Académique Documents
Professionnel Documents
Culture Documents
September, 2016
1.
2.
3.
4.
WHERE
The first XX denote status of the account
The next XX denote H.O/District of the account
The next XXX denote Branch of the account
The next XXX denote Control Account of the account
The next XXXXX denote Subsidiary Account of the
account
1.
2.
3.
4.
Status Code
Two digits ranging from 00 to 99
H.O/District
Two digits ranging from 01 to 99
Branch
Three digits ranging from 001 to 999
Control Account
Three digits ranging from
001 to 999
5. Subsidiary Account
Five digits ranging from
00001 to 99999
Therefore, the general ledger account number
structure looks as follow:XX-XX-XXX-XXX-XXXXX
WHERE
The first XX denote status of the account
The next XX denote Head office/District of the account
The next XXX denote Directorate/ Branch of the account
The next XXXXXXXXdenote Control Account of the
account
The next XXXXX denote Subsidiary Account of the
account
00 - Active Loans
01 - Reschedule Loans
02 - Loans under court
03 - Inactive Loans
17 - Substandard Loans
18 - Doubtful loans
19 - Loss Loans
Accounting Cycle
journalizing
transactions
and
ends
with
Cash Receipt
Loan Repayment Slip
Lease Repayment Slip
Saving Deposit Slip
Current Account Deposit Slip
Withholding Tax Receipt
Stamp Duty Receipt
Value Added Tax Receipt
Telegraphic Transfer
Payment Voucher
Saving Account Withdrawal Voucher
Cheques
Request for Disbursements
Demand Draft
Cashiers payment Order
Telegraphic Transfer Received
Blocking Outward
Claim Ticket
Journal Voucher
Credit Summary
Claim Ticket
Debit Ticket with advice
Credit Ticket with advice
Cash Receipt
It is used to collect cash other than loan and S/A or
C/A. Such as refund from unutilized advance, service
charge, advance payment for foreclosure, auction and so
on.
Assume that Ato Kebede has requested to issue demand
draft of Birr 100,000.- on 15/03/16
Dr
Cash
Br 100,120
Cr
Demand Draft(DD) Payable
100,000
Cr
Commission income from DD
100
Cr
Service charge
20
Lease
Repayment Slip
It is used to collect lease repayments in cash, through
cheque/demand draft/C.P.O. or from their account.
Saving
Deposit Slip
It is used to collect cash to their saving deposit.
Assume that Meseret has deposited an amount of Birr
8,500 to her saving account No 112-0662
on 15/03/16.
Cash
8,500.S/A
8,500.-
Current
Withholding
Tax Receipt
It is used to collect cash on behalf of ERCA from
service provider
Solution
a, Amount subject to tax = 45,000.Withholding tax rate
= 2% of the amount
subject to tax
= 2%* 45,000.- = 900.b, Amount subject to tax = 45,000.Although, Withholding tax rate is 2%, it is treated
as a business profit tax. Which is 30%
Hence, withholding tax is calculated as =
30%* 45,000.- = 13,500.-
a,
b,
Dr
Dr
900
44,100
13,500
31,500
Stamp
Duty Receipt
It is used to collect cash on behalf of ERCA from
contract agreements.
Solution
Amount subject to tax = 15,000,000.Stamp duty tax rate
= 1.25% of the loan amount
or 1% of collateral amount
= 1.25%* 15,000,000.- = 1,875,000.Dr
Cash 1,875,000
Cr Stamp duty charge payable 1,875,000
Value
Solution
Amount subject to VAT 6,500,000.VAT rate 15%
VAT amount = 6,500,000.- * 15.%
= 975,000.-
a)
Dr
Cash
7,475,000
Cr VAT payable
Cr Asset Awaiting (AAR)
Cr Gain on sale of AAR
975,000
6,000,000
500,000
b)
Dr
Dr
Cash
7,475,000
Loss on disposal of AAR 1,000,000
Cr VAT payable
975,000
Cr Asset Awaiting (AAR)
7,500,000
Telegraphic
Transfer
It is used to collect cash from the customer/staff when
the customer/staff need to transfer money to other
branch/H.O./
Solution
Transfer amount/cash received =6,000
Commission income =0.1% of Transfer amount
Commission income =0.1% * 6,000=Birr 6
Telephone income =Birr 9.50
a)
Dr cash
6,015.50
Cr Head office account
6,000
Cr Commission income
6
Cr Telephone income
9.50
Dessie branch will send T.T ticket with credit summary
to Head office.
Demand
Draft
It is used to collect cash to issue demand draft upon
request.
Cash
100,100.
Cr Demand Draft Payable
100,000
Cr Commission income
100
a) If the Demand draft is to be paid on same branch
Dr
Demand draft payable
100,000
Cr Cash
100,000
b) If the demand draft is presented on some other branch
or Head office,
Dr Demand draft payable
100,000
Cr Head Office
100,000
100,000
100,000
Cashiers
Assume
Solution:
Dr
Cash
850,020.Cr C.P.O payable
Cr Commission Income
850,000.20.-
Payment
Voucher
It is used to make payment on cash other than loan
and S/A or C/A. Such as advances, utilities, payment
from payable account, refund of receipt above the
advance, refund of advance payment for foreclosure,
auction and so on.
Saving
S/A
3,500.Cash
3,500.-
Cheques
It is used to make payment from Current Account
Assume that Dereje has withdrawn an amount of Birr
100,000 from his current account No 107- 0864
on 15/03/16.
C/A
100,000.Cash
100,000.-
Request
for Disbursements
It is used effect payment based on loan/lease contract
agreement
Assume that a loan has disbursed to Ato Belete Birr
5,000,000 for loan No. 00-10104 - 00008 on 15/03/16.
Dr Industry loan
5,000,000
Cr C/A No.107-0978
5,000,000
Off-balance sheet
Dr Commitment- Liability 5,000,000
Cr Commitment- Asset
5,000,000
Blocking
Outward
It is used to handle other branches customer/staff to
withdraw from his/her account
Suppose that W/o Abeba - staff of D/Birhan branch
wants to withdraw Birr 3,000. from her S/A from Head
Office.
a) Journalize appropriate accounting entry at Head
Office.
b) Journalize appropriate accounting entry at D/Birhan
branch.
Solution
a) At Head Office
Dr Blocking outward 3,000.Cr Cash
3,000.H.O will send blocking ticket with stamped
withdrawal form to D/Birhan branch to serve as claim.
b) At D/Birhan Branch
Dr
S/A of W/ro Abeba
3,000.Cr Blocking inward
3,000.-
Journal Voucher
It is used to handle non cash transactions like monthly
interest accruals, payroll transactions, adjustments, year
end closing transactions, advance clearance, monthly
interest collection.
Claim Ticket
It is used to request other branch/H.O to confirm the
payment effected on behalf of them.
Credit Summary
It is used for to respond claims from other branches
/H.O and pass inter-branch account/Head Office account.
Debit Ticket with advice
It is used to debit his account and notify to the customer
Credit Ticket with advice
It is used to credit his account and notify to the
customer
Date
Particular Debit
s
Credit
17/05/16
Entry of
the day
18/05/16
Daily
100,000
transactio
n
10,000
94,420
19/05/16
Daily
60000
transactio
n
20,000
134,420
4,420
Balance
4,420.-
Auditors
initial
Date
Particular Debit
s
31/05/20
16
Calculate 70,000
d interest
Credit
Balance
70,000
Auditors
initial
Date
Particular Debit
s
17/05/16
Entry of
the day
4,420
Credit
Balance
4,420.-
Auditors
initial
Date
Particular Debit
s
17/05/16
Entry of
the day
4,420
Credit
Balance
4,420.-
Auditors
initial
Date
Particular Debit
s
17/05/16
Paid to
Zenebe
1,800.-
Credit
Balance
1,800.-
Auditors
initial
Date
17/05/16
Particular
Debit
s
Entry of
the day
2,500
Credit
Balance
2,500.-
Auditors
initial
Date
17/05/16
Particular
Debit
s
Plate No.
AA 365766
Credit
70.-
Balance
70.-
Auditors
initial
Date
17/05/16
Particular
Debit
s
For
loading of
fixed
asset
Credit
50.-
Balance
50.-
Auditors
initial
Date
12/05/16
17/05/16
Particular
s
Debit
Credit
5,000.-
Balance
5,000.-
4,420.-
580.-
Auditors
initial
Date
Particular Debit
s
Credit
Balance
Auditors
initial
Valu
e
date
Day
No.
D
ay
Posti
ng
type
Vouc
her
Amou
nt
Breakd
own of
postin
g
princip
al
Int.
cal
cul
ati
on
Intere
st
Mem
o int
Pric
ipal
out
stan
din
g
Arre
ars
Princ
ipal
Com
mit
men
t
Bal.
Inter
est
Income Tax
Pension - 7%
Graduate tax = 380
Staff loan
= 1500
Housing loan = 1200
Automobile loan = Staff Receivable = 500
Other deductions = Credit Association loan = 300
Monthly Return
Cash holding position
Cash count & imprest fund
Bank Account Position
Breakdown of Receivables
Breakdown of Uncleared Effects
Breakdown of Payables
H.O. Account/Inter-branch Account Statements
H.O. Account/Inter-branch Account Reconciliation
Expense Summary
Income Summary
Income expense summary
Schedule of Accumulated Depreciation
Schedule of Provision
Schedule of Fixed Assets
Schedule of Assets Awaiting for resale
Breakdown of loans
Breakdown of memorandum accounts
General Ledger Position
Monthly Reports
Lease financing position report
- Product wise
Loan position report
- by Category
Tax, pension and related reports
Ageing of Receivables and Payables
Quarterly Reports
Saving by range and regional state
Demand deposits by range and regional state
March, 2016
Bank balance
Bank balance confirmations have to be presented at
bank level in advance .
Comparison of some bank balance confirmation
report shows that there was variance between the
bank balance report of the bank with the bank
statement.
Some international bank reconciliation
balance
shows that there are many
long outstanding
balance in foreign currency amount.
Treasury Bills
The content of preparing such type of interest income
earned from treasury bills schedules manually should be
included at least the following components of reports;
-value date ,reference ,Number of days, amount of
purchased , basis of interest, discount rate , previous
year discount interest balance, and should be reconciled
with current date accrued interest balance plus current
date due interest balance.
Before returned back the certificate it should be held a
copy of the certificate.
Fixed asset
Fixed asset register balance should be reconciled
with General ledger balance.
Reconciliation of cost of fixed asset has to be done
in the under mentioned way;
-previous year original cost balance
plus
addition of fixed asset( either purchase
capitalized
portion),
transfer
in,
increase
adjustment if any,
Less
Disposal, transfer out, decrease adjustment if any.
Reconciliation of accumulated depreciation is equal to
Previous year register balance plus current year
depreciation expense ,increased adjustment if any,
transfer in.
Less transfer out, decreased adjustment, disposal.
Rent income
The tax purpose report of rent income and other related
expense should be explanatory and it should describe the
following.
the way calculated the balance in explicit way
The schedule of rent income report should contain;
Monthly rent, rent contract agreement, amount collected
during the monthly/quarterly, tenant name, uncollected
amount, uncollected month, deducted withholding
receivable.
Provision
Check properly holding of provision for receivable, asset
awaiting and loan account
Check properly recording of provision on the T-24 system
for on line branches and manually for off line branches.
Reviewing and checking of the net impact of provision on
income statement of all branch and head office.
It should reflected in the income statement in the
following way;
Thank You!!
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3.
4.
5.
6.
7.
8.
9.
(Pension
Contribution)
G. 1 2003 / 30
2004 / 5%
. 1 2004 / 30
2005 / 6%
. 1 2005 / 7%
sT> ^
. 1 2003 / 30 2004 /
7%
. 1 2004 / 30 2005 /
8%
. 1 2005 / 30 2006 .
9%
. 1 2006 /
11%
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/ 78/94 3()
21/2007
(1/4)
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