Full Project-ACCOUNTING INFORMATION SYSTEM IN A TRANSPORT ORGANIZATION (A CASE STUDY OF NIGERIA RAILWAY CORPORATION)

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CHAPTER ONE

INTRODUCTION

1.1  BACKGROUND OF THE STUDY

The Nigeria Railway corporation (NRC) has been in existence for decides. It is regarded as the largest transport corporation in Nigeria and has a high network operations. It is alms are spread to the six geo political zones in Nigeria. The Nigeria railway corporation that looks like an old man today was as old as a day old body far decades ago. It had her birth in 1898, that is, one hundred and seven years ago. This happened in Lagos due to the approval by the Lagos Government. Today, the existence and services of Nigeria railway corporation Eastern Division is one of the division In Nigeria. This Division covers the entire Eastern part of Nigeria. The corporation camer initial existence in the Eastern part of Nigeria in the year 1913. Thee initial place was harbour that is now called port-Harcourt in 1915 and ran a new railway to the near by coal mines.

The discovery of coal ion Enugu and a potential deep water harbour found 64km from the sea, up the harbour bonny river led to the extension of Nigerian railway corporation into Enugu. The eastern line was extended north wards in 1924. The line from Kaduna joined that from Enugu near Kafarchan in 1926. The 910.4 km line (the line that run from the East to the Northern part of Nigeria was opened to traic in 1927. The Marudai bridge was completed in 1923. A rail of 100.8km was built to js, on the Bauchi, plateau. North west Gusau was connected with Zaria and an extension to kauna Namoda in 190. By 1954 the railway density of 9.0-44.8km per thousand. The system was a single track of 3 feet 6 in changuag, except for the Bauchi light railway, which was 2 feet, 6 inches Guage. During the above stated periods, the Nigerian railway corporation held a premier position in the transportation industry in Nigeria, carrying almost all traic for exports from the hinter lands to the coasts and imported manufactured goods coming into Nigeria.

The Railway was commanding sixty six percent of the transportation in the transport industry in 19388- 19398, sixty three percent in 1948- 49 and sixty one percent in 1952 – 1953. Ever since 1898, the Nigeria railway corporation has contributed immenably towards the improvement of social life and the development of the national economy. This is through to be extended to every part of the country that is the advantages which would lead to permanent prosperity confident was such an ultimat5e triumph of the railways. However, regardless of the huge success made by the corporation, it is facing a hard time.

1.2  STATEMENT OF THE PROBLEM

Nigerian railway corporation which dominated the transport sector of the economy in the sixties is presently being delegated by other means of transport such as road; sea; etc. transport. The corporation has lost her passengers and freight mainly to road transport. This is as a result of the inability of the corporation to compete effectively in order to meet the age-longed challenges. Ordinarily, there should have been an even growth in both road and railway transport; but the rail transport seems neglected. The truth of the matter is not neglect par se, but a problem of cash flow difficulty and management. These act the purchase of spare par; repairs, payment of salaries, inadequate infrastructure support and enhance services rendering. Given the above condition of the Nigerian Railway Corporation in the nations transport industry, the problem which look for detailed analysis and solution includes the following questions;

1.  Is the accounting information used in the corporation adequate for management’s short and long term plans?

2. Have the accounting officers in the corporation the needed professional skill to cope with demands of their job?

3.is there any serious eort made by the corporation to boost operation?

4.Do the accounting officers perform their duties without the interference of the management?

5.What is the mode of appointing the chief accounting of the corporation?

Answers to these problems or questions above constitutes the basic problem of the researchers work.

1.3  STATEMENT OF PURPOSE

Bearing in mind the aforementioned problems study is aimed at finding out among other things such as:-

1.The organization of accounts department in Nigeria Railway corporation with particular interest in the Eastern division of the corporation and how the accounts department contributes to the achievement of overall goals f the corporation.

2. Whether the accounting information is actually one of the eective management tools in the Railway Corporation.

3. Whether the accountants in the corporation adequately perform their duties in conformity with the statement of accounting standard [SAS].

4.what are the tools of the accounts department to the performance of the individual workers in terms of their output.

1.4. STATEMENT OF HYPOTHESIS

1. Ho:- Accounting information is indispensable in the management of Nigeria Railway corporation.

2. Ho:- The activities of unqualified and incompetent accounting officers are not responsible for the poor performance of the accounts department in NRC.

3. Ho:- The absence of computer system application acts the timeless, accuracy and availability of accounting information in NRC.

Hi: The absence of computer system application dose not sect the timeliness, accuracy and availability of accounting information in NRC.

1.5. SIGNIFICANCE OF THE STUDY

The role of accounting information in the management f large business organization such as can not be over – emphasized. It is based on the fact that the research it to study and appraise. Accounting information system as a tool management using the URC and possible ways of minimizing the problems better and enhanced performance in the corporation. The knowledge about these problems and their way out will help remedy other transport corporation in similar state. this study is also envisaged to make recommendation that would boost the operational performance f accounts department in the Nigeria Railway corporation if being implemented. Beside, the above significance areas of this study, this work is to certify the condition for the award of HND certificate and as well serve as a term of reference for those who may be interested.

1.6. SCOPE, LIMITATION AND CONSTRAINTS

This study is on the Nigerian Railway corporation Eastern Division. The limitation of this study is Nigerian Railway corporation Eastern Division. This is due to some constraints. Those constraints were financial difficulties which prevented the running down from one relevant Railway corporation Division to another for sources of information necessary for this study. Another constraints are the time limit within my disposal. The demand from the academic activity and limit within which this study is to be presented constituted the constraint.

1.7. DEFINITION OF TERMS

FREIGHTS: This is the volume f revenue acquired by all haulage of goods by the good train.

PASSENGERS’ FARE: This comprised of the returns made from ticket sales and penalties by defaulting passengers.

ROLLING STOCK: This include the entire carrying system which is made up of the locomotive engine, coaches, wagons, [both covered and uncovered] and tanks. They are used in the haulage of goods and in carrying passengers.

LOCOMOTIVE ENGINE : This is the engine mechanism at the head of the rolling stock that pulls them along the track in the movement of goods and passenger’s trains.

COACHING: These are revenue from country’s produce, luggage, parcel and livestock.

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