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Demand Deposits for Banks

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Banks rely heavily upon customers deposits as a source of funds. Demand deposits normally pay interest to the customer, who is entitled to withdraw at anytime without prior notice to the bank. Checking and NOW accounts are the most popular for of demand deposits for banks. Assume that Kennon Storeage has a checking account at Livingston Savings Bank. What type of account (asset, liability, owners equity, revenue, expense, drawing,) does the account balance of 15,600 represent from the viewpoint of (a) Kennon Storage, and (b) Livingston Savings bank?

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The demand deposit for banks is examined.The type of accounts for balances to represent the viewpoints are determined.

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a) What type of account does the account balance of 15,600 represent from the viewpoint of Kennon Storage: This would be an asset ...

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