Equity as a Percentage of Assets = ¿ = 30.98%
P 18,518,630

11. Using the given information calculate the bank’s liabilities as a percentage of total
assets. (5 Points)

Solution:
P 11,114,250
Bank Liabilities as a Percentage of Assets = ¿ = 60.02%
P 18,518,630
 12. Prepare the balance sheet of East West Bank. (10 points)
EAST WEST BANK
BALANCE SHEET
As of December 31,2020
ASSETS
Due from BSP P 1,500,000
Cash and Cash items 3,700,500
Interbank loan receivable 900,500
Bank Premises, Furniture & Fixture 2,200,200
Accumulated depreciation – Building (90,050)
Accumulated depreciation -F&F (220,020)
Loan and receivables-other 700,200
Real & other properties-acquired 3,075,000
Short-term bonds 500,750
Bank Equipment 900,000
Due from other bank 2,750,000
Other financial assets 2,100,000
Non-current assets held for sale 500,500
TOTAL ASSETS P 18,518,630

LIABILITIES
Demand deposit P 1,900,000
Deposit 2,700,800
Non-interest-bearing deposit 500,000
Interest bearing deposit 800,000
Time deposit 1,700,500
Money market deposit account 1,230,550
Due to other banks 1,500,000
Other financial liabilities 780,500
Total Liabilities P 11,114,250
EQUITY
Bank, Capital P 7,404,380
Total Equity P 7,404,380
TOTAL LIABILITIES AND EQUITY P 18,518,630