VOCATIONAL HIGHER SECONDARY

TEACHERS SOURCEBOOK

BANKING ASSISTANCE
SECOND YEAR

Government of Kerala Department of Education 2006

STATE COUNCIL OF EDUCATIONAL RESEARCH AN D TRAINING (SCERT) Vidyabhavan, Poojappura, Thiruvananthapuram-12

Prepared by: State Council of Educational Research & Training (SCERT) Vidyabhavan, Poojappura, Thiruvananthapuram -12 Kerala
E-mail:scertkerala@asianetindia.com

Type setting by: SCERT Computer Lab. Government of Kerala Education Department 2006

Preface
Dear Teacher The activity based, process oriented and learner centered pedagogy is being introduced in the vocational higher secondary classes. It becomes imperative to make significant changes in the learning proces as well as in the s evaluation system for its successful implementation. Commerce deserves importance due to its vocational nature. Banking Assistance is one of the subjects offered under commerce based vocational courses. It helps the learner to achieve and improve their vocational

competencies and equip them to get wage or self employment after completing the course. A suitable learning methodology may be adopted to transact the curriculum to achieve the aforesaid objectives. This source book has been designed in such a way to help the teacher to provide suitable learning activities for effective learning. The success of the approach depends upon the vision and commitment of the teacher. For the preparation of source book, the SCERT, Kerala has drawn the expertise from the field of commerce as well as the pedagogic expertise of Vocational Higher Secondary teachers. This book provides guidance on theoretical and practical aspects of the subject as well as opportunities for planning the activities needed fo r the transaction of curriculum and the evaluation process. I solicit your comments and suggestions for the improvement of source book.

With regards Thiruananthapuram Dr. E. Valsala Kumar Director SCERT

Contents
Part I
1. General Approach and Subject Approach .......................... 2. Learning Strategies ............................................................. 3. Curriculum Objectives and syllabus ................................... 4. Planning ............................................................................. 5. Evaluation ...........................................................................

Part II
1. Loans and Advances ........................................................... 2. Specific Loans .................................................................... 3. Securities for Advances ...................................................... 4. Handling of Cash................................................................ 5. Negotiable Instruments ....................................................... 6. Clearing House ................................................................... 7. Accounting.......................................................................... 8. Accounts of Banking Companies ....................................... 9. Miscellaneous Office Function...........................................

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CURRICULUM OBJECTIVES AND SYLLABUS

1. To identify different types of advances through discussion, seminar and prepares notes and charts. 2. To develop an idea about the principles of lending through discussion etc and prepares notes and charts. 3. To identify the types of specific loans and to analyse these loans through a project and discussion and prepare reports based on it. 4. To get knowledge about the concept of priority sector advances through discussion, seminar and prepare report. 5. To get practical knowledge about the duties and responsibilities of a banker in disbursing loans through discussion, institutional field visit and presentation of notes. 6. To get an idea about the meaning, importance and features of securities for advances and analyse the merits and demerits of different types of securities through discussion etc and prepare notes. 7. To get a practical knowledge about the precautions to be taken by a banker while accepting securities for advances through discussion and interview with a bank manager and presentation of report. 8. To develop the concept of the term lien and to classify types of lien through discussion etc and draft notes on it.

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9. To get an idea about the meaning and features of pledge and hypothecation and differentiate between them through a discussion etc and prepare notes. 10. To acquire knowledge about the meaning, features and kinds of mortgages through discussion etc and prepare notes. 11. To collect information about the functions of cash department of a bank by visiting a near by bank and preparation of report. 12. To get an idea about the working of Automatic Teller Machine, sorting of notes, procedure of opening strong room through discussion etc and prepare notes. 13. To get the concept of the meaning and features of Negotiable Instruments and differentiate between them through group discussion etc and presentation of notes. 14. To get an idea about the meaning and features of bank draft and differentiate it from cheque through discussion, specimen forms and prepare notes and charts. 15. To develop an idea about the meaning and advantages of crossing of cheques and to identify different types of crossing through discussion and by giving practical with the help of specimen forms and presentation in the form of notes and charts. 16. To develop an idea about the meaning, features and kinds of endorsements through discussion and seminar and prepare report. 17. To get an idea about the meaning of dishonour of cheque, the circumstances for dishonouring and the meaning of MICR cheque through discussion etc and prepare notes. 18. To examine the meaning of paying banker and collecting banker and analyse their duties through discussion etc and prepare notes.

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19. To collect information about the meaning, advantages and working procedures of clearing house through discussion and draft notes on it. 20. To develop an idea about the meaning and objectives of accounting and analyse its importance from various reference materials, discussion etc and presentation of notes. 21. To develop information regarding various business transactions and analyse the rules of debit and credit from reference material, and prepare necessary book of accounts. 22. To analyse the concept of ledger and to prepare ledger accounts through discussion and assignments. 23. To develop an idea about the meaning of trial balance through discussion and its preparation. 24. To identify and to analyse the meaning and types of errors, its rectification through a seminar etc and present in the form of report. 25. To get knowledge about the meaning of financial statements and analyse its process of preperation through discussion etc and by collecting reference materials and its presentation.

26. To collect information about the books of accounts to be maintained by the banks by conducting bank visit, discussion and preparation of specimen forms of profit and loss account and balance sheet of banks in the scheduled form. 27. To create an idea about the classification of bank advances as Standard assets, Substandard assets, Doubtful assets, Loss assets and Non performing assets (NPA) through discussion etc and prepare notes on it.
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28. To collect information about the meaning and importance of office and analyse its functions through discussion, reference materials etc and presentation of report. 29. To get an idea about the procedure of inward and outward mail through discussion, collecting specimen forms and presentation of notes and charts. SYLLABUS 1. Loans and advances : Meaning of the term loan-consideration for sound lending-types of loans: cash credit, overdraft, bills discounted and purchased. (10 hrs) 2. Specific loans: Personal loans Housing loans consumer loans priority sector advances loans for weaker sections, small scale industries, agriculture, self-employed and professionals etc. gold loan loan against hypothecation duties and responsibilities of bank in disbursing loan. (10 hrs ) 3. Securities for advances: Meaning kinds of securities: term deposit Receipts, gold vehicles, land, buildings, goods, document of title, Government securities, Semi-Government securities, Corporate securities, Insurance policies and other securities Modes of charging the security: Lien pledge, hypothecation, mortgage. (15 hrs) 4. Handling cash: Functions of cash department receipt and payments recording safe keeping of cash by double lock system teller system sorting of notes procedures of opening strong room. (6 hrs)

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5. Negotiable instruments: Meaning characteristics- kinds : promissory note, bill of exchange, bank draft- parties to negotiable instruments crossing Endorsement collection and payment of cheques Dishonour of cheque MICR cheques. (15 hrs) 6. Clearing house: Meaning Functions working rules receiving local cheques, drafts etc. Stamping , sorting, preparing schedule and general summary , exchanging the cheques in clearing house and balancing-sorting bank wise and branch wise, putting banks endorsements, returning the dishonoured cheques. (5 hrs) 7. Accounting: Meaning and objectives-Importance-Double entry systems of accounting-Accounting concepts and conventionsRecording transactions in journal, ledger subsidiary booksbalancing of Accounts- Rectification of mistakes- Trial balancepreparation of final accoun: Trading Profit and Loss account and Balance Sheet. (23 hrs) 8. Accounts of banking companies (Basic awareness): Books of accounts to be maintained by banks-slip system of posting-final accounts of banks : Profit and loss account and Balance sheet (Forms as per Banking Regulation Act.only) Classification of bank advances as Standards assets, Sub-standard assets, Doubtful assets and Loss assets. (6hrs) 9. Miscellaneous office functions: Receipt of mail opening of lettersdate stamping-scrutiny of contents-Recording inward registerSorting and distribution to sections-Despatch of mail: Sorting clearing entry in outward register-posting keeping accounts of postal stamps-filing receipts-maintenance of office files. (10 hrs)
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CLASS WORK 1. Loans and advances: Formalities to be followed by borrowers in getting various types of loans(cash credit, bank overdraft, personal loans, consumer loans, vehicle loans, housing loans, education loan ,loan against hypothecation of goods etc.) from banks procedure to be followed by the bank officials before sanctioning loans recording in the books of accounts, interest calculations, EMI fixation, follow up procedure by bank officials in case of default, closing of loan account. (10Hrs) 2. Handling of cash: Practicing procedures followed in the cash

department of a bank for receiving cash, issuing cash, various steps, counting the notes and coins, sorting out the notes and coins denominations wise, sign the form and affix cash received date stamp, preparation of cashiers receipt scroll, preparing packets of 100 pieces of notes. (10 Hrs) 3. Negotiable instruments: Scrutiny of cheque requisition slip, practical exercise on writing in cheque, drafting bill of exchange, promissory note and draft, crossing, endorsement, calculation of due date, settlement of due date, forwarding of bill from one branch to another, disposal of unpaid bills. (5Hrs) 4. Receiving outstation cheques etc.and entering in the clearing register, stamping the cheques and sorting them bank wise,

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preparing schedule for each bank and general summary exchanging cheques in clearing house, preparing adjustment vouchers, entering in clearing register and balancing. (10Hrs) 5. Accounting: Journalizing, writing day book with the help of vouchers, post them in to ledger, balancing the accounts, preparation of trial balance, trading and profit and loss account and balance sheet, reconciliation, statement and tallying of accounts. (5Hrs) Practical

Typewriting on one side of the paper an ordinary printed passage with or without heading and few figures if necessary and not exceeding three paragraphs consisting of 2250 strokes at the rate of 45 w.p.m. in double line spacing with 10 degrees margin on the left and 5 degrees on the right. Note: 5 strokes will be counted as a word. Each depression of a character key or the space bar will be counted as a stroke. No stroke is counted for paragraphs or depression of shift key. Two strokes are counted after a full stop, interrogation mark, colon and exclamation mark. One stoke before and one stroke counted after and semicolon. One stroke before and one stroke after brackets. 2. Typewriting English - II Paper 140 Hrs.

Typewriting English - I Paper (Speed) 140 Hrs.

This paper is intended to serve as a test of the candidate, knowledge of spelling, punctuation and common abbreviations and his ability to present in proper form the fair copies for signature. This consists of any 5 questions from the following: Type and advanced statistical statements with vertical heading Type private letters/ business letters/D.O letters/Official Letters/letters from autonomous bodies and professional letters know how to take carbon copies.

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Type Government Orders /Proceedings/ Circulars/ Notices and Notification. Type Balance Sheet/Profit & Loss Account in two separate sheet of paper so as to match together.

Type Judgment /Agreement/display/Notic e/Advertisement /Programme and Invitation with ornamental borders.

Computerised Accounting 140 Hrs. Overview of Computer system

Fundamentals of Computerised Accounting System Concept of Grouping of Account Classification of Accounts, Maintaining the hierarchy of ledger.

Application of Computers in Financial Accounting

Accounting procedures used in practice for recording cash, bank and journal transactions using appropriate vouchers. Preparation of ledger accounts, cash book, bank book, bank reconciliation statement. Trail Balance, Final Account, budget, Sales Tax calculations, Inventory control, Pricing and Movement of Inventory, Valuation of stock, Cost centre and Cost units.

Accounting Applications Using Electronic Spreadsheet

Payroll Accounting Loan Repayment Schedule Depreciation

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outlook towards life and to accept a stand which suits the well being of the society and the individual as well. The attitude and potential to work has determined the destiny, progress and cultural development of the human race. As we all are aware, the objective of education is to form a society and individuals having a positive work culture. The educational process expected in and outside our formal schools should concentrate upon inculcating concepts, abilities, attitudes and values in tune with these work culture. Hence vocationalised education cannot be isolated from the main stream of education. In another sense, every educational process should be vocationalised. However due to our inability to utilize the resources wisely, scarcity of job opportunities is a severe issue of the present society. For overcoming this deep crisis, emergent techniques have to be sorted out and appropriate researches have to be seriously carried out. It is in the sense that the content and methodology and world of of Vocational education Higher is well Secondary recognized. Education The have to of be the approached. The need for meaningful linkages between the world of work essence recommendations made by various commissions and committees is that the vocationalisation should be the main feature of the future system of education at the higher secondary stage, it can be extended to school level also. Vocational education is system of education which intends to prepare learners for identified occupations , opening several areas of activities. The Vocational Higher Secondary course was envisaged as a part of the National Policy on Education with the noble idea of securing a job along with education. The relevance of vocational education is very great in this age of unemployment. This education system, which ensures a job along with higher education stands aloof from other systems of education. This education imparts the life skills required by the youth to enter the world of work and assuming the responsibilities of adulthood. As per the expert meeting report (2001) of UNESCO, the life skills are grouped under 4 categories. They are

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Skills for personal fulfillment Skills for living in society Skills for dealing with changing economies Skills for dealing with changing work patterns. Vocational Education ensures fulfillment of manpower requirement or national development and for social security for the citizens through selfemployment. It also helps to reduce the migration of rural youth to urban areas and thus helps in rural development. The learners of Vocational Education get an opportunity to avail one year apprenticeship training in industries to improve their practical skill. During the course of study, on the job training (OJT) for 10 days in a year is arranged to improve the skill and efficiency of the learner. This education system motivates the attitude towards self employment through Production Cum Service Training Centres. (PSTC)

Objectives of vocational education

The National policy on education has accorded very high priority to the program of vocationalisation of education, considering the following objectives. 1. To fulfill national goals of development and the removal of unemployment and poverty. 2. To impart education relevant to increased production and productivity, economic development and individual prosperity. 3. To make available skilled work force at all levels to alleviate the rural unemployment and for the development of nation. 4. To develop environmental awareness to ensure sustainable development. 5. To develop vocational aptitude, work culture, values and attitudes of the learners so as to enrich the productivity of the nation.

6. To develop entrepreneurial competencies and s kills of learners for self reliance and to undertake gainful self employment.

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7. To facilitate the expansion of higher education and explore future opportunities through innovative guidance and programmes. 8. To develop vocational competencies, creative thinking in the related areas and facilitate training. 9. To create awareness on mental, physical and social health. 10.To acquire awareness about different job areas and to provide

backgrounds for acquiring higher level training in subjects concerned.

Learning
Learn ing is construction of knowledge through a continuous mental process. It is advancement through adding and correcting in the light of comparing the new issue with the previously learned concepts. Learning is an intellectual process rather than the mere memorization of facts. Learning is a conglomeration of a variety of activities like problem solving, finding out co-relations, prediction, arriving at conclusions, rational as well as critical thinking, finding applications, grouping for other possibilities and extracting the crux when opportunities are provided for intellectual processes learning will become effective and intellectual ability will get strengthened.

Theoretical foundations of learning

Education is the best device that can be adopted for creation of a new society. It should be democratic in content and process and should acknowledge the rights of the learner. It should also provide opportunity for better citizenship training. The concept of equality at all areas should get recognition in theory and practice. They should be able to view education and life with the perspective of social well being. A basic awareness of all the subjects needed for life is essential for all learners.

The remnants of perspectives formed in us during the colonial period still influence our educational philosophy. The solution to the present day

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perplexities of the society which approaches education on the basis of competitions and marketisation is only a comprehensive view of life. It is high time that education was recognized on the basis of the philosophy of human education. The human approach to education has to reflect in its content, learning process and outlook. The perspective of learning to be and learning to live together as expressed by the UNESCO should be highlighted. The basis of new approaches on curriculum and teaching- learning process are derived from the developments took place in the east and west of the world. When we begin to see the learner at the centre of the learning process, the teaching process has to be changed timely. It is the result of the rapid growth and development of Science and Technology and Pedagogy. If we want to undergo the changing process, we have to imbibe the modern hypothesis regarding learner that they have great curiosity good imagination numerous other qualities and interests independent individuality interest in free thinking and working in a fearless atmosphere. interest in enquiring and questioning. ability to reach conclusions after logical thinking. ability for manifest and establish freely the conclusions arrived at. interest for recognition in the society. determination to face the interference of society and make components which is a part of social life. .When we consider the learning system, the domains to be stressed in education according to the modern development becomes relevant.

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The knowledge domain consists of

Facts Ideas Laws The temporary conclusions and principles used presently by scientists. The learning is a process. The continuous procedures we undergo to reach a particular goal is process. The skills which are parts of the process to analyze the collected ideas and proofs and come to a conclusion is called process skills. Some important process skills are,

the skills;
To observe To collect data and record To classify To measure and prepare charts To experiment To predict To recognize and control the variables To raise question To generalize To form a hypothesis and check. To conclude To communicate To predict and infer To use tools. Observation is the process of acquiring knowledge through the senses. It is purely objective oriented. Learning experiences which provide the use all the sense may be used. The process of grouping is known as classifying. Starting from simple groupings of data, it can extend to the level of classification into minute subgroups.

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In addition to this, consider the skills related to creative domain also, they are

skills:
To visualize To connect facts and ideas in new ways. To find out new and uncommon uses of objects To fantasize To dream To develop creative isolated thoughts Creativity is an essential component of process and activities. The element of creativity is involved in finding out problems, formation of hypothesis, finding solutions to problems etc. Through activity oriented learning experiences, opportunities to express creativity can be created. Again, the following factors consisting in the Attitudinal domain are also important as; Self confidence Love for scientific knowledge Attitude to know and value history Respect human emotions Decide with reasonable present problems Take logical decisions ragarding personal values Hypothesis is a temporary conclusion drawn using insight. Based on knowledge and experiences relating to the problems the causes and solutions can be guessed. As regards the application domain the important factors are the ability to: observe in daily life examples of ideas acquired. take the help of scientific process to solve the problems of daily life. choose a scientific life style connect the ideas acquired with other subjects.

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integrate the subjects with other subjects. Some basic stands have to be taken on the new scientific knowledge

about intelligence learning and teaching. When such basic concepts are accepted changes are required in the following factors. The vision, approach, structure and content of the curriculum. The vision, approach, structure and content of the textbooks. Role of the teacher and the learner. Learner atmosphere, learning materials and learning techniques. Some scientific perspectives accepted by modem world in educational psychology are given below.

Constructivism
This approach puts forward the concept that the learner constructs knowledge. New knowledge is constructed when ideas are examined and practiced in new situations relating them with the previously acquired knowledge and experience. That is assimilated into the cognitive structure of ones knowledge. This method which gives priority to critical thinking and problem solving provides opportunity for self motivated learning.

Social Constructivism
Social constructivism is a sub section of constructivism. Knowledge is formed, spread and imbibed and it becomes relevant in a social environment. Interactive learning, group learning, co-operative participatory learning, all these are concepts put forward by social constructivism. The main propounders of constructivism are Piaget, Vygotsky and Bruner. Discovery learning and interactive learning have prime importance. Learning takes place as a part of the attempt for problem solving. The activities of a learner who confronts cognitive disequilibrium in a learning situation when he tries to overcome it leades to the renewal of cognitive structure. it is through this process construction of new knowledge and the assimilation of them take place. Observation and enquiry are unavoidable

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factors. The learner advances towards new areas of acquisition of knowledge where he tries to compare his new findings with the existing concepts. Learning is a live mental process. Rather than the ability for memorization of facts cognitive process has to be given emphasis. The process of problem analysis, elucidation, critical thinking, rational thinking, finding out co-relation, prediction, hypothesis formation, application, probing for other possibilities, extracting the crux and other processes are of critical importance in learning. Constructivism gives greater predominance to co-operative learning. Social and cultural factors influence learning. Sharing of knowledge and experience among group learners, activity collective and enquiry, assessment by and improvement, collaborative learning sharing

responsibilities with the objective of public activity, provide opportunity for effective learning. In learning internal motivation is more important than external motivation. The learner should have interest and initiative in learning. Learning situation should be capable of forming a sense of ownership in the learner regarding the learning process. Learning is not a linear process. It progresses in a spiraled way advancing deeper and wider.

New concepts of Learning

1. Discovery Learning
The teacher has to create a motivating atmosphere for the learner to discover concepts and facts, instead of listening always. Creating occasion to progress towards discovery is preferred. Instead of telling everything before and compelling to initiate the models, situations are to be created to help the children act models as themselves.

2. Learning by discussion
Discussion leads to learn is Burners theory. Here discussion is not opposing each other. It is a sharing on the plane of ideas. New ideas are arrived at by seeking explanations, by mutual giving and taking of ideas and by problem solving.

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3. Problem solving and learning

Only when the learner feels that some thing is a problem to be solved that he takes the responsibility of learning it. It is an inborn tendency to act to solve a problem that causes cognitive disequilibrium in a particular area. It is also needed to have confidence that one is capable of doing it. The problems are to be presented in consideration of the ability and level of attainment of the learner.

4. Collaborative learning
This is the learning in which the responsibilities are distributed among the members of the group keeping common learning objectives. The common responsibility of the group will be successful only if each member discharges his duties. All the members will reach a stage of sharing the result of learning, equally through the activity with mutual understanding. The teachers who arrange collaborative learning will have to make clear the responsibilities to be discharged. This is possible through the discussion with the learners. Collaborative learning will help to avoid the situations of one person working for the whole group.

5. Co-operative learning
This is the learning in which the learners help one another. Those who have more knowledge, experience and competency, will help others. By this exchange of resources the learners develop a plane of social system in learning also. As there are no high ups and low ones according to status among the learners they can ask the fellow learners doubts and for helps without any hesitation or in hesitation Care should be taken not to lead this seeking of help to mechanical copying. It should be on the basis of actual needs. So even while encouraging this exchange of ideas, among the members of the group cautious acceptance is to be observed as a convention. There should be an understanding that satisfactory responses should come from each member and that the achievement of the group will be assessed on the basis of the achievement of all the members

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6. Zone of Proximal Development

Vygotsky observes that there is a stage of achievement where a learner can reach by himself and another higher zone where he can reach with the help of his teachers and peers and elders. Even though some can fulfill the learning activity by themselves there is the possibility of a higher excellence. If appropriate help is forth covering every learner can better himself.

7. Scaffolding
It is natural that the learner may not be able to complete his work if he does not get support at the proper-time-The learner may require the help of the teacher in several learning activities. Here helping means to make the learner complete the activity taking responsibility by himself. The teacher has to keep in mind the objective of enabling the learner to take the responsibility and to make it successful.

8. Learning an active mental process

Learning being a cognitive process, the teacher needs to know cognitive processes to facilitate the creation of learning opportunities. Learning can be made effective by providing learning experiences involving mental processes like Retrieves/recollects/retells information Readily makes connections to new information based on past

experiences and formulates initial ideas /concepts. Detects similarities and differences Classifies/categorise/organizes information approximately. Translates/transfer knowledge or understanding and applies them in a new situation. Establishes cause -effect relationships Makes connections/relates prior knowledge to new information/applies reasoning and draw inferences Communicates knowledge/understanding through different media. Imagines/fantasises/designs/predicts based on received information

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Judges /appraises/evaluates the merits or demerits of an idea/develops own solutions to a problem.

9. Intrinsic Motivation
Intrinsic motivation is given more importance than extrinsic motivation. The teacher has to arouse the internal motivation of the learner. A person internally motivated alone can immerse in learning and own its

responsibility.

Components of intelligence

1. Verbal/Linguistic intelligence
The ability for reading, writing, verbal production speak and communicate effectively belong to this type. This type of intelligence can be developed through activities such as oral communication, report writing etc.

2. Logical/Mathematical intelligence.
Abilities like logical thinking and finding out patterns and relations belong to this component. This type of intelligence developed through establishing relationships and mathematical operations.

3. Visual/Spatial intelligence
People with prominently visual/spatial intelligence will be able to design models and execute ideas they have. Architects, designers and sculptures will be strong in this type of intelligence. Model building, making of art material, painting and drawing will help this component develop.

4. Bodily/ Kinesthetic intelligence.

This intelligence is related to the ability to move the body parts. Dancers, actors and sports people who can move the body aesthetically and express emotions through body movements belong to this category. Activities involving Dance, aerobic, sports and games help the development of this type of intelligence.

11. Musical intelligence.

It is believed that this type of intelligence is highly developed in people with the ability to distinguish the different elements in music, performing musicians and those who can appreciate music. Playing musical

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instruments, singing along with others, keeping rhythm etc are activities that help the development of this component.

12. Interpersonal intelligence

People who demonstrate leadership qualities and are able to interact in a positive way with others will have a better developed interpersonal intelligence. They can understand the thinking of others and can successfully involve in negotiation activities. Role play and group activities can be used to cultivate this intelligence.

7. Intrapersonal Intelligence
This is the ability to understand oneself. These people can recognize their own abilities and disabilities. Writing diaries truthfully and in an analyzing way and assessing the ideas and activities of others will help developing this areas of intelligence

8. Naturalistic Intelligence
A great interest in the flora and fauna of the nature, love towards fellow beings interest in spiritual and natural factors will be capable of developing this area.

9. Existential Intelligence
The ability to see and distinguish ours own existence as a part of the universe, ability to distinguish the meaning and meaninglessness of life, the ability to realize the ultimate nature of mental and physical existences, all these re the peculiarities of this faculty of intelligence.

10. Emotional Intelligence

The concept of emotional intelligence put forward by Daniel Golman was used in framing the new curriculum. The fact that ones Emotional Quotient (E.Q) is the greatest factor affecting success in life is now widely accepted. The teacher who aims to focus on improving the emotional intelligence of learners need to concentrate on the following.

i) Ability to take decisions

Rather than imposing decision on learners while planning and executing activities, the learners may be allowed to take part in the decision making

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process. Taking decisions through open discussion in the class, inviting learners suggestions on common problems etc. are habits to be cultivated.

ii) Ability to reach consensus

When differe nt opinions, ideas and positions arise, the learners may be given the responsibility to reach a consensus. Imagining what would be the course of action in some situtations, allowing to intervene in a healthy way in problems between individuals.

iii) Problem solving

Developing the idea that there is reason and solution to any problem. Training in finding reasons for problems. Suggesting solutions through individual or group efforts. Discussing social problems. Analyzing the shortcomings in methods to solve problems. Whether plastic can be banned within school premises can be given as a problem. Group discussion will provide reasons and solutions. Problems which can influence classroom learning and for which the learner can actively contribute solution need to be posed Self criticism, evaluation Ability to face problem-situation in life Thinking what one would do if placed in the situation of others, how one would respond to certain experiences of others - All these foster the growth of emotional intelligence.

iv) Life skills

Life skills need to be given a prominent place in education. W.H.O. has listed : skills required for-success in life. Self awareness Empathy Inter personal relations Communication Critical thinking Creative thinking

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Decision making Problem solving Coping with emotion Coping with stress The new curriculum addresses these areas. Knowing the characteristics of the learner, role of the teacher and how

to use the teachers handbook help the teacher to plan and effectively implement learning activities.

Role of a Vocational Teacher

In the earlier approach the teacher was mainly depending on the lecture method for teaching. But in the new method of education the learner centered approach is given more importance than the teacher centered approach. Under this changed scenario the vocational teacher has to perform the following roles in the classroom. The Vocational teacher should be A facilitator of learning A guide to the overall development of the learner A good observer and motivator Able to consider the activities, needs, special features and age group of learners at higher secondary level. Able to understand the limitations of learner and their learning problems. An instructional material developers A good communicator An innovator Able to raise leadership qualities and self confidence of the learner An authoritarian in the concerned subject Able to arrest and sustain the attention of the learner Able to bring out and encourage the inborn talents. A resource manger to ensure the optimum utilization of resources. A systematic record keeper A counselor to issue guidance to the learner. A person with high level of practical competency Able to correlate area of study with familiar environmental situations A self evaluator and good listener Able to create awareness in social problems

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A person with democratic and humanitarian approach A professionalist as well as philosopher A good evaluator A good organizer and a friend. A co-learner as well as co-researcher Able to give assistance and advice in placement needs and self employment by giving moral and technical support Able to keep moral values A person equipped with skill for using new techniques of learning Optimistic and impartial Learning can be effective and enjoyable only when the class atmosphere

Child friendly Class Room Atmosphere

is according to the new conception of learning and the characteristics of higher secondary learner. Class and seating are arranged in an attractive way Democratic nature is upheld Always active Learners interact with teachers without fear Opportunity for a variety of activities Learners allowed to involve interesting group activities Learning speed, learning style and differencing levels of attitudes are considered. Help is extended whenever needed. Sufficient instructional materials are available There is freedom of expression, learners share their ideas and experiences Learners are given acceptance and encouragement Healthy atmosphere Needs of each learner is given consideration. Happy and energetic atmosphere Teachers work considering the rights of learners Problems handled in a patient way Teachers work at all events from the learners view point There will be learners of various ability levels in every class because

learning style, learning speed, varying exposure to language experiences, physical and psychological problems and varying socio-cultural background. The learning experiences provided must help to bring the low activities to an expected level and extended the breadth and depth of the skills of the high activities.

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By

repeating

experiences,

introducing

variations

in

learning

experience to suit different levels and if needed, formulating additional experiences the problem of varying ability levels can be tackled.

Role of Learner
The learner in second year has undergone a learner centered and process oriented learning experience up to first year. The learner at this age is in awakening stage and he is enthusiastic about environment. He needs recognition and encouragement from environment and also recognize as a grown up man. He is adequately competent to select vocational subjects according to his aptitude and interest and to acquire higher education and profession as he wishes. The aspirations about future life is framed in this particular age for seeming national and international job opportunities. Some of the peculiarities of learner at this stage are; Physical, intellectual and emotional changes are intensive during the age and their reflections can be observed Ability to enquire discover and establish cause effect relationship between phenomena Readiness to undertake challenges Capacity to shoulder leadership roles Attempt to interpret oneself Susceptibility to different pressures Doubts, anxieties and eagerness about sex Imaging for social recognition Active participant in the learning process Act as a researcher Sharer of information Sharer of responsibilities Collect information Jakes leadership Involves in group work Act as a co-participant Observes his environment Experiments and realize Make interpretations and draw inferences Mould himself in to an active contributor for the welfare of the society

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Needs of Learner
To make acquaintance with a job or self employment through vocational education To acquire more knowledge in the concerned are a through higher education To recognize and encourage the peculiar personality of the later adolescent period To enable him to defend against the unfavorable circumstances without any help In vocational higher secondary education, a new approach to education and evaluation should be made. Evaluation must be a systematic and continuous process. As the curriculum is based on vocational stream, capacity building is a most important part and it should be evaluated accordingly. The technical skills, interest in the particular field, communication skill, analysis organizing and presentation skills etc have to be evaluated. The personal and social qualities also have to be evaluated. Therefore, evaluation should be transparent, continuous and

Evaluation

comprehensive.

Monitoring system
Education is a kind of journey from darkness to light satisfying the needs and the wants of the individual and the society. The modernization of education through activity oriented system enhances free thinking and working in a fearless atmosphere. It is a qualitative process not a quantitative one this necessitates a proper monitoring system. The system of monitoring should have the following features. 1. It must be transparent 2. It must enrich the ideas of the facilitator through innovative process 3. It must be time bound and rational 4. It must motive the facilitator to adopt new strategies 5. It must be recordable and ensure effective feedback for the effective monitoring of the system, three levels of the mechanism should be setup.

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6. School level monitoring group 7. Regional level monitoring group 8. State level monitoring group Moreover a social auditing system is advisable to attain the objective effectively.

Supporting System
In learner centered vocational education, a learning methodology has to be organized and a proper learning atmosphere is to be provided. Many organizations can support the learning activity. They are:-

School Resource Group (SRG)

Comprising all teachers (vocational and non vocational) instructors, and lab assistants with academic head as the group leader.

School support Group (SSG)

Comprising PTA president, members of local bodies, members of social clubs, subject experts etc who can contribute guidance /technology /infrastructure /financial assistance etc.

Parent Teacher Association (PTA)

Can give supports for raising adequate funds for field trips, production cum training centers (PCTC), exhibition, On Job training (OJT) etc.

Local bodies
Grama Panchayat, district panchayat and block panchayat can give support for providing infrastructure ie, class rooms, laboratory, library, seminar hall, audiovisual equipment etc.

Subject club
All vocational teachers handling same vocational subjects should form a subject club at regional level or district level. This will helps to share the knowledge and practical facilities, production and marketing of materials, service etc. 1. Based on the excellency, district wise nodal schools may be selected to provide facilities like central library, museums, video conferencing etc. 2. Institution Industry Interaction Project (III P)

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This should be implemented in every institution to update knowledge this also helps for OJT , PCTC and field visit.

Features of learning process in the new system of education

In the new system of education the learning process should be modified in such a way as to enable the learner to construct the knowledge of his own through observation, co-operation, problem solving, social interaction etc. The learning process should consider the nature ability, social setup, inborn talents and subject selected by the learner. Therefore the learning process should be, A continuous mental process Simple - learner must feel that he is able to undertake the task Enable the learner to attain the curriculum objective Interesting Suitable to the age and attitude of the learner Future possibilities Enable group activity Challenging Time bound Constructive and curiosity developing Possibilities for evaluation Capacity to generate independent thinking Ability to enquire discovers and establish cause effect relationship between phenomena.

Learning Aids
To make the teaching and learning process simple and effective, certain learning aids and necessary use of such aids are transacting a complex idea makes the class room live and learners get more and more involved. The advancement of science and technology may be effectively utilized for this purpose. Some of the learning aids listed below. Multimedia Over Head Projector

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Computer Internet Liquid Crystal display Projector TV, VCD, DVD and tape recorders Working models Charts Slides Video Conferencing facility Library Text book Source book

Society
The new educational policy uplifts the social commitment of the learner. Therefore the society can also give some valuable contributions in this changing situation. The new system also ensures that the learner can perform certain useful services for the betterment of society. The social obligations can be illustrated as follows. To enrich social values, aptitude and ability in learner To develop entrepreneurial aptitude and ability which helps social welfare and self employment New system of education adopts OJT, PSTC etc as a part of vocational curriculum which helps to make close contact with the society. The resources available from our society can be positively utilized to convene seminars, interview etc. Social organizations can help learners to make their education socially committed. The social clubs like NSS, Tourism club, Eco club, energy club etc functioning in schools can make direct link with the society.

Subject Approach
Banking plays an increasingly important role in a nations economy. Occupying a pivotal position in the organized money market, it has acquired a special place with its huge deposits and advances. With the gradual cha nge in the very concept of banking and with the entry of state in its administration, banking has assumed enormous importance as a subject of analysis and research. The modern banks have to perform not only banking functions but also those which are more in the nature of services undertaken with a view to increase its utility to the community. From a mere depository of surplus cash, it has gradually developed into an institution which 71

provides for practically every financial requirement of commerce and business as well as of the general public. Learning about banking is necessary in modern world. Therefore, learning strategies are to be provide inside and outside the classroom which helps the learners to develop creativity, experimentation and innovation.

Objectives of Learning Banking Assistance as Vocational Subject

o To create an awareness about the importance of banking. o To develop skills such as conceptual skills, technical skills and application skills in the field of commerce and banking business. o To prepare a student for a career in banks and other financial institutions. o To familiarize students with modern banking techniques. o To give each student enough opportunities to acquire relevant knowledge about banking business. o To train students to do banking transactions by themselves o To enable the students to help the public for performing banking transactions. o To enable the students to be self employed.
The theoretical foundation of learning stated earlier may be applied to make the learning of the subject effective.

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LEARNING STRATEGIES
In the modern era of globalization the introduction of new

technologies ensure only the survival of the fittest. So it becomes a necessity to equip the leanness to face the growing challenges in the competitive world. Hence the traditional approach to learning is no more relevant in the present context. The teacher should use instructional techniques that motivate the learner to construct his own knowledge. Now the learners are not passive listeners, but they are the active participants in the construction of knowledge. Here the teacher learner interaction should be given much importance. In the new instructional strategy while selecting the methods of teaching, the social and psychological aspects of the learner is to be taken into consideration. The given activities for learning are only suggested one. It can be altered according to the discretion of the teacher. To obtain the objectives, the new system of education is introduced in the Vocational Higher Secondary Education for attaining the objectives of the courses in this system, we can adopt the following strategies.

1. Assignment
Assignment is some specific work assigned to the learners as a part of their academic enrichment. There are learning activities undertaken as a continuation of class room activities to realize the curriculum objectives to a broader extent. They should be completed in time bound manner. They help to lead learner to higher level of learning from the present status. Challenging assignment can motivate the learners to involve in group dynamics and achieve fruitful results. The teachers may act as a guide. Assignment may be given on individually or on group basis. Assignment includes preparation of notes, preparation of charts, models, collection, of materials from institutions etc. Assignment develop skills of reference, observation, enquire reporting etc. It ensure the effective utilization of leisure time of the learners.

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2. Seminar
Seminar is a learning strategy involving an in-depth analysis of specific topic, preparation of a paper and presentation. The paper is presented by either one learner or a group of learners. After the presentation, there will be a discussion/ interaction in which all the learners can participate. The learners get an opportunity to clear their doubts and make clarification. Seminar helps to develop communication skill and overcome stage fright.

Stages

1. Selection of Topic
The topic of seminar should be relevant to the subject of study

2. Assignment of topic to individuals learners or team

The topic may be assigned to each learner or subtopics may be given to a group of learners

3. Collection of relevant information

Information required for seminar can be collected from various sources namely books, magazines, internet, institutions, place and persons.

4. Preparation of draft paper

Based on the information collected the learner may prepare a draft paper and submit it to the teachers for comments. Revise the draft paper based on the comments of the teachers. The required draft is submitted for approval.

5. Program Scheduling
The date, time and venue of the seminar is fixed. A seminar leader may be selected from the learners

6. Seminar paper presentation

The learner/ learners shall present the paper in the seminar. The teacher may function as the moderator during the initial stages.

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7. Discussion / Interaction
A number of respondents from the learners make comments on the topic. This will be followed by a general discussion. All the group members should actively participate in discussion.

8. Summing up deliberation
The moderator sums up the deliberation

9. Evaluation / Feed back

Both teachers and learners evaluate the programme.

10. Preparation of final report

A final seminar report is prepared covering all the additional points discussed and consolidated.

3. Panel Discussion
It is a learning strategy in which a panel of experts are allowed to discuss a specific subjects under the control and direction of a moderator. Subjects can be divided according to the number of panel members. Number of panel members are fixed according to subdivision of points in the subject. Relevant materials and hand out may be given in advance to the learners. The monitor or moderator introduces the subject of discussion and invite a panel member to start the discussion. Each panel member is invited for discussion afterwards. After briefing by the panel members the question are raised from the audience and the panel members give suitable answer to them. A report should be submitted by each learner to the moderator.

4. Project
Project is a self-learning strategy which can exert great influence on the overall development of the learner. Project as learning strategy is to be selected where a problem arises in any part of the curriculum. The learners may be divided into groups and assigned different aspects of the problem. Each group works independently .Specific aspects of the problem such as data collection, classification, analysis, report preparation and presentation is to be undertaken by each of the members. Even though the work is

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divided among the members, it must be ensured that the execution of each and every activity is done with the active participation of all. After analyzing data collected from different sources, the learner arrives at a conclusion, which helps to solve the problem. There by learner learns the topic though his own activity. The other advantage of this learning activities is that it helps the learner to scientifically handle any problematic situation. It helps in the development of scientific thinking and thereby builds up the learners aptitude for the subject.

Stages of the project

1. Selection of a topic
The project selected should be related to the curriculum and it should not be a project for projects sake. The topic or problem should arise from the curriculum.

2. Planning of the Project

a. Hypothesizing: Hypothesizing means making assumptions based on the available primary information. b. Methods and Techniques : The methods and technique should be based on the aim and Hypothesizing of the project. The nature of the project, suitability of the tools, and the methods of learning should be related to each other.

3. Collection and Tabulation of Data

The data may be primary, Secondary or teritiary. Either census or sambling method can be used based on the objective of the project. Suitable questionnaires are to be prepared for the collection of primary data.

The collected data is to be classified and tabulated so as to make it easily understandable.

4. Analysis of data and formulation of conclusion

By analyzing the data, the reliability of the hypotheses can be examined. Preparation of graphs and diagrams and maps will positively help the analysis. The similarities relations and differences gathered from the

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analyzed information would tell whether the hypotheses should be accepted or rejected.

5. Preparation of Report
The cover page should have the title of the project, the period of study, name (s) of investigator / group, and the address of the school. The report should be structured in the following order. 11.Title 12.Preface 13.Hypotheses and aim 14.Methodology 15.Sources of data 16.Analysis and conclusion 17.Suggestions (if any) 18.References 19.Appendices (Questionnaire, Observation schedule, check list Etc .)

6. Presentation of the Project

When the project is presented, the learner is being evaluated and accepted. During presentation ideas are shared with others. The project method promotes scientific self learning and makes him capable of solving the problem arising in real life situations.

5. Debate
Debate is a hot and interesting learning activity. A debate can be organized only on a topic on which there is difference of opinion. Therefore a topic suitable for debate has to be found. Debate can be on rele vant topic that is different and interesting to the learners and relevant to society. Learners with different opinion have to be identified for discussion. Those who have similar opinion should join together to form a side. Those who hold the opposite view with form the other side. It would be good to write down the topic of the debate and displayed in advance. There should also a person to control debate.

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Learners should be given opportunity to absorb the ideas obtained from discussion and debate, develop the idea through reading and study, and to express them through writing or other means

Stages of Debate
1. Topic Selection 2. Selection of panels keeping in balance with intelligence, gender etc. 3. Selection of moderator 4. Collection of information guided by the teacher 5. Conducting the debate under the control of moderator by avoiding any sort of personal conflicts 6. Conclusion by the moderator expressing his final version or verdict.

6. Case Study
A case may be a person, institution or a community case study is an in depth analysis of an actual event or situation. It presents real pictures of situation with facts, objective information or data learners analyse the case to interpret, predict and resolve issues associated with it. The case study provides the learner an opportunity to analyse and apply concepts, data and theory taught from the class. Learners can work individually or in groups. By studying realistic cases in the classroom, learners develop new insights into the solution of specific on the job problem and also acquire knowledge of the latest concepts and principles used in problem solving. Case may be presented by the teachers or may be provided in print form. A simple case study may have the following steps 7. Collection of data 8. Conversion of data into information 9. Analysis of the case in groups 10.Presentation of the finding by each group leader. 11.Evaluation

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In addition to the above mentioned learning strategies there are many other learning strategies which can be used in appropriate situations to enrich learning process such as Problem solving, Role play, Brain storming, etc

7. Brain Storming
This is the best method for solving creative problems. It facilitates generation of ideas quickly. Rules for conducting Brain storming.

12.

No response is wrong - welcome every

response
13.Welcome as many responses as possible 14. No criticism is allowed 15.allow to work on others idea

Steps in Brain storming 16. Presentation of the problem

17.Provide relevant information 18.Record the ideas put forth by the participants 19.Combine similar ideas 20.Evaluate each idea and solution 21.Selection of the best solut If brainstorming is used as an instruction strategy, the last step is not essential

8. Discussion
Discussion is essential for the learner to share new finding, ideas and conclusion at each stage of learning with follow learners and teachers. In general discussion the teachers should guide the discussion though questioning and summarizing. The major steps involved are

22.

Introduction initiated by the teacher

23.Development of discussion by giving lead points and follow up interactions

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24.Transaction stage in which the key points are reviewed by the teacher and 25.Summarizing stage in which teacher provides additional support materials to ensure the achievement of the objectives

9. Group Discussion
Group discussion is an ideal method to develop Co-operation, democratic attitude, friendliness and compromising attitude which are the ultimate aims of education. During group discussion the teacher may observe each group and it needed help them to channellise the discussion towards the common objectives. All learners may be given opportunity to take part and express their ideas within a time limit. The conclusion must reached may be entered by each learners. A group representative

present this during consolidation in which the teacher may correct or add informations to ensure that all the relevant ideas have been covered

10. Collection
Collection is a continuous learning activity, which ensure complete participation of learners. The collected item may be materials, pictures, charts, ideas, data etc. Collection provides direct experience to learn. An exhibition of collected materials will help to strengthen the concept.

11. Practical works

Experimentation contains the process skill in an integrated way. In the new approach of curriculum the learner forms idea and comes to conclusion though process. The term Practical when associated with a science subject usually means an experiment. The objective of doing an experiment is to explore new ideas through investigation only. Its main purpose is to verify some principles associated with theory. The relevance of practical in the traditional science subjects ends here. But this is not the case with Vocational Practical The ultimate goal of a Vocational Education is to generate skill through continuous practice along with investigation and invention. Continuous

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practice transforms the unskilled to the skilled. This is the significance and importance of practical in the Vocational stream. Hence it is very crucial that Vocational teachers as well as instructor should understand the importance of vocational practical and act accordingly.

12. Quiz
Quiz programmes can be used as an interesting class room tool for transaction of curriculum objectives as well as to evaluate the effectiveness of transaction and achievement of learners. For conducting a quiz programme a topic should be selected based on the above objective The learners are asked to prepare question based on the topic individually. The next day / next hour the learners are grouped into 3-4 groups randomly. A question is raised by a particular team and the other teams to answer them if they can answer the question they get points for that if all other teams fail to answer the question raised by the 1St the 1 st team answer the question and explain team if the background

necessary. All the teams get equal number of chance to ask the question . Time limit is also prescribed for the conduction of the programme. The team who scores maximum points wins All the participants can make notes on the questions asked answer and their explanation which help them in learning

13. Models
Models are used in learning process. It enhanced the leaning experience. This is based on the seeing is believing. It helps the learner a chance to see feel the model presented . Still models and working models help the learners to understand the structure , working principles, actual operation etc. Several steps are involved

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26.

Feeling the problem

27.The teacher should plan the type of model according to curricular objectives. 28.Grouping the learners 29.Briefing the tasks - Aim - Need - Material required - Source & Materials - Cost of materials - Division of Labour - Guidance - Fixing of a time limit Presentation by each group about How the models were prepared Details of - Expenses working and principles

Finally Documentation of the process

Evaluation - By the other groups Later a consolidation by teachers is to be done.

14. Games
Class rooms can be made attractive by introducing different types of games. Games should be interesting as well as informative some of suitable games are

30.

Odd man out

31.Cross word puzzles 32.Match the following 33.Aswamedham. 34.Link game Answer using clues.

15. Survey
This strategy involves collection of data from the group under study (book, person, materials etc.) It develop the social interaction and

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communication ability of the learner. It also provide a scope for discovery learning.

Step involved in survey

- Objective of survey - Selection of area for survey/sampling frame - Selection of survey method Direct method With help of questionnaire/schedule

- Tabulation and analysis - Considation and Presentation

16. Exhibition
It is a learning strategy by which the learner can get a chance to show the skill developed. It provides the intrinsic motivation and exposure. Exhibition item can be conducted either individually or as a group task. It can be conducted at school / Regional/State/National Level. Necessary publicity and other arrangement can be provided. Presentation, documentation participation and innovative skills of the learner can be evaluated.

17. Interview
Interview is one of the important learning strategies taking the help of a resource person. Interview is an inner view which provides opinion and information about a topic. An interview is conducted by the following steps

35.

How to introduce a problem?

36.Invite a resource person 37.Decide the questions by learners 38.Decide the time, place etc. 39.How to discuss 40.How many learners to participate

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41.Implementation of the interview 42.Conclusion (Facilitator)

Items required

1. Interview Schedule
List of question prepared by learners Selection of learners, selected names sequence of question

18. Field Visit

Field visit is an inevitable vocational tool to be implemented in vocational Higher Secondary Education. This helps the learners to familarise with the modern technologies and new situation in a different atmosphere. It provides learning though viewing. It is based on the principle that seeing is better than having. It enables the learning to retain the learned informations longer and to make the subject more interesting. It motivates and give more confidence in his/her particular vocation. The facilitation should identify suitable center/ institution/site. Get prior permission from the authorities before conducting the field visit. Give instructions to the learners for collection datas/informations/ materials/ Specimens. Teacher may assign different duties to learners by working them different groups. Each learner should take utmost care and interest during the visit. He/She should observe and interact at the center/ institution where the field visit is conducted After the visit, learner should acquire the ability to apply the ideas/concepts in his future carrier. Each learner should submit a detailed repot about the field visit.

19. Demonstration
Though demonstration we can present an item/product and emphasis its features very effectively Eg:- To understand the functioning of a computer

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43.

Material/Item/Process

44.Demonstration 45. Venue 46.Additional requirements depending upon the nature of the item Demonstration Process

47.

Introduction about the item/Material

48.Principles Working 49.Operation 50.Components 51.Merits of the item

20. Chart display

It is also one of the important teaching aid. It can be used in every activities of a learning process. Chart display is a written or pictorial representation of idea or concept. It is abbreviate brief and clear. It is prepared by study

Benefits
52.A learner gets clear idea about the concept 53.The leaner can retain the ideas in his mind for longer periods 54.A complicated idea can be simplified though a chart 55.Cheap method of teaching aid.

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PLANNING

In the context of the changing scenario in the field of education, the role of the teacher is not simply to teach the syllabi. The emerging needs of education call for facilitators role from teachers. The learning process should be learner centered and

activity oriented. Learning activities must enable the learner to develop process domain and multiple intelligence skills to their maximum extent. No matter whether these skills are attained inside or outside the classroom, but the teacher must bear in mind, the fact that they are to the accomplished within a time frame. In order to achieve this end, the teacher may make necessary plans in terms of learning activities, the time required at various stages of learning, the time required for each unit, and also the desired outcome. The plan may be hierarchically structured as: a. Annual plan covering the entire activities for the year as a whole b. Unit plan which has to be prepared just before the start of a unit. Each chapter is treated as a unit.
c. Daily plan to provide learning activities for a days learning

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ANNUAL PLAN
Term I Month June June July July August August Unit no. 1 1 2 3 3 4 Name of units Loans and advances Class work Specific loans Securities for advances Securities for advances Handling of cash Handling of cashclass work Negotiable instruments Negotiable instruments Negotiable instruments-class work Clearing house Clearing house-class work Clearing house-class work Accounting Accounting Accounting class work Hours 10 10 10 10 5 6 Total hours

51

II

September September October October October October November November December December

4 5 5 5 6 6 6 7 7 7

10 10 5 5 5 5 5 18 5 5

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III

January January February

8 9 9

Accounts of banking Companies Miscellaneous office functions Miscellaneous office functions

6 5 5 16

UNIT PLAN
II Year VHSE Subject: Banking Assistance V: Negotiable Instruments

Unit

60

Sl. No. 1

Curriculum objectives To get the concept of the meaning and features of Negotiable instruments and differentiate between them through group discussion and presentation of notes

Ideas /concepts Meaning of negotiable instruments as per Negotiable Instruments Act Characteristics definition of Bill of Exchange, Promissory note and Cheque as per Negotiable Instrument Act and their features. Differences between Balance sheet and Promissory Note, Bill of Exchange and cheque, Promissory Note and cheque and specimen forms of, Balance sheet Promissory Note, cheque Meaning of bank drafts, differentiate between Bank draft and cheque Specimen form of Bank draft

Activities Group discussion classification Collecting specimen forms Recording

Materials Text books Reference: books Specimen forms of negotiable instruments.

2.

3.

To get an idea about the meaning and features of bank drafts and differentiate it from cheque through discussion, specimen forms and prepare notes and charts. To develop an idea about meaning and advantages of crossing of cheques and to identify different kinds of crossing through discussion and by giving practicals with the help of specimen forms and presentation in the form of notes and charts.

Group discussion Collection recording

Meaning of crossing of cheques, advantages of crossing , general crossing special crossing, double crossing, opening of crossing

Discussion Classification Collection Practically doing the crossing methods Recording

Text books Reference Books Specimen forms of Bank drafts Text books Ref.books Specimen forms from banks

4.

To develop an idea about the meaning features and kinds of endorsement through discussion and seminar and prepare report.

5.

To get an idea about the meaning of the dihonour of

Meaning of the term endorsement and its features, blank endorsement, full endorsement, restrictive facultative, sans fraise, sans recourse conditional endorsements Meaning of dishonour, circumstances under which a

Discussion Seminar Collection Practically done

Text books Reference: .books Specimen forms

Discussion Collection

Text books Reference

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6.

cheques, the reasons for dishonour of cheques and the meaning of MICR cheques through discussion and prepare notes. To examine the meaning of paying banker and collecting banker and analyse their duties through discussion and prepare notes

cheque can be dishonoured, meaning of MICR cheques

Recording

Books banks

Meaning of paying banker , meaning of collecting banker Duties of paying banker, duties of collecting banker

Discussion

Text books Reference books

DAILY PLAN Class-XII Date---------Subject: Banking assistance Unit.1 Time1 hour Curriculum objective To identify different types of advances through discussion, seminar and prepare notes and charts.
Activities Strategy used- discussion and seminar Activity 1 discussion Suppose you are in need of money for purchasing a motor cycle. What will you do? Borrowing money from your friend Take a loan from bank Selling the gold ornaments. Suppose you intends to take bank advances: How is it possible? Mention the types of advances? Activity II-Seminar All the students are grouped into four and asked to collect information about the types of advances and the features and procedures of obtaining advances through a seminar and to present the seminar report in group wise. For seminar the topic is divided in to four : Loan Over draft Cash credit Feed back All students are participated in the discussion All the students were able to get an idea about the types of advances.

A gued response is received from all students except Ajesh and Rajesh.

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Discounting and purchasing of bills

Note: The rest 4 hrs can be utilized for preparation of the paper and its presentation.

EVALUATION
Evaluation is a systematic process of collecting, analyzing, synthesizing and interpreting evidences of learners progress and achievements both in cognitive and non-cognitive areas of learning. Evaluation has to play significant role in making the learning process more effective. It provides diverse experiences to the learners, keeping in view the skill to be attained continuously by them. As the curriculum is based on a particular vocation in the selected stream is the most important part and it should be evaluated accordingly. Technical skills, interest and devotion in the field, communication skills, organizational and presentation skills are to be evaluated. Evaluation of the personal and social qualities also should be done. So the evaluation should be continuous and comprehensive.

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Continuous and Comprehensive Evaluation (CCE)

Our traditional evaluation method measures only the memory and recollection capacity of the learner. To eliminate/ overcome the limitation the evaluation should be done on multi dimensional ways by measuring multiple intellectual capacities of the learner. So it is better to evaluate the learner in a continuous and comprehensive manner. CCE helps the learner to understand and develop adequate his own progre ss and to develop adequate strategies for further improvement.

Merits.
Assess the all round development of the learner on a continuous basis through a variety of activities. Effective feed back is possible Remedial diagnostic teaching is possible Process as well as products are assessed

Components of evaluation
In order to flourish continuous and comprehensive evaluation we make use of the following components of evaluation.

I Continuous Evaluation (CE)

In the activity based classroom teacher provides variety of experiences through varied tools. Brain storming sessions, group work, discussions, project, seminar, debate, field visits, practical works etc., will really flourish joyful learning. By considering the practicability and the nature of the subject, the following tools are advised for continuous evaluation. A series of learning activities are grouped into five major thrust areas as follows

1. Investigative activities
Activities which create a spirit of enquiry, investigation and a mind for research in the learner belong to this group. for example; Study project Case study Field study

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2. Interactive activities
Activities which improve the communication skill, activities of sharing ideas, etc. For eg: Seminar Panel discussion Debate Group discussion

3. Assigned task
Activities assigned to the learners to enrich/ strengthen the concept and ideas. For eg: Assignment Collections

4. Performance task (Tests)

Activities related to the achievements of the learner. For eg:
5.

Class test (oral/ written/ performance test) Quiz Interview Open book Examination Group testing
Practical based Activities

Preparation of working model Album Improvisation From the above 5 group of activities, the teacher has the freedom to choose

any three areas for evaluation purpose. However the teacher must make sure that the learners should undergo activities related to all the five areas during the course of the two years.

(1) Study project

Sl.No 1. Stages Planning Criteria Relevance of the study Identification of problem Ability to select appropriate Score 4/3/2/1

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2.

Data Collection

3.

Analysis and Inference

4.

Report presentation

5.

Awareness of the content

tools, ability to select suitable bearing method. Ability to collect sufficient and relevant data. Ability to classify and arrange data for analysis. Reliability and authenticity of the data collected. Ability to analyses the data Systematic arrangements. Ability to draw inferences based on analysis. Ability to give suggestions based on inference. Ability to present in logical and sequential order, authenticity of report, time bound completion. Knowledge of content and process. Ability to analyze data. Ability to justify inference. Ability to explain. Strategies and methods adopted.

4/3/2/1

4/3/2/1

4/3/2/1

4/3/2/1

(2) Case Study

Sl. No Criteria Score

1. 2. 3. 4. 5. 3 1. 2. 3. 4. 5. 4. 1. 2. 3. 4.

Identifying the problem Approach to the problem Time bound Action Analysis of the problem Problem solving / Reporting Field study Attitude and readiness towards the task Capacity for Observation Data collection Application of ideas Documentation / Recording Assignment Awareness of the content Comprehensiveness of the content Systematic and sequential arrangement Observation/suggestion/views/judgment/evaluation

4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1

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5. 5. 1. 2. 3. 4. 5. 6. 1. 2. 3. 4. 5. 7. 1. 2. 3. 4. 5. 8. 1. 2. 3. 4. 5. 9. 1. 2. 3. 4. 5. 10. 1. 2. 3. 4. 5. 11.

Preparation of note and time bound completion of each stage of work Seminar Planning and Organization Collection and data / content Observation / appraisal and clarity Content knowledge Presentation Debate, Panel discussion Readiness to participate Depth of subject knowledge Communication skill Ability to justify the stand Presentation Group Discussion Readiness to participate Depth of subject knowledge Communication skill Ability to justify in a democratic way Leadership quality Interview Planning Preparation of Questions Communication skill Participation Report preparation Collection Collection of materials/Documents Relevance and comprehensiveness Presentation Awareness of the content Time bound progress of work at each stage quiz Preparation of questions Relevance of question Presentation Active participation Time management Class test Class test should be oral/ written/ performance. It is to be evaluated on the basis of specific scoring indicators

4/3/2/1

4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1

Terminal or Term End Evaluation (TE)

It is the written form of evaluation aimed at evaluating the facts, concepts and ideas gained by the learner. The test should not be aimed to evaluate the memory

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alone. Questions are framed in such a way that the learners are able to apply different mental process while answering. The Terminal Evaluation questions give more emphasis on application, analysis and synthesis level. The maximum scores for TE is 80 and the minimum is 24 (30%). The questions should be formulated taking into consideration the time required to read, think, understands and write answers. These aspects should be considered while fixing the scores also. To avoid blind guessing, multiple choice and application level questions may be mixed. The total number of questions may vary from time to time. All the questions should be based on the curricular objectives. Open ended questions but the choice questions also should be based on the same curriculum objectives.

Practical Evaluation (PE)

The goal of vocational Education is to generate skills through continuous practices along with investigation and innovations. Continues and comprehensive practice transforms the unskilled learner to a skilled one. This is the importance and significance of vocational practicals. PE is done to evaluate the practical skills achieved by the learner in the concerned vocational subject Total Scores for PE is 150 and minimum is 60 score ie 40%. Practical Examination is conducted for a batch of 8 learners having 6 hours duration. Practical evaluation should be done taking into account the whole practicals included in the curriculum since Learning of practical skills is a continuous process through out the period of study.

Distribution of scores of P.E Subject Typewriting English-I paper Typewriting English-II paper Computerized Accounting Viva (Vocational Theory Based Practical) Total

Score 20 30 50 50 150

SCHEME OF EXAMINATION 68

Typewriting English - I Paper (Speed) Maximum Score: 20

140 Hrs.

Typewriting on one side of the paper an ordinary printed passage with or without heading and few figures if necessary and not exceeding three paragraphs consisting of 2250 strokes at the rate of 45 w.p.m. in double line spacing with 10 degrees margin on the left and 5 degrees on the right. Note : 5 strokes will be counted as a word. Each depression of a character key or the space bar will be counted as a stroke. No stroke is counted for paragraphs or depression of shift key. Two strokes are counted after a full stop, interrogation mark, colon and exclamation mark. One stoke before and one stroke counted

after and semicolon. One stroke before and one stroke after brackets. 2. Typewriting English - II Paper 140 Hrs. Maximum Score: 30 Time : 2 Hours This paper is intended to serve as a test of the candidate, knowledge of spelling, punctuation and common abbreviations and his ability to present in proper form the fair copies for signature. This consists of any 5 questions from the following: 56.Type and advanced statistical statements with vertical heading (3 Score). 57.Type private letters/ business letters/D.O letters/Official Letters/letters from autonomous bodies and professional letters know how to take carbon copies. (8 Score) 58.Type Government Orders /Proceedings/Circulars/Notices and Notification. (6 Score) 59.Type Balance Sheet/Profit & Loss Account in two separate sheet of paper so as to match together. (10 Score) 60.Type Judgment /Agreement/display/Notice/Advertisement /Programme and Invitation with ornamental borders. (3 Score)

Computerised Accounting

140 Hrs.

Max.Score : 50 Overview of Computer system

Fundamentals of Computerised Accounting System

69

Concept of Grouping of Account Classification of Accounts, Maintaining the hierarchy of ledger.

Application of Computers in Financial Accounting

61.Accounting procedures used in practice for recording cash, bank and journal transactions using appropriate vouchers. 62.Preparation of ledger accounts, cash book, bank book, bank reconciliation statement. 63.Trail Balance, Final Account, budget, Sales Tax calculations, Inventory control, Pricing and Movement of Inventory, Valuation of stock, Cost centre, Cost units.

Accounting Applications Using Electronic Spreadsheet

64.Payroll Accounting 65.Loan Repayment Schedule 66.Depreciation.

Practical Evaluation - 150 score

A learner of commerce based Vocational Courses has under go practical work on type writing and computersied accounting. There for practical Evaluation is important for learning effectives indicators for P.E. varies according to the nature of the course bution of score of P.E The Maximum score fixed for P.E is 150. The minimum score to be obtained is fixed at 40% that is 60 score Type Writing English Paper 1 Type Writing English Paper II Computerized Accounting External Practical - Viva VOCE Total 20 Score 30 Score 50 Score 50 Score 150 Score 20 Score

Indicators and scores for P.E

Typewriting English 1 Mistake are

Spelling mistake , omission , over typing wrong spacing etc are treated as a stroke mistake Five stroke mistake are treated as a full mistake Full mistake Score %

70

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

100 98 96 94 98 90 86 82 78 74 70 64 58 52 46 40

Typewriting English Paper II 30 score

Item Statement Private letters/Business letters / Official letters (With carbon copy) G.O/ Proceedings, circulars, Notices, Notifications Balance Sheet / Profit and loss account Display /advertisement/ Judgment etc Total Computersied accounting 1. Preparation of final account 2. Bank reconciliation statement 50 score 15 score 10 score Evaluation points Neatness Proper aliment, Systematic arrangement, Punctuations Neatness, format, Quality of carbon copy, Contents Neatness, Alignment, Punctuations Neatness, Systematic Arrangement, alignment Neatness, border design Content Score 3

(Mistake in stroke 5 x full mistake)

8 6

10

3 30 Score

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3. Pay roll preparation 10 score 4. Sales tax / Budget 10 score 5. Inventory / Cost centre / cost unit 5 score Total 50 score External practical cum viva voce (50 score )

1 Practical 25 score
a) Procedure writing - 10 score (Write procedure for pay role / company creation / creating a group of accounts b) Handling of equipments - 5 score (Replacing of ribbons, precautions to be followed in shifting Typewriting machine from one place to another) c) Assignment based on vocational subject - 10 score 67.Record 10 score Type written and computer print out of practical works 68.Viva Voce 15 score (Based on vocational subject) Practical examination is conduct for a batch of 8 learners on the time of examination is 6 Hrs. A learner must secure C grade for Typewriting, computerized accounting and external practical together

Vocational Competency Evaluation (VCE)

Vocational Competency Evaluation is to evaluates the vocational skill and aptitude developed by the learners during the learning process. This is a system to judiciously evaluate the required value addition and consequent capacity building in the concerned vocational curriculum. The vocational education is aimed at developing interest, skills and devotion in specific vocational fields. As other evaluation components like CE. PE and TE cannot assess the vocational competences and professional skills, acquired by the learners an internship evaluation (IE) components has been introduced to meet this requirement. Internship evaluation should be done based on the following components like regularity and punctuality, value addition and capacity building.

72

1. Regularity and punctuality

Regularity and punctuality has vital role in vocational education learning continuous process, the regular presence of the Learner is must for attaining maximum efficiency.

2 Value Addition
Value addition is the qualitative measure of the learners interest, devotion perseverance and efficiency. Value addition can be evaluated through conducting field visits/ vocational survey. The experiences gained through field visit / vocational survey incre ases the level of intrinsic motivation and positive attitude towards the vocational field and thereby increase his value as a semiprofessional.

3. Capacity Building
It gives a quantitative measure of the learners skill in graded area exposure. Capacity building can be evaluated through conducting the following activities. 69.OJT / Simulated experiment 70.Performance camp/exhibition/clinic 71.Performance PCT/Service cum Training center. These components help the learner to practice the acquired skills in the real situation and thereby increasing self-confidence and promoting self reliance.

Vocational Competency Evaluation Indicators

No 1. 2. 3. Items Regularity and punctuality Scores 10

Field visit / survey (anyone) vocational 20 project OJT/Simulated experiment performance Camp/exhibition/clinic Performance PSCTC (anyone)/Practical 20 skills TOTAL 50

72. Regularity and punctuality can be assessed by using attendance of the learner and time bound completion of tasks. It is evaluated by using 5 point grading system.

Rating Scale
Sl.No Items 1 2 3 4 5

73

1.

Regularity

Never regular Never punctual

After regular Often punctual

Equally regular Usually Punctual

2.

Puntuality

Most of the time regular Most of the time punctual scores

Always regular Always punctual

item Regularity and punctuality Value addition

Evaluation indicators

Score 10

Field visit Attitude and readiness towards the task Capacity for observation Data collection Application of ideas Documentation/recording Or Survey Planning Data collection Consolidation of data and analysis Drawing inference Reporting OJT/Simulated experiment Involvement/participation Skills in doing work/ c ommunication skills Time bound action Capacity for observation, analysis and innovation Documentation, recording and display Or Performance in camp/exhibition/clinic Ability for planning and organizing Mastery of subject Ability for communication Innovation Involvement/social commitment Or Performance in production/service cum training center (PSCTC) Mastery of vocational skills Managerial capacity Promoting self confidence

4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 20

20

Capacity Building

4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1

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Innovation approach Promoting self reliance

4/3/2/1 4/3/2/1

Grading
Continuous Evaluation is essential for activity based learning process. But the skills achieved by the students cannot be completely measured in terms of marking system. Marking system proved unscientific in evaluating the growth and development of individual students both in cognitive and non-cognitive areas. Classification of students in terms of marks were both unjust and in defensive. It also creates mental stress and strain among the students. To overcome this limitation, a popular mode of evaluating students performance known as grading system has been evolved. It is quite extensively used all over the world. At the Vocational Higher Secondary Stage, it is desirable to use a 9 point scale absolute grading to co-ordinate and record the evaluation. After giving the score, they are changed into percentages and appropriate letter grades are awarded corresponding to each percentage. This system is termed as absolute grading. The score percentage and corresponding letters grade is given below;

Score in percentage
90-100 80-89 70-79 60-69 50-59 40-49 30-39 20-29 Below 20 A+ A B+ B C+ C D+ D E

Grade

75

1 LOANS AND ADVANCES

Introduction

Lending of funds constitute one of the important businesses of a bank. The major portion of a banks fund is employed by way of advances. This is because advances form the chief source of profits for a bank. Further, advances enable trade, commerce, industry and agriculture to meet their financial requirements. Banks generally utilize their funds

through loan, overdraft, cash credit and discounting of bills. Curriculum Objectives To collect information about different types of advances through discussion, seminar and present it in the form of notes and reports. Collecting information regarding the principles of lending from banks, reading mutuals, internet etc and develop an idia about through discussion, assignment etc and prepare notes. Syllabus Loans and advances: Meaning of the term loanconsideration for sound lending-types of loans, cash credit, overdraft, bills discounted and purchased. Through the chapter (10 hours)
76

For convenience this chapter is divided in to 4 heads. 1. Meaning and types of loan hours) 2. Meaning and features of overdraft, cash credit, discounting and purchasing of bills (3 hours) 3. Difference between loans and overdraft, loans and cash credit, cash credit and overdraft, discounting of bill and purchasing of bill (2 hours) 1. Meaning and types of loan: Suggested strategy: Group discussion Students have acquired knowledge about the meaning of loan and different types of loans. Lead points The type of advance which is expected to be granted and repaid in one lump sum. Name the loan which is granted for a period exceeds one year. Types of loan granted for the acquisition of fixed assets. Which type of loan is granted for meeting working capital requirements? ACTIVITY I (3 hours) (2

4. Consideration for sound lending-principles of sound lending

77

Types of loan Short term Medium term Long term ACTIVITY 2

Purpose Working capital requirements -------

Duration Less than one year ---------

Expected outcome
A note on meaning of loan and different types of loan II Meaning and features of overdraft, cash credit, discounting of bill and purchasing of bill (3 hours)

Suggested strategy seminar

It is always advisable to conduct a discussion before proceeding to a seminar.

1. Planning stage S Types of advances Nature Purpose t Overdraft Temporary ----Cash credit ----Business purpose u Discounting of bill --------d Purchasing of bill --------ents should be grouped and topic can be assigned in the following manner. Group I overdraft cash credit discounting and purchasing of bills

Group II Group III

2. Data collection stage Broucheres Banks

78

Handouts Website of banks

Collected data must be shared among the respective group in the classroom and draft paper must be prepared to cover all important points. 3. Presentation stage The leader of the group can present the report and after presentation, doubts, suggestions, questions etc raised by the observers must be properly answered. It is to be noted that, all the members of the group are equally responsible for clearing such doubts. The moderator will conclude the session by expressing his views. Evaluation

Expected outcome Seminar report Each and every individual student must prepare a seminar report containing all the points. III Difference between loans and overdraft, loans and cash credit, cash credit and overdraft, discounting of bill and purchasing of bill (3 hours)

Suggested strategy-Discussion
The teacher can lead the discussion by emphasizing the following points. Advance granted on a separate account Advance granted only to current account holders Repayment of advances by installments. Using advance account as a running account.

Expected outcome
Notes showing difference between loans and overdraft, loan and cash credit, cash credit and overdraft, discounting of bills and purchasing of bills. IV Consideration for sound lending/ principles of sound lending (2Hrs)

Suggested strategy-Group discussion

A group discussion can be initiated to develop a general understanding about the principles of sound lending.

79

Lead points
Discussion may help the students to identify the following Safety Security Purpose Liquidity Profitability National policy and objectives. Diversification of risks Suppose if you want an educational loan of Rs. 2,00,000/-. Do you think that, the bank will give such amount without any guarantee? Why do bank insist for such guarantee? Whether banks consider the credit worthiness of the borrower while granting advances? Can a bank satisfy the various needs of the customer by providing just single type of loan? Usually, for what purposes, faules grant loans? Why is it said that Do not keep all eggs in one basket

Expected outcome
Notes showing all the above matters.

C. E. POSSIBILITIES
Class test Seminar Assignment Practical work

80

T.E. Questions
1. Mr. Jobi wants to purchase a colour television worth Rs.20,000/-. He has only Rs. 10,000/ - in his hand and he decided to take an advance from a bank for meeting the balance amount. Which type of advance he would take? What are its features?

2. Arjun, a current account holder of Syndicate bank wanted to withdraw more than the amount credited to his account. What type of a facility is this? Explain the features of that facility?

81

UNIT ANALYSIS I. Loans and Advances

Sl. Objectives No. 1 To identify different types of advances such as loan overdraft, cash credit and discounting of bill 2 To differentiate between loan and overdraft, loan and cash credit, cash credit and overdraft, Discounting of bills and purchasing of bills 3 To develop an idea about the principles of sound lending Concepts/ideas Meaning of loan, types of loan, meaning and features of overdraft, cash credit, discounting and purchasing of bills. Activity Seminar Discussi on Material Text books Reference books News paper Evaluation Acquired concepts Participation in discussion, Preparation of notes and charts, Seminar report.

Difference between : loan and overdraft, loan and cash credit, cash credit and overdraft, Discounting of bills and purchasing of bills

Seminar Discussi on

Text books Brouchers Periodicals

Acquired concepts Preparation of notes and charts

Safety, liquidity, Discussi profitability, purpose on security Diversification of advances, National interest

Text books Reference books

Acquired concepts Discussion, preparation of notes

82

2 SPECIFIC LOANS
Introduction
Students have already acquired knowledge about the different types of loans and advances. In the past, certain sectors such as agriculture, small scale industries, cottage and village industries, etc were completely avoided. In order to get proper attention to these sectors and bringing the banks under the control of government, banks were nationalized. After nationalization there is a shift in the bank credit from large scale industries to these sectors such as agriculture, small scale industries, export designated as the priority sectors.

Curriculum Objectives
To identify the types of specific loans and to analyse these loans through a project and discussion and prepare reports based on it. To get knowledge about the concept of priority sector advances through discussion, seminar and prepare report. To get practical knowledge about the duties and responsibilities of a banker in disbursing loan through discussion, institutional field visit and presentation of notes.

Syllubus
Specific loans-personal loans-housing loan-consumer loan-priority sector advances-loans for weaker sections, small scale industries, agriculture, self employed and professionals etc-gold loan loan against hypothecation-duties and bank in disbursing loan responsibilities of (10 hours)

Through the chapter

For convenience this chapter is divided in to 3 heads. 1. Specific loans - personal loans, housing loans, consumer loans, (3 Hours)

2. Priority sector advances loans for weaker sections, small scale industries, agriculture, self employed and professionals, gold loans loans against hypothecation (4 Hours) 83

3. Duties and responsibilities of bank in disbursing loan 1. Specific loans Personal loans, housing loans, consumer loans Suggested strategy: Project

(3 Hours) (3 Hours)

Mr. Anil wants to build a house in his own property. He wants to take housing loan from a bank. He is anxious to know the procedure of taking loan and the rate of interest charged by various commercial banks. Which bank would he prefer to take the loan?

Planning
Proper planning should be made through a discussion in the class regarding the objectives of study, title of study, how to collect data, what is to be collected, place of visit etc.

Data collection
Suggested tool A schedule showing the details of Rate of interest Method of calculating interest Mode of repayment Estimated monthly installment Securities to be offered Documents to be executed Collect various interest rates and the procedures to be followed in getting the loan from various banks. Hidden charges if any Processing fees.

Preparation of report
Individual reports are to be prepared by every students. Similar project can also be undertaken for other specific loans such as personal loans and customer loans. 84

Expected outcome
Project report showing the procedure of obtaining housing loan Interest rates of different types of banks. (4 Hrs )

II Priority sector advances

Suggested strategy: Seminar

A preliminary group discussion can be initiated with the help of the following lead points. Planning stage At the planning stage students are grouped and each group is assigned with the following sub topics Each group should collect data relating to priority sector advances from reference books, journals, Text books, and after discussion a draft paper can be made. After presentation each student must submit a detailed seminar report. Expected outcome : Seminar report. III Duties and responsibilities of bank in disbursing loan. 85 Group A Group B Group C Group D Agricultural loans Loans to Self employed persons and professionals Loans to small scale industries Small transport operators and loans against hypothecation Will all banks provide finance for agricultural purposes? Are all agricultural purposes eligible for loans? Is there any difference in the interest rate of an agricultural loan and a personal housing loan? Can a bank provide financial assistance for self employed persons? Can professionals like doctors, engineers, lawyers etc get advances from banks?

Suggested strategy: Field visit Planning Proper planning should be made with regard to the date, time, institution, and the person to be interviewed and preparation of interview schedule.

Interview schedule
A discussion in the class in to be carried out to prepare interview schedule. Following points are to be considered while preparing interview schedule. Procedure of giving application for loan Amount of advance Margin Securities offered Purpose of advance Rate of interest Repayment of loan Return of security

Expected outcome
Notes showing the duties and responsibilities of a banker while disbursing loan.

CE possibilities
Project Class test Seminar Assignment Practical work Field study

TE questions
1. Whether margin is to be retained for an advance against gold ornaments? Why? 2. The attitude of bankers towards securities for advances has not changed. Whether this observation is correct.

86

87

UNIT ANALYSIS II Speclic Loans

Sl.No.
Objectives

Concepts/Ideas To identify the types of specific loans Personal loans Housing loans Consumer loans To get practical knowledge about the concept of priority sector advances Meaning and features of Personal loans Housing loans Consumer loans Meaning of loans to weaker sections, small scale industries, agriculture, self employed and professionals, gold loan, loan against hypothecation Duties and responsibilities of a banker in disbursing loans

Activity Discussion Project

Materials Text books Reference books Handouts

Evaluation Acquired concepts Participation in discussion project report Acquired concepts Participation in discussion Seminar report Notes

Discussion Seminar

Text books Reference books

To get practical knowledge about the duties and responsibilities of a banker in disbursing loans.

Field visit Discussion

Text books, Brochures, formats

Acquired concepts Participation in discussion, field visit report Notes

71

SECURITIES FOR ADVANCES

Introduction
Lending of Funds constitute one of the main businesses of a bank. The business of lending carries certain inherent risks. As a banker has to lend the funds mobilized by way of deposits from customers, he cannot afford to take undue risks in lending. While providing the loans and advances a banker follows, a very cautions policy and conduct his business on the basis of principles of sound lending, in order to minimise the risks. The security offered for an advance is a cushion or insurance against the default of repayment of advance by borrower. Therefore, the importance of collateral securities can hardly be exaggerated. Except for strong and convincing reason, a banker should not grant advances without collaterals or tangible securities. From the point of view of securities, bank advances may be classified as unsecured or clean advances and secured advances.

Curriculum Objectives
To get an idea about the meaning, importance and features of securities for advances and analyze the merits and demerits of different types of securities through discussion, arrangement etc and prepare notes. To get a practical knowledge about the precautions to be taken by a banker while accepting securities for advances through discussion, interview with a bank manager etc and presentation of report. To develop the concept of the term lien and to classify types of lien through discussion etc and draft notes on it. To develop an idea about the meaning and features of pledge and hypothecation and differentiate between them through a discussion etc and prepare notes. To acquire knowledge about the meaning, features and kinds of mortgages through discussion etc and prepare notes.

72

Syllabus
Securities for advances meaning kinds of securities: Term deposit receipts, Gold, Vehicles, Land, Buildings, Goods, documents of titles, government securities, semi government securities, Corporate Securities, Insurance policies, and other securities Modes of Charging Securities: Lien, pledge, hypothecation, mortgage. (15 Hrs)

Through the Chapter

1. Meaning, features and kinds of securities FDR, Gold, Vehicles, Land & Buildings, Goods, Documents of title, Government securities, Semi Government securities, Corporate Securities, Insurance Policies. (5Hrs) 2. Precautions to be taken by a banker while granting advances against the securitie s like FDR, Gold, Vehicles, Land & Buildings, Goods, Documents of title, Government securities, Semi Government securities, Corporate Securities, Insurance Policies. 3. Meaning, Features and types of lien. 4. Meaning and features of pledge and hypothecation - Differences between them. equitable mortgage. 1. Meaning, Features and kinds of securities (5Hrs) (1Hr) (2Hrs) (2 Hrs) (5Hrs)

5. Meaning, features and types of mortgages, Differences between legal mortgage and

Suggested Strategy Discussion

A discussion may be initiated for understanding the meaning and features of different types of securities and also the merits and demerits of these securities. Lead Points Name the receipt issued by banks while accepting fixed depos it. Gold loan Vehicle loan Immovable properties Goods Name the receipt issued by railway authority acknowledging receipt of goods Receipt issued by Motor Transport Company Certificate issued by warehouse keeper. Order issued by owner of goods Receipt issue d by Dock company Receipt issued by shipping company 73

Government and semi government securities Corporate securities Document issued by the insurer to the insured.

From the above discussion students get a clear idea about the meaning, features, merits and demerits of different kinds of securities.

Activity Name of Security Bill of Lading Delivery Orders Warehouse keepers receipt Dock warrant Document issued Shipping Company ----------------------

Expected Outcome
Notes based on different kinds of securities. II Precautions to be taken by a banker while granting advances against different kinds of securities. Suggested strategy: Discussion and Interview A general discussion can be initiated to develop general idea about the precautions to be taken by a banker while granting advances against different types of securities. (5 Hrs)

Interview
Planning stage proper planning should be made with regard to the date, time, whom to be interviewed , where to be interviewed etc.

74

Interview Schedule
A discussion in the classroom is to be carried out to prepare the interview schedule. Following points are to be considered while preparing interview schedule. Nature of security Title of the borrower Documents to be produced Credit worthiness of borrower Amount of advance Rate of interest Repayment of advance

Expected Outcome
Note showing consolidation of the formalities to be observed by a banker while disbursing loan against different types of securities.

III Meaning, Features and Types of lien

(1 Hr)

Suggested strategy Group Discussion

A group discussion can be initiated by citing the following case: Mr. Anand lends Rs.2,00,000 to Deepu on the condition that the amount will be repaid within 3 months. For ensuring the repayment. Mr. Anand also takes a security of gold ornaments from Deepu worth Rs 2,50,000/ Can Mr. Anand sell the gold if Mr. Deepu did not make the payment. What are the other options available to Mr. Anand if he cannot sell the gold. Suppose the gold has been kept as a security in a bank against the advance amount of loan, can the bank sell the gold, if the advanced amount is not repaid within the stipulated time.
Expected outcome

75

Notes showing meaning, features and types of lien

IV Meaning and features of pledge and hypothecation, Differences between

pledge and hypothencation
Suggested strategy : Discussion
Lead Points When will the bank return the security for advances to the borrower? Can a bank accept securities like raw materials and semi finished goods. If so will it hinder the business of the borrower? Do you think that whether the banks will grant loans without taking possession of the security? Which type of charge is created by banks on such securities. Is it necessary that ownership of the property be transferred from borrower to the banker, while taking loans. (2 hrs)

Expected Outcome Notes showing the meaning and features of pledge, hypothecation

V Meaning, features and types of mortgages-Differences between Legal

mortgage and Equitable mortgage
Suggested strategy : Discussion A discussion may be carried out to understand the meaning of mortgage, features and different types of mortgages. Lead Points 76 Can a bank accept immovable properties as security for advances? Which type of charge is created by banker on such securities? It is necessary that the ownership of the security be transferred from the borrower to the banker while creating mor tgage? Does it require any documentation for engaging in a mortgage? (2 hrs)

Activity I Modes of creating charges Mortgage Pledge Hypothecation Activity 2 Types of mortgage Equitable mortgage Legal Mortgage Registration compulsory ---------Document to be executed ----------------Mortgage Deed Types of security Immovable property ---------------------------Document to be created ----------------------------Letter of hypothecation

Expected Outcome A note showing meaning, features and types of mortgages, differences between them.
CE Possibilities

Class test Practical work Assignment

TE Questions 1. Banks do not regard immovable property as good security for their advance. Why? 2. A customer of a bank approaches the bank for a loan facility against FDR, for Rs.5000/ - of another bank issued in his favour. How would the bank deal with the proposal?

77

78

UNIT ANALYSIS III Securities for advances Objectives

To get an idea about the meaning, importance and features of securities for advances

Concepts/ideas

Activity

Materials
Reference books, Text books. Journals, Magazines, Pamphlets. Reference books, Text books. Journals, Periodicals. Reference books, Text books.

Evaluation
Participation in discussion. Vocational diary Participation in discussion. Notes prepared.

To get a practical knowledge about the precautions to be taken by a banker while accepting securities for advances. To get the concept of the Meaning, features and types of lien general lien, meaning of lien features special lien and classification of lie n. To develop on idea about the meaning and features of pledge and hypothecation Meaning and features of pledge and hypothecation, Differences between them.

Meaning importance and features of securities Discussion for advances FDR, gold, vehicle, land & building, document of title to goods, government securities, semi government securities,corporate securities. Formalities to be observed by a banker in Interview accepting securities for advances. Discussion

Discussion

Discussion

Reference books, Text books. Journals, Magazines, Reference books, Text books. Journals,

Participation in discussion. Preparation of notes Preparation of notes

To acquire knowledge about the meaning features and kinds of mortgages.

Meaning, features and types of mortgages. Legal and equitable mortgage

Discussion

Participation in discussion. Preparation of notes

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4 HANDLING OF CASH

Introduction
The responsibility for the effective working and proper control over the cash department vests with the cash officer under the overall administrative control of the Branch Manager. The cash, currency chest and small coin depot balances and other valuables will be held in the joint charge of the Cash officer and the Branch Manager. However the cash officer will have the prime control of cash. In this chapter, an attempt is made to give the learner an indepth knowledge regarding the functions of Cash department, recording of receipts and payments safe keeping of cash, etc. The learner may be able to get a practical knowledge about the functions of cash department of a bank.

Curriculum objectives To collect information about the functions of cash department of a bank by visiting a nearby bank and preparation of report. To get an idea about the working of Automatic Teller Machine, sorting of notes, procedure of opening strong room through discussion, arrangement etc and prepare notes. Syllabus Handling of Cash : Functions of cash department, Receipts and payments recording Safe keeping of cash by Double Lock System Teller System sorting of notes procedure of opening strong room. Through the chapter For convenience this chapter is divided in to 2 heads. 1. Functions of cash department receipts and payments recording. Safe keeping of cash by Double Lock system 2. Teller System Sorting of notes procedure of opening strong room I Functions of cash department Suggested strategy Field visit (4 Hrs) (2 Hrs) (4Hrs) (6 Hrs)

Planning stage 80

Proper planning should be made with regard to the visit, preparation of interview schedule, whom to be interviewed etc. Interview schedule A discussion in the class is to be carried out to prepare interview schedule. Whom to be interviewed Following points are to be considered while preparing interview schedule Name of the Bank Departments of Bank Procedures followed in the cash department for receiving and issuing cash. Double lock system Is Double Lock System necessary for keeping cash safely Procedure of Double Lock System. Manager Officer

Presentation of Field visit Report Presentation may be group wise. A discussion may be facilitated to consolidate all relevant matter. Final report must be prepared by the students individually. At this stage students should get a detailed i ea about the function of cash department of a bank and also d understand the safe keeping system of cash. Expected outcome Report of field visit covering each and every aspect of the functions of cash department of a bank and safe keeping system of cash.

81

III Teller System Sorting of notes Procedure of opening strong room Suggested strategy : Discussion Lead points Expected outcome Note showing teller system and procedure of opening strong room. CE Possibilities TE Questions Field Visit Class test Practical work Whether on the spot payment of cheque is made by the banker. Do you know Teller System? Whether the Teller will verify the signature of the customer. Expand ATM Point out the procedure of ATM How currency notes can be sorted Procedure of opening strong room

(2 hours)

Why a Teller is not required to refer to the ledger or specimen signature card before paying the cheques or withdrawal slips Can the teller make any entry in respect of any deposit/withdrawals in the savings bank passbook, why?

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UNIT ANALYSIS IV. Handling of Cash Concepts/Ideas Activity Functions of cash departmentsreceipts and payments recording, safe keeping of cash by double lock system Working of ATM, sorting of notes, procedure of opening strong room Field Visit Materials Evaluation Text Report books, Reference books

Objectives

To get practical knowledge about the functions of cash department of a bank To get an idea about the working of Automatic Teller Machine

Discussion Text books Reference books

Partic ipation in discussion, Notes

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5 NEGOTIABLE INSTRUMENTS

Negotiable instruments play an important role in the modern business world. The term negotiable instruments literally means a written document which creates a right in favour of some person and which is freely transferable. They are useful for making payments and discharging business obligations. Further, modern commercial banks also deal with these instruments. They collect these instruments on behalf of the customers, discount these instruments for the customers or grant advances to the customers against the security of these instruments . So it is essential to know the law and practice of banking relating to negotiable instruments, particularly bill of exchange, promissory notes and cheques.

Curriculum Objectives
To get the concept of the meaning and features of negotiable instruments and differentiate between them through group discussion assignment etc and presentation of notes. To get an idea about the meaning and features of bank draft and differentiate it from cheque through discussion, specimen forms and prepare notes and charts. To develop an idea about the meaning and advantages of crossing of cheque and to identify different kinds of crossing through discussion, practical with the help of specimen forms and presentation in the form of notes and charts. To develop an idea about the meaning, features and kinds of endorsement through discussion and seminar and prepare report. To get an idea about the meaning of dishonour of cheques, the circumstances for dishonouring cheques and the meaning of MICR cheques through discussion etc and prepare notes. To examine the meaning of paying bankers and collecting bankers and analyse their duties through discussion etc and prepare notes. 83

Syllabus
Negotiable instruments: Meaning characteristics kinds: promissory notes, bill of exchange, Bank draft- parties to negotiable instruments crossing endorsement collection and payment of cheque dishonour of cheque MICR cheques. (15 Hrs)

Through the chapter For convenience this chapter is divided in to 7 heads 1. Meaning and characteristics of Negotiable Instruments (1 Hr.) 2. Meaning and features Promissory notes, Bill of Exchange, Cheque and differences among them (4 Hrs) 3. Meaning and features of bank draft Differences between bank Draft and Cheques (2 Hrs) 4. Meaning, Advantages and kinds of crossing of cheques (2 Hrs) 5. Meaning, features and kinds of endorsement (2 Hrs) 6. Meaning of MICR cheque and dishonour of cheque - the reasons for dishonour (2 Hrs) 7. Meaning of paying banker and collecting banker their duties and responsibilities (2 Hrs) 1. Meaning and features of Negotiable Instruments Suggested strategy Group Discussion Students have acquired a general understanding about the meaning and features of Negotiable Instruments. To learn this topic discussion may be arranged. (1 Hr)

Lead points
Whether goods and services can be bought and sold on credit basis? Is it necessary to create any document to protect the interest of the creditor? Name the instrument which support the credit transactions of businessmen. Is it a written document Whether it contains any conditions for the payment? 84

Whether it contains a request or promise to pay cash only? Can you define the term Negotiable Instrument by considering these features?

Expected outcome
Notes on meaning and features of Negotiable Instruments. 2. Meaning and features Promissory Note, Bill of Exchange,Cheque - differences among them (4 Hrs) Suggested strategy Group Discussion (4 Hrs) Students have acquired a general understanding about the meaning and features of Promissory note, Bill of exchange and Cheque. The differences among them can be made clear to the students with the help of following points.

Lead points
Whose promise is there on currency notes? Can currency notes be transferred from one person to another? Whether, you can make a promise to your friend in favour of settlement of your debt? Is the promise be in writing? Is it necessary to sign the instrument? When will the payment be made on such instruments? Is stamp duty required for promissory note. Name the credit instrument made by the creditor Name the credit instrument made by the debtor. Name the instrument which can be used to make payment, instead of cash. What is an antedated cheque? Whether a bank will honour a cheque which contain a date yet to come? When a cheque become stale?

Activity 1

85

Name of the credit instrument Bill of exchange Promissory note Cheque

No. of parties 3 --------------

Drawer Creditor -------------

Order or promise Unconditioned order -----------

Expected outcome
Notes showing the meaning and features of Bill of Exchange, Promissory Note, Cheque and differences among them. 3. Meaning and features of Bank draft Difference between Bank Draft and Cheque (2 Hrs) Suggested strategy Discussion Lead points Can you mention the different modes of remittance of funds from one place to another Which is the cheapest method of remittance of money from one place to another Can you mention another name of Bank Draft

Activity
Fill up the table give n Bank Draft 1. Drawn by a banker 2. 3. 4. Cheque Drawn by a depositor

1 2 3 4

86

Expected outcome
Notes showing the meaning and features of bank draft and differences between draft and cheque. 4. Meaning and advantages of crossing - Kinds of crossing of cheques Suggested strategy Discussion

Lead points
Whether payment of all the cheques can be made directly through the counter of the bank? How a crossed cheque can encashed? Whether the name of the bank should be mentioned in the crossing? Can you name the type of crossing in which payment can be collected for the account holder specified in the cheque? What do you mean by double crossing?

Activity
1. Draw a specimen of a) generally crossed cheque b) specially crossed cheque c) double crossing d) opening of crossing

Expected outcome
Notes showing the meaning and advantages of crossing kinds of crossing. 5. Meaning, features and kinds of endorsement Suggested strategy Discussion and seminar A general discussion can be made in the class room. (2hrs.)

Lead points
87

If A wants to transfer a cheque to B what will he do before its delivery? Who are the parties involved in the endorsement? Whether the name of the endorsee be specified in the endorsement.

Then the students are grouped into two . Each group is given the following topics to prepare a seminar report and present them in the class. I Group II Group - Meaning and features of endorsement - Types of endorsement general or blank endorsement

special or full endorsement, partial endorsement, restrictive endorsement, conditional endorsement

The required data may be collected from the textbooks and reference books. The draft should be finalized by the teacher before presenting them in the class.

Expected outcome
Seminar report 6. Meaning of MICR cheques dishonour of cheque and the reasons for dishonour (2hrs.) Suggested strategy Discussion

Lead points
How MICR (Magnetic Ink Character Recognition) protects forgery in cheques? What do you mean by dishonour of cheque? What happens when you present a cheque which has no date on therein Alteration in the date of a cheque Whether a bank will honour a cheque in which the amount in words and figures differ? What is the purpose of keeping a specimen signature card with the banker? Can you say any other circumstances under which a banker refuse to the payment of cheque?

88

Expected outcome
Notes showing the meaning of dishonour of cheques and reasons for dishonour. 7. Meaning of paying banker and collecting banker Duties and Responsibilities (2 hrs.) Suggested strategy Discussion A discussion can be initiated to understand the meaning of paying banker and collecting banker and the duties and responsibilities of them.

Lead points
Name the banker who is responsible to make payment of a cheque Name the bank who collect a cheque for his customers Can you say some of the duties and responsibilities of a paying banker What are the duties and responsibilities of a collecting banker?

Expected outcome
Notes showing the meaning of paying banker, collecting banker and the duties and responsibilities of them

. Assignment Draw specimen forms of bill of exchange, promissory note and cheque. C.E. Possibilities Class test Assignment T. E. Questions 89

1. State the due date of the following instruments a. b. A Bill of Exchange dated 30th November payable 3 months after date. A Bill of Exchange darted 25th January 2006 payable 45 days after date with Out grace 2. A Cheque which had originally been crossed is presented for payment at the counter bearing the remark Crossing Cancelled below the crossing, under the drawers initials . As a bankers how will you accept in this situations

90

UNIT ANALYSIS V Negotiable Instruments

Objectives To get the concept of the meaning and characteristics of negotiable instruments To get an idea about the meaning and features of bank draft and differentiate it from cheque To develop an idea about the meaning advantages and kind of crossing Ideas/concepts Meaning and characteristics of negotiable instrumentspromissory note Bill of exchange, cheque Meaning of bank draft Differentiate between bank draft and cheque Meaning, advantages and kinds of crossing General crossing Special crossing Account payee crossing Not negotiable crossing Double crossing And company crossing Meaning and features of endorsement Kinds of endorsement General or blank special or full partial respective conditional Meaning of MICR cheque Dishonour of cheque Resons for dishonour Meaning of paying banker Collecting banker Duties and responsibilities of paying banker and collecting banker Activities Discussion Materials Reference books Text books Specimen forms Reference books Text books Specimen Reference books Text books Collection of Specimen forms

Discussion

Evaluation Active participation in discussion prepared notes Charts Notes prepared Charts

Discussion

Participation in discus Notes prepared Charts

To develop an idea about the meaning features and kinds of endorsement

Discussion

Reference books Text books

Assignment Prepared notes Table

To develop the meaning of MICR cheque, dishonour of cheque, reasons for dishonour To get an idea about the meaning of paying banker and collecting banker

Discussion

Reference books Text books Reference books

Acquired concepts Notes prepared Acquired concepts Prepared notes

Discussion

90

6 CLEARING HOUSE

Introduction
In big cities or towns there may be number of bank branches. All of them may be receiving cheques drawn on each other from their customers. To collect these cheques , two options are available to the banks. First option is that they may send their own representative to different banks for collection. Another option is that all the representatives of different banks may sit together and exchange their cheques and arrive at final debit or credit entry. Since the first option involves lot of manpower expenses and time, second option is preferred by the banker. Clearing houses are autonomous bodies formed by the banker which run as per the rules and regulations framed by themselves. Reserve Bank of India looks after the functioning of clearing house . Where RBI has its branch clearing house is conducted by it. In other places, State Bank of India or its associates conduct the clearing houses. Curriculum Objectives To collect information about the meaning, advantages and working procedure of clearing house through discussion etc and draft note on it.

Syllabus
Clearing House : Meaning Functions Working Rules Receiving Local cheques, Draft etc, stamping, sorting, preparing schedule and general summary, exchanging the cheques in clearing house and balancing- sorting b ank wise and branch wise, putting banks endorsement, returning the dishonour of cheques. Through the chapter For convenience this chapter is divided in to two heads (5 Hrs)

91

1. Meaning and advantages of clearing house 2. Procedure of clearing house 1. Meaning and advantages of clearing house Suggested strategy Discussion

(1Hr) (4 Hrs) (1 Hr)

Students have acquired a general understanding about the meaning and advantages of clearing house. To learn this topic discussion may be arranged.

Lead points
Have you heard about clearing house What is a clearing house Who manages the clearing house Who will conduct the clearing house in places where Reserve Bank has no branches

Expected outcome
A note on meaning and advantages of clearing house.

2. Procedure of clearing house Suggested strategy Group Discussion

(4 Hrs)

Lead points
Procedure of clearing house Receiving local cheques, drafts etc Stamping, sorting Preparing schedule and general summary Exchanging the cheques in clearing house and balancing Sorting bank wise and branch wise Putting Banks endorsement Returning the dishonoured cheques

92

 From the above discussion students get a clear idea about the procedure of clearing operation.

Expected outcome
Notes based on meaning and procedure of clearing house. CE Possibilities Seminar Interview Class test Practical work

TE Questions 1. Can you accept bills for collection from unknown parties. If so, what safeguards you will take in this regard. 2. Who will manage the clearing house?

93

UNIT ANALYSIS VI. Clearing House

SI. Objectives No 1 To collect information about the meaning and advantages of clearing house 2 To get an idea about the procedure of clearing house Ideas/concepts Meaning of clearing house Advantages of clearing house Working of clearing house Activities Discussion Materials Reference books Text books

Evalu

Notes p

Discussion

Reference books Text books

Acquire concept Notes p

94

7 ACCOUNTING

Introduction
Accounting has been generally confined to the financial record keeping functions of the accountant. Students have a general idea on the concept of accounting and its principles and practices. Every aspects of this chapter must be transacted with as many examples as possible in the real life situation to create interest and to develop an attitude of accounting. The primary objective of the chapter is to develop awareness about the meaning and need for accounting, features and the preparation of Trial balance, Trading account, Profit and loss account and Balance sheet. This will lead the students to familiar with the accounts of banks

Curriculum Objectives
To develop an idea about the meaning and objectives of accounting and analyse its importance from various reference materials, discussion and presentation of notes. To develop information regarding various business transactions and analyse the rules of debit and credit from reference materials and prepare necessary books of accounts. To analyse the concept of ledger and to prepare ledger accounts through discussion and assignments. To develop an idea about the meaning of trial balance through discussion etc and its preparation. To identify and to analyse the meaning and types of errors, its rectification through a seminar etc and present in the form of report. To get knowledge about the meaning of financial statements and analyse its process of preparation through discussion etc and by collecting reference materials and its presentation.

95

Syllabus
Accounting : Meaning and Objectives Importance Double entry system of Accounting Accounting Concepts and conventions Recording transactions in Journal, Ledger, subsidiary book balancing of accounts rectification of mistakes trial balance preparation of final account : Trading and profit and loss account and balance sheet. (23 Hrs)

Through the chapter

This chapter is divided in to following 6 heads. 1. Meaning, Objectives and importance of accounting 2. Rules of debit and credit, journal, subsidiary books 3. Ledger meaning, preparation and balancing 4. Meaning, objective and preparation of trial balance 5. Meaning and types of errors and its rectification 6. Meaning and preparation of trading and profile and loss account 7. Meaning and preparation of Balance sheet 1. Meaning, importance and Objective of accounting Suggested strategy Group Discussion Students have already acquired a general understanding about the meaning objective and importance of accounting. (2 Hrs) (3 Hrs) (4 Hrs) (3 Hrs) (4Hrs) (4 Hrs) (3Hrs) (2 Hrs)

Lead points
Discussion may help the students to develop an idea about the objectives and importance of accounting. What do you mean by business transaction? Why should we record all business transactions in the books of accounts?

96

Expected outcome
Notes showing the meaning, objective and importance of accounting.

2. Rules of debit and credit, journal, subsidiary books Suggested strategy Group Discussion

(3 Hrs)

Students have already aware about the rules of debit and credit. To test this knowledge students may be given a set of business transactions as a group activity to identify the dual aspect of each transaction.

Lead points
Discussion can be continued by asking them to prepare journal and sub divisions of journal from the above set of transactions.

Activity
1. Complete the table given Accounts Assets Increase /decrease Increase decrease Increase decrease Increase Decrease Increase decrease Debit/credit Debit credit --------------------------------

Liabilities Income Expenditure

Expected outcome
Chart showing the rules of debit and credit Prepared journal and sub divisions of journal (4 Hrs)

3. Ledger meaning, preparation and balancing Suggested strategy Group Discussion The discussion may be initiated by giving a care.

97

Mr. Rahim, a retailer has numerous transactions both in terms of cash and credit . At the end of the month he is interested in knowing the 1. The total cash sales made by Rahim 2. The amount owed from him in terms of credit sales.

Lead points
Teachers may provide necessary transactions to prepare ledger accounts. If all transactions are entered through one journal is it convenient to identify the details of cash sales and credit sales from that journal? If not what are the options available What do you mean by balancing of an account

Expected outcome
Notes showing the meaning of ledger accounts Prepared ledger accounts (3 Hrs)

4. Meaning, objective and preparation of Trial Balance Suggested strategy Group Discussion

To test the previous knowledge of students, teacher can ask the following questions.

Lead points
How can you ensure the arithmetical accuracy of various ledger accounts prepared? How trial balance helps for the preparation of financial statements?

Expected outcome
Notes on meaning and objectives of trial balance. 5. Meaning and types of error its rectification Suggested strategy Discussion and seminar (4Hrs)

98

A general discussion may be conducted to provide idea about the meaning and types of error. To learn the topic in detail a seminar is arranged.

Seminar
At the planning stage the students are grouped and each group is assigned with the following sub topics.

Group A Group B Group C Group D

Error of principle Error of commission Error of omission Compensating errors

While preparing the draft paper, sufficient example must be included and each group must show the rectification of such errors. While conducting the seminar a proper consolidation of all points must be made. Activity Error 1. Sold machinery for Rs. 5000/ entered in the sales day book 2. Paid Rs. 2000/- to B debited in his account as Rs. 200 3. Purchased goods for Rs.500 omitted to enter in books 4. Sold furniture A Rs. 1000/- is entered in the sales day book Types of error -----------------------------------

Expected outcome
Seminar report Chart showing the types of error and its rectification (4Hrs)

6. Meaning and preparation of trading and profit and loss account Suggested strategy Discussion

99

The students are aware of the meaning and preparation of final accounts. To recollect the procedure for the preparation of financial statements a discussion can be initiated in the following line. Lead Points Expected outcome Notes showing meaning of trading, P & L account and balance sheet Notes showing format of trading, P & L account and balance sheet. (3Hrs) What are the objective of a business? How can we ascertain the net result of a business?

7. Meaning and preparation of Balance sheet Suggested strategy Discussion Lead points Expected outcome Notes showing the meaning of Balance sheet Draw the specimen of Balance sheet How can we ascertain the financial position of a business? List out the items included in the assets side of a Balance sheet?

CE possibilities Seminar Project Class test Assignment Practical work

TE questions

1. Why capital is treated as liability 100

2. Prepare a trial balance with imaginary figures.

101

UNIT ANALYSIS VII Accounting

Objectives
To develop an idea about the meaning and objectives of accounting

Ideas/concepts Meaning objectives and importance of accounting

Activities Discussion

To get an idea about the rules of debit and credit To analysis the concept of ledger To develop an idea on the meaning of trial balance

Rules of debit and credit Meaning of ledger preparation of ledger Trial balance methods of preparing Trial balance Error of principle Error of commission Error of omission Error of compensation Rectification of errors

Discussion Assignment Discussion

Materials Reference books Text books Annual report publications Text books Charts Text books Secondary data Materials Text books Annual report List of account Text books

Evaluation Acquired concepts

Participation in disc Prepared charts Acquired conceptua knowledge Evaluation Participation Discussion

Discussion

To identify different types of errors and to make an analysis of it To locate and rectify errors

Discussion Seminar

Participation in disc Charts prepared Sem report

Discussion Seminar Discussion

Text books Reference books Periodicals Annual reports Text books

To get knowledge about the meaning and use of financial statements and analyse its process of preparation

Meaning and features of financial statements Trading account Profit and Loss account, Balance sheet

Seminar report Participation in discussion Acquired concepts participation in disc prepared notes

101

8 ACCOUNTS OF BANKING COMPANIES

Introduction
Banks in India have to prepare their profit and loss account and balance sheet as per the IIIrd schedule of the Banking Regulation Act 1949. RBI has given guidelines and format for profit and loss account and Balance sheet of banks. The profit and loss account is an account showing the profit or loss of a bank during a financial year. The balance sheet of a bank is a statement of its liabilities and assets at a particular time. The business of the bank is reflected in the balance sheet. The financial position of the bank is made known through the balance sheet. It indicates whether the bank is sound and solvent or not. The balance sheet of a bank is of greater importance than that of trading concern because a bank deals in others money and such the entire community is interested init. Now it published in the schedule form. This chapter also indicates the classification of bank advances as standard assets, substandard assets, doubtful, assets, loss assets Non Performing Assets (NPA). Curriculum Objectives To collect the information about the books of accounts to be maintained by banks by conducting bank visit,discussion and preparation of specimen forms of profit and loss account and balance sheet of banks in the scheduled form To create an idea about the classification of bank advances as Standard assets, Substandard assets, Doubtful assets,Loss assets and Non Performing Assets (NPA) through discussion etc and prepare notes on it.

Syllabus
Accounts of Banking Companies (Basic Awareness) . Books of accounts to be maintained by banks slip system of posting final accounts of banks Profit and loss

102

account and Balance sheet (forms as per Banking Regulation Act only) classification of bank advances as Standard assets Substandard assets Doubtful assets and Loss assets (6 Hrs.)

Through the chapter For convenience this chapter is divided into two. 1. Books of accounts to be maintained by banks, final accounts of banks, profit and loss account and balance sheet (forms as per Banking Regulation Act only) (4 Hrs)

2. Classification of bank advances as standard assets substandard assets doubtful assets and loss assets Non Performing Assets (NPA) (2 Hrs)

1. Books of accounts to be maintained by banks, final accounts of banks, profit and loss account and balance sheet Suggested strategy General Discussion Students are aware of the books of accounts to be maintained by banks. Through a general discussion the students may be helped to prepare specimen forms of final accounts of banks ie. Profit and loss account and Balance sheet. (4hrs)

Lead points
Balance sheet Profit and Loss Account Format in schedule form Make practical experiences in writing format - Form A III schedule of Banking Regulation Act Form B III schedule of Banking Regulation Act

Activity
1. Schedule form of Balance Sheet 2. Schedule form of profit and loss account

103

Expected outcome
Format in schedule form Balance sheet and P&L account of banks Classification of bank advances as standard assets substandard assets doubtful assets and loss assets Non Performing Assets (NPA) Suggested strategy Discussion Students get a concept and meaning of classification of bank advances as (2hrs)

Standard assets Substandard assets Doubtful assets Loss assets Non Performing Assets (NPA)

A discussion may be conducted in the classroom about the above mentioned items.

Expected outcome
Notes on the classification of bank advances as standard assets, substandard assets, doubtful assets, loss assets and NPA. CE possibilities Assignment Practical work Class test

TE questions

3. Prepare a specimen form of profit and loss account of a bank as per Banking Regulation Act 4. Prepare a specimen form of balance sheet of a bank as per Banking Regulation Act

104

UNIT ANALYSIS VIII Accounts of Banking Companies

SI. Objectives No 1 To get an idea about the books of accounts to be maintained by banks Ideas/concepts Final accounts of banks Specimen form of Profit and loss account and Balance sheet
Standard assets substandard assets

Activities General Discussion

Materials Periodicals Annual report Text book

Evaluation Acquired concepts participation in discussion prepared notes Participation in discussion prepared notes

To classify bank advances

Discussion

Doubtful assets Non Performing Assets

Periodicals Reference books Text book

105

9 MISCELLANEOUS OFFICE FUNCTIONS

Introduction
Office is a place where all the correspondence of an organization is done. Every organizations whether it is a school, college, Hospital or bank must have an office. Office is the nerve center of every organization. All records of the organization are kept in office. Therefore office is called information centre. Office acts as a center serving different departments of the organization. It works as a memory centre by keeping documents and records of the organization. Office works as a co-ordinating centre and also works as a control center. the management. Curriculum Objectives To collect information about the meaning and importance of office and analyse its function through discussion, reference materials etc, and presentation of report To get an idea about the procedure of inward and outward mail through discussion, collecting specimen and presentation of notes and charts In short office works as eyes, ears, mouth and brain of

Syllabus
Miscellaneous office function : Receipt of mail opening of letters date stamping scrutiny of contents recording in inward register sorting and distribution to section dispatch of mail, sorting clearing entry in outward registers posting keeping account of postal stamps filing receipts maintenance of office. (10 Hrs)

Through the chapter

For convenience this chapter is divided in to three heads 1. Meaning, importance and functions of an office (3Hrs)

2. Meaning of inward and outward mail procedure of inward and outward mailing (5 Hrs) 3. Meaning of filing procedure of filing (2 Hrs) 106

1. Meaning, importance and functions of an office Suggested strategy Group Discussion

(3Hrs)

Lead points Do you visit the office of an organization What is an office Which type of work is done in an office What is the importance of office Is there an office in your school Who is an office manager Why is it said that office is the nerve centre of every organization Office is a memory centre Office is a control centre As eyes, ears, mouth and brain of the management

Expected outcome
Note on the meaning, importance and functions of an office. 2. Meaning of inward and outward mail procedure of inward and outward mail (5 Hrs) Suggested strategy Group Discussion Students have acquired idea about the meaning and procedure of inward and outward mail.

Lead points
What is mail Inward mail Outward mail 107

Procedure of handling inward and outward mail

Activity
1. Draw the specimen of inward mail register 2. Specimen of outward mail register 3. Peon book Format 4. Stamp account register

Expected outcome
1. Notes showing meaning and procedure of inward and outward mail 2. Specimen showing inward mail register 3. Specimen showing outward mail register 3. Meaning and procedure of filing Suggested strategy Discussion Students get a general idea about the meaning, importance, procedure and types of filing. Lead points What is a file What do you mean by filing Name some types of filing Importance of filing Procedure of filing (2 Hrs)

108

Expected outcome
1. Notes showing the meaning importance and procedure of filing 2. Charts showing filing method CE possibilities Class test Assignment

TE questions

5. Draw the specimen form of inward mail register

6. Office is called as ears, eyes, mouth and brain of the management explain

109

UNIT ANALYSIS IX Miscellaneous Office Functions

SI. Objectives No 1 To get an idea about the meaning, importance and functions of office 2 To collect information about the procedure of inward and outward mailing Ideas/concepts Activities Materials Reference books Text book Evaluation Participation in discussion Notes prepared

Meaning of office Discussion Importance of office Functions of office Meaning of Discussion inward mail Meaning of outward mail Procedure of inward mailing Procedure of outward mailing Meaning of filing Procedure of filing Types of filing Discussion

Reference books Text books Specimen forms

Acquired concepts Notes prepared Charts

To get information about the meaning and procedure of filing

Reference books Text book

Prepared notes