Operational Aspects of Accounting Entries | PAPER III – ACCOUNTING & FINANCIAL MANAGEMENT FOR BANKERS | MODULE A: ACCOUNTING PRINCIPLES AND PROCESSES
Operational Aspects of Accounting in Banks Operational Aspects of Accounting Entries in Banks Description This topic covers the unique characteristics of accounting systems used in banks, the differences in accounting practices across banks, and provides illustrative examples for better understanding. Peculiar Features of Accounting System in Banks Banking accounting follows the double-entry system but is customized to handle large volumes and specific types of transactions. Use of Core Banking Solutions (CBS) automates most of the accounting entries. Day Book and General Ledger are maintained electronically. Simultaneous debit and credit entries are generated for every transaction. Transactions are categorized by GL Heads and Sub-heads. Accounting Systems of Different Banks Most banks follow similar CBS-driven accounting, but nomenclature and software platforms may differ. RBI and Bank-sp...