Monetary funds are funds in the form of money owned by a business, and according to accounting standards, it includes cash on hand, bank deposits, and other monetary funds. Monetary capital is one of the most important assets of an enterprise, which is of great significance to the daily operation and long-term development of the enterprise.
1.Cash on hand.
Cash on hand refers to the cash held by a business, including banknotes and coins. It is the most liquid asset in a business and can be used for payments and transactions at any time. On the balance sheet, the amount of cash on hand should be equal to the amount of cash actually held by the business.
2.Bank deposits.
Bank deposits refer to the monetary funds deposited by a business with banks or other financial institutions. It is the most important form of monetary capital in an enterprise, usually accounting for a large proportion of the total assets of the enterprise. Bank deposits have lower yields, but higher security and better liquidity.
3.Funds in other currencies.
Other monetary funds refer to the funds in the form of currencies other than cash in hand and bank deposits, such as bank drafts, cashier's checks, credit card deposits, etc. These forms of funding are also more liquid, but they may be less secure than cash on hand and bank deposits.
Monetary Funds on Balance Sheet = Cash on hand + Bank deposits + Funds in other currencies.
This formula can be used to calculate the total amount of monetary funds of an enterprise, and it can also be used to calculate the changes in monetary funds of an enterprise in a certain period. In the process of calculation, it is necessary to pay attention to the classification and measurement methods of monetary funds to ensure the accuracy and reliability of the calculation. If the enterprise has foreign currency deposits, it needs to be converted according to the base currency of the account.
In short, the calculation of monetary funds in the balance sheet needs to follow the provisions of accounting standards to ensure the accuracy and reliability of the amounts. At the same time, special circumstances such as unreached accounts need to be adjusted and dealt with to ensure the completeness and accuracy of the statements.