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# CHAPTER 2 DEPOSITS

## 1. Information of Tn companys Current account in 7/2013: Million Dong

Date 30-06-13 02-07-13 09-07-13 14-07-13 16-07-13 24-07-13 27-07-13 31-07-13 Balance 150 720 850 900 530 650 830
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Required: Calculate and record Julys interest expense of Tan A company, given that IR expense is calculated at the end of a month, IR = 0.3% per month. 2. 25/09/X0, Ms Dung wants to withdraw money in cash from a term deposit, principal: VND 100 m, 6 months, IR: 0.8% per month, paid IR at maturity,

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deposited at 25/01/X0.Non-term IR = 0.3%/per month. Suppose that the bank has accrued all IR expense.

3. 25/10/X0 at Bank X: a. Mr. An opens a demand deposit account in VND, and deposits VND 200 m in cash. b. Ms Hai withdraws principal and IR of a saving account, term of 9 months, paid IR at maturity, IR 0.9% per month, deposited 3.5 months ago, principal: VND 100m. c. Ms Hop withdraws saving deposit by cash, term of 6 months, principal: VND 100m paid IR at maturity, IR 0.7% per month, deposited 2.5 months ago. Prepare journal entries for above transactions Suppose that: Non term IR for demand deposit: 0.3% per month The bank uses accrual accounting and the period is monthly.

4. Others: a. 1/5 ATC bank approves a lump-sum lending for City Group 250m, 9 months, I.R = 1%/month, pay principal and I.R quarterly and principal is paid equally per interval. On 4/6 the bank makes disbursement to City Group. 4/9 City group pay principal and I.R 4/12 City Group can pay principal only
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4/3 City Group pays I.R of last quarter but cannot pay debt and I.R of this interval. After grace period, ATC bank move loan to G2 16/3 City group comes back and pay all the debt. b. On 1/2 Vietcombank Ha Noi approves a lump sum loan for customer A 300m VND, 6 months, IR: 2%/ per month. 3 month interest payment interval. Principal paid at maturity. Collateral is a car: 500m VND. - 1/5: Customer A cant pay debt. After grace period, the bank moves the loan to criticized loan. - 1/6: Customer comes and pays IR - 1/9: Customer pays all debt. Prepare journal entries for transactions Assume: The bank has accrued all IR receivable Overdue IR = 150% undue IR rate

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CHAPTER 3 LOANS ACCOUNTING 5. On 05/10/X0 at Vietinbank Hon Kim a. Ms An has been approved for a lump sum lending: VND 150 m to buy a new car pledged by 1 savings certificateVND200m, all procedures are done, disbursement by cash. b. Company B makes a repayment (principal: 100, Loan interest 10, in which 9 is accrued), collateral is a real estate VND 500m. c. Customer C has a short term loan (9 months), 3 months interest payment interval, today is the second payment, but the interest payment is not paid. Vietinbank allows adjusting the IR payment interval but still moves the loan to the notable group. Loan principal: 500; IR: 1.2%/month, 2 month interest has been recorded in accrued interest receivable. Prepare journal entries for today transactions. 6. Information: - On 10/01/X0, Vietinbank Hi Phng approves a lump sum loan for Hai Anh Ltd 600, 9 months, IR 1,3%/month, interval for IR and principal paid is 3 month and principal is paid equally per interval. Collateral is a real estate certificate and pledged to the bank: 1.500 - On 20/02/X0 Hai Anh takes disbursement: Transfer to its partner opening account at Vietinbank Vinh 300 Make payment to a seller having account at Vietcombank HaiPhong 250m The rest is deposited in demand deposit account

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- On 20/05/X0, Hai Anh Ltd proposes a Payment Order to debit its account to pay principal and interest. - On 20/08/X0, Hai Anh Ltd can only pay principal by cash. - After grace period (10 days), Vietinbank moves Loan to Criticized group. - On 05/09/X0 Hai Anh Ltd receives from Anh Hoa Ltd (having account at Vietinbank Dong Da Ha Noi) VND50m. The bank automatically debits Hai Anhs account to collect money. - On 20/11/X0, Hai Anh makes payment for the all the debt left through account. Prepare journal entries for above transactions

7. 15/5 Bank ABC disburses 100m to Hoang Gia Company, 1 year, IR: 1%/month, pay principal and IR quarterly and principal is paid equally per interval. On 15/8, the company cant pay debt. After grace period, the bank moves the loan to criticized group. On 15/9, the company can pay back debt. Prepare journal entries for above transactions Assume The bank has accrued all IR receivable Overdue IR rate = 150% Undue IR rate

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8. ANZ bank classifies loans and sets up provision for the 1st quarter: Million ng Collectable value of collateral (on Group classification Loan outstanding balance sheet loan). No collateral for all off balance sheet commitment. Total + Group 1 + Group 2 + Group 3 + Group 4 + Group 5 6.830.500 94,3% 2,5% 1,9% 0,8% 0,5% 5.799.019 136.632 84.407 27.322 23.907

- Specific provisions outstanding for on balance sheet loans: 30.315 m, - General provisions outstanding for on balance sheet loans: 38.500 m Prepare journal entries for today transactions. 9. On 15/04/2008 at ABC Bank Customer Ds loan 100m is now recorded in group 5. Assume Customer and the bank can sell the pledged asset to collect debt: 75m. This pledged asset is recorded at 110m in Account 994. The bank has to use specific provision 20m; the general provision is used for the rest.

## CHAPTER 4 CASH AND NON CASH PAYMENT

10. On 14 Oct 2013, at VCB Thanh Xuan: a. The bank receives from HTC Company a Deposit Slip VND 140m, the current balance of this companys DDP is 130m. b. The bank receives from HTC Company a withdrawal Slip current balance of this companys DDP is 130m. c. The bank receives from HTC Company a withdrawal Slip VND 140m, the current balance of this companys DDP is 200m. d. The bank receives from HAC Company a Deposit Slip VND 140m, but cash counted is 139m. e. ABC company comes to the bank to pay interest of 10 million on loan at maturity, accrued interest receivable of the company is 12 m. f. Mr. X pays standard loan: principal: 100m VND, interest: 4m VND. Principal is paid by DDP and interest is paid by cash. g. 3 months ago the bank received from Mr. A a deposit slip 300m, IR for DDP account is 2%/year. Today, the bank receives a withdraw slip from Mr. A 280m h. Miss Hiep came to Vietcombank and made a withdrawal 100 million dong from her boyfriends account for her wedding. i. Ms Hoa has a saving account of 100m with the period of 3 months and deposited on 30/7/2013. Term interest was 12% per year. Non-term interest was 2% per year. Today, she wants to withdraw all the money from her saving account. Lending interest is 15% per year if the customer wants to pledge her saving certificate. Which option is suitable in this situation? j. Customer A comes to VCB to pay L/C fee of 1 million
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## VND 140m, the

k. At the end of the day, cash overage is 2m l. 2 days ago, cash shortage was 1m, the reason was not verified. Today, the bank decides that Cashier Thanh, who was careless in cash counting, has to recoup by cash. At the end of the day, the bank receives the compensation. m. The bank can not verify the reason of cash shortage on 1 week ago (5m), hence it decides to use other expense to compensate. n. At the end of transaction day, the bank found out a shortage of 300.000VND. The reason was not verified. o. At the end of 23/10/X, cash counted is 100m but cash on hand account is 95m. The reason is not verified. p. At the end , cash shortage is 10m. Bank finds that Quach was the one making mistake. Then Quach agree to compensate 5m by cash immediately and the rest is deducted to his salary at the end of month. q. Today, Mrs. Hoa goes to bank to deposit money into Saving deposit account 200m, the teller counts 200m but credit only 150m. At the end of the day, bank finds cash overage is 50m.

11. a. Ms Tum comes to Farm bank to pay interest for a loan of 50m, 9 months, interest rate 12%/year, 3 months interest payment interval. This is the second interest payment and pay by cash. b. 1/10/X0 Ms An deposits 100mil for 3 months, IR=1%/month. 1/1/X0+1 Ms An comes and withdraws 50mil. Bank pays by cash c. Vietcombank collects loans of \$50 mil from ABC Company. d. In the end of the transaction day, Mrs Phuong found out a shortage of 10.000 vnd, her supervisor forced her to make up this shortage, cash payment can be delayed.
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e. On 15/10/X0, at ACB Hoan Kiem, Mr.Tuan has been approved for a lump sum lending: 900 m VND to buy a house, disbursement by cash. f. On 16 October, customer A makes a payment of principal and interest (principal: 500. Loan interest: 50) by cash. 12. Non cash payment: 1. At BIDV Ha Thanh, Receives from Hanoi Textile company: a. Payment order 130m, pay to Bac Giang Textile, having account at BIDV Bac Ninh. b. Payment order 150m, payee is PJ company at Vietinbank Dong Da. c. Payment order 150m, payee is PJS company at Vietinbank - Thanh Hoa province. 2. Mr. X transfers 30 million VND from his account in Vietcombank HN to Ms. Ys account in Agribank Ninh Binh. Bank fee is 30.000VND (not included VAT). Assume that all the payments are debited from Mr.Xs account. Prepare journal entries at VCB HN and Agribank Ninh Binh. 3. Mrs Hoa makes payment order for her electricity bill from her account at BIDV Ha Noi to Ha Noi electricity company account at VCB Ha Noi. Prepare journal entry at payers bank. 4. At Vietcombank Thanh Cong, company A makes a payment order to pay salary for 3 staff, Mrs Ly, Mrs Chi and Mrs Tien who also have account at Vietcombank Thanh Cong. The salary for Mrs Ly is 15 million VND, Mrs Chi is 14.5 million VND and Mrs Tien is 16 million VND. 13. Receive ongoing remittance order from other branches: a. Credit payment order: payee is Jet Company 500m. b. Credit payment order: payee is Lemon Company 400m, the bank collects overdue loan from this company (group 3) 200m.
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14. Receive ongoing remittance order from other banks at the same province: a. Credit payment order: payee is CHB Company 100m. b. Credit payment order: payee is Jet Company 300m.

15. KKO Company submits the following documents at HD Bank Hoan Kiem: a. A cheque 50m, drawer is GTD Ltd (account at Vietinbank Thanh Xuan) issued 10 days ago. b. A cheque 398m, drawer is GD Ltd (account at HD Bank Hoan Kiem) issued 29 days ago. c. Payment order 50m to certify a cheque amounted at 70 m d. Payment order 50m to certify a cheque amounted at 50 m e. Receive a payment order 70mil to certify a cheque amounted at 50mil f. After 35 days since the cheque was signed, KKO company brings a cheque of 100m to the bank to receive money from Company B having account at BIDV in the same city. What will HDBank do at that time? (Assume that there is no announcement of suspending from drawer). g. Balance of ABC Ltd companys DDP is 100ml. The customer makes a payment order 20ml to certify a cheque amounted at 20ml. What is the new balance of customers DDP? h. A cheque 50m, drawer is ABC Ltd (account at Viettinbank Tu Liem) issue 32days ago.

16. HD Bank Hoan Kiem: Receiving cheques from other banks a. A cheque 50m, payee is GTD Ltd (account at Vietinbank Thanh Xuan) issued 10 days ago, drawer is DTG Ltd. b. A cheque 398m, payee is GD Ltd (account at HD Bank Hoang Mai) issued 29 days ago, drawer is DG Ltd.
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17. HD Bank Hoan Kiem: Receiving transfer orders from other banks a. Transfer order from Vietbank Ba Dinh: 130m, payee: ABC company; drawer: Hoang Gia company. b. BIDV Da Nang sends a transfer order of 50m, payee: LTD company, drawer: VKH Ltd