Assignment on:

“Effectiveness and Efficiency of AIS in Jamuna Bank Limited:

Evidence from Bangladesh”
Course Code: ACC 4104
Course Title: Accounting Information System

Submitted To:

Mohammad Omar Faruq

Assistant Professor
Department of Accounting & Information Systems (AIS)
Jagannath University

Submitted By:

Md. Abdul Owadud

ID No: 170105847
Semester: 10th, Section: A
Department of Business Administration
Northern University Bangladesh

Date of Submission:
18 May 2020
1. Concepts of AIS in Jamuna Bank Limited:

Accounting Information System is one of the oldest and widely practice subject. Every bank requires
their own accounting system for smooth progress. In the book, Accounting Principles is given as,
“The accounting information system collects and processes transaction data and communicates
financial information to decision makers. It includes each of the steps in the accounting cycle also
includes the documents that provide evidence of the transactions and the records, trial balances,
worksheets and financial statements that result. An accounting system may be either manual or
computerized.” Online knowledge source, Business Dictionary defines accounting system as
“Organized set of manual and computerized accounting methods, procedures, and controls established
to gather, record, classify, analyze, summarize, interpret, and present accurate and timely financial
data for management decisions.” Accounting system of Jamuna Bank Ltd. has two major parts. First
one consists manual works which includes collecting, processing original or primary transaction data,
classifying them and maintaining those for future reference. And second part is computerized which
includes recording actual transactional data, analyzing, summarizing, interpreting and presenting
accurate information for decision making.

2. Accounting Information System in the Jamuna Bank Limited Activity:

From Their main function of banks generate very useful accounting information, both for the
bank management and for the customers. These function or operation, traditional for the banks,
confirmed by Act, produce of accounting information system, refers mainly to:

 Receiving deposits from their clients

 Issue and management of payment instruments and credit client

 Payments

 Fund transfers

 Transactions in the clients’ accounts.

The grouping of bank operation in active and passive depending on the path they are found in the
bank balance sheet, also underline the role and importance of AIS in the whole bank activities.
3. Sources of Jamuna Bank Limited AIS:

The original sources generation accounting information in bank function are:-

 Clients’ accounts, which can be available in bank accounts, current accounts. In these
accounts the payments instruments, card operations etc.

 Bank entity accounts, which refer especially to cash accounts, current accounts at the JBL
inter banking settlement accounts, income and spending accounts of the bank etc.

 Accounts outside the bank cash statements which are reflex into involved guarantee
accords, engagements unfolding in credit, guarantees related to credit claim from current
assets and followed afterwards.

 Bank computerized programs which manage accounting data and statistical data, bank
management etc.

4. Main software used for maintaining AIS in Jamuna Bank Limited:

Software is one of the most essential parts of Accenting Information System. Because without
software we can’t imagine basically they use two of software. Basically they use self-made software
named bank star 2000 and micro banker. Here in below I interpreted about customized software.

Activities:

 Banking Transaction is held through it like cash payment; cash receive & cash transfer etc.

 It support to the authorized user to send or receive data from another user.

 Information & News uploaded by IT department.

 Coding & structure changed by several customized software.

 Keep alive and make relation between the server and website.
5. Users of bank accounting information system:

 Internal users gradually: Bank clients and stockholders, front office, middle office and back
office employees, bank managers.
 External users respectively: Clients business partners, supplies and their clients, financial and
fiscal institution, insurance companies and other banks
 All these external users take accounting information from the clientele accounts, made
available to them the clients the banks must respect the confidentiality principle for the action
in clientele accounts and for the reason they usually give accounting information only to
internal users
 In the analysis of accounting information system of its accuracy and importance for the bank
stockholders, the issue of the bank accounting system transparency is interesting to access.

6. Operational System of AIS in Jamuna Bank Limited:

Jamuna Bank Ltd their banking operation among summation of manual and computerized system.
Here many functional of JBL, that how they gather all data are given below:

Manual:

 Payment order’s data collection

 Demand Draft’s data collection
 VISA card’s data collection Letter of Credit opening’s data collection
 Monthly equipment’s data collection

Computerized:

 Local remittance transfer’s data collection

 Foreign remittance transfer’s data collection
 Primary share request entry’s data collection
 Performance report’s data collection etc.

Combination of Both:
  A/C opening’s data collection
 Deposit scheme opens data collection
 Cash receiver’s data collection
 Cash payments data collection
 Clearing of Cheque’s data collection
7. Maintenance of Computer Based Transaction in Jamuna Bank Limited:

Software Base :

They have some functions that are maintain among software. Those are given below-

 Entry of account opening information form

 Profile Distribution
 Collection of Deposit
 Payment of salary
 Internal expenses listing
 Properly Investment activities listing.

Web Base:

They have many activities that are maintain among web. Those are given below:-

 Online cash
 Payment of cash
 Collection of cash
 Clearing of Cheque
 L/C authorization
 Current selling and purchasing
 Branch to Branch Internal Transaction etc.

8. Internet Banking Applications:

The latest evolutions in banking information systems originally are wed-based application that
support for internet banking activities. Internet banking function interface with Accounting
Information System among a web server or portal with the website or page performing the role as a
template or point of access. Among secure webservers , customers can perform actions , which can
feeling , update or change general Ledger status. Management analyzes report pertaining to
internet banking, such as how many customers are using the internet for deposit, transfer and entry
other banking products

9. Banking Transaction:

The banking transaction is done in three paths are as follows-

A) Cash Transaction:-When the transaction is made by cash they are defined cash
transaction. Cash is real asset of the bank.

B) Clearing: A customer of the bank may receive checks from others of issue a check to a
person who may place the check in his account with another bank. In this case the
customer’s is credited of debited gradually and a corresponding advice is issued to the
clearing house to clear the checks.

C) Transfer: The transfer of an amount from one account to another account does not affect
the cash balance until case is withdrawn by the transfer’s account is debited as he receive
money from the banked and the transfer’s account is credited as he gives the money to the
banker to lie in his account.