GROUP SHINNING STARS KHURRAM WAHEED BILAL NASEER WAQAS KHALID SADAM RAFAY MISBAH JAMEEL

Submitted to: Ms Mehnaz Khan Date: 22.05.2012

SHINNING STARS

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

Project: FINANCIAL ACCOUNTING Submitted to: Ms Mehnaz Khan

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

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 !

Accounting
Accounting is the art of, classifying and summarizing in a
significant manner. And in terms of money, transaction and events which are, in part of at least, of a financial character, and interpreting result thereof.

Accounting equation:
The expression of Equality of entity assets with the claims Against them is referred to as Accounting cycle.

Accounting cycle:

Source document:

A source document is the document which is made for recording the clinical and as well as accounting 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.

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.

Trial balance:
An informal accounting schedule or statement that lists the ledger account balances at a point in time and compares the total

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 actual profit or loss .

Closing accounts and stock valuation:

Stock valuation is the method in which we calculate the theoretical values of the companies.

Final Account:
The financial statements of an organization made up at the end of an accounting period, usually the fiscal year. For a manufacturer, the final accounts consist of (1) manufacturing account, (2) trading account, (3) profit and loss account, and (4) profit and loss appropriation account. A commercial company's final accounts will include all of the above except the manufacturing account. Together, these accounts show the gross profit, net income, and distribution of net income figures of the company

Balance sheet:
It is the statement of asset, liabilities and owners equity which shows the financial position of the business on a particular date. It is called position statement, and statement of financial condition.

CASH FLOW STATEMENT

ANNUAL

Cash Flow

67 -34 -24

mcb

Operating Investing Financing (M/GBP)

FY 2010FY 2011-50050100

All Values in Millions GBP (except Per Share) Period End Date Cash From Operating Activities + Net Income + Depreciation & Amortization + Other Non-Cash Adjustments + Changes in Non-Cash Capital Cash From Operations Cash From Investing Activities + Disposal of Fixed Assets + Capital Expenditures + Increase in Investments + Decrease in Investments + Other Investing Activities

FY 2011

FY 2010

6/30/2011 6/30/2010

5.30 27.70 -1.60 -8.40 23.00

22.10 28.60 9.10 7.20 67.00

1.20 -24.10 0.00 0.00 -3.80

0.20 -24.20 0.00 0.00 -9.90

Cash From Investing Activities Cash from Financing Activities + Dividends Paid + Change in Short-Term Borrowings + Increase in Long-Term Borrowings + Decrease in Long-term Borrowings + Increase in Capital Stocks + Decrease in Capital Stocks + Other Financing Activities Cash from Financing Activities Net Changes in Cash

-26.70

-33.90

-8.70 0.00 55.30 -34.20 0.10 -1.30 -3.80 7.40 3.70

-11.40 0.00 5.50 -16.90 0.30 -1.40 0.00 -23.90 9.20

Manager information:
NAEEM KHALID 85-EAST,kamran centre,f-block,blue area ISLAMBAD. Telephone # 051-2802314 Mobile # 0333-5104524 NAEEM.KHALID@MCB.COM.PK

Designation: vice president Supervision :

Naeem Khalid has prolonged, sustained and

boundless 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 our course/book? Q3.who keeps a check between physical cash and records?

 Q4.During audit which is the most important account which gets more audit team focus/attention? Q5.Which accounting system you follow? Q6.Which accounting system you follow? Q7.What is the tenure of your accounting period? Why? Q8.What is the ratio of manual and computerized book keeping in your organization? Q9.Do you keep any data backup if incase your computer finds any problem or the data is erased? Q10.Do you maintain the privacy of your accounting records? Q11.Do you make a bank reconciliation statement? If you do then how often you make them? Q12.Which depreciation method you use while depreciating your assets? Q13.Do you depreciate them on there book value or fair value? Q15.When often you conduct your audit? Q16.Which firm you prefer to conduct audit? Q17.Do you maintain accounting equation separately?

 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 allocate the funds for different projects? Q20.What method you use for the stock evaluation in your organization?

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 and afterwards 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

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 1st to 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 less reliable 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.

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 semiannually 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

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 your organization? 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 used Conducting Audit Accounting System Accounting Equation Meeting with Counterparts Methods for stock evaluation Allocation of funds Method of depreciation Method of Bank reconciliation

In practical life are applicable in several organizations.

References and Bibliography:

Author:meigs &meigs Year:2011 Book Name:financial accounting Book Edition:15th