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EFFECTIVE – INTER –BRANCH ACCOUNTING SYSTEM. (CASE STUDY OF CENTRAL BANK OF NIGERIA

EFFECTIVE – INTER –BRANCH ACCOUNTING SYSTEM.

(CASE STUDY OF CENTRAL BANK OF NIGERIA

ABSTRACT


EFFECTIVE INTER- BRANCH ACCOUNTING SYSTEM (A CASE STUDY OF CENTRAL BANK OF NIG)

 

The focus of this study is to asses the effectiveness of bank inter –branch accounting system using central bank as case study.

Assessment of the effectiveness of inter branch accounting system in Nigeria cannot be over emphasized, bank in Nigeria are faced with problem of the branch accounting Aranster.

Inter-branch accounting system arises as transaction are attached between branch of the same and its branches, with the problems encounted by bank in their inter-p branch dealings there anises a greater need for an efficient management of the possible  operating conditions.

In the Coors this work questionnaires and interview methods of investigation were used to collect data from the respondents. Data collected by the above means were  Presented and in chapter four and also sued to test the hypothesis that is for umlauted in chapter one the result of the test shows the bank under study uses inter-branch accounting system bin their  dealings.

In the light of some weaknesses identified in the course of data analysis some re commendations were made, and it is behaved that if the recommendation are implemented, the efficiency of inter-branch accounting system in banks will be improved.

CHAPTER ONE


INTRODUCTION                                                         VIII

  • INTRODUCTION 1

  • PURPOSE OF THE STUDY 2

  • STATEMENT OF STUDY 3

  • RESEARCH HYPOTHESIS 4

  • SIGNIFICANCE OF THE STUDY 5

  • SCOPE AND LIMITATIONS OF THE STUDY 5


CHAPTER TWO


LITERATURE REVIEW                                               10

  • INTRODUCTION 10

  • WHAT IS MEANT BY INTER-BRANCH ACCOUNTING SYSTEM                                       11

  • THE ESSENCE OF CONTROL                    18

  • MESSAGE OF VALUE                                      20

  • CODE BOOK AND TELE TEXT NUMBER 22

  • RECONCILIATION OF BRANCH ACCOUNT CURRENT 23

  • TRANSFER FROM BRANCH TO BRANCH 24


REFERENCES                                                    30

 

CHAPTER THREE


RESEARCH METHODOLOGY                                  31

  • STUDY AREA 31

  • SOURCES OF DATA 31

  • PRIMARY DATA 32

  • SECONDARY DATA 32

  • SAMPLE USED 33

  • METHOD OF INVESTIGATION 34

  • STATISTICAL METHOD USED FOR DATA ANALYSIS (CHI –SQUARE STATISTICS) 35


 

CHAPTER FOUR



  • PRESENTATION, AND INTERPRETATION OF DATA 36

  • TEST OF HYPOTHESIS 49


 

CHAPTER FIVE


FINDINGS RECOMMENDATION AND CONCLUSION

  • FINDING 54

  • CONCLUSION 56

  • RECOMMENDATION 57


BIBLIOGRAPHY                                                          59

APPENDIX                                                          61

RESEARCH QUESTIONNAIRES                      70



PROPOSAL

Effective inter-branch accountings system (case study of centra bank or Nigeria). The focus this study is to asses the effectiveness of inter-branch accounting system using centra banks as a case study. Assessment of the effectiveness of inter-branch accounting transfer.

Inter-branch accounting system Aries as transactions are affected between the branches office same institution or between the head office its branches with the problems encounted by banks in their inter-branch dealings there arise a greater need for an efficient management of the possible operation condition

 

 

 

 

 

 

 




CHAPTER ONE

  • INTRODUCTION


Inter-bank accounting arise as transaction are affected between branch of the same its institution or between the head    office and  its branches.

These transaction could either result from demand for by one branch or quoted, pending regular supply of cash from head office of expenses incurrent on behalf of a staff of a particular branch by another branch such transaction as above will warrant the raising of messages of value for or against any of the branches as the case may be. Such message as forwarded with utmost dispatch to head office which will upon the receipt of authorized message of value debt the receiving branch credit the giving branch accounting.

Debt of credit actions are affected either in the branch accounts, current “personal of impersonal depending on the nature of transactions

In considering of the volume of transactions that take place daily between carious branches of these banks been a functional inter-branch accounting system.

However, this system has seemingly been rendered ineffective high volume of transaction and bureaucratic procedures which result into back log of untreated items.

 

  • PURPOSE OF STUDY


There is an urgent need for a modified effective treatment of inter-branch transaction which would greatly reduce the time –lag between then transactions is initiated in one branch and when that transaction is responded to at the other branch.

The two branches concerned in the transaction would be expected to more involved for the finely and conclusion treatment of the transaction within 12 working days.

This is aimed at enhancing the banks in relation to system of the section and head office/branch transactions.

Effective treatment of inter-branch transactions will equally prepare as much as possible a focus for both of  the internal and external auditors of the bank to audit the account of the banks in line with the companies and Allied matter act (AMA). The purpose of this study is therefore to:

  1. Identify the cause of the various bottle necks inter branch transfer.

  2. Determine the scope and effectives of such bottle neck.



  • Suggest ways of camphorating the situation till in the proposed modified effective inter branch accounting system.



  1. High light possible advantages and make conclusion and recommendations


 

  • STATEMENT OF THE STUDY


The present method of inter-branch transaction of volume within the bank as first introduced in central bank of Nigeria in 1980 when the turn accounts current “personal and impersonal” were created to replace the simple current account maintained for inter-branch transactions.

By customer patronage was relatively come terms of number, value and act unities.

However, there has been astronomical increase in these indices over the years, for instance while the branch network these banks doubted between 1980 and 1988, the value of understanding items, built up partly because the branch never relate to one another directly in any may but have to effect their transfer tom and from one another the head office in the process, it could be delayed, misplace sometimes become textile ground fraudsters and with gave consequences for the in general.

 

  • RESEARCH HYPOTHESIS


Ho:    The administrations are procedures currently in place in banks are absolute.

Hi:     The administration procedures currently in place in bank are not absolute.

  • SIGNIFICANCE OF THE STUDY


Finding from a study of nature are expected to contribute immensely touch aids improving also help in enhancing the speedy dispensation of inter-bank accounting system Nigeria. The result will specifically reveal the problem areas and the may out of the problem.

In effect, bankers researcher, scholars a study of this nature.

 

1.6     SCOPE AND LIMITATION OF THE STUDY

For the purpose of this study, the banks inter-branch accounting system as contained in the “Operations manual” of the bank operations department of the central bank of Nigeria, first bank of Nigeria, first bank of Nigeria and united bank of Africa, will be discussed.

Similar reference will be draw from the outcome of the various workshops recently organized by the banks on the subject matter.

Further reference will also be made on the repeat various committee set up on the same subject matter.

Discussion will therefore center on the accounting records, procedures, computer appellations of various operational guidelines.

However, it  is pertinent to mention that because of the schedule nature of the banks operation documents that could have aided this study.

 

  • THE FOLLOWING TERMS ARE DEFINED AS USED IS THE STUDY.



  1. MESSAGE OF VALUE: This is an authenticated telex message that conveys transaction value (in word and figures), transaction dates, transactions purpose (expenditure or transfer of funds transaction mode) credit or debit and both the sending and receiving branches. Message of value usually sent by the tele printer or by courier air bags in some banks.

  2. TELEX CODE: This is coded numbering system that is assigned on different telex message to confirm the geniuses of such message telex message of value are usually decoded and equally subjected to other security texts before actions are commenced on the m.



  • SIGNATURE BOOKLET: It is a hand booklet maintained in respect of authorizing officers in both the branches head offices who authorized both telex message and entries into the accounts.



  1. ENTRIES: This is the practical application if accounting principles of debit and credit in the various books of accounts maintained in the branches head offices,

  2. STATEMENT OF ACCOUNT CURRENT (SAC): This is a statement of account prepared on daily basis in very branch and which carries a summary of all the days transaction with its details and balance. It is control measure, which is usually sent by branch controller to the head office as an advance copy of the days brought form.

  3. ACCOUNTS CURRENT “PERSONAL/IMPERSONAL”: These are designated account in to which entries relating to specific transaction are made. For instance, where as the accounts current personal takes charge of other commercial banks and merchant banks credit/debit balances to their head office the account current impersonal is maintained for all other transactions including inter-branch transfer of funds or expenditure, inter-branch settlement of medical bills, inter-branch transfer 4 of proceeds of cheques.



  • ITEMS: Items relate to all transactions that require raising of telex message and eventual entries. Such items include transfer payments shortages etc.

  • TRANSFER OF FUNDS: This is in relation to with the banks. Transfer of funds can be divided into the following categories:-



  1. transfer from branches to branches.

  2. Transfer from branches to head office

  3. Transfer from branches to branches

  4. RECONCILIATION: This is a periodic exercise carried out by the head office on the branches on one hand and by the branches on the other head office on the hand. It is usually targeted at eliminating most out and standing item in the various account and ascertaining the problem surrounding the long outstanding item.

  5. A VOTE A: Vote is a particular head or subhead of expenditure or other authorized account for which provision has been made for the disbursement of funds.


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