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PROJECT TOPIC: THE SOURCE AND APPLICATION OF FUNDS TO A COMMERCIAL BANKING SECTION (A CASE STUDY OF ACCESS BANK PLC ENUGU BRANCH)

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CHAPTER 1:   INTRODUCTION

Background of the Study

The sources of funds in an organization denotes the various ways in which cash inflows to operate the business is realized.  The followings are some of the ways cash came into a business

Through an increase in liability

Through an increase in net worth

Through a decrease in asset

Through a net profit after tax

Through sales of shares, preferred or common stock

It also snows ways how an extra money comes into the organization through consultancy services, borrowing in form of loan.  Summarize sources of funds to any organization devotes all the ways money comes into an organization for its operational utilization and for achieving its stated goals and objectives.  However for an organization to thrive well it must also spent money to achieve it stated goals and objectives, thus application of funds refer to the various ways the sourced funds are put to usage in order to increase the value of fixed or working capital.  The followings are the various ways funds can b e put to use;

Where there is an increase in assets

Where there is a decrease in liability

Where there is a payment of cash dividend

When shares are purchased

Where there is a decrease in Net worth.



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