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Accounting System In Micro Finance Banking

ABSTRACT

Every organization including bank registered under the Nigerian company law having statutory responsibility of profit and loss account together with statement of assets and liabilities at the end of its accounting period, to its members shareholders the public and other uses including the government accounting system means the system of recording financial transaction in an organization.

It could also be referred to as an internal control system in an organization depending on the nature of business undertaken by the organization monetary terms and this requires proper recording of receipts and payments of funds.

It is worthy to note here that any default in the accounting system of an organization could lead to business failure. In addition banks with the nature of its services dealing with money are expected to maintain any up to date record of its transaction with or on behalf of its customers the objectives of providing accounting information for decision making cannot be achieved if there is no adequate accounting system in place.

In the course of this research work the following problems will be considered.  The effects of inadequate accounting system in banking operation and more.

In order to do further justices to the matter that will raise in this work primary and secondary sources of information will be used samples size of the study will be determines using this Bowles rules questionnaires will be designed in such a way to solicit information both this management and consumers as to confirm answers to the research as to question listed down in chapter one data presentation and a detailed analysis of data collected from this research work will be carried out. In summary of findings, recommendations and conclusion into five chapters.

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TABLE OF CONTENT

CHAPTER ONE

Introduction                                                   

Background of the study                                     

Statement of problem                                               

Objectives of the study    

Research Questions         

Significant of the study    

Scope and Limitations of the Study 

CHAPTER TWO

Review of Related Literature        

Historical Background of the Evergreen Micro

Finance Bank Nigeria Limited         

2.2  Meaning of Accounting System     

2.3  Banking Operation in Evergreen Micro Finance

2.4  Uses of Accounting Information Providing      

2.5   Balance Sheet Structure of Evergreen Micro   

2.6  Benefits of Proper and Adequate Record Keeping

 Effect of Inadequate Accounting System               

CHAPTER THREE 

  • Research design and methodology                    

3.1  Sources of Data    

3.2  Population of the study

3.3  Sample Size Determination Technology

3.4  Location of Data                               

3.5  Method of Investigation                     

3.6  Data Treatment Technique                 

3.7  Validity and Reliability of Research Instrument    

Reference 

CHAPTER FOUR

  • Data presentation and analysis.                        

4.1  Analysis of Response to Questionnaire               

CHAPTER FIVE

Summary of findings, conclusion and Recommendation.

Summary of Findings                                  

Conclusion                                   

Recommendation                                 

Bibliography                                                     

CHAPTER ONE

INTRODUCTION

1.1  BACKGROUND OF THE STUDY

Accountancy embraces the installation of book-keeping and accounting systems, the writing up of account and the preparations of every kind of financial statement from the simplest receipts and payments of small club to the published accounts of large public companies.

It is one of the main work of the accountant in practice to provide client both large and small with necessary advice as to the most appropriate accounting system to in tall what will provide management with up-to date information.

According is always said to be the language of business. Every organization including bank registered under the Nigerian company law, having statutory responsibility f profit and loss account together with statement of the assets and liabilities at the end of its accounting period, to its members shareholders, the public and other users including the government.

Accounting system means the system of recording financial transactions in an organization. It could also be referred  as an internal control system in an organization depending on the nature of business undertaken by the organization.

This is because financial transactions are qualified in monetary terms and this requires proper recording of receipts and payment of funds. It is worthy to note here that any default in the accounting system of an organization could lead to business failure.

In addition, banks by virtue of nature of its services dealing with money are expected to maintain an-up-to-date record of its transactions with or on behalf of its customers.

However, in micro finance bank, this responsibility can be effectively discharged if there is an adequate system of account put in place for recording day to day transactions of the bank.

Besides, accounting is not only concerned with recording of transactions but also with the use to which the records are put, their analysis and interpretations for use in making decisions not only for the management usefulness but also to the members and would be investors, government agencies etc.

Recent researchers have shown that one of the main causes of indigenous business failure in the country is due to the failure to maintain proper accounting records. Therefore, these purposes can only be achieved in the light of good design and application of sound accounting system.

Thus, the scope of this research work is to make  appraisal of relevance and adequacy of accounting system in micro finance banking using “Evergreen micro finance bank Nigeria ltd as a cases study.

1.2  STATEMENT OF THE PROBLEM

Accounting being  a profession referred to as service activity and accounting  as often termed to be the language of business, therefore the importance  of accounting system in any organization cannot be overemphasized.

The objectives of providing accounting information for decision making cannot be achieve if there is no adequate accounting system in place. In the course of this research work, the following problems will be considered:

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