[PairTheBoard]

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I'm pretty sure (but not 100% sure) that when I deposit $400 billion into my Bank of America checking account, it does not show up on Bank of America's balance sheet. It's not an asset owned by the bank. Would my account at Party necessarily be treated differently (accounting-wise) from my account at Bank of America?



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Well, it doesn't show up on their income statement and it isn't stock sold or additional paid in capital from partners, so it must be on their balance sheet. The bank owes it to you. So from the bank's perspective it would be a debit to cash and a payable credit to Maurile.

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Thanks for responding. But help me understand. When I put my furniture in a local storage space, the storage company does not list my furniture on its balance sheet, right? It's not an asset owned by the storage company. The furniture is mine; I'm just keeping it there for a bit. It is essentially being held in trust for me.

Wouldn't a checking account work the same way? The cash in my checking account is not an asset owned by the bank. It's held in trust for me. It's in my locker, or my storage space.

(Even if my checking account doesn't work like this, since banks invest the capital and therefore take possession and control of it, wouldn't my PartyPoker account work like this if they keep it in a segregated account?)

Or am I way off on this?

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Your deposit at a Bank shows up on the Bank's balance sheet as a Liability. If they take that money and make a loan, that loan shows up on their balance sheet as an asset.

The money in player accounts is also showing up as a liability on Party Poker's balance sheet. My concern is what they do with that money. I had thought they deposited it in Banks and it would show up on their balance sheet as such. Evidently this is not the case though. They show Cash but as far as we can tell from the balance sheet, the Cash from Player Accounts is comingled with their other cash. There appears to be nothing stopping them from using it for something like buying Empire Poker.

PairTheBoard