Final Account || Balance Sheet

Items to be recorded in the Capital and Liabilities side of Balance Sheet

1. Capital
2. Net profit or loss
3. Drawing
4. Bills payable
5. Bank Overdraft
6. Creditors
7. Loan
8. Reserve fund
9. Outstanding expenses

Items to be recorded in the Assets side of Balance Sheet

All assets are recorded here
1. Current assets:
   • Cash in hand
   • Cash at bank
   • Bills receivable
   • Debtors
   • Closing stock
2. Fixed Assets:
   • Tangible fixed assets: building, machinery, furniture, motor, etc.
   • Intangible fixed assets: good will, copy-right, patents, trade marks, etc

Example1: Prepare balance sheet of Sharma Guest House, Saptari on the last of Asar 2073 from the given transactions:

Parrticular	Amount	Particular	Amount
Capital	5,83,000	Net profit	1,98,000
Machinery	26,000	Cash Balance	22,000
Debtors	17,000	Bills payable	54,000
Reserve fund	65,000	Business premises	8,35,000

Solution:
Balance Sheet of Sharma Guest House As on 31st Ashar. 2073

Capital and Liabilities	Amount	Assets	Amount
Capital................ 5,83,000 Add: Net Profit.. 1,98,000	7,81,000	Machinery	26,000
Bills Payable	54,000	Cash Balance	22,000
Reserve Fund	65,000	Debtors	17,000
		Business Premises	8,35,000
	900,000		900,000

Example2: Prepare balance sheet of Mahakali Guest House Pvt. Ltd. As on Ashar 31 according to the following particulars

Particular	Amount	Particular	Amount
Capital	7,52,000	Debtors	25,000
Goodwill	13,000	Bank Overdraft	60,000
Net profit	1,38,000	Reserve fund	50,000
Furniture	4,00,000	Land and Building	5,62,000

Solution: 

Balance Sheet of Sharma Guest House As on 31st Ashar. 2073

Capital and Liabilities	Amount	Assets	Amount
Capital.......... ......7,52,000 Add: Net Profit... 1,38,000	8,90,000	Debtors	25,000
Bank Overdraft	60,000	Goodwill	13,000
Reserve Fund	50,000	Furniture	4,00,000
		Land and Building	5,62,000
	10,00,000		10,00,000

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Final Account || Profit and Loss Account

Profit and Loss Account:

Profit and Loss account is prepared to ascertaining the net profit earned or net loss suffered by a business during an accounting period.

Profit and loss account is a statement which summarizes all indirect revenue expenses in one side which is compared with gross profit/revenue income in another side and net trading income of an accounting period is assessed.” - By S.Mukharjee

Objectives of preparing P/L Account

• To know the net profit and net loss made by the business during the particular period.
• To provide information about indirect expenses i.e. office and administrative, selling and distribution, financial expenses and other expenses and losses.
• To provide information about different sources of indirect income and gain.
• To provide information about the profitability of a business.

Preparation of P/L Account 

All the indirect expenses and losses are recorded in debit side and all the indirect incomes and gains are recorded in Credit side of P/L Account.

Items Recorded in Debit	Items Recorded in Credit Side
Gross Loss (if any) Office and administrative expenses. Selling and distributing expenses. Financial expenses. Depreciation, repair, and maintenance expenses. Other expenses and losses	Indirect Income : (discount received, commission received, bad debt recovered, rent received,  interest received, dividend received, appreciation of fixed assets, other receipts. Gross profit (if any)

Example1: The following information’s are provided to you of Himal Co. Ltd as on 31 Dec. 2017.

Particular	Amount	Particular	Amount
Salaries	18,000	Insurance Premium	8,000
Sundry expenses	4,000	Discount Received	4,000
Provision of bad debts	12,000	Commission paid	4,400
Bad debt	4,600	Rent received	2,000
Discount allowed	3,200	Advertisement	9,000
Gross profit	68,400	Depreciation	520

Solution:

Profit and Loss Account of Himal Co. Ltd Fo the year ending 31st Dec. 2017
Particular	Amount	Particular	Amount
To Salaries	18,000	By Gross profit b/d	68,400
To Insurance premium	8,000	By Discount received	4,000
To Sundry expenses	4,000	By Rent received	2,000
To Provision for bad debts	12,000
To Commission paid	4,400
To Bad debts	4,600
To Discount allowed	3,200
To Advertisement	9,000
To Depreciation	520
To Net Profit c/d	10,680
	74,400		74,400

Example1: Prepare Profit and Loss account of Hetauda Company Pvt. Ltd. For the fiscal year end of Ashadh 2067/068 according to the following transaction.

Particular	Amount	Particular	Amount
Gross profit	1,85,000	Salary	81,000
Profit in investment	11,000	Tax	7,000
Commission received	4,000	Interest paid	20,000
Advertisement	4,000	Interest paid	20,000

Solution:

Profit and Loss Account of Hetauda Company Pvt. Ltd. Fo the fiscal year end of 31st Ashadh. 2068
Particular	Amount	Particular	Amount
To Salary	81,000	By Gross profit b/d	1,85,000
To Tax	7,000	By profit in investment	11,000
To Interest paid	20,000	By Commission received	4,000
To Advertisement	15,000
To Audit Fees	10,00
To Net Profit	67,0000
	2,00,000		2,00,000

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Final Account || Trading Account 

What is Final Account?
Final Account are the financial statements which are prepared to calculate the amount of profit earn or loss occurred during a particular time period and to give a picture of the financial position of business of that period. Those accounts and statements which are prepared at the end of a particular fiscal year with a view to determine profit and loss as well as the financial position of the organization.

Components of Final Accounts

The components of final accounts are:

1. Trading A/c,
2. Profit and Loss A/c and
3. Balance Sheet.

Objectives and Importance of final account:

• To ascertain the result of business operations in gross profit and gross loss, net profit and loss of the business during the year.
• To present the true financial position of the business on a particular date.
• To help in making different managerial decisions.

Trading Account

The trading account is the first step of final account prepared at the end of financial year to ascertain gross profit or gross loss.

Objectives of preparing Trading Account

• To know the gross profit and gross loss made by the business during the particular period.
• To provide information about opening and closing stock for making purchasing plans and policies.
• To provide information about the direct expenses and factory expenses to make comparison.

Importance of Trading Account:

1. It helps to provide information regarding closing stock, sales and cost of goods sold.
2. It shows the relationship between gross profit and sales which helps to measure profitability position of the business.
3. It helps to provide information to prepare future plans and policies.
4. It helps to determine the price of goods and services.

Preparation of Trading Account It is a nominal account having debit and credit side in which all the direct expenses and manufacturing expenses are shown in debit side and all direct incomes i.e. sales and closing stock are shown in credit side of the Trading account.
 

Items Recorded in Debit

Items Recorded in Credit Side

Opening Stock Purchase and Purchase Return Direct Expenses: Direct expenses refers to the expenses which are incurred from the stage of purchase till the stock of making goods in sale able condition. Eg: Freight inward, carriages on purchase, import duty, Octrai duty, Transportation cost, cleaning charge, wages, fuel and motive power expenses, primary packing expenses, factory expenses, consumable stock, royalty, commission on purchase, etc.

Sales and Sales Return Closing stock (Note if closing stock appears outside of the trial balance i.e. adjustment then it is recorded in credit side of Trading A/C as well as assets side of Balance Sheet.)

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Example1: From the following information prepare Trading Account for the year ending on 31st Chaitra 2069.

Particular	Amount	Particular	Amount
Opening Stock	75,000	Sales	6,30,000
Return outwards	5,000	Wages	2,000
Carriage inwards	1,000	Purchases	5,25,000
Return Inwards	10,000	Closing stock	42,000

Solution:

Trading Account of ABC Fo the year ending 31st Chaitra 2069 Dr. Cr.
Particular	Amount	Particular	Amount
To Opening Stock	75,000	By Sales ................. 6,30,000 Less: Return Inwards: 10,000	6,20,000
To Purchase ............ 5,25,000 Less: Return outwards: 5,000	5,20,000	By Closing stock	42,000
To wages	2,000
To Carriage inwards	1,000
To gross profit	64,000
	6,62,000		6,62,000

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Trial Balance

A trial balance is a statement of debit and credit balance of the ledger accounts which is prepared in order to prove the arithmetical accuracy of the books of account. It is prepared after the preparation Journal Entry and posting them into ledger account. It is also called the summary of assets, capitals, liabilities, expenses, income, etc. drawn from the ledger account.

Objectives of preparing a trial balance.

1. To check arithmetical accuracy of ledger postings.
2. To check whether the transactions are posted according to the dual aspect or not.
3. To find out the errors.
4. To prepare the final account.

Advantages of trial balance.

1. It helps to prepare final accounts.
2. If any error is found, it can easily be rectified.
3. It helps in the internal audit by supplying complete, reliable and accurate accounting information.
4. It proves the authenticity of the balance sheet prepared by the business on the given date.
5. It proves the arithmetical accuracy of accounting entries in the ledger.

Format of Trial Balance

Rules :

Debit Side	Credit Side
Assets Losses Expenses Drawing	Capital Liabilities Gain Income and Revenues

Example1. Prepare a trial balance of Gauri Shankar Store, Charikot for the fiscal year 2068/2069 from the following particulars.

Particular	Amount	Particular	Amount
Opening Stock	5,70,000	Sales	6,80,000
Purchases	3,30,000	Purchase return	1,80,000
Commission received	11,000	Creditor	1,59,000
Depreciation	20,000	Wages	1,10,000

Solution:

Trial Balance of Gauri Shankar Store, Charikot.As on 31st Ashad 2069
S.No	Particular	L/F	Dr. Amount (Rs)	Cr. Amount (Rs)
1	Opening Stock		5,70,000
2	Sales			6,80,000
3	Purchase		3,30,000
4	Purchase Return			1,80,000
5	Commission Received			11,000
6	Creditor			1,59,000
7	Depreciation		20,000
8	Wages		1,10,000
	Total		10,30,000	10,30,000

Example2. Prepare a trial balance of Shyam and Company for the fiscal year 2067/2068 from the following particulars.

Particular	Amount	Particular	Amount
Capital	2,40,000	Salary	40,000
Purchases	2,45,000	Interest Received	15,000
Sales	1,50,000	Maintenance expenses	60,000
Furniture	50,000	Bad Debts	10,000

Solution:

Trial Balance of Shyam and Company, As on 31st Ashad 2068
S.No	Particular	L/F	Dr. Amount (Rs)	Cr. Amount (Rs)
1	Capital			2,40,000
2	Salary		40,000
3	Purchase		2,45,000
4	Interest Received			15,000
5	Sales			1,50,000
6	Maintenance expenses		60,000
7	Furniture		50,000
8	Bad Debts		10,000
	Total		4,05,000	4,05,000

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cheque || financial institution

Cheque || Types of cheque:

Q1) What is cheque?
Ans: A cheque is a written instruction or an order given by the account holder to the bank to pay a certain sum of money to a person or an institution named therein or to the bearer of the cheque. Cheque is the printed form supplied to the depositors by the bank for withdrawing cash.

Q2) What are the different parties involved in cheque?
Ans: The different parties involved in cheque are;
 a) Drawer (the account holder who writes the cheque)
A firm or an organization or a person having deposits in bank and who issues a cheque, is a drawer. Actually, the drawer is the depositor, who orders the bank to pay specified sum of money to the person or organization specified in the cheque.
b) Drawee (the bank on which the cheque is drawn)
Bank is a drawee because it receives the order from the customers/depositors fro making the payment of a sum of money on demand. So, the bank on which the cheque is drawn is known as drawee.
c) Payee (the party who gets the amount)
The payee is the party to whom cheque amount is paid by the bank. Generally, the name of the payee is written on the cheque and he can draw specified amount from the bank. If the name of the drawer or word "self" is written on the cheque, in such case the drawer himself becomes the payee.

Q3) Some rules of the cheque are as follows;
a) The date written on the cheque must be correct and clear. It must not exceed the expiration time specified by the bank or be post dated.
b) The name, surname and address of the payee must be written clearly.
c) The amount in words and figures must be same.
d) The account number must be correctly and clearly written on the cheque.
e) The signature of the account holder on the cheque must match up with the specimen signature.
f) The amount holder must have sufficient balance in the account.
g) Any changes made while writing the cheque must be signed by the account holder.
h) Cheque must be written in the language/s used in the bank.

Note: If the above mentioned rules or conditions are not met the bank will refuse to make payment. This is called dishonor of cheque.

Q4) What are the different types of cheque?
Ans: The following are the different types of cheque;
a) Bearer cheque:

A bearer cheque is that cheque the payment of which can be made to anybody presenting it to the bank for payment. The bank cannot be responsible if it makes payment to a wrong person. Any person finding the bearer cheque can withdraw the amount from the bank. Therefore, it is not safe type of cheque. It does not require endorsement.

b) Order cheque:
 A cheque the payment of which is made only to the specified person in the cheque. The signature of person or party whose name is written in the cheque is essential for enchashment of this type cheque. He/she must put his/her signature on the back of the cheuqe. Having the signature of the person or party whose name is written in the cheque is called endorsement.

c) Cross cheque:

A cross cheque is a cheque which is prepared by following certain criteria of crossing. Simply, A cheque in which two parallel lines are drawn across it faces is called crossed cheque. Crossing on cheque is made to top left corner with or without the words like & co, Not Negotiable etc. The payment of such cheque is not made directly to the payee. It will deposited into the account of payee and payee, in turn, issues his own cheque to draw money from the bank. In fact, cross cheque is very safe and useful means of paying as well as remitting large sums from one place to another place.
Cross cheque can be classified into two types. They are discussed as follows:
i) General Crossing: If the cross cheque does not specify the name of bank to which amount is deposited, it is called general crossed cheque. The amoun tof this type of cheque can be collected by any bank where there is the account of payee. The drawee bank simply makes payment on this cheque on behalf of payee to the bank of payee.
ii) Special crossing: If a cross cheque specifies the name of payee's bank where amount can be collected, it is called special cross cheque. In this type of cheque, the name and address of payee's bank is written within the crossing line and the drawee bank only makes payment in the payee's account of specified bank mentioned in the crossing.

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Development Bank || Function of development bank || Development Bank of Nepal

Development Bank || Function of development bank || Development Bank of Nepal

Development Bank:

Development banks are established to promote industrial, agriculture, tourism, hydro-power sector of the country by satisfying major funding needs of these sectors. In Nepal, Development banks fall under 'B' class. In Nepal development banks are established under the Company Act, 2063 and its operation are carried as per the Bank and Financial Institution Act, 2063. Nepal Industrial development corporation (NIDC), Agriculture development bank ltd, Rural development bank and a number of private development banks have been established as development bank in Nepal under this act.

"Societe General de Beljique" was the first development bank in the world. It was established in 1822 A.D. in Belgium.

Banks established with the objective of providing financial and technical assistance for the development of the basic infrastructure of the country's economy like agriculture, industry, mine, commerce, transport, communication and hydro power is known as development bank.

According to A.G. Kheradjou, "A development bank is like a living organism that reacts to the social-economic environment and it's success depends on reacting most aptly to that environment."

Q1.) What do you mean by development banks? Describe its banking and development functions.
Ans: Banks established with the objective of providing financial and technical assistance for the development of the basic infrastructure of the country's economy like agriculture, industry, mine, commerce, transport, communication and hydro power is known as development bank. The functions of a development bank can be classified into two categories which are as follows;
i) Development Function
ii) Banking Function

 Both development and banking functions of development bank are discuss below; 

Development Functions:
a) Making good environment for investment:
One of the main functions of the development bank is to encourage the national and international investors for investment in different sectors by creating good, secure and trusted environment.
b) Establishment of industries, promotion of industries and research of technology:
Development banks help in the establishment and promotion of new industries, agriculture and rural areas by providing financial, technical and administrative assistance to industries, farmers and small business enterprises in the village and town areas. They take active participation in the research and invention of new science and technology.
c) Selects the priority sectors:
The development bank identifies and select the development need and priority of different areas of the country. On the basis of such development need and priority of different sectors, the banks make the necessary arrangement for their development.
d) Helps to make good plans and policies:
Development banks, directly or indirectly help the industrial unit by managing materials, capital products i.e. land building machinery etc. to operate the activities of industries.
e) Product Analysis: 
Development bank analyses the different types of product and they will give suggestion to operate the best product. In product analysis, the availability of raw materials, laborer, transportation, market and products' demands are analyzed.

  Banking Functions:
a) Accept deposit:
As commercial banks, development banks also accept public deposits providing some interest amount.
b) Provides loan: 
Development banks provides loan to industrial firm and agriculture sectors. They will provide short-term, mid-term and long-term loan in different sectors.
c) Agency function:
Development banks also provide agency functions to their clients or customers by accepting deposits from third parties, paying their expenses, and collecting incomes and receivables on their behalf. It purchases and sells the shares, debentures, bills of exchange.
d) Remit Money:Remittance of money is another important banking function of the development bank. It issues bank draft, mail draft, mail transfer and telegraph transfer which enable safe remittance of money from one place to another place.

2. What is the full form of NIDC?
The full form of NIDC is Nepal Industrial Development Corporation.

3. What is Agriculture Development Bank (ADB)? 
The bank, which is established to develop the agricultural sector of the country, is called Agriculture Development Bank (ADB).

4. Why is Agriculture Development Bank (ADB) established? 
Agriculture Development Bank (ADB) is established to grant agricultural credit to farmers and cooperatives for the overall development of agricultural sector.

5. When was Nepal Industrial and Development Corporation established? 
Nepal Industrial and Development Corporation was established in 2016 B.S. under NIDC Act, 2016.

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Commercial Bank || Commercial Bank of Nepal || Function of commercial bank

Commercial Bank

The term bank normally indicates a commercial bank. It is the oldest of all the bank. It accepts public deposits and grants loan to the needy people. Commercial banks are the general banks whose primary operations are related to accepting public deposit and providing loans to the needy people or organizations against securities for the purpose of earning interest of a certain percent.

Commercial banks in Nepal fall under Class A Financial Institutions which enjoy the right to operate their activities through out the country.

Nepal Bank Ltd. was the first commercial bank in Nepal, which was established in 30th Kartik 1994 B.S. ( November 15, 1937 A.D)

According to Commercial Bank Act 2031 B.S., "Commercial banks are those banks which are established under this act to perform commercial functions except those which are established for specific purpose like development banks and co-operative banks etc." In conclusion, the commercial banks are the general banks whose primary functions are related to acceptance of public deposits and providing individual and corporate loans at a certain rate of interest.

Q1) What is commercial bank? Explain its any six functions.

Ans: A bank established with the objectives to promote and help in the operation of trade, commerce and industries in the country is known as commercial bank. It is established with a motive to earn profit. Commercial banks are the general banks whose primary operations are related to accepting public deposit and providing loans to the needy people or organizations against securities for the purpose of earning interest of a certain percent. According to Commercial Bank Act 2031 B.S., "Commercial banks are those banks which are established under this act to perform commercial functions except those which are established for specific purpose like development banks and co-operative banks etc." In conclusion, the commercial banks are the general banks whose primary functions are related to acceptance of public deposits and providing individual and corporate loans at a certain rate of interest.

The following are the six functions of commercial bank;
a) Accept Deposit: The main function of commercial bank is to accept deposit from people under three different types of accounts such as Saving Account, Current Account and Fixed Deposit Account. Normally, they will not provide interest on current accounts.

b) Provides loan: The second important function of commercial bank is to provide loan to the needy persons or organizations. They will provide short-term, mid-term and long-term loan to the borrower against the securities placed. It charges interest on the loan granted.

c) Creation of credit: Credit creation is a unique function of commercial bank. Commercial bank creates credit based on deposit. When a commercial bank grants loan to its customer, it does not pay cash. It simply credits the account of the borrower. The borrower can withdraw the amount by cheques whenever required. In this case commercial bank creates deposit without receiving cash.

d) Exchanges foreign currencies: Earlier the function of exchanging foreign currencies was performed by the central bank only, but it has been entrusted even to commercial banks. It provide foreignexchange service according to the direction of the central bank.

e) Open Letter of Credit (L.C): For the purpose of importing goods from the foreign countries, it opens L.C. Commercial bank has also been given the right to issue and accept travelers' cheques.

f) Remittance of Funds: Commercial bank transfer money through the means of bank draft, T.T., etc to other places of the country or to foreign countries. In additions it transfer funds to its other branches.

g) Agency function: Banks function in the form of agents and representatives of their customers. Customers give their consent for performing such functions. 

The important functions of these types are as follows:
 (i) Banks collect cheques, drafts, bills of exchange and dividends of the shares for their customers. (ii) Banks make payment for their clients and at times accept the bills of exchange: of their customers for which payment is made at the fixed time.
 (iii) Banks pay insurance premium of their customers. Besides this, they also deposit loan installments, income-tax, interest etc. as per directions.
 (iv) Banks purchase and sell securities, shares and debentures on behalf of their customers.

 h) Miscellaneous Functions: Besides the functions mentioned above, banks perform many other functions of general utility which are as follows:
 (i) Banks make arrangement of lockers for the safe custody of valuable assets of their customers such as gold, silver, legal documents etc.

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Central Bank

Central Bank || Function of Central Bank:

Central bank is the most important bank of every country. Every country has its own central bank. It is the supreme bank of a country. It is regarded as the Bank of the banks. It provides banking and financial services to government. It formulates and implements monetary policy on behalf of the government.

Things to Remembers

Central bank is defined as the highest monetary authority of a country whose primary functions are related to issuance of notes and currencies, controlling other banking operation and making financial plans and policies for the economy of the nation.

According to Prof. Knet, "Central bank may be defined as an institution which is charged with the responsibility of managing, the expansion and construction of the volume of money in the interest of the public welfare."

The first Central Bank of the world was Reek Bank of Sweden which established in 1656 A.D.

Nepal Rastrya Bank is the central bank of Nepal. It was established in 1956 (Baishak 14, 2013) under the Nepal Rastra Bank Act, 1955 (2012 B.S.). Reserve bank of India is the central bank of India, State Bank of Pakistan is the central bank of Pakistan, Bank of England is the central bank of England, Federal Reserve Bank is the central bank of United State and Central Bank of China is the central bank of China.

Functions of Central bank:
The following are the functions of central bank;

1. Issue of notes.
2. Making financial plans and policies.
3. Acts as the government bank.
4. Acts as the bank of the other banks.
5. Controlling credit creations.
6. Central clearance
7. Control of foreign exchange
8. Development of banking system.

Very Important from the Examination View:

Define a central bank. Explain any eight functions of it. 

Ans: Central bank is defined as the highest monetary authority of a country whose primary functions are related to issuance of notes and currencies, controlling other banking operation and making financial plans and policies for the economy of the nation.
According to Prof. Knet, "Central bank may be defined as an institution which is charged with the responsibility of managing, the expansion and construction of the volume of money in the interest of the public welfare." 

The following are the main functions of the central bank;
a) Issue of notes and currencies: Central bank has sole right to issue notes and currencies. It issues both paper notes and metal coins. Nepal Rastrya Bank issues paper notes of Re. 1, Rs. 2, Rs.5, Rs. 10, Rs. 20, Rs. 50, Rs. 100, Rs. 500 and Rs. 1000.
b) Making financial plans and policies: Central bank has right to make and control the monetary system of the countries. The structure of banking system and the necessary ordinances are made and circulated by this bank in order to have a watch over the operation of other financial institutions in the country.
 c) Acts as the government bank: The central bank acts as the agent of the government as it maintains the accounts of ministries, departments and operating level offices as well as other different government projects. It records government revenues and expenditure.
d) Acts as the bank of the other banks: Other banks are established and operated only after the permission and approval of the Central Bank. Central Bank is called the banker of all the banks because the government has given it a total authority to determine the types of banks that need to be established and to control them. It provides loan to the other banks.
e) Controlling Credit Creations: It controls the credit operation of commercial banks. Commercial banks expand credit which may increase inflationary pressure causing devaluation of money and price hikes, this situation is very terrible for the common people as well as government, therefore, the Central Bank applies some techniques of controlling the overflow of money by changing the rate of interest, issuing securities or laying restriction on commercial and other banks granting loans for a certain period of time.
f) Central Clearance: Central bank gives permission to establish other banks on the basis of cash reserve in the central bank. Such cash reserve makes easier to clear inter-bank transaction thus, central bank adjust the accounts of other banks by adjusting entries in their respective accounts. g) Control of foreign exchange : Central bank works has the sole authority in foreign currency management. It regulates the supply of foreign currencies in national economy and maintains their exchange rate with home currency at proper level.
h) Development of Banking System: The government has a policy to support economic development through banking system. The central bank gives permission to individuals or institutions willing to establish bank only after depositing a certain amount of capital, as per the rules of the Central Bank. Central bank is involved in the development of banking system in a country. Further, It encourages the people for the banking habits.

Some More Important Questions:

Which is the central bank of Nepal.  Ans: Nepal Rastrya Bank is the Central Bank of Nepal.

When was the Central Bank of Nepal established?  Ans: Central Bank of Nepal was established in 1956 (Baishak 14, 2013) under the Nepal Rastra Bank Act, 1955 (2012 B.S.).

Which was the first central bank in the world?  Ans: The first Central Bank of the world was Reek Bank of Sweden.

When was the first central bank in the world established?  Ans: The First Central Bank was established in 1656 A.D.

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Financial Institution || Bank || Function of Bank

Financial Institution || Bank || Function of Bank

What is Financial Institution?
Ans: Financial institutions are those institutions which are involved in monetary transactions such as collecting fund, depositing public money, providing loans, buying and selling shares and debentures.

According to A.T.K. Ukrant, " Financial institutions are investment intermediaries linking the savers and users of capital."

Types of Bank:

There are different types of financial institutions. In Nepal, we find the following financial institutions.
 a) Bank
 b) Insurance Company
 c) Employees' Provident Fund
 d) Citizen Investment Trust
 e) Financial Cooperative Society

We can classify financial institutions into two types as Depository Financial Institution and Non-Depository Financial Institution.

Depository Financial Institution

Commercial bank, Development Bank and Finance Companies are the examples of Depository Financial Institution. The Pay interest on deposits and use the deposits to make loans.

Non-Depository Financial Institution.

Insurance companies and citizen investment trust are the examples of Non-Depository Financial Institution.

Bank:

The term Bank is originated from the Italian word 'Banco' which means a bench. The term 'Banco' was used to refer the monetary transactions carried out by sitting on a bench. A bank is a financial institution whose primary function is to accept idle money as deposit and provides loans to the needy people at a certain rate of interest. The following are the different types of Bank:
a) Central Bank
b) Commercial Bank
c) Development Bank.

Q1) Define a bank and describe the functions of a bank.
Ans: A bank is a financial institution whose primary function is to accept idle money as deposit and provides loans to the needy people at a certain rate of interest. According to World Bank, " Banks are financial institutions that fund in the form of deposits repayable on demand or in short notice." The following are the functions of Bank;
i) Acceptance of deposit: The main function of a bank is to accept deposit from the customer under different accounts such as saving account, fixed deposit account and current account.
ii) Provide Loan: A bank provides loan to people and organizations for different time periods as short-term, medium-term and long-term loan. It provides loan against security if certain assets.
iii) Deal with securities: A bank purchases and sells securities on behalf of its customers. The securities like shares and debentures are dealt through stock exchange.
 iv) Creation of credit: A bank creates credit by supplying money as loan to traders and industrialists.
v) Exchange of foreign currency: A bank exchanges foreign currency under the direction of the central bank.
vi) Remittance: A bank provide the facilities of remittance. Remittance means transferring money from one place to another place.
 vii) Agency Functions: A bank also offers a wide range of services to the clients. These include issue of credit cards and debit cards, remittance of money, payment of expenditure, etc.
viii) General Utility service: A bank provides some general utility services to the clients. Such services include lockers facility, travelers' cheques and letter of credit. It also provide the facility of credit instruments like, credit cards, debits cards, ATM cards to the clients.

The first bank of Nepal is Nepal Bank Limited established in 1994 B.S.

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Beauty tips for glowing face || Glowing Face

Here are some beauty tips for glowing face and skin

Beauty Tips for Glowing Face:

1) Take equal quantity of Glycerin, honey and lime juice.
2) Mix it and apply on your face for 1 hour.
3) Wash with cold water.
4) Apply mixture daily for a glowing face.

You can keep this mixture for more than 6 months.

Turmeric Remedy For Glowing Skin

Materials Required:

·    1/2-1 teaspoon turmeric powder

·    4 tablespoons gram flour (also called chickpea flour)

·    Milk or water

Process:

1) Mix the turmeric powder with the gram flour.

2) Add enough milk or water to form a paste.

3) Apply this on your face and neck.
4) Leave it on for 15 to 20 minutes. Rinse with plain water.

Use this remedy once or twice a week.

Coconut Oil Remedy For Glowing Skin

Materials Required:
Virgin coconut oil

Process:
1. Lightly warm up the oil and

2.  Apply on the face and neck.
3. Massage for a few minutes in gentle circular motions.
4. Leave the oil on overnight.

You can add some sugar to the oil and use it as a scrub to exfoliate your skin once or twice a week.

Use coconut oil every night before going to bed.

Aloe Vera For Glowing Skin

Materials Required:

·   1 tablespoon aloevera gel

·   A pinch of turmeric

·  1 teaspoon honey

·  1 teaspoon milk 

Process:
1. Mix all the ingredients.

2. Apply this mixture on the face and neck evenly.
3. Leave it on for about 20 minutes.
4. Rinse with lukewarm water and pat dry.

Apply this face pack twice a week.

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10 HABITS OF SUCCESSFUL STUDENTS

10 HABITS OF SUCCESSFUL STUDENTS

1) Get Organized.

 Making a plan for what you're going to do and when you're going to do it will make sure you're always ahead of the curve - literally.

2) Don't multitask.

 Studies have shown that multitasking is physically impossible.

3) Divide it up. 

Studying isn't fun to begin with, and forcing yourself through a study marathon will only make it worse. Dividing your work into manageable chunks and rewarding yourself when you finish each chunk will make studying (more) fun.

4) Sleep. 

Don't underestimate the importance of those eight hours of zzz's every night! Getting a good night's rest will sharpen your focus and improve your working memory.

5) Set a schedule. 

Do you work better right after school or after you've eaten dinner? Are you more productive in 90-minute blocks or half-hour spurts? Find a schedule that works for you, and stick to it.

6) Take notes. 

Taking notes will not only keep you more engaged during class, but will also help you narrow down what you need to study when exam time rolls around. It's much easier to reread your notes than to reread your entire textbook!

7) Study. 

This one might be obvious, but did you know that there's a right and a wrong way to study? Review your material several days ahead of time, in small chunks, and in different manners (for example, write flashcards one day and take practice tests the next). In other words, don't cram.

8) Manage your study space. 

Find a place that will maximize your productivity. Look for places away from the television and other distractions. Whether it's your local library or just the desk in your bedroom, set aside a study space that you'll want to spend time in.

9) Find a study group. 

Sitting down with a group of people who are learning the same things as you is a great way to go over confusing class material or prepare for a big test. You can quiz each other, reteach material, and make sure that everyone is on the same page. After all, teaching someone else is the best way to learn.

10) Ask questions.

 You're in school to learn, so don't be afraid to do just that! Asking for help - from a teacher, a tutor or your friends - is a surefire way to make sure you truly understand the material.

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