ACCOUNTS DEPARTMENT
It is said that accounts department is the backbone of the bank. It plays a vital role in performing different banking functions. The accounts department at UBL Hussain Agahi branch is performing its function manually. Different books of accounts relating with other departments are maintained here. With the help of these books of accounts, accountant prepares monthly, quarterly, semi-annually and yearly financial statements.
The working in accounts department mainly depends upon voucher system. For each and every transaction-taking place in the bank vouchers are prepared and through these voucher contra entries are passed under different heads.
FUNCTIONS OF ACCOUNTS DEPARTMENT
The accounts department performs the following functions:
(a) To prepare and maintain the vouchers.
(b) To maintain and update the ledgers for term deposits.
(c) To update general ledger.
(d) To prepare different periods statements.
Vouchers
Each and every transaction in the bank is made through vouchers; the final place is accounts department for recording these vouchers. Officer in the accounts departments arranges these vouchers according to heads of accounts. These vouchers are of two types:
1. Debit Vouchers 2. Credit Vouchers
These two vouchers are again classified into three following types of vouchers:
I. Cash Voucher II. Clearing Voucher III. Transfer Voucher
All the daily transaction in cash, transfer and clearing is done through these vouchers. A
sheet is prepared on which all the vouchers, passed during any one working day are consolidated and summarized. This sheet is called supplementary sheet. It provides help in preparing Cash Book.
There are two types of supplementary sheets:
Debit Supplementary Sheet:
In which all debit Cash Voucher, Clearing Voucher, Transfer Voucher are included.
Credit Supplementary Sheet:
In which all credit Cash Voucher, Clearing Voucher, Transfer Voucher are included.
Cash Book
It is maintained to keep the record of daily receipts and daily paid vouchers. Cashbook is consisted on the opening balance and the closing balance of the day. For correct balance of the cash book there is a need to arrange all the vouchers.
Ledger For Term Deposits
One of the functions of accounts department is to maintain and update the term deposit ledgers and books manually. Term deposit receipt or TDR ledger is updated after every month for estimation of profit on customer accounts. Accountant has to prepare different ledger for all schemes of term deposit. With the help of TDR the accountant prepares provisional ledger/Summary ledger and also statement of provisional expenses. The profit after every six-month will be the expense of the branch.
Updating General Ledger
When vouchers are recorded in cashbook then the balance of each head of account is posted to its ledger account. There are two main heads of the general ledgers, Income account &
Expenditure account. All the accounts fall under one of these two main heads. Separate ledger register is maintained for every head of account. In UBL all the daily transactions in deposits, cash, clearing, transfer remittance, foreign exchange; advances are performed through these daily ledgers. Accounts department Maintains and prepares the following ledgers and books of accounts:
I. Daily General Ledger Expenses
II. Daily General Ledger Incomes/Receipts III. Monthly General Ledger Assets
IV. Monthly General Ledger Liability V. Daily General Ledger Zonal Expenses VI. Daily General Ledger Inspection expenses.
VII. Daily General Ledger Regional Expenses VIII. Daily General Ledger Audit Expenses
The format of the entire above ledger is approximately same. General ledger tells about A/C No., description, previous Balance, Dr. amount, Cr. amount and running balance.
Preparation of Different Statements Accounts department prepares these statements,
a) Statement of Affairs
b) Statement of provisional Income c) Statement of provisional Expenses d) Statement of Head office A/C e) Balance confirmation Book/Report f)Transfer Book
Statement of affairs is prepared yearly, consisting on the details about assets and liabilities of the branch. This statement provides assistance in budgeting about branch. Statement of provisional Income and expense is prepared monthly. Statement of account and balance confirmation is sent to accounts holders.
LOCKERS
UBL is also providing lockers facilities to its customers. The account department also maintains the record about lockers. The basic purpose of locker is to provide safe custody to client’s valuable ornaments, jewelry or documents. Almost in all branches, Lockers are available in different sizes at different rates. For availing this opportunity, customer has to open his account in the same branch/bank.
Locker Operating Procedure:
Bank provides an application form to the applicant who needs to operate a locker in the
branch.
This application form contains all rules and regulation regarding to obtain a locker. Specimen signature card is also filled in signed by the applicant. Bank assigns a password to their customer for secrecy. Each locker has duplicate keys. One (master) key is kept by the bank, and the other by the customer. In case of opening any locker, first of all master key is applied and then the customer key. If the locker has been obtained jointly then at the time of the opening, the person signed the application form, should be presented there otherwise, the bank will not allow to operate the locker. Bank officer has to maintain the following register for record keeping purposes of locker.
I. Locker Register II. Operation Register III. Key Deposit Register
Safe deposit locker fee is recovered in advance or at the start of the year, half-year or quarterly.
Types of Locker
There are basically three types of locker at UBL that are as under:
TYPES OF LOCKERS
RATES OF LOCKERS Per Annum
Small Rs. 1200
Medium Rs. 1800
Large Rs. 3000
The key deposit fee is Rs. 600. Per locker and it is refundable at the time of closing an account the breaking charges are Rs. 500 per locker and it is also refundable at the time of closing of account, provided there is no breaking.