Accounting Information Systems of Bank Asia Limited

-A Study on Bhatiary Branch, Chittagong

Submitted By:
Mohammad Tareq
Program: RMBA
Matric No: R- 181185
Major in Accounting & Information Systems

Department of Business Administration

Faculty of Business Studies
International Islamic University Chittagong
 Objectives of the Study
The main objective of the study is to evaluate accounting information
systems of Bank Asia Ltd. with special reference to Bhatiary Branch,
Chittagong.
The specific objectives of the study are as follows:
 To discuss about Accounting Information System (AIS).
 To explore Accounting Information System AIS of Bank Asia
Limited.
 To identify problems regarding Accounting Information System
AIS & to recommend some suggestions.
 Scope of the Study
Bank Asia Ltd. Bhatiary Branch managing procedures, working systems and
environments which are very helpful to know & to increase our knowledge & to
get more information and data. The AIS (Accounting Information System) section
of Bank Asia Ltd. Bhatiary Branch is very rich that's why I was able to collect the
required books, required materials and the Internet facilities. The study is on
Accounting Information System organized at Bank Asia Ltd. Bhatiary Branch to
be familiar with the genuine life situation of overall activities of accounting
department. Since I worked in Bank Asia Limited, Bhatiary Branch, Chittagong,
this paved me the way to get myself familiarized with banking environment,
especially with the AIS and it helped me a lot to gain practical knowledge about
the AIS sector. I hope that I will be capable of doing these types of jobs in future.
 Methodology of the Study
Sources of Data:
There are two types of sources of data which are stated below:
Data Analysis
i) Primary Sources In order to analyze, processing of raw data is very much
• Practical work desk. significant. In this stage, mainly data is being processed and
• Informal discussion with Bank Asia Personnel. analyzed for the study. Without processing raw data, it is hard to

• Face to face conversation with officers. analyze the raw data. After processing, it is needed to present data

• Direct observation of banking activities. for analysis in an appropriate way. All the collected data (primary
and secondary) will be processed and analyzed chronologically.
ii) Secondary Sources
After conducting the research work, the findings will be
• Website of Bank Asia Limited.
processed with the help of some latest computer such as MS.
• Annual reports.
Word, MS Excel has been used to present and analyze the data.
• Prospectus, unpublished data.
• Different brochures and newsletter.
 AIS-the Concept

Strateg
y

AI
S
Organizational Information
Culture Technology
 Components of AIS
 People: The system users.

 Procedures: Methods for retrieving & processing data.

 Data: Information pertinent to the organization’s business practice.

 Software: Computer programs used to process data.

 Information Technology: Hardware used to operate the system.

 Internal Controls: Security measures to protect sensitive data.

Procedures of Accounting Information System

General Ledger Facilitation

Improving
System
Security
Distributed
Central theDiagram
flow
Issues
Object
Transaction
Information of work
Technology
Processing
Collection
Accounting Software Used in Bank Asia Ltd.
The Bank Asia Limited, Bhatiary Branch uses “Temonous T-24” for clean cash &
“Bank Ultimus” for day to day operations. These accounting software make their
task easy. It has a lot of advantages which are given below:
 Easy to operate
 Functions are easy
 Make the task faster
 It operates every operations smoothly
 It also helpful for serve the customers
 Reduce the manual task
 Reduce the paper documentation
 Easy to deal with Head Office & Bangladesh Bank
 Functions of the Accounts Departments
The daily functions of an accountant involves:

 Position transfer from one account to another

account The periodical functions of an accountant involves:

 Daily position
 Preparing of the supplementary
 Daily resources position
 Posting of various transactions in the computer
that occurs throughout the day  List of all transaction in a day

 Maintain income & expenditure  Cash Book

 General Ledger

 Daily & Weekly statement of affairs

 Statement of the advance sector corporation.

 Maintenance of computer based Transactions in Bank Asia Limited

Software Base: They have some activities that are

maintained through software. Those are given below:
 Entry of account opening information
 Profit distribution
 Collection of deposit Web Base: They have some activities that are
maintained through web. Those are given below:
 Payment of salary
 Online cash transfer
 Internal expenses listing
 Payment of cash
 Investment activities listing etc.
 Collection of cash
 Branch to branch internal transaction etc.
Reports of Accounts Departments
 HO(Head Office)

 Statement (Extract, Affairs, Supplementary)

 Daily cash Book

 General Ledger Income Vouchers

 General Ledger Expenditure Voucher

 Statement of Affairs

 Balance Sheet

 Income Statement
Financial Statement prepared in Bank Asia Limited
 Statement of Financial Position/Balance Sheet- reports on a companies’
asset, liabilities and ownership equity at a given point in time.

 Statement of Comprehensive Income/Profit & Loss Account- reports on a

company’s income, expenses profits over a period of time.

 Statements of Cash Flows- reports on a company’s cash flow activities,

particularly its operating, investing and financial activities.

 Statement of Changes in Equity-explain the changes of the companies’

equity throughout the reporting period.
 Summary of the Findings
 Bank Asia Ltd., Bhatiary Branch applies software ‘Temonous T-24’ for automated
services of accounting which isn’t updated.
 Total deposit amount of Bank Asia Limited is in up & down trend which is not
satisfactory.
 Bank Asia Ltd. doesn’t follow eight BAS rules such as: BAS no. 2, Inventories,
Consolidated Financial Statement BAS-27, Agriculture-41 etc.
 Earnings per share of Bank Asia Limited is in up & down trend which is not
satisfactory.
 Import export section of Bank Asia Limited has been drastically decreased in 2018.
 Due to economic instability, Non-Resident Bangladeshis are not sending money in
proper way which decreasing remittance drastically.
 Burden ratio of Bank Asia Limited is increasing which is not good sign for Bank.
 Recommendations
 Bank Asia Ltd., Bhatiary Branch should spend more for the development of its IT infrastructure and
maintenance of its Accounting system with inauguration of latest banking software/Enterprise
Application Software As for the bank’s capability, Bank Asia Limited
 Bank Asia should formulate attractive deposit rate which will attract people to deposit their money on
bank.
 Bank Asia Ltd. should follow BAS rules to perform the operation easily.
 Bank Asia Ltd. should grow it’s revenue to maintain the earnings per share. They can increase
deposit-investment volume, ramp up the charges or implement a combination of both.
 Export-import growth is depended on country’s economic growth. Govt. system can increase the
growth rate of export-import section.
 Govt. & policy makers should make policies in favor of non-resident Bangladeshis & create
sufficient, capable and reliable infrastructure so that they can feel safe to send money via legal ways.
 Bank Asia Ltd. should observe the burden ratio because the lower the ratio, the better for the
organization.
 Conclusion
The topic of the report is to prepare an internship report on “Accounting
Practices and Financial Performances of Bank Asia Limited: A Study on
Bhatiary branch, Chittagong” for partial Fulfillment of my MBA course
requirement. But all of them intend to work for the welfare of the nation.
Banking sector already emerged as an important vehicle for business. It
has no doubt that as a developing country we need to more focus to
strength our banking sector. As like other local banks, Bank Asia Limited
is not different from them. Bank Asia Limited is a highly potential bank.