Record Keeping and Financial Performance of Financial Institutions in Rukungiri District Uganda.
The purpose of this study was to investigate the effects of bookkeeping on the financial performance of Financial Institutions in Rukungiri District in Kenya. This study was guided by the following three research objectives; To assess the effects of record keeping in financial institutions; To find...
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| Format: | Thesis |
| Language: | English |
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Kabale University
2024
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| Subjects: | |
| Online Access: | http://hdl.handle.net/20.500.12493/2190 |
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| Summary: | The purpose of this study was to investigate the effects of bookkeeping on the financial performance of Financial Institutions in Rukungiri District in Kenya. This study was guided by the following three research objectives; To assess the effects of record keeping in financial institutions; To find out the indicators of financial performance in financial institutions; To examine the relationship between record keeping and financial performance of financial institutions. The study established that there was a positive significant relationship between the financial performance of Financial Institutions in Rukungiri District and the usage of cashbooks. The study also established that the majority of the respondents were in agreement that only valid cash payments are made (94%), all cash payments that are incurred are recorded (87%), cash payments are charged to the correct accounts (93%), cash payments posted to correct payable accounts and to the general ledger (79%), cash payments are recorded in the correct accounting period (94%). The study further established that there was a positive significant relationship between the financial performance of Financial Institutions in Rukungiri District and the usage of ledgers. The study further established that majority of the respondents were in agreement that all the business income are recorded in revenue account (79%), all expenditures are recorded in the expense account (81%), purchases ledger shows all the unpaid dues of the business (74%), purchases ledger shows all purchases returns of the business (79%), sales ledger shows all the amounts owed to the business (94%), sales ledger shows all returns to the business (73%). The study also established that there was a positive significant relationship between financial performance of Financial Institutions in Rukungiri District and maintenance of bank reconciliation. The study recommends the need for Financial Institutions to continue using cash books in their accounting so as to enhance their financial performance. In addition, the study recommends the need for Financial Institutions to ensure their work force especially those in the finance department should be undergo periodic trainings on how to handle cash book entries. This will enhance their capacity while at the same time enhancing the financial performance of their respective organizations. The study recommends the need for Financial Institutions that are yet to adopt the usage of ledgers in their accounting procedures to ensure they do so as this will go a long way in enhancing their financial performance. |
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