Internship Report 16

3 General Banking:

General Banking is the most important department of a bank. It performs a

lot of important activities. It deals with maximum number of customer.
Principal branch of the Trust Bank has all the required sections of general
banking. Activities of the general banking section of the Trust Bank is
discussed as under.

3.1 Account Opening:

After opening of an account a person becomes a client of a bank. It is a legal

contract between the bank and the client. Through this contract a client is
ready to deposit any sum of money with purchasing the belief from the bank.
Therefore it means the bank is selling their belief and always ready to pay
any sum of deposited money of any client. An account opening form is the
contractual document. It is the legal basis of Banker-Client relationship.

3.1.1 Types of accounts:

Principal branch of TBL has the following accounts:

1. Saving account
2. Short Term Deposit (STD) Account.
3. Fixed Deposit Account.
4. Current Account.

3.1.1.1 Saving Account:

The saving account allows one to have interest income on his/her deposit
while the account can be used for transaction purposes. Withdrawal of
deposit can be made two times in a week in case of this account. Exceeding
this number will forfeit the interest for the month. The TBL offers 7.50%
interest rate on the account. Interest is applied to the account on half-
yearly basis. Savings account also offers:

Free chequebook.
Statement of account at desired frequency.
Tele banking.
Inter branch-banking facility
Internship Report 17

A. Trust Maxima Saving Account:

A new product has been introduced in the branches of TBL, named Trust
Maxima Saving Account. It started from August 1,2002. The scheme links
deposit value with the rate of interest. Higher the deposit, the higher the
rate of interest over carded rates applicable for general clients

Maximum deposit Existing Interest Rates of interest Total Payable

amount rates of SBA/C under the scheme interest
(in taka)
100,000.00 to 7.50% 0.50% additional 8.00%
200,000.00
200,001.00 to 7.50% 0.75% additional 8.25%
300,000.00
300,001.00 and 7.50% 1.00% additional 8.50%
above

3.1.1.2 Short Term Deposit (STD):

The Trust Bank offers 6.00% interest on STD account, which is less than
that of saving deposit. Normally various big companies, organizations,
government departments keep money in STD account. In Trust Bank Ltd., PB
branch private organizations and individuals are STD account holder. For
this type of account frequent withdrawal is discouraged. Deposit should be
kept for at least seven days to get interest. Prior notice is required for the
withdrawal of money from STD account. The account holder must give notice
seven days before the withdrawal that is why STD is called Seven-Day-
Notice Current account.

3.1.1.3 Fixed Deposit Receipt (FDR):

Fixed deposits are the deposits in which an amount of cash is deposited in

bank for a fixed period specified in advance. Normally the money on a fixed
deposit is not payable before the maturity date of a fixed period. At the
time of opening the deposit account the banker issues a receipt
acknowledging the receipt of money on deposit account. It is popularly known
as FDR. Necessary documents for opening a FDR in Trust Bank are as follow.
FDR Form

FDR Card

Before opening a Fixed Deposit Account a customer has to fill up an

application form, which contains the following.
 Internship Report 18

Amount in figures
Beneficiaries` name and address
Rate of interest
Information about nominees
Date of maturity
FDR number
Amount in words
Time period
Date of issue.
Special Instruction
Specimen signature.

After fulfilling the FDR Form and depositing the amount, FDR Account is
opened and FDR receipt is issued and it is recorded in the FDR Register. The
FDR Register contains the following information:

FDR Account Number.

Fixed Deposit Receipt Number.
Maturity period.
Maturity Date.
Interest rate.
Name of the FDR holder with address.

In case of fixed Deposit Account, the bank need not hold a cash reserve
to repay money to the customer. The payment will be made after
completion of a certain period of time.
The interest rate offered by TBL for Fixed Deposit Account is as
follows:

INTEREST RATES ON FIXED DEPOSIT RECEIPT

Old Rate of Interest per New Rate of Interest per
Type of Deposit Period
Annum Annum
FDR 3 months 8.50 8.00
FDR 6 months 9.00 8.50
FDR 1 year 9.25 9.00
FDR 2 years 9.50 9.25
3 years &
FDR 9.75 9.50
above
Internship Report 19

Normally a customer is not allowed to withdraw money before the

maturity of the fixed period in case of Fixed Deposit Account. If any
customer withdraws money before maturity date, the customers will not
get any interest.

Some other important factors of FDR Account are as follow:

FDR is not a negotiable Instrument.

The legal position of a banker regarding a fixed deposit is that of a

debtor which bound to repay the money only after the maturity of
the fixed period.
Chequebooks are not issued for Fixed Deposit Account.

3.1.1.4 Current Account:

The Principal Brunch of TBL is giving the privilege of their clients with
different types of Current Account. These accounts can be of five
types. They are:
Individual Current Account
Proprietorship Firms
Partnership firms
Private Limited Company.
Public limited company.

All the Account Opening forms are different to each other. All
though, the forms are different but the overall procedure of
Account Opening is similar to that of the Saving Account. This
account offers the following facilities:
Innumerous transactions of a day.
Free chequebooks.
Statement of account at any desired frequency.
Tele Banking.
Inter Brunch Banking facilities.

3.2.1 Procedures of opening an account:

Before opening an account, the following formalities have to be completed by

the customer:

Apply on a prescribed form.

An acceptable introduction by an introducer which is acceptable
by the bank is required prior to opening of any account.
Internship Report 20

Two copies of recent photograph of the account holder(s) duly

attested by the introducer must be produced.
The customer has to give three specimen signatures in the
Specimen signature card.
The minimum balance has to be maintained in the current is Tk.
5,000.00 and in Saving Account is Tk. 500.00.

The particulars of the application form for opening Current or Saving

Account are as follows:

Type of the account

Name of the applicant(s)
Father/Mothers name
Present address
Permanent address
Passport no (If any)
Date of birth
Nationality
Occupation
Telephone/Mobile/E-mail
Nominee(s)
Special instruction for operation of the A/C
Initial deposit
Specimen signature of the applicant
Introducers information.
Name.
Account number

In case of joint account, the following additional headings are in the form:
Operational instruction of the A/C and signatures

In case of partnership account the following additional headings must be

added:
Partners name and signature.

3.2.2 Transfer of Account:

An account holder can transfer his account from one branch to another. For
this, he/she must apply with proper reason to the manager of the branch
where he is maintaining the account.
Internship Report 21

3.2.2 Closing of an account:

A client can close his account any time by submitting an application to the
branch. There must be a signature of the client in the application and the
account-opening officer will verify it. The account officer then checks the
clients account position. The client is then asked to draw a final cheque for
the credit amount in the account excluding account close charge Tk. 50.00
and other incidental charges. The client then surrenders remaining checques
to respected officer who will tear off these cheques. Vouchers are then
issued with debiting the particular account and crediting Incidental charges
account.

3.2.3 Issuing Cheque-Book:

After the completion of above formalities, the bank provides the client a
Pay-in-Slip and chequebook. The chequebook can be of 10 or 25 pages. It will
depend on the type of the account. The 10 pages chequebook is issued to the
Saving A/C holder and 25 pages chequebook is issued to the Current or STD
A/C holder. The client has to fill up the Requisition Slip for chequebook.
Then the officer will take a new chequebook with filling up account number
of the client and the branch name in each page of the chequebook. The name
and the account number of the client are then registered in the Cheque
book issue register. The serial number of the chequebook is also entered in
the computer for proper maintenance of records.

3.3 Cash section:

Cash is the key instrument of all financial transaction. The cash section plays
a significant role. It is a very sensitive part of the bank because it deals
with most liquid assets. TBL, Principal Branch has a well equip cash section.
This section receives cash from depositors and pays cash against cheques,
Demand Draft, Pay Order and Pay-in-Slip over the counter. This section
deals with all types of negotiable instrument and it includes Vault, used as
the store of cash and instruments. The Vault is insured up to TK. 3 million.
Operation of this section begins with the banking hour. The cash officer
begins transaction with taking money from the Vault, known as Opening
Cash Balance. Vault is kept in most secured place. The amount of opening
cash balance is entered into a register. After whole days transaction, the
money remains in the cash counter is deposited back into the Vault, known as
the closing balance. The main functions of this section are cash receipt and
cash payment.
Internship Report 22

3.3.1 Cash Receipt:

At first depositor fills up the deposit amount in slip.

After filling the required deposit amount in slip, depositor
deposits the money.
Officer of the cash counter receives the money, counts it,
enters the amount of money in the scroll register, makes seal
the deposit in slip and sign on with the date.
Then this slip is passed to another officer for double sign in
the deposit slip.
Then the cash officer keeps the banks part of the slip. Other
part is given to the depositor.
The cash incharge gives posting through computer from the
deposit slip in the clients account and write a transaction
number.

3.3.2 Cash Payment:

When a client comes to the bank to cash a cheque,

he/she gives it to the cash counter
The cash officer receives the cheque and checks it
very carefully.
The cash officer checks the date of the cheque, the
account number of the cheque, amount in ward in figure and also
verifies the signature through computer.
If the instrument is free of all kinds of errors the
respected officer will ask the cheque bearer to sign on the
back of it.
He/she will then put his/her initial beside the
bearers signature.
There must be two signatures in cash payment cheque.
If it is a big amount, cheque must be verified in front of the
cash officer.
The cash officer will then enter the scroll number in
his/her register and will pay the money io the bearer.
Then the cash in-charge gives posting of the cheque
through computer and write a transaction number.

3.4 Local Remittance:

Remittances of funds are one of the most important aspects of the

Commercial Banks in rendering services to its customers. Remittance
Internship Report 23

facilities are very well known and popular service. The word Remittance
means sending of money from one place to another through Courier service
and Telegraph/Telex. A bank provides this facility to its customers by
receiving money from one branch of the bank and making arrangement for
payment to another branch within the country. For giving this facility, the
bank uses some instruments, which are used instead of liquid cash. To
transfer the cash from one place to another is very much risky that is why;
this department uses some transferable instruments instead of cash.

Remittance department uses the following transferable instruments:

Pay Order (PO)

Demand Draft (DD)

Telegraphic Transfer (TT)

Outward Bill for Collection (OBC)

In ward Bill for Collection (IBC)

3.2.2 Pay Order (PO):

Pay Order means Payment Order. Pay order is an instrument that contains an
order for payment to the payee only in case of local payment whether on
behalf of the bank or its constituents. Like cheque, there is no possibility of
dishonoring PO. The Pay Order is only en-cashed through the issuing branch
that means in case of PO the issuing and paying branch are the same.

3.2.2.1 Pay Order Issuing Process:

In the beginning stage, PO was issued only to effect the local payment of
banks own obligations. But at present, it is also issued to the customers,
which they can purchase to deposit as security money or earnest money. PO
is in form of receipts and issued by joint signature of two officers. It
ensures payment to the payee as the money is deposited by the purchaser of
PO is kept in a temporary account named Pay Order A/C. For issuing a
Pay Order, following formalities are to be maintained:

Carefully filled up the application form by the customers.

Deposit money either in cash or by cheque with necessary charges.
Prepare the instrument and make necessary entries in the PO Register
where payees name, date, pay order number etc. are to be recorded.
Before delivering the instrument to the customer, customers
signature to be taken on the back of the counter part and to be
properly scrutinized.

Internship Report 24

3.2.2.2 Pay Order Working Procedure:

Purchaser purchases the pay order by filling up pay order application

form.
Purchasers can purchase pay order in favor of a person or a company.
The beneficiary then can deposit the pay order in his account with
Trust Bank or any other bank.

3.2.2.3 Accounting Entry for PO Issue:

If the customer purchases the PO by depositing cash in the counter then

the procedure are;

Cash A/C Debit

Pay Order A/C.. Credit
Commission A/c Credit
Vat on Remittance A/C Credit.

If the customer wants to transfer the pay order amount from the
beneficiarys account with TBL by debiting his account then the procedures
are as follows:

Party A/C Debit

PO A/C Credit
Commission A/C Credit
Vat on Remittance Credit.

Pay order is a current liability on the part of bank, which is required to be

discharged by the beneficiaries against payment in cash or through an
account.

3.2.2.4 Payment of pay order:

Payment of PO is made from the branch it has been issued. It is not

transferable and therefore it can only be paid to:
The payee on identification.

The payees banker, who should certify that the amount would be

credited PO to the payees account.

The payee must authenticate a person holding a letter of authority

from the payee.

Internship Report 25

As the bank issues the pay order, it is crossed when it is paid over to the
customer. On the other hand the amount is transferred to the payees
account. To transfer the amount the payee must duly stamped the pay order.
The account entries will be:

PO Payable A/C Debit

TBL General A/C .. Credit

Before the payment is made, it is the duty of the issuing bank to examine
whether endorsement was given or not. Payment procedure of PO is
described bellow:
The payee deposits it to the collecting bank.

Collecting bank sends the PO to the issuing bank through clearing

house arrangement.
Payment is given and registered in PO register.

The PO is passed and cancelled in the deposit section.

3.2.2.5 Pay Order Charge:

For Tk. 1.00to Tk. 1000.00 the commission is Tk. 10.00.

For Tk. 1001 to Tk. 100000.00 the commission is Tk. 25.00.
For Tk. 100001.00 to Tk. 500000.00 the commission is Tk. 50.00.
For Tk. 500001.00to above the commission is Tk. 100.00.

The vat on remittance is charged on 15% of commission.

3.2.3 Demand Draft (DD):

Demand Draft is an instruction payable on demand. It is a negotiable

instrument issued by a particular branch of a bank containing an order to
another branch of the same bank to pay a fixed sum of money to a certain
person or order on demand. This instrument can be purchased by a customer
from a particular banks branch for himself or for beneficiary and can be
handed over to the purchaser for delivery to the beneficiary. The payee or
the beneficiary will claim the amount of money in the instrument by
producing the same to the concerned paying branch. Demand Draft may be
paid in cash to the payee on proper identification of the amount may be
Credited to his account (In case of A/C holder of the bank). Bank issues
Drafts for a nominal commission.
Internship Report 26

3.2.3.1 Issuance of Demand Draft:

While issuing a Demand Draft an officer must be confirmed about the

existence of the branch where the DD is to be issued or drawn as asked for
by the applicant or purchaser. Applicat6ion on banks prescribed form for DD
is obtained from the applicant and duly filled and signed by him/her. After
that the commission is computed correctly and applicant is asked to deposit
the amount mentioned in the DD and commission is computed. On receipt of
cash, a voucher is passed and scrolled by at least two officers. Then the DD
is issued and recorded in the Demand Draft Issue Register filling the
appropriate columns. The accounting treatment will be as follows:

When DD is issued:

Cash/ Customer A/C .Debit

TBL General A/C ..Credit
Commission A/C Credit
Vat on Remittance A/C . Credit

After giving this entry an Inter Branch Credit Advice (IBCA) is prepared
which contains the controlling number, depicted that the branch is Credited
to whom it is issued.

3.2.3.2 Payment of Demand Draft:

The paying bank as and when it responds to the relative advice receive
proceeds so Demand Draft. On receipt of the DD advice from the different
branches, the paying bank will verify the genuineness of the advice by way of
verifying test numbers and signatures. After receiving the instrument, the
IBCA lodgment is done by the branch. Necessary entries are given in DD
Inward Register. The controlling number of the IBCA should match with the
serial number of this register application. Issuing branch then sends an
Inter Branch Credit Advice(IBCA) to the drawn branch against previously
issued IBCA. After that the following entries are given below:
TBL General A/C. Debit
Clients A/C Credit

The payment of DD is made with following two procedures. Procedures are as

under:
Before getting Advice( IBCA)
Internship Report 27

When the paying branch OF DD receives the DD before receiving the

IBCA then the accounting procedures are:
DD Payable Without Advice A/C .Debit
Party A/C Credit
After receiving the advice , the accounting will be:
TBL General A/C ..Debit.
DD Payable without advice A/C Credit.

After getting Advice (IBCA):

When the DD paying branch receives the DD and IBCA at a time then
the accounting procedure will be:
TBL General A/C .. Debit.
Party A/C .Credit.

3.2.3.3 Stopping Payment of the Draft:

The banker cannot stop the payment of draft. Then on receiving instruction
from the purchaser after delivery of the draft. This is for simple reason
that issuing a bank draft the banker takes upon himself a commitment in
favor of third party (the payee) to pay a certain amount of money. This is
because a bank draft is as good as a promissory note issued by a banker and
it is acceopted by all because of the goodwill and the reputation of the
banker.

3.2.3.4 Loss Of the Draft:

A bank can stop payment of a draft in those cases where either the
purchase of the draft or the payee of the draft has reported about the
draft being lost or stolen. However in such cases bank should maintain
extrme caution. It should immediately inform the drawee branch about the
loss and enquire whether the draft still remains unpaid and also request the
drawee branch to exercise caution if and when the draft is presented for
payment.

3.2.3.5 Issue of Duplicate Draft:

In case a draft is reported lost and a duplicate draft is required to be

issued, the banker should take the following steps:
It should satisfy itself regarding genuineness of the party request

issue of a duplicate draft.

It should obtain non-payment confirmation of the drawee branch that

the relevant draft is still outstanding with that branch.

Internship Report 28

An indemnity bond should be obtained from the purchaser of the

draft performing the following:
Adhesive stamp Tk. 150
Witness of two persons known to the bank.
Payees signature is also obtained when possible.

While issuing a duplicate draft the number of the draft

originally issued should be corporated boldly on the draft form.
At the top of the duplicate DD it should be written- Duplicate
issued in lieu of original . No. Dated..
Paying branch wll be instructed to exercise cautions against
payment of the lost DD e.g.
Drawer branch put caution mark on respective advice.
Entry in the cheque/Draft lost registered and marking stop
payment against the concerned DD in computer.

3.3.2.6 Demand Draft Charge:

Bank charges a commission on DD.TBL, Principal Branch charges 0.15%

commission on DD Amount Their minimum commission is Tk. 25.00. The bank
charges 15% Vat on Commission Amount. Before making the payment of DD,
the paying branch will ascertain the genuineness of its issuance as well as
the genuineness of the payee. Open draft may be paid on proper
identification of the payee and crossed drafts can never be paid in cash over
the counter.

3.4 Telegraphic Transfer (TT):

Telegraphic Transfer is another widely used instrument for remittance of

fund from one branch to another. TT is quicker than a transfer of amount by
DD. Sometimes the customer wants to transfer his money from one branch
to another within a very short time. In that case the TT issuing branch uses
telephone/telex to transfer the order of paying a certain sum of money
immediately to the TT paying branch to its (TT paying branch) clients
account. Telegraphic Transfer is the most rapid and convenient but
expensive method. The TT issuing branch takes the telex charge from its
customer. It also charges commission and vat from its customer. The drawer
and the payee should have accounts with TBL. After all the formalities of TT
are done by the TT issuing branch with its customer, it prepares an Inter
Branch Credit Advice (IBCA) for the confirmation of the TT and the bank
posts that IBCA To the TT paying branch by Courier Service at the end of
that particular working day.
Internship Report 29

In case of issuing a TT the following procedures must be considered:

The customer fills up the TT application form.

The officer then prepares Credit vouchers of Commission and Vat on

Remittance based on the TT amount. He also prepares Telex A/C

credit Voucher.
Then the customer goes to the cash counter for depositing the TT

amount along with commission, Vat and telex charge.

After receiving the cash, the cash officer puts Cash Receive seal

on all the vouchers and gives back all the vouchers to the customer.
Then the customer submits all the vouchers to the Remittance

officer.
At last, the customer gets a cost memo containing TT serial number,

to which branch the TT amount will be remitted, TT amount,

commission, Vat and Telex charge.
Then the officer makes sure all the necessary entries in the TT

Issue Register
Finally, the remittance officer gives Test No and sends the TT form

to the manager of that branch. Then the manager gives the Test
Number again.
After getting all the test numbers the remittance officer makes a

phone call to the TT paying branch and sends the TT massage

containing the following information:
TT serial number
TT Payment date
TT Amount
Test Number
Party's account name
Partys account number
It is important to mention here that TBL, Principal Branch uses Telephone
for sending TT massage instead of Telex.

3.4.1 Accounting Entry for TT Issue:

Cash A/C / Clients A/C Debit

TBL General A/C .Credit
Commission A/C Credit
Vat A/C Credit
Telex A/C Credit

3.4.2 Procedure of Incoming TT:

After receiving the Telex, first it is recoded on the TT Receiving Form.
Then the TT serial number, test number are verified. Makes sure all the
Internship Report 30

necessary entries in the TT Payable Register. Finally, Credit Voucher in

favor of the beneficiarys account is prepared and passed.

3.4.3 Telegraphic Transfer Charge:

Bank charges commission on TT.TBL, Principal Branch charges 0.15%

commission on TT Amount Their minimum commission is Tk. 25.00. The bank
charges 15% Vat on Commission Amount. Tk. 50 is taken as Telex Charge.

3.5 Outer Bills for Collection (OBC):

If the bill is beyond the clearing range, it is collected by outer bill collection
mechanism. Customer deposits cheques, DD, PO etc. for collection, attaching
with their deposit slip. Instruments outside the clearing range are collected
through OBC . As for example, a customer of TBL Principal Branch deposits a
cheque of Janata Bank, Agrabad Branch, Chittagong, as a collecting bank.
Now, TBL, Principal Brunch wll perform the following tasks :
Cash department receives the cheque, DD, PO with deposit

slip. Then they verify the received cheques, DD or PO. If the

instruments are dishonored, those will be returned back to
the customers. If the instruments are OK then the cash
department will send them to the Local Remittance
Department(LRD).
The officer concerned of LRD first keeps the necessary

entries in the OBC register.

Endorsement Payees Account Will Be Credited on
Realization is given.
Collecting bank can collect it either by its branch in Agrabad

or by the drawers bank. They will forward the bill to that

particular branch. OBC number is given in the forwarding
letter. At the time of preparing OBC forwarding letter, the
LRD officer keeps a carbon copy of that particular
forwarding letter. He also keeps the deposit slip with the
carbon copy of the forwarding letter.
At last, he/she attached the cheques /DD/PO with the

original OBC forwarding letter and sends them by currier

service.
Collecting branch will receive an IBCA from TBL Agrabad

branch.
When ever, the IBCA of the collecting branchs OBC comes

then the following procedure should be undertaken:

Entry out the bill from the OBC Register.
Internship Report 31

Respond the IBCA.

Write an statement Credited to A/C No..on
2003 on the carbon copy of previously kept OBC
forwarding letter.
Makes a debit advice for the party.
Makes three credit vouchers like commission A/C, Vat
on remittance A/C and postage charge A/C.
3.6 Inward Bills for Collection:

There is a vice versa relationship between OBC and IBC. A branch of a bank
sends OBC for collecting their bill from its branch. Then OBC getting branch
responds that OBC and considers that OBC as IBC for them. The procedure
of responding OBC (IBC) are as follow:

Credit Voucher of TBL General A/C

Write down the IBC number and other information in the IBC
register.
To prepare IBCA.
Give posting to the computer.

3.7 Sanchay Patra:

TBL, Principal Branch is selling Sanchay Patra (Saving Certificates) to their

customers on behalf of Bangladesh Government. Jatio Sanchay Bureau,
which is guided by Bangladesh Bank issues the following types of Sanchay
Patra:

Types of Sanchay Patra Interest Rate

3 Years Sanchay Patra (3 Months Term) 12.00%
5 Years Bangladesh Sanchay Patra (BSP) 12.50%

Customers purchase Sanchay Patra by depositing money in the bank and

payments are made at the maturity to the customers from the respective
branch. The sales statement of Sanchay Patra must be sent to Bangladesh
Bank within seventy two hours of sale, otherwise the Sanchay Patra issuing
bank has to pay penalty to Bangladesh Bank. TBL gets 1% commission of the
total sales of Sanchay Patra. TBL gives the following entries after receiving
the application for Sanchay Patra from the customers.

Cash account or customers A/C ..Debit.

Sale of Sanchay Patra A/C .Credit.
Internship Report 32

3.8 Account Section:

Account Department is one of the most important departments in a bank

where each and every department is closely related. Account Department
maintains all the records of transactions and all types of statements. At the
end of the transaction hour all concerned departments send all kinds of
vouchers of transactions to this department. Account Department compares
all the figures, amount and contains of transaction with supplementary
statements automatically arranged by the computer. If any discrepancy
arises regarding any transaction then this department reports to the
concerned department to repair the mistake. Then Account Department
does another important task, which is called Voucher Sorting. In this task,
the account officer rearranges all the vouchers department wise and divides
all the vouchers in to Debit and Credit. After rearranging all the vouchers,
the officer concerned counts the vouchers of various departments and
ensures that the numbers of the vouchers are equal to the number of
vouchers shown in the supplementary statements. Another vital task of this
department is to prepare the extract. The extracts statement shows the
Inter Branch Transactions during the end of a particular day. The Officer
concerned then separates the Inter Branch Transaction Vouchers as
Originating and Responding basis. The responding IBCA and IBDA have a
duplicate sheet for each of them. These duplicate sheets must be separated
from the originals and must be kept individually as Extract. Then the next
task is to divide all the Inter Branch Transaction vouchers in to Debit and
Credit. Except voucher sorting, Account Department dose some other vital
tasks. This Department records its accounts daily, weekly and monthly. We
can divide these tasks in to two types. They are:

Before End of the Day:

Recording the daily transaction in the cash book.

Recording the daily transaction s==s in general and
subsidiary ledgers.
Preparing the daily position of the branch comprising of
deposit and cash.
Preparing the statement of Originating and Responding.
Making payment of all the expenses of the branch.
Making Trial Balance.
Taking Backup through computer.

After End of the Day

Internship Report 33

Preparing Statement of Affairs.

Statement of back page of affairs.
Statement of provisional income.
Statement of provisional expenditure.

Preparing Weekly Report.

Preparing Monthly Report:

Individual account balance statement.

Preparing profit and loss report.

Periodical Tasks:
Preparing the monthly salary statements for the employees publishing

the basic data of the branch.

Preparing the monthly position for the branch, which is sent to the
Head Office to maintain the Statutory Liquidity Requirement (SLR)
Preparing and Extract which is a summary of all the transactions of
the Head Office account with the branch to reconcile all the
transactions held among the accounts of all the branches.

3.7.1 Extracts:

Extract is a statement of all originating and responding transactions among

interbranch through Inter-Branch Debit and Credit Advice. At the end of
the day, all the Debit and Credit Advice of different departments comwe to
the account department. It makes Extracts in the light of all advices.
Actually Extract shows the balance of TBL, Principal Branchs General
Account. The objective of preparing it is to know how many transactions
have been originated and responded by the responsive branch per day.
Branch has to send it to the head offic keeping one copy.

3.7.2 Debit voucher:

For making cash payment like entertainment conveyance, internship

honorium, accounts department prepares a debit voucher. Amount is
withdrawn through cash section by depositing debit voucher.

3.7.3 Statement of Affairs:

Account section prepares the Statement of Affairs for finding the

profit/loss as wll as amount of assets and liabilities of concerned branch per
Internship Report 34

day. Theoretically m it is called financial statement. It has following two

parts:
Income and Expenditure Account.

Statement of Assests and Liabilities.

3.7.4 Depreciation:

Depreciation is the process of cost allocation of assets, not a process

assets valuation.
Fixed asset have been shown at cost less accumulated depreciation.
Depreciation has been charged on straight line method or reducing
method at the following rate on cost of assets for the full year
irrespective of their date of purchase.

Particulars of assets %
Furnitur and Fixture 10
Office Equipment 20
Office Decoration 12
Automobile 20

Besides the above, the accounts department has to prepare some internal
statements that are submitted to the central bank.

3.7 Clearing Section:

The TBL Principal Branch cheques of its client are received for collection
from other banks. In case of receiving cheqies the following points should be
checked very carefully:

They should not carry a date older than the receiving date for more than
six months. In that case it will be Stale cheque and it will not be allowed
for collection. Again the date of cheque should not be more than one
days forward than the receiving date that is the cheque should not be
Post Dated one.
The amount both in words and figures in deposit slip should be same and
also it should be inconformity with the amount mentioned in words and
figures in the cheque.
The name mentioned both in the cheque and the pay-in-slip should be the
same.
The cheque must be crossed.
The collection bank must check whether endorsement is done properly or
not.
Internship Report 35

The TBL Principal Branchs cheques are collected through Clearing, which is
described as under:

3.8.1 Clearing:

TBL is a scheduled bank. According to the article 37(2) of the Bangladesh

Bank Order, 1972, the banks that are members of the Clearing House are
called Scheduled Banks. The scheduled banks clear the cheques drawn upon
one another through the Clearing House. This is an arrangement by the
Central Bank where everyday the representatives of the member banks sit
to clear the cheques. The place where the banks meet and settle their dues
is called The Clearing House. The Clearing House sits for two times in a
working day. Everyday the first hour starts at 9.30 AM and returns house at
5.00 PM. I f the cheque is dishonored, it is returned with the prescribed
Return Memo showing the cause for dishonoring the cheque and for
necessary action. TBL, Principal Branch clears its cheques as well as cheques
of other banks.