Final answer:
A T-account balance sheet for a bank lists assets on the left and liabilities with net worth on the right. Total assets include reserves, loans, and government bonds. The bank's net worth is calculated by subtracting liabilities from assets, resulting in this example's bank having a net worth of $220.
Step-by-step explanation:
B) False A debit balance of £3,000 brought down on A Ltd's account in B Ltd's books does not necessarily mean that B Ltd owes A Ltd £3,000. The interpretation of debit and credit balances depends on the type of account and the accounting context. In the context of accounts, a debit balance generally indicates that the account has more debits than credits. In the case of a liability account, like an accounts payable or an amount owed to another entity, a debit balance would indeed mean that B Ltd owes A Ltd money.
However, if the account represents an asset or an equity account, a debit balance could indicate that A Ltd owes money to B Ltd. For example, if the account represents a loan given by B Ltd to A Ltd, then a debit balance would signify the amount A Ltd owes to B Ltd. In summary, the meaning of a debit balance depends on the type of account. For a liability account, it could indicate that B Ltd owes A Ltd, but without knowing the specific account type, the statement cannot be definitively labeled as true.