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Accounting information helps users to make better financial decisions. Users of financial information may be both internal and external to the organization.
Internal users (Primary Users) of accounting information include the following:
- Management: for analyzing the organization's performance and position and taking appropriate measures to improve the company results.
- Employees: for assessing company's profitability and its consequence on their future remuneration and job security.
- Owners: for analyzing the viability and profitability of their investment and determining any future course of action.
Accounting information is presented to internal users usually in the form of management accounts, budgets, forecasts and financial statements.
External users (Secondary Users) of accounting information include the following:
- Creditors: for determining the credit worthiness of the organization. Terms of credit are set by creditors according to the assessment of their customers' financial health. Creditors include suppliers as well as lenders of finance such as banks.
- Tax Authourities: for determining the credibility of the tax returns filed on behalf of the company.
- Investors: for analyzing the feasibility of investing in the company. Investors want to make sure they can earn a reasonable return on their investment before they commit any financial resources to the company.
- Customers: for assessing the financial position of its suppliers which is necessary for them to maintain a stable source of supply in the long term.
- Regulatory Authorities: for ensuring that the company's disclosure of accounting information is in accordance with the rules and regulations set in order to protect the interests of the stakeholders who rely on such information in forming their decisions.
JAIBB Accounting For Financial Service Math Solution -Last Edition May 2018 (Paperback) - BUY NOW
What is accounting?
Accounting is the recording of financial transactions plus storing, sorting, retrieving, summarizing, and presenting the information in various reports and analyses. Accounting is also a profession consisting of individuals having the formal education to carry out these tasks.
One part of accounting focuses on presenting the information in the form of general-purpose financial statements (balance sheet, income statement, etc.) to people outside of the company. These external reports must be prepared in accordance with generally accepted accounting principles often referred to as GAAP or US GAAP. This part of accounting is referred to as financial accounting.
What are the main objectives of Accounting?
- To keep systematic records: Accounting is done to keep a systematic record of financial transactions. In the absence of accounting there would have been terrific burden on human memory which in most cases would have been impossible to bear.
- To protect business properties: Accounting provides protection to business properties from unjustified and unwarranted us. This is possible on account of accounting supplying the information to the manager or the proprietor.
- To ascertain the operational profit or loss: Accounting helps is ascertaining the net profit earned or loss suffered on account of carrying the business. This is done by keeping a proper record of revenues and expenses of a particular period. The profit and loss account is prepared at the end of a period and if the amount of revenue for the period is more than the expenditure incurred in earning that revenue, there is said to be a profit. In case the expenditure exceeds the revenue, there is said to be a loss.
- To ascertain the financial position of business: The profit and loss account gives the amount of profit or loss made by the business during a particular period. However, it is not enough. The businessman must know about his financial position i.e., where he stands; what he owes and what he owns? This objective is served by the balance sheet or position statement.
- To facilitate rational decision making: Accounting these days has taken upon itself the task of collection, analysis and reporting of information at the required points of time to the required levels of authority in order to facilitate rational decision making.
Question: Bank Reconciliation::
i) Balance as per Bank statement 86129
ii) Deposit in transit 44700
iii) Outstanding cheque 1,29,478
iv) Bank error (deposit understated) 10,000
v) NSF cheque from customer debited to the account by the bank 2300
vi) Bank service charge for december 75
vii) Error of deposit book (cheque to pay creditor at Tk 300 but written for only tk 30) 270
viii) Bank Balance as per depositor recorded 31-12-2014 13,506
Solution:
i) Balance as per Bank statement 86129
ii) Deposit in transit 44700
iii) Outstanding cheque 1,29,478
iv) Bank error (deposit understated) 10,000
v) NSF cheque from customer debited to the account by the bank 2300
vi) Bank service charge for december 75
vii) Error of deposit book (cheque to pay creditor at Tk 300 but written for only tk 30) 270
viii) Bank Balance as per depositor recorded 31-12-2014 13,506
Solution:
| Particulars | Amount | Amount |
| Balance as per Bank statement | 86179 | |
| Add, Deposit in transit | 44700 | |
| Add, Deposit understated | 10000 | |
| 54700 | ||
| Less, Outstanding cheque | 129478 | |
| Correct Bank Balance | 11401 | |
| Balance as per depositor's book | 13506 | |
| Add, Deposit Book Error | 270 | |
| Less, NSF cheque | 2300 | |
| Less, Bank service charge | 75 | |
| 2375 | ||
| Correct Bank Balance | 11401 |
Q. 4(d)
A) Prepare bank reconciliation statement showing corrected balance in Both Bank statement and Aruna Traders ledger account
Solution:
| Auroni Traders | ||
| Bank Reconciliation statement |
| Particulars | Tk | Tk. |
| Bank Balance as per Bank statement | 40,001.36 | |
| Add, Deposit after Banking Hour | 3,287.20 | |
| Bank Balance | 43,288.56 | |
| Less, Outstanding cheques | ||
| (1640+800+82+3220) | 5,742.00 | |
| Correct Cash Balance | 37,546.56 | |
| Bank Balance as per books | 34,102.64 | |
| Add, Proceed from collection | 4,000.00 | |
| Add, Interest earned on deposit | 219.92 | |
| 4,219.92 | ||
| 38,322.56 | ||
| Less, Fees charged plus vat | 40.00 | |
| Cheque for collection but return unpaid | 591.00 | |
| Bank service charge and vat | 96.00 | |
| Income tax | 22.00 | |
| 749.00 | ||
| Less, Errors over statement (896-869) | 27 | |
| Total less | 776.00 | |
| Corrected Bank Balance | 37,546.56 | |
যদি Bank Balance as per Bank statement দিয়ে শুরু হয় তবে Outstanding cheques amount বিয়োগ করতে হবে।
একটি সহজ নোটঃ
- যদি Bank Balance as per Bank statement দিয়ে শুরু হয় তাহলে এটার অর্থ হল আমি Bank Balance as per Bank statement এর correct balance বাহির করব। এক্ষেত্রে সাধারনত কিছু নিয়ম মনে রাখলে সুবিধা হয়ঃ
- wrongly debited from this account
-deposited by customer after bank hour
- cheque in transit
- wrongly less posted by bank officer
Less,
- Outstanding cheque (cheque issued by company but not cashed or not presented to the bank)
- wrongly credited
JAIBB Accounting Tutorial পর্ব-৩ঃ
পর্ব-১ এবং পর্ব-২ এ আমরা Basel related অংক করার নিয়ম এবং জুন-১৪ অংকের সমাধান করেছি।
আজকের পর্বে আমরা ব্যাংক Reconciliation statement কিভাবে করে সেটা দেখব।
Post গুলো শেয়ার করে ছড়িয়ে দিন।
General Rules:
-------------------
If the reconciliation statement starts with the ‘Balance as per Cash Book’:
- Add (Plus) all the ‘credit’ transactions of Cash Book /Pass Book with the balance
- Subtract (Minus) all the ‘debit’ transactions of Cash Book /Pass Book with the balance
পর্ব-১ এবং পর্ব-২ এ আমরা Basel related অংক করার নিয়ম এবং জুন-১৪ অংকের সমাধান করেছি।
আজকের পর্বে আমরা ব্যাংক Reconciliation statement কিভাবে করে সেটা দেখব।
Post গুলো শেয়ার করে ছড়িয়ে দিন।
General Rules:
-------------------
If the reconciliation statement starts with the ‘Balance as per Cash Book’:
- Add (Plus) all the ‘credit’ transactions of Cash Book /Pass Book with the balance
- Subtract (Minus) all the ‘debit’ transactions of Cash Book /Pass Book with the balance
Bank Reconciliation Statement ফরমেটঃ
RECONCILIATION STATEMENT
-----------------------------------------
Name of the Trade /Business …………
Bank Reconciliation Statement
As at ------- 200—
Particulars Amount (Tk.) Amount (Tk)
Bank balance as per Cash Book or Bank Overdraft
Add: (যোগ করতে হবে)
-----
1. Cheques issued or drawn but not presented to the Bnak in
time
for payment.
2. Profit on bank balance
3. Cash or cheques paid or deposited by the customers directly
into the Bank
4. B/R, income from securities, dividend, insurance claims, etc.
collected or realized by the Bank directly
5. Items already credited to Cash Book but not debited to
Pass Book
6. Items already credited to Pass Book, but not debited to
Cash Book
RECONCILIATION STATEMENT
-----------------------------------------
Name of the Trade /Business …………
Bank Reconciliation Statement
As at ------- 200—
Particulars Amount (Tk.) Amount (Tk)
Bank balance as per Cash Book or Bank Overdraft
Add: (যোগ করতে হবে)
-----
1. Cheques issued or drawn but not presented to the Bnak in
time
for payment.
2. Profit on bank balance
3. Cash or cheques paid or deposited by the customers directly
into the Bank
4. B/R, income from securities, dividend, insurance claims, etc.
collected or realized by the Bank directly
5. Items already credited to Cash Book but not debited to
Pass Book
6. Items already credited to Pass Book, but not debited to
Cash Book
Less: (বিয়োগ করতে হবে)
-------
2. 1. Bills/Cheques deposited into Bank, but not yet collected or
cleared.
2. Bills/Cheques deposited into Bnak, but returned dishonoured
3. Bank charge, commission, profit on overdraft, etc. not yet
credited to Cash Book
4. B/P, Insurance premium, utility bills etc. paid by the Bnak
5. Items already debited to Cash Book, but not credited to
Pass Book
6. Items already debited to Pass Book, but not credited to
Cash Book
Bank Balance as per Pass Book or Bank Overdraft as per Cash
Book
-------
2. 1. Bills/Cheques deposited into Bank, but not yet collected or
cleared.
2. Bills/Cheques deposited into Bnak, but returned dishonoured
3. Bank charge, commission, profit on overdraft, etc. not yet
credited to Cash Book
4. B/P, Insurance premium, utility bills etc. paid by the Bnak
5. Items already debited to Cash Book, but not credited to
Pass Book
6. Items already debited to Pass Book, but not credited to
Cash Book
Bank Balance as per Pass Book or Bank Overdraft as per Cash
Book
এই নিয়ম গুলো মনে রাখলে অংক করা সহয হবে। পরের পোষ্টে অংকের সমাধান দেয়া হবে ইনশাআল্লাহ।
Some Bank reconciliation solution:
Accouting Tutorial: Bank reconciliation statement [JAIBB Jun 2014]
JAIBB Accounting Tutorial: Bank Reconciliation [Jun 2015]
Some Bank reconciliation solution:
Accouting Tutorial: Bank reconciliation statement [JAIBB Jun 2014]
JAIBB Accounting Tutorial: Bank Reconciliation [Jun 2015]
| JAIBB Jun 14 Accounting | |||||
| Q. 8© | |||||
| B. Required capital is 10% of RWA. Show in this situation the status of required capital is deficit or surplus | |||||
| Solution: | | | | | |
| Total RWA | 83664200000 | | |||
| 10% of Total RWA | 8366420000 | = 837 crore | | ||
| We know minimum capital requirement is 400 crore as per Risk Base capital guideline (RBCG). | | ||||
| Hence required capital is surplus by 837 -400 = 437 crore | | ||||
| | | ||||
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| JAIBB Jun 14 Accounting | |||||
| Q. 8© | |||||
| A. Compute core capital (Tier-I) and supplemnatry capital (Tier-II) and total capital thereof from above data | |||||
| Core capital (Tier-I) | Amount | Supplimentary capital (Tier-II) | Amount | ||
| Paid up capital | 5254790000 | Exchange equalization Reserve | 420000 | ||
| Other Reserve | 8166000 | General Provision maintained against unclassified loan/investment | 924024000 | ||
| Statutory reserve | 2959358000 | General Provision on off balance sheet exposure | 461585000 | ||
| Share premium | 330000 | Revaluation reserve for govt securities 50% | 733609000 | ||
| Retained earning | 1322181000 | | | ||
| | | | | ||
| | | | | ||
| | | | | ||
| | | | | ||
| | 9544825000 | | 2119638000 | ||
| Tier-I capital = 9544825000 |
| ||||
| Tier-II capital = 2119638000 |
| ||||
| Total capital = Tier-I capital + Tier-II capital |
| ||||
| 11664463000 |
| ||||
JAIBB Accounting Tutorial: যারা একাউন্টিং পরীক্ষা দিবেন তাদেরকে এবং যারা এই পোস্টটি পড়বেন সবাইকে মোবারকবাদ।
JAIBB Accounting পরীক্ষায় BASEL related অংক আসে। তাই আজকে BASEL related অংক নিয়ে আলোচনা হবে। আপনাদের সহযোগীতা নিয়ে আমিও কিছু শিখতে চাই।
প্রতিটি আর্থিক প্রতিষ্ঠানকে বিভিন্ন ঝুকি মোকাবেলা করতে হয়। কোন প্রতিষ্ঠানের পর্যাপ্ত মূলধন থাকলে এই ঝুঁকিগুলো সহজে মোকাবেলা করা যায়।
এক্ষেত্রে ব্যাংক সমূহের কতটুকু মূলধন সংরক্ষন করতে হবে তা নির্ধারনের জন্য ১৯৮৮ সালে BASEL committee on Banking Supervision (BCBS) একটি measurement system প্রকাশ করেন যা BASEL accord-I বা BASEL-I নামে পরিচিত।
ব্যাংকের ক্ষেত্রে মূলধন হবে মূলত তিন ধরনের।
১। Tier-1 or Core capital
2. Tier-2 or Supplementary Capital
3. Tier-3 or Addition capital
Tier-I:
1. Paid up capital
2. Non repayable share premium
3. Statutory form reserve
4. General reserve
5. Retained earning / Undivided profit
6. Minority interest in subsidiaries
7. Non-cumulative redeemable preference share
8. Dividend equalization account
Tier-2:
1. General provision on Loan & advance, Special Mention A/C, Off Balance sheet exposure
2. Revaluation reserves:
a) for fixed asset [1]
b) for securites [2]
c) for equity [3]
3. All other preference share
4. subordinated debt
5. Mandatory convertible debt
6. Intermediate term preferred stock
7. Cumulative perpetual preferred stock with unpaid dividends
8. Exchange equalization A/C
9. Redeemable preference share.
Tier-3:
Consisting of short term subordinated debt (original maturity less than or equal to five years But greater than or equal to two years)
