Accounting for Banking - Syllabus

Course Overview and Structure

Embark on a profound academic exploration as you delve into the Accounting for Banking course (Accounting for Banking) within the distinguished Tribhuvan university's BBS department. Aligned with the 2013 Syllabus, this course (ACC 250) seamlessly merges theoretical frameworks with practical sessions, ensuring a comprehensive understanding of the subject. Rigorous assessment based on a 100 marks system, coupled with a challenging passing threshold of 35, propels students to strive for excellence, fostering a deeper grasp of the course content.

This 3 credit-hour journey unfolds as a holistic learning experience, bridging theory and application. Beyond theoretical comprehension, students actively engage in practical sessions, acquiring valuable skills for real-world scenarios. Immerse yourself in this well-structured course, where each element, from the course description to interactive sessions, is meticulously crafted to shape a well-rounded and insightful academic experience.


Course Objectives

The objectives of the course are to provide the students with the basic knowledge required to handle the accounting functions of banks. On completion of this course the students will be able to gain the knowledge of total banking accounting practices of the banks. The course further aims at providing knowledge required to analyze financial statements of banks.

Course Description

This course contains introduction, accounting for deposit, accounting for bills for collection, accounting for guarantee and margin deposit, letter of credit (LC), accounting for remittance, accounting for credit and advances, accounting for cash transactions, accounting for treasury management, banking technology products, concept of BASEL framework, anti money laundering (AML, accounting for decision making, accounting for control , preparation of financial statements, financial statements analysis.

Units

Key Topics

  • .NET and ASP.NET Frameworks
    IN-001

    Overview of .NET and ASP.NET frameworks including .NET, .NET Core, Mono, ASP.NET Web Forms, ASP.NET MVC, ASP.NET Web API, and ASP.NET Core.

  • .NET Architecture and Design Principles
    IN-002

    Fundamentals of .NET architecture and design principles that guide the development of .NET applications.

  • Compilation and Execution of .NET Applications
    IN-003

    How .NET applications are compiled and executed, including the roles of CLI, MSIL, and CLR.

  • .NET Core in Detail
    IN-004

    In-depth exploration of .NET Core, including its features, benefits, and use cases.

  • .NET CLI
    IN-005

    Using .NET CLI to build, run, test, and deploy .NET Core applications, including its commands and options.

  • Integrated Windows Authentication
    IN-006

    Authenticating users using their Windows login credentials.

  • Cookies
    IN-007

    Storing small pieces of data on a user's device to track their interactions with a web application.

  • File Handling
    IN-008

    Managing files on a web server, including uploading, downloading, and manipulating files.

Key Topics

  • Concept, Features, and Characteristics of Non-Profit Organizations
    AC-1

    This topic covers the definition, features, and characteristics of non-profit organizations, including their purpose, structure, and operations.

  • Accounting Procedures of Non-Profit Organizations
    AC-2

    This topic explores the accounting procedures specific to non-profit organizations, including the preparation of financial statements.

  • Receipt and Payment Account
    AC-3

    This topic explains the purpose and preparation of the Receipt and Payment Account, a financial statement unique to non-profit organizations.

  • Income and Expenditure Account
    AC-4

    This topic covers the preparation and analysis of the Income and Expenditure Account, a key financial statement for non-profit organizations.

  • Balance Sheet for Non-Profit Organizations
    AC-5

    This topic explains the preparation and interpretation of the Balance Sheet for non-profit organizations, highlighting its unique features and requirements.

  • Program Evaluation and Review Technique (PERT)
    AC-6

    This topic explains the Program Evaluation and Review Technique (PERT), a network planning method used to plan, organize, and coordinate tasks in a project.

Bills for collection: concept, types and necessity for banking business; Outward bills for collection (OBC): concept and types; Service charges and accounting records for OBC; Endorsement: meaning and accounting procedures; Procedures used in bills for collection; Inward bills for collection (IBC): concept and importance; Document required for IBC; Service charges and accounting records for inward bills for collection; Debit note and required reversal entry; Outgoing debit advice for uncollected or dishonored bills.

Concept, and types of guarantee deposit; Concept, needs and types of guarantee: Bid bond, Performance bond, Advance payment guarantee, Counter guarantee, Financial guarantee, Standby letter of credit, Bonded warehouse guarantee; Banker’s liabilities and customer’s liabilities toward guarantee issuance ; Accounting treatment of guarantee issue (voucher and ledger); Margin deposit: concept, process and evaluation; Service charges and accounting treatment.

Letter of credit: concept, needs and types of LC; Parties involved in LC; Documents in LC; Trade finance; International Chambers of Commerce and Universal Custom and Practices (UCP) for documenting credit; NRB regulations for LC; Accounting treatment.

Remittance: concept and importance; Services rendered by remittance; Types of remittance; Parties involved in remittance ; Demand draft, accounting for advice received and un-received demand draft; Account payee draft; Books of original entry for advice received and un-received; Telegraphic transfer and mail transfer; Branch reconciliation.

Credit creation; Concepts and importance of credit; Types of credit: Cash credit, Overdraft, Secured loan, Micro credit, and other loans: auto, home, credit card, education and social; Security: types and procedures/valuation of securities; Evaluation of feasibility study; Industry risk analysis and Business risk analysis (using six C’s of credit); Accounting treatment of different types of credit; Loan processing charges, interest and commission and their accounting treatment; Collection and recovery of loans method applied and accounting treatment; Credit risk management; Credit creation.

Receiving cashier’s counter cash book ; Paying cashier’s counter cash book; General cash books, day books and denomination books.

Concept of treasury management; Dimensions of treasury management; Market risk management; Liquidity management; Investment portfolio management; Foreign exchange risk management; Assets liability management ; Maintenance of agency ledger (NOSTRO and VOSTRO).

Key Topics

  • Memory Read
    BA-01

    Memory Read operation involves retrieving data from memory locations. It is a fundamental operation in microprocessor-based systems.

  • Memory Write
    BA-02

    Memory Write operation involves storing data in memory locations. It is a crucial operation in microprocessor-based systems.

  • I/O Read
    BA-03

    I/O Read operation involves retrieving data from input/output devices. It enables the microprocessor to interact with the external environment.

  • I/O Write
    BA-04

    I/O Write operation involves sending data to input/output devices. It enables the microprocessor to interact with the external environment.

  • Direct Memory Access
    BA-05

    Direct Memory Access (DMA) is a technique that allows peripheral devices to access system memory directly, reducing the microprocessor's workload.

  • Interrupt
    BA-06

    An interrupt is a signal to the microprocessor that an event has occurred, requiring immediate attention. It enables the microprocessor to handle asynchronous events.

  • Types of Interrupts
    BA-07

    There are different types of interrupts, including maskable and non-maskable interrupts, which vary in their priority and handling by the microprocessor.

Concept and importance; Principles of capital measurement and capital standard

Key Topics

  • System Requirements
    AN-001

    Introduction to system requirements, including traditional and contemporary methods for determining system requirements, requirements management tools, and requirements determination using agile methodologies.

  • System Process Requirements
    AN-002

    Introduction to system process requirements, including process modeling, data flow diagramming, and modeling logic with decision tables.

  • System Data Requirements
    AN-003

    Introduction to system data requirements, including conceptual data modeling, E-R modeling, and business rules, as well as the role of packaged conceptual data models and database patterns.

  • Elimination of Internal Bias
    AN-004

    Methods for identifying and eliminating internal bias in simulation models to improve accuracy and reliability.

Capital Budgeting: Project evaluation on the basis of Pay-back period, Net Present Value, Profitability Index and Internal Rate of Return; Cost Volume Profit Analysis for project evaluation.

General ledger: concept, needs and procedures of maintaining general ledgers; Comparison with commercial accounting; Daily trail balance: concept, needs and preparation and tools for control of general ledgers; Transaction list verification and operational procedures.

Key Topics

  • Java Fundamentals
    PR-101

    Introduction to Java architecture, buzzwords, and environment setup including Path and ClassPath variables. Understanding the basic structure of a Java program, compiling, and running Java programs.

  • Object-Oriented Programming
    PR-102

    Understanding classes, objects, and interfaces in Java. Topics include overloading, access privileges, inner classes, final and static modifiers, packages, inheritance, and overriding.

  • Exception Handling
    PR-103

    Handling exceptions in Java using try, catch, finally, throws, and throw keywords. Creating custom exception classes to handle errors and exceptions.

  • Concurrency
    PR-104

    Introduction to concurrency in Java, including thread states, writing multithreaded programs, thread properties, thread synchronization, and thread priorities.

  • File Input/Output
    PR-105

    Working with files in Java, including byte stream classes, character stream classes, random access files, and reading and writing objects.

Key Topics

  • File Concept
    FI-1

    Understanding the concept of a file and its importance in C programming.

  • File Operations
    FI-2

    Opening, closing, naming, and basic operations on files in C.

  • File Input/Output
    FI-3

    Reading data from and writing data to a file in C, including functions such as fgetc(), fputc(), fprintf(), and fscanf().

  • Random Access in Files
    FI-4

    Using functions ftell(), fseek(), and rewind() to access and manipulate file pointers in C.

  • Error Handling in Files
    FI-5

    Detecting and handling errors in file operations using feof() and ferror() functions in C.

  • Raw Input/Output
    FI-6

    Learning about raw input/output operations using functions such as fread() and fwrite().

  • Random Access to Files
    FI-7

    Understanding how to perform random access to files in C programming.

  • Cash Flow Ratios
    FI-8

    This topic covers various cash flow ratios used to analyze a bank's ability to generate cash, including interest coverage ratio and debt coverage ratio.

  • Assets Quality Ratios
    FI-9

    This topic explains various assets quality ratios used to analyze a bank's asset quality, including non-performing loans to total loans and loan loss reserves to gross loan.

  • Earnings Ratios
    FI-10

    This topic covers various earnings ratios used to analyze a bank's earnings performance, including net interest margin and non-funded income expenses as a percentage of total operating expenses.

  • Capital Adequacy Ratios
    FI-11

    This topic explains various capital adequacy ratios used to analyze a bank's capital adequacy, including capital fund as a percentage of risk-weighted assets.