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SHINNING STARS

"Year end is approaching - Keep calm and carry on accounting"

Project: FINANCIAL ACCOUNTINGSubmitted to: Ms Mehnaz Khan


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Appendix

1: Acknowledgement . . . . . . . . . . . . . . . . . . . . . . . . Page 3

2: Accounting definition . . . . . . . . . . . . . . . . . . . . Page 4

3:Accounting Equation. . . . . . . . . . . . . . . . . . . . . . Page 5

4: Accounting cycle. . . . . . . . . . . . . . . . . . . . . . . . . . Page 5

5: Manager Information . . . . . . . . . . . . . . . . . . . . . Page 11

6: Questionnaire . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 12


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ACKNOWLEDGEMENT

DEAR ALLAH, thank you for blessing us with the gift of knowledge to celebrate your

glory with love and devotion, perhaps this is the modest way for us to thank.

Ms Mehnaz khan our respectable at Bahria University, thanks for being with us in all difficult

and hard times. We really thank to her for help and guidance. Due to her co-operation we

are able to do this project in more decent and quintessence way. We are also very much

thankful to our parents for their co-operation in all aspects of life.

Also thanks to our friends for encouraging us in difficult time, and supporting us

whenever we need them, AND also thanks to NAEEM KHALID to help us to get the

accounting information of mcb. Thank You.

In last, we pray to Almighty that loves listening to our prayers, please accept this humble

thank from us with gratitude and devotion.

Thank You !


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Accounting

Accounting is the art of, classifying and summarizing in asignificant manner. And in terms of money, transaction and events

which are, in part of at least, of a financial character, and interpreting

result thereof.


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Accounting equation:The expression of

Equality of entity assets with the claims

Against them is referred to as Accounting cycle.


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Accounting cycle:


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Source document:A source document is the document

which is made for recording the clinical and as well asaccounting data in it for preparation of journal. The data is

usually entered in the case report form.

Journal:The book in which transactions are first to be

recorded chronologically together with its short description is

called journal. It is also called book of original entry or

primary entry or preliminary entry.


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Ledger:The book in which all the transactions of the

business concern are finally recorded in the concerned

accounts in a summarized and classified form is called ledger.


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Trial balance:An informal accounting schedule or statement

that lists the ledger account balances at a point in time and

compares the total


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Adjustment:At the end of accounting period when final

accounts prepared, some items of revenue and expenses require

adjustment e.g. outstanding expenses, prepaid expenses etc. Entries are

necessary to record these adjustments and are known adjustments

because through adjustments we can easily now what is over actualprofit or loss .


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Closing accounts and stock valuation:Stock

valuation is the method in which we calculate the theoretical values of

the companies.


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Final Account:

Thefinancial statements of anorganization made up at the

end of anaccounting period,usually thefiscal year.

For a manufacturer, the finalaccounts consist of (1)manufacturing

account,(2)trading account,(3)profit andlossaccount,and (4) profit

and lossappropriation account.Acommercialcompany's final accounts

will include all of the above except themanufacturing account.Together, these accounts show thegross profit,net income,

anddistribution of net incomefigures of the company
http://www.businessdictionary.com/definition/financial-statement.htmlhttp://www.businessdictionary.com/definition/organization.htmlhttp://www.businessdictionary.com/definition/accounting-period.htmlhttp://www.businessdictionary.com/definition/fiscal-year.htmlhttp://www.businessdictionary.com/definition/accounts.htmlhttp://www.businessdictionary.com/definition/manufacturing-account.htmlhttp://www.businessdictionary.com/definition/manufacturing-account.htmlhttp://www.businessdictionary.com/definition/trading-account.htmlhttp://www.businessdictionary.com/definition/profit.htmlhttp://www.businessdictionary.com/definition/capital-gain-loss-holding-period.htmlhttp://www.businessdictionary.com/definition/account.htmlhttp://www.businessdictionary.com/definition/appropriation-account.htmlhttp://www.businessdictionary.com/definition/commercial.htmlhttp://www.businessdictionary.com/definition/company.htmlhttp://www.businessdictionary.com/definition/manufacturer.htmlhttp://www.businessdictionary.com/definition/gross-profit.htmlhttp://www.businessdictionary.com/definition/net-income.htmlhttp://www.businessdictionary.com/definition/distribution.htmlhttp://www.businessdictionary.com/definition/figure.htmlhttp://www.businessdictionary.com/definition/figure.htmlhttp://www.businessdictionary.com/definition/distribution.htmlhttp://www.businessdictionary.com/definition/net-income.htmlhttp://www.businessdictionary.com/definition/gross-profit.htmlhttp://www.businessdictionary.com/definition/manufacturer.htmlhttp://www.businessdictionary.com/definition/company.htmlhttp://www.businessdictionary.com/definition/commercial.htmlhttp://www.businessdictionary.com/definition/appropriation-account.htmlhttp://www.businessdictionary.com/definition/account.htmlhttp://www.businessdictionary.com/definition/capital-gain-loss-holding-period.htmlhttp://www.businessdictionary.com/definition/profit.htmlhttp://www.businessdictionary.com/definition/trading-account.htmlhttp://www.businessdictionary.com/definition/manufacturing-account.htmlhttp://www.businessdictionary.com/definition/manufacturing-account.htmlhttp://www.businessdictionary.com/definition/accounts.htmlhttp://www.businessdictionary.com/definition/fiscal-year.htmlhttp://www.businessdictionary.com/definition/accounting-period.htmlhttp://www.businessdictionary.com/definition/organization.htmlhttp://www.businessdictionary.com/definition/financial-statement.html


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Balance sheet:It is the statement of asset, liabilities and ownersequity which shows the financial position of the business on a particular

date. It is called position statement, and statement of financial condition.


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.CASH FLOW STATEMENT

Cash Flow ANNUAL mcb

Operating Investing Financing (M/GBP)

FY 2010FY 2011-50050100

67

-34

-24

All Values in Millions GBP (except Per Share) FY 2011 FY 201

Period End Date 6/30/2011 6/30/201

Cash From Operating Activities

+ Net Income 5.30 22.1

+ Depreciation & Amortization 27.70 28.6

+ Other Non-Cash Adjustments -1.60 9.1

+ Changes in Non-Cash Capital -8.40 7.2

Cash From Operations 23.00 67.0

Cash From Investing Activities

+ Disposal of Fixed Assets 1.20 0.2

+ Capital Expenditures -24.10 -24.2

+ Increase in Investments 0.00 0.0

+ Decrease in Investments 0.00 0.0

+ Other Investing Activities -3.80 -9.9
http://www.bloomberg.com/quote/MCB:LN/cash-flow#fa_annualhttp://www.bloomberg.com/quote/MCB:LN/cash-flow#fa_annualhttp://www.bloomberg.com/quote/MCB:LN/cash-flow#fa_annualhttp://www.bloomberg.com/quote/MCB:LN/cash-flow#fa_annual


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Cash From Investing Activities -26.70 -33.9

Cash from Financing Activities

+ Dividends Paid -8.70 -11.4

+ Change in Short-Term Borrowings 0.00 0.0

+ Increase in Long-Term Borrowings 55.30 5.5

+ Decrease in Long-term Borrowings -34.20 -16.9

+ Increase in Capital Stocks 0.10 0.3

+ Decrease in Capital Stocks -1.30 -1.4

+ Other Financing Activities -3.80 0.0

Cash from Financing Activities 7.40 -23.9

Net Changes in Cash 3.70 9.2


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Manager information:

NAEEM KHALID

85-EAST,kamran centr e,f-block,blue area

ISLAMBAD.

Telephone #051-2802314

Mobile #0333-5104524

[email protected]


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Designation:vice president

Supervision:

Naeem Khalidhas prolonged, sustained andboundless experience of more than 10 years both national and

international levels in the field of Accounting

Questionnaire

Q1.Which segment do you use for the Book keeping?

Q2.Are the software of book keeping the same as we study in ourcourse/book?

Q3.who keeps a check between physical cash and records?


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Q4.Dur ing audi t which is the most important account which getsmore audit team focus/attenti on?

Q5.Which accounting system you foll ow?

Q6.Which accounting system you foll ow?

Q7.What is the tenure of your accounting period? Why?

Q8.What is the ratio of manual and computer ized book keepingin your organization?

Q9.Do you keep any data backup if incase your computer f indsany problem or the data is erased?

Q10.Do you maintain the privacy of your accounting records?

Q11.Do you make a bank reconcil iation statement? I f you do

then how often you make them?

Q12.Which depreciation method you use whi le depreciating your

assets?

Q13.Do you depreciate them on there book value or fair value?

Q15.When often you conduct your audi t?

Q16.Which f irm you prefer to conduct audi t?

Q17.Do you maintain accounting equation separately?


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Q18 Do you have meetings with your counterparts in other

branches of MCB?If yes how often?

Q19.As a manager accounts how do you al locate the funds fordif ferent projects?

Q20.What method you use for the stock evaluation in yourorganization?


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Q1.Which software do you use for the Book keeping?

Ans: We are using SYMBOL instead of Quick book categorized

since 2008.. With the help of this new software even more users can

login in.

Q2.Are the software of book keeping the same as we study in our

course/book?

Ans: The procedures and methods that we follow are almost the same as

we have in the software like SYMBOL. In these kind of software we

record entries in journal which are automatically posted to ledger andafterwards in to trial balance etc.

Q3.who keeps a check between physical cash and records?

Ans: In banking) organizations like MCB the physical cash is

generally in the possession and supervision of branch manager and he

deals in all financial matters.

Q4.During audit which is the most important account which gets

more audit team focus/attention?

Ans: According to me each and every account is important. Because

auditors get in to each and every account and it check thoroughly. Every

account has its own importance and cannot be given the


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status of less important.

Q5.Which accounting system you follow?

Ans: We basically use double accounting system to record the entries.

Q6.Which accounting system you follow?

Ans: We follow matching principle for Book keeping.

Q7.What is the tenure of your accounting period? Why?

Ans: Our organization has a tenure from July 1stto June 31st.

Q8.What is the ratio of manual and computerized book keeping in

your organization?

Ans: We have a total computerized book keeping system. Because

manual book keeping system is far difficult to maintain and is lessreliable then the computerized book keeping system.

Q9.Do you keep any data backup if incase your computer finds any

problem or the data is erased?

Ans: Yes off course! We keep back up data. But in the CDs and keep

the CDs at a secure place. And only required and authorized people can

access the data in the CD.

Q10.Do you maintain the privacy of your accounting records?

Ans: Yes! We do keep our data secure with the help of passwords and

only the authorized the access to these passwords and restricted data.


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Q11.Do you make a bank reconciliation statement? If you do then

how often you make them?

Ans: Yes off course! We do make bank reconciliation statement but on

monthly as well as anually basis.

Q12.Which depreciation method you use while depreciating your

assets?

Ans: We depreciate our assets on the basis of reducing balance method.

Q13.Do you depreciate them on there book value or fair value?

Ans: We depreciate our assets on there book value instead of their fair

value.

Q15.When often you conduct your audit?

Ans: We conduct our audit on yearly basis and if required on semi-

annually basis.

Q16.Which firm you prefer to conduct audit?

Ans: We generally prefer to conduct audit from Ferguson Pakistan.

But we keeps on changing after 3year to avoid complications

Q17.Do you maintain accounting equation separately?

Ans:No! We dont maintain accounting equation separately


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Q18 Do you have meetings with your counterparts in other branches

of MCB?If yes how often?

Ans: Yes! We do have meetings with our counterpart in other cities

which are conducted weekly , quarterly and semi-annually

Q19.As a manager accounts how do you allocate the funds for

different projects?

Ans: We allocate the funds through issuing shares to general public at

stock exchange and by deducting interest on our customers accounts.

Q20.What method you use for the stock evaluation in yourorganization?

Ans: We practice perpetual inventory in which use First in first out

method (FIFO).

Conclusion:

From this interview we learned that accounts management practices like;

Soft wares usedConducting AuditAccounting SystemAccounting EquationMeeting with CounterpartsMethods for stock evaluationAllocation of fundsMethod of depreciationMethod of Bank reconciliation

In practical life are applicable in several organizations.


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References and Bibliography:Author:meigs &meigs

Year:2011

Book Name:financial accounting

Book Edition:15th

group shinning stars (2) accounting projects

Documents