Principles of Accounts Online: Balancing Off Accounts
ContentReady To Connect With Business Leaders?Off-Balance Sheet (OBS) Activities: Types and Examplesoff balance | American DictionaryBank AccountNext StepsExamples of off balanceviews We need to work out the balance on each of these accounts in order to compile the trial balance. A bank may have substantial sums in off-balance-sheet accounts, and the distinction between these accounts may not seem obvious. For example, when a bank has a customer who deposits $1 million in a regular bank deposit account, the bank has a $1 million liability. If the customer chooses to transfer the deposit to a money market mutual fund account sponsored by the same bank, the $1 million would not be a liability of the bank, but an amount held in trust for the client . If the funds are used…