CHAPTER ONE
1.0 INTRODUCTION
The type of accounting information required by any business organization depends on the nature and operations depend on the nature and operations of the business enterprise. The nature of accounting system in a manufacturing industry hence the banking industry has its own accounting system to cover its banking operations while other industries like manufacturing companies have different accounting systems to take care of their various operations. For every community bank like the Ogui Urban community bank Nig. Ltd Enugu that engages in monetary transactions there is an established accounting system such an accounting system is a set of accounting procedures standards and convention designed for recording analyzing presenting and communicating accounting information required by the management investor shares holders and supervisory agencies of the banks. The important of this accounting system is that forms that basis for valid assessment decision making and control of the operations of the banks. This project specifically this to present the accounting system for community banking operations using Ogui Urban community bank Ltd. Enugu as a case study. The accounting system of a community bank covers the following major aspects of accounting. 1. Financial accounting 2. Management accounting. Accounting which is defined by the American institute of corporate as the act of recoding classifying and summarizing in a systematic manner and in terms of money transactions and events which are in part at least of a financial character and interpreting the results therefore. In community banking industry financial accounting primarily focuses on information for external use of by the investors shareholders depositors and supervisory agencies such as the national board for Community Banks and Central Banks of Nigeria.
The financial reports containing such information include the balance sheet and profit and loss accounts. Management accounting on the other hand provides information required by management for the internal decision making an control. Management accounting provides information that will aid managers in carrying out the five basic duties viz. 1. Planning: Deciding what objectives to pursue during a future time period and what to do in order to achieve those objectives. 2. Controlling: Measuring performance against objectives determining causes of deviations and taking corrective actions where necessary 3. Organizing: Grouping activities organizing and providing the authority to carryout the activities. 4. Staffing: Determining human resources requirement resulting selecting training and development of human resources. 5. Motivating: Establishment a system of rewards to encouraging optimum performance. In order to ensure that transactions are recorded classified and summarized properly the records for each of these accounting activities must be reviewed regularly. The aspect of accounting that is concerned with review of accounting records is referred to as auditing. An additional function of acid citing is to ensure that the accounting and operating polices and procedures are properly and consistently applied the two aspects of auditing operation in community banking are he internal auditing and the external auditing .
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