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so the topic in this video is the course of Bangalore which is under the chapter to see of the management of current liabilities so in this video I will demonstrate the first two cause of balance that is the line of credit and revolving credit agreement I will briefly explain what is the first these two types of bank loans and also I will demonstrate a simple calculations on these two illustrations or examples okay the first one is line of credit line of credit is an informal agreement between upper oval in the bank about the maximum amount of credit the obeying will provide the borrower at any one time there is no legal commitment on the part of the bank to provide the stated credit it depends on whether the bank has sufficient funds available usually required borrow will maintain minimum balance in the bank through a loan period or compensating balance of 10 to 20 percent of the amount borrowed so this is an example of line of credit for bank loan as f Berhad recently arranged for a
