1.

Introduction
From very ancient period people living their life by doing various professions. Among those
some are eternal and some are prestigious. The Accountancy profession is now accepted as one
of the most prestigious profession. After industrialization it was accepted as a profession in
worldwide. There are a number of different national and international institutes of accountants
to control and develop the profession. At present world the accountancy profession indicates
two types of certified accountants- one is “Chartered Accountants” and another one is “Cost &
Management Accountants”. In Bangladesh there are two different institutes for the
accountants- “The Institute of Chartered Accountants of Bangladesh” (ICAB) and “The Institute
of Cost & Management Accountants of Bangladesh” (ICMAB). It is been compulsory to audit the
accounts for different codified companies in Bangladesh and only the Chartered Accountants
can perform this task. In the “Section 220 of Companies Act 1994”, it is been compulsory to
audit the manufacturing costs for a number of specific organizations and the accountants
passed from the ICMAB can perform this task.

1.1 Objective of the Study:

The goal of the study as takes after:
i. Broad Objective
- The board goal of the report is to assess of the accounting division and what are
the exercises essentially done by this department.
ii. Specific Objective
- To develop knowledge about Accounting Division of Kazi Farms Group.
- To get information about what are the models essentially utilized by Accounting
Division while evaluating distinctive approach that emerges in Kazi Farms Group.
- To give a few suggestions with respect to the Accounting division.

1.2 Scope of the Study:

This study has secured for the most part the Accounting Division of Kazi Farms Group.
Moreover, the models that the bookkeeping division utilizes for evaluating distinctive approach
while emerges in Kazi Farms. At last, I attempted to give a few suggestions with respect to the
Accounting Division of Kazi Farms Group.

1.3 Methodology:
a. Kind of Research: This study is a depiction kind of research in nature and it controlled by
gathering both essential and optional information. It has endeavored to utilize both essential
and optional wellsprings of collecting data and some are to make the report satisfactory with as
deliberation as could be allowed.
b. Type of data collection: Keeping in mind the end goal to achieve the goal of the study, all
vital data are set up by gathering both essential and optional sources of information.
I. Essential Data:

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 The essential sources are as per the following face to face discussion with my advisor.
II. Optional Data:
The secondary sources of data and information are:
- Website of Kazi Farms Group (www.kazifarms.com)
- Review Report of Kazi Farms Group
- Publication.
1.4 Limitation of the study:
There are a few limitations that I face while this study as take after:
The association keeps up some classification while giving data with respect to their
specialization. Uniquely, KFG, never reveal their costing and buy related data. Thus, this study
does not shoulder any substance identified with cost bookkeeping. In addition, I had no chance
to visit their partners and sister concerns bunch amid the venture thus I can't collect any data
that how they keep up their bookkeeping framework, control and synchronize with the head
office. To beat this circumstance, I needed to make some supposition that may cause couple of
mistakes in this study. Despite all these constraints, I have endeavored to put my best exertion
beyond what many would consider possible.

2. Accounting Practices in Bangladesh

2.1 History
The history of accounting profession in Bangladesh can be describe under two section-
i. Pre-Independence History -
1850-1914: The accounting profession was legally accepted in Indian Subcontinent
by bringing company law into force in 1850. According to the law, it was been
compulsory to audit the accounts of the organizations on half-yearly basis. And to do
so there needs expert auditor. In that period, the companies select European and
Indian auditors to maintain the interest of the European and Indian shareholders. As
there were no rules to assess the eligibility of Indian auditors, the lawyers act as an
auditor in that period.
1914-1947: It was made compulsory to audit the accounts of a company by an
expert and independent auditor in the Company Act 1913 which was effective from
1st March, 1914. From the due date, any person who was not certified by
government can’t perform the tasks of an auditor and for that reason, the lawyers
and other auditors’ loss their eligibility. In 1918, Mumbai Govt. starts a test of
“Government Diploma in Accountancy” to bring out professional accountants. This
test was then accepted by other provincial and central government. There was no
central control upon accounting profession until the “Auditors Certificate Rule”
passed in 1932. Persons who get certificate in pursuance of this law were known as
‘Registered Accountants’ (R.A.).
1947-1972: After separation of Indian sub-continent, the Government of Pakistan
accepted the “Companies Act 1913” and the “Auditors Certificate Rule” of 1932. In
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 1950, the Government of Pakistan made some corrections on Auditors Certificate
Rule and changed it to “Auditors Certificate Rule, 1950”. According to this law, the
Ministry of Commerce preserves a list for accountants and the persons who were in
that list got the authority to use ‘Registered Accountants’. Later the registered
accountants established “Pakistan Institute of Accountant” to preserve their interest
and for development of the profession. This institute tried to make it understand to
the government that there need to establish a separate association to authorize and
control the accounting profession. After that the government realizes the importance
of the profession and set up “Council of Accountancy”- an advisory board. Later on,
1st of July 1961 the government declared an ordinance- “Institute of Chartered
Accountant of Pakistan” in accordance with the recommendation of the advisory
board. And then on 1st July 1961 “Institute of Chartered Accountant of Pakistan” was
established as an autonomous association. This association controls all about the
accountancy profession.
ii. Post-Independence History -
After liberation war in 1971, Bangladesh which was formerly known as East Pakistan
was separated from Pakistan and appeared as an independent country. After
independence, Bangladesh faces lots of problems and difficulties because of a little
number of Bengali accountants. For that reason, the government of Bangladesh set
up an “Add-hock” committee which appoints 18 chartered accountants to solve the
problems. On 6th January 1972, the government passed a law “The Bangladesh
Chartered Accountant Order” and then established “Institute of Chartered
Accountants of Bangladesh” as of the following order. And now this association
controls the accountancy profession in Bangladesh. There has another autonomous
association “ICMAB” which is also working for the development of this profession.
This institute is related with the cost and management accountancy profession.
Incidentally, The Parliament of Bangladesh made some additions and alterations of
the “Companies Act 1913” and passed the “Companies Act 1994”.

2.2 Role of Accounting Practices in the Economic Development of Bangladesh

The economic and commercial development is closely related each other. Accountancy
profession has its importance to record the business transactions and to verify its accuracy. This
profession is also taking part into the fastest economic development of Bangladesh by
accomplishing the following tasks-
a. Proper maintenance of financial institution- Bank, Insurance Company and other
financial institutions are supplying capital to carry on their business, for which economic
position is developing. The financial tasks of banks and insurance companies are
influenced by accounting information and so that it is necessary to keep record of the
accounts of these financial institutions.
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 b. Preparing budget- It is necessary to prepare a budget into the business organizations for
economic development. On the basis of past experience an organization prepares cash
budget, manufacturing overhead budget, sales budget, master budget etc. to ascertain
the development. And there need accounting information to prepare a budget.
c. Reducing corruption by auditing accounts- It is possible to reveal the frauds and forgery
of a company by accounting profession and for that it is been possible to reduce the
corruption and make sure the proper use of the funds of the company.
d. Determination of national income- There has special contribution of accountancy
profession to determine national and international income of financial activities and
preparing the balance sheet.
e. Statistical work- In accordance of government rules and regulations, accounting
profession helps into statistical works by providing necessary information that is
collected and recorded from the business transactions of different parties.
f. Employment- This profession helps in the economic development by employment of lots
of people. In the economic development of a country there needs different information.
The accountancy profession helps to successful operation of a business by providing this
information. And in this way accounting helps to the economic development by the
development of businesses and employment.

2.3 Activities of Professional Accounting Practices in Bangladesh

Activities that are performed by the professional accountants in Bangladesh are as follows
a. Audit Accounts- Maximum professional accountants in our country is engaged with
auditing accounts. One or more accountants establish a firm for this purpose and
conduct the audit under the firm. Their task is to justify the accuracy of the accounts of
different firms and give their opinion from the view point of laws.
b. Keeping Accounts- Professional accountants are appointed in the accounting
department of different business & social organizations; government, non-government
and autonomous organizations; and they records & prepares the accounts.
c. Tax Advice- Many professional and certified accountants work as tax advisor and plead
for their clients about tax related case. Their work includes- preparing tax description,
identifying tax liabilities and providing tax related advices.
d. Formation of Company- When establishing a company there appointed professional
accountants for preparing all necessary documents. In this case, they prepare the
memorandum and articles of association, statements or reports and other legal
documents.
e. As a liquidator- Professional accountants can be appointed as a liquidator in the period
of liquidation of a company.
f. Investigation- Professional accountants are appointed to accomplish the investigation
where they inquire the final accounts of a business or company.

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 g. Implementation of Management Accounts- Sometimes professional accountants are
appointed to help the management. Here they prepare financial plans and budgets,
financial report and manufacturing expenses report, compare and analyze the actual
results with standards.

2.4 Institute of Chartered Accountants of Bangladesh (ICAB)

a. Formation:
The “Institute of Chartered Accountants of Bangladesh” is established as an autonomous
association in accordance with the “Bangladesh Chartered Accountants Order, 1973” to
control and develop the accounting profession. The association has long standing
existence and operated with its own seal which is the symbol of its existence. The
association can occupy, buy and sell movables and immovables properties.
b. Membership:
Peoples who were registered before the declaration of Chartered Accountant Order on
1973 and those who were registered later by following the order will be treated as the
member of the association until their name were registered. Persons who can be the
member of this association are-
- Any citizen of Bangladesh who were engaged with accounting profession when
the order was effective.
- Person who have passed the authorized tests and completed authorized training.
- Person who have passed from any foreign “Institute of Accountancy” and
accomplished the training accurately. But condition is that, he should be
accepted by the ICA council of Bangladesh and the test and training should also
be accepted by the institute. The council can apply more conditions if the person
is not a citizen of Bangladesh.
- Any Bangladeshi citizen who passed the tests and accomplished the training from
any foreign “Institute of Accountancy” and achieves the membership of that
institute before the “Bangladesh Chartered Accountants Order, 1973” takes into
action.
- Any Bangladeshi citizen who was studying to take part in the examination of any
foreign “Institute of Accountancy” before the declaration of the order and at the
same time, s/he was on training either in native country or abroad; or s/he was
on training after passed from any foreign “Institute of Accountancy” before
declaration of “Bangladesh Chartered Accountancy Order, 1973”.
- Any Bangladeshi citizen who passed the exam before 25 th of March, 1975 under
“Auditor Rules, 1950” and “Chartered Accountants Rules, 1961”.
c. Types of Membership:
There are two types of member of the association- “Associate” and “Fellow”. A member
is called an associate if he is listed in the register of the association and can use “A.C.A”
after his name. And if an associate engaged with accounting profession for 5 years, then
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 he can be listed as a fellow member after applying and made payment of the fee and
should be approved by the council. After that he can use “F.C.A” with his name.
d. Disqualified for Registration:
Following people will not be the member of the association, if-
- S/he is under 21 years of age in the period of application.
- S/he is mentally disordered.
- S/he is an insolvent.
- His membership is forbidden by the institute because of professional or any
other misbehavior.
If the membership of any one is forbidden for a specific period, than he can be
registered again after end of the period.
e. Management:
The management system of “Institute of Chartered Accountants of Bangladesh” is as
follows-
- There have 20 members in the management. Among them 17 members are
elected from professional accountants and other 3 are selected by the
government as representative of Ministry of Finance, Commerce and Industries.
- The life time of the management council is 3 years.
- There should be elected a chairman, one or more vice-chairman among the
members of the council. The chairman will be act as the chief host of the council.
- There will be a treasury to operate the activities of the association.
f. Functions of ICAB:
The functions of the association are-
1. The code of conduct for the accountants should be prepared on the basis of
“Chartered Accountants Order, 1973”.
2. Takes necessary action if any member doesn’t maintain their code of conduct.
3. Keep a list of professional accountants.
4. Set up a standard for foreign certified accountants to work as a professional in
Bangladesh.
5. Arrangement of professional examination.
6. Set up sub-committees if needed, to solve the problems related to the profession.

2.5 Institute of Cost and Management Accountants of Bangladesh (ICMAB)

In 1966, “Pakistan Institute of Industrial Accountants Act” was passed to control the activities of
cost and management accountants. Then “Bangladesh Institute of Industrial Accountants” was
established after independence of Bangladesh. This institute keeps contribution into the
financial management of Banks, Insurance Companies and other organizations. Later in 1977,
government of Bangladesh declared “Cost and Management Accountants Ordinance” to control
the manufacturing costs and the profession of management accountants. “Institute of Cost and
Management Accountants of Bangladesh” was then established in accordance with the
ordinance.
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a. Management and Functions of ICMAB: People who were registered before this
ordinance or who were registered later by following the rules and regulations of the
ordinance, they will be considered as member of the “Institute of Cost and Management
Accountants of Bangladesh” until their name exist in the register. [Section 3(1)] The
Association will have permanent right of succession and a general seal. It can also
occupy, buy and sell movables and immovables properties.
b. Membership:
Persons who can be the member of this association are-
1. The Associate or Fellow member of any institute which became extinct.
2. Persons who have passed the exam and completed training that arranged by the
council.
3. Persons who have passed the exam and completed training from any foreign
“Institute of Cost and Management Accountant” and became the member of that
institute. In this case, they should be accepted by I.C.M.A.B and the exam & training
should also be accepted by the institute. The council can apply conditions if they are
not the citizen of Bangladesh.
4. Any Bangladeshi citizen who passed the tests and accomplished the training from
any foreign Institute and achieves the membership of that institute before
declaration of “Cost and Management Accountants Ordinance”.
5. Any Bangladeshi citizen who was studying to take part in the examination of any
foreign “Institute of Cost and Management Accountant” before the declaration of
the order and at the same time, s/he was on training either in Bangladesh or abroad;
And passed the exam and completed training.

c. Types of Members:
There are two types of member of the association- “Associate” and “Fellow”. A member
is called an associate if he is listed in the register of the association and can use
“A.C.M.A” after his name. And if a member engaged as an associate for 5 years, then he
can be listed as a fellow member after applying and made payment of the fee and
should be approved by the council [Section 6(4)]. After that he can use “F.C.M.A” with
his name. People who were the fellow member of an abolished institute before
declaration of the ordinance can use F.C.M.A after their name until they are registered.
d. Management:
There will have a council to manage and accomplish the activities of the institute
[Section 9(9)]. Council will be formed with the combination of following persons-
1. Members of the institute will elect 12 persons from the fellow members.
2. 4 persons will be selected by the government [Section 9(2)]. Here nobody from the
institute will be nominated as a member of the council.
3. Members of the council will select chairman, two vice-chairman, secretary and
treasurer.
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 e. Functions of Council: The functions are as follows-
1. The Council can apply necessary power to achieve the objectives of the ordinance
and to accomplish the functions.
2. Organize the examination for those who are seeking membership of the institute.
3. Student registration and organize training.
4. Set up standards for achievement of membership.
5. Acceptance of foreign competence and training to provide membership.
6. Provide or cancel certificates for training.
7. Keep records of registered members and publish the list of the members and
practitioners.
8. Set up and receive fees from examinee, students and members.
9. Retract names from register and re-register the names.
10. Maintain honour and dignity of professional competence of the members of the
institute.
11. Conduct research work on cost and management accounting by providing financial
support or any other way to the members of council.
12. Provides professional service in case of cost and management accounting.
13. Manage the library and publish books and journals on cost and management
accounting.
14. Apply rules and regulations upon members, officers and employees of the institute.

Council will set up the following standing committees to successfully accomplish the
functions-
- Executive committee
- Education committee
- Examination committee
- Research & Development committee
- System development committee
Cost and Management accountants’ regulation was prepared in accordance with the
order in 1980. The rules and regulations to operate the institute and code of conducts
for members are included in the order.

2.6 Role of ICAB & ICMAB in development of Accounting Profession in Bangladesh

Roles of ICAB is as follows-
1. The code of conduct for the accountants should be prepared on the basis of
“Chartered Accountants Order, 1973”.
2. Takes necessary action if any member doesn’t maintain their code of conduct.
3. Keep a list of professional accountants.
4. Set up a standard for foreign certified accountants to work as a professional in
Bangladesh.
5. Arrangement of professional examination.
6. Set up sub-committees if needed, to solve the problems related to the profession.
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 7. Maintenance of international standards.
8. Help government to prepare rules and regulations for accounting profession.
Roles of ICMAB is as follows-
1. Organize the examination for those who are seeking membership of the institute.
2. Student registration and organize training.
3. Set up standards for achievement of membership.
4. Acceptance of foreign competence and training to provide membership.
5. Maintain honour and dignity of professional competence of the members of the
institute.
6. Conduct research work on cost and management accounting by providing financial
support or any other way to the members of council.
7. Provides professional service in case of cost and management accounting.
8. Manage the library and publish books and journals on cost and management
accounting.
9. Apply rules and regulations upon members, officers and employees of the institute.

2.7 Traditional book-keeping system of Bangladesh

The book-keeping system of Bangladesh can be divided into three parts-
A. Sole proprietorship & Partnership firms
B. Accounting system of companies
C. State & Statutory accounting system
A. Sole proprietorship & Partnership firms:
The book-keeping system of sole proprietorship and partnership firms is described
below:
a. Objects- The main objective of book-keeping in sole proprietorship & partnership
firm is to provide actual information to owners, so as they can make decisions for the
company. In this system, interest of any other parties is not considered rather than
the owners.
b. Book-keeping in single entry system- where the rules of double entry system are not
followed, that is known as single entry book-keeping. In this system, to calculate
profit and loss amount, at first need to calculate capital amount by deducting
liabilities from assets. In that case, we calculate opening capital by deducting
opening liabilities from opening assets and calculate ending capital by deducting
ending liabilities from ending assets. When following single entry system, profit and
loss amount is calculated in the way of adding the ending capital, raised interest,
other undistributed incomes and deducting the opening capital, extra capital,
interest on capital, unadjusted expenses. At the end of the year a statement of assets
and liabilities is prepared and there have possibilities of mistakes and frauds as it not
follows double entry system.

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 c. Uses of accounting policy and standard- Accounts of a firm don’t get completeness
without having accounting policy and standards. But sole proprietorship and
partnership firm don’t follow the standards and policies for which it is not accepted
by others but accepted by the owners.
d. Audit- Audit of account animates an organization. There have possibilities of
mistakes and frauds in the account if auditing is not done. Audit of account for sole
proprietorship and partnership firm depends on the willingness of the owners, and
here it is not compulsory to audit the account.
B. Accounting system of companies-
a. Unlimited Liabilities Companies- Here liabilities of shareholders are unlimited. The
employees of unlimited liabilities companies are personally liable for their activities.
b. Limited Liabilities Companies- Here liabilities of shareholders are limited and they
bear liabilities of a certain amount. Public limited company is known as registered
company because it has to register in the stock exchange. And shares of Private
limited company are not under the control of share market.
The book-keeping system of companies is described below-
i. Legal obligations: According to the “Section 2 (1) (d) of Company Act, 1994”-
Company means any company established and registered or any company
existed with following this Act. These companies record the account by
following double entry system. So there have chance to audit the account
and it can be accepted to all parties of business.
ii. Double entry system of book-keeping: In this system all financial transactions
are recorded into two side- debit and credit side of the account. As following
the rules of double entry system, accounting is done into different steps such
as- Journal, Ledger, and Trial Balance and then the final step is preparing the
financial statement by making necessary adjustments with the trial balance.
iii. To follow accounting policy and standard: Any account can’t be completed if
it not follows accounting policy and standards. In case of Companies, policy
and standard is judged accurately, because all parties of business are
deliberated here.
iv. Audit: Audit of account is compulsory for Public limited company as it brings
accuracy into the accounting system of a company.
v. Cost Accounting: Manufacturing companies prepares their account by
following the cost accounting system.
C. State and Statutory accounting system-
This type of company is established in accordance with the special order of the President
or National Council of Law and Justice.
i. Use of accounting policy and standard- These organizations keep records of
account and prepare financial statements by following double-entry book-

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 keeping system. In double-entry system, accounting policy and standard is
maintained.
ii. Audit- Audit is compulsory for these organizations, because if there have no
rule of audit than the possibility of mistakes and fraud is exists.
To develop the accounting system of Bangladesh, every organization should follow the
double-entry system and also should follow the International Accounting Standards
issued by FASB.

2.8 Limitations of Current Accounting Practice of Bangladesh

Accounting system in Bangladesh is divided into following two sections on the basis of the
nature of organizations-
A. Accounting system for unregistered firms
B. Accounting system for registered firms

A. Limitations of unregistered firms

1. Legal base- There has no any legal base to record account for unregistered
firms in Bangladesh. This task is done on the willingness of the manager or
owner.
2. Limited goals- Account is recorded to calculate profit and loss and financial
condition of the firm and maintained in such a way so that the owner can
know the actual financial condition.
3. Applying single entry system- Maximum unregistered firm of Bangladesh
keep record of accounts by applying single entry system. In this system there
is a possibility of mistakes and frauds. Here total and net profit cannot be
calculated accurately.
4. To follow accounting policy and procedure- Accounting policy and
procedures are not following accurately in the unregistered firm. Accounting
procedure cannot be applied accurately because of following single entry
system.
5. Lack of experienced accountants- Account is recorded by inexperienced
accountants for whom it is not possible to justify the accuracy of the account.
6. Absence of audit- Audit of account is not performed in these organizations.
As a result, the report is not published by justifying accuracy.
7. Lack of technology- As these organizations are small in size, there have no used
the technology.
B. Accounting system for registered firms
Limitations of registered firms are as follows-
1. Lack of proper use of accounting policy and procedure- Among registered firms,
Private limited companies don’t apply the accounting policy and procedures

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 accurately. As a result, number of problems faced while preparing financial
statements.
2. Complexity in inter firm comparison- Registered firms follows different
accounting policy to prepare financial statement for which there have complexity
in inter firm comparison.
3. Weakness of legal base- Nationalized industries is controlled under “Bangladesh
Industrial Acts, 1972”. In this Act, there have rules for preparing account but have
no any rules for preparing financial statement. As a result, financial statement is
failed to fulfill the need of users.
4. Qualitative value of accounting data- many organizations didn’t follow the
international standards while recording accounting information. For this reason,
user of accounting data faces many problems.
5. Weak accounting system- There has lack of experienced employees in the
accounts section of many registered firms for which accounting system cannot be
maintained properly. So it is necessary to appoint available experienced people
for performing accounting activities.
6. Lack of comparative information- According to the “Section 185 of Companies
Act, 1994”, it is compulsory to show the accounting information of previous year
while presenting data of current year.

3 Accounting Practices of Kazi Farms

3.1 Overview
Kazi Farms is one of the leading poultry farms in our country its commencements 18 years ago.
It was built up in 1996 as a hatchery for imported eggs; the next year is begun its own parent
ranches. In 2004 creation began in their grandparent (GP) farms. It is continuing to remain with
the latest products as services, considering consumers clients perspective. Kazi farms have thus
been able to keep their customers and clients trust while upholding their reliability across time.
Notwithstanding delivering reproducer sustain to meet their own prerequisite, in 2006 they set
up the biggest and most progressive encourage process the in the nation with specialized help
from Cargill USA for cobb 500 which is recognize as worldwide to be the best broiler. They have
additionally fewer amazing guardians of the popular Ross cooked from Aviagen USA. As to they
are the Bangladeshi distributer for Hyaline USA, the world driving layer brccd. They were the
first exporter of hatching eggs and day-old chicks from Bangladesh. Now Kazi farms, broiler
grand-parents (GP) farms, hatcheries, feed mills and sale officers in different locations through
Bangladesh. Kazi Farms group is one of the biggest businesses the poultry industry in
Bangladesh. Around 35% of all chicks sold in Bangladesh originate from Kazi Farms. Kazi Farms
has started fares to the Middle-East and Nepal and is dealing with the tasks of an oven rearing
ranches in the Sultanate of Oman. By rapidly increase its production of day old-chicks in the last
ten year; Kazi Farms has enabled the poultry farmers of country to expand their operation.

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Thus, Kazi Farms has played a key role in bringing about called “poultry revolution” of
Bangladesh. This has increased the availability of protein in the country, and has created
unprecedented income generation opportunities for rural households all over the country.

3.2 Accounting Policies and Procedures of Kazi Farms

The reason for an accounting framework is to precisely record every money related exchange
and guarantee that every single monetary exchange is bolstered by solicitations, timesheets and
other documentation. The kind of accounting framework regularly relies upon the extent of the
association. A few associations may have automated bookkeeping framework, while other
utilizes a manual framework to record every exchange in a record. In the wake of having a short
inquiry answer session with the worker of the Kazi Farms Group and the sister concerns records
individual I have seen in excess of a couple of challenges. Among those, the most on edge
certainty was they have no composed accounting approaches and techniques. It is worth to say
that, among three noteworthy misbehavior 38% reacts stressed over the accounting approaches
also, system. I feel composed accounting approaches and techniques are imperative and
obligatory for such a major constrained organization, to the point that has a mentionable
venture. There is no alternative to keep up a solid accounting data framework without
actualizing a composed accounting arrangements and methodology.

A. Composed Accounting Policies:

Accounting methodologies are fundamental to any association to continue with
consistency and to set up a standard for essential administration. In perspective of
methodologies, techniques are made and taken after, and what's more paying bills, cash
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 organization and arranging. Accounting courses of action ought to agree by top
organization and don't change much in the midst of the years. They are delivered for
whole deal use, reflecting firms' characteristics and ethics. Accounting arrangements and
strategies help HR to run business without consistent supervision of the specialist. These
are uncomplicated, straightforward and to seek after. For delineation, if organization has
the rules of not tolerating checks, at that point representatives don't acknowledge
checks, regardless of whether there is nobody to check them. Composing accounting
strategies and systems might be muddled, yet they will encourage in the long haul,
keeping forms predictable and plain. Accounting approaches can be about any money
related issue, for example, solidification of records, deterioration strategies, altruism,
stock estimating and innovative work costs. Arrangements may shift with singular
businesses and parts. The business accounting arrangement and methodology covers
various territories: general accounting rules, money related revealing, every day
accounting practices and period close and other accounting reports. At amity gritty level,
this may incorporate the organization's position on merchant installments, worker cost
repayments or travel approaches, for instance. Very much characterized corporate
bookkeeping approaches guarantee that accounting hones over the business stay
predictable, that money related workers take after sound accounting standards and
hones and that every single money related exchange are precisely recorded and kept up
as indicated by the arrangements characterized. Nonattendance of accounting
approaches and methods greatly affects the KFG. Accounted are too feeling
questionable, confounded and shaky, which shouldn't occur if there were an
arrangement furthermore, method guideline control. Despite the fact that building up a
composed accounting arrangements and strategies manage is costly, difficult and
tedious however over the long haul it turns out to be extremely economical and came
about to a solid records division.

B. Cash basis and Accrual basis

One more key advised practice that I have turned out to be mindful of is that KFG
recorded their exchanges in Cash basis rather than accrual basis. Be that as it may, under
this way the income acknowledgment and the coordinating key are ignored. Likewise,
money income statements are not in congruity with generally accepted accounting
system. Without a doubt, some independent company cash basis approach. Under the
cash basis accounting, income is recorded just when the cash is accept and cost are
recorded just when the cash is paid. The assurance of pay on the money premise rests
upon the gathering of salary and the portion of expenses. The main positive thing is 35%
reacted stand against cash basis and relate change into accrual basis.

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For instance, If Kazi Farms Group signs an agreement to develop a firm’s product 7,
00,000 taka. In the January, Kazi farms Group starts development, caused cost of 5,
00,000 taka using a credit card and by the finish of January conveys a total farms
products to the purchaser. In February, Kazi farms gather 7, 00,000 taka from the client.
In March Kazi farms Groups pays the 5, 00,000 taka due to the loan bosses. The net
Income from every month under cash basis accounting and accrual basis accounting are
as per the following.

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 Tables: income statement of cash basis

Table: income statement of cash basis

Huge contrasts between Cash Basis and Accrual Basis:

1. There are no receivables or payables in a cash basis asset report.
2. For private ventures that are inside sure wage imposes limits, there may not be stock
on a cash basis accounting report.

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 3. Only the money collected that are gathered from deals and other income exercises
are appeared as income in real cash basis reports. On accrual basis reports, income
incorporates both gathered and uncollected sums.
4. Only the money paid to sellers and others are appeared as cash basis reports, though
on accrual basis reports, costs incorporate both paid and unpaid sums. The
accompanying are cases that utilization an accrual basis framework
5. Revenue is perceived before money is received and is portrayed as collected income.
It is sorted as a present resource. The most widely recognized illustration is accounts
receivables that outcome from deals to clients
6. Cash is received before the income is earned and is depicted as conceded income. It
is ordered as a present obligation. For instance, a client may pay you a store for a
benefit. In any case, you don't perceive the income until the point that you have
played out the administration. Another case may be prepaid rental wage. An
inhabitant may pay you on a quarterly basis for lease; however you just perceive
every month's lease as it happens.
7. Expense is perceived before cash is paid and is depicted as accrual cost. The most
Regular case is accounts payables that outcome from buys from sellers. Another Case
is paying enthusiasm on a bank advance on a quarterly basis yet recording the
accrual. Enthusiasm on a month to month premise.
8. Cash is paid before the cost is brought about and is described as a conceded or
prepaid cost. It is sorted as a present resource. For instance, you may pay your
accident coverage each six months, yet you just remember one month of cost at any
given moment.
9. It is disturbing time to change accounting framework from cash basis to accrual
basis. Just experienced also, account foundation individual can successfully actualize
this new immaculate approach, as indicated by GAAP. Another adaptable method to
build up this laborer through preparing and workshop, subsequently, they could be
adequately actualize and construct an incredible breakthrough.

C. Bank Reconciliation
Bank compromise articulation is a report which looks at the bank adjust according to
organization's accounting records with the adjusted expressed in the bank statement. It
is run of the mill for an organization's bank alter as indicated by accounting records to
fluctuate from the balanced by bank statements in view of timing contrasts. Certain
trades are recorded by the components that are invigorated in the bank's systems after a
particular time slack. Besides, a couple of trades are spoken to in the bank's monetary
structure before the organization wires them into its own specific accounting system.
Such arranging contrasts appear as obliging things in the Bank Reconciliation Statement.
The inspiration driving setting up a Bank Reconciliation Statement is to perceive any

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inconsistencies between the accounting records of the substance and the bank other
than those in view of run of typical arranging contrasts. Such differences may exist in
view of a botch as for the organization or the bank. While talked about concerning the
bank compromise I discovered it is one of the enormous issues in Kazi farms gatherings.
In the meantime, 30% react concurred with me, in this manner; I keep it as a third
significant inconvenience in my report.

4 Recommendations
Kazi Farms Group has an extremely attractive number of exchanges. To stay with the
clearer and more let it to grow up, it should put to a great degree great thought to its
accounting framework. In request to track all the exchange and make them instructive
organization should start computerized program. Besides, it must change its exchange
recording framework from cash basis to accrual basis with the goal that the month to
month report won't demonstrate negative adjust and the other way around. To be a
perfect organization, kazi farms group ought to beat their major issues then well ordered
it could challenge any genie problem in the up and coming days. It is worth to say that,
previously execute an appropriate accounting framework, KFG need to prepared and
additionally procure new worker who have encountered a fitting accounting framework.
What's more, on the off chance that they execute computerized programming, it would
be more as productive as costly and preparing on programming to the current and
additionally new worker is again expensive.

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5 Conclusions
Kazi farms groups are a notable name in Bangladesh for it managing their customers. As
indicated by their administrative, advertising and financial arranging Kazi farms can
proceed flawlessly. Moreover, The Accounts department took the test and demonstrated
their quality of mind by the timely distribution of yearly Annual Financial Reports. Every
last division in the division should be supplemented. In this report, I have endeavored
my level best to see organization accounting systems and dealings used by KFG. What
and how KFG use accounting information for judgment and outer monetary announcing
close by portraying the systems and systems of accounting information. In this report, I
include our acquired nature from accounting course and endeavor to fit in with the
methodologies strategy and systems took after by the organization.

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