Training
Training
NOVEMBER
27, 2021
FINFINE ETHIOPIA
Objectives of Accounting
Banks MFIs
Saving Withdrawal form Loan Disbursement Sheet [LDS]
Cash Deposit Form Cash Receipt Voucher
Cheque Petty Cash Payment Voucher
CPO Cash Payment Voucher
LMTS Application Internal Cash Receipt Voucher
Users of Account Information
General ledger;
Which shows the summary of all transactions of each
classification of Assets, Liabilities, Income and
Expense accounts
Asset
Expense Normal Debit Balances
Contingent Asset
Liabilities
Capital
Reserve(retain for future use.) Normal
Credit Balance
Income
Contingent Liability
Cont…
The accounts are arranged in the ledger in numerical
order. As a result, they can be located quickly.
The balance sheet accounts are usually listed first, in
the order of Assets, liabilities, and owner's equity.
Assets 100-199
Liabilities 200-299
Equities 300-399
Revenues 400-499
Expenses 500-699
Collecting and Analyzing Source Document
Liability
Capital
Income
Expense
Asset Accounts
It refers to the property owned or possessed by the
business.
Cash Account
Account Receivable
Fixed Asset
Intangible Asset
Other Proprieties
Asset Accounts Sub Groups
Acquired Properties
Account receivable
Replenish the Petty Cash for the month end date with the
following expense Birr 75 postage, Birr 25 Wage, Birr 35
Transport
Fixed Asset
What is Fixed Asset?
Why FA managed?
Premises
Motor Vehicle
Construction in progress
Maintenance in progress
Project in progress
Prepaid for Rent
Account Payable
Tax Payable
bill.)
Customer’s Deposit
LMTS Payable
It is 7% of basic salary
Graduate Cost Sharing Payable
This category shall be used to open and summarize
individual accounts to record percentage
deductions collected on the monthly basic salaries
of Bank's employees who have an agreement with
the appropriate governmental organ, since 1996
Ethiopian Calendar, for sharing the costs of staying
in governmental universities.
It is 10 % of basic salary
Capital
Paid up capital
Legal Reserve
Retained Earnings
Legal Reserve
This category shall be used to open and summarize legal
reserve contribution made on a yearly basis from the annual
business profit of the Bank according to the prevailing
directive of the NBE. This account is credited when the
legal reserve contributions are made on a yearly basis.
Retained Earning ;
Interest Income
Statement Charges
Commissions on CPO
Outward Remittances
Journal Entry:
Journal Entry
Journal Entry
Outward Remittances
This category shall be used to open and summarize
commissions charged from outward remittances.
Debit: Customer Account/ Cash ………..XXX
Credit: Commission from Outward Remittances ...XXX
Service Charge Collections on Salary
Payments
This category shall be used to open and summarize
commissions earned from service charge collections
on salary payments.
Journal Entry
Employee Salaries
Employee Benefit
Allowances
General Expense
Employee Salaries
Salaries Expense-Clerical
Salaries Expense-Non Clerical
Salaries Expense-Clerical
Journal Entry
Journal Entry
Debit : Wage………………………………………… 60
Debit : Transport …………………………………. 230
Credit: A/C / Cash/ ……………………………………………… 290
Cont….
Debit: Maintenance & Repair Furniture & Fittings ……....600
Credit: Customer A/C / Cash /CPO………………………………600
Debit: Telephones & Telex Expense ……....1000
Credit: CPO issued ………………….. ………………………………1000
Debit: Postage Expense………………………………….24
Debit: Wage……………………………....................... 30
Credit: Cash Teller………………………………………………………………………………54