Cash and bank balances

Cash and bank balances heading generally includes following:

  • Cash in hand
  • Balances available with banks
  • Demand deposits (funds kept in bank account which can be withdrawn at any time without  prior notice);
  • Any other short term highly liquid investments that are readily convertible to known amount of cash e.g. term deposits, prize bonds etc.

These are carried in the balance sheet at cost.

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