ប្លង់គណនី

សម្រាប់រៀនសូត្រ តែប៉ុណ្ណោះ!

Note: The following information for the purpose of learning and self-development only. If you are the banker, please contact to National Bank of Cambodia.

The purpose of this descriptive chart of accounts manual is to standardize the usage of the COA in the recording of banking transactions for banks and financial institutions. It is noted that for any specific banking operation, different banks may have different ways of recorsding a banking operation. Standard accounting usage of COA is necessary to ensure meaningful and comparative account balances on a bank-wide basis as well as for regulatory purposes for the calculation of meaningful statistical and other performance ratios.

The COA consists of 6-digits, with the last digit denoting type of currency. Based on the logic of such a nomenclature, it is therefore possible for banks to have a multi-currency balance sheet and income statements. In other words, for those banks doing business in more than one currency, it is possible to have as many balance sheets and income statements as there are currencies used. Each financial statement will be self-balancing. The process of consolidating all such multi-currency financial statements into a base-currency financial statement (usually KHR) for reporting purposes does not result in either a translation gains or loss or any exchange differences.

The multi-currency system is the recommended system for COA. Using such a system, all foreign exchange positions are easily managed. Exchange positions are taken up as soon as they arise.

Most banks in Cambodia use a dual currency system for accounting purposes. These banks record both a foreign currency and a base currency when they are engaged in foreign currency transactions. Some banks revalue the exchange difference on a daily basis; others on a monthly basis while still others on an annual basis. There is one case when a bank does not revalue its exchange position at all. The exchange gains or loss is the same and does not depend on the periodicity of the revaluation, except when no revaluation is made at all. However, for proper recognition of exchange gains and losses, banks should revalue exchange positions promptly. Revaluation should be done daily for banks with active foreign exchange transactions and at least monthly for banks with less active foreign exchange transactions.

Banks are permitted to append subsidiary accounts to the main 6-digit COA. For instance, under cash in transit 11 12 00, banks may add a suffix 0001 to the main account as 11 12 01. 0001. This account can be named as cash in transit – branch A. So, branch B, C, D will have suffixes as 0002, 0003 etc. However, banks are not permitted to create new account series or new account numbers for any 6-digit accounts not created. Where a valid need exists, banks may request for new account numbers from NBC. This is to ensure standardization of 6-digit COA. It must be mentioned that all subsidiary (suffixes) accounts used by banks should be summed up into the COA for reporting to NBC. Banks, for instance, should not report an account such as 11 12 01.0007 to NBC.

In this manual, interest-bearing asset of the bank such as bank loans, placements, securities, investments and customer loans are mapped to the daily interest receivable and interest income accounting entries. Where assets are non-performing, interest receivable and the Interest Income in Suspense accounting entries are shown.

Interest-costing liabilities of the bank such as bank deposits, demand, savings, time, certificate of deposits, and negotiable certificate of deposits are mapped to the daily interest payable and interest expense accounting entries.

Accrued expenses and unearned income are also mapped to the related expense and income accounts.

Non-interest bearing assets, liabilities, capital, off-balance sheet items, non- interest income and non-interest expenses are described as to their accounting usage for the banking industry.

Banks with domestic branches should ensure that all inter-branch balances and transactions are eliminated in the consolidated Head Office accounts.

The definitions of standard banking products and terms such as bankers’ acceptances, inter – bank funds sold, bills of exchange, certificates of deposits, certified checks, obligations under capital/finance lease, premiums, reserves and others have been kept to a minimum in this manual since many of these terms can be found either in standard banking textbooks or in the glossary of chart of accounts terminology.

The manual consists of 11 main sections: Introduction, Specific COA problems and solutions, List of accounts unlikely to be used, List of account titles to be modified, List of new accounts to be created, Assets, Liabilities, Capital, Income, Expense and Off – Balance sheet items.

There are 20 sub-sections covering sub - divisions of assets and liabilities, capital, income, expense and off – balance sheet accounts. Each is preceded with a general description of accounting principles, practices or procedures.

General Principles

This section deals with cash, checks, balances with banks, balances with NBC, reserve requirements and statutory deposits with NBC. These accounts earn zero or very low interest. Assets such as cash, precious metals and gold may be verified by physically counting them and agreeing the balances to the general ledger balances. Due from banks account should be reconciled on a regular basis and all open items followed up to conclusion. Other cash items such unposted debits, cash in transit and checks discounted should be reviewed for proper disposition.

Account 11 11 00  | Cash in Vault and On Hand

[2005] This account records all cash in the bank such as cash with each teller, petty cash floats, branches, ATM machines and in the vault. Subsidiary accounts may be created to control cash with each teller, branch, ATM location and different types of petty cash floats. Petty cash floats should be maintained on a float basis. The amount of float should be determined and approved by management. Cash in all forms should be counted to agree with the balance shown in the registers and books of accounts at frequent periodic intervals. Checks in process of clearing are not to be recorded in this account.

[2010].

Account 11 12 00  | Cash in Transit

[2005] This account records cash that are being sent to another bank, branch or NBC. The balance in this account may be verified against the duly approved documents supporting the movement of such cash. The amount should normally reverse in one day’s time. Long outstanding should be investigated for proper disposition.

[2010].

Account 11 21 00 Clearing House

[2005] This account records all checks, drafts and clearing items received from customers for clearing through the Clearing house. Currently, only KHR and USD can be cleared locally through the Clearing House. Checks in other currencies, for example, SGD, HKD from customers sent for collection should not be booked in this account. They should be recorded in Class 9 in account 95 41 00 Clean Bills of Exchange sent for collection. Checks received too late for today’s clearing should be booked as unposted debits and reversed the next day to clearing house. Banks should not use suspense account to record checks received from customers.

Debit: 11 21 00 Clearing House
Credit: 32 00 00 Customer

[2010].

Account 11 22 00 Unposted debits

[2005] This account records checks and cash items received from customers after clearing or cut-off hours. Amounts will be reversed the next day. The bank may want to place a one –day hold on such items being uncleared effects.

Debit: 11 22 00 Unposted debits
Credit: 32 00 00 Customer

The reversal entries are:
Debit: 11 21 00 Clearing House
Credit: 11 22 00 Unposted debits

[2010].

Account 11 23 00 Checks discounted

[2005] This account records checks purchased from customers. The bank takes a risk for itself on such purchase if it does not have recourse in case of dishonor. Normally a discount is deducted and taken to income. Checks purchased may comprise foreign checks drawn outside Cambodia.

Debit: 11 23 00 Checks discounted
Credit: 32 00 00 Customer
Credit: 37 20 00 Unearned Income

[2010].

Account 11 30 00 Gold and Precious Metals

[2005] This account records gold and precious metal that the bank owns or holds in stock for sale to customers. Article 2 paragraph 2 and Article 6 of Prakas 700.50 require that gold and precious metals be revalued at market price on statement date. Gains on revaluation of gold and precious metal should be recorded in account 57 49 30 Other Miscellaneous Income – revaluation gain on gold and precious metals. Loss on revaluation of gold and precious metals should be recorded in account 65 94 00 Other Miscellaneous Expense – revaluation loss on gold and precious metals. Gold and precious metals that the customer lodges for safe - keeping should be recorded in account 95 40 00 Assets held as Custodian.

[2010].

Account 11 41 00 Due from NBC

[2005] This account is the current account that banks maintained with NBC. It is usually non-interest bearing. The function is to facilitate clearing settlements and other payments with the Central Bank.

[2010].

Account 11 42 00 Capital Guarantee Deposit with NBC

[2005] This account records the required deposit that banks are required to maintain with NBC pursuant to Prakas B 7.01 – 136. At the time of writing, the statutory deposit with NBC is 10% of the bank’s registered capital. The deposit is interest bearing. Banks should accrue interest daily on the interest earned on Capital Guarantee Deposit.

Entries are:
Debit 23 11 10 AIR Capital Guarantee Deposit
Credit 51 11 10 Interest Income Capital Guarantee Deposit

[2010].

Account 11 43 00 Reserve requirements with NBC

[2005] This account records the reserve to be maintained with NBC in respect of deposits held by customers and financial institutions. At the time of writing, the statutory reserve requirement is 8% of the total of customer deposits and vostro balances. This is a non-interest bearing account. Therefore, no accrual of interest is required.

[2010].

Account 11 44 00 Other Deposit with NBC

[2005] This account records all other deposits that banks maintained with NBC. Where deposits are interest-bearing, daily accrual is recorded as

Debit 23 11 20 AIR Account with NBC
Credit 51 11 20 Interest Income Other deposit with NBC

[2010].

Account 11 45 00 Loan to NBC

[2005] This account records loans given by banks to NBC. This account is differentiated from the previous account in that the disbursement of funds to NBC is made against specific loan conditions such as tenor, rate, and repayment. There may or may not be a loan agreement.

Daily accrual of interest is recorded as follows:
Debit 23 11 30 AIR Loans to NBC
Credit 51 11 30 Interest Income Loans to NBC

[2010].

Account 11 46 00 Short term time deposit with NBC

[2005] This account records placements (time deposits) of one year or less which are interest -bearing with NBC.

Daily accrual is recorded as follows:
Debit 23 11 40 AIR Short term time deposit with NBC
Credit 51 11 40 Interest Income Short term time deposit with NBC

[2010].

Account 11 47 00 Long term time deposit with NBC

[2005] This account records placements of over one year which are interest bearing with NBC.

Daily accrual is recorded as:
Debit 23 11 50 AIR Long term time deposit with NBC
Credit 51 11 50 Interest Income Long term time deposit with NBC

[2010].

Account 11 51 00 Due from Banks - Non Interest Bearing Demand deposit Resident

[2005] This account records transactions of a current account nature with local commercial banks. Accounts in foreign currencies are nostro accounts. No interest accrual needed as account is non-interest bearing.

[2010].

Account 11 52 00 Due from Banks - Non Interest Bearing Demand deposit Non Resident

[2005] Same as above except that it is used to record transactions with non-residents. This includes foreign commercial banks, branches and head offices of foreign banks. For definitions of residents and non-residents, please refer to guidelines for monthly report to NBC.

[2010].

Account 11 53 00 Due from Banks - Interest bearing Demand deposit Resident

[2005] Same as above except that it is interest bearing. Daily accrual is made as follows:
Debit: 23 12 10 AIR Due from banks interest bearing Demand deposit resident
Credit: 51 12 10 Interest Income Due from banks interest bearing Demand deposit resident

[2010].

Account 11 54 00 Due from Banks - Interest bearing Demand deposit Non Resident

[2005] Same as above except it is used to record transactions with non – residents. Daily interest accrual is made as follows:
Debit 23 12 20 AIR Due from banks interest bearing Demand deposit Non Resident
Credit 51 12 20 Interest Income Due from banks interest bearing DD NR

[2010].

General Principles

This section comprises standard loans, time deposits, overdrafts and saving deposits to banks, head office, OFIs and Licensed MFIs. Standard loans are performing loans; loans which are not classified and for which mandatory provisions are usually not made. Prakas 7.00.51 defined standard loans where the payment experience is punctual and interest or principal repayment is not overdue 90 days.

The COA segregates between standard loans to banks and standard placements with banks. Standard placements comprise time deposits, money market and inter – bank funds for investment and fund management purposes.

Overdrafts are pre-arranged short-term credit lines for temporary or working capital purposes. Saving deposits do not have fixed maturities.

Standard loans and placements with banks are earning assets and interest should be accrued daily into interest income accounts. Such accrued interest is reversed when payment is received either through cash or debit to customers ‘accounts.

The COA sub-classifies standard loans and placements into:

• Short-term and long-term
• Banks, Head Office, Branches, Financial Institutions and Licensed MFIs
• Resident and Non-resident
• Currency

The accrued interest receivable accounts are shown together with interest income accounts below for each general ledger accounts.

Account 12 11 10 Standard Loans Short term loans to Banks Resident

Daily interest should be accrued as:
Debit 23 21 10 AIR – Standard Loans –short term loans to banks –resident
Credit 51 21 10 Interest Income – Standard Loans- short term loans to banks - resident

Account 12 11 20 Standard Loans short term loans to banks – Non Resident

Daily interest should be accrued as:
Debit 23 21 20 AIR - Standard Loans short term loans to banks – Non Resident
Credit 51 21 20 Interest Income –Standard Loans short term loans to banks – Non Resident

Account 12 11 30 Standard Loans short term loans to HO/Branches – Resident

Daily interest should be accrued as:
Debit 23 21 30 AIR - Standard Loans short term loans to HO/Branches - Resident
Credit 51 21 30 Interest Income –Standard Loans short term loans to Ho/Branches – Resident

Account 12 11 40 Standard Loans short term loans to HO/Branches – Non Resident

Daily interest should be accrued as:
Debit 23 21 40 AIR - Standard Loans short term loans to HO/Branches – Non Resident
Credit 51 21 40 Interest Income –Standard Loans short term loans to HO/Branches –Non Resident

Account 12 11 50 Standard Loans short term loans to OFI - Resident

Daily interest should be accrued as:
Debit 23 21 50 AIR - Standard Loans short term loans to OFI - Resident
Credit 51 21 50 Interest Income –Standard Loans short term loans to OFI - Resident

Account 12 11 60 Standard Loans short term loans to OFI - Non Resident

Daily interest should be accrued as:
Debit 23 21 60 AIR - Standard Loans short term loans to OFI - Non Resident
Credit 51 21 60 Interest Income –Standard Loans short term loans to OFI - Non Resident

Account 12 11 70 Standard Loans short term loans to MFI - Resident

Daily interest should be accrued as:
Debit 23 21 70 AIR - Standard Loans short term loans to MFI - Resident
Credit 51 21 70 Interest Income –Standard Loans short term loans to MFI - Resident

Account 12 12 10 Standard Loans – Long term loans to Banks Resident

Daily interest should be accrued as:
Debit 23 22 10 AIR – Standard Loans –Long term loans to banks –Resident
Credit 51 22 10 Interest Income – Standard Loans- Long term loans to banks - Resident

Account 12 12 20 Standard Loans Long term loans to banks – Non Resident

Daily interest should be accrued as:
Debit 23 22 20 AIR - Standard Loans Long term loans to banks – Non Resident
Credit 51 22 20 Interest Income –Standard Loans Long term loans to banks – Non Resident

Account 12 12 30 Standard Loans Long term loans to HO/Branches – Resident

Daily interest should be accrued as:
Debit 23 22 30 AIR - Standard Loans Long term loans to HO/Branches - Resident
Credit 51 22 30 Interest Income –Standard Loans Long term loans to Ho/Branches – Resident

Account 12 12 40 Standard Loans Long term loans to HO/Branches – Non Resident

Daily interest should be accrued as:
Debit 23 22 40 AIR - Standard Loans Long term loans to HO/Branches – Non Resident
Credit 51 22 40 Interest Income –Standard Loans Long term loans to HO/Branches –Non Resident

Account 12 12 50 Standard Loans Long term loans to OFI - Resident

Daily interest should be accrued as:
Debit 23 22 50 AIR - Standard Loans Long term loans to OFI - Resident
Credit 51 22 50 Interest Income –Standard Loans Long term loans to OFI - Resident

Account 12 12 60 Standard Loans Long term loans to OFI - Non Resident

Daily interest should be accrued as:
Debit 23 22 60 AIR - Standard Loans Long term loans to OFI - Non Resident
Credit 51 22 60 Interest Income –Standard Loans Long term loans to OFI - Non Resident

Account 12 12 70 Standard Loans Long term loans to MFI - Resident

Daily interest should be accrued as:
Debit 23 22 70 AIR - Standard Loans Long term loans to MFI - Resident
Credit 51 22 70 Interest Income –Standard Loans Long term loans to MFI - Resident

Account 12 13 10 Standard Deposit Short term Time deposit with Banks Resident

Daily interest should be accrued as:
Debit 23 23 10 AIR – Standard Deposit –Short term Time deposit with banks – Resident
Credit 51 23 10 Interest Income – Standard Deposit- Short term Time deposit with banks - Resident

Account 12 13 20 Standard Deposit Short term Time deposit with banks – Non Resident

Daily interest should be accrued as:
Debit 23 23 20 AIR - Standard Deposit Short term Time deposit with banks – Non Resident
Credit 51 23 20 Interest Income –Standard Deposit Short term Time deposit with banks – Non Resident

Account 12 13 30 Standard Deposit Short term Time deposit with HO/Branches – Resident

Daily interest should be accrued as:
Debit 23 23 30 AIR - Standard Deposit Short term Time deposit with HO/Branches - Resident
Credit 51 23 30 Interest Income –Standard Deposit Short term Time deposit with Ho/Branches – Resident

Account 12 13 40 Standard Deposit Short term Time deposit with HO/Branches – Non Resident

Daily interest should be accrued as:
Debit 23 23 40 AIR - Standard Deposit Short term Time deposit with HO/Branches – Non Resident
Credit 51 23 40 Interest Income –Standard Deposit Short term Time deposit with HO/Branches –Non Resident

Account 12 13 50 Standard Deposit Short term Time deposit with OFI - Resident

Daily interest should be accrued as:
Debit 23 23 50 AIR - Standard Deposit Short term Time deposit with OFI - Resident
Credit 51 23 50 Interest Income –Standard Deposit Short term Time deposit with OFI - Resident

Account 12 13 60 Standard Deposit Short term Time deposit with OFI - Non Resident

Daily interest should be accrued as:
Debit 23 23 60 AIR - Standard Deposit Short term Time deposit with OFI - Non Resident
Credit 51 23 60 Interest Income –Standard Deposit Short term Time deposit with OFI - Non Resident

Account 12 13 70 Standard Deposit Short term Time deposit with MFI - Resident

Daily interest should be accrued as:
Debit 23 23 70 AIR - Standard Deposit Short term Time deposit with MFI - Resident
Credit 51 23 70 Interest Income –Standard Deposit Short term Time deposit with MFI - Resident

Account 12 14 10 Standard Deposit Long term Time deposit with Banks Resident

Daily interest should be accrued as:
Debit 23 24 10 AIR – Standard Deposit –Long term Time deposit with banks – Resident
Credit 51 24 10 Interest Income – Standard Deposit- Long term Time deposit with banks - Resident

Account 12 14 20 Standard Deposit Long term Time deposit with banks – Non Resident

Daily interest should be accrued as:
Debit 23 24 20 AIR - Standard Deposit Long term Time deposit with banks – Non Resident
Credit 51 24 20 Interest Income –Standard Deposit Long term Time deposit with banks – Non Resident

Account 12 14 30 Standard Deposit Long term Time deposit with HO/Branches – Resident

Daily interest should be accrued as:
Debit 23 24 30 AIR - Standard Deposit Long term Time deposit with HO/Branches - Resident
Credit 51 24 30 Interest Income –Standard Deposit Long term Time deposit with Ho/Branches – Resident

Account 12 14 40 Standard Deposit Long term Time deposit with HO/Branches – Non Resident

Daily interest should be accrued as:
Debit 23 24 40 AIR - Standard Deposit Long term Time deposit with HO/Branches – Non Resident
Credit 51 24 40 Interest Income –Standard Deposit Long term Time deposit with HO/Branches –Non Resident

Account 12 14 50 Standard Deposit Long term Time deposit with OFI - Resident

Daily interest should be accrued as:
Debit 23 24 50 AIR - Standard Deposit Long term Time deposit with OFI - Resident
Credit 51 24 50 Interest Income –Standard Deposit Long term Time deposit with OFI - Resident

Account 12 14 60 Standard Deposit Long term Time deposit with OFI - Non Resident

Daily interest should be accrued as:
Debit 23 24 60 AIR - Standard Deposit Long term Time deposit with OFI - Non Resident
Credit 51 24 60 Interest Income –Standard Deposit Long term Time deposit with OFI - Non Resident

Account 12 14 70 Standard Deposit Long term Time deposit with MFI - Resident

Daily interest should be accrued as:
Debit 23 24 70 AIR - Standard Deposit Long term Time deposit with MFI - Resident
Credit 51 24 70 Interest Income –Standard Deposit Long term Time deposit with MFI - Resident

Account 12 15 10 Standard Loans – Overdrafts to banks –Resident

Daily interest should be accrued as:
Debit 23 25 10 AIR - Standard Loans – Overdrafts to banks –Resident
Credit 51 25 10 Interest Income - Standard Loans – Overdrafts to banks – Resident

Account 12 15 20 Standard Loans – Overdrafts to OFIs –Resident

Daily interest should be accrued as:
Debit 23 25 20 AIR - Standard Loans – Overdrafts to OFIs –Resident
Credit 51 25 20 Interest Income - Standard Loans – Overdrafts to OFIs – Resident

Account 12 15 30 Standard Loans – Overdrafts to Licensed MFIs –Resident

Daily interest should be accrued as:
Debit 23 25 30 AIR - Standard Loans – Overdrafts to Licensed MFIs –Resident
Credit 51 25 30 Interest Income - Standard Loans – Overdrafts to Licensed MFIs–Resident

Account 12 16 10 Standard Deposits – Savings Deposits with banks – Resident

Daily interest should be accrued as:
Debit 23 26 10 AIR - Standard Deposits – Savings Deposits with banks – Resident
Credit 51 26 10 Interest Income - Standard Deposits – Savings Deposits with banks –Resident

Account 12 16 20 Standard Deposits – Savings Deposits with OFIs – Resident

Daily interest should be accrued as:
Debit 23 26 20 AIR - Standard Deposits – Savings Deposits with OFIs – Resident
Credit 51 26 20 Interest Income - Standard Deposits – Savings Deposits with OFIs –Resident

Account 12 16 30 Standard Deposits – Savings Deposits with Licensed MFIs –Resident

Daily interest should be accrued as:
Debit 23 26 30 AIR - Standard Deposits – Savings Deposits with Licensed MFIs–Resident
Credit 51 26 30 Interest Income - Standard Deposits – Savings Deposits with Licensed MFIs –Resident

General Principles

This section comprises sub-standard loans, time deposits, overdrafts and saving deposits to banks, head office, OFIs and Licensed MFIs. Sub-standard loans are defined in Annex I Prakas No B7-00-51 on the classification of and provisioning for bad and doubtful debts dated February 17, 2000. Loans become sub- standard when the interest or principal repayment is overdue from 91 days to 180 days. The mandatory minimum level of specific provision for sub-standard loans is 10%. Under Article 6 of the said Prakas, it is stated that ‘In accordance with the accrual basis of accounting, interest accrued on a customer shall be recorded as income in the profit and loss account. However, such a procedure is not followed for assets once they have been classified as sub-standard, doubtful or loss. In these circumstances, interest accrued shall be credited to an account for Interest Income in Suspense.

As soon as the account is classified sub-standard, a provision is made for the portion of previously accrued interest receivable (AIR) that was recorded as income. Please refer to Circular on Non – performing loans, provisions and interest account. Interest Account.

The accounting entries are:
Debit 66 12 00 Doubtful and Bad Debt on Accrued Interest
Credit 17 00 00 Allowance for Loans and

Specific provision made on the loan principal is recorded as:
Debit 66 11 00 Doubtful and Bad Debts on Principal
Credit 17 40 00 Allowance for loans and Lease Losses – Loans to banks

The balance in standard loans is transferred to sub-standard loans.
Debit 12 20 00 Sub-standard Loans and placements with Banks
Credit 12 10 00 Standard loans and placements with Banks

Daily interest accrued as from the date of classification into sub-standard loan is taken to Interest Income in Suspense, not to interest income.
Debit 23 30 00 AIR – Substandard Loans and Placements with Banks
Credit 38 50 00 Interest Income in Suspense

When payment of all overdue interest in cash or debit to bank’s account is made, then only is Interest Income in Suspense taken to income as follows:
Debit 11 50 00 Due from Banks
Credit 23 30 00 AIR – Sub-standard Loans and Placements with Banks
Debit 38 50 00 Interest Income in Suspense
Credit 51 31 00 Interest Income – Sub-standard loans and Placements with Banks

Interest Income in Suspense account 38 50 00 is categorized by currency. Banks may segregate Interest Income in Suspense between those from banks and customers. Banks may also sub – classify Interest Income in Suspense by name of bank or customer.

Banks may sub – classify account 66 11 00 into banks and customers as well as by name of the bank or customer.

Allowance for loans and Lease Losses – Loans to Banks are not sub-classified into sub-standard, doubtful and loss categories.

Account 12 21 10 Sub-standard Loans Short term loans to Banks Resident

Daily interest should be accrued as:
Debit 23 31 10 AIR – Sub-standard Loans –short term loans to banks –resident
Credit 38 50 00 Interest Income in Suspense

Account 12 21 20 Sub-standard Loans short term loans to banks – Non Resident

Daily interest should be accrued as:
Debit 23 31 20 AIR - Sub-standard Loans short term loans to banks – Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 21 30 Sub-standard Loans short term loans to HO/Branches – Resident

Daily interest should be accrued as:
Debit 23 31 30 AIR - Sub-standard Loans short term loans to HO/Branches - Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 21 40 Sub-standard Loans short term loans to HO/Branches – Non Resident

Daily interest should be accrued as:
Debit 23 31 40 AIR - Sub-standard Loans short term loans to HO/Branches – Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 21 50 Sub-standard Loans short term loans to OFI - Resident

Daily interest should be accrued as:
Debit 23 31 50 AIR - Sub-standard Loans short term loans to OFI - Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 21 60 Sub-standard Loans short term loans to OFI - Non Resident

Daily interest should be accrued as:
Debit 23 31 60 AIR - Sub-standard Loans short term loans to OFI - Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 21 70 Sub-standard Loans short term loans to MFI - Resident

Daily interest should be accrued as:
Debit 23 31 70 AIR - Sub-standard Loans short term loans to MFI - Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 22 10 Sub-standard Loans – Long term loans to Banks Resident

Daily interest should be accrued as:
Debit 23 32 10 AIR – Sub-standard Loans –Long term loans to banks –Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 22 20 Sub-standard Loans Long term loans to banks – Non Resident

Daily interest should be accrued as:
Debit 23 32 20 AIR - Sub-standard Loans Long term loans to banks – Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 22 30 Sub-standard Loans Long term loans to HO/Branches – Resident

Daily interest should be accrued as:
Debit 23 32 30 AIR - Sub-standard Loans Long term loans to HO/Branches - Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 22 40 Sub-standard Loans Long term loans to HO/Branches – Non Resident

Daily interest should be accrued as:
Debit 23 32 40 AIR - Sub-standard Loans Long term loans to HO/Branches – Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 22 50 Sub-standard Loans Long term loans to OFI - Resident

Daily interest should be accrued as:
Debit 23 32 50 AIR - Sub-standard Loans Long term loans to OFI - Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 22 60 Sub-standard Loans Long term loans to OFI - Non Resident

Daily interest should be accrued as:
Debit 23 32 60 AIR - Sub-standard Loans Long term loans to OFI - Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 22 70 Sub-standard Loans Long term loans to MFI - Resident

Daily interest should be accrued as:
Debit 23 32 70 AIR - Sub-standard Loans Long term loans to MFI - Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 23 10 Sub-standard Deposit Short term Time deposit with Banks Resident

Daily interest should be accrued as:
Debit 23 33 10 AIR – Sub-standard Deposit –Short term Time deposit with banks–Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 23 20 Sub-standard Deposit Short term Time deposit with banks – Non Resident

Daily interest should be accrued as:
Debit 23 33 20 AIR - Sub-standard Deposit Short term Time deposit with banks –Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 23 30 Sub-standard Deposit Short term Time deposit with HO/Branches – Resident

Daily interest should be accrued as:
Debit 23 33 30 AIR - Sub-standard Deposit Short term Time deposit with HO/Branches - Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 23 40 Sub-standard Deposit Short term Time deposit with HO/Branches – Non Resident

Daily interest should be accrued as:
Debit 23 33 40 AIR - Sub-standard Deposit Short term Time deposit with HO/Branches – Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 23 50 Sub-standard Deposit Short term Time deposit with OFI - Resident

Daily interest should be accrued as:
Debit 23 33 50 AIR - Sub-standard Deposit Short term Time deposit with OFI - Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 23 60 Sub-standard Deposit Short term Time deposit with OFI - Non Resident

Daily interest should be accrued as:
Debit 23 33 60 AIR - Sub-standard Deposit Short term Time deposit with OFI - Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 23 70 Sub-standard Deposit Short term Time deposit with MFI - Resident

Daily interest should be accrued as:
Debit 23 33 70 AIR - Sub-standard Deposit Short term Time deposit with MFI - Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 24 10 Sub-standard Deposit Long term Time deposit with Banks Resident

Daily interest should be accrued as:
Debit 23 34 10 AIR – Sub-standard Deposit –Long term Time deposit with banks–Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 24 20 Sub-standard Deposit Long term Time deposit with banks – Non Resident

Daily interest should be accrued as:
Debit 23 34 20 AIR - Sub-standard Deposit Long term Time deposit with banks – Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 24 30 Sub-standard Deposit Long term Time deposit with HO/Branches – Resident

Daily interest should be accrued as:
Debit 23 34 30 AIR - Sub-standard Deposit Long term Time deposit with HO/Branches - Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 24 40 Sub-standard Deposit Long term Time deposit with HO/Branches – Non Resident

Daily interest should be accrued as:
Debit 23 34 40 AIR - Sub-standard Deposit Long term Time deposit with HO/Branches – Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 24 50 Sub-standard Deposit Long term Time deposit with OFI - Resident

Daily interest should be accrued as:
Debit 23 34 50 AIR - Sub-standard Deposit Long term Time deposit with OFI - Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 24 60 Sub-standard Deposit Long term Time deposit with OFI - Non Resident

Daily interest should be accrued as:
Debit 23 34 60 AIR - Sub-standard Deposit Long term Time deposit with OFI - Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 24 70 Sub-standard Deposit Long term Time deposit with MFI - Resident

Debit 23 34 70 AIR - Sub-standard Deposit Long term Time deposit with MFI - Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 25 10 Sub-standard Loans – Overdrafts to banks –Resident

Daily interest should be accrued as:
Debit 23 35 10 AIR - Sub-standard Loans – Overdrafts to banks –Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 25 20 Sub-standard Loans – Overdrafts to OFIs –Resident

Daily interest should be accrued as:
Debit 23 35 20 AIR - Sub-standard Loans – Overdrafts to OFIs –Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 25 30 Sub-standard Loans – Overdrafts to Licensed MFIs – Resident

Daily interest should be accrued as:
Debit 23 35 30 AIR - Sub-standard Loans – Overdrafts to Licensed MFIs – Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 26 10 Sub-standard Deposits – Savings Deposits with banks – Resident

Daily interest should be accrued as:
Debit 23 36 10 AIR - Sub-standard Deposits – Savings Deposits with banks – Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 26 20 Sub-standard Deposits – Savings Deposits with OFIs – Resident

Daily interest should be accrued as:
Debit 23 36 20 AIR - Sub-standard Deposits – Savings Deposits with OFIs – Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 26 30 Sub-standard Deposits – Savings Deposits with Licensed MFIs –Resident

Daily interest should be accrued as:
Debit 23 36 30 AIR - Sub-standard Deposits – Savings Deposits with Licensed MFIs –Resident
Credit 38 50 00 Interest Income in Suspense

General Principles

This section comprises of Doubtful loans, time deposits, overdrafts and saving deposits to banks, head office, OFIs and Licensed MFIs. Doubtful loans are defined in Annex I Prakas No B7-00-51 on the classification of and provisioning for bad and doubtful debts dated February 17, 2000. Loans become doubtful when the interest or principal repayment is overdue from 181 days to 360 days. The mandatory minimum level of specific provision for Doubtful loans is 30%. Under Article 6 of the said Prakas, it is stated that ‘In accordance with the accrual basis of accounting, interest accrued on a customer shall be recorded as income in the profit and loss account. However, such a procedure is not followed for assets once they have been classified as sub-standard, doubtful or loss. In these circumstances, interest accrued shall be credited to an account for Interest Income in Suspense.

Specific provision made on the loan principal is recorded as:
Debit 66 11 00 Doubtful and Bad Debts on Principal
Credit 17 40 00 Allowance for Loans and Lease losses – Loans to banks

The balance of AIR – sub - standard is also transferred to AIR – Doubtful.
Debit 23 40 00 AIR – Doubtful Loans and Placements with Banks
Credit 23 30 00 AIR – Sub –standard Loans and Placements with Banks

The balance of sub - standard loan is transferred to Doubtful loans.
Debit 12 30 00 Doubtful Loans and Placements with Banks
Credit 12 20 00 Sub – standards Loans and Placements with banks

Daily interest accrued as from the date of classification into Doubtful is taken to Interest Income in Suspense, not to interest income.
Debit 23 40 00 AIR – Doubtful Loans and Placements with Banks
Credit 38 50 00 Interest Income in Suspense

When payment of all overdue interest in cash or debit to bank’s account is made, then only is Interest Income in Suspense taken to income as follows:
Debit 11 50 00 Due from Banks
Credit 23 40 00 AIR – Doubtful loans and Placements with Banks

Debit 38 50 00 Interest Income in Suspense
Credit 51 40 00 Interest Income – Doubtful loans and Placements with Banks

Account 12 31 10 Doubtful Loans Short term loans to Banks Resident

Daily interest should be accrued as:
Debit 23 41 10 AIR – Doubtful Loans –short term loans to banks –resident
Credit 38 50 00 Interest Income in Suspense

Account 12 31 20 Doubtful Loans short term loans to banks – Non Resident

Daily interest should be accrued as:
Debit 23 41 20 AIR - Doubtful Loans short term loans to banks – Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 31 30 Doubtful Loans short term loans to HO/Branches – Resident

Daily interest should be accrued as:
Debit 23 41 30 AIR - Doubtful Loans short term loans to HO/Branches - Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 31 40 Doubtful Loans short term loans to HO/Branches – Non Resident

Daily interest should be accrued as:
Debit 23 41 40 AIR - Doubtful Loans short term loans to HO/Branches – Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 31 50 Doubtful Loans short term loans to OFI - Resident

Daily interest should be accrued as:
Debit 23 41 50 AIR - Doubtful Loans short term loans to OFI - Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 31 60 Doubtful Loans short term loans to OFI - Non Resident

Daily interest should be accrued as:
Debit 23 41 60 AIR - Doubtful Loans short term loans to OFI - Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 31 70 Doubtful Loans short term loans to MFI - Resident

Daily interest should be accrued as:
Debit 23 41 70 AIR - Doubtful Loans short term loans to MFI - Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 32 10 Doubtful Loans – Long term loans to Banks Resident

Daily interest should be accrued as:
Debit 23 42 10 AIR – Doubtful Loans –Long term loans to banks –Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 32 20 Doubtful Loans Long term loans to banks – Non Resident

Daily interest should be accrued as:
Debit 23 42 20 AIR - Doubtful Loans Long term loans to banks – Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 32 30 Doubtful Loans Long term loans to HO/Branches – Resident

Daily interest should be accrued as:
Debit 23 42 30 AIR - Doubtful Loans Long term loans to HO/Branches - Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 32 40 Doubtful Loans Long term loans to HO/Branches – Non Resident

Daily interest should be accrued as:
Debit 23 42 40 AIR - Doubtful Loans Long term loans to HO/Branches – Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 32 50 Doubtful Loans Long term loans to OFI - Resident

Daily interest should be accrued as:
Debit 23 42 50 AIR - Doubtful Loans Long term loans to OFI - Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 32 60 Doubtful Loans Long term loans to OFI - Non Resident

Daily interest should be accrued as:
Debit 23 42 60 AIR - Doubtful Loans Long term loans to OFI - Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 32 70 Doubtful Loans Long term loans to MFI - Resident

Daily interest should be accrued as:
Debit 23 42 70 AIR - Doubtful Loans Long term loans to MFI - Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 33 10 Doubtful Deposit Short term Time deposit with Banks Resident

Daily interest should be accrued as:
Debit 23 43 10 AIR – Doubtful Deposit –Short term Time deposit with banks – Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 33 20 Doubtful Deposit Short term Time deposit with banks – Non Resident

Daily interest should be accrued as:
Debit 23 43 20 AIR - Doubtful Deposit Short term Time deposit with banks – Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 33 30 Doubtful Deposit Short term Time deposit with HO/Branches – Resident

Daily interest should be accrued as:
Debit 23 43 30 AIR - Doubtful Deposit Short term Time deposit with HO/Branches - Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 33 40 Doubtful Deposit Short term Time deposit with HO/Branches – Non Resident

Daily interest should be accrued as:
Debit 23 43 40 AIR - Doubtful Deposit Short term Time deposit with HO/Branches – Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 33 50 Doubtful Deposit Short term Time deposit with OFI - Resident

Daily interest should be accrued as:
Debit 23 43 50 AIR - Doubtful Deposit Short term Time deposit with OFI - Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 33 60 Doubtful Deposit Short term Time deposit with OFI - Non Resident

Daily interest should be accrued as:
Debit 23 43 60 AIR - Doubtful Deposit Short term Time deposit with OFI - Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 33 70 Doubtful Deposit Short term Time deposit with MFI - Resident

Daily interest should be accrued as:
Debit 23 43 70 AIR - Doubtful Deposit Short term Time deposit with MFI - Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 34 10 Doubtful Deposit Long term Time deposit with Banks Resident

Daily interest should be accrued as:
Debit 23 44 10 AIR – Doubtful Deposit –Long term Time deposit with banks – Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 34 20 Doubtful Deposit Long term Time deposit with banks – Non Resident

Daily interest should be accrued as:
Debit 23 44 20 AIR - Doubtful Deposit Long term Time deposit with banks – Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 34 30 Doubtful Deposit Long term Time deposit with HO/Branches – Resident

Daily interest should be accrued as:
Debit 23 44 30 AIR - Doubtful Deposit Long term Time deposit with HO/Branches-Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 34 40 Doubtful Deposit Long term Time deposit with HO/Branches – Non Resident

Daily interest should be accrued as:
Debit 23 44 40 AIR - Doubtful Deposit Long term Time deposit with HO/Branches – Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 34 50 Doubtful Deposit Long term Time deposit with OFI - Resident

Daily interest should be accrued as:
Debit 23 44 50 AIR - Doubtful Deposit Long term Time deposit with OFI - Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 34 60 Doubtful Deposit Long term Time deposit with OFI - Non Resident

Daily interest should be accrued as:
Debit 23 44 60 AIR - Doubtful Deposit Long term Time deposit with OFI - Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 34 70 Doubtful Deposit Long term Time deposit with MFI - Resident

Debit 23 44 70 AIR - Doubtful Deposit Long term Time deposit with MFI - Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 35 10 Doubtful Loans – Overdrafts to banks –Resident

Daily interest should be accrued as:
Debit 23 45 10 AIR - Doubtful Loans – Overdrafts to banks –Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 35 20 Doubtful Loans – Overdrafts to OFIs –Resident

Daily interest should be accrued as:
Debit 23 45 20 AIR - Doubtful Loans – Overdrafts to OFIs –Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 35 30 Doubtful Loans – Overdrafts to Licensed MFIs –Resident

Daily interest should be accrued as:
Debit 23 45 30 AIR - Doubtful Loans – Overdrafts to Licensed MFIs –Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 36 10 Doubtful Deposits – Savings Deposits with banks –Resident

Daily interest should be accrued as:
Debit 23 46 10 AIR - Doubtful Deposits – Savings Deposits with banks –Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 36 20 Doubtful Deposits – Savings Deposits with OFIs –Resident

Daily interest should be accrued as:
Debit 23 46 20 AIR - Doubtful Deposits – Savings Deposits with OFIs –Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 36 30 Doubtful Deposits – Savings Deposits with Licensed MFIs–Resident

Daily interest should be accrued as:
Debit 23 46 30 AIR - Doubtful Deposits – Savings Deposits with Licensed MFIs–Resident
Credit 38 50 00 Interest Income in Suspense

General Principles

This section comprises of loss loans, time deposits, overdrafts and saving deposits to banks, head office, OFIs and Licensed MFIs. Loss loans are defined in Annex I Prakas No B7-00-51 on the classification of and provisioning for bad and Loss debts dated February 17, 2000. Loans become loss when the interest or principal repayment is overdue over 360 days. The mandatory level of specific provision for loss loans is 100%. However, a bank may be allowed to provide less than 100% if it can prove the actual market value of the collateral to the NBC, on a case by case basis, Under Article 6 of the said Prakas, it is stated that ‘In accordance with the accrual basis of accounting, interest accrued on a customer shall be recorded as income in the profit and loss account. However, such a procedure is not followed for assets once they have been classified as sub-standard, doubtful or loss. In these circumstances, interest accrued shall be credited to an account for Interest Income in Suspense.

Specific provision made is recorded as:
Debit 66 11 00 Doubtful and Bad Debts on Principal
Credit 17 40 00 Allowance for loans and Lease Losses – Loans to banks

The balance of AIR – Doubtful Loans and Placements with Banks is transferred to AIR – Loss Loans and Placements with Banks.
Debit 25 50 00 AIR – Loss Loans and Placements with Banks
Credit 23 40 00 AIR – Doubtful Loans and Placements with Banks

The balance of Doubtful Loans and Placements with Banks is transferred to Loss Loans and Placements with Banks.
Debit 12 40 00 Loss Loans and Placements with Banks
Credit 12 30 00 Doubtful Loans and Placements with Banks

Daily interest accrued as from the date of classification into loss loans and placements with banks is taken to Interest Income in Suspense, not to interest income.
Debit 25 50 00 AIR – Loss Loans and Placements with Banks
Credit 38 50 00 Interest Income in Suspense

When payment of all overdue interest in cash or debit to bank’s account is made,
Debit 11 50 00 Due from Banks
Credit 23 50 00 AIR – Loss loans and Placements with Banks
Debit 38 50 00 Interest Income in Suspense
Credit 51 50 00 Interest Income – Loss loans and Placements with Banks

Interest Income in Suspense account 38 50 00 is categorized by currency. Banks may sub – classify the account into Interest Income in Suspense – Banks and

Interest – in – Suspense – Customers. They may also want to identify such items by name of counter – party.

Allowance for loans and Lease Losses – Loans to Banks are not sub-classified into sub-standard, doubtful and loss categories.

Account 12 41 10 Loss Loans Short term loans to Banks Resident

Daily interest should be accrued as:
Debit 23 51 10 AIR – Loss Loans –short term loans to banks–resident
Credit 38 50 00 Interest Income in Suspense

Account 12 41 20 Loss Loans short term loans to banks–Non Resident

Daily interest should be accrued as:
Debit 23 51 20 AIR - Loss Loans short term loans to banks–Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 41 30 Loss Loans short term loans to HO/Branches–Resident

Daily interest should be accrued as:
Debit 23 51 30 AIR - Loss Loans short term loans to HO/Branches-Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 41 40 Loss Loans short term loans to HO/Branches–Non Resident

Daily interest should be accrued as:
Debit 23 51 40 AIR - Loss Loans short term loans to HO/Branches–Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 41 50 Loss Loans short term loans to OFI - Resident

Daily interest should be accrued as:
Debit 23 51 50 AIR - Loss Loans short term loans to OFI - Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 31 60 Loss Loans short term loans to OFI - Non Resident

Daily interest should be accrued as:
Debit 23 51 60 AIR - Loss Loans short term loans to OFI - Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 41 70 Loss Loans short term loans to MFI - Resident

Daily interest should be accrued as:
Debit 23 51 70 AIR - Loss Loans short term loans to MFI - Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 42 10 Loss Loans – Long term loans to Banks Resident

Daily interest should be accrued as:
Debit 23 52 10 AIR – Loss Loans –Long term loans to banks –Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 42 20 Loss Loans Long term loans to banks – Non Resident

Daily interest should be accrued as:
Debit 23 52 20 AIR - Loss Loans Long term loans to banks – Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 42 30 Loss Loans Long term loans to HO/Branches – Resident

Daily interest should be accrued as:
Debit 23 52 30 AIR - Loss Loans Long term loans to HO/Branches - Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 42 40 Loss Loans Long term loans to HO/Branches – Non Resident

Daily interest should be accrued as:
Debit 23 52 40 AIR - Loss Loans Long term loans to HO/Branches – Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 42 50 Loss Loans Long term loans to OFI - Resident

Daily interest should be accrued as:
Debit 23 52 50 AIR - Loss Loans Long term loans to OFI - Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 42 60 Loss Loans Long term loans to OFI - Non Resident

Daily interest should be accrued as:
Debit 23 52 60 AIR - Loss Loans Long term loans to OFI - Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 42 70 Loss Loans Long term loans to MFI - Resident

Daily interest should be accrued as:
Debit 23 52 70 AIR - Loss Loans Long term loans to MFI - Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 43 10 Loss Deposit Short term Time deposit with Banks Resident

Daily interest should be accrued as:
Debit 23 53 10 AIR – Loss Deposit –Short term Time deposit with banks –Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 43 20 Loss Deposit Short term Time deposit with banks – Non Resident

Daily interest should be accrued as:
Debit 23 53 20 AIR - Loss Deposit Short term Time deposit with banks – Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 43 30 Loss Deposit Short term Time deposit with HO/Branches–Resident

Daily interest should be accrued as:
Debit 23 53 30 AIR - Loss Deposit Short term Time deposit with HO/Branches - Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 43 40 Loss Deposit Short term Time deposit with HO/Branches–Non Resident

Daily interest should be accrued as:
Debit 23 53 40 AIR - Loss Deposit Short term Time deposit with HO/Branches –Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 43 50 Loss Deposit Short term Time deposit with OFI - Resident

Daily interest should be accrued as:
Debit 23 53 50 AIR - Loss Deposit Short term Time deposit with OFI - Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 43 60 Loss Deposit Short term Time deposit with OFI - Non Resident

Daily interest should be accrued as:
Debit 23 53 60 AIR - Loss Deposit Short term Time deposit with OFI - Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 43 70 Loss Deposit Short term Time deposit with MFI - Resident

Daily interest should be accrued as:
Debit 23 53 70 AIR - Loss Deposit Short term Time deposit with MFI - Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 44 10 Loss Deposit Long term Time deposit with Banks Resident

Daily interest should be accrued as:
Debit 23 54 10 AIR – Loss Deposit –Long term Time deposit with banks –Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 44 20 Loss Deposit Long term Time deposit with banks – Non Resident

Daily interest should be accrued as:
Debit 23 54 20 AIR - Loss Deposit Long term Time deposit with banks – Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 44 30 Loss Deposit Long term Time deposit with HO/Branches–Resident

Daily interest should be accrued as:
Debit 23 54 30 AIR - Loss Deposit Long term Time deposit with HO/Branches - Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 44 40 Loss Deposit Long term Time deposit with HO/Branches–Non Resident

Daily interest should be accrued as:
Debit 23 54 40 AIR - Loss Deposit Long term Time deposit with HO/Branches –Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 44 50 Loss Deposit Long term Time deposit with OFI - Resident

Daily interest should be accrued as:
Debit 23 54 50 AIR - Loss Deposit Long term Time deposit with OFI - Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 44 60 Loss Deposit Long term Time deposit with OFI - Non Resident

Daily interest should be accrued as:
Debit 23 54 60 AIR - Loss Deposit Long term Time deposit with OFI - Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 44 70 Loss Deposit Long term Time deposit with MFI - Resident

Debit 23 54 70 AIR - Loss Deposit Long term Time deposit with MFI - Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 45 10 Loss Loans – Overdrafts to banks –Resident

Daily interest should be accrued as:
Debit 23 55 10 AIR - Loss Loans – Overdrafts to banks –Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 45 20 Loss Loans – Overdrafts to OFIs –Resident

Daily interest should be accrued as:
Debit 23 55 20 AIR - Loss Loans – Overdrafts to OFIs –Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 45 30 Loss Loans – Overdrafts to Licensed MFIs –Resident

Daily interest should be accrued as:
Debit 23 55 30 AIR - Loss Loans – Overdrafts to Licensed MFIs –Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 46 10 Loss Deposits – Savings Deposits with banks –Resident

Daily interest should be accrued as:
Debit 23 56 10 AIR - Loss Deposits – Savings Deposits with banks –Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 46 20 Loss Deposits – Savings Deposits with OFIs –Resident

Daily interest should be accrued as:
Debit 23 56 20 AIR - Loss Deposits – Savings Deposits with OFIs –Resident
Credit 38 50 00 Interest Income in Suspense

Account 12 46 30 Loss Deposits – Savings Deposits with Licensed MFIs –Resident

Daily interest should be accrued as:
Debit 23 56 30 AIR - Loss Deposits – Savings Deposits with Licensed MFIs –Resident
Credit 38 50 00 Interest Income in Suspense

General Principles

The COA provides for two types of accounts: inter-bank funds sold (sometimes termed as overnight lending) and securities purchased under agreement to resell. Overnight lending made to another bank is usually confirmed by way of a written confirmation stating the amount, rate, value and maturity dates. Securities purchased under agreement to resell consist of securities purchased from the money market for the purpose of managing liquidity with an agreement to sell the same securities on an agreed date. The purchaser of such a money market instrument is basically a lender of funds. The purpose of these money market instruments is to enable banks to better manage excess or shortage of liquidity because of the Central Bank’s reserve requirements. In practice, most of these securities are likely to be denominated in the local currency.

These instruments will apply only when there is a market for inter-bank funds. As at the date of writing, no inter – bank or money market exists in Cambodia.

The accounting entries to record the purchase of these money market instruments are:
Debit 12 50 00 Inter – bank funds Sold
Credit 11 40 00 Due from NBC

Debit 12 60 00 Securities Purchased Under Agreement to resell
Credit 11 40 00 Due from NBC

Account 12 51 00 Inter-bank funds sold-banks-resident

Daily interest accrual is made to:
Debit 23 61 00 AIR – Inter-bank funds sold- banks-resident
Credit 51 61 00 Interest Income – Inter-bank funds sold-banks-resident

Account 12 52 00 Inter-bank funds sold-OFIs-resident

Daily interest accrual is made to:
Debit 23 62 00 AIR – Inter-bank funds sold- OFIs -resident
Credit 51 62 00 Interest Income – Inter-bank funds sold-OFIs-resident

Account 12 61 00 Securities Purchased under agreement to resell-banks- resident

Daily interest accrual is made to:
Debit 23 71 00 AIR- Securities Purchased under agreement to resell-banks- resident
Credit 51 71 00 Interest income- Securities Purchased under agreement to resell-banks-resident

Account 12 62 00 Securities Purchased under agreement to resell-banks- non resident

Daily interest accrual is made to:
Debit 23 72 00 AIR- Securities Purchased under agreement to resell-banks-non resident
Credit 51 72 00 Interest income- Securities Purchased under agreement to resell-banks-non resident

Account 12 63 00 Securities Purchased under agreement to resell-OFIs- resident

Daily interest accrual is made to:
Debit 23 73 00 AIR- Securities Purchased under agreement to resell-OFIs- resident
Credit 51 73 00 Interest income- Securities Purchased under agreement to resell-OFIs-resident

Account 12 64 00 Securities Purchased under agreement to resell-OFIs-non resident

Daily interest accrual is made to:
Debit 23 74 00 AIR- Securities Purchased under agreement to resell-OFIs-non resident
Credit 51 74 00 Interest income- Securities Purchased under agreement to resell-banks-non resident

Account 12 65 00 Securities Purchased under agreement to resell-Private Sector-Resident

Daily interest accrual is made to:
Debit 23 75 00 AIR- Securities Purchased under agreement to resell-Private Sector-Resident
Credit 51 75 00 Interest income- Securities Purchased under agreement to resell-Private Sector-Resident

Account 12 66 00 Securities Purchased under agreement to resell-Private Sector-Non Resident

Daily interest accrual is made to:
Debit 23 76 00 AIR- Securities Purchased under agreement to resell-Private Sector-Non Resident
Credit 51 76 00 Interest income- Securities Purchased under agreement to resell-Private Sector-Non Resident

Account 12 67 00 Securities Purchased under agreement to resell- Government Entities- Resident

Daily interest accrual is made to:
Debit 23 77 00 AIR- Securities Purchased under agreement to resell- Government Entities- Resident
Credit 51 77 00 Interest income- Securities Purchased under agreement to resell-Government Entities- Resident

Account 12 68 00 Securities Purchased under agreement to resell-Foreign Government-Non resident

Daily interest accrual is made to:
Debit 23 78 00 AIR- Securities Purchased under agreement to resell-Foreign Government-Non resident
Credit 51 78 00 Interest income- Securities Purchased under agreement to resell-Foreign Government-Non resident

General Principles

This section applies to standard loans and lease financing given by the bank to Royal Government, Provinces and Communes Councils, Foreign Governments, Private Sector, State Enterprise and Individuals. Standard loans are performing loans. Interest payments and principal repayments are prompt and not overdue by over 90 days. Please refer to Prakas B 7-00-51 February 17, 2000 as revised by Prakas 7-02-145 dated June 7, 2002.

Loan types include overdrafts, commercial loans, equipment loans, real estate mortgage loans, lease financing, bankers’ acceptances, other bills of exchange, trust receipts, credit revolving, bank employees’ loans, credit card loans, motor vehicle, other consumer, and other commercial loans.

A banker’s acceptance is a time draft drawn on and accepted by a bank. The drawee bank indicates its acceptance by stamping the word “accepted” , dating and signing it. The accepted draft can be held to maturity or discounted in the secondary market, where one exists.

A bill of exchange is a negotiable instrument where there is a drawer, drawee and the payee. This instrument is used for import and export transactions. There are specialized bills of exchange such as banker’s checks where the drawer and the drawee are the same party. A personal check is also a special form of bill of exchange, where the drawer is the account holder and the drawee is the bank. These two specialized forms of bill of exchange are covered earlier on. The general ledger account bill of exchange records all bills receivable under letter of credit or without letter of credit that the bank has received from the negotiating bank for which it has paid payment. Such bills receivable are due and payable by customers.

A trust receipt is an import loan granted to the importer on the trust that proceeds of the sale of the goods will go towards paying the bank. When documents are presented by the negotiating bank to the issuing bank of the letter of credit, the importer’s bank is required to make payment if the draft is at sight or at the end of the usance period. The importer’s bank can either debit the customer’s current account or grant him a trust receipt loan.

A revolving credit is a line of credit given to a customer that reverts to its original line limit once the draw – down is fully paid. The customer is again able to reuse the credit line again.

Banks may sub – classify loans accounts into further sub - accounts, for instance by industry groups or maturities, using a suffix appended to the main 6 – digit main general ledger account number, to obtain information for segmental information and maturity analysis required by the Prakas on annual audit.

To apply COA for loan accounting, the bank first determines whether a given loan is to RGC, Commercial Loan or Consumer Loan. Please note the segregation between loan types 131, 132 and 133. Next, the bank determines the loan type, sector, duration, residency and currency before arriving at the correct COA number.

The definition on related parties can be found in articles 49 and 50 of the Law on Banking and Financial Institutions. Resident and Non-resident definitions are consistent with those given in the monthly report. Short-term refers to one year or below. Long – term is not short – term.

The accounts 13 27 40/50/60 respectively are used to record bills of exchange (BoE) for private sector resident, non – resident and state enterprise. Banks may segregate between import BoE, export BoE as well as the type of bills transactions, for instance sight or usance, or whether the documents are under letters of credit or not and whether they are clean or documentary bills. Banks may create sub – accounts to differentiate these types of transactions involving BoE. Specific solutions were earlier on given under Problems and solutions.

Loans secured by a mortgage on land where the purpose of the loan is for trading or commercial purposes should not be classified as real estate mortgage loans. Real estate mortgage loans are loans given by the bank for the financing of purchase, sale and development of real estate. The COA allows three kinds of real estate mortgage loans: private sector, state enterprise and individuals.

Please note that account 17 00 00 Allowance for Loans and Lease Losses (ALLL) includes account 17 40 00 Loans to Banks. The COA for allowance for loans and lease losses does not follow the same nomenclature as standard loans. They are classified by type without sub-classification by residency or duration. For financial institutions, three categories are given: banks, OFIs and Licensed MFIs.

Account 13 11 10 Standard Loans – Short term Loans to Royal Government of Cambodia

Daily accrual of interest to be made to:
Debit 25 11 10 AIR- Standard Loans – Short term Loans to Royal Government of Cambodia
Credit 53 11 10 Interest Income- Standard Loans – Short term Loans to Royal Government of Cambodia

Account 13 11 20 Standard Loans – Long term Loans to Royal Government of Cambodia

Daily accrual of interest to be made to:
Debit 25 11 20 AIR- Standard Loans – Long term Loans to Royal Government of Cambodia
Credit 53 11 20 Interest Income- Standard Loans – Long term Loans to Royal Government of Cambodia

Account 13 12 10 Standard Loans – Short term Loans to Provinces and Commune Councils

Daily accrual of interest to be made to:
Debit 25 12 10 AIR- Standard Loans – Short term Loans to Provinces and Commune Councils
Credit 53 12 10 Interest Income- Standard Loans – Short term Loans to Provinces and Commune Councils

Account 13 12 20 Standard Loans – Long term Loans to Provinces and Commune Councils

Daily accrual of interest to be made to:
Debit 25 12 20 AIR- Standard Loans – Long term Loans to Provinces and Commune Councils
Credit 53 12 20 Interest Income- Standard Loans – Long term Loans to Provinces and Commune Councils

Account 13 13 10 Standard Loans – Short term Loans to Foreign Governments

Daily accrual of interest to be made to:
Debit 25 13 10 AIR- Standard Loans – Short term Loans to Foreign Governments
Credit 53 11 10 Interest Income- Standard Loans – Short term Loans to Foreign Governments

Account 13 13 20 Standard Loans – Long term Loans to Foreign Governments

Daily accrual of interest to be made to:
Debit 25 13 20 AIR- Standard Loans – Long term Loans to Foreign Governments
Credit 53 13 20 Interest Income- Standard Loans – Long term Loans to Foreign Governments

Account 13 21 10 Standard Loans – Overdraft (Permanent Line of Credit)- Private Sector-Resident

Daily accrual of interest to be made to:
Debit 25 21 10 AIR- Standard Loans – Overdraft (Permanent Line of Credit)- Private Sector-Resident
Credit 53 21 10 Interest Income- Standard Loans – Overdraft (Permanent Line of Credit)-Private Sector-Resident

Account 13 21 20 Standard Loans – Overdraft (Permanent Line of Credit)- Private Sector-Non Resident

Daily accrual of interest to be made to:
Debit 25 21 20 AIR- Standard Loans – Overdraft (Permanent Line of Credit)- Private Sector-Non Resident
Credit 53 21 20 Interest Income- Standard Loans – Overdraft (Permanent Line of Credit)-Private Sector-Non Resident

Account 13 21 30 Standard Loans – Overdraft (Permanent Line of Credit)- State Enterprise-Resident

Daily accrual of interest to be made to:
Debit 25 21 30 AIR- Standard Loans – Overdraft (Permanent Line of Credit)- State Enterprise-Resident
Credit 53 21 30 Interest Income- Standard Loans – Overdraft (Permanent Line of Credit)-State Enterprise-Resident

Account 13 22 10 Standard Loans – Short term Commercial Loans-Private Sector-Resident

Daily accrual of interest to be made to:
Debit 25 22 10 AIR- Standard Loans – Short term Commercial Loans-Private Sector-Resident
Credit 53 22 10 Interest Income- Standard Loans – Short term Commercial Loans-Private Sector-Resident

Account 13 22 20 Standard Loans – Short term Commercial Loans-Private Sector-Non Resident

Daily accrual of interest to be made to:
Debit 25 22 20 AIR- Standard Loans – Short term Commercial Loans-Private Sector-Non Resident
Credit 53 22 20 Interest Income- Standard Loans – Short term Commercial Loans-Private Sector-Non Resident

Account 13 22 30 Standard Loans – Short term Commercial Loans-State Enterprise-Resident

Daily accrual of interest to be made to:
Debit 25 22 30 AIR- Standard Loans – Short term Commercial Loans-State Enterprise-Resident
Credit 53 22 30 Interest Income- Standard Loans – Short term Commercial Loans-State Enterprise-Resident

Account 13 23 10 Standard Loans – Equipment Loans-Private Sector- Resident

Daily accrual of interest to be made to:
Debit 25 23 10 AIR- Standard Loans – Equipment Loans-Private Sector-Resident
Credit 53 23 10 Interest Income- Standard Loans – Equipment Loans-Private Sector-Resident

Account 13 23 20 Standard Loans – Equipment Loans-Private Sector-Non Resident

Daily accrual of interest to be made to:
Debit 25 23 20 AIR- Standard Loans – Equipment Loans-Private Sector-Non Resident
Credit 53 23 20 Interest Income- Standard Loans – Equipment Loans-Private Sector-Non Resident

Account 13 23 30 Standard Loans – Equipment Loans-State Enterprise- Resident

Daily accrual of interest to be made to:
Debit 25 23 30 AIR- Standard Loans – Equipment Loans-State Enterprise- Resident
Credit 53 23 30 Interest Income- Standard Loans – Equipment Loans-State Enterprise-Resident

Account 13 23 40 Standard Loans – Real Estate Mortgage Loans-Private Sector-Resident

Daily accrual of interest to be made to:
Debit 25 23 40 AIR- Standard Loans – Real Estate Mortgage Loans-Private Sector-Resident
Credit 53 23 40 Interest Income- Standard Loans – Real Estate Mortgage Loans- Private Sector-Resident

Account 13 23 50 Standard Loans – Real Estate Mortgage Loans-Private Sector-Non Resident

Daily accrual of interest to be made to:
Debit 25 23 50 AIR- Standard Loans – Real Estate Mortgage Loans-Private Sector-Non Resident
Credit 53 23 50 Interest Income- Standard Loans – Real Estate Mortgage Loans- Private Sector-Non Resident

Account 13 23 60 Standard Loans – Real Estate Mortgage Loans-State Enterprise-Resident

Daily accrual of interest to be made to:
Debit 25 23 60 AIR- Standard Loans – Real Estate Mortgage Loans-State Enterprise-Resident
Credit 53 23 60 Interest Income- Standard Loans – Real Estate Mortgage Loans- State Enterprise-Resident

Account 13 23 70 Standard Loans – Other Long Term Loans-Private Sector- Resident

Daily accrual of interest to be made to:
Debit 25 23 70 AIR- Standard Loans – Other Long Term Loans-Private Sector- Resident
Credit 53 23 70 Interest Income- Standard Loans – Other Long Term Loans- Private Sector-Resident

Account 13 23 80 Standard Loans – Other Long Term Loans-Private Sector- Non Resident

Daily accrual of interest to be made to:
Debit 25 23 80 AIR- Standard Loans – Other Long Term Loans-Private Sector- Non Resident
Credit 53 23 80 Interest Income- Standard Loans – Other Long Term Loans- Private Sector-Non Resident

Account 13 23 90 Standard Loans – Other Long Term Loans-State Enterprise-Resident

Daily accrual of interest to be made to:
Debit 25 23 90 AIR- Standard Loans – Other Long Term Loans-State Enterprise- Resident
Credit 53 23 90 Interest Income- Standard Loans – Other Long Term Loans- State Enterprise-Resident

Account 13 24 10 Standard Loans – Lease Financing Receivable-Private Sector-Resident

Daily accrual of interest to be made to:
Debit 25 24 10 AIR- Standard Loans – Lease Financing Receivable-Private Sector-Resident
Credit 53 24 10 Interest Income- Standard Loans – Lease Financing Receivable- Private Sector-Resident

Account 13 24 20 Standard Loans – Lease Financing Receivable-Private Sector-Non Resident

Daily accrual of interest to be made to:
Debit 25 24 20 AIR- Standard Loans – Lease Financing Receivable-Private Sector-Non Resident
Credit 53 24 20 Interest Income- Standard Loans – Lease Financing Receivable- Private Sector-Non Resident

Account 13 24 30 Standard Loans – Lease Financing Receivable-State Enterprise-Resident

Daily accrual of interest to be made to:
Debit 25 24 30 AIR- Standard Loans – Lease Financing Receivable-State Enterprise-Resident
Credit 53 24 30 Interest Income- Standard Loans – Lease Financing Receivable- State Enterprise-Resident

Account 13 25 10 Standard Loans – Loans to related parties-Private Sector- Resident

Daily accrual of interest to be made to:
Debit 25 25 10 AIR- Standard Loans – Loans to related parties-Private Sector- Resident
Credit 53 25 10 Interest Income- Standard Loans – Loans to related parties- Private Sector-Resident

Account 13 25 20 Standard Loans – Loans to related parties-Private Sector- Non Resident

Daily accrual of interest to be made to:
Debit 25 25 20 AIR- Standard Loans – Loans to related parties-Private Sector- Non Resident
Credit 53 25 20 Interest Income- Standard Loans – Loans to related parties- Private Sector-Non Resident

Account 13 26 10 Standard Loans – Other Commercial Loans-Private Sector-Resident

Daily accrual of interest to be made to:
Debit 25 26 10 AIR- Standard Loans – Other Commercial Loans-Private Sector- Resident
Credit 53 26 10 Interest Income- Standard Loans – Other Commercial Loans- Private Sector-Resident

Account 13 26 20 Standard Loans – Other Commercial Loans-Private Sector-Non Resident

Daily accrual of interest to be made to:
Debit 25 26 20 AIR- Standard Loans – Other Commercial Loans-Private Sector- Non Resident
Credit 53 26 20 Interest Income- Standard Loans – Other Commercial Loans- Private Sector-Non Resident

Account 13 27 10 Standard Loans – Bankers’ Acceptances - Private Sector–Resident

Daily accrual of interest to be made to:
Debit 25 27 10 AIR- Standard Loans – Bankers’ Acceptances - Private Sector–Resident
Credit 53 27 10 Interest Income - Standard Loans – Bankers’ Acceptances - Private Sector – Resident

Account 13 27 20 Standard Loans – Bankers’ Acceptances - Private Sector–Non - Resident

Daily accrual of interest to be made to:
Debit 25 27 20 AIR- Standard Loans – Bankers’ Acceptances - Private Sector–Non - Resident
Credit 53 27 20 Interest Income - Standard Loans – Bankers’ Acceptances - Private Sector – Non - Resident

Account 13 27 30 Standard Loans – Bankers’ Acceptances – State Enterprise – Resident

Daily accrual of interest to be made to:
Debit 25 27 30 AIR- Standard Loans – Bankers’ Acceptances – State Enterprise– Resident
Credit 53 27 30 Interest Income - Standard Loans – Bankers’ Acceptances–State Enterprise – Resident

Account 13 27 40 Standard Loans – Other Bill of Exchange (BoE)-Private Sector-Resident

Daily accrual of interest to be made to:
Debit 25 27 40 AIR- Standard Loans – Other Bill of Exchange (BoE)-Private Sector-Resident
Credit 53 27 40 Interest Income- Standard Loans – Other Bill of Exchange (BoE)- Private Sector-Resident

Account 13 27 50 Standard Loans – Other Bill of Exchange (BoE)-Private Sector-Non Resident

Daily accrual of interest to be made to:
Debit 25 27 50 AIR- Standard Loans – Other Bill of Exchange (BoE)-Private Sector-Non Resident
Credit 53 27 50 Interest Income- Standard Loans – Other Bill of Exchange (BoE)- Private Sector-Non Resident

Account 13 27 60 Standard Loans – Other Bill of Exchange (BoE)-State Enterprise-Resident

Daily accrual of interest to be made to:
Debit 25 27 60 AIR- Standard Loans – Other Bill of Exchange (BoE)-State Enterprise-Resident
Credit 53 27 60 Interest Income- Standard Loans – Other Bill of Exchange (BoE)- State Enterprise-Resident

Account 13 27 70 Standard Loans – Trust Receipt-Private Sector-Resident

Daily accrual of interest to be made to:
Debit 25 27 70 AIR- Standard Loans – Trust Receipt-Private Sector-Resident
Credit 53 27 70 Interest Income- Standard Loans – Trust Receipt-Private Sector- Resident

Account 13 27 80 Standard Loans – Trust Receipt-Private Sector-Non Resident

Daily accrual of interest to be made to:
Debit 25 27 80 AIR- Standard Loans – Trust Receipt-Private Sector-Non Resident
Credit 53 27 80 Interest Income- Standard Loans – Trust Receipt-Private Sector- Non Resident

Account 13 27 90 Standard Loans – Trust Receipt-State Enterprise- Resident

Daily accrual of interest to be made to:
Debit 25 27 90 AIR- Standard Loans – Trust Receipt-State Enterprise-Resident
Credit 53 27 90 Interest Income- Standard Loans – Trust Receipt-State Enterprise-Resident

Account 13 28 10 Standard Loans – Credit Revolving-Private Sector- Resident

Daily accrual of interest to be made to:
Debit 25 28 10 AIR- Standard Loans – Credit Revolving-Private Sector-Resident
Credit 53 28 10 Interest Income- Standard Loans – Credit Revolving-Private Sector-Resident

Account 13 28 20 Standard Loans – Credit Revolving-Private Sector-Non Resident

Daily accrual of interest to be made to:
Debit 25 28 20 AIR- Standard Loans – Credit Revolving-Private Sector-Non Resident
Credit 53 28 20 Interest Income- Standard Loans – Credit Revolving-Private Sector-Non Resident

Account 13 28 30 Standard Loans – Credit Revolving-State Enterprise- Resident

Daily accrual of interest to be made to:
Debit 25 28 30 AIR- Standard Loans – Credit Revolving-State Enterprise- Resident
Credit 53 28 30 Interest Income- Standard Loans – Credit Revolving-State Enterprise-Resident

Account 13 31 10 Standard Loans – Real Estate Mortgage Loans-Individual- Resident

Daily accrual of interest to be made to:
Debit 25 31 10 AIR- Standard Loans – Real Estate Mortgage Loans-Individual- Resident
Credit 53 31 10 Interest Income- Standard Loans – Real Estate Mortgage Loans- Individual-Resident

Account 13 31 20 Standard Loans – Bank Employee-Resident

Daily accrual of interest to be made to:
Debit 25 31 20 AIR- Standard Loans – Bank Employee-Resident
Credit 53 31 20 Interest Income- Standard Loans – Bank Employee-Resident

Account 13 32 10 Standard Loans – Credit Cards Loans-Individuals- Resident

Daily accrual of interest to be made to:
Debit 25 32 10 AIR- Standard Loans – Credit Cards Loans-Individuals-Resident
Credit 53 32 10 Interest Income- Standard Loans – Credit Cards Loans- Individuals-Resident

Account 13 32 20 Standard Loans – Credit Cards Loans-Individuals-Non Resident

Daily accrual of interest to be made to:
Debit 25 32 20 AIR- Standard Loans – Credit Cards Loans-Individuals-Non Resident
Credit 53 32 20 Interest Income- Standard Loans – Credit Cards Loans- Individuals-Non Resident

Account 13 33 10 Standard Loans – Credit Revolving-Individuals-Resident

Daily accrual of interest to be made to:
Debit 25 33 10 AIR- Standard Loans – Credit Revolving- Individuals Resident
Credit 53 33 10 Interest Income- Standard Loans – Credit Revolving- Individuals Resident

Account 13 33 20 Standard Loans – Credit Revolving- Individuals Non Resident

Daily accrual of interest to be made to:
Debit 25 33 20 AIR- Standard Loans – Credit Revolving- Individuals Non Resident
Credit 53 33 20 Interest Income- Standard Loans – Credit Revolving- Individuals Non Resident

Account 13 34 10 Standard Loans – Motor Vehicle Loans- Individuals Resident

Daily accrual of interest to be made to:
Debit 25 34 10 AIR- Standard Loans – Motor Vehicle Loans- Individuals Resident
Credit 53 34 10 Interest Income- Standard Loans – Motor Vehicle Loans- Individuals Resident

Account 13 34 20 Standard Loans – Motor Vehicle Loans- Individuals Non Resident

Daily accrual of interest to be made to:
Debit 25 34 20 AIR- Standard Loans – Motor Vehicle Loans- Individuals Non Resident
Credit 53 34 20 Interest Income- Standard Loans – Motor Vehicle Loans- Individuals Non Resident

Account 13 35 10 Standard Loans – Overdraft- Individuals Resident

Daily accrual of interest to be made to:
Debit 25 35 10 AIR- Standard Loans – Overdraft- Individuals Resident
Credit 53 35 10 Interest Income- Standard Loans – Overdraft- Individuals Resident

Account 13 35 20 Standard Loans – Overdraft- Individuals Non Resident

Daily accrual of interest to be made to:
Debit 25 35 20 AIR- Standard Loans – Overdraft- Individuals Non Resident
Credit 53 35 20 Interest Income- Standard Loans – Overdraft- Individuals Non Resident

Account 13 39 10 Standard Loans – Other Consumers Loans- Individuals Resident

Daily accrual of interest to be made to:
Debit 25 39 10 AIR- Standard Loans – Other Consumers Loans- Individuals Resident
Credit 53 39 10 Interest Income- Standard Loans – Other Consumers Loans- Individuals Resident

Account 13 39 20 Standard Loans – Other Consumers Loans- Individuals Non Resident

Daily accrual of interest to be made to:
Debit 25 39 20 AIR- Standard Loans – Other Consumers Loans- Individuals Non Resident
Credit 53 39 20 Interest Income- Standard Loans – Other Consumers Loans- Individuals Non Resident

General Principles

This section applies to Sub - standard loans given by banks to Royal Government, Provinces and Communes Councils, Foreign Governments, Private Sector, State Enterprise and Individuals. Sub-standard loans are non-performing loans. Interest payments and/or principal repayments are past due from 91 days to 180 days. Specific provision at a minimum of 10% of the loan must be made, regardless of the collateral value except if the collateral is cash. Prakas B 7-00- 51 February 17, 2000 as revised by Prakas 7-02-145 dated June 7, 2002.

A loan should be classified as sub – standard if interest payment is overdue by 90 days or principal repayment is overdue by 90 days or both. For classification of installments to non – performing, please refer to circular on installment loans classification and provisioning.

When a standard loan is classified as sub-standard, the following procedures should be followed:
1.Transfer the principal balance outstanding of standard loan to sub-standard loan by raising the accounting entries. Identify the exact currency and type.
Debit 14 00 00 Sub - standard Loan and Lease Financing
Credit 13 00 00 Standard Loan and Lease Financing

2.Make a provision for the interest accrued previously but not received in accordance with the circular on non – performing loans, provisions and interest accounting.
Debit 66 12 00 Doubtful and Bad Debt on Accrued Interest
Credit 17 00 00 Allowance for Loans and Lease Losses

3.Transfer the AIR – Standard Loan and Lease Financing to AIR – Sub – standard Loan and Lease Financing
Debit 26 00 00 AIR – Sub – standard Loan and Lease Financing
Credit 25 00 00 AIR – Standard Loan and Lease Financing

4.Specific Provision made on the loan is recorded as:
Debit 66 11 00 Doubtful and Bad Debts on principal
Credit 17 00 00 Allowance for Loans and Lease Losses

5.When cash is received from the customer, journalize the accounting entries.
Debit 11 11 00 Cash
Credit 54 00 00 Interest Income – Substandard Loans and Lease Financing
Debit 38 50 00 Interest Income in Suspense
Credit 26 00 00 AIR – Sub-standard Loans and Lease Financing

6.Daily accrual from date of classification into sub-standard should be as follows
Debit 26 00 00 AIR – Sub-standard Loans and Lease Financing
Credit 38 50 00 Interest Income in Suspense

Account 14 11 10 Sub-standard Loans – Short term Loans to Royal Government of Cambodia

Daily accrual of interest to be made to:
Debit 26 11 10 AIR- Sub-standard Loans – Short term Loans to Royal Government of Cambodia
Credit 38 50 00 Interest Income in Suspense – Short term Loans to Royal Government of Cambodia

Account 14 11 20 Sub-standard Loans – Long term Loans to Royal Government of Cambodia

Daily accrual of interest to be made to:
Debit 26 11 20 AIR- Sub-standard Loans – Long term Loans to Royal Government of Cambodia
Credit 38 50 00 Interest Income in Suspense

Account 14 12 10 Sub-standard Loans – Short term Loans to Provinces and Commune Councils

Daily accrual of interest to be made to:
Debit 26 12 10 AIR- Sub-standard Loans – Short term Loans to Provinces and Commune Councils
Credit 38 50 00 Interest Income in Suspense

Account 14 12 20 Sub-standard Loans – Long term Loans to Provinces and Commune Councils

Daily accrual of interest to be made to:
Debit 26 12 20 AIR- Sub-standard Loans – Long term Loans to Provinces and Commune Councils
Credit 38 50 00 Interest Income in Suspense

Account 14 13 10 Sub-standard Loans – Short term Loans to Foreign Governments

Daily accrual of interest to be made to:
Debit 26 13 10 AIR- Sub-standard Loans – Short term Loans to Foreign Governments
Credit 38 50 00 Interest Income in Suspense

Account 14 13 20 Sub-standard Loans – Long term Loans to Foreign Governments

Daily accrual of interest to be made to:
Debit 26 13 20 AIR- Sub-standard Loans – Long term Loans to Foreign Governments
Credit 38 50 00 Interest Income in Suspense 13 20

Account 14 21 10 Sub-standard Loans – Overdraft (Permanent Line of Credit)-Private Sector-Resident

Daily accrual of interest to be made to:
Debit 26 21 10 AIR- Sub-standard Loans – Overdraft (Permanent Line of Credit)- Private Sector-Resident
Credit 38 50 00 Interest Income in Suspense

Account 14 21 20 Sub-standard Loans – Overdraft (Permanent Line of Credit)-Private Sector-Non Resident

Daily accrual of interest to be made to:
Debit 26 21 20 AIR- Sub-standard Loans – Overdraft (Permanent Line of Credit)- Private Sector-Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 14 21 30 Sub-standard Loans – Overdraft (Permanent Line of Credit)-State Enterprise-Resident

Daily accrual of interest to be made to:
Debit 26 22 10 AIR- Sub-standard Loans – Overdraft (Permanent Line of Credit)- State Enterprise-Resident
Credit 38 50 00 Interest Income in Suspense

Account 14 22 10 Sub-standard Loans – Short term Commercial Loans- Private Sector-Resident

Daily accrual of interest to be made to:
Debit 26 21 10 AIR- Sub-standard Loans – Short term Commercial Loans-Private Sector-Resident
Credit 38 50 00 Interest Income in Suspense

Account 14 22 20 Sub-standard Loans – Short term Commercial Loans- Private Sector-Non Resident

Daily accrual of interest to be made to:
Debit 26 22 20 AIR- Sub-standard Loans – Short term Commercial Loans-Private Sector-Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 14 22 30 Sub-standard Loans – Short term Commercial Loans- State Enterprise-Resident

Daily accrual of interest to be made to:
Debit 26 22 30 AIR- Sub-standard Loans – Short term Commercial Loans-State Enterprise-Resident
Credit 38 50 00 Interest Income in Suspense

Account 14 23 10 Sub-standard Loans – Equipment Loans-Private Sector- Resident

Daily accrual of interest to be made to:
Debit 26 23 10 AIR- Sub-standard Loans – Equipment Loans-Private Sector- Resident
Credit 38 50 00 Interest Income in Suspense

Account 14 23 20 Sub-standard Loans – Equipment Loans-Private Sector- Non Resident

Daily accrual of interest to be made to:
Debit 26 23 20 AIR- Sub-standard Loans – Equipment Loans-Private Sector-Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 14 23 30 Sub-standard Loans – Equipment Loans-State Enterprise- Resident

Daily accrual of interest to be made to:
Debit 26 23 30 AIR- Sub-standard Loans – Equipment Loans-State Enterprise- Resident
Credit 38 50 00 Interest Income in Suspense

Account 14 23 40 Sub-standard Loans – Real Estate Mortgage Loans- Private Sector-Resident

Daily accrual of interest to be made to:
Debit 26 23 40 AIR- Sub-standard Loans – Real Estate Mortgage Loans-Private Sector-Resident
Credit 38 50 00 Interest Income in Suspense

Account 14 23 50 Sub-standard Loans – Real Estate Mortgage Loans- Private Sector-Non Resident

Daily accrual of interest to be made to:
Debit 26 23 50 AIR- Sub-standard Loans – Real Estate Mortgage Loans-Private Sector-Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 14 23 60 Sub-standard Loans – Real Estate Mortgage Loans-State Enterprise-Resident

Daily accrual of interest to be made to:
Debit 26 23 60 AIR- Sub-standard Loans – Real Estate Mortgage Loans-State Enterprise-Resident
Credit 38 50 00 Interest Income in Suspense

Account 14 23 70 Sub-standard Loans – Other Long Term Loans-Private Sector-Resident

Daily accrual of interest to be made to:
Debit 26 23 70 AIR- Sub-standard Loans – Other Long Term Loans-Private Sector-Resident
Credit 38 50 00 Interest Income in Suspense

Account 14 23 80 Sub-standard Loans – Other Long Term Loans-Private Sector-Non Resident

Daily accrual of interest to be made to:
Debit 26 23 80 AIR- Sub-standard Loans – Other Long Term Loans-Private Sector-Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 14 23 90 Sub-standard Loans – Other Long Term Loans-State Enterprise-Resident

Daily accrual of interest to be made to:
Debit 26 23 90 AIR- Sub-standard Loans – Other Long Term Loans-State Enterprise-Resident
Credit 38 50 00 Interest Income in Suspense

Account 14 24 10 Sub-standard Loans – Lease Financing Receivable- Private Sector-Resident

Daily accrual of interest to be made to:
Debit 26 24 10 AIR- Sub-standard Loans – Lease Financing Receivable-Private Sector-Resident
Credit 38 50 00 Interest Income in Suspense

Account 14 24 20 Sub-standard Loans – Lease Financing Receivable- Private Sector-Non Resident

Daily accrual of interest to be made to:
Debit 26 24 20 AIR- Sub-standard Loans – Lease Financing Receivable-Private Sector-Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 14 24 30 Sub-standard Loans – Lease Financing Receivable-State Enterprise-Resident

Daily accrual of interest to be made to:
Debit 26 24 30 AIR- Sub-standard Loans – Lease Financing Receivable-State Enterprise-Resident
Credit 38 50 00 Interest Income in Suspense

Account 14 25 10 Sub-standard Loans – Loans to related parties-Private Sector-Resident

Daily accrual of interest to be made to:
Debit 26 25 10 AIR- Sub-standard Loans – Loans to related parties-Private Sector-Resident
Credit 38 50 00 Interest Income in Suspense

Account 14 25 20 Sub-standard Loans – Loans to related parties-Private Sector-Non Resident

Daily accrual of interest to be made to:
Debit 26 25 20 AIR- Sub-standard Loans – Loans to related parties-Private Sector-Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 14 26 10 Sub-standard Loans – Other Commercial Loans-Private Sector-Resident

Daily accrual of interest to be made to:
Debit 26 26 10 AIR- Sub-standard Loans – Other Commercial Loans-Private Sector-Resident
Credit 38 50 00 Interest Income in Suspense

Account 14 26 20 Sub-standard Loans – Other Commercial Loans-Private Sector-Non Resident

Daily accrual of interest to be made to:
Debit 26 26 20 AIR- Sub-standard Loans – Other Commercial Loans-Private Sector-Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 14 27 10 Sub-standard Loans – Bankers’ Acceptances – Private Sector - Resident

Daily accrual of interest to be made to:
Debit 26 27 10 AIR - Sub-standard Loans – Bankers’ Acceptances – Private Sector – Resident
Credit 38 50 00 Interest Income in Suspense

Account 14 27 20 Sub-standard Loans – Bankers’ Acceptances – Private Sector – Non - Resident

Daily accrual of interest to be made to:
Debit 26 27 20 AIR - Sub-standard Loans – Bankers’ Acceptances – Private Sector – Non - Resident
Credit 38 50 00 Interest Income in Suspense

Account 14 27 30 Sub-standard Loans – Bankers’ State Enterprise

Daily accrual of interest to be made to:
Debit 26 27 20 AIR - Sub-standard Loans – Bankers’ Acceptances – State Enterprise
Credit 38 50 00 Interest Income in Suspense

Account 14 27 40 Sub-standard Loans – Other Bill of Exchange (BoE)- Private Sector-Resident

Daily accrual of interest to be made to:
Debit 26 27 40 AIR- Sub-standard Loans – Other Bill of Exchange (BoE)-Private Sector-Resident
Credit 38 50 00 Interest Income in Suspense

Account 14 27 50 Sub-standard Loans – Other Bill of Exchange (BoE)- Private Sector-Non Resident

Daily accrual of interest to be made to:
Debit 26 27 50 AIR- Sub-standard Loans – Other Bill of Exchange (BoE)-Private Sector-Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 14 27 60 Sub-standard Loans – Other Bill of Exchange (BoE)-State Enterprise-Resident

Daily accrual of interest to be made to:
Debit 26 27 60 AIR- Sub-standard Loans – Other Bill of Exchange (BoE)-State Enterprise-Resident
Credit 38 50 00 Interest Income in Suspense

Account 14 27 70 Sub-standard Loans – Trust Receipt-Private Sector- Resident

Daily accrual of interest to be made to:
Debit 26 27 70 AIR- Sub-standard Loans – Trust Receipt-Private Sector- Resident
Credit 38 50 00 Interest Income in Suspense

Account 14 27 80 Sub-standard Loans – Trust Receipt-Private Sector-Non Resident

Daily accrual of interest to be made to:
Debit 26 27 80 AIR- Sub-standard Loans – Trust Receipt-Private Sector-Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 14 27 90 Sub-standard Loans – Trust Receipt-State Enterprise- Resident

Daily accrual of interest to be made to:
Debit 26 27 90 AIR- Sub-standard Loans – Trust Receipt-State Enterprise- Resident
Credit 38 50 00 Interest Income in Suspense

Account 14 28 10 Sub-standard Loans – Credit Revolving-Private Sector- Resident

Daily accrual of interest to be made to:
Debit 26 28 10 AIR- Sub-standard Loans – Credit Revolving-Private Sector- Resident
Credit 38 50 00 Interest Income in Suspense

Account 14 28 20 Sub-standard Loans – Credit Revolving-Private Sector- Non Resident

Daily accrual of interest to be made to:
Debit 26 28 20 AIR- Sub-standard Loans – Credit Revolving-Private Sector-Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 14 28 30 Sub-standard Loans – Credit Revolving-State Enterprise- Resident

Daily accrual of interest to be made to:
Debit 26 28 30 AIR- Sub-standard Loans – Credit Revolving-State Enterprise- Resident
Credit 38 50 00 Interest Income in Suspense

Account 14 31 10 Sub-standard Loans – Real Estate Mortgage Loans- Individual-Resident

Daily accrual of interest to be made to:
Debit 26 31 10 AIR- Sub-standard Loans – Real Estate Mortgage Loans- Individual-Resident
Credit 38 50 00 Interest Income in Suspense

Account 14 31 20 Sub-standard Loans – Bank Employee-Resident

Daily accrual of interest to be made to:
Debit 26 31 20 AIR- Sub-standard Loans – Bank Employee-Resident
Credit 38 50 00 Interest Income in Suspense

Account 14 32 10 Sub-standard Loans – Credit Cards Loans-Individuals- Resident

Daily accrual of interest to be made to:
Debit 26 32 10 AIR- Sub-standard Loans – Credit Cards Loans-Individuals- Resident
Credit 38 50 00 Interest Income in Suspense

Account 14 32 20 Sub-standard Loans – Credit Cards Loans-Individuals- Non Resident

Daily accrual of interest to be made to:
Debit 26 32 20 AIR- Sub-standard Loans – Credit Cards Loans-Individuals-Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 14 33 10 Sub-standard Loans – Credit Revolving-Individuals- Resident

Daily accrual of interest to be made to:
Debit 26 33 10 AIR- Sub-standard Loans – Credit Revolving- Individuals Resident
Credit 38 50 00 Interest Income in Suspense

Account 14 33 20 Sub-standard Loans – Credit Revolving- Individuals Non Resident

Daily accrual of interest to be made to:
Debit 26 33 20 AIR- Sub-standard Loans – Credit Revolving- Individuals Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 14 34 10 Sub-standard Loans – Motor Vehicle Loans- Individuals Resident

Daily accrual of interest to be made to:
Debit 26 34 10 AIR- Sub-standard Loans – Motor Vehicle Loans- Individuals Resident
Credit 38 50 00 Interest Income in Suspense

Account 14 34 20 Sub-standard Loans – Motor Vehicle Loans- Individuals Non Resident

Daily accrual of interest to be made to:
Debit 26 34 20 AIR- Sub-standard Loans – Motor Vehicle Loans- Individuals Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 14 35 10 Sub-standard Loans – Overdraft- Individuals Resident

Daily accrual of interest to be made to:
Debit 26 35 10 AIR- Sub-standard Loans – Overdraft- Individuals Resident
Credit 38 50 00 Interest Income in Suspense

Account 14 35 20 Sub-standard Loans – Overdraft- Individuals Non Resident

Daily accrual of interest to be made to:
Debit 26 35 20 AIR- Sub-standard Loans – Overdraft- Individuals Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 14 39 10 Sub-standard Loans – Other Consumers Loans- Individuals Resident

Daily accrual of interest to be made to:
Debit 26 39 10 AIR- Sub-standard Loans – Other Consumers Loans- Individuals Resident
Credit 38 50 00 Interest Income in Suspense

Account 14 39 20 Sub-standard Loans – Other Consumers Loans- Individuals Non Resident

Daily accrual of interest to be made to:
Debit 26 39 20 AIR- Sub-standard Loans – Other Consumers Loans- Individuals Non Resident
Credit 38 50 00 Interest Income in Suspense

General Principles

This section applies to Doubtful loans given by the bank to Royal Government, Provinces and Communes Councils, Foreign Governments, Private Sector, State Enterprise and Individuals. Doubtful loans are non-performing loans. Interest payments and/or principal repayments are past due from 181 days to 360 days. Specific provision at a minimum of 30% of the loan outstanding must be made, regardless of the value of the collateral except cash collateral. This is an additional 20% on top of the 10% provision already made at the time when the loan becomes sub – standard. Please refer also to Prakas B 7-00-51 February 17, 2000 as revised by Prakas 7-02-145 dated June 7, 2002.

A loan should be classified as doubtful if interest payment is overdue by 180 days or principal repayment is overdue by 180 days or both. For classification of installments to non – performing, please refer to circular on installment loans classification and provisioning.

When a sub - standard loan is classified to doubtful, the following procedures should be done.
1.Transfer the balance outstanding of sub - standard loan to doubtful loan, using the correct currency and type of account.
Debit 15 00 00 Doubtful Loan and Lease Financing
Credit 14 00 00 Sub - standard loan and Lease Financing

2.Transfer the balance outstanding of AIR – Sub – standard loan to AIR – Doubtful loan
Debit 27 00 00 AIR – Doubtful Loans and Lease Financing
Credit 26 00 00 AIR – Sub – standard Loans and Lease Financing

3.Specific provision made on loan principal is recorded as:
Debit 66 11 00 Doubtful and Bad Debts on Principal
Credit 17 00 00 Allowance for Loans and Lease Losses

4.When payment in cash is received from customer for overdue interest is made journalize as follows:
Debit 11 11 00 Cash in Vault and on Cash
Credit 55 00 00 Interest Income – Doubtful Loans and Lease Financing
Debit 38 50 00 Interest Income in Suspense
Credit 26 00 00 AIR – Doubtful Loans and Lease Financing

5.Daily accrual from date of classification into doubtful loans should be as follows:
Debit 27 00 00 AIR – Doubtful Loans and Lease Financing
Credit 38 50 00 Interest Income in Suspense

Account 15 11 10 Doubtful Loans – Short term Loans to Royal Government of Cambodia

Daily accrual of interest to be made to:
Debit 27 11 10 AIR- Doubtful Loans – Short term Loans to Royal Government of Cambodia
Credit 38 50 00 Interest Income in Suspense

Account 15 11 20 Doubtful Loans – Long term Loans to Royal Government of Cambodia

Daily accrual of interest to be made to:
Debit 27 11 20 AIR- Doubtful Loans – Long term Loans to Royal Government of Cambodia
Credit 38 50 00 Interest Income in Suspense

Account 15 12 10 Doubtful Loans – Short term Loans to Provinces and Commune Councils

Daily accrual of interest to be made to:
Debit 27 12 10 AIR- Doubtful Loans – Short term Loans to Provinces and Commune Councils
Credit 38 50 00 Interest Income in Suspense

Account 15 12 20 Doubtful Loans – Long term Loans to Provinces and Commune Councils

Daily accrual of interest to be made to:
Debit 27 12 20 AIR- Doubtful Loans – Long term Loans to Provinces and Commune Councils
Credit 38 50 00 Interest Income in Suspense

Account 15 13 10 Doubtful Loans – Short term Loans to Foreign Governments

Daily accrual of interest to be made to:
Debit 27 13 10 AIR- Doubtful Loans – Short term Loans to Foreign Governments
Credit 38 50 00 Interest Income in Suspense

Account 15 13 20 Doubtful Loans – Long term Loans to Foreign Governments

Daily accrual of interest to be made to:
Debit 27 13 20 AIR- Doubtful Loans – Long term Loans to Foreign Governments
Credit 38 50 00 Interest Income in Suspense 13 20

Account 15 21 10 Doubtful Loans – Overdraft (Permanent Line of Credit)- Private Sector-Resident

Daily accrual of interest to be made to:
Debit 27 21 10 AIR- Doubtful Loans – Overdraft (Permanent Line of Credit)- Private Sector-Resident
Credit 38 50 00 Interest Income in Suspense

Account 15 21 20 Doubtful Loans – Overdraft (Permanent Line of Credit)- Private Sector-Non Resident

Daily accrual of interest to be made to:
Debit 27 21 20 AIR- Doubtful Loans – Overdraft (Permanent Line of Credit)- Private Sector-Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 15 21 30 Doubtful Loans – Overdraft (Permanent Line of Credit)- State Enterprise-Resident

Daily accrual of interest to be made to:
Debit 27 22 10 AIR- Doubtful Loans – Overdraft (Permanent Line of Credit)-State Enterprise-Resident
Credit 38 50 00 Interest Income in Suspense

Account 15 22 10 Doubtful Loans – Short term Commercial Loans-Private Sector-Resident

Daily accrual of interest to be made to:
Debit 27 22 10 AIR- Doubtful Loans – Short term Commercial Loans-Private Sector-Resident
Credit 38 50 00 Interest Income in Suspense

Account 15 22 20 Doubtful Loans – Short term Commercial Loans-Private Sector-Non Resident

Daily accrual of interest to be made to:
Debit 27 22 20 AIR- Doubtful Loans – Short term Commercial Loans-Private Sector-Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 15 22 30 Doubtful Loans – Short term Commercial Loans-State Enterprise-Resident

Daily accrual of interest to be made to:
Debit 27 22 30 AIR- Doubtful Loans – Short term Commercial Loans-State Enterprise-Resident
Credit 38 50 00 Interest Income in Suspense

Account 15 23 10 Doubtful Loans – Equipment Loans - Private Sector- Resident

Daily accrual of interest to be made to:
Debit 2723 10 AIR- Doubtful Loans – Equipment Loans-Private Sector-Resident
Credit 38 50 00 Interest Income in Suspense

Account 15 23 20 Doubtful Loans – Equipment Loans - Private Sector-Non Resident

Daily accrual of interest to be made to:
Debit 27 23 20 AIR- Doubtful Loans – Equipment Loans-Private Sector-Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 15 23 30 Doubtful Loans – Equipment Loans-State Enterprise- Resident

Daily accrual of interest to be made to:
Debit 27 23 30 AIR- Doubtful Loans – Equipment Loans-State Enterprise- Resident
Credit 38 50 00 Interest Income in Suspense

Account 15 23 40 Doubtful Loans – Real Estate Mortgage Loans-Private Sector-Resident

Daily accrual of interest to be made to:
Debit 27 23 40 AIR- Doubtful Loans – Real Estate Mortgage Loans-Private Sector-Resident
Credit 38 50 00 Interest Income in Suspense

Account 15 23 50 Doubtful Loans – Real Estate Mortgage Loans-Private Sector-Non Resident

Daily accrual of interest to be made to:
Debit 27 23 50 AIR- Doubtful Loans – Real Estate Mortgage Loans-Private Sector-Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 15 23 60 Doubtful Loans – Real Estate Mortgage Loans-State Enterprise-Resident

Daily accrual of interest to be made to:
Debit 27 23 60 AIR- Doubtful Loans – Real Estate Mortgage Loans-State Enterprise-Resident
Credit 38 50 00 Interest Income in Suspense

Account 15 23 70 Doubtful Loans – Other Long Term Loans-Private Sector- Resident

Daily accrual of interest to be made to:
Debit 27 23 70 AIR- Doubtful Loans – Other Long Term Loans-Private Sector- Resident
Credit 38 50 00 Interest Income in Suspense

Account 15 23 80 Doubtful Loans – Other Long Term Loans-Private Sector- Non Resident

Daily accrual of interest to be made to:
Debit 27 23 80 AIR- Doubtful Loans – Other Long Term Loans-Private Sector- Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 15 23 90 Doubtful Loans – Other Long Term Loans-State Enterprise-Resident

Daily accrual of interest to be made to:
Debit 27 23 90 AIR- Doubtful Loans – Other Long Term Loans-State Enterprise- Resident
Credit 38 50 00 Interest Income in Suspense

Account 15 24 10 Doubtful Loans – Lease Financing Receivable-Private Sector-Resident

Daily accrual of interest to be made to:
Debit 27 24 10 AIR- Doubtful Loans – Lease Financing Receivable-Private Sector-Resident
Credit 38 50 00 Interest Income in Suspense

Account 15 24 20 Doubtful Loans – Lease Financing Receivable-Private Sector-Non Resident

Daily accrual of interest to be made to:
Debit 27 24 20 AIR- Doubtful Loans – Lease Financing Receivable-Private Sector-Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 15 24 30 Doubtful Loans – Lease Financing Receivable-State Enterprise-Resident

Daily accrual of interest to be made to:
Debit 27 24 30 AIR- Doubtful Loans – Lease Financing Receivable-State Enterprise-Resident
Credit 38 50 00 Interest Income in Suspense

Account 15 25 10 Doubtful Loans – Loans to related parties-Private Sector- Resident

Daily accrual of interest to be made to:
Debit 27 25 10 AIR- Doubtful Loans – Loans to related parties-Private Sector- Resident
Credit 38 50 00 Interest Income in Suspense

Account 15 25 20 Doubtful Loans – Loans to related parties-Private Sector- Non Resident

Daily accrual of interest to be made to:
Debit 27 25 20 AIR- Doubtful Loans – Loans to related parties-Private Sector- Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 15 26 10 Doubtful Loans – Other Commercial Loans-Private Sector-Resident

Daily accrual of interest to be made to:
Debit 27 26 10 AIR- Doubtful Loans – Other Commercial Loans-Private Sector- Resident
Credit 38 50 00 Interest Income in Suspense

Account 15 26 20 Doubtful Loans – Other Commercial Loans-Private Sector-Non Resident

Daily accrual of interest to be made to:
Debit 27 26 20 AIR- Doubtful Loans – Other Commercial Loans-Private Sector- Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 15 27 10 Doubtful Loans – Bankers’ Acceptances – Private Sector–Resident

Debit 27 27 10 AIR- Doubtful Loans – Bankers’ Acceptances - Private Sector –Resident
Credit 38 50 00 Interest Income in Suspense

Account 15 27 20 Doubtful Loans – Bankers’ Acceptances – Private Sector–Non Resident

Debit 27 27 20 AIR- Doubtful Loans – Bankers’ Acceptances - Private Sector–Resident
Credit 38 50 00 Interest Income in Suspense

Account 15 27 30 Doubtful Loans – Bankers’ Acceptances – State Enterprise

Debit 27 27 30 AIR- Doubtful Loans – Bankers’ Acceptances – State Enterprise
Credit 38 50 00 Interest Income in Suspense

Account 15 27 40 Doubtful Loans – Other Bill of Exchange (BoE)-Private Sector-Resident

Daily accrual of interest to be made to:
Debit 27 27 40 AIR- Doubtful Loans – Other Bill of Exchange (BoE)-Private Sector-Resident
Credit 38 50 00 Interest Income in Suspense

Account 15 27 50 Doubtful Loans – Other Bill of Exchange (BoE)-Private Sector-Non Resident

Daily accrual of interest to be made to:
Debit 27 27 50 AIR- Doubtful Loans – Other Bill of Exchange (BoE)-Private Sector-Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 15 27 60 Doubtful Loans – Other Bill of Exchange (BoE)-State Enterprise-Resident

Daily accrual of interest to be made to:
Debit 27 27 60 AIR- Doubtful Loans – Other Bill of Exchange (BoE)-State Enterprise-Resident
Credit 38 50 00 Interest Income in Suspense

Account 15 27 70 Doubtful Loans – Trust Receipt-Private Sector-Resident

Daily accrual of interest to be made to:
Debit 27 27 70 AIR- Doubtful Loans – Trust Receipt-Private Sector-Resident
Credit 38 50 00 Interest Income in Suspense

Account 15 27 80 Doubtful Loans – Trust Receipt-Private Sector-Non Resident

Daily accrual of interest to be made to:
Debit 27 27 80 AIR- Doubtful Loans – Trust Receipt-Private Sector-Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 15 27 90 Doubtful Loans – Trust Receipt-State Enterprise-Resident

Daily accrual of interest to be made to:
Debit 27 27 90 AIR- Doubtful Loans – Trust Receipt-State Enterprise-Resident
Credit 38 50 00 Interest Income in Suspense

Account 15 28 10 Doubtful Loans – Credit Revolving-Private Sector- Resident

Daily accrual of interest to be made to:
Debit 27 28 10 AIR- Doubtful Loans – Credit Revolving-Private Sector-Resident
Credit 38 50 00 Interest Income in Suspense

Account 15 28 20 Doubtful Loans – Credit Revolving-Private Sector-Non Resident

Daily accrual of interest to be made to:
Debit 27 28 20 AIR- Doubtful Loans – Credit Revolving-Private Sector-Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 15 28 30 Doubtful Loans – Credit Revolving-State Enterprise- Resident

Daily accrual of interest to be made to:
Debit 27 28 30 AIR- Doubtful Loans – Credit Revolving-State Enterprise- Resident
Credit 38 50 00 Interest Income in Suspense

Account 15 31 10 Doubtful Loans – Real Estate Mortgage Loans-Individual- Resident

Daily accrual of interest to be made to:
Debit 27 31 10 AIR- Doubtful Loans – Real Estate Mortgage Loans-Individual- Resident
Credit 38 50 00 Interest Income in Suspense

Account 15 31 20 Doubtful Loans – Bank Employee-Resident

Daily accrual of interest to be made to:
Debit 27 31 20 AIR- Doubtful Loans – Bank Employee-Resident
Credit 38 50 00 Interest Income in Suspense

Account 15 32 10 Doubtful Loans – Credit Cards Loans-Individuals- Resident

Daily accrual of interest to be made to:
Debit 27 32 10 AIR- Doubtful Loans – Credit Cards Loans-Individuals-Resident
Credit 38 50 00 Interest Income in Suspense

Account 15 32 20 Doubtful Loans – Credit Cards Loans-Individuals-Non Resident

Daily accrual of interest to be made to:
Debit 27 32 20 AIR- Doubtful Loans – Credit Cards Loans-Individuals-Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 15 33 10 Doubtful Loans – Credit Revolving-Individuals-Resident

Daily accrual of interest to be made to:
Debit 27 33 10 AIR- Doubtful Loans – Credit Revolving- Individuals Resident
Credit 38 50 00 Interest Income in Suspense

Account 15 33 20 Doubtful Loans – Credit Revolving- Individuals Non Resident

Daily accrual of interest to be made to:
Debit 27 33 20 AIR- Doubtful Loans – Credit Revolving- Individuals Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 15 34 10 Doubtful Loans – Motor Vehicle Loans- Individuals Resident

Daily accrual of interest to be made to:
Debit 27 34 10 AIR- Doubtful Loans – Motor Vehicle Loans- Individuals Resident
Credit 38 50 00 Interest Income in Suspense

Account 15 34 20 Doubtful Loans – Motor Vehicle Loans- Individuals Non Resident

Daily accrual of interest to be made to:
Debit 27 34 20 AIR- Doubtful Loans – Motor Vehicle Loans- Individuals Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 15 35 10 Doubtful Loans – Overdraft- Individuals Resident

Daily accrual of interest to be made to:
Debit 27 35 10 AIR- Doubtful Loans – Overdraft- Individuals Resident
Credit 38 50 00 Interest Income in Suspense

Account 15 35 20 Doubtful Loans – Overdraft- Individuals Non Resident

Daily accrual of interest to be made to:
Debit 27 35 20 AIR- Doubtful Loans – Overdraft- Individuals Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 15 39 10 Doubtful Loans – Other Consumers Loans- Individuals Resident

Daily accrual of interest to be made to:
Debit 27 39 10 AIR- Doubtful Loans – Other Consumers Loans- Individuals Resident
Credit 38 50 00 Interest Income in Suspense

Account 15 39 20 Doubtful Loans – Other Consumers Loans- Individuals Non Resident

Daily accrual of interest to be made to:
Debit 27 39 20 AIR- Doubtful Loans – Other Consumers Loans- Individuals Non Resident
Credit 38 50 00 Interest Income in Suspense

General Principles

This section applies to loss loans and lease financing given by the bank to Royal Government, Provinces and Communes Councils, Foreign Governments, Private Sector, State Enterprise and Individuals. Loss loans are non-performing loans. Interest payments and/or principal repayments are past due over 360 days. Specific provision of 100% of the loan is required unless the bank can prove that the actual market value of the collateral on a case – by – case basis and acceptable to NBC, in which case only part of the loan that is not covered by the collateral need to be provided. This is an additional 70% provision since up to the state of doubtful status, 30% loan provision would have been made. Refer to Prakas B 7-00-51 February 17, 2000 as revised by Prakas B 7.02.145 dated June 7, 2002.

A loan should be classified as loss if interest payment is overdue by 360 days or principal repayment is overdue by 360 days or both. For classification of installments to non – performing, please refer to circular on installment loans classification and provisioning.

When a doubtful loan is classified as loss loan, the following procedures should be followed.
1.Transfer the outstanding balance of doubtful loan to loss loan
Debit 16 00 00 Loss Loan and Lease Financing
Credit 15 00 00 Doubtful Loan and Lease Financing

2.Transfer the outstanding balance of AIR from doubtful loan to AIR – loss loan.
Debit 28 00 00 AIR – Loss Loan and Lease Financing
Credit 27 00 00 AIR - Doubtful Loan and Lease Financing

3.Specific provision made on the loan principal should be recorded as:
Debit 66 11 00 Doubtful and Bad Debts on Principal
Credit 17 00 00 Allowance for Loans and Lease Losses

4.When payment is received from customer for overdue interest in cash
Debit 11 11 00 Cash in Vault and on hand
Credit 56 00 00 Interest Income – Loss Loans and Lease Financing
Debit 38 50 00 Interest Income in Suspense
Credit 28 00 00 AIR – Loss Loans and Lease Financing

5.Daily accrual from date of classification as loss loan should be as follows
Debit 28 00 00 AIR – Loss Loans and Lease Financing
Credit 38 50 00 Interest Income in Suspense

Account 16 11 10 Loss Loans – Short term Loans to Royal Government of Cambodia

Daily accrual of interest to be made to:
Debit 28 11 10 AIR- Loss Loans – Short term Loans to Royal Government of Cambodia
Credit 38 50 00 Interest Income in Suspense

Account 16 11 20 Loss Loans – Long term Loans to Royal Government of Cambodia

Daily accrual of interest to be made to:
Debit 28 11 20 AIR- Loss Loans – Long term Loans to Royal Government of Cambodia
Credit 38 50 00 Interest Income in Suspense

Account 16 12 10 Loss Loans – Short term Loans to Provinces and Commune Councils

Daily accrual of interest to be made to:
Debit 28 12 10 AIR- Loss Loans – Short term Loans to Provinces and Commune Councils
Credit 38 50 00 Interest Income in Suspense

Account 16 12 20 Loss Loans – Long term Loans to Provinces and Commune Councils

Daily accrual of interest to be made to:
Debit 28 12 20 AIR- Loss Loans – Long term Loans to Provinces and Commune Councils
Credit 38 50 00 Interest Income in Suspense

Account 16 13 10 Loss Loans – Short term Loans to Foreign Governments

Daily accrual of interest to be made to:
Debit 28 13 10 AIR- Loss Loans – Short term Loans to Foreign Governments
Credit 38 50 00 Interest Income in Suspense

Account 16 13 20 Loss Loans – Long term Loans to Foreign Governments

Daily accrual of interest to be made to:
Debit 28 13 20 AIR- Loss Loans – Long term Loans to Foreign Governments
Credit 38 50 00 Interest Income in Suspense 13 20

Account 16 21 10 Loss Loans – Overdraft (Permanent Line of Credit)- Private Sector-Resident

Daily accrual of interest to be made to:
Debit 28 21 10 AIR- Loss Loans – Overdraft (Permanent Line of Credit)-Private Sector-Resident
Credit 38 50 00 Interest Income in Suspense

Account 16 21 20 Loss Loans – Overdraft (Permanent Line of Credit)- Private Sector-Non Resident

Daily accrual of interest to be made to:
Debit 28 21 20 AIR- Loss Loans – Overdraft (Permanent Line of Credit)-Private Sector-Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 16 21 30 Loss Loans – Overdraft (Permanent Line of Credit)-State Enterprise-Resident

Daily accrual of interest to be made to:
Debit 28 22 10 AIR- Loss Loans – Overdraft (Permanent Line of Credit)-State Enterprise-Resident
Credit 38 50 00 Interest Income in Suspense

Account 16 22 10 Loss Loans – Short term Commercial Loans-Private Sector-Resident

Daily accrual of interest to be made to:
Debit 28 22 10 AIR- Loss Loans – Short term Commercial Loans-Private Sector- Resident
Credit 38 50 00 Interest Income in Suspense

Account 16 22 20 Loss Loans – Short term Commercial Loans-Private Sector-Non Resident

Daily accrual of interest to be made to:
Debit 28 22 20 AIR- Loss Loans – Short term Commercial Loans-Private Sector- Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 16 22 30 Loss Loans – Short term Commercial Loans-State Enterprise-Resident

Daily accrual of interest to be made to:
Debit 28 22 30 AIR- Loss Loans – Short term Commercial Loans-State Enterprise-Resident
Credit 38 50 00 Interest Income in Suspense

Account 16 23 10 Loss Loans – Equipment Loans-Private Sector-Resident

Daily accrual of interest to be made to:
Debit 28 23 10 AIR- Loss Loans – Equipment Loans-Private Sector-Resident
Credit 38 50 00 Interest Income in Suspense

Account 16 23 20 Loss Loans – Equipment Loans-Private Sector-Non Resident

Daily accrual of interest to be made to:
Debit 28 23 20 AIR- Loss Loans – Equipment Loans-Private Sector-Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 16 23 30 Loss Loans – Equipment Loans-State Enterprise- Resident

Daily accrual of interest to be made to:
Debit 28 23 30 AIR- Loss Loans – Equipment Loans-State Enterprise-Resident
Credit 38 50 00 Interest Income in Suspense

Account 16 23 40 Loss Loans – Real Estate Mortgage Loans-Private Sector- Resident

Daily accrual of interest to be made to:
Debit 28 23 40 AIR- Loss Loans – Real Estate Mortgage Loans-Private Sector- Resident
Credit 38 50 00 Interest Income in Suspense

Account 16 23 50 Loss Loans – Real Estate Mortgage Loans-Private Sector- Non Resident

Daily accrual of interest to be made to:
Debit 28 23 50 AIR- Loss Loans – Real Estate Mortgage Loans-Private Sector- Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 16 23 60 Loss Loans – Real Estate Mortgage Loans-State Enterprise-Resident

Daily accrual of interest to be made to:
Debit 28 23 60 AIR- Loss Loans – Real Estate Mortgage Loans-State Enterprise- Resident
Credit 38 50 00 Interest Income in Suspense

Account 16 23 70 Loss Loans – Other Long Term Loans-Private Sector- Resident

Daily accrual of interest to be made to:
Debit 28 23 70 AIR- Loss Loans – Other Long Term Loans-Private Sector- Resident
Credit 38 50 00 Interest Income in Suspense

Account 16 23 80 Loss Loans – Other Long Term Loans-Private Sector-Non Resident

Daily accrual of interest to be made to:
Debit 28 23 80 AIR- Loss Loans – Other Long Term Loans-Private Sector-Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 16 23 90 Loss Loans – Other Long Term Loans-State Enterprise- Resident

Daily accrual of interest to be made to:
Debit 28 23 90 AIR- Loss Loans – Other Long Term Loans-State Enterprise- Resident
Credit 38 50 00 Interest Income in Suspense

Account 16 24 10 Loss Loans – Lease Financing Receivable-Private Sector- Resident

Daily accrual of interest to be made to:
Debit 28 24 10 AIR- Loss Loans – Lease Financing Receivable-Private Sector- Resident
Credit 38 50 00 Interest Income in Suspense

Account 16 24 20 Loss Loans – Lease Financing Receivable-Private Sector- Non Resident

Daily accrual of interest to be made to:
Debit 28 24 20 AIR- Loss Loans – Lease Financing Receivable-Private Sector- Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 16 24 30 Loss Loans – Lease Financing Receivable-State Enterprise-Resident

Daily accrual of interest to be made to:
Debit 28 24 30 AIR- Loss Loans – Lease Financing Receivable-State Enterprise- Resident
Credit 38 50 00 Interest Income in Suspense

Account 16 25 10 Loss Loans – Loans to related parties-Private Sector- Resident

Daily accrual of interest to be made to:
Debit 28 25 10 AIR- Loss Loans – Loans to related parties-Private Sector- Resident
Credit 38 50 00 Interest Income in Suspense

Account 16 25 20 Loss Loans – Loans to related parties-Private Sector-Non Resident

Daily accrual of interest to be made to:
Debit 28 25 20 AIR- Loss Loans – Loans to related parties-Private Sector-Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 16 26 10 Loss Loans – Other Commercial Loans-Private Sector- Resident

Daily accrual of interest to be made to:
Debit 28 26 10 AIR- Loss Loans – Other Commercial Loans-Private Sector- Resident
Credit 38 50 00 Interest Income in Suspense

Account 16 26 20 Loss Loans – Other Commercial Loans-Private Sector- Non Resident

Daily accrual of interest to be made to:
Debit 28 26 20 AIR- Loss Loans – Other Commercial Loans-Private Sector-Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 16 27 10 Loss Loans – Bankers’ Acceptances – Private Sector –Resident

Daily accrual of interest to be made to:
Debit 28 27 10 AIR - Loss Loans – Bankers’ Acceptances – Private Sector –Resident
Credit 38 50 00 Interest Income in Suspense

Account 16 27 20 Loss Loans – Bankers’ Acceptances – Private Sector –Non Resident

Daily accrual of interest to be made to:
Debit 28 27 20 AIR - Loss Loans – Bankers’ Acceptances – Private Sector–Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 16 27 30 Loss Loans – Bankers’ Acceptances – State Enterprise

Daily accrual of interest to be made to:
Debit 28 27 30 AIR - Loss Loans – Bankers’ Acceptances – State Enterprise
Credit 38 50 00 Interest Income in Suspense

Account 16 27 40 Loss Loans – Other Bill of Exchange (BoE)-Private Sector-Resident

Daily accrual of interest to be made to:
Debit 28 27 40 AIR- Loss Loans – Other Bill of Exchange (BoE)-Private Sector- Resident
Credit 38 50 00 Interest Income in Suspense

Account 16 27 50 Loss Loans – Other Bill of Exchange (BoE)-Private Sector-Non Resident

Daily accrual of interest to be made to:
Debit 28 27 50 AIR- Loss Loans – Other Bill of Exchange (BoE)-Private Sector- Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 16 27 60 Loss Loans – Other Bill of Exchange (BoE)-State Enterprise-Resident

Daily accrual of interest to be made to:
Debit 28 27 60 AIR- Loss Loans – Other Bill of Exchange (BoE)-State Enterprise- Resident
Credit 38 50 00 Interest Income in Suspense

Account 16 27 70 Loss Loans – Trust Receipt-Private Sector-Resident

Daily accrual of interest to be made to:
Debit 28 27 70 AIR- Loss Loans – Trust Receipt-Private Sector-Resident
Credit 38 50 00 Interest Income in Suspense

Account 16 27 80 Loss Loans – Trust Receipt-Private Sector-Non Resident

Daily accrual of interest to be made to:
Debit 28 27 80 AIR- Loss Loans – Trust Receipt-Private Sector-Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 16 27 90 Loss Loans – Trust Receipt-State Enterprise-Resident

Daily accrual of interest to be made to:
Debit 28 27 90 AIR- Loss Loans – Trust Receipt-State Enterprise-Resident
Credit 38 50 00 Interest Income in Suspense

Account 16 28 10 Loss Loans – Credit Revolving-Private Sector-Resident

Daily accrual of interest to be made to:
Debit 28 28 10 AIR- Loss Loans – Credit Revolving-Private Sector-Resident
Credit 38 50 00 Interest Income in Suspense

Account 16 28 20 Loss Loans – Credit Revolving-Private Sector-Non Resident

Daily accrual of interest to be made to:
Debit 28 28 20 AIR- Loss Loans – Credit Revolving-Private Sector-Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 16 28 30 Loss Loans – Credit Revolving-State Enterprise-Resident

Daily accrual of interest to be made to:
Debit 28 28 30 AIR- Loss Loans – Credit Revolving-State Enterprise-Resident
Credit 38 50 00 Interest Income in Suspense

Account 16 31 10 Loss Loans – Real Estate Mortgage Loans-Individual- Resident

Daily accrual of interest to be made to:
Debit 28 31 10 AIR- Loss Loans – Real Estate Mortgage Loans-Individual- Resident
Credit 38 50 00 Interest Income in Suspense

Account 16 31 20 Loss Loans – Bank Employee-Resident

Daily accrual of interest to be made to:
Debit 28 31 20 AIR- Loss Loans – Bank Employee-Resident
Credit 38 50 00 Interest Income in Suspense

Account 16 32 10 Loss Loans – Credit Cards Loans-Individuals-Resident

Daily accrual of interest to be made to:
Debit 28 32 10 AIR- Loss Loans – Credit Cards Loans-Individuals-Resident
Credit 38 50 00 Interest Income in Suspense

Account 16 32 20 Loss Loans – Credit Cards Loans-Individuals-Non Resident

Daily accrual of interest to be made to:
Debit 28 32 20 AIR- Loss Loans – Credit Cards Loans-Individuals-Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 16 33 10 Loss Loans – Credit Revolving-Individuals-Resident

Daily accrual of interest to be made to:
Debit 28 33 10 AIR- Loss Loans – Credit Revolving- Individuals Resident
Credit 38 50 00 Interest Income in Suspense

Account 16 33 20 Loss Loans – Credit Revolving- Individuals Non Resident

Daily accrual of interest to be made to:
Debit 28 33 20 AIR- Loss Loans – Credit Revolving- Individuals Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 16 34 10 Loss Loans – Motor Vehicle Loans- Individuals Resident

Daily accrual of interest to be made to:
Debit 28 34 10 AIR- Loss Loans – Motor Vehicle Loans- Individuals Resident
Credit 38 50 00 Interest Income in Suspense

Account 16 34 20 Loss Loans – Motor Vehicle Loans- Individuals Non Resident

Daily accrual of interest to be made to:
Debit 28 34 20 AIR- Loss Loans – Motor Vehicle Loans- Individuals Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 16 35 10 Loss Loans – Overdraft- Individuals Resident

Daily accrual of interest to be made to:
Debit 28 35 10 AIR- Loss Loans – Overdraft- Individuals Resident
Credit 38 50 00 Interest Income in Suspense

Account 16 35 20 Loss Loans – Overdraft- Individuals Non Resident

Daily accrual of interest to be made to:
Debit 28 35 20 AIR- Loss Loans – Overdraft- Individuals Non Resident
Credit 38 50 00 Interest Income in Suspense

Account 16 39 10 Loss Loans – Other Consumers Loans- Individuals Resident

Daily accrual of interest to be made to:
Debit 28 39 10 AIR- Loss Loans – Other Consumers Loans- Individuals Resident
Credit 38 50 00 Interest Income in Suspense

Account 16 39 20 Loss Loans – Other Consumers Loans- Individuals Non Resident

Daily accrual of interest to be made to:
Debit 28 39 20 AIR- Loss Loans – Other Consumers Loans- Individuals Non Resident
Credit 38 50 00 Interest Income in Suspense

General Principles

These accounts record the specific provision required by Prakas 7.00.51 dated February 17, 2000 on non – performing loans.

ALLL accounts are classified by types and currencies. They are not classified into residency and into sub – standard, doubtful and loss categories. Therefore, any specific provision for sub – standard, doubtful and loss loans are credited to ALLL by type only.

The following types are classified: RGC, Provinces and Commune Councils, Foreign Governments, Overdrafts, Short – Term Commercial, Long – Term Commercial, Equipment, Real Estate Mortgage, Other Long – Term, Lease Financing, Related Parties, Other Commercial, Bankers’ Acceptances, Bills of Exchange, Trust Receipt, Credit Revolving, Bank Employees, Credit Cards, Motor Vehicles, Other Consumer, Loans to Banks, OFIs and MFIs.

ALLL accounts are classified in Class 1 – Assets. The balances of ALLL should be in credit. For disclosure purposes, these balances are deducted from the loan assets to show a net book value (carrying value).

The accounting entries to journalize the specific provision are as follows: Debit 66 11 00 Doubtful and Bad Debts on Principal Credit 17 00 00 Allowance for Loan and Lease Losses (ALLL)

Banks may create sub – accounts for 17 00 00 accounts to specify the name of the customer for better control.

Kindly note that the expense account 66 11 00 Doubtful and Bad Debts on Principal is not segregated into loan types but only into currency.

ALLL are reversed when specific provisions are no longer needed, or when specific provisions far exceed the requirements. In any case, ALLL should be reversed when the loan is written off or settlement made by the customer.

ALLL accounts should not be used for general provisions for loan losses. Provision to interest earned but not received is made when a standard loan becomes a non-performing loan. The accounting entries raised are:
Debit 66 12 00 Doubtful and Bad Debt on Accrued Interest
Credit 38 50 00 Interest Income in Suspense
Please refer to the circular on Non – Performing Loans, Provisions and Interest Accounting page 3.

Account 17 11 00 Allowance for Loans and lease Losses – Loans to RGC

Accounting Entries:
Debit 66 10 00 Doubtful and Bad Debts on Principal
Credit 17 11 00 Allowance for Loans and lease Losses – Loans to RGC

Account 17 12 00 Allowance for Loans and lease Losses – Loans to Provinces and Commune Councils

Accounting Entries:
Debit 66 10 00 Doubtful and Bad Debts on Principal
Credit 17 12 00 Allowance for Loans and lease Losses – Provinces and Commune Councils

Account 17 13 00 Allowance for Loans and lease Losses – Loans to Foreign Governments

Accounting Entries:
Debit 66 10 00 Doubtful and Bad Debts on Principal
Credit 17 13 00 Allowance for Loans and lease Losses – Loans to Foreign Governments

Account 17 21 00 Allowance for Loans and lease Losses – Overdraft

Accounting Entries:
Debit 66 10 00 Doubtful and Bad Debts on Principal
Credit 17 21 00 Allowance for Loans and lease Losses – Overdraft

Account 17 22 00 Allowance for Loans and lease Losses – Loans to Short Term commercial Loans

Accounting Entries:
Debit 66 10 00 Doubtful and Bad Debts on Principal
Credit 17 22 00 Allowance for Loans and lease Losses – Short Term commercial Loans

Account 17 23 10 Allowance for Loans and lease Losses – Long Term commercial Loans- Equipment Loans

Accounting Entries:
Debit 66 10 00 Doubtful and Bad Debts on Principal
Credit 17 23 10 Allowance for Loans and lease Losses – Long Term commercial Loans- Equipment Loans

Account 17 23 20 Allowance for Loans and lease Losses – Long Term commercial Loans- Real Estate Mortgage Loans

Accounting Entries:
Debit 66 10 00 Doubtful and Bad Debts on Principal
Credit 17 23 20 Allowance for Loans and lease Losses – Long Term commercial Loans- Real Estate Mortgage Loans

Account 17 23 30 Allowance for Loans and lease Losses – Long Term commercial Loans- Other Long term Loans

Accounting Entries:
Debit 66 10 00 Doubtful and Bad Debts on Principal
Credit 17 23 30 Allowance for Loans and lease Losses – Long Term commercial Loans- Other Long term Loans

Account 17 24 00 Allowance for Loans and lease Losses - Lease Financing

Accounting Entries:
Debit 66 10 00 Doubtful and Bad Debts on Principal
Credit 17 24 00 Allowance for Loans and lease Losses – Long Term commercial Loans- LT - Lease Financing

Account 17 25 00 Allowance for Loans and lease Losses - Loans to Related Parties

Accounting Entries:
Debit 66 10 00 Doubtful and Bad Debts on Principal
Credit 17 25 00 Allowance for Loans and lease Losses – Long Term commercial Loans- Loans to Related Parties

Account 17 26 00 Allowance for Loans and lease Losses - Other Commercial Loans

Accounting Entries:
Debit 66 10 00 Doubtful and Bad Debts on Principal
Credit 17 26 00 Allowance for Loans and lease Losses – Long Term commercial Loans- Other Commercial Loans

Account 17 27 10 Allowance for Loans and lease Losses – Bankers’Acceptances

Accounting Entries:
Debit 66 10 00 Doubtful and Bad Debts on Principal
Credit 17 27 10 Allowance for Loans and lease Losses – Bankers’ Acceptances

Account 17 27 20 Allowance for Loans and lease Losses - Other Bill of Exchange (BoE)

Accounting Entries:
Debit 66 10 00 Doubtful and Bad Debts on Principal
Credit 17 27 20 Allowance for Loans and lease Losses – Long Term commercial Loans- Other Bill of Exchange (BoE)

Account 17 27 30 Allowance for Loans and lease Losses - Trust Receipt

Accounting Entries:
Debit 66 10 00 Doubtful and Bad Debts on Principal
Credit 17 27 30 Allowance for Loans and lease Losses – Long Term commercial Loans- Trust Receipt

Account 17 28 00 Allowance for Loans and lease Losses –Credit Revolving

Accounting Entries:
Debit 66 10 00 Doubtful and Bad Debts on Principal
Credit 17 28 00 Allowance for Loans and lease Losses – Credit Revolving

Account 17 31 00 Allowance for Loans and lease Losses –Consumer Loans-Real Estate Mortgage Loans and Loans to bank

Employees Accounting Entries:
Debit 66 10 00 Doubtful and Bad Debts on Principal
Credit 17 31 00 Allowance for Loans and lease Losses – Consumer Loans-Real Estate Mortgage Loans and Loans to bank Employees

Account 17 32 00 Allowance for Loans and lease Losses –Consumer Loans-Credit Card Loans

Accounting Entries:
Debit 66 10 00 Doubtful and Bad Debts on Principal
Credit 17 32 00 Allowance for Loans and lease Losses – Consumer Loans-Credit Card Loans

Account 17 33 00 Allowance for Loans and lease Losses –Credit Revolving

Accounting Entries:
Debit 66 10 00 Doubtful and Bad Debts on Principal
Credit 17 33 00 Allowance for Loans and lease Losses – Credit Revolving

Account 17 34 00 Allowance for Loans and lease Losses –Consumer Loans-Motor Vehicle

Accounting Entries:
Debit 66 10 00 Doubtful and Bad Debts on Principal
Credit 17 34 00 Allowance for Loans and lease Losses – Consumer Loans-Motor Vehicle

Account 17 35 00 Allowance for Loans and lease Losses –Overdraft- Individual

Accounting Entries:
Debit 66 10 00 Doubtful and Bad Debts on Principal
Credit 17 35 00 Allowance for Loans and lease Losses – Overdraft-Individual

Account 17 39 00 Allowance for Loans and lease Losses –Other Consumer Loans

Accounting Entries:
Debit 66 10 00 Doubtful and Bad Debts on Principal
Credit 17 39 00 Allowance for Loans and lease Losses – Other Consumer Loans

Account 17 41 10 Allowance for Loans and lease Losses –Loan to banks- Overdraft

Accounting Entries:
Debit 66 10 00 Doubtful and Bad Debts on Principal
Credit 17 41 10 Allowance for Loans and lease Losses – Loan to banks- Overdraft

Account 17 41 20 Allowance for Loans and lease Losses –Loan to banks- Short Term Loans

Accounting Entries:
Debit 66 10 00 Doubtful and Bad Debts on Principal
Credit 17 41 20 Allowance for Loans and lease Losses – Loan to banks-Short Term Loans

Account 17 41 30 Allowance for Loans and lease Losses –Loan to banks- Long Term Loans

Accounting Entries:
Debit 66 10 00 Doubtful and Bad Debts on Principal
Credit 17 41 30 Allowance for Loans and lease Losses – Loan to banks-Long Term Loans

Account 17 42 10 Allowance for Loans and lease Losses –Loan to OFIs- Overdraft

Accounting Entries:
Debit 66 10 00 Doubtful and Bad Debts on Principal
Credit 17 42 10 Allowance for Loans and lease Losses – Loan to OFIs-Overdraft

Account 17 42 20 Allowance for Loans and lease Losses –Loan to OFIs- Short Term Loans

Accounting Entries:
Debit 66 10 00 Doubtful and Bad Debts on Principal
Credit 17 42 20 Allowance for Loans and lease Losses – Loan to OFIs-Short Term Loans

Account 17 42 30 Allowance for Loans and lease Losses –Loan to OFIs- Long Term Loans

Accounting Entries:
Debit 66 10 00 Doubtful and Bad Debts on Principal
Credit 17 42 30 Allowance for Loans and lease Losses – Loan to OFIs-Long Term Loans

Account 17 43 10 Allowance for Loans and lease Losses –Loan to Licensed MFIs-Overdraft

Accounting Entries:
Debit 66 10 00 Doubtful and Bad Debts on Principal
Credit 17 43 10 Allowance for Loans and lease Losses – Loan to Licensed MFIs- Overdraft

Account 17 43 20 Allowance for Loans and lease Losses –Loan to Licensed MFIs-Short Term Loans

Accounting Entries:
Debit 66 10 00 Doubtful and Bad Debts on Principal
Credit 17 43 20 Allowance for Loans and lease Losses – Loan to Licensed MFIs- Short Term Loans

Account 17 43 30 Allowance for Loans and lease Losses –Loan to Licensed MFIs-Long Term Loans

Accounting Entries:
Debit 66 10 00 Doubtful and Bad Debts on Principal
Credit 17 43 30 Allowance for Loans and lease Losses – Loan to Licensed MFIs- Long Term Loans

General Principles

The COA classifies securities into three types: those held to maturity (HTM), those available for sale (AFS) and those meant for trading/dealing purposes (TDS). These securities comprise of treasury bills, Royal Government bonds, corporate debt securities and equities.

Investment Securities (HTM) are securities that are acquired and held for yield or capital growth and are usually held to maturity. HTM securities are stated at cost adjusted for amortization of premiums or accretion of discounts to maturity dates. Provision is made for diminution in value which is other than temporary.

Dealing Securities (TDS) are marketable securities that are acquired and held with the intention of resale in the short term and are stated at the lower of cost and market value on a portfolio basis. Increases or decreases in the carrying amount of dealing securities are credited or charged to the income statement. On disposal of the dealing securities, the differences between the net disposal proceeds and their carrying amounts are charged or credited to the income statement. Transfers, if any, between dealing and investment securities are made at the lower of cost and market value.

Securities which are not HTM or TDS are classified as AFS securities.

When securities are bought cum interest, such interest should be accounted for as purchased interest receivable (account 22 24 00) so that when interest is received for the period, the portion of pre-acquisition interest is not taken into income but set-off against cash receipts.

The account accumulated premium amortization less discount accretion is used to record the cost of premium/discount at the time of purchase for debt securities. The amount should be amortized /accreted over the life of the debt security into accounts 58 00 00 Discount accretion or 68 00 00 Premium amortization.

Gains/Losses on sale of securities are recognized in the income statements either in account 57 4x 00 security gains on sale/disposal of investment or account 66 2x 00 Loss on sale/disposal of security.

Treasury bills are often purchased at a price lower than the face (par) value. The accounting treatment is to record the face value in account 21 X1 10 RGC – Treasury Bill and the Unearned Income – securities in account 37 24 00. Unearned Income is amortized to account 52 21 00 Interest Income.

Dividends receivable on equity securities are accounted for as debit account 24 29 00 Dividends Receivable and credit account 57 51 00 Dividends Income.

Account 21 11 10 Investment in Debt Securities –HTM – RGC – Treasury Bill Treasury bill is purchased at a discount from NBC.

The accounting treatment is:
Debit 21 11 10 Investment in Debt Securities –HTM – RGC – Treasury Bill
Credit 37 24 00 Unearned Income - Securities
Credit 11 40 00 Due from NBC

Unearned income is daily accreted as follows:
Debit 37 24 00 Unearned Income - Securities
Credit 52 11 10 Interest Income - Investment in Debt Securities –HTM – RGC –Treasury bill

Account 21 11 20 Investment in Debt Securities –HTM – RGC – Due in one year or less

Daily interest accrual is made to:
Debit 24 11 20 AIR - Investment in Debt Securities –HTM – RGC – Due in one year or less
Credit 52 11 20 Interest Income - Investment in Debt Securities –HTM – RGC – Due in one year or less

Account 21 11 30 Investment in Debt Securities –HTM – RGC – Due between one to five years

Daily interest accrual is made to:
Debit 24 11 30 AIR - Investment in Debt Securities –HTM – RGC – Due between one to five years
Credit 52 11 30 Interest Income - Investment in Debt Securities –HTM – RGC – Due between one to five years

Account 21 11 40 Investment in Debt Securities –HTM – RGC – Due over five years

Daily interest accrual is made to:
Debit 24 11 40 AIR - Investment in Debt Securities –HTM – RGC – Due over five years
Credit 52 11 40 Interest Income - Investment in Debt Securities –HTM – RGC – Due over five years

Account 21 11 50 Investment in Debt Securities –HTM – Foreign Government – Due in one year or less

Daily interest accrual is made to:
Debit 24 11 50 AIR - Investment in Debt Securities –HTM – Foreign Government–Due in one year or less
Credit 52 11 50 Interest Income - Investment in Debt Securities –HTM – Foreign Government – Due in one year or less

Account 21 11 60 Investment in Debt Securities –HTM – Foreign Government – Due between one to five years

Daily interest accrual is made to:
Debit 24 11 60 AIR - Investment in Debt Securities –HTM – Foreign Government–Due between one to five years
Credit 52 11 60 Interest Income - Investment in Debt Securities –HTM – Foreign Government – Due between one to five years

Account 21 11 70 Investment in Debt Securities –HTM – Foreign Government – Due over five years

Daily interest accrual is made to:
Debit 24 11 70 AIR - Investment in Debt Securities –HTM – Foreign Government–Due over five years
Credit 52 11 70 Interest Income - Investment in Debt Securities –HTM – Foreign Government – Due over five years

Account 21 11 80 Accumulated Premium Amortization Less Discount/Accretion on RGC Obligation - HTM

This account records RGC and Foreign Government – HTM securities purchased at a premium or discount.
Daily Amortization is made as follows:
Debit 68 00 00 Premium amortization or Credit 58 00 00 Discount Accretion
Debit/Credit 21 11 80 Accumulated Premium Amortization Less Discount/Accretion

Account 21 12 10 Corporate debt securities – HTM – Due in one year or less–Banks

Daily Interest Accrual is made to:
Debit 24 12 10 AIR - Corporate debt securities – HTM – Due in one year or less– Banks
Credit 52 12 10 Interest Income - Corporate debt securities – HTM – Due in one year or less – Banks

Account 21 12 20 Corporate debt securities – HTM – Due in one year or less–OFIs

Daily Interest Accrual is made to:
Debit 24 12 20 AIR - Corporate debt securities – HTM – Due in one year or less– OFIs
Credit 52 12 20 Interest Income - Corporate debt securities – HTM – Due in one year or less – OFIs

Account 21 12 30 Corporate debt securities – HTM – Due in one year or less– Private sector

Daily Interest Accrual is made to:
Debit 24 12 30 AIR - Corporate debt securities – HTM – Due in one year or less– Private sector
Credit 52 12 30 Interest Income - Corporate debt securities – HTM – Due in one year or less – Private sector

Account 21 12 40 Corporate debt securities – HTM – Due in one year or less– State Enterprise

Daily Interest Accrual is made to:
Debit 24 12 40 AIR - Corporate debt securities – HTM – Due in one year or less–State Enterprise
Credit 52 12 40 Interest Income - Corporate debt securities – HTM – Due in one year or less – State Enterprise

Account 21 13 10 Corporate debt securities – HTM – Due between one to five years – Banks

Daily Interest Accrual is made to:
Debit 24 13 10 AIR - Corporate debt securities – HTM – Due between one to five years – Banks
Credit 52 13 10 Interest Income - Corporate debt securities – HTM – Due between one to five years – Banks

Account 21 13 20 Corporate debt securities – HTM – Due between one to five years – OFIs

Daily Interest Accrual is made to:
Debit 24 13 20 AIR - Corporate debt securities – HTM – Due between one to five years – OFIs
Credit 52 13 20 Interest Income - Corporate debt securities – HTM – Due between one to five years – OFIs

Account 21 13 30 Corporate debt securities – HTM – Due between one to five years – Private sector

Daily Interest Accrual is made to:
Debit 24 13 30 AIR - Corporate debt securities – HTM – Due between one to five years – Private sector
Credit 52 13 30 Interest Income - Corporate debt securities – HTM – Due between one to five years – Private sector

Account 21 13 40 Corporate debt securities – HTM – Due between one to five years – State Enterprise

Daily Interest Accrual is made to:
Debit 24 13 40 AIR - Corporate debt securities – HTM – Due between one to five years – State Enterprise
Credit 52 13 40 Interest Income - Corporate debt securities – HTM – Due between one to five years – State Enterprise

Account 21 14 10 Corporate debt securities – HTM – Due over five years–Banks

Daily Interest Accrual is made to:
Debit 24 14 10 AIR - Corporate debt securities – HTM – Due over five years–Banks
Credit 52 14 10 Interest Income - Corporate debt securities – HTM – Due over five years – Banks

Account 21 14 20 Corporate debt securities – HTM – Due over five years –OFIs

Daily Interest Accrual is made to:
Debit 24 14 20 AIR - Corporate debt securities – HTM – Due over five years –OFIs
Credit 52 14 20 Interest Income - Corporate debt securities – HTM – Due over five years – OFIs

Account 21 14 30 Corporate debt securities – HTM – Due over five years –Private sector

Daily Interest Accrual is made to:
Debit 24 14 30 AIR - Corporate debt securities – HTM – Due over five years –Private sector
Credit 52 14 30 Interest Income - Corporate debt securities – HTM – Due over five years – Private sector

Account 21 14 40 Corporate debt securities – HTM – Due over five years –State Enterprise

Daily Interest Accrual is made to:
Debit 24 14 40 AIR - Corporate debt securities – HTM – Due over five years –State Enterprise
Credit 52 14 40 Interest Income - Corporate debt securities – HTM – Due over five years – State Enterprise

Account 21 15 10 Foreign Entities Debt Securities – HTM – Due in one year or less

Daily Interest Accrual is made to:
Debit 24 15 10 AIR - Foreign Entities Debt Securities – HTM – Due in one year or less
Credit 52 15 10 Interest Income - Foreign Entities Debt Securities – HTM – Due in one year or less

Account 21 15 20 Foreign Entities Debt Securities – HTM – Due in over one year to five years

Daily Interest Accrual is made to:
Debit 24 15 20 AIR - Foreign Entities Debt Securities – HTM – Due in over one year to five years
Credit 52 15 20 Interest Income - Foreign Entities Debt Securities – HTM – Due in over one year to five years

Account 21 15 30 Foreign Entities Debt Securities – HTM – Due in over five years

Daily Interest Accrual is made to:
Debit 24 15 30 AIR - Foreign Entities Debt Securities – HTM – Due in over five years
Credit 52 15 30 Interest Income - Foreign Entities Debt Securities – HTM – Due in over five years

Account 21 16 00 Accumulated Premium Amortization less Discount/Accretion on other portfolio securities - HTM

This account records Corporate and Foreign Entities Debt – HTM securities purchased at a premium or discount.
Daily Amortization is made as follows:
Debit 68 00 00 Premium amortization or Credit 58 00 00 Discount Accretion
Debit/Credit 21 16 00 Accumulated Premium Amortization Less Discount/Accretion on Other Portfolio Securities – HTM

Account 21 21 10 Investment in Debt Securities –AFS – RGC – Treasury Bill Treasury bill is purchased at a discount from the interbank market.

The accounting treatment is:
Debit 21 21 10 Investment in Debt Securities –AFS – RGC – Treasury Bill
Credit 37 24 00 Unearned Income - Securities
Credit 11 40 00 Due from NBC

Unearned income is daily accreted as follows:
Debit 37 24 00 Unearned Income - Securities
Credit 52 11 10 Interest Income - Investment in Debt Securities –AFS – RGC –Treasury Bill

Account 21 21 20 Investment in Debt Securities –AFS – RGC – Due in one year or less

Daily interest accrual is made to:
Debit 24 21 20 AIR - Investment in Debt Securities –AFS – RGC – Due in one year or less
Credit 52 21 20 Interest Income - Investment in Debt Securities –AFS – RGC –Due in one year or less

Account 21 21 30 Investment in Debt Securities –AFS – RGC Obligation –Due between one to five years

Daily interest accrual is made to:
Debit 24 21 30 AIR - Investment in Debt Securities –AFS – RGC – Due between one to five years
Credit 52 21 30 Interest Income - Investment in Debt Securities –AFS – RGC –Due between one to five years

Account 21 21 40 Investment in Debt Securities –AFS – RGC Obligation –Due over five years

Daily interest accrual is made to:
Debit 24 21 40 AIR - Investment in Debt Securities –AFS – RGC – Due over five years
Credit 52 21 40 Interest Income - Investment in Debt Securities –AFS – RGC –Due over five years

Account 21 21 50 Investment in Debt Securities –AFS – Foreign Government – Due in one year or less

Daily interest accrual is made to:
Debit 24 21 50 AIR - Investment in Debt Securities –AFS – Foreign Government–Due in one year or less
Credit 52 21 50 Interest Income - Investment in Debt Securities –AFS – Foreign Government – Due in one year or less

Account 21 21 60 Investment in Debt Securities –AFS – Foreign Government – Due between one to five years

Daily interest accrual is made to:
Debit 24 21 60 AIR - Investment in Debt Securities –AFS – Foreign Government–Due between one to five years
Credit 52 21 60 Interest Income - Investment in Debt Securities –AFS – Foreign Government – Due between one to five years

Account 21 21 70 Investment in Debt Securities –AFS – Foreign Government – Due over five years

Daily interest accrual is made to:
Debit 24 21 70 AIR - Investment in Debt Securities –AFS – Foreign Government–Due over five years
Credit 52 21 70 Interest Income - Investment in Debt Securities –AFS – Foreign Government – Due over five years

Account 21 21 80 Accumulated Premium Amortization Less Discount/Accretion on RGC Obligation - AFS

This account records RGC and Foreign Government – AFS securities purchased at a premium or discount.
Daily Amortization is made as follows:
Debit 68 00 00 Premium amortization or Credit 58 00 00 Discount Accretion
Debit/Credit 21 21 80 Accumulated Premium Amortization Less Discount/Accretion

Account 21 22 10 Corporate debt securities – AFS – Due in one year or less–Banks

Daily Interest Accrual is made to:
Debit 24 22 10 AIR - Corporate debt securities – AFS – Due in one year or less –Banks
Credit 52 22 10 Interest Income - Corporate debt securities – AFS – Due in one year or less – Banks

Account 21 22 20 Corporate debt securities – AFS – Due in one year or less–OFIs

Daily Interest Accrual is made to:
Debit 24 22 20 AIR - Corporate debt securities – AFS – Due in one year or less – OFIs
Credit 52 22 20 Interest Income - Corporate debt securities – AFS – Due in one year or less – OFIs

Account 21 22 30 Corporate debt securities – AFS – Due in one year or less–Private sector

Daily Interest Accrual is made to:
Debit 24 22 30 AIR - Corporate debt securities – AFS – Due in one year or less –Private sector
Credit 52 22 30 Interest Income - Corporate debt securities – AFS – Due in one year or less – Private sector

Account 21 22 40 Corporate debt securities – AFS – Due in one year or less–State Enterprise

Daily Interest Accrual is made to:
Debit 24 22 40 AIR - Corporate debt securities – AFS – Due in one year or less – State Enterprise
Credit 52 22 40 Interest Income - Corporate debt securities – AFS – Due in one year or less – State Enterprise

Account 21 23 10 Corporate debt securities – AFS – Due between one to five years – Banks

Daily Interest Accrual is made to:
Debit 24 23 10 AIR - Corporate debt securities – AFS – Due between one to five years – Banks
Credit 52 23 10 Interest Income - Corporate debt securities – AFS – Due between one to five years – Banks

Account 21 23 20 Corporate debt securities – AFS – Due between one to five years – OFIs

Daily Interest Accrual is made to:
Debit 24 23 20 AIR - Corporate debt securities – AFS – Due between one to five years – OFIs
Credit 52 23 20 Interest Income - Corporate debt securities – AFS – Due between one to five years – OFIs

Account 21 23 30 Corporate debt securities – AFS – Due between one to five years – Private sector

Daily Interest Accrual is made to:
Debit 24 23 30 AIR - Corporate debt securities – AFS – Due between one to five years – Private sector
Credit 52 23 30 Interest Income - Corporate debt securities – AFS – Due between one to five years – Private sector

Account 21 23 40 Corporate debt securities – AFS – Due between one to five years – State Enterprise

Daily Interest Accrual is made to:
Debit 24 23 40 AIR - Corporate debt securities – AFS – Due between one to five years – State Enterprise
Credit 52 23 40 Interest Income - Corporate debt securities – AFS – Due between one to five years – State Enterprise

Account 21 24 10 Corporate debt securities – AFS – Due over five years–Banks

Daily Interest Accrual is made to:
Debit 24 24 10 AIR - Corporate debt securities – AFS – Due over five years–Banks
Credit 52 24 10 Interest Income - Corporate debt securities – AFS – Due over five years – Banks

Account 21 24 20 Corporate debt securities – AFS – Due over five years–OFIs

Daily Interest Accrual is made to:
Debit 24 24 20 AIR - Corporate debt securities – AFS – Due over five years –OFIs
Credit 52 24 20 Interest Income - Corporate debt securities – AFS – Due over five years – OFIs

Account 21 24 30 Corporate debt securities – AFS – Due over five years – Private sector

Daily Interest Accrual is made to:
Debit 24 24 30 AIR - Corporate debt securities – AFS – Due over five years – Private sector
Credit 52 24 30 Interest Income - Corporate debt securities – AFS – Due over five years – Private sector

Account 21 24 40 Corporate debt securities – AFS – Due over five years–State Enterprise

Daily Interest Accrual is made to:
Debit 24 24 40 AIR - Corporate debt securities – AFS – Due over five years –State Enterprise
Credit 52 24 40 Interest Income - Corporate debt securities – AFS – Due over five years – State Enterprise

Account 21 25 10 Investments in Foreign Entities Debt Securities – AFS –Due in one year or less

Daily Interest Accrual is made to:
Debit 24 25 10 AIR - Foreign Entities Debt Securities – AFS – Due in one year or less
Credit 52 25 10 Interest Income - Foreign Entities Debt Securities – AFS – Due in one year or less

Account 21 25 20 Investments in Foreign Entities Debt Securities – AFS –Due in over one year to five years

Daily Interest Accrual is made to:
Debit 24 25 20 AIR - Foreign Entities Debt Securities – AFS – Due in over one year to five years
Credit 52 25 20 Interest Income - Foreign Entities Debt Securities – AFS – Due in over one year to five years

Account 21 25 30 Investments in Foreign Entities Debt Securities – AFS –Due in over five years

Daily Interest Accrual is made to:
Debit 24 25 30 AIR - Foreign Entities Debt Securities – AFS – Due in over five years
Credit 52 25 30 Interest Income - Foreign Entities Debt Securities – AFS – Due in over five years

Account 21 26 00 Accumulated Premium Amortization less Discount/Accretion on other portfolio securities - AFS

This account records Corporate and Foreign Entities Debt – AFS securities purchased at a premium or discount.
Daily Amortization is made as follows:
Debit 68 00 00 Premium amortization or Credit 58 00 00 Discount Accretion
Debit/Credit 21 26 00 Accumulated Premium Amortization less Discount /Accretion on Other Portfolio Securities – AFS

Account 21 29 10 Investment in Equity Securities – Banks – AFS – Resident

Dividends receivable are recorded as follows:
Debit 24 29 10 Dividends receivable - Investment in Equity Securities – Banks –AFS – Resident
Credit 57 51 10 Dividends Income - Investment in Equity Securities – Banks –AFS – Resident

Account 21 29 20 Investment in Equity Securities – OFIs – AFS – Resident

Dividends receivable are recorded as follows:
Debit 24 29 20 Dividends receivable - Investment in Equity Securities – OFIs –AFS – Resident
Credit 57 51 20 Dividends Income - Investment in Equity Securities – OFIs – AFS– Resident

Account 21 29 30 Investment in Equity Securities – Private Sector – AFS –Resident

Dividends receivable are recorded as follows:
Debit 24 29 30 Dividends receivable - Investment in Equity Securities – Private Sector – AFS – Resident
Credit 57 51 30 Dividends Income - Investment in Equity Securities – Private Sector – AFS – Resident

Account 21 29 40 Investment in Equity Securities – State Enterprise – AFS– Resident

Dividends receivable are recorded as follows:
Debit 24 29 40 Dividends receivable - Investment in Equity Securities – State Enterprise – AFS – Resident
Credit 57 51 40 Dividends Income - Investment in Equity Securities – State Enterprise – AFS – Resident

Account 21 29 50 Investment in Equity Securities – Banks – AFS – Non Resident

Dividends receivable are recorded as follows:
Debit 24 29 50 Dividends receivable - Investment in Equity Securities – Banks –AFS – Non Resident
Credit 57 51 50 Dividends Income - Investment in Equity Securities – Banks –AFS – Non Resident

Account 21 29 60 Investment in Equity Securities – OFIs– AFS – Non Resident

Dividends receivable are recorded as follows:
Debit 24 29 60 Dividends receivable - Investment in Equity Securities – OFIs– AFS – Non Resident
Credit 57 51 60 Dividends Income - Investment in Equity Securities – OFIs– AFS–Non Resident

Account 21 29 70 Investment in Equity Securities – Private Sector– AFS –Non Resident

Dividends receivable are recorded as follows:
Debit 24 29 70 Dividends receivable - Investment in Equity Securities – Private Sector– AFS – Non Resident
Credit 57 51 70 Dividends Income - Investment in Equity Securities – Private Sector– AFS – Non Resident

Account 21 31 10 Investment in Debt Securities –TDS – RGC – Treasury Bill Treasury bill is purchased at a discount from inter - bank market.

The accounting treatment is:
Debit 21 31 10 Investment in Debt Securities –TDS – RGC – Treasury Bill
Credit 37 24 00 Unearned Income - Securities
Credit 11 40 00 Due from NBC

Unearned income is daily accreted as follows:
Debit 37 24 00 Unearned Income - Securities
Credit 52 31 10 Interest Income - Investment in Debt Securities –TDS – RGC –Treasury Bill

Account 21 31 20 Investment in Debt Securities –TDS – RGC – Due in one year or less

Daily interest accrual is made to:
Debit 24 31 20 AIR - Investment in Debt Securities –TDS – RGC – Due in one year or less
Credit 52 31 20 Interest Income - Investment in Debt Securities –TDS – RGC – Due in one year or less

Account 21 31 30 Investment in Debt Securities –TDS – RGC – Due between one to five years

Daily interest accrual is made to:
Debit 24 31 30 AIR - Investment in Debt Securities –TDS – RGC – Due between one to five years
Credit 52 31 30 Interest Income - Investment in Debt Securities –TDS – RGC –Due between one to five years

Account 21 31 40 Investment in Debt Securities –TDS – RGC – Due over five years

Daily interest accrual is made to:
Debit 24 31 40 AIR - Investment in Debt Securities –TDS – RGC – Due over five years
Credit 52 31 40 Interest Income - Investment in Debt Securities –TDS – RGC –Due over five years

Account 21 31 50 Investment in Debt Securities –TDS – Foreign Government – Due in one year or less

Daily interest accrual is made to:
Debit 24 31 50 AIR - Investment in Debt Securities –TDS – Foreign Government–Due in one year or less
Credit 52 31 50 Interest Income - Investment in Debt Securities –TDS – Foreign Government – Due in one year or less

Account 21 31 60 Investment in Debt Securities –TDS – Foreign Government – Due between one to five years

Daily interest accrual is made to:
Debit 24 31 60 AIR - Investment in Debt Securities –TDS – Foreign Government–Due between one to five years
Credit 52 31 60 Interest Income - Investment in Debt Securities –TDS – Foreign Government – Due between one to five years

Account 21 31 70 Investment in Debt Securities –TDS – Foreign Government – Due over five years

Daily interest accrual is made to:
Debit 24 31 70 AIR - Investment in Debt Securities –TDS – Foreign Government–Due over five years
Credit 52 31 70 Interest Income - Investment in Debt Securities –TDS – Foreign Government – Due over five years

Account 21 31 80 Accumulated Premium Amortization Less Discount/Accretion

This account records RGC and Foreign Government – TDS securities purchased at a premium or discount.
Daily Amortization is made as follows:
Debit 68 00 00 Premium amortization or Credit 58 00 00 Discount Accretion
Debit/Credit 21 31 80 Accumulated Premium Amortization Less Discount/Accretion on RGC Obligation - TDS

Account 21 32 10 Corporate debt securities – TDS – Due in one year or less–Banks

Daily Interest Accrual is made to:
Debit 24 32 10 AIR - Corporate debt securities – TDS – Due in one year or less –Banks
Credit 52 32 10 Interest Income - Corporate debt securities – TDS – Due in one year or less – Banks

Account 21 32 20 Corporate debt securities – TDS – Due in one year or less–OFIs

Daily Interest Accrual is made to:
Debit 24 32 20 AIR - Corporate debt securities – TDS – Due in one year or less –OFIs
Credit 52 32 20 Interest Income - Corporate debt securities – TDS – Due in one year or less – OFIs

Account 21 32 30 Corporate debt securities – TDS – Due in one year or less–Private sector

Daily Interest Accrual is made to:
Debit 24 32 30 AIR - Corporate debt securities – TDS – Due in one year or less –Private sector
Credit 52 32 30 Interest Income - Corporate debt securities – TDS – Due in one year or less – Private sector

Account 21 32 40 Corporate debt securities – TDS – Due in one year or less–State Enterprise

Daily Interest Accrual is made to:
Debit 24 32 40 AIR - Corporate debt securities – TDS – Due in one year or less –State Enterprise
Credit 52 32 40 Interest Income - Corporate debt securities – TDS – Due in one year or less – State Enterprise

Account 21 33 10 Corporate debt securities – TDS – Due between one to five years – Banks

Daily Interest Accrual is made to:
Debit 24 33 10 AIR - Corporate debt securities – TDS – Due between one to five years – Banks
Credit 52 33 10 Interest Income - Corporate debt securities – TDS – Due between one to five years – Banks

Account 21 33 20 Corporate debt securities – TDS – Due between one to five years – OFIs

Daily Interest Accrual is made to:
Debit 24 33 20 AIR - Corporate debt securities – TDS – Due between one to five years – OFIs
Credit 52 33 20 Interest Income - Corporate debt securities – TDS – Due between one to five years – OFIs

Account 21 33 30 Corporate debt securities – TDS – Due between one to five years – Private sector

Daily Interest Accrual is made to:
Debit 24 33 30 AIR - Corporate debt securities – TDS – Due between one to five years – Private sector
Credit 52 33 30 Interest Income - Corporate debt securities – TDS – Due between one to five years – Private sector

Account 21 33 40 Corporate debt securities – TDS – Due between one to five years – State Enterprise

Daily Interest Accrual is made to:
Debit 24 33 40 AIR - Corporate debt securities – TDS – Due between one to five years – State Enterprise
Credit 52 33 40 Interest Income - Corporate debt securities – TDS – Due between one to five years – State Enterprise

Account 21 34 10 Corporate debt securities – TDS – Due over five years – Banks

Daily Interest Accrual is made to:
Debit 24 34 10 AIR - Corporate debt securities – TDS – Due over five years –Banks
Credit 52 34 10 Interest Income - Corporate debt securities – TDS – Due over five years – Banks

Account 21 34 20 Corporate debt securities – TDS – Due over five years –OFIs

Daily Interest Accrual is made to:
Debit 24 34 20 AIR - Corporate debt securities – TDS – Due over five years –OFIs
Credit 52 34 20 Interest Income - Corporate debt securities – TDS – Due over five years – OFIs

Account 21 34 30 Corporate debt securities – TDS – Due over five years –Private sector

Daily Interest Accrual is made to:
Debit 24 34 30 AIR - Corporate debt securities – TDS – Due over five years –Private sector
Credit 52 34 30 Interest Income - Corporate debt securities – TDS – Due over five years – Private sector

Account 21 34 40 Corporate debt securities – TDS – Due over five years –State Enterprise

Daily Interest Accrual is made to:
Debit 24 34 40 AIR - Corporate debt securities – TDS – Due over five years –State Enterprise
Credit 52 34 40 Interest Income - Corporate debt securities – TDS – Due over five years – State Enterprise

Account 21 35 10 Foreign Entities Debt Securities – TDS – Due in one year or less

Daily Interest Accrual is made to:
Debit 24 35 10 AIR - Foreign Entities Debt Securities – TDS – Due in one year or less
Credit 52 35 10 Interest Income - Foreign Entities Debt Securities – TDS – Due in one year or less

Account 21 35 20 Foreign Entities Debt Securities – TDS – Due in over one year to five years

Daily Interest Accrual is made to:
Debit 24 35 20 AIR - Foreign Entities Debt Securities – TDS – Due in over one year to five years
Credit 52 35 20 Interest Income - Foreign Entities Debt Securities – TDS – Due in over one year to five years

Account 21 35 30 Foreign Entities Debt Securities – TDS – Due in over five years

Daily Interest Accrual is made to:
Debit 24 35 30 AIR - Foreign Entities Debt Securities – TDS – Due in over five years
Credit 52 35 30 Interest Income - Foreign Entities Debt Securities – TDS – Due in over five years

Account 21 36 00 Accumulated Premium Amortization less Discount/Accretion

This account records Corporate and Foreign Entities Debt – TDS securities purchased at a premium or discount.
Daily Amortization is made as follows:
Debit 68 00 00 Premium amortization or Credit 58 00 00 Discount Accretion
Debit/Credit 21 36 00 Accumulated Premium Amortization Less Discount/Accretion on Other Portfolio Securities – TDS

Investment in Marketable Equity Securities – TDS

Account 21 39 10 Trading / Dealing Marketable Equity Securities – Banks –Resident
Dividends receivable are recorded as follows:
Debit 24 39 10 Dividends receivable – Trading / Dealing Marketable Equity Securities – Banks – Resident
Credit 57 52 10 Dividends Income – Trading / Dealing Marketable Equity Securities – Banks – Resident
Account 21 39 20 Trading / Dealing Marketable Equity Securities – OFIs –Resident

Dividends receivable are recorded as follows:
Debit 24 39 20 Dividends receivable - Trading / Dealing Marketable Equity Securities – OFIs – Resident
Credit 57 52 20 Dividends Income - Trading / Dealing Marketable Equity Securities – OFIs – Resident

Account 21 39 30 Trading / Dealing Marketable Equity Securities – Private Sector – Resident

Dividends receivable are recorded as follows:
Debit 24 39 30 Dividends receivable - Trading / Dealing Marketable Equity Securities – Private Sector – Resident
Credit 57 52 30 Dividends Income - Trading / Dealing Marketable Equity Securities – Private Sector – Resident

Account 21 39 40 Trading / Dealing Marketable Equity Securities – State Enterprise

Dividends receivable are recorded as follows:
Debit 24 39 40 Dividends receivable - Trading / Dealing Marketable Equity Securities – State Enterprise
Credit 57 52 40 Dividends Income - Trading / Dealing Marketable Equity Securities – State Enterprise

Account 21 39 50 Trading / Dealing Marketable Equity Securities – Banks –Non Resident

Dividends receivable are recorded as follows:
Debit 24 39 50 Dividends receivable - Trading / Dealing Marketable Equity Securities – Banks – Non Resident
Credit 57 52 50 Dividends Income - Trading / Dealing Marketable Equity Securities – Banks – Non Resident

Account 21 39 60 Trading / Dealing Marketable Equity Securities – OFIs– Non Resident

Dividends receivable are recorded as follows:
Debit 24 39 60 Dividends receivable - Trading / Dealing Marketable Equity Securities – OFIs– Non Resident
Credit 57 52 60 Dividends Income - Trading / Dealing Marketable Equity Securities – OFIs– Non Resident

Account 21 39 70 Trading / Dealing Marketable Equity Securities – Private Sector– Non Resident

Dividends receivable are recorded as follows:
Debit 24 39 70 Dividends receivable - Trading / Dealing Marketable Equity Securities – Private Sector– Non Resident
Credit 57 52 70 Dividends Income - Trading / Dealing Marketable Equity Securities – Private Sector– Non Resident

General Principles

CAS 25.21 states that the carrying amount of all long-term investments should be reduced to recognize a decline other than temporary in the value of the investment, such reduction being determined and made for each investment individually.

Indicators of a decline other than temporary in the value of a debt security include significant financial difficulty of the issuer, high probability of bankruptcy, granting of concessions to the issuer, the disappearance of an active market because of financial difficulties, breach of contract and adverse change in observable data such as increase in unemployment or crash of the property market.

Indicators of a decline other than temporary in the value of an equity security include significant changes with an adverse effect on general economic factors such as technological changes or significant or prolonged decline in the fair value below its cost.

When a provision is made for a permanent decline in the value of an investment security, the following accounting entries are raised.

Debit 66 14 00 Doubtful and Loss of securities on Principal
Credit 21 40 00 Allowance for potential losses on investments and securities

General Principles

CAS 25.17 states that current investments are carried at the lower of cost and market value. The carrying amount should be determined either on an aggregate portfolio basis, in total or by category of investment, or on an individual investment basis.

There are no accounts for NUHGLI for HTM securities. This is so because HTM securities are not revalued monthly.

TDS securities should be revalued at least once a month. Any difference between cost and market value is recognized in the income statement. The accounting entries are:
Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 60 00 NUHGLI – TDS

AFS securities are carried at fair value with gains and losses reported in equity. The accounting entries are:
Debit 40 61 00 Revaluation Gain/ (Loss) of AFS Securities
Credit 21 50 00 NUHGLI – AFS

Account 21 51 10 NUHGLI –Investment in Debt Securities – AFS – RGC - Treasury bill

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 51 10 NUHGLI –Investment in Debt Securities – AFS – RGC - Treasury Bill

Account 21 51 20 NUHGLI –Investment in Debt Securities – AFS – RGC – Due in one year or less

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 51 20 NUHGLI –Investment in Debt Securities – AFS – RGC – Due in one year or less

Account 21 51 30 NUHGLI –Investment in Debt Securities – AFS – RGC – Due between 1 to 5 years

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 51 30 NUHGLI –Investment in Debt Securities – AFS – RGC – Due between 1 to 5 years

Account 21 51 40 NUHGLI –Investment in Debt Securities – AFS – RGC –Due over 5 years

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 51 40 NUHGLI –Investment in Debt Securities – AFS – RGC – Due over 5 years

Account 21 51 50 NUHGLI –Investment in Debt Securities – AFS – Foreign Government – Due in one year or less

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 51 50 NUHGLI –Investment in Debt Securities – AFS – Foreign Government – Due in one year or less

Account 21 51 60 NUHGLI –Investment in Debt Securities – AFS – Foreign Government – Due between 1 to 5 years

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 51 60 NUHGLI –Investment in Debt Securities – AFS – Foreign Government – Due between 1 to 5 years

Account 21 51 70 NUHGLI –Investment in Debt Securities – AFS – Foreign Government – Due over 5 years

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 51 70 NUHGLI –Investment in Debt Securities – AFS – Foreign Government – Due over 5 years

Account 21 52 10 NUHGLI –Corporate Debt Securities – AFS – Banks – Due in one year or less

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 52 10 NUHGLI –Corporate Debt Securities – AFS – Banks – Due in one year or less

Account 21 52 20 NUHGLI –Corporate Debt Securities – AFS – OFIs – Due in one year or less

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 52 20 NUHGLI –Corporate Debt Securities – AFS – OFIs – Due in one year or less

Account 21 52 30 NUHGLI –Corporate Debt Securities – AFS – Private Sector – Due in one year or less

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 52 30 NUHGLI –Corporate Debt Securities – AFS – Private Sector – Due in one year or less

Account 21 52 40 NUHGLI –Corporate Debt Securities – AFS – State Enterprise – Due in one year or less

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 52 410 NUHGLI –Corporate Debt Securities – AFS – State Enterprise –Due in one year or less

Account 21 53 10 NUHGLI –Corporate Debt Securities – AFS – Banks – Due between 1 to 5 years

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 53 10 NUHGLI –Corporate Debt Securities – AFS – Banks – Due between 1 to 5 years

Account 21 53 20 NUHGLI –Corporate Debt Securities – AFS – OFIs – Due between 1 to 5 years

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 53 20 NUHGLI –Corporate Debt Securities – AFS – OFIs – Due between 1 to 5 years

Account 21 53 30 NUHGLI –Corporate Debt Securities – AFS – Private Sector – Due between 1 to 5 years

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 53 30 NUHGLI –Corporate Debt Securities – AFS – Private Sector – Due between 1 to 5 years

Account 21 53 40 NUHGLI –Corporate Debt Securities – AFS – State Enterprise – Due between 1 to 5 years

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 53 410 NUHGLI –Corporate Debt Securities – AFS – State Enterprise –Due between 1 to 5 years

Account 21 54 10 NUHGLI –Corporate Debt Securities – AFS – Banks – Due over 5 years

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 54 10 NUHGLI –Corporate Debt Securities – AFS – Banks – Due over 5 years

Account 21 54 20 NUHGLI –Corporate Debt Securities – AFS – OFIs – Due over 5 years

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 54 20 NUHGLI –Corporate Debt Securities – AFS – OFIs – Due over 5 years

Account 21 54 30 NUHGLI –Corporate Debt Securities – AFS – Private Sector – Due over 5 years

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 54 30 NUHGLI –Corporate Debt Securities – AFS – Private Sector – Due over 5 years

Account 21 54 40 NUHGLI –Corporate Debt Securities – AFS – State Enterprise – Due over 5 years

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 54 40 NUHGLI –Corporate Debt Securities – AFS – State Enterprise –Due over 5 years

Account 21 55 10 NUHGLI –Investment in Foreign Entities Debt securities –AFS – Due in one year or less

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 55 10 NUHGLI –Investment in Foreign Entities Debt securities – AFS –Due in one year or less

Account 21 55 20 NUHGLI –Investment in Foreign Entities Debt securities –AFS –Due in over 1 to 5 years

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 55 20 NUHGLI –Investment in Foreign Entities Debt securities – AFS Due in over 1 to 5 years

Account 21 55 30 NUHGLI –Investment in Foreign Entities Debt securities –AFS – Due in over 5 years

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 55 30 NUHGLI –Investment in Foreign Entities Debt securities – AFS –Due in over 5 years

Account 21 59 10 NUHGLI –Investment in Equity Securities – AFS – Banks–Resident

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 59 10 NUHGLI –Investment in Equity Securities – AFS – Banks - Resident

Account 21 59 20 NUHGLI –Investment in Equity Securities – AFS – OFIs –Resident

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 59 20 NUHGLI –Investment in Equity Securities – AFS – OFIs - Resident

Account 21 59 30 NUHGLI –Investment in Equity Securities – AFS – Private Sector - Resident

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 59 30 NUHGLI –Investment in Equity Securities – AFS – Private Sector-Resident

Account 21 59 40 NUHGLI –Investment in Equity Securities – AFS – State Enterprise - Resident

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 59 40 NUHGLI –Investment in Equity Securities – AFS – State Enterprise - Resident

Account 21 59 50 NUHGLI –Investment in Equity Securities – AFS – Banks–Non Resident

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 59 50 NUHGLI –Investment in Equity Securities – AFS – Banks – Non Resident

Account 21 59 60 NUHGLI –Investment in Equity Securities – AFS – OFIs –Non Resident

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 59 60 NUHGLI –Investment in Equity Securities – AFS – OFIs – Non Resident

Account 21 59 70 NUHGLI –Investment in Equity Securities – AFS – Private Sector – Non Resident

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 59 70 NUHGLI –Investment in Equity Securities – AFS – Private Sector–Non Resident

Account 21 61 10 NUHGLI –Investment in Debt Securities – TDS – RGC - Treasury bill

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 61 10 NUHGLI –Investment in Debt Securities – TDS – RGC - Treasury Bill

Account 21 61 20 NUHGLI –Investment in Debt Securities – TDS – RGC Obligation – Due in one year or less

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 61 20 NUHGLI –Investment in Debt Securities – TDS – RGC Obligation–Due in one year or less

Account 21 61 30 NUHGLI –Investment in Debt Securities – TDS – RGC Obligation – Due between 1 to 5 years

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 61 30 NUHGLI –Investment in Debt Securities – TDS – RGC Obligation–Due between 1 to 5 years

Account 21 61 40 NUHGLI –Investment in Debt Securities – TDS – RGC Obligation – Due over 5 years

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 61 40 NUHGLI –Investment in Debt Securities – TDS – RGC Obligation–Due over 5 years

Account 21 61 50 NUHGLI –Investment in Debt Securities – TDS – Foreign Government – Due in one year or less

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 61 50 NUHGLI –Investment in Debt Securities – TDS – Foreign Government – Due in one year or less

Account 21 61 60 NUHGLI –Investment in Debt Securities – TDS – Foreign Government – Due between 1 to 5 years

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 61 60 NUHGLI –Investment in Debt Securities – TDS – Foreign Government – Due between 1 to 5 years

Account 21 61 70 NUHGLI –Investment in Debt Securities – TDS – Foreign Government – Due over 5 years

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 61 70 NUHGLI –Investment in Debt Securities – TDS – Foreign Government – Due over 5 years

Account 21 62 10 NUHGLI –Corporate Debt Securities – TDS – Banks – Due in one year or less

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 62 10 NUHGLI –Corporate Debt Securities – TDS – Banks – Due in one year or less

Account 21 62 20 NUHGLI –Corporate Debt Securities – TDS – OFIs – Due in one year or less

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 62 20 NUHGLI –Corporate Debt Securities – TDS – OFIs – Due in one year or less

Account 21 62 30 NUHGLI –Corporate Debt Securities – TDS – Private Sector – Due in one year or less

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 62 30 NUHGLI –Corporate Debt Securities – TDS – Private Sector –Due in one year or less

Account 21 62 40 NUHGLI –Corporate Debt Securities – TDS – State Enterprise – Due in one year or less

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 62 410 NUHGLI –Corporate Debt Securities – TDS – State Enterprise–Due in one year or less

Account 21 63 10 NUHGLI –Corporate Debt Securities – TDS – Banks – Due between 1 to 5 years

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 63 10 NUHGLI –Corporate Debt Securities – TDS – Banks – Due between 1 to 5 years

Account 21 63 20 NUHGLI –Corporate Debt Securities – TDS – OFIs – Due between 1 to 5 years

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 63 20 NUHGLI –Corporate Debt Securities – TDS – OFIs – Due between 1 to 5 years

Account 21 63 30 NUHGLI –Corporate Debt Securities – TDS – Private Sector – Due between 1 to 5 years

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 63 30 NUHGLI –Corporate Debt Securities – TDS – Private Sector –Due between 1 to 5 years

Account 21 63 40 NUHGLI –Corporate Debt Securities – TDS – State Enterprise – Due between 1 to 5 years

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 63 410 NUHGLI –Corporate Debt Securities – TDS – State Enterprise–Due between 1 to 5 years

Account 21 64 10 NUHGLI –Corporate Debt Securities – TDS – Banks – Due over 5 years

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 64 10 NUHGLI –Corporate Debt Securities – TDS – Banks – Due over 5 years

Account 21 64 20 NUHGLI –Corporate Debt Securities – TDS – OFIs – Due over 5 years

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 64 20 NUHGLI –Corporate Debt Securities – TDS – OFIs – Due over 5 years

Account 21 64 30 NUHGLI –Corporate Debt Securities – TDS – Private Sector – Due over 5 years

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 64 30 NUHGLI –Corporate Debt Securities – TDS – Private Sector –Due over 5 years

Account 21 64 40 NUHGLI –Corporate Debt Securities – TDS – State Enterprise – Due over 5 years

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 64 410 NUHGLI –Corporate Debt Securities – TDS – State Enterprise–Due over 5 years

Account 21 65 10 NUHGLI –Investment in Foreign Entities Debt securities –TDS – Due in one year or less

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 65 10 NUHGLI –Investment in Foreign Entities Debt securities – TDS –Due in one year or less

Account 21 65 20 NUHGLI –Investment in Foreign Entities Debt securities –TDS – Due from 1 to 5 years

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 65 20 NUHGLI –Investment in Foreign Entities Debt securities – TDS –OFIs – Due from 1 to 5 years

Account 21 65 30 NUHGLI –Investment in Foreign Entities Debt securities –TDS – Due over 5 years

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 65 30 NUHGLI –Investment in Foreign Entities Debt securities – TDS –Due over 5 years

Account 21 69 10 NUHGLI –Investment in Equity Securities – TDS – Banks–Resident

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 69 10 NUHGLI –Investment in Equity Securities – TDS – Banks - Resident

Account 21 69 20 NUHGLI –Investment in Equity Securities – TDS – OFIs –Resident

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 69 20 NUHGLI –Investment in Equity Securities – TDS – OFIs - Resident

Account 21 69 30 NUHGLI –Investment in Equity Securities – TDS – Private Sector - Resident

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 69 30 NUHGLI –Investment in Equity Securities – TDS – Private Sector-Resident

Account 21 69 40 NUHGLI –Investment in Equity Securities – TDS – State Enterprise - Resident

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 69 40 NUHGLI –Investment in Equity Securities – TDS – State Enterprise - Resident

Account 21 69 50 NUHGLI –Investment in Equity Securities – TDS – Banks–Non Resident

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 69 50 NUHGLI –Investment in Equity Securities – TDS – Banks – Non Resident

Account 21 69 60 NUHGLI –Investment in Equity Securities – TDS – OFIs –Non Resident

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 69 60 NUHGLI –Investment in Equity Securities – TDS – OFIs – Non Resident

Account 21 69 70 NUHGLI –Investment in Equity Securities – TDS – Private Sector – Non Resident

Debit 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities
Credit 21 69 70 NUHGLI –Investment in Equity Securities – TDS – Private Sector–Non Resident

General Principles

Payments made by the bank for services, contracts and rental when the benefit extends for more than one month are to be accounted for as prepayments. Prepaid expenses are amortized over the period of the contract or agreement into expenses. The bank may adopt an accounting policy so that insignificant amounts, even though they are prepayments, may be immediately written off to expense. COA has provided for two accounts specifically to record the prepaid expenses which are immediately written off. They are: 64 34 40 Non-Capitalized Purchased Expense – Building and 64 34 60 Non-Capitalized Purchased Expense – Furniture, Fixtures and Equipment

Account 22 11 00 Prepaid Insurance

This account records all premiums paid on insurance for fire and other hazards which extends over one month.
Daily amortization entries are:
Debit 64 82 00 Fire and Hazard Insurance Expense
Credit 22 11 00 Prepaid Insurance

Account 22 17 00 Prepaid Other Insurance

This account records all other premiums paid on insurance such for thefts, money – in - transit, infidelity, workman compensation insurance which extends over one month.
Daily amortization entries are:
Debit 64 84 00 Other Insurance
Credit 22 17 00 Prepaid Other Insurance

Account 22 12 00 Prepaid Deposit Insurance Assessment

This account records premiums paid on deposit insurance which extends over one month.
Daily amortization entries are:
Debit 64 83 00 Deposit Insurance expense
Credit 22 12 00 Prepaid Deposit Insurance Assessment

Account 22 13 00 Prepaid Service/Maintenance Contracts

This account records payment made for contracts of cleaning services, security services, maintenance of premises and equipment, where the contractual period extends over one month.
Daily amortization entries are:
Debit 64 31 00 Repair and Maintenance expense
Credit 22 13 00 Prepaid Service/Maintenance Contracts

Account 22 14 00 Prepaid Professional Fees

This account records payment made to professional firms such as designers, advisers, consultants for work done and the benefits of which will still accrue to the bank in the future exceeding more than one month.
Daily amortization entries are:
Debit 64 42 40 Other professional Fees Expense
Credit 22 14 00 Prepaid Professional Fees

Account 22 15 00 Prepaid Rent

This account records payment in respect of rental for bank premises, equipment and furniture for periods exceeding one month. Rental payments are usually paid in advance to the landlord. These payments need to be amortized over the period of rental.
Daily amortization entries are:
Debit 64 32 10 Building Rental Expense or 64 32 30 Rental expense – Furniture, Fixtures and equipment
Credit 22 15 00 Prepaid Rent

Account 22 16 00 Prepaid Profit Tax

This account records the monthly payment of tax. The bank should also accrue monthly taxes as follows:
Debit 65 91 00 Income Tax Expense
Credit 37 11 00 Accrued Income Taxes Payable

At the end of the year, when the tax is agreed the balance of account 37 11 00 Accrued Income Taxes Payable is off – set against account 22 16 00 Prepaid Profit Tax and any difference taken to account 65 91 00 Income Tax Expense

Account 22 21 00 Recoverable VAT Receivable

VAT refers to Value Added Tax or sometimes known as Goods and Services tax. This represents the input portion of the purchase which is available for recovery.

Account 22 22 00 Income Tax Receivable

This account records the income tax which is receivable from the tax authorities. This usually occurs when the tax assessment is finalized and the bank has paid more tax than is required. When the refund is received the balance in the account is reversed to zero.

Account 22 23 00 Advance payment or Deposits

This account records payments to suppliers which is part payment of a lump sum or payment in respect of a deposit for a purchase. The amount is reversed to zero and the full amount is either capitalized or expensed when full payment is made.

Account 22 24 00 Purchase Interest Receivable

This account has been explained under investment securities. It is the amount of accrued interest paid for by the purchaser at the time of acquisition of the securities. Since interest is paid semi – annually or other periodicity, the date of purchase of any security may not coincide with the interest payment date. As interest is on an accrual basis, there is an amount of cumulative interest at the time of purchase. This is included as part of the disbursement to the seller and should be accounted for in this account. This amount should be reversed at the next interest payment date.

Account 22 25 00 Stationary Supply and Inventory

The account records balances of stationary stock, uniforms, gift items and other items which the bank does not expense immediately either because it is material in value or it requires proper accountability of its usage. The balance of this account should be written down to expense as items are used up.

Account 22 26 00 Other Prepaid Expenses and Deferred Charges

This account is used for all other prepaid expenses and deferred charges not specifically described in the COA. Subsidiary accounts using suffixes may be created for better control purposes. Deferred charges are simply a form of capitalized expense that should be amortized to expense accounts over the period in which the future benefits of a payment was made.

General Principles

This section consists of demand, savings and time deposits from NBC, Banks, Licensed MFIs and OFIs. Demand deposits accounts are segregated into interest-bearing, non-interest bearing accounts, resident and non-residents. Although the COA has accounts for demand and time deposits from NBC, in practice, it is unlikely that NBC will open demand and time deposits with commercial banks. Hence, these accounts are unlikely to be used. These accounts should be deleted from the COA.

Unposted credits are used to record postings which cannot be posted to specific accounts on the day of posting because of errors in key fields such as coding errors and account numbers. They should be reversed the next day.

Time deposits comprise short and long-term deposits from NBC, banks, Licensed MFIs and OFIs. They are further classified into resident and non-resident. Time deposit also include Certificate of deposits, Negotiable certificate of deposits, margin deposits, money market deposits, Inter-bank funds purchased, security sold under agreement to repurchase, other deposits and savings deposits.

Interest-bearing deposits should be daily accrued. The interest basis for calculating interest on deposits should be consistently applied. For instance, banks may use the 360 day basis for interest calculation for all currencies except for Sterling Pounds and Singapore Dollars or for all currencies.

Dormant accounts and unclaimed balances should be properly segregated. If necessary, subsidiary accounts may be opened for dormant and unclaimed balances. Under Article 71 of the Law of Banking and Financial Institutions, dormant accounts after 10 years should be transferred to NBC which shall be accountable thereafter for administering such deposits.

Account 31 11 10 Demand deposits – Interest bearing from NBC

[This account is not used]

Account 31 11 20 Demand deposits – Non-interest bearing from NBC

[This account is not used]

Account 31 12 10 Demand deposits – Interest bearing from banks –resident

This account records interest bearing vostro balances of resident banks. The balances bear interest and should be daily accrued as:
Debit 61 12 10 Interest Expense - Demand deposits – Interest bearing from banks –resident
Credit 34 21 10 AIP - Demand deposits – Interest bearing from banks –resident

Account 31 12 20 Demand deposits – Interest bearing from banks –non- resident

This account records interest bearing vostro balances of non-resident banks. The balances bear interest and should be daily accrued as:
Debit 61 12 20 Interest Expense - Demand deposits – Interest bearing from banks – non resident
Credit 34 21 20 AIP - Demand deposits – Interest bearing from banks – non resident

Account 31 12 30 Demand deposits – Non-Interest bearing from banks–resident

This account records Non-Interest bearing vostro balances of resident banks.

Account 31 12 40 Demand deposits – Non-Interest bearing from banks–non-resident

This account records Non-Interest bearing vostro balances of non-resident-banks.

Account 31 12 50 Unposted Credits – Banks – Resident

This account records postings which could not be made to resident banks’ accounts because of errors in coding, account name or numbering. The balance should be promptly reversed the next day.

Account 31 12 60 Unposted Credits – Banks – Non-Resident

This account records postings which could not be made to non-resident banks’ accounts because of errors in coding, account name or numbering. The balance should be promptly reversed the next day.

Account 31 12 60 Unposted Credits – Banks – Non-Resident

This account records postings which could not be made to non-resident banks’ accounts because of errors in coding, account name or numbering. The balance should be promptly reversed the next day.

Account 31 13 10 Demand deposits – Interest bearing from OFIs –resident

This account records interest bearing vostro balances of resident OFIs. The balances bear interest and should be daily accrued as:
Debit 61 13 10 Interest Expense - Demand deposits – Interest bearing from OFIs–resident
Credit 34 31 10 AIP - Demand deposits – Interest bearing from OFIs –resident

Account 31 13 20 Demand deposits – Interest bearing from OFIs –non- resident

This account records interest bearing vostro balances of non-resident OFIs. The balances bear interest and should be daily accrued as:
Debit 61 13 20 Interest Expense - Demand deposits – Interest bearing from OFIs–resident
Credit 34 31 20 AIP - Demand deposits – Interest bearing from OFIs –resident

Account 31 13 30 Demand deposits – Non-Interest bearing from OFIs–resident

This account records Non-Interest bearing vostro balances of resident OFIs.
Account 31 13 40 Demand deposits – Non-Interest bearing from OFIs –non- resident
This account records Non-Interest bearing vostro balances of non-resident OFIs.

Account 31 13 50 Unposted Credits – OFIs – Resident

This account records postings which could not be made to resident OFIs’ accounts because of errors in coding, account name or numbering. The balance should be promptly reversed the next day.

Account 31 13 60 Unposted Credits – OFIs – Non-Resident

This account records postings which could not be made to non-resident OFIs’ accounts because of errors in coding, account name or numbering. The balance should be promptly reversed the next day.

Account 31 14 10 Demand deposits – Interest bearing from Licensed MFIs–resident

This account records interest bearing vostro balances of resident Licensed MFIs. The balances bear interest and should be daily accrued as:
Debit 61 13 30 Interest Expense - Demand deposits – Interest bearing from Licensed MFIs –resident
Credit 34 31 30 AIP - Demand deposits – Interest bearing from Licensed MFIs–resident

Account 31 14 20 Demand deposits – Non-Interest bearing from Licensed MFIs –resident

This account records non-interest bearing vostro balances of resident Licensed MFIs.

Account 31 14 30 Unposted Credits – Licensed Licensed MFIs – Resident

This account records postings which could not be made to resident Licensed MFIs’ accounts because of errors in coding, account name or numbering. The balance should be promptly reversed the next day.

Account 31 21 00 Time Deposits from NBC

[This account and the related accounts of AIP and interest expense are not used]

Account 31 22 10 Short Term – Time Deposit from Banks – Resident

Daily accrual is as follows:
Debit 61 22 10 Interest Expense - Short Term – Time Deposit from Banks–Resident
Credit 34 22 10 AIP - Short Term – Time Deposit from Banks – Resident

Account 31 22 20 Short Term – Time Deposit from Banks – Non - Resident

Daily accrual is as follows:
Debit 61 22 20 Interest Expense - Short Term – Time Deposit from Banks – Non-Resident
Credit 34 22 20 AIP - Short Term – Time Deposit from Banks – Non - Resident

Account 31 22 30 Long Term – Time Deposit from Banks – Resident

Daily accrual is as follows:
Debit 61 22 30 Interest Expense - Long Term – Time Deposit from Banks–Resident
Credit 34 22 30 AIP - Long Term – Time Deposit from Banks – Resident

Account 31 22 40 Long Term – Time Deposit from Banks – Non - Resident

Daily accrual is as follows:
Debit 61 22 40 Interest Expense - Long Term – Time Deposit from Banks – Non-Resident
Credit 34 22 40 AIP - Long Term – Time Deposit from Banks – Non - Resident

Account 31 23 10 Short Term – Time Deposit from OFIs – Resident

Daily accrual is as follows:
Debit 61 23 10 Interest Expense - Short Term – Time Deposit from OFIs–Resident
Credit 34 32 10 AIP - Short Term – Time Deposit from OFIs – Resident

Account 31 23 20 Short Term – Time Deposit from OFIs – Non - Resident

Daily accrual is as follows:
Debit 61 23 20 Interest Expense - Short Term – Time Deposit from OFIs – Non-Resident
Credit 34 32 20 AIP - Short Term – Time Deposit from OFIs – Non - Resident

Account 31 23 30 Long Term – Time Deposit from OFIs – Resident

Daily accrual is as follows:
Debit 61 23 30 Interest Expense - Long Term – Time Deposit from OFIs–Resident
Credit 34 32 30 AIP - Long Term – Time Deposit from OFIs – Resident

Account 31 23 40 Long Term – Time Deposit from OFIs – Non - Resident

Daily accrual is as follows:
Debit 61 23 40 Interest Expense - Long Term – Time Deposit from OFIs – Non-Resident
Credit 34 32 40 AIP - Long Term – Time Deposit from OFIs – Non - Resident

Account 31 24 10 Short Term – Time Deposit from Licensed MFIs–Resident

Daily accrual is as follows:
Debit 61 24 10 Interest Expense - Short Term – Time Deposit from Licensed MFIs – Resident
Credit 34 32 50 AIP - Short Term – Time Deposit from Licensed MFIs – Resident

Account 31 24 20 Long Term – Time Deposit from Licensed MFIs–Resident

Daily accrual is as follows:
Debit 61 24 20 Interest Expense - Long Term – Time Deposit from Licensed MFIs–Resident
Credit 34 32 60 AIP - Long Term – Time Deposit from Licensed MFIs – Resident

Account 31 31 10 Certificate of Deposits – Banks - Resident

Daily accrual is as follows:
Debit 61 31 10 Interest expense - Certificate of Deposits – Banks - Resident
Credit 34 23 10 AIP - Certificate of Deposits – Banks – Resident

Account 31 31 20 Certificate of Deposits – Banks - Non Resident

Daily accrual is as follows:
Debit 61 31 20 Interest expense - Certificate of Deposits – Banks - Non Resident
Credit 34 23 20 AIP - Certificate of Deposits – Banks – Non Resident

Account 31 32 10 Certificate of Deposits – OFIs- Resident

Daily accrual is as follows:
Debit 61 32 10 Interest expense - Certificate of Deposits – OFIs- Resident
Credit 34 33 10 AIP - Certificate of Deposits – OFIs– Resident

Account 31 32 20 Certificate of Deposits – OFIs- Non Resident

Daily accrual is as follows:
Debit 61 32 20 Interest expense - Certificate of Deposits – OFIs- Non Resident
Credit 34 33 20 AIP - Certificate of Deposits – OFIs– Non Resident

Account 31 41 10 Negotiable Certificate of Deposits – Banks - Resident

Daily accrual is as follows:
Debit 61 41 10 Interest expense - Negotiable Certificate of Deposits – Banks - Resident
Credit 34 24 10 AIP - Negotiable Certificate of Deposits – Banks – Resident

Account 31 41 20 Negotiable Certificate of Deposits – Banks - Non Resident

Daily accrual is as follows:
Debit 61 41 20 Interest expense - Negotiable Certificate of Deposits – Banks-Non Resident
Credit 34 24 20 AIP - Negotiable Certificate of Deposits – Banks – Non Resident

Account 31 42 10 Negotiable Certificate of Deposits – OFIs- Resident

Daily accrual is as follows:
Debit 61 42 10 Interest expense - Negotiable Certificate of Deposits – OFIs- Resident
Credit 34 34 10 AIP - Negotiable Certificate of Deposits – OFIs– Resident

Account 31 42 20 Negotiable Certificate of Deposits – OFIs- Non Resident

Daily accrual is as follows:
Debit 61 42 20 Interest expense - Negotiable Certificate of Deposits – OFIs- Non Resident
Credit 34 34 20 AIP - Negotiable Certificate of Deposits – OFIs– Non Resident

Account 31 51 10 Margin or Restrictive Deposits – Banks - Resident

Daily accrual is as follows:
Debit 61 51 10 Interest expense - Margin or Restrictive Deposits–Banks - Resident
Credit 34 25 10 AIP - Margin or Restrictive Deposits – Banks – Resident

Account 31 51 20 Margin or Restrictive Deposits – Banks - Non Resident

Daily accrual is as follows:
Debit 61 51 20 Interest expense - Margin or Restrictive Deposits – Banks-Non Resident
Credit 34 25 20 AIP - Margin or Restrictive Deposits – Banks – Non Resident

Account 31 53 10 Margin or Restrictive Deposits – OFIs- Resident

Daily accrual is as follows:
Debit 61 53 10 Interest expense - Margin or Restrictive Deposits – OFIs- Resident
Credit 34 35 10 AIP - Margin or Restrictive Deposits – OFIs– Resident

Account 31 53 20 Margin or Restrictive Deposits – OFIs- Non Resident

Daily accrual is as follows:
Debit 61 53 20 Interest expense - Margin or Restrictive Deposits – OFIs- Non Resident
Credit 34 35 20 AIP - Margin or Restrictive Deposits – OFIs– Non Resident

Account 31 61 10 Money Market Deposit Accounts – Banks - Resident

Daily accrual is as follows:
Debit 61 61 10 Interest expense - Money Market Deposit Accounts – Banks - Resident
Credit 34 26 10 AIP - Money Market Deposit Accounts – Banks – Resident

Account 31 61 20 Money Market Deposit Accounts – Banks - Non Resident

Daily accrual is as follows:
Debit 61 61 20 Interest expense - Money Market Deposit Accounts – Banks - Non Resident
Credit 34 26 20 AIP - Money Market Deposit Accounts – Banks – Non Resident

Account 31 62 10 Money Market Deposit Accounts – OFIs- Resident

Daily accrual is as follows:
Debit 61 62 10 Interest expense - Money Market Deposit Accounts – OFIs- Resident
Credit 34 36 10 AIP - Money Market Deposit Accounts – OFIs– Resident

Account 31 62 20 Money Market Deposit Accounts – OFIs- Non Resident

Daily accrual is as follows:
Debit 61 62 20 Interest expense - Money Market Deposit Accounts – OFIs- Non Resident
Credit 34 36 20 AIP - Money Market Deposit Accounts – OFIs– Non Resident

Account 31 71 10 Interbank Funds Purchased – Banks - Resident

Daily accrual is as follows:
Debit 61 71 10 Interest expense - Interbank Funds Purchased – Banks - Resident
Credit 34 27 10 AIP - Interbank Funds Purchased – Banks – Resident

Account 31 71 20 Interbank Funds Purchased – Banks - Non Resident

Daily accrual is as follows:
Debit 61 71 20 Interest expense - Interbank Funds Purchased – Banks-Non Resident
Credit 34 27 20 AIP - Interbank Funds Purchased – Banks – Non Resident

Account 31 72 10 Interbank Funds Purchased – OFIs- Resident

Daily accrual is as follows:
Debit 61 72 10 Interest expense - Interbank Funds Purchased – OFIs- Resident
Credit 34 37 10 AIP - Interbank Funds Purchased – OFIs– Resident

Account 31 72 20 Interbank Funds Purchased – OFIs- Non Resident

Daily accrual is as follows:
Debit 61 72 20 Interest expense - Interbank Funds Purchased – OFIs- Non Resident
Credit 34 37 20 AIP - Interbank Funds Purchased – OFIs– Non Resident

Account 31 81 10 Security Sold Under Agreement to Repurchase - Overnight – Banks - Resident

Daily accrual is as follows:
Debit 61 81 10 Interest expense - Security Sold under Agreement to Repurchase-Overnight–Banks-Resident
Credit 34 28 10 AIP - Security Sold Under Agreement to Repurchase - Overnight–Banks–Resident

Account 31 81 20 Security Sold Under Agreement to Repurchase - Overnight – Banks - Non Resident

Daily accrual is as follows:
Debit 61 81 20 Interest expense - Security Sold under Agreement to Repurchase-Overnight–Banks-Non Resident
Credit 34 28 20 AIP - Security Sold Under Agreement to Repurchase - Overnight–Banks–Non Resident

Account 31 82 10 Security Sold Under Agreement to Repurchase - Overnight – OFIs- Resident

Daily accrual is as follows:
Debit 61 82 10 Interest expense - Security Sold under Agreement to Repurchase-Overnight–OFIs-Resident
Credit 34 38 10 AIP - Security Sold Under Agreement to Repurchase-Overnight–OFIs–Resident

Account 31 82 20 Security Sold Under Agreement to Repurchase-Overnight– OFIs- Non Resident

Daily accrual is as follows:
Debit 61 82 20 Interest expense - Security Sold under Agreement to Repurchase-Overnight–OFIs- Non Resident
Credit 34 38 20 AIP - Security Sold Under Agreement to Repurchase - Overnight–OFIs– Non Resident

Account 31 91 00 Other Deposits – NBC

[These accounts and related interest expense and AIP accounts are not used]

Account 31 92 10 Short term – Other Deposits – Banks – Resident

Daily accrual is as follows:
Debit 61 92 10 Interest Expense-Short term – Other Deposits–Banks–Resident
Credit 34 29 10 AIP - Short term – Other Deposits – Banks – Resident

Account 31 92 20 Short term – Other Deposits – Banks – Non Resident

Daily accrual is as follows:
Debit 61 92 20 Interest Expense - Short term – Other Deposits – Banks – Non Resident
Credit 34 29 20 AIP - Short term – Other Deposits – Banks – Non Resident

Account 31 92 30 Long term – Other Deposits – Banks – Resident

Daily accrual is as follows:
Debit 61 92 30 Interest Expense - Long term–Other Deposits–Banks–Resident
Credit 34 29 30 AIP - Long term – Other Deposits – Banks – Resident

Account 31 92 40 Long term – Other Deposits – Banks – Non Resident

Daily accrual is as follows:
Debit 61 92 40 Interest Expense - Long term – Other Deposits – Banks – Non Resident
Credit 34 29 40 AIP - Long term – Other Deposits – Banks – Non Resident

Account 31 93 10 Short term – Other Deposits – OFIs – Resident

Daily accrual is as follows:
Debit 61 93 10 Interest Expense - Short term – Other Deposits – OFIs – Resident
Credit 34 39 10 AIP - Short term – Other Deposits – OFIs – Resident

Account 31 93 20 Short term – Other Deposits – OFIs – Non Resident

Daily accrual is as follows:
Debit 61 93 20 Interest Expense - Short term – Other Deposits – OFIs – Non Resident
Credit 34 39 20 AIP - Short term – Other Deposits – OFIs – Non Resident

Account 31 93 30 Long term – Other Deposits – OFIs – Resident

Daily accrual is as follows:
Debit 61 93 30 Interest Expense - Long term – Other Deposits – OFIs – Resident
Credit 34 39 30 AIP - Long term – Other Deposits – OFIs – Resident

Account 31 93 40 Long term – Other Deposits – OFIs – Non Resident

Daily accrual is as follows:
Debit 61 93 40 Interest Expense - Long term – Other Deposits – OFIs – Non Resident
Credit 34 39 40 AIP - Long term – Other Deposits – OFIs – Non Resident

Account 31 94 10 Savings Deposits - Banks – Resident

Daily accrual is as follows:
Debit 61 94 10 Interest Expense - Savings Deposits - Banks – Resident
Credit 34 29 50 AIP - Savings Deposits - Banks – Resident

Account 31 94 20 Savings Deposits - Banks – Non Resident

Daily accrual is as follows:
Debit 61 94 20 Interest Expense - Savings Deposits - Banks – Non Resident
Credit 34 29 60 AIP - Savings Deposits - Banks – Non Resident

Account 31 95 10 Savings Deposits - OFIs – Resident

Daily accrual is as follows:
Debit 61 95 10 Interest Expense - Savings Deposits - OFIs – Resident
Credit 34 39 50 AIP - Savings Deposits - OFIs – Resident

Account 31 95 20 Savings Deposits - OFIs – Non Resident

Daily accrual is as follows:
Debit 61 95 20 Interest Expense - Savings Deposits - OFIs – Non Resident
Credit 34 39 60 AIP - Savings Deposits - OFIs – Non Resident

Account 31 96 00 Savings Deposits - Licensed MFIs – Resident

Daily accrual is as follows:
Debit 61 96 00 Interest Expense - Savings Deposits - Licensed MFIs – Resident
Credit 34 39 70 AIP - Savings Deposits - Licensed

General Principles

This section covers demand deposits, certified checks, unposted credits, savings deposits, time deposits, certificate of deposits, negotiable certificate of deposits, margin or restrictive deposits, money market deposits and other short term and long term deposits from customers.

The accounts are sub-classified into individuals, private sector, state enterprise, provinces and communes, Royal Government and into resident and non- Certain accounts such as negotiable certificate of deposits and certificate of deposits from individuals are unlikely to be used and will be ignored.

Banks may sub – classify both short – term time deposits and long – term time deposits accounts into 1, 3, 6, 12 months or 1, 2, 3, 5 and over 5 years, for instance, to provide better control and necessary information for Prakas on annual audit.

Interest-bearing deposit accounts should be daily accrued for interest payable and the contra taken to expense.

Dormant deposit accounts should be managed with caution by bank management and all movements scrutinized for authenticity. A separate sub- classification may be created to identify such dormant accounts.

Unclaimed customers’ deposits need to be segregated from active accounts. The main customer account can be segregated between active, dormant and unclaimed accounts The Law on Banking and Financial Institutions Article 71, requires that credit balances of customer accounts which have been dormant for 10 consecutive years be transferred to the National bank of Cambodia.

Margin deposits are deposits placed by customers with the bank for certain transactions with the bank, such as for opening letters of credit or shipping guarantees. Margin deposits are often non-interest bearing but when they do, daily interest accrual should be done.

Certificates of Deposits and Negotiable certificate of deposits are usually issued for larger amounts than time deposits. The former is issued in the name of the individual, private sector, state enterprise, province and commune council or the Royal Government. The latter is usually issued to bearer. This product is currently not used in Cambodia at the date of writing.

Money Market Deposit accounts are interest bearing accounts that earn the customer higher rates of interest than savings accounts. The deposits are invested in money market instruments to yield a better rate of return so that the bank in turn pays its customers a higher interest rate This product is currently not available in Cambodia as of the time of writing.

Other deposit accounts are segregated into short term and long term. They are meant for future use when new deposit products are developed.

Account 32 11 10 Demand Deposits – Interest Bearing – Individuals–Resident

Daily interest accrual is as follows:
Debit 62 11 10 Interest Expense Demand Deposits – Interest Bearing–Individuals–Resident
Credit 34 41 10 AIP - Demand Deposits – Interest Bearing–Individuals–Resident

Account 32 11 20 Demand Deposits – Interest Bearing – Individuals – Non Resident

Daily interest accrual is as follows:
Debit 62 11 20 Interest Expense Demand Deposits – Interest Bearing –Individuals – Non Resident
Credit 34 41 20 AIP - Demand Deposits – Interest Bearing – Individuals – Non Resident

Account 32 11 30 Demand Deposits – Non Interest Bearing – Individuals –Resident

No daily interest accrual needed.

Account 32 11 40 Demand Deposits – Non Interest Bearing – Individuals –Non Resident

No daily interest accrual needed.

Account 32 11 50 Certified Checks Outstanding and Bank Checks Issued Outstanding – Individuals – Resident

This account records banker’ checks issued to resident individuals which have not been presented for payment at the issuing bank.

Account 32 11 60 Certified Checks Outstanding and Bank issued Foreign Draft Outstanding – Individuals – Non Resident

This account records banker’ checks issued to non-resident individuals which have not been presented for payment at the issuing bank.

Account 32 11 70 Unposted Credits – Individuals – Resident

This records credits to customers’ accounts of resident individuals which cannot be posted for the day because of coding and other errors. The balance in this account should be cleared the next day.

Account 32 11 80 Unposted Credits – Individuals – Non-Resident

This records credits to customers’ accounts of non-resident individuals which were not posted because of coding and other errors. The balance in this account should be cleared the next day.

Account 32 12 10 Demand Deposits – Interest Bearing – Private Sector –Resident

Daily interest accrual is as follows:
Debit 62 12 10 Interest Expense Demand Deposits – Interest Bearing – Private Sector – Resident
Credit 34 51 10 AIP - Demand Deposits – Interest Bearing – Private Sector –Resident

Account 32 12 20 Demand Deposits – Interest Bearing – Private Sector –Non Resident

Daily interest accrual is as follows:
Debit 62 12 20 Interest Expense Demand Deposits – Interest Bearing – Private Sector – Non Resident
Credit 34 51 20 AIP - Demand Deposits – Interest Bearing – Private Sector –Non Resident

Account 32 12 30 Demand Deposits – Non Interest Bearing – Private Sector–Resident

No daily interest accrual needed.

Account 32 12 40 Demand Deposits – Non Interest Bearing – Private Sector–Non Resident

No daily interest accrual needed.

Account 32 12 50 Certified Checks Outstanding and Bank Checks Issued Outstanding – Private Sector – Resident

This account records banker’ checks issued to resident Private Sector which have not been presented for payment.

Account 32 12 60 Certified Checks Outstanding and Bank Checks Issued Outstanding – Private Sector – Non Resident

This account records banker’ checks issued to non-resident Private Sector which have not been presented for payment.

Account 32 12 70 Unposted Credits – Private Sector – Resident

This records credits to customers’ accounts of resident Private Sector which were not posted for the day because of coding and other errors. The balance in this account should be cleared the next day.

Account 32 12 80 Unposted Credits – Private Sector – Non-Resident

This records credits to customers’ accounts of non-resident Private Sector which were not posted for the day because of coding and other errors. The balance in this account should be cleared the next day.

Account 32 13 10 Demand Deposits – Interest Bearing – State Enterprise

Daily interest accrual is as follows:
Debit 62 13 00 Interest Expense Demand Deposits – Interest Bearing – State Enterprise
Credit 34 61 00 AIP - Demand Deposits – Interest Bearing – State Enterprise

Account 32 13 20 Demand Deposits – Non Interest Bearing – State Enterprise

No daily interest accrual needed.

Account 32 13 30 Certified Checks Outstanding and Bank Checks Issued Outstanding – State Enterprise

This account records banker’ checks issued to resident State Enterprise which have not been presented for payment

Account 32 13 40 Unposted Credits – State Enterprise

This records credits to customers’ accounts of State Enterprise which were not posted for the day because of coding and other errors. The balance in this account should be cleared the next day.

Account 32 14 10 Demand Deposits – Interest Bearing – Royal Government of Cambodia

Daily interest accrual is as follows:
Debit 62 14 00 Interest Expense Demand Deposits – Interest Bearing – Royal Government of Cambodia
Credit 34 71 00 AIP - Demand Deposits – Interest Bearing – Royal Government of Cambodia

Account 32 14 20 Demand Deposits – Non Interest Bearing – Royal Government of Cambodia

No daily interest accrual needed.

Account 32 14 30 Certified Checks Outstanding and Bank Checks Issued Outstanding – Royal Government of Cambodia

This account records bankers’ check issued to resident Royal Government of Cambodia which have not been presented for payment.

Account 32 14 40 Unposted Credits – Royal Government of Cambodia

This records credits to customers’ accounts of Royal Government of Cambodia which cannot be posted for the day because of coding and other errors. The balance in this account should be cleared the next day.

Account 32 15 10 Demand Deposits – Interest Bearing – Provinces and Commune Councils

Daily interest accrual is as follows:
Debit 62 15 00 Interest Expense Demand Deposits – Interest Bearing –Provinces and Commune Councils
Credit 34 81 00 AIP - Demand Deposits – Interest Bearing – Provinces and Commune Councils

Account 32 15 20 Demand Deposits – Non Interest Bearing – Provinces and Commune Councils

No daily interest accrual needed.

Account 32 15 30 Certified Checks Outstanding and Bank Checks Issued Outstanding – Provinces and Commune Councils

This account records bankers’ check issued to Provinces and Commune Councils and outstanding.

Account 32 15 40 Unposted Credits – Provinces and Commune Councils

This records credits to customers’ accounts of Provinces and Commune Councils were not posted for the day because of coding and other errors. The balance in this account should be cleared the next day.

Account 32 21 10 Savings Deposits – Individuals – Resident

Daily accrual interest is as follows:
Debit 62 21 10 Interest Expense - Savings Deposits – Individuals – Resident
Credit 34 42 10 AIP - Savings Deposits – Individuals – Resident

Account 32 21 20 Savings Deposits – Individuals – Non-resident

Daily accrual interest is as follows:
Debit 62 21 20 Interest Expense - Savings Deposits – Individuals – Non-resident
Credit 34 42 20 AIP - Savings Deposits – Individuals – Non-resident

Account 32 22 10 Savings Deposits – Private Sector – Resident

Daily accrual interest is as follows:
Debit 62 22 10 Interest Expense - Savings Deposits – Private Sector – Resident
Credit 34 52 10 AIP - Savings Deposits – Private Sector – Resident

Account 32 22 20 Savings Deposits – Private Sector – Non-resident

Daily accrual interest is as follows:
Debit 62 22 20 Interest Expense - Savings Deposits – Private Sector – Non- resident
Credit 34 52 20 AIP - Savings Deposits – Private Sector – Non-resident

[Note: The accounts 34 52 30 AIP – Long Term – Savings Deposits – Private Sector – Resident and 34 52 40 AIP – Long Term – Savings Deposits – Private Sector – Non Resident are not to be used. Savings deposits are not segregated by short-term or long-term duration. Accrued Interest Payable for savings deposits should not be segregated into short –term and long - term]

Account 32 23 00 Savings Deposits – State Enterprise

Daily accrual interest is as follows:
Debit 62 23 10 Interest Expense - Savings Deposits – State Enterprise
Credit 34 62 00 AIP - Savings Deposits – State Enterprise

Account 32 24 00 Savings Deposits – Royal Government of Cambodia

Daily accrual interest is as follows:
Debit 62 24 10 Interest Expense - Savings Deposits – Royal Government of Cambodia
Credit 34 72 00 AIP - Savings Deposits – Royal Government of Cambodia

Account 32 25 00 Savings Deposits – Provinces and Commune Councils

Daily accrual interest is as follows:
Debit 62 25 10 Interest Expense - Savings Deposits – Provinces and Commune Councils
Credit 34 82 00 AIP - Savings Deposits – Provinces and Commune Councils

Account 32 31 10 Short Term – Time Deposit – Individual – Resident

Daily accrual is as follows:
Debit 62 31 10 Interest Expense - Short Term – Time Deposit – Individual –Resident
Credit 34 43 10 AIP - Short Term – Time Deposit – Individual – Resident

Account 32 31 20 Short Term – Time Deposit – Individual – Non Resident

Daily accrual is as follows:
Debit 62 31 20 Interest Expense - Short Term – Time Deposit – Individual – Non Resident
Credit 34 43 20 AIP - Short Term – Time Deposit – Individual – Non Resident

Account 32 31 30 Long Term– Time Deposit – Individual – Resident

Daily accrual is as follows:
Debit 62 31 30 Interest Expense - Long Term– Time Deposit – Individual–Resident
Credit 34 43 30 AIP - Long Term– Time Deposit – Individual – Resident

Account 32 31 40 Long Term– Time Deposit – Individual – Non Resident

Daily accrual is as follows:
Debit 62 31 40 Interest Expense - Long Term– Time Deposit – Individual – Non Resident
Credit 34 43 40 AIP - Long Term– Time Deposit – Individual – Non Resident

Account 32 32 10 Short Term – Time Deposit – Private Sector – Resident

Daily accrual is as follows:
Debit 62 32 10 Interest Expense - Short Term – Time Deposit – Private Sector –Resident
Credit 34 53 10 AIP - Short Term – Time Deposit – Private Sector – Resident

Account 32 32 20 Short Term – Time Deposit – Private Sector – Non Resident

Daily accrual is as follows:
Debit 62 32 20 Interest Expense - Short Term – Time Deposit – Private Sector –Non Resident
Credit 34 53 20 AIP - Short Term – Time Deposit – Private Sector – Non Resident

Account 32 32 30 Long Term– Time Deposit – Private Sector – Resident

Daily accrual is as follows:
Debit 62 32 30 Interest Expense - Long Term– Time Deposit – Private Sector –Resident
Credit 34 53 30 AIP - Long Term– Time Deposit – Private Sector – Resident

Account 32 32 40 Long Term– Time Deposit – Private Sector – Non Resident

Daily accrual is as follows:
Debit 62 32 40 Interest Expense - Long Term– Time Deposit – Private Sector –Non Resident
Credit 34 53 40 AIP - Long Term– Time Deposit – Private Sector – Non Resident

Account 32 33 10 Short Term – Time Deposit – State Enterprise

Daily accrual is as follows:
Debit 62 33 10 Interest Expense - Short Term – Time Deposit – State Enterprise
Credit 34 63 10 AIP - Short Term – Time Deposit – State Enterprise

Account 32 33 20 Long Term – Time Deposit – State Enterprise

Daily accrual is as follows:
Debit 62 33 20 Interest Expense - Long Term – Time Deposit – State Enterprise
Credit 34 63 20 AIP - Long Term – Time Deposit – State Enterprise

Account 32 34 10 Short Term – Time Deposit – Royal Government of Cambodia

Daily accrual is as follows:
Debit 62 34 10 Interest Expense - Short Term – Time Deposit – Royal Government of Cambodia
Credit 34 73 10 AIP - Short Term – Time Deposit – Royal Government of Cambodia

Account 32 34 20 Long Term – Time Deposit – Royal Government of Cambodia

Daily accrual is as follows:
Debit 62 34 20 Interest Expense - Long Term – Time Deposit – Royal Government of Cambodia
Credit 34 73 20 AIP - Long Term – Time Deposit – Royal Government of Cambodia

Account 32 35 10 Short Term – Time Deposit – Provinces and Commune Councils

Daily accrual is as follows:
Debit 62 35 10 Interest Expense - Short Term – Time Deposit – Provinces and Commune Councils
Credit 34 83 10 AIP - Short Term – Time Deposit – Provinces and Commune Councils

Account 32 35 20 Long Term – Time Deposit – Provinces and Commune Councils

Daily accrual is as follows:
Debit 62 35 20 Interest Expense - Long Term – Time Deposit – Provinces and Commune Councils
Credit 34 83 20 AIP - Long Term – Time Deposit – Provinces and Commune Councils

Account 32 41 10 Certificate of Deposits – Individuals – Resident

Daily interest accrual is as follows:
Debit 62 41 10 Interest Expense - Certificate of Deposits – Individuals – Resident
Credit 34 44 10 AIP - Certificate of Deposits – Individuals – Resident

Account 32 41 20 Certificate of Deposits – Individuals – Non Resident

Daily interest accrual is as follows:
Debit 62 41 20 Interest Expense - Certificate of Deposits – Individuals – Non Resident
Credit 34 44 20 AIP - Certificate of Deposits – Individuals – Non Resident

Account 32 42 10 Certificate of Deposits – Private Sector - Resident

Daily interest accrual is as follows:
Debit 62 42 10 Interest Expense - Certificate of Deposits – Private Sector –Resident
Credit 34 54 10 AIP - Certificate of Deposits – Private Sector – Resident

Account 32 42 20 Certificate of Deposits – Private Sector – Non Resident

Daily interest accrual is as follows:
Debit 62 42 20 Interest Expense - Certificate of Deposits – Private Sector – Non Resident
Credit 34 54 20 AIP - Certificate of Deposits – Private Sector – Non Resident

Account 32 43 00 Certificate of Deposits – State Enterprise

Daily interest accrual is as follows:
Debit 62 43 00 Interest Expense - Certificate of Deposits – State Enterprise
Credit 34 64 00 AIP - Certificate of Deposits – State Enterprise

Account 32 44 00 Certificate of Deposits – Royal Government of Cambodia

Daily interest accrual is as follows:
Debit 62 44 00 Interest Expense - Certificate of Deposits – Royal Government of Cambodia
Credit 34 74 00 AIP - Certificate of Deposits – Royal Government of Cambodia

Account 32 45 00 Certificate of Deposits – Provinces and Commune Councils

Daily interest accrual is as follows:
Debit 62 45 00 Interest Expense - Certificate of Deposits – Provinces and Commune Councils
Credit 34 84 00 AIP - Certificate of Deposits – Provinces and Commune Councils

Account 32 51 10 Negotiable Certificate of Deposits – Individuals –Resident

Daily interest accrual is as follows:
Debit 62 51 10 Interest Expense - Negotiable Certificate of Deposits – Individuals–Resident
Credit 34 45 10 AIP - Negotiable Certificate of Deposits – Individuals – Resident

Account 32 51 20 Negotiable Certificate of Deposits – Individuals – Non Resident

Daily interest accrual is as follows:
Debit 62 51 20 Interest Expense - Negotiable Certificate of Deposits – Individuals–Non Resident
Credit 34 45 20 AIP - Negotiable Certificate of Deposits – Individuals – Non Resident

Account 32 52 10 Negotiable Certificate of Deposits – Private Sector - Resident

Daily interest accrual is as follows:
Debit 62 52 10 Interest Expense - Negotiable Certificate of Deposits – Private Sector – Resident
Credit 34 55 10 AIP - Negotiable Certificate of Deposits – Private Sector –Resident

Account 32 52 20 Negotiable Certificate of Deposits – Private Sector – Non Resident

Daily interest accrual is as follows:
Debit 62 52 20 Interest Expense - Negotiable Certificate of Deposits – Private Sector – Non Resident
Credit 34 55 20 AIP - Negotiable Certificate of Deposits – Private Sector – Non Resident

Account 32 53 00 Negotiable Certificate of Deposits – State Enterprise

Daily interest accrual is as follows:
Debit 62 53 00 Interest Expense - Negotiable Certificate of Deposits – State Enterprise
Credit 34 65 00 AIP - Negotiable Certificate of Deposits – State Enterprise

Account 32 54 00 Negotiable Certificate of Deposits – Royal Government of Cambodia

Daily interest accrual is as follows:
Debit 62 54 00 Interest Expense - Negotiable Certificate of Deposits – Royal Government of Cambodia
Credit 34 75 00 AIP - Negotiable Certificate of Deposits – Royal Government of Cambodia

Account 32 55 00 Negotiable Certificate of Deposits – Provinces and Commune Councils

Daily interest accrual is as follows:
Debit 62 55 00 Interest Expense - Negotiable Certificate of Deposits – Provinces and Commune Councils
Credit 34 85 00 AIP - Negotiable Certificate of Deposits – Provinces and Commune Councils

Account 32 61 10 Margin or Restrictive Deposits – Individuals – Resident

Daily interest accrual is as follows:
Debit 62 61 10 Interest Expense - Margin or Restrictive Deposits – Individuals –Resident
Credit 34 46 10 AIP - Margin or Restrictive Deposits – Individuals – Resident

Account 32 61 20 Margin or Restrictive Deposits – Individuals – Non Resident

Daily interest accrual is as follows:
Debit 62 61 20 Interest Expense - Margin or Restrictive Deposits – Individuals –Non Resident
Credit 34 46 20 AIP - Margin or Restrictive Deposits – Individuals – Non Resident

Account 32 62 10 Margin or Restrictive Deposits – Private Sector - Resident

Daily interest accrual is as follows:
Debit 62 62 10 Interest Expense - Margin or Restrictive Deposits – Private Sector–Resident
Credit 34 56 10 AIP - Margin or Restrictive Deposits – Private Sector – Resident

Account 32 62 20 Margin or Restrictive Deposits – Private Sector – Non Resident

Daily interest accrual is as follows:
Debit 62 62 20 Interest Expense - Margin or Restrictive Deposits – Private Sector–Non Resident
Credit 34 56 20 AIP - Margin or Restrictive Deposits – Private Sector – Non Resident

Account 32 63 00 Margin or Restrictive Deposits – State Enterprise

Daily interest accrual is as follows:
Debit 62 63 00 Interest Expense - Margin or Restrictive Deposits – State Enterprise
Credit 34 66 00 AIP - Margin or Restrictive Deposits – State Enterprise

Account 32 64 00 Margin or Restrictive Deposits – Royal Government of Cambodia

Daily interest accrual is as follows:
Debit 62 64 00 Interest Expense - Margin or Restrictive Deposits – Royal Government of Cambodia
Credit 34 76 00 AIP - Margin or Restrictive Deposits – Royal Government of Cambodia

Account 32 65 00 Margin or Restrictive Deposits – Provinces and Commune Councils

Daily interest accrual is as follows:
Debit 62 65 00 Interest Expense - Margin or Restrictive Deposits – Provinces and Commune Councils
Credit 34 86 00 AIP - Margin or Restrictive Deposits – Provinces and Commune Councils

Account 32 71 10 Money market deposit accounts – Individuals – Resident

Daily interest accrual is as follows:
Debit 62 71 10 Interest Expense - Money market deposit accounts – Individuals –Resident
Credit 34 47 10 AIP - Money market deposit accounts – Individuals – Resident

Account 32 71 20 Money market deposit accounts – Individuals – Non Resident

Daily interest accrual is as follows:
Debit 62 71 20 Interest Expense - Money market deposit accounts – Individuals –Non Resident
Credit 34 47 20 AIP - Money market deposit accounts – Individuals – Non Resident

Account 32 72 10 Money market deposit accounts – Private Sector - Resident

Daily interest accrual is as follows:
Debit 62 72 10 Interest Expense - Money market deposit accounts – Private Sector – Resident
Credit 34 57 10 AIP - Money market deposit accounts – Private Sector –Resident

Account 32 72 20 Money market deposit accounts – Private Sector – Non Resident

Daily interest accrual is as follows:
Debit 62 72 20 Interest Expense - Money market deposit accounts – Private Sector – Non Resident
Credit 34 57 20 AIP - Money market deposit accounts – Private Sector – Non Resident

Account 32 73 00 Money market deposit accounts – State Enterprise

Daily interest accrual is as follows:
Debit 62 73 00 Interest Expense - Money market deposit accounts – State Enterprise
Credit 34 67 00 AIP - Money market deposit accounts – State Enterprise

Account 32 74 00 Money market deposit accounts – Royal Government of Cambodia

Daily interest accrual is as follows:
Debit 62 74 00 Interest Expense - Money market deposit accounts – Royal Government of Cambodia
Credit 34 77 00 AIP - Money market deposit accounts – Royal Government of Cambodia

Account 32 75 00 Money market deposit accounts – Provinces and Commune Councils

Daily interest accrual is as follows:
Debit 62 75 00 Interest Expense - Money market deposit accounts – Provinces and Commune Councils
Credit 34 87 00 AIP - Money market deposit accounts – Provinces and Commune Councils

Account 32 81 10 Other Short Term Deposits – Individuals – Resident

Daily interest accrual is as follows:
Debit 62 81 10 Interest Expense - Other Short Term Deposits – Individuals –Resident
Credit 34 48 10 AIP - Other Short Term Deposits – Individuals – Resident

Account 32 81 20 Other Short Term Deposits – Individuals – Non Resident

Daily interest accrual is as follows:
Debit 62 81 20 Interest Expense - Other Short Term Deposits – Individuals – Non Resident
Credit 34 48 20 AIP - Other Short Term Deposits – Individuals – Non Resident

Account 32 81 30 Other Long Term Deposits – Individuals – Resident

Daily interest accrual is as follows:
Debit 62 81 30 Interest Expense - Other Long Term Deposits – Individuals–Resident
Credit 34 48 30 AIP - Other Long Term Deposits – Individuals – Resident

Account 32 81 40 Other Long Term Deposits – Individuals – Non Resident

Daily interest accrual is as follows:
Debit 62 81 40 Interest Expense - Other Long Term Deposits – Individuals – Non Resident
Credit 34 48 40 AIP - Other Long Term Deposits – Individuals – Non Resident

Account 32 82 10 Other Short Term Deposits – Private Sector – Resident

Daily interest accrual is as follows:
Debit 62 82 10 Interest Expense - Other Short Term Deposits – Private Sector–Resident
Credit 34 58 10 AIP - Other Short Term Deposits – Private Sector – Resident

Account 32 82 20 Other Short Term Deposits – Private Sector – Non Resident

Daily interest accrual is as follows:
Debit 62 82 20 Interest Expense - Other Short Term Deposits – Private Sector –Non Resident
Credit 34 58 20 AIP - Other Short Term Deposits – Private Sector – Non Resident

Account 32 82 30 Other Long Term Deposits – Private Sector – Resident

Daily interest accrual is as follows:
Debit 62 82 30 Interest Expense - Other Long Term Deposits – Private Sector –Resident
Credit 34 58 30 AIP - Other Long Term Deposits – Private Sector – Resident

Account 32 82 40 Other Long Term Deposits – Private Sector – Non Resident

Daily interest accrual is as follows:
Debit 62 82 40 Interest Expense - Other Long Term Deposits – Private Sector –Non Resident
Credit 34 58 40 AIP - Other Long Term Deposits – Private Sector – Non Resident

Account 32 83 10 Other Short Term Deposits – State Enterprise

Daily interest accrual is as follows:
Debit 62 83 10 Interest Expense - Other Short Term Deposits – State Enterprise
Credit 34 68 10 AIP - Other Short Term Deposits – State Enterprise

Account 32 83 20 Other Long Term Deposits – State Enterprise

Daily interest accrual is as follows:
Debit 62 83 20 Interest Expense - Other Long Term Deposits – State Enterprise
Credit 34 68 20 AIP - Other Long Term Deposits – State Enterprise

Account 32 84 10 Other Short Term Deposits – Royal Government of Cambodia

Daily interest accrual is as follows:
Debit 62 84 10 Interest Expense - Other Short Term Deposits – Royal Government of Cambodia
Credit 34 78 10 AIP - Other Short Term Deposits – Royal Government of Cambodia

Account 32 84 20 Other Long Term Deposits – Royal Government of Cambodia

Daily interest accrual is as follows:
Debit 62 84 20 Interest Expense - Other Long Term Deposits – Royal Government of Cambodia
Credit 34 78 20 AIP - Other Long Term Deposits – Royal Government of Cambodia

Account 32 85 10 Other Short Term Deposits – Provinces and Commune Councils

Daily interest accrual is as follows:
Debit 62 85 10 Interest Expense - Other Short Term Deposits – Provinces and Commune Councils
Credit 34 88 10 AIP - Other Short Term Deposits – Provinces and Commune Councils

Account 32 85 20 Other Long Term Deposits – Provinces and Commune Councils

Daily interest accrual is as follows:
Debit 62 85 20 Interest Expense - Other Long Term Deposits – Provinces and Commune Councils
Credit 34 88 20 AIP - Other Long Term Deposits – Provinces

General Principles

Borrowed funds are differentiated from deposits in that the terms of the borrowing are usually spelt out formally in loan agreements between the borrower bank the lender and a third party, if applicable. Examples are: borrowed funds from RDB for the purpose of re-lending funds from ADB to be exclusively used to finance loans to rural micro-enterprises or borrowed funds from Kreditanstalt Fur Wiederaufbau through MEF which the bank will finance investment projects of SMEs. Loan draw - downs on borrowed funds may take the form of fixed, floating notes or bonds or redeemable preference shares or convertible bonds issued to banks or other financial institutions for fixed term as stipulated in the terms and conditions of notes or bonds issue, or more simply, documented through a loan agreement.

Overdraft balances on correspondent accounts are classified under borrowed funds.

Lines of Credit refer to credit facilities offered to the bank from IMF, World Bank, ADB and other NGOs.

Senior debts rank at a higher priority than similar debts of an issuer whereas subordinated debt has a lower priority than similar debts to the same issuer. The terms of issue of such debts are usually found in the debt agreement signed between the bank and the lender. These terms include, amount, interest rate, priority of payment, partial repayments, events of default and maturity.

Bankers’ Acceptances Outstanding represent bills of exchange drawn by a bank and accepted by another bank sold to a third party in the secondary market. The seller will record the liability as Bankers’ Acceptances Outstanding and accrue the interest daily. The buyer will record the asset as Bankers’ Acceptances in account 13 27 1x. Bankers’ Acceptances Outstanding and Bankers’ Acceptances should be distinguished from Acceptances and Acceptances Outstanding, which are contra accounts in class 9. The accounts in class 9 record the acceptance by the customer of a usance bill.

Account 33 11 10 Overdraft on Correspondent Account – Banks – Resident

Daily accrual of interest is as follows:
Debit 63 11 10 Interest Expense - Overdraft on Correspondent Account – Banks–Resident
Credit 35 11 10 AIP - Overdraft on Correspondent Account – Banks – Resident

Account 33 11 20 Overdraft on Correspondent Account – Banks – Non Resident

Daily accrual of interest is as follows:
Debit 63 11 20 Interest Expense - Overdraft on Correspondent Account – Banks–Non Resident
Credit 35 11 20 AIP - Overdraft on Correspondent Account – Banks – Non Resident

Account 33 11 30 Short term loans from Banks – Resident

Daily accrual of interest is as follows:
Debit 63 11 30 Interest Expense - Short term loans from Banks – Resident
Credit 35 11 30 AIP - Short term loans from Banks – Resident

Account 33 11 40 Short term loans from Banks – Non Resident

Daily accrual of interest is as follows:
Debit 63 11 40 Interest Expense - Short term loans from Banks – Non Resident
Credit 35 11 40 AIP - Short term loans from Banks – Non Resident

Account 33 12 10 Overdraft on Correspondent Account – OFIs – Resident

Daily accrual of interest is as follows:
Debit 63 12 10 Interest Expense - Overdraft on Correspondent Account–OFIs–Resident
Credit 35 12 10 AIP - Overdraft on Correspondent Account – OFIs – Resident

Account 33 12 20 Overdraft on Correspondent Account – OFIs – Non Resident

Daily accrual of interest is as follows:
Debit 63 12 20 Interest Expense - Overdraft on Correspondent Account–OFIs–Non Resident
Credit 35 12 20 AIP - Overdraft on Correspondent Account – OFIs – Non Resident

Account 33 12 30 Short term loans from OFIs – Resident

Daily accrual of interest is as follows:
Debit 63 12 30 Interest Expense - Short term loans from OFIs – Resident
Credit 35 12 30 AIP - Short term loans from OFIs – Resident

Account 33 12 40 Short term loans from OFIs – Non Resident

Daily accrual of interest is as follows:
Debit 63 12 40 Interest Expense - Short term loans from OFIs – Non Resident
Credit 35 12 40 AIP - Short term loans from OFIs – Non Resident

Account 33 21 10 Line of Credit – Resident

Daily accrual of interest is as follows:
Debit 63 21 10 Interest Expense - Line of Credit – Resident
Credit 35 21 10 AIP - Line of Credit – Resident

Account 33 21 20 Line of Credit – Non Resident

Daily accrual of interest is as follows:
Debit 63 21 20 Interest Expense - Line of Credit – Non Resident
Credit 35 21 20 AIP - Line of Credit – Non Resident

Account 33 22 10 Senior Debt – Resident

Daily accrual of interest is as follows:
Debit 63 22 10 Interest Expense - Senior Debt – Resident
Credit 35 22 10 AIP - Senior Debt – Resident

Account 33 22 20 Senior Debt – Non Resident

Daily accrual of interest is as follows:
Debit 63 22 20 Interest Expense - Senior Debt – Non Resident
Credit 35 22 20 AIP - Senior Debt – Non Resident

Account 33 23 10 Subordinated Debt – Resident

Daily accrual of interest is as follows:
Debit 63 23 10 Interest Expense - Subordinated Debt – Resident
Credit 35 23 10 AIP - Subordinated Debt – Resident

Account 33 23 20 Subordinated Debt – Non Resident

Daily accrual of interest is as follows:
Debit 63 23 20 Interest Expense - Subordinated Debt – Non Resident
Credit 35 23 20 AIP - Subordinated Debt – Non Resident

[The accounts 33 24 00 Obligations under Capital/Finance Lease, 35 24 00 AIP - Obligations under Capital/Finance Lease 33 25 00, 63 24 00 Interest Expense - Obligations under Capital/Finance Lease as well as 33 25 00 Real Estate Mortgage Payable, 35 25 00 AIP - Real Estate Mortgage Payable and 63 25 00 Interest Expense - Real Estate Mortgage Payable are not used]

Account 33 26 10 Borrowed Funds - Shareholders – Resident

Daily accrual of interest is as follows:
Debit 63 26 10 Interest Expense - Borrowed Funds - Shareholders – Resident
Credit 35 26 10 AIP - Borrowed Funds - Shareholders – Resident

Account 33 26 20 Borrowed Funds - Shareholders – Non Resident

Daily accrual of interest is as follows:
Debit 63 26 20 Interest Expense - Borrowed Funds - Shareholders – Non Resident
Credit 35 26 20 AIP - Borrowed Funds - Shareholders – Non Resident

Account 33 27 10 Other Long Term Loans - Banks – Resident

Daily accrual of interest is as follows:
Debit 63 27 10 Interest Expense - Other Long Term Loans - Banks – Resident
Credit 35 27 10 AIP - Other Long Term Loans - Banks – Resident

Account 33 27 20 Other Long Term Loans - Banks – Non Resident

Daily accrual of interest is as follows:
Debit 63 27 20 Interest Expense - Other Long Term Loans - Banks – Non Resident
Credit 35 27 20 AIP - Other Long Term Loans - Banks – Non Resident

Account 33 27 30 Other Long Term Loans - OFIs – Resident

Daily accrual of interest is as follows:
Debit 63 27 30 Interest Expense - Other Long Term Loans - OFIs – Resident
Credit 35 27 30 AIP - Other Long Term Loans - OFIs – Resident

Account 33 27 40 Other Long Term Loans - OFIs – Non Resident

Daily accrual of interest is as follows:
Debit 63 27 40 Interest Expense - Other Long Term Loans - OFIs – Non Resident
Credit 35 27 40 AIP - Other Long Term Loans - OFIs – Non Resident

Account 33 28 00 Borrowed Funds from RGC

Daily accrual of interest is as follows:
Debit 63 28 00 Interest Expense - Borrowed Funds from RGC
Credit 35 28 00 AIP - Borrowed Funds from RGC

Account 33 31 10 Bankers’ Acceptances Outstanding – Bank – Resident

Daily accrual of interest is as follows:
Debit 63 31 10 Interest Expense - Bankers’ Acceptances Outstanding–Bank–Resident
Credit 35 31 10 AIP - Bankers’ Acceptances Outstanding – Bank – Resident

Account 33 31 20 Bankers’ Acceptances Outstanding – Bank – Non Resident

Daily accrual of interest is as follows:
Debit 63 31 20 Interest Expense - Bankers’ Acceptances Outstanding–Bank–Non Resident
Credit 35 31 20 AIP - Bankers’ Acceptances Outstanding – Bank – Non Resident

Account 33 32 10 Bankers’ Acceptances Outstanding – OFIs – Resident

Daily accrual of interest is as follows:
Debit 63 32 10 Interest Expense - Bankers’ Acceptances Outstanding–OFIs–Resident
Credit 35 34 10 AIP - Bankers’ Acceptances Outstanding – OFIs – Resident

Account 33 32 20 Bankers’ Acceptances Outstanding – OFIs – Non Resident

Daily accrual of interest is as follows:
Debit 63 32 20 Interest Expense - Bankers’ Acceptances Outstanding–OFIs–Non Resident
Credit 35 34 20 AIP - Bankers’ Acceptances Outstanding – OFIs – Non Resident

Account 33 33 10 Bankers’ Acceptances Outstanding – Private Sector–Resident

Daily accrual of interest is as follows:
Debit 63 33 10 Interest Expense - Bankers’ Acceptances Outstanding – Private Sector – Resident
Credit 35 32 10 AIP - Bankers’ Acceptances Outstanding – Private Sector–Resident

Account 33 33 20 Bankers’ Acceptances Outstanding–Private Sector–Non Resident

Daily accrual of interest is as follows:
Debit 63 33 20 Interest Expense - Bankers’ Acceptances Outstanding – Private Sector – Non Resident
Credit 35 32 20 AIP - Bankers’ Acceptances Outstanding – Private Sector – Non Resident

Account 33 34 00 Bankers’ Acceptances Outstanding – State Enterprises

Daily accrual of interest is as follows:
Debit 63 34 00 Interest Expense - Bankers’ Acceptances Outstanding – State Enterprises
Credit 35 33 00 AIP - Bankers’ Acceptances Outstanding – State Enterprises

General Principles

Expenses such as rental, payroll, employees’ benefits and payroll taxes should be accrued at month end if they have been incurred even though payments are not made. These accrued charges are reversed only when payments are made. Accrued expenses should not be made at month end and reversed on the first day of the following month when disbursements have not been made.

Provisions for current year taxes are normally made in the accounts before taxes are agreed and approved by the Tax Authorities. In the COA, taxes are accrued instead of provisioned. Thus, account 37 11 00 accrued income taxes should be used instead of provision for tax accounts.

Unearned income is associated with installment loans, treasury bills, bills discounted and other products where interest is not paid in arrears, rather it is paid at the time of the transaction. Unearned interest should be accreted to interest income on a daily basis over the tenor of the loan or security instrument.

Accounts payable record amounts owing to suppliers, contractors and other service providers, other than those deposits from bank customers.

Exchange positions are taken up by the bank each time there is an exchange transaction between a foreign currency and a base currency. For instance, each purchase or sale of a foreign currency against the local base currency creates an exchange position. An exchange position is a risk of the foreign currency vis –a vis a local base currency as any fluctuation in the foreign currency will impact on the profit and loss account. Where exchange positions are large and active, they should be revalued on a daily basis.

Suspense accounts record those items that cannot be identified or accounts that are out of balance caused by errors in coding, unidentified parties or system errors. They should be promptly investigated and cleared within a day or two.

Sundry liabilities record credit amounts that are payable to non – customers, where a separate account cannot be found elsewhere in the COA. Customer accounts balances should not be recorded as sundry liabilities nor should unclaimed balances or advance payment of loans. An example of a sundry liability is rental received in advance from bank tenants. Rental due from tenants who have not paid for over a month should, however, be accrued in other sundry assets as rental Income earned but not received.

Account 36 11 00 Accrued salary and wages payable

This account records salary and wages which is due and payable to employees for the month for which payment has not been made. The accrued entries are reversed when payments are made.
The accounting entries are:
Debit 64 11 10 salaries and wages expense
Credit 36 11 00 Accrued salary and wages payable

Account 36 12 00 Accrued Bonus/Incentive Compensation Payable

This account records bonus and any incentive compensation due but not paid. The accrued entries are reversed when payments are made.
The monthly accrual entries are:
Debit 64 11 40 Bonus and Incentive Compensation Expense
Credit 36 12 00 Accrued Bonus/Incentive Compensation Payable

Account 36 13 00 Accrued and withheld payroll taxes payable

This account records payroll taxes on salary due at month end but not paid. The accrued entries are reversed when payments are made.
The monthly accrual entries are:
Debit 65 79 00 Other Tax Expense
Credit 36 13 00 Accrued and withheld payroll taxes payable

Account 36 14 00 Other Payroll deductions withheld payable.

This account records, for instance, certain unions’ fees, contributions to co- operatives’ savings schemes, donations and club dues that are deducted from employees’ salaries payable to outside organizations. The amounts are reversed on payment.

Account 36 15 00 Accrued employee benefits payable

This account records other employee benefits due to employees not paid. The accrued entries are reversed when payments are made.
The monthly accrual entries are:
Debit 64 12 90 Other Employee expense
Credit 36 15 00 Accrued employee benefits payable

Account 36 16 00 Accrued Vacation Pay Payable

Where employees are paid for vacation not taken and where a policy exists that vacation pay can be redeemed in cash each year, this account records such accrued expenses. Alternatively, some employees are entitled to vacation pay each year and this should be accrued. The accrued entries are reversed when payments are made.
The monthly accrual entries are:
Debit 64 12 10 Vacation and Sick leave Expense
Credit 36 16 00 Accrued Vacation Pay Payable

Account 36 17 00 Accrued Rental Expense

Where a bank occupies rented premises, instead of owning it, and pays rental on a monthly basis, the monthly rental incurred should be accrued at the month end. This accrual should be reversed when payment is made. Where rental is made on a quarterly basis, the account 22 15 00 Prepaid rent should be used. Refer to Prepaid rent.
The monthly accrual entries are:
Debit 64 32 10 Building Rental Expense
Credit 36 17 00 Accrued rental expense

Account 36 20 00 Other Accrued Expenses

This account records all other expenses incurred but not paid. Subsidiary accounts may be created to control such expenses. The accrued entries are reversed when payments are made. Choose the appropriate expense account.

Account 37 11 00 Accrued Income Taxes Payable – Current Year

This account records the income tax payable for current year. The accrual should be made either monthly.
The accrual entries are:
Debit 65 91 00 Income tax Expense
Credit 37 11 00 Accrued Income Taxes Payable – Current Year
Please refer also to account 22 16 00 Prepaid Profit tax for further explanation.

Account 37 12 00 Accrued Taxes Payable – Other than Income Taxes

The accrual entries are:
Debit 65 79 00 Other Tax Expense
Credit 37 12 00 Accrued Taxes Payable – Other than Income Taxes

Account 37 13 00 Tax Deducted from Customers Payable to Treasury

This account records tax deducted from the customer pending payment to the Treasury. When the bank makes payment to the treasury, the balance is reversed.

Account 37 20 00 Unearned Income

Appropriate subsidiary accounts should be created with unearned income accounts to map to the appropriate interest income accounts so that on daily basis the unearned income is accreted to interest income. Unearned income is recorded for earning assets when interest or discount is taken upfront on transaction date rather than paid in arrears. This is usually encountered for checks purchased, bills discounted and treasury bills purchase.

Account 37 30 00 Deferred Income – Government and Public Grants

This account records government and public grants when there is a reasonable assurance that the bank will comply with the conditions related to them and that the grants will be received. The balance in this account should be recognized as income systematically over the useful life of the relevant asset.
Accounting entries for daily amortization are:
Debit 37 30 00 Deferred Income – Government and Public Grants
Credit 57 42 00 Income - Government and Public Grants

Account 38 10 00 Accounts Payable

This account records supplies invoices, service charges and other payments due and payable. Customers’ deposits should not be booked I this account.

Account 38 20 00 Dividend Payable

When dividends have been declared and approved by the board of directors or the shareholders, the above account records the appropriation as follows:
Debit 40 80 00 Profit - Current year
Credit 38 20 00 Dividend Payable
Please also note Prakas on the payments of dividends in advance dated January 14, 2004 which prohibit the payment of dividends on annual profits unless the financial accounts have been audited.

Account 38 30 00 Dividend Withholding Tax

This account is sometimes known as tax at source. When dividend is paid, the shareholders received the net amount (gross dividend less withholding tax) as the bank will account the tax to the tax authorities.
The accounting entries are:
Debit 38 20 00 Dividend Payable
Credit 38 30 00 Dividend Withholding Tax
Credit 11 41 00 Due from NBC or
Credit 32 11 50 Certified Checks Outstanding

Account 38 40 00 Savings and Time Deposits Interest Withholding Taxes

This account records the tax withheld by the bank for interest due on savings and time deposits payable to customers. The account will be reversed when payment to tax authorities is made.

Account 38 50 00 Interest Income in Suspense

Please refer to doubtful loans section.
This account records interest earned but not received on all performing loans. When interest is received the accrued interest receivable account is reversed against interest income in suspense and interest income – non performing loans is taken up.

Account 38 60 00 Position Account Foreign Exchange

This account records the foreign currency amount the bank considers as a foreign exchange position. The contra account is to the foreign currency asset or liability incurred. Similarly, a mirror-image of the exchange position in base currency is set up in account 29 68 00 Equivalence Foreign Exchange Position Account. A monthly or daily revaluation is made of the balance between 38 60 00 against the balance 29 68 00 and profits are taken to 57 44 10 Foreign Exchange Currency Gains or 66 21 10 Loss on Foreign Exchange Currency Transaction Expense.

Account 38 70 00 Employee Pension Fund Payable

This account records the bank’s liability on employees’ pension fund. Details of pension fund payable calculations should be available to verify correctness of such liability. The Employee Pension Fund should be approved by the board of directors and/or shareholders.
The accounting entries are:
Debit 64 12 40 Contribution to Employee Pension Fund Expense
Credit 38 70 00 Employee Pension Fund Payable

Account 38 80 00 Minority Interest in consolidated subsidiaries

Where subsidiaries are required to be consolidated to the parent company’s accounts, this account represents the portion relating to minority interests upon consolidation. Minority interest in the consolidated balance sheet consists of the minorities’ share of the fair value of the identifiable assets and liabilities of the acquiree as at acquisition date and the minorities’ share of movements in the acquiree’s equity since then. This account is used only for bank holding companies which are required by banking regulations to consolidate the subsidiary companies.

Account 38 91 00 Provision for Potential Losses on Off-Balance Sheet Accounts

Where a off-balance sheet account such as a contingent or commitment account has crystallized into a potential loss situation through the occurrence of an event such as litigation and it is prudent for management of the bank to provide for this eventuality, the account may be used as follows:
Debit 66 13 00 Off Balance Sheet Loss Expense
Credit 38 91 00 Provision for Potential Losses on Off-Balance Sheet Accounts

Account 38 92 10 Other Sundry Liabilities

Use this account to record other liabilities, other than funds or deposits belonging to customers that are small in amounts.

Account 38 92 20 Suspense Accounts

These accounts are used for balancing errors or in situations where the exact nature of the banking transaction is not known. The accounts should be cleared the next day. Obtain proper authorization for write-off to expense accounts if the amounts are unresolved after proper investigation.

General Principles

This section of the COA gives the general ledger accounts related to shareholders’ equity. It comprises accounts for preferred stock, common stock, share premiums, approved subordinated loans, uncalled capital, general-banking reserves, reserves and revaluation reserves on marketable equity securities, retained earnings and current year’s profit and loss.

The reserve account includes both capital and general reserves. For instance, any allocation from after tax profits for future increase of paid-up capital may be recorded in Capital Reserve. General Reserve may include allocations from after tax profits to be used for fixed asset replacements upon retirement.

All accounting entries that update the accounts in this section should be duly authorized by nominated senior bank officers. These accounting entries are infrequent. Accounting entries to capital accounts should be supported by minutes of directors’ meeting, shareholders’ meeting or senior management authorization as they affect shareholders’ equity.

Account 40 11 00 Preferred Stock

This account records the bank’s portion of preferred stock. Preferred stock may be issued on terms such as payment of annual fixed rate of dividends, cumulative dividends and other conditions. On winding up, preferred stockholders have a preferential claim over common stockholders.

Account 40 12 00 Common Stock

This account records the bank’s issued and fully paid portion of common stock. The Law of Banking and Financial Institutions article 64 states that the shareholders of common stock shall rank after all preferential claims have been met.

Account 40 20 00 Premiums Related to capital (Paid in Surplus)

This account is sometimes called the share premium account. When shares are subscribed for an amount higher than the nominal par value, the difference is the share premium. Movements of the share premium account should be monitored according to the commercial law (Companies Act) which has not come into operation.

Account 40 30 00 Subordinated Debt Approved by NBC

This account records debt instruments that are approved by NBC.
Daily interest accrual is as follows:
Debit 63 23 00 Interest Expense – Subordinated debt
Credit 35 23 00 AIP – Subordinated debt

Account 40 41 00 Unpaid Portion of Capital.

This account is sometimes referred to uncalled capital. When a share is issued on a partly-paid basis, that portion of the unpaid amount is termed uncalled capital. This account refers to the liability of shareholders who have been allotted shares for which they have not fully paid up.

Account 40 42 00 Treasury Stock

This account refers to the purchase by the bank of its own shares either from the stock exchange or directly from the shareholders. Unless the Commercial Law allows it, purchase by a bank of its own shares is equivalent to a reduction of its own capital base.

Account 40 51 00 General Banking Reserves (Other than Revaluation)

This account records all banking reserves required by NBC.

Account 40 52 00 Reserves

This account records reserves that are not banking reserves. Subsidiary accounts may be created to segregate between revenue reserves from capital reserves as well as between distributable and non-distributable revenue reserves.

Account 40 60 00 Revaluation Gain/(Loss) of Long Term Marketable Equity Securities

This account records the gains or losses arising from the monthly valuation of long-term marketable equity securities. Under CAS 25.23, temporary reductions and reversals of long term marketable equity securities are included in equity.
The accounting entries for monthly valuation are:
Debit 21 69 00 NUHGLI - Investment in Equity Securities - TDS
Credit 40 60 00 Revaluation Gain/ (Loss) of Long Term Marketable Equity Securities

Account 40 70 00 Retained Earnings

This account records the cumulative profits or losses of the bank since it started operations.

Account 40 80 00 Profit Current Year

This account records the profits or losses of the bank for the current financial year

General Principles

Class 5 of COA gives the income accounts for banks. Income accounts are broadly classified into interest and non-interest income.

Interest Income from earning assets of loans to banks and non-banks are separately classified into those from standard loans, sub-standard loans, doubtful and loss loans.

Interest income from money market and inter – bank is classified by sectors and residency. Interest income from securities is classified by HTM, AFS and TDS and by maturity bands.

Interest income for standard performing loans of banks and non – banks are taken up through daily interest accrual. Interest income from non-performing loans of banks and non – banks are only taken up in the bank’s profit and loss when cash is received. The daily interest accrual is taken up in Interest Income in Suspense account.

The accounting entries for income accounts for banks and non – banks have already been shown in the sections of loans to banks and loans to non –banks.

Non-interest income covers fees, commissions, services charges, rental income, foreign exchange gains, dividends, gains on securities and gains on sale of assets.

Loan arrangement fees and commissions should be recognized in income when all conditions precedent is fulfilled. This is often when payment is received or debited to the customers’ accounts. Service charges and processing fees should be recognized when received. Commitment fees and guarantee fees on facilities extended may be recognized as income on time apportionment.

Account 57 11 10 Commercial Loan Fees Earned

Record in this account fees charged on commercial loans. This includes any up- front arrangement fees. Do not include service charge or commitment fees.

Account 57 11 20 Loan Commitment Fees Earned

Record commitment fees charged on loans. This includes loans approved for which there has not been a draw-down.

Refer also to account 29 64 10 when fees are deferred.

Account 57 11 30 Real Estate Mortgage Loan Fees Earned

Record any fees earned in real estate mortgage loans.

Account 57 11 40 Installment Loan Fees Earned

Record any fees received in installment loans.

Account 57 11 50 ATM/Credit Card Annual Fees Earned

Record annual fees charged to credit card customers. This includes annual fees on any supplementary cards.

Account 57 11 60 Miscellaneous Loan Fees and Service charges

Record all other fees received on loans not classifiable in the above accounts

Account 57 12 10 Fees Income – Banker’s Acceptances

Record fees charged for banker’s acceptances

Account 57 12 20 Fees Income – Bills of Exchange

Create subsidiary accounts to record separately fees and commissions from import bills, export bills, sight or usance if required.

Interest charges or telex charges should not be recorded in this account.

Account 57 12 30 Income Letters of Credit

Record the commission charged on issuance of letters of credit.

Fees earned on negotiating export bills of exchange under letters of credit should be included in account 57 12 20

Account 57 12 40 Income – Trust Receipts

Record fees and commission trust receipts.

Account 57 12 50 Fees Income Performance Guarantees

Record fees or commission charged on issuing performance guarantees

Account 57 12 60 Income Shipping Guarantee Issuance

Record fees or commissions earned on issuing shipping guarantees

Account 57 12 70 Income Collection Fees

Create subsidiary accounts for clean collection fees, documentary collection fees, inward and outward collection fees if so required.

Record all collection fees in this account.

Account 57 12 80 Fees Income Other Trade Credit

Record all other fees from documentary credit business not separately found above.

Account 57 21 10 Service Charges on Demand Deposits

Record charges such as monthly service charge and minimum service charge on demand deposit accounts of customers.

Account 57 21 20 Service Charges from Due to Banks

Record service charges on Vostro accounts

Account 57 21 30 Fees for Certified Check and Bank Checks Issued

Record fees or commission charged to customers for cashiers’ orders and bank drafts

Account 57 21 40 Service Charges Other Demand Deposits

Record charges on minimum balances to be maintained, monthly fee charges for accounts maintenance and other service charges on demand deposits accounts

Account 57 21 50 Fees for Sale of Customers Checkbooks

Record fees or commission received for sale of customer checkbooks.

Postage charges be booked in account 57 31 80

Account 57 21 60 Fees for Overdraft, Returned Checks and Stop Payments

Interest on Overdraft should not be included in this account but in account 53 35 00.

Record fees charged to customers for overdrawn accounts where no credit lines exist and for checks returned for lack of funds and stopped payments on checks.

Account 57 22 10 Service Charges/Penalties Savings Deposits

Record services received for accounts having no movements and for sending confirmation letters

Account 57 22 20 Service Charges/Penalties Time Deposits

Record penalty charges on early withdrawal of time deposits and any service charges

Account 57 22 30 Service Charges/Penalties Certificate of Deposits

Record penalty charges on early withdrawal of certificate of deposits and any service charges

Account 57 22 40 Service Charges Money Market Accounts

Record services charges such as monthly minimum charges or other period charges

Account 57 22 50 Service Charges/Penalties Other Time Deposits

Record service charges or penalties on other time deposits

Account 57 31 10 Fees for Foreign Currency Exchange Transactions

This account is sometimes known as fees charged in lieu of foreign exchange. When a bank handles a inward foreign currency transaction for credit to a customer’s account directly and did not earn the foreign exchange conversion, the bank is likely to charge the customer a fee in lieu of exchange. When there is a conversion of foreign exchange into a local currency and the bank earns on the exchange conversion, this fee is not charged to customer.

57 31 20 Commission for Sales/Cashing of Travelers’ Checks

Record commission received on selling travelers’ checks and commission charged to customers on encashment of traveler’s checks

Account 57 31 30 Fees for Telex, Fax and Phone

Record fees recovered from customers for communication using telex, telegraph, fax, phone and SWIFT. Do not record fees recovered from customers on SWIFT in account 64 52 30.

Account 57 31 40 Fees for Credit Card Advances and Late Charges

Record fees charged to customers for cash advances. Do not include interest earned on credit card advances in this account. Include also other late and finance charges on credit cards.

Account 57 31 50 Fees for Collection of Foreign Drafts/Checks

[This is similar to account 57 12 70. Account should not be used]

Account 57 31 60 Fees for Wire Transfer

[Duplicate of account 57 31 30. Account should not be used or its name modified]

Account 57 31 70 Other Commission and fees Income

Record and create subsidiary accounts to record all other commissions and fees not classifiable in the above accounts.

Account 57 31 80 Fees from Postages and Courier Services

Record all fees recovered from customers for postages and courier services for remittance, trade, loan and other banking transactions.

Account 57 41 00 Rental Income

Record rental income received from banks’ properties. If rental is paid by tenants in advance of one month, record it as Rental Income Received in Advance and create a subsidiary account in account 38 92 10 Other Sundry Liabilities. If rental due from tenants is not paid to the bank, record it as Rental Income Earned but not received and create a subsidiary account in account 29 69 20 Other Sundry Assets.

Account 57 42 00 Income – Government and Public Grants/Assistance

This is the accretion of account 37 30 00 Deferred Income – Government and Public Grants

Account 57 43 00 Income from Foreclosed Property (Other Real Estate Owned)

Record rental income received from tenants of foreclosed properties.

Account 57 44 10 Foreign Exchange Currency Gains

Record gains on revaluation made daily, monthly or other periodic intervals. Note loss on foreign exchange is to be recorded in Account 66 21 10

Account 57 44 20 Foreign Exchange Translation Gains

Translation gains or losses on foreign exchange occur when foreign currency assets or liabilities of a foreign branch or subsidiary company that records its head office investment at historical rate has to be translated to the head office measurement currency for reporting purposes. In a bank that uses multi-currency financial statements, where all assets and liabilities match currency by currency, no translation gains or losses is recorded.

Account 57 45 00 Gains (Loss) Monthly Valuation of Investment Securities

This is the contra to Account 21 51 00 or 21 61 00. It records the gains or losses on monthly valuation of investments for TDS or AFS securities recorded at the lower of cost or market value. Revaluation gain/ (loss) on long term marketable equity securities are taken to Account 40 60 00 instead of this account.

Account 57 46 10 Security Gains on Sale/Disposal of Investment Trading Account

The gain on sale/disposal of investment/trading security is determined by the difference between the sales proceeds and the net book value (carrying value). This account records gains on trading securities.

Account 57 46 20 Security Gains on Sale/Disposal of Investment

The gain on sale/disposal of investment security is determined by the difference between the sales proceeds and the net book value (carrying value). This accounts records gains on investment securities.

Account 57 46 30 Security Gains on Sale/Disposal of Equity Securities

The gain on sale/disposal of equity securities is determined by the difference between the sales proceeds and the net book value (carrying value). This accounts records gains on equity securities.

Account 57 47 10 Recovery on Loans Previously Charged off

This account records the recovery of a loan in cash that has been written off. The loan was previously written off by offsetting the provisions against the loan principal. The write – off was initiated only after due legal process and the expenditure of all collection avenues.

Account 57 47 20 Recovery on Security Previously Charged off

This account records the recovery of a security in cash that has previously been written off by off-setting the provisions against the security amount after due legal process and the expenditure of all collection avenues.

Account 57 48 10 Gain on Sale/Disposal of Foreclosed Property (Other real Estate Owned)

The Gain on Sale/Disposal of Foreclosed Property is the difference between the sale proceeds and the net book value (carrying amount).

Account 57 48 20 Gain on Sale/Disposal of Repossessed Property

Repossessed property is not foreclosed property in that there is no foreclosure but repossession. This account records gains on the sale/disposal of repossessed property.

Account 57 48 30 Gains on Sale/Disposal of Fixed Assets

The Gain on Sale/Disposal of Fixed assets is the difference between the sale proceeds and the net book value (carrying amount).

Account 57 49 10 Extraordinary Income

This account records extraordinary gains. Extraordinary gains may arise as a result of the sale/disposal of a structural component of the bank assets. For instance, a sale of the bank’s credit card division to another financial institution may constitute an extraordinary gain. Normally, this account should only be used to record income items of such size, nature or incidence that their separate disclosure is necessary to explain the bank’s performance for the year. Other examples include litigation settlements. This account is not expected to be used frequently or at all.

Account 57 49 20 Teller Overages

This account records any excess cash in the tellers’ physical cash against the accounting records after due investigation of the day’s cash activities. The overage could have been caused by receiving more cash from customers than the credit to the customer’s account. If the difference can be traced to the specific customer, the amount should be returned or credited to the customer’s account.

Account 57 49 30 Other Miscellaneous Income

Record all other non-interest income not classifiable in the above accounts such as gains on revaluation on gold and precious metals.

Account 57 51 00 Dividend Income

These are contra accounts to account 24 29 00 Dividends Receivable – Investment in Equity Securities – AFS and 24 39 00 Dividends Receivable – Trading/Marketable Equity Securities

General Principles

Class 6 of COA gives the expense accounts for banks. Expense accounts are broadly classified into interest and non-interest expense or operating expense.

Interest expense from costing liabilities such as demand, savings, time deposits, certificate of deposits, borrowings, debt issues and all other interest – bearing liabilities should be daily accrued in accrued interest payable and taken to interest expense.

Non-interest expense consists of salaries and wages, depreciation, repairs, marketing, rental, travel, communication, insurance, repossessed loan and foreclosed property, write off and provision expense.

The accounting entries for expense accounts for banks and customers’ deposits have already been shown in the sections of banks and customers’ deposits.

This section gives the descriptions for non-interest expense and when to use them.

Account 64 11 10 Salaries and Wages

Include all salaries of employees on the payroll except part-time employees.

Account 64 11 20 Part Time Staff wages Expense

Include salaries and wages of part-time employees.

Account 64 11 30 Employee Overtime Expense

Include all overtime payments made to full-time and part-time employees

Account 64 11 40 Bonus and Incentive Compensation Expense

Include bonus and incentive payments which are not part of the monthly staff’s salary component. Bonus and Incentive payment may be fixed or variable. Refer to account 36 12 00 for accrual of Bonus/Incentive Compensation Payable.

Account 64 11 50 Other Compensation Expense

Include all other payments made to staff such as gratuity, lump sum and payments in lieu of notice.

Account 64 12 10 Vacation and Sick Leave Expense

Include paid vacation and sick leave for employees. Refer to account 36 16 00 for accrual of Vacation Pay.

Account 64 12 20 Employee Life and Health Insurance Expense

Include insurance premiums paid for life assurance and health insurance coverage.

Account 64 12 30 Employee Social Welfare Fund Expense

Include the bank’s contribution to a social welfare fund to be used for employees’ welfare. This fund could be drawn down during emergencies or disasters such as fire, floods or some other situations where relief is needed for bank employees.

Account 64 12 40 Contribution to Employee Pension Fund Expense

Include the bank’s contribution to a mandatory pension or provident fund or a voluntary pension fund managed in-house or externally to provide for the retirement needs of the bank employees.

Account 64 12 50 Employee Housing and related Expense

Where the bank provides housing for its employees, this account records rental, maintenance, utilities and other charges made for the general up-keep of the lodging and premises.

Account 64 12 60 Employee Training – Work Related Expense

Include all expenses for employees training such as courses, seminars and conferences locally and overseas. Travel and related lodging expenses in connection with training may be included here.

Account 64 12 70 Employee Recreation and Sports Expense

Include the bank’s contribution and subsidies to the employee sports club, annual employee sports meet, and any games and sporting activities agreed by bank management for employees’ participation. Contributions made to other sports club not directly benefiting the banks’ employees are to be recorded in Account 64 41 50 Public Relations Expense.

Account 64 12 80 Employee Uniform Expense

Include the costs of providing uniforms for employees

Account 64 12 90 Other Employee Expense

Create subsidiary accounts, if needed, to record medical bills of employees, cost of medicines, surgical costs, long service awards, other employee awards.

Account 64 21 00 Depreciation Expense

Account 64 22 00 Amortization Expense

This is the concordance table for Allowance for Depreciation and Amortization and Depreciation and Amortization Expense.

Debit 64 2110 Depreciation Expense - Building
Credit 29 42 10 Allowance for Accumulated Depreciation Building

Debit 64 21 20 Depreciation Expense – Furniture & Fixtures
Credit 29 4310 Allowance for Accumulated Depreciation – Furniture & Fixtures

Debit 64 21 30 Depreciation Expense – Equipment
Credit 29 43 20 Allowance for Accumulated Depreciation - Equipment

Debit 64 21 40 Depreciation Expense – IT & Related Equipment
Credit 29 43 30 Allowance for Accumulated Depreciation – Computer Equipment

Debit 64 21 50 Depreciation Expense – Motor Vehicles
Credit 29 43 40 Allowance for Accumulated Depreciation - Motor Vehicles

Debit 64 21 60 Depreciation Expense Other Fixed Assets
Credit 29 43 60 Allowance for Accumulated Depreciation - Other Fixed Assets

Debit 64 21 70 Depreciation Expense - Land Improvement
Credit 29 41 00 Allowance for Accumulated Depreciation - Land Improvement

Debit 64 22 10 Amortization - Leasehold Improvement – Expense
Credit 29 42 20 Allowance for Accumulated Depreciation - Leasehold Improvement

Debit 64 22 20 Amortization - Capital/Finance Lease – Expense
Credit 29 43 50 Allowance for Accumulated Depreciation - Lease Financing Assets

Debit 64 22 30 Amortization Expenses – Computer Software
Credit 29 54 00 Allowance for Amortization - Intangible assets

Debit 64 22 40 Amortization Expenses – Goodwill
Credit 29 54 00 Allowance for Amortization - Intangible assets

Debit 64 22 50 Amortization Expenses - Other Intangible Assets
Credit 29 54 00 Allowance for Amortization - Intangible assets

Account 64 31 10 Repairs and Maintenance – Building Expense

Repairs and maintenance works should be differentiated from improvements made to building. Expenses that up-keep the building in good working condition are included in repairs and maintenance. Any additional structures which enhance the value of the building are not repairs and may be considered as building improvements. Repairs include routine painting works and cleaning and such normal maintenance to keep the building in good working condition. Include expenses for refuse and garbage removal

Account 64 31 20 Repairs and Maintenance Expense – Furniture, Fixtures and Equipment

Same as above but for Furniture, Fixtures and Equipment

Account 64 32 10 Building Rental Expense

Include rental paid for bank premises.

Account 64 32 20 Building Rental Income

[This account duplicates account 57 41 00 and should not be used]

Account 64 32 30 Rental Expense – Furniture, Fixtures and Equipment

Include rental paid for Furniture, Fixtures and Equipment. Rental of motor vehicles for special occasions or for guests’ use is to be recorded in account 65 82 00 Motor Vehicle Operating Expense.

Account 64 33 00 Utilities – Heat, Light, Power and Water Expenses

Include all utility bills paid to the service provider. Drinking water for employees is to be included in account 64 12 90. Include gasoline cost for the bank’s generators

Account 64 34 10 Building Supplies Expense

[Not in use]

Account 64 34 20 Building Security Expense

Include costs of security guards and security monitoring devices for securing the bank’s premises. Police escorts for money in transit are to be included in account 65 10 00 Bank Security Expense

Account 64 34 30 Other Building Expense

Include other building expense not specifically classified above. Sub-accounts may be created for management purposes.

Account 64 34 40 Non Capitalized Purchases Expense – Building

Include purchase items below a certain amount. The amount should be part of the accounting policy approved by management.

Account 64 34 50 Other Furniture, Fixtures and Equipment Expense

[To use account 64 34 60 instead]

Account 64 34 60 Non Capitalized Purchases Expenses – Furniture, Fixtures and Equipment

Same as account 64 34 40 except that it refers to Furniture, Fixtures and Equipment

Account 64 41 10 Television and Radio Advertising Expense

Include advertisement of bank’s products on television and radio

Account 64 41 20 Newspaper Advertising Expense

Include advertisement of bank’s products in the newspapers

Account 64 41 30 Advertising Production Cost Expense

Where a bank undertakes to produce its own advertisement for its products or services, production costs may be deferred and amortized monthly into this account. Costs should only be deferred if the benefits of the advertisement are expected to accrue to the bank for more than one accounting period and significant. Where costs are not significant, they may be expensed immediately to .this account in accordance with the accounting policy set by bank management.

Account 64 41 40 Advertisement Agency Fee expense

Include fees paid to advertising agencies for preparation, arranging and production of bank’s advertising campaign

Account 64 41 50 Public Relations Expense

Include any small gifts such as wedding presents given to customers, contributions to customers’ annual sports and social events, wreaths and other articles to highlight the bank’s presence.

Account 64 41 60 Promotional Items Expense

Include annual calendars, diaries, umbrellas, T-shirts and other promotional items to be given away to customers or guests to promote the bank’s presence

Account 64 41 70 Other Marketing and Advertising Expense

Include all other marketing and advertising expense not classifiable elsewhere.

Account 64 42 10 Audit and Tax Fees Expense

Segregate between audit fees from tax fees using subsidiary accounts. Audit fees are fees charged for annual audits and special audits from authorized external auditors. Tax fees include costs of preparation of tax returns, filing and correspondence with the Tax Authorities billed by tax accountants.

Account 64 42 20 NBC Examination Fees Expense

Include fees incurred during NBC inspections, reviews and examinations. Currently no fees are billed to banks for inspections and other examinations.

Account 64 42 30 Legal Fees Expense

Include legal costs incurred by the bank for debt collection, and general legal advice. Costs of registration of business, caveats, rights should be included in account 65 42 00.

Account 64 42 40 Other Professional Fees Expense

Include fees paid to designers, architects, interior decorators and other consultants for planning and design works for new office space or other amenities. Fees paid to consultants for training employees on banking business should be included in account 64 12 60 employee training.

Account 64 51 10 Travel Expenses

Include costs of tickets by air, sea or land for business travel on bank business. Incidental expenses such as visa fees, entry, exit fees may be included as well as meals. Food expenses during travel which are for entertainment should be included under account 64 51 30 Business Meal and Entertainment Expense. Accommodation in hotels and guest houses should be included in account 64 51 20 Accommodation Expense.

Account 64 51 20 Accommodation Expense

Refer to account 64 51 10 above

Account 64 51 30 Business Meal and Entertainment Expense

Refer to account 64 51 10 above. Include also entertainment expense for customers or prospects aimed at business promotion and other business developments.

Account 64 51 40 Conventions and Conference Expense

Include costs for conventions and conferences. If travel forms part and parcel of the cost of attending the conference or convention, they may be included in this account.

Account 64 51 50 Other Representation Expense

Include all other representation expense not classifiable elsewhere.

Account 64 52 10 Telephone Expense

Include costs of fixed and mobile telephones lines. Fixed telephone lines subscribed for internet access is included.

Account 64 52 20 Telex and Fax Expense

Include costs of telex installation, rental and telephone lines for facsimiles. The rental of fax machines should be included in account 64 32 30 Rental – Equipment.

Account 64 52 30 SWIFT Expense

Include the quarterly license fees, subscription and maintenance for using the SWIFT network. Training on SWIFT operations for bank staff are to be included under account 64 12 60 Employee Training.

Account 64 52 40 Postage Expense

Include postage and stamps as well as metered stamps on postage franking machines. Costs of repairs and maintenance of franking machine should be included in account 64 31 20 Repairs and Maintenance - Equipment.

Account 64 52 50 Overnight Delivery Shipment Expense

Include costs of freight and delivery on courier such as payments to DHL Courier Express, Freight Express and similar companies

Account 64 52 60 Other Communication Expense

Include wireless internet costs such as subscription to service providers. Costs of hardware of internet equipment should be capitalized under account 29 33 00 computer equipment.

Account 64 52 70 Wire Transfer Expense

[Use account 64 52 20 instead]

Account 64 61 00 Court fees Expense

Include fees paid to the court for admission of legal documentation such as affidavits. Do not include stamps or registration fees which should be included in account 65 42 00 Stamps and Registration Expense.

Account 64 62 00 Collection and Repossession Expense

Include costs paid to debt collectors and incidental costs associated with debt collection and repossession. Legal costs of debt collection are to be included in account 64 42 30 Legal Fees Expense.

Account 64 63 00 Credit Investigation Fee Expense

Include costs paid to Credit Bureau or Agencies for information on customer’s credit standing.

Account 64 64 00 Appraiser Fee Expense

Include the professional fees charged by Real Estate Company or agency for land or property appraisal on collateral for credit purposes except for foreclosed properties. Appraisal fees for foreclosed properties are to be included in account 64 65 00 Foreclosed property (OREO) Expense.

Account 64 65 00 Foreclosed Property (OREO) Expense

Include all costs including repairs, maintenance, cleaning, upkeep, guards and utilities except legal fees connected with foreclosed properties

Account 64 66 00 Loss on Sale of Other Real Estate Owned (OREO) Expense.

Refer to account 57 48 10 Gain on Sale/(Disposal) of Foreclosed Property

Account 64 67 00 Loss on Sale of Repossessed Property Expense

Refer to account 57 48 20 Gain on Sale/ (Disposal) of Repossessed Property

Account 64 71 00 Stationary and Supplies Expense

Include all banks stationary such as writing pads but not pre-printed forms as well as all pencils, pens, erasers, perforators, rubber bands

Account 64 72 00 Printing and Forms

Include all pre-printed forms and envelops bearing the bank’s name and address. If the amount of the stock is significant, the bank may consider putting the items as inventory under account 29 69 20 Other Sundry Assets and amortize the amount over the usage period.

Account 64 73 00 Computer Supplies Expense

Include all diskettes, tapes, cables, hubs, computer forms, printer ribbons, cartridges and other supplies for desktops, notebooks, servers, terminal and mid- size machines. Do not include hardware components such as backup computer equipment or server machines which should be capitalized in account 29 33 00 Computer Equipment

Account 64 74 00 Other Supplies Expenses

Include all other supplies not classifiable above

Account 64 81 00 Blanket Bond Premium Expense

Include the premium paid on blanket insurance taken out by the bank. The blanket insurance may cover all insurable risks of the bank including fire, thefts, robbery, staff infidelity, cash and other risks. In normal cases, the premium is on an annual basis. The bank should record such prepaid insurance expense in account 22 11 00 Prepaid Insurance and amortize the amounts over the period of the insurance.

Account 64 82 00 Fire and Hazard Insurance

Include premiums for fire and hazard insurance

Account 64 83 00 Deposit Insurance Expense

Include the premium paid on Deposit Insurance Scheme when it is available. This is the amortized expense for account 22 12 00 Prepaid Deposit Insurance

Account 64 90 00 Other Non-Interest Expense

Include all other non-interest expense not classifiable elsewhere

Account 65 10 00 Bank Security Expense

Excludes building security which should be included in account 64 334 20 Building Security. Include costs relating to security such as security expense for money in transit, armed guards for conveying cash to NBC.

Account 65 21 00 Board of Directors’ Fees

Include amounts paid to all directors as remuneration

Account 65 22 00 Shareholders’ Meeting Fees

Include costs such as refreshments during the annual shareholders’ meeting

Account 65 31 00 Parent Head Office Expense

This account is sometimes known as Head Office Management Charge. It refers to the charge that the Head Office debits the branch for support and other administrative matters such as credit investigation, IT support and recoveries of salaries and overheads of temporary staff sent to branch.

Account 65 32 00 Charitable Donation Expense

Include all donations made to charities such as those of the Cambodian Red Cross and similar organizations

Account 65 41 00 Dues and Memberships Expense

Include dues and subscriptions for club memberships to golfing organizations, business associations and banking organizations for the bank and senior executive staff. Annual fees or subscriptions made at the beginning of the year may be recorded in account 22 26 00 Other Prepaid Expense and Deferred Charges and amortized monthly or expensed immediately in accordance with the bank’s accounting policy, where amounts are not significant.

Account 65 42 00 Stamp and Registration

Include stamp and registration fees paid for registration on legal affidavit, writs, tenancy agreements and other documents that require stamping and registration include title deeds

Account 65 43 00 Clearing house Expense

Include fees paid to the clearing house for use of clearing facilities for checks

Account 65 51 00 Publications and Subscription Expense

Include subscriptions to magazines, books, credit reviews and publication of the bank’s annual report

Account 65 53 00 ATM/Credit Card Expense

Include operating costs of cards, embossing and supplies to the ATM/Card business. Costs of ATM machines are to be capitalized under account 29 32 00 Equipment

Account 65 53 00 Internet E Commerce Expense

Include operating costs associated with E Commerce. Hardware and staff costs are classified elsewhere.

Account 65 61 00 Penalties and Fines

Include penalties and fines paid for non-performance or infringement of warranties, tax authorities and supervisory authorities other than to NBC. Include traffic fines and tax fines.

Account 65 62 00 Penalties and Fines Paid to NBC

Include penalties and fines paid to NBC for non-compliance of Prakas and/or banking regulations

Account 65 71 00 Trade Registration Expense

Include the registration fees paid for operating the banking business

Account 65 72 00 Custom Duties Expense

Include payments for custom duties

Account 65 73 00 License Fees Expense

Include the amortized cost of banking license. Banking License is normally prepaid for more than an accounting period and this should be recorded in account 22 18 00 Prepaid License Fees

Account 65 74 00 Tax on Unused Land Expense

Include tax paid on unused land

Account 65 75 00 Non Recoverable VAT Expense

The principle of VAT is that the input tax which is included in a purchase may be recovered from the output tax in a sale. Where the input tax is more than the output tax, the amount is generally recoverable from the VAT office. In certain situations such as dispute in VAT rates, the amount is not recoverable. Include the amount in this account

Account 65 79 00 Other Tax Expense

Include tax on payroll in this account

Account 65 81 00 Tax on Transportation Vehicles Expense

This account is sometimes known as the road tax. It is the tax paid to the government for running a motor vehicle on the public roads. Where the tax is paid annually, the amount should be included in account 22 26 00 Other Prepaid Expense and amortized

Account 65 82 00 Motor Vehicle Operating Expense

Include gasoline, oils, servicing costs, cleaning and some supply items such as battery water. Traffic fines should be included in account 65 62 00 Fines Expense. Diesel for bank generators should be included in account 64 33 00 Utilities

Account 65 83 00 Freight and Delivery Expense

Include freight charges paid for overseas or domestic shipment.

Account 65 91 00 Income Tax Expense

This is the contra to account 29 64 20 Deferred Income Tax Assets and account 37 11 00 Accrued Income Tax Payable.

Account 65 92 00 Tellers Shortages Expense

Refer to account 57 49 20 for tellers’ overages

Account 65 93 00 Extraordinary Expense

Refer to account 57 49 10 for extraordinary income

Account 65 94 00 Other Miscellaneous Expense

Refer to account 57 49 30 for Other Miscellaneous Income. Include revaluation loss of gold and precious metals

Account 66 11 00 Doubtful and Bad Debt on Principal

This account records the contra entry for account 17 00 00 Allowance for loans and Lease Losses. This account should only be used to record specific provision on the principal balance of a non – performing loan in accordance with Prakas B 700-51 and Prakas B 702.145. The contra for general provision should be recorded in account 66 16 00 Global and General Provision. It is not to be included in account 66 11 00 Doubtful and Bad Debt on Principal.

Account 66 12 00 Doubtful and Bad Debt on Accrued Interest

This account records the provision of interest income which has been earned but not received when a performing loan becomes a non-performing loan. When a loan is performing, daily accrued interest receivable is taken to interest income. When a standard loan becomes sub-standard, there is a portion of interest income that has been earned but not collected.
This is the amount for which a provision is made as follows:
Debit 66 12 00 Doubtful and Bad Debt on Accrued Interest
Credit 38 50 00 Interest Income in Suspense

Account 66 13 00 Off Balance Sheet Loss Expense

This is the contra account to account 38 91 00

Account 66 14 00 Doubtful and Loss of Securities on Principal

When a security has to be written off owing to non - recoverability, and the provision is insufficient to offset the carrying value, the difference is included here

Account 66 15 00 Written Off on Uncollectible Loans not covered by provisions

When a loan is written off owing to non - recoverability and the specific and general provision is insufficient or there is no provision at all for offset, the difference is included here.

Account 66 16 00 Global and General Provision

Include general provision for bad and doubtful loans based on a percentage of net loans outstanding or general provision for potential losses on foreclosed property when the book value is in excess of realizable value. Banks may create sub –accounts to segregate the different types of general provisions in the accounts.

Journal entries for general provision on foreclosed properties:
Debit 66 16 00 Global and General Provision Credit 38 93 00 Provision for potential losses on foreclosed property

Journal entries for general provision for bad and doubtful loans:
Debit 66 16 00 Global and General Provision Credit 38 94 00 General Provision for Bad and Doubtful Debts

Account 66 21 00 Loss on Foreign Exchange Currency Transaction Expense

Refer to account 57 44 10 Foreign Exchange Currency gains

Account 66 21 20 Loss on Foreign Exchange Translation Expense

Refer to account 57 44 20 Foreign Exchange Translation Gains

Account 66 22 00 Loss on Counterfeit Money and Bad Checks Expense

This account records loss incurred due to accepting counterfeit money for which recourse to the counter-party is not available or to payment of a forged check or other discrepancies for which the bank is not able to obtain indemnity or refund.

Account 66 23 00 Loss on Sale/(Disposal) of Security Investment Trading Account Expense

Refer to account 57 46 10 Security Gains on Sale/(Disposal) of Security Investment Trading Account

Account 66 24 00 Loss on Sale/(Disposal)of Security Investment Expense

Refer to account 57 46 20 Security Gains on Sale/(Disposal)of Security Investment

Account 66 25 00 Loss on Sale/(Disposal) of Equity Security Expense

Refer to account 57 46 30 Security Gains on sale/(Disposal) of Equity Security

Account 66 26 00 Loss on Sale/(Disposal) of Assets Expense

[This account should be termed as Loss on Sale/(Disposal) of Fixed Assets Expense]

Refer to account 57 48 30 Gain on Sale/(Disposal) of Fixed Assets

Account 67 00 00 Fees and Commissions paid to Banks and OFIs

This accounts records all banking charges paid to banks and OFIs

General Principles

This section records contingent accounts, contra account, commitments and memorandum accounts. Contingent accounts such as letters of credit records the bank’s liability as the issuing bank for the letter of credit. The bank in turn looks to the customer for indemnity when establishing the letter of credit. This is recorded as Customer Liability on letter of credit. Hence, there is always a debit and a corresponding credit by the same name in an off - balance account. By convention, the accounts 90 00 00 are in debit and those in accounts 99 10 00 contra accounts will be in credit for the originating entries. The entries are reversed on the maturity dates of the commitments or on utilization, whichever is the earlier.

The COA classifies off – balance sheet accounts into various categories such as:

• Financing commitments
• Guarantees
• Acceptances
• Bid Bonds, Performance Bonds, Warranty Bonds
• Endorsements
• Foreign Exchange
• Derivatives
• Assets held as Custodian

Loan commitments given or received from banks and financial institutions are credit lines given on standby basis for a given amount and for a fixed maturity.

Unused Portion of Overdrafts Loans in Favor of Customers represents the difference between the approved overdraft limit and the amount outstanding. The unused portion of the overdraft line should be taken up in the accounting records as soon as the overdraft line is approved.

Assets held as custodian comprise collection items such as inward and outward bills for collection, checks for collection, travelers’ checks held for sale, securities held for safe custody from customers.

Letters of Credit, Shipping Guarantees, Guarantees, Bid bonds and Warranty bonds have maturity dates. They should be reversed on maturity or on utilization.

Acceptances and Acceptances Outstanding contra accounts record the acceptance by a customer on the presentation of a usance bill. The accounts are reversed on maturity on the usance period for payment by the customer, if no further trust receipt loan is granted.

The foreign exchange position accounts and spot and forward purchase and sold accounts record exchange contracts executed in the spot and forward markets. Exchange positions are taken up on the date of transactions. Since exchange position accounts are in the on – balance accounts, the spot and forward purchase and sale contracts should be re - classified as on – balance accounts for book – keeping purposes, as it is not usual to debit a balance sheet account and credit a off – balance sheet account.

Commission paid for loan commitments is recorded in account 67 00 00 Fees and Commissions paid to Banks and OFIs.

Commission received on letter of credit, shipping guarantees and others is recorded in account 57 10 00.

Account 91 20 00 Loan Commitments in favor of Banks

Any credit lines including standby facilities given to banks are to be recorded here. Contra account is 99 12 00 Fees Earned is recorded in account 57 11 20 Loan Commitment Fees Earned

Account 91 30 00 Loan Commitments Received From Other Financial Institutions

Any credit lines including standby facilities received from financial institutions are to be recorded here. Contra account is 99 13 00 Commission paid is recorded in account 67 00 00 Fees and commissions paid to Banks and OFIs

Account 91 40 00 Loan Commitments in favor of Other Financial Institutions

Any credit lines including standby facilities given to financial institutions are to be recorded here. Contra account is 99 14 00 Fees Earned is recorded in account 57 11 20 Loan Commitment Fees Earned

Account 91 50 00 Loan Commitments in favor of Customers

Any loan in favor of customer which has been approved but not disbursed is to be recorded here. Contra account is 99 15 00 Fees Earned is recorded in account 57 11 20 Loan Commitment Fees Earned

Account 91 60 00 Unused Portion of Overdraft Loans in favor of Customers

This account records the difference between the approved overdraft limit and the debit balance of the overdraft account. Where the balance of the overdraft account is in credit, the unused portion is the overdraft limit. Contra account is 99 16 00

Account 91 71 00 Unused Portion of Overdraft Loans in favor of Banks

This account records the difference between the approved overdraft limit and the debit balance of the overdraft account. Where the balance of the overdraft account is in credit, the unused portion is the overdraft limit. Contra account is 99 17 10

Account 91 72 00 Unused Portion of Overdraft Loans in favor of OFIs

This account records the difference between the approved overdraft limit and the debit balance of the overdraft account. Where the balance of the overdraft account is in credit, the unused portion is the overdraft limit. Contra account is 99 17 20

Account 91 73 00 Unused Portion of Overdraft Loans in favor of Licensed MFIs

This account records the difference between the approved overdraft limit and the debit balance of the overdraft account. Where the balance of the overdraft account is in credit, the unused portion is the overdraft limit. Contra account is 99 17 30

Account 91 80 00 Loan Commitments in favor of Licensed MFIs - Resident

Any loan in favor of customer which has been approved but not disbursed is to be recorded here. Contra account is 99 17 30 Fees Earned is recorded in account 57 11 20 Loan Commitment Fees Earned

Account 91 90 00 Loan Commitments Received from Donors

Any loan commitment which has been approved from donors such as IMF, World Bank, ADB, AUS aid etc but funds have not been received. Contra account is 99 19 00

Account 92 11 00 Guarantees Received From Banks

Include guarantees or standby guarantees received from banks. Contra account is 99 21 10 Commission paid is recorded in account 67 00 00 Fees and commissions paid to Banks and OFIs

Account 92 12 00 Guarantees Received From Other Financial Institutions

Include guarantees or standby guarantees received from financial institutions. Contra account is 99 21 20 Commission paid is recorded in account 67 00 00 Fees and commissions paid to Banks and OFIs

Account 92 21 00 Guarantees Issued on Account of Banks

Include guarantees or standby guarantees issued to banks. Contra account is 99 22 10 Fees and commissions earned are recorded in account 57 31 70 Other Commission and Fees

Account 92 22 00 Guarantees Issued on account of Other Financial Institutions

Include guarantees or standby guarantees issued to financial institutions. Contra account is 99 22 20 Fees and commissions earned are recorded in account 57 31 70 Other Commission and Fees

Account 92 30 00 Acceptances

This account records the acceptance of a usance bill under document against acceptance basis. On maturity of the tenor of the bill, the account is reversed and payment is made to the negotiating bank. Contra account is 99 23 00 Account 92 40 00 Documentary Letters of Credit

This accounts records the customer liability on opening of an import letter of credit. When documentary bills are presented to the opening bank in accordance with the terms of the L/C, the amounts are reversed and in the case of a sight L/C payment is made to the negotiating bank. The customer’s account can either be debited or a Trust Receipt facility given. In the case of a usance bill under L/C, the amounts are reversed from L/C and the account 92 30 00 Acceptances used. Contra account is 99 24 20 Commission earned is recorded in account 57 12 30 Income – Letters of Credit

Account 92 50 00 Bid Bonds

When a bank is instructed by the customer to issue a bid bond in favor of a tender contract, the account bid bonds is used. Contra account is 99 25 00 Commission earned is recorded in account 57 31 70 Other Commissions and Fees Income

Account 92 60 00 Performance Bonds

Performance bonds require that the customer perform an act or fulfill a condition of a contract. The customer will request the bank to issue the performance bond. Contra account is 99 26 00 Commission earned is recorded in account 57 12 50 Fees Income Performance Guarantees

Account 92 70 00 Warranty Bonds

Warranty bonds require the customer to commit to carry out an act conditional upon the taking place of an event. The customer requests the bank to issue a warranty bond in favor of another entity. Contra account is 99 27 00. Commission earned is recorded in account 57 31 70 Other Commissions and Fees Income

Account 92 80 00 Payment Guarantees

Payment guarantees are issued at the request of a bank customer in favor of another entity to guarantee the payment for a contract or services rendered. Contra account is 99 28 00. Commission earned is recorded in account 57 31 70 Other Commissions and Fees Income

Account 92 91 00 Endorsements

Endorsements are usually made on bills of exchange. Where a bank endorses on a bill of exchange, the bank becomes a party to the bill of exchange as an endorsement party. Any holder in due course of the bill of exchange will have recourse to the bank who endorses its name on the bill. Contra account is 99 29 10. Commission earned is recorded in account 57 31 70 Other Commissions and Fees Income

Account 92 92 00 Other Guarantees

Include all other guarantees not mentioned elsewhere. Contra account is 99 29 20. Commission earned is recorded in account 57 31 70 Other Commissions and Fees Income

Account 93 11 00 Spot Market Foreign Exchange Purchase Contracts

[See also the section on new accounts to be created for this account]
This is the purchase of foreign exchange for value within 2 days. Spot is normally defined as settlement in 2 days time.
The accounting entries are:
Debit 29 70 00 Spot Market Foreign Exchange Purchase Contracts
Credit 38 60 00 Position Account Foreign Exchange

Account 93 12 00 Forward Foreign Exchange Purchase Contracts

[See also the section on new accounts to be created for this account]
This is the purchase of foreign currency for value at other than 2 days settlement.
The accounting entries are:
Debit 29 80 00 Forward Foreign Exchange Purchase Contracts
Credit 38 61 00 Position Account Foreign Exchange

[A subsidiary account should be created to differentiate the forward position from the spot position as the revaluation rates for spot and forward are different]

Account 93 20 00 Foreign Exchange Position Account

[This account should not be used since a foreign exchange position account exists as account 38 60 00. In addition, a foreign exchange position account is classed as a balance sheet item]

Account 94 10 00 Interest Rate Contracts/Futures

Include the nominal contract amount for interest rate futures contracts. Contra account is 99 41 00

Account 94 20 00 Interest Rate Swaps and Interest Rate Agreements

Include the nominal contract amount for interest rate swaps and interest rate agreements. Contra account is 99 42 00

Account 94 30 00 Foreign Exchange Futures

Include the nominal contract amount for foreign exchange futures. Contra account is 99 43 00

Account 95 10 00 Commitment to Sell Precious Metals

Include the amount committed to sell precious metals. Contra account is 99 51 00

Account 95 20 00 Commitment to Purchase Precious Metals

Include the amount committed to purchase precious metals. Contra account is 99 52 00

Account 95 30 00 Non Performing Commitments

Include commitments or contingents such as litigation proceedings. Contra account is 99 53 00.
Provision against possible losses is made against such non performing commitments as follows
Debit 66 13 00 Off - Balance Sheet Loss Expense
Credit 38 91 00 Provision for Potential Losses on Off balance Sheet Accounts

Account 95 41 00 Assets Held as Custodian – Bills of Exchange

Include all Inward, Outward, Import and Export bills for collection. Contra account is 99 54 10. Commission earned is recorded in account 57 12 70 Income Collection Fees

Account 95 42 00 Assets Held as Custodian – Securities

Include all stock and shares and other securities held for safe custody. Contra account is 99 54 20. Fees and commissions earned are recorded in account 57 31 70 Other Commissions and Fees Income

Account 95 43 00 Assets Held as Custodian – Other

Include Traveler’s Checks held as custodian for issuing bank for sale. Contra account is 99 54 30. Commission earned on sale of travelers’ checks is recorded in account 57 31 20 Commission for sale/cashing of Traveler’s Checks

Daily Report

Weekly Report

Bi-Weekly Report

Monthly Report

Quarterly Report

Annual Report

មីក្រូហិរញ្ញវត្ថុ

Note: Asterisks (*) represent masks for the detailed accounts. They are useful for account enquiry on computer systems that allow the use of masks. The masks represent digits in text format that belong to the same class of accounts.

• 11**** | Cash in hand, Due from NBC, Reserve requirements with NBC, Capital Guarantee Deposit with NBC, Cheques in transit, Current, Demand and Savings accounts with banks.
  
  Current, Demand and Savings deposits with banks are specifically coded by bank ratings to facilitate computation of the solvency ratio.


• 12**** | Time Deposits and Placements with Banks and Claims on Sovereigns
  
  Similar to the above requirements, Time Deposits and Placements with Banks and Claims on Sovereigns are coded with ratings to facilitate IT processing.


• 13**** | Standard Loans
  
  Standard loans are segregated between those of maturity less than one year and those more than 1 year. In addition, they are separated by groups, individuals, enterprises and others and related parties. To facilitate reporting to NBC, related party loans are divided into those to shareholders, managers, employees and external auditors. The definition of standard loans follows the Prakas.


• 14**** | Substandard Loans


• 15**** | Doubtful Loans


• 16**** | Loss Loans


• 17**** | Reserve for Loan Losses
  
  There is segregation between the reserve for specific loan loss and general loan loss reserve. A specific loan loss reserve is made for a specific customer in accordance with Prakas. A general loan loss is usually made over and above the specific loan loss reserve and no specific customer is targeted. It is usually computed as a certain percentage of the gross loans as additional reserve.


• 21**** | Investment Securities
  
  This is classified in accordance with International Financial Accounting Standards that distinguishes between held-to-maturity securities, available-for-sale (AFS) securities and marketable securities. The accumulated premium (discount) is the difference between the market price and par value when the security is bought on the secondary market. Net unrealized holding gain is the account used to record the revaluation of AFS security to its market price.


• 22**** | Prepayments
  
  This comprises prepaid insurance, rental, professional fees, profits tax, and advance payments to suppliers, purchased interest receivable and inventory of stationery supplies. Purchased interest receivable refers to the accrued interest from the last date of interest payment of a security (bond) to the date when it is acquired. This amount must be reversed against the cash interest received on the next interest payment date so that a portion of the interest is taken to interest income.


• 23**** | Accrued interest receivable (AIR) - NBC, Banks, Sovereigns
  
  This represents the daily accrual of interest earned (but not received) on capital guarantee deposits with NBC, other term deposits with NBC, banks and sovereigns in accordance with the earning assets


• 24**** | Accrued interest receivable (AIR) - Investment Securities
  
  The accounts record the daily accrual of interest earned on investment securities.


• 25**** | Accrued interest receivable (AIR) - Standard Loans


• 26**** | Accrued interest receivable (AIR) - Substandard Loans


• 27**** | Accrued interest receivable (AIR) - Doubtful Loans


• 28**** | Accrued interest receivable (AIR) - Loss Loans
  
  Accounts receivable are amounts due from non-loan borrowers. They are small amounts due from suppliers because of over-payments or refunds. Dividends receivable refers to dividends which have been declared and payable by the investee corporation to the MFI on account of its equity participation. Tax receivable represents refunds or over-payments to tax authorities after the tax computation is agreed and due to the MFI.


• 29**** | Fixed Assets, Intangible Assets, Depreciation and Amortization and other assets
  
  Fixed assets are segregated into various asset classes such as land, buildings, equipment, furniture and fixtures, computer equipment and motor vehicles. Each MFI should have its asset capitalization policy, so that very small items may be written off. The cost of each category of fixed asset less the residual value, except for freehold land, should be depreciated over the expected useful life. Intangible assets refer to computer software which is not part and parcel of the operating system of the computer hardware as well as trademarks, patents and goodwill. Formation or pre-opening expenses have been segregated since this balance has to be deducted in the calculation of net worth. Inter-branch accounts refer to the current account that one branch office maintains with another office. It is usually use for the transfer of cash or other assets between one office and another. For the MFI as a whole, these accounts should always cancel out to zero, since a debit in one office means to credit in the other office. Equivalence in Foreign Exchange Position refers to the base currency equivalence and is the counter-part of the Foreign Exchange Position account. For instance, when cash in USD is exchanged into KHR currency (assuming KHR is the base currency), the exchange position and equivalence is taken up in the following manner:
  
  Debit: Cash in KHR
  Credit: Equivalence in Foreign Exchange Position
  Debit: Exchange Position Account in USD
  Credit: Cash in USD
  
  The open position in foreign exchange position is the balance of the foreign exchange position account.
  
  Suspense accounts are used only to record items of a temporary nature such as in-balance caused machine balancing or encoding errors. All items in suspense should be cleared and posted to the correct accounts within one or two days. Sundry assets are miscellaneous assets that are not classifiable elsewhere in the chart of accounts.

• 32**** | Amounts owed to NBC, Voluntary and Compulsory Deposits.
  
  Voluntary deposits are segregated into demand, savings and term and others.


• 33**** | Short term loans payable, senior debt, subordinated debt and borrowed funds
  
  This category includes short term loans and long term borrowings. Borrowed Funds, subordinated and senior debts are usually of a long - term nature. Senior debt ranks for payment above those of subordinated debt in the event of liquidation. Borrowed funds vary according to the terms of borrowing in relation to interest rates, maturity, duration and other conditions. Borrowed funds are classified into those from shareholders, corporations (non-financial institutions), banks and financial institutions. As this is a multi-currency chart of accounts, borrowings in foreign currencies may be booked in foreign currencies, instead of converting them to base currency as was done previously in a dual-currency chart of charts.


• 34**** | Accrued Interest Payable (AIP).
  
  Accrued Interest Payable accounts are segregated into the types of costing liabilities. When interest is accrued, this account is credited and the interest expense is debited. The balance of this account is reversed when actual payment to creditors (borrowers) is made.


• 36**** | Accrued Expenses
  
  Expenses which are due but not paid to employees such as for bonuses, incentive payments, compensations and other benefits and tax due to tax authorities not paid are accrued so that the expenses incurred during the financial period are properly recorded. Loan loss provisions should not be recorded into this account. The accrued taxes payable account is used at year end when the comparison between the monthly payments of profit taxes is made against the actual tax computation for the year. When there is additional tax to be paid, following this computation, taxes are accrued into accrued taxes payable.


• 37**** | Unearned and Deferred Income
  
  Unearned Income refers to income which is received before it is actually earned. For instance, when a loan is booked at $100 but only $90 is disbursed and the difference of $10, representing interest of the loan is deducted at the time of disbursement. Unearned income is amortized to interest income over the tenor of the loan. Deferred Income, on the other hand, is a liability account to book grants received from the government or donors, where the benefits of such grants exceed more than the current financial year. Deferred Income should be amortized by debiting this account and crediting grants account over the tenor of the grant. When grants are received that are meant for the current period, they may be taken directly to grants income.


• 38**** | Accounts Payable and Other Payable
  
  Accounts Payable is to be used in a similar manner as Accounts Receivable on the Asset side of the chart of accounts. These are small payments to suppliers consisting of refunds, rebates or commissions.
  Dividends Payable refers to dividends which have been approved to be paid to the shareholders of the MFIs pending payment. Dividend Withholding Taxes are taxes deducted at source, that is to say, the difference between the gross dividend declared and approved and the net amount of dividend paid to shareholders.
  Interest in Suspense refers to interest that is not recorded as interest income because of the status of the loan as substandard, doubtful or loss. In accordance with Prakas, interest earned on classified loans should continue to be accrued into interest in suspense. Interest in suspense should only be reversed when a classified loan is paid or written off.
  Foreign Exchange Position Account records the MFI exposure of foreign currency vis-à -vis its base currency. Any conversion from a foreign currency to the base currency and vice-versa results in a foreign exchange position. For instance, when a grant is received in USD and funds are exchanged into KHR and disbursed as KHR loans, a foreign exchange position is initiated. Owing to the multi-currency structure of the chart of accounts, each foreign currency financial statements will have its own foreign exchange position account. The contra of the foreign exchange account is the equivalence foreign exchange position account. This equivalence account is recorded only in the base currency. An exchange revaluation is performed by comparing the foreign exchange position account at market rates and comparing the balance with that of the balance of the equivalence account. The difference is the exchange gain or loss on revaluation.
  Provision for losses on off -balance sheet accounts refer to actual and potential losses that have occurred in off-balance sheet accounts, for instance, a default from a guarantor whose guarantee becomes enforceable. Global and general provision for losses refer to provision, other than loan losses, on MFI financial and other general risks, which have occurred that should be accounted for.
  Deferred Taxation refers to the tax on permanent and timing differences that arise mainly from differences between the financial depreciation rates and the tax allowance on wear and tear on fixed assets.
  Other items may also give rise to deferred taxation and this should be accounted when they are material. Suspense and Sundry Liability account records all other liability items which cannot be classifiable elsewhere into their correct and proper liability accounts. These items are usually of a temporary nature and should be investigated by properly disposing of them within a short period of time.

• 40**** | Capital, Reserves and Earnings
  
  Premiums related to capital (Paid in surplus) refer to amounts received by the MFI over and above the par value of its share value when shares are issued for subscription.
  
  This surplus should be separated from the share capital account. Use of this account should be strictly controlled and may be debited only in accordance with legislation. Unpaid portion of capital is that portion of share capital issued but not fully paid for by the shareholders.
  
  Treasury stock refers to the MFI’s own shares which it bought from the open share capital market. At the present time, no share capital market exists and MFIs do not purchase its own shares openly in such markets. Hybrid capital is divided into:
  Hybrid Capital - Non-refundable public grants and subsidies
  Hybrid Capital - Public guarantee funds for credit risks
  Hybrid Capital - Perpetual subordinated debts
  Hybrid Capital - Others
  
  This classification follows the current required reporting requirements for MFIs. Non-refundable public grants and subsidies refer to funds from donors in the nature of supporting the capital requirements of the MFI that is non-refundable.
  
  Public guarantee funds are funds received from donors that are ear-marked for credit purposes. Perpetual subordinated debts are loans that need not be repaid to donors (lenders) as they are perpetual in tenor and donors (lenders) do not have preferential or senior claims over other creditors in the event of liquidation. Perpetual subordinated debts are closely akin to paid up share capital except for specific terms and conditions of lending specific to the debt which do not feature in common equity paid up share capital.
  
  Subordinated debt approved by NBC has as a condition the approval by NBC besides other terms and conditions of subordination of claims, interest and duration.

• 51**** | Interest Income - NBC, Banks and Sovereigns
  
  This category records the interest income from deposits, placements and claims with NBC, banks and governments. They have been classified in the same manner as for earning assets. Interest income is taken up on an accrual basis when it is earned and not at the time cash is received. Cash accounting is not in accordance with International Financial accounting Standards. The credit to interest income is a debit to Accrued Interest Receivable.


• 52**** | Interest Income - Standard, Substandard, Doubtful and Loss Loans
  
  These accounts are classified into groups, individuals, enterprises, others and related parties. In accordance with Prakas, interest income on loans should not continue to be credited once a loan becomes a substandard, doubtful or loss loan. Interest that was accrued earlier on into interest income should be reversed into interest in suspense and further accrual of interest from the date of its non-performing statues should also be credited to interest in suspense.


• 53**** | Interest Income - Investment Securities
  
  This category records the interest income on debt and interest bearing investment securities. Note that accrued interest forming part of the cost of purchase which should be taken up as purchase interest receivable is not part of interest income since interest due to the MFI commences from the time the investment was purchased and not from the date of the last interest payment of the coupon interest.


• 57**** | Non Interest Income - Fees, Commissions, Dividends, Gains on Exchange
  
  Fees and commissions refer to all loan fees and/or commissions charged to loan customers for the taking up the loan from the MFI. Fee Income for wire transfer/remittance records fee charged by MFI for domestic transfer of funds on behalf of customers from one district/province to the destination district/province. Foreign exchange gains record the differences arising from the revaluation of the foreign exchange position account at market rates compared to the equivalence foreign exchange account. Gains/ (loss) on revaluation of trading/marketable securities refer to the difference between the book value of trading/marketable securities and the market value on revaluation. Grants for which amounts were received that are meant for the current financial period are credited directly to grants account.

• 61**** | Interest Expense - NBC, Voluntary and Compulsory Deposits
  
  This category refers to interest expense on borrowings and overdrafts from NBC and demand, savings and fixed deposits from MFIs’customers, voluntarily and compulsory basis. The contra account to interest expense is accrued interest payable.


• 62**** | Interest Expense- Short term loans, Senior debt, Subordinated debt and Borrowings
  
  Interest Expense on short term loans is the interest cost of using short term loans by MFIs. Interest is accrued daily by debiting interest expense and crediting the accrued interest payable account. Interest Expense on subordinated debts is not segregated into those subordinated debts approved by NBC and those other subordinated debts. In the liability accounts, subordinated debts are segregated in order to facilitate the calculation of the net worth ratio as required by Prakas.


• 63**** | Salary, Overtime and Other Employee Expenses
  
  This category records all MFIs expenses on its employees such as salaries, overtime payments, medical, other work related expenses and any pension expense.


• 64**** | Depreciation and Amortization
  
  Both tangible (Property, Equipment, Computer Hardware, Motor Vehicles, Furniture and Fixtures) and intangible assets (Formation Expenses, Pre-opening Expenses, Preliminary Expenses, Computer software that is not an integral part of the operating system) should be depreciated or amortized. Depreciation policies must be consistently applied from one period to another.


• 65**** | Occupancy, Building, Advertising, Legal and other expenses
  
  Rental expenses refer to rental cost due to landlords for rented premises that MFIs occupy for its business. Utility expenses include water, light, gas but do not include drinking water for employees. Small items of furniture, fixtures and equipment not capitalized those items whose useful lives extend beyond one financial period but are too small in absolute amounts, as for instance, water kettle, electrical outlet plugs, screw driver, cleaning utensils and similar items. The finance manager of each MFI has to state its accounting policy for fixed asset capitalization. Marketing and advertising expenses include small gift promotional items and tokens given by the MFI, advertising of MFI services and the cost of printing brochures on MFI services to promote public awareness. Professional fees include all fees paid to consultants, designers, architects, engineers but exclude fees paid to NBC, lawyers, auditors and tax agents and advisors. Travel expenses include local and overseas travelling and consist of air tickets, accommodation, meals taken during travel, long distance bus fares and train fares. Business meals and entertainment not connected with travel are recorded separately. Communication expenses include cost of telephones, faxes, internet, mobile phones, telegrams and telexes. Stationery expenses are distinguished from printing and forms as the former consist of expendable items other than printed forms. Fire and hazard insurance expense refer to the premiums paid to insurance companies for insurance coverage against loss due to fire, explosions, water seepage, broken glass but exclude thefts, motor insurance, fidelity and cash insurance.


• 66**** | Board of Directors’ fees, Shareholders’ Meeting expense, Charitable Donation, Motor Vehicle, Income Tax and Miscellaneous expense
  
  Security expense includes cost of security guards, costs of running security monitoring equipment, costs of tapes and disks for security cameras. Board of Directors’fees refers to fees paid as remuneration to the directors of the MFIs. Shareholders’Meeting Expense includes cost incurred during the annual shareholders meeting such as food and drinks, brochures, reports, meeting rooms and related expenses. Charitable donation expenses are payments made to any person, organization, association, and corporation, non-profit entities as outright payments without exchange of goods and services but as a support for the beneficiary work or activities. Dues and memberships include joining, annual and periodic fees payable to clubs, business organizations, trade associations and sport clubs paid for the MFI or its senior managerial staff. Penalties and fines refer to all such payments to all regulatory authorities as compensation for the infringement of rules or regulations which the MFI does not comply. Motor vehicle operating expense includes petrol, oils, maintenance and repair costs, road tax, and motor license to run the MFI’s fleet of motor vehicles. Income tax expense refers to both the monthly payment of prepaid profit tax based on turnover and the annual tax computation based on the net profit of the MFI. Miscellaneous expense includes all expenses that cannot be properly classified elsewhere. This account should be properly controlled by the finance manager to prevent it from incorrect use.


• 67**** | Bad and doubtful debts, Off-balance sheet loss expense, Loss on foreign Exchange, Loss on disposal, Global and General Provision
  
  Bad and Doubtful Debts expense is the counter-part to the Specific Provision for Bad and Doubtful Debts. This account is debited as soon as a standard loan becomes a substandard, doubtful or loss loan and the specific provision account are credited. The amount of the specific provision is stated in the Prakas. Off-balance sheet loss expense is debited when a provision for a loss on an off-balance sheet item is made. For instance, if the guarantor for a financial commitment is unable to discharge his commitment at the time when such a financial commitment should crystallize, an off-balance sheet loss is recorded with a corresponding credit to Global and General Provision. Doubtful and loss on securities refer to the permanent diminution in value of securities that are not of a temporary nature. Write-off on uncollectable loans not covered by provisions refers to loans written off for which insufficient or no specific provision was made. Loss on foreign exchange is the difference between the foreign exchange positions at market rates compared to the equivalence in foreign exchange position. The revaluation should be carried out at least on a monthly basis to ensure that foreign currency accounts are correctly stated for reporting purposes. Loss of sale of security and loss on disposal of fixed assets refer to the difference between the proceeds arising from the asset or security disposal compared to the book value of the asset or security.


• 69**** | Rebates/Commission to borrowing groups, Village Bank/Association Costs
  
  Rebates to borrowing groups include any payments to a third party, including the borrowing group in respect of the loan having been made. Village/Association costs refer to all expenses in connection with its lending and other activities in the village banks and associations.

• 91**** | Financial Commitments received from banks
  
  This refers to a standby letter of credit, a letter of comfort or any other financial arrangement received from a bank where such a financial arrangement will become enforceable contingent upon the arising of some events. This account excludes guarantees received from banks, which are recorded separately.


• 92**** | Financial Commitment in favor of banks and customers
  
  This is the opposite of account 91**** where the giver of the financial commitment is the MFI in favor of banks or customers.


• 93**** | Guarantees received from banks rated AAA to below A-
  
  This category refers to guarantees received from banks for the performance of a financial obligation connected with lending or the granting of advances and other facilities. To facilitate the computation of the solvency ratio, the accounts are segregated by bank ratings.


• 94**** | Guarantees received from sovereigns rated AAA to below BBB- Similar to account 93**** except that the guarantees are received from the government or sovereign countries.


• 98**** | Other Commitments All other contingent liabilities received or given that are not specifically described in the above accounts such as lease commitments.

ផ្សេងៗ

STMT.ENTRY

• Non contingent entries posted to Accounts that appear in the account statement
• Both customer and Internal Accounts

CATEG.ENTRY

• Entries affecting Profit and Loss heads
• Both contingent and non-contingent

RE.CONSOL. SPEC.ENTRY

• Contract entries – Contingent and Non contingent
• Contingent entries of Accounts
• Accruals, Revaluation and Movements

01000 - 09999 Customer Account [Possible to Accrue Interest]

Non-Contingent Client Accounts

• 1000 - 1999 | Demand/Current Accounts
• 2000 - 2999 | Vostro Accounts
• 3000 - 3999 | Loan Accounts (used for AA and Islamic loan accounts)
• 4000 - 4999 | Margin Accounts
• 5000 - 5999 | Nostro Accounts
• 6000 - 6999 | Savings Accounts (used for regular SB accounts and AA Deposit accounts)
• 7000 - 7999 | Provision (Specific Provision on Loans)
• 8000 - 8999 | Other Client Accounts (like Sundry Debtors, Sundry Creditors, etc)

Contingent Client Accounts

• 9000 - 9999 | Contingent Client Accounts (like Cheque sent on collection, Off Balance Sheet Limit, etc.)

10000 - 19999 Internal Accounts: Assets & Liabilities [Not possible to Accrue Interest]

Non-Contingent Client Accounts

• 10000 - 10999 | Cash and Cash equivalents (includes Cheque Clearing accounts, Traveler’s cheques)
• 11000 - 11999 | Fixed & Movable Assets
• 12000 - 12999 | Transit Assets (includes all Income Receivables, Prepaid Expenses, Petty Cash, etc.)
• 13000 - 13999 | Other Assets
• 14000 - 14999 | Suspense Accounts
• 15000 - 15999 | Liabilities (includes Monetary Papers, General/Specific Provisions)
• 16000 - 16499 | Provision for Depreciation
• 16500 - 16599 | Internal Margin Accounts
• 16600 - 16999 | Other Open Internal Accounts
• 17000 - 17999 | Transit Liabilities (includes all Expense/Accounts Payable and Income Received in Advance)
• 18000 - 18999 | Capital Liabilities (includes Owner's equity, Statutory/Other Reserves and Retained Earnings)

Contingent Client Accounts

• 19000 - 19999 | Internal Contingent Accounts

20000 - 20999 Contract : Forex

20000 - 20999 Forex

21000 - 21999 Contract : Loans Deposit (LD) and Money Market (MM)

• 21001 - 21029 | Deposits
• 21030 - 21039 | Takings
• 21040 - 21044 | Fiduciary Deposits
• 21045 - 21049 | Sundry Deposits
• 21050 - 21074 | Loans
• 21075 - 21084 | Placements
• 21085 - 21089 | Fiduciary Placements
• 21090 - 21094 | Account Receivable
• 21095 - 21099 | Commitements

22000 - 22999 Contract : Securities

• 22000 - 22999 | 22999 Securities Default

23000 - 49999 Contract : Other Applications

• 23000 - 49999 | As per allotted ranges

50000 - 59999 Profit & Loss

Product Related

• 50000 - 50999 | Interest paid
• 51000 - 51999 | Interest received
• 52000 - 52999 | Commission
• 53000 - 53999 | Exchange profit
• 54000 - 54999 | Provision & Recovery
• 55000 - 59999 | Other Regular Income

Non Product Related

• 60000 - 60999 | Personnel Expenses
• 61000 - 61999 | Premises and Buildings
• 62000 - 62999 | Other Operating Expenses
• 63000 - 63999 | Taxes
• 64000 - 64499 | Provision for Expenses
• 64500 - 64999 | Depreciation & Amortization
• 65000 - 65999 | Other Ordinary Income
• 66000 - 69999 | Other Extraordinary Income

• Constant : (Principle + Interest) = Fixed Amount
• Linear : Principle (Fixed amount) + Interest
• Balloon : Principle (Small amount) + Interest , End of the maturity the Principle (big amount) + Interest
• Bullet : Principle ( Will be paid at the End maturity), Interest paid on monthly

Thank you for your comment if you have any advice. !