Mr. Peter Tunde

ACCOUNTS FOR NOT-FOR-PROFIT ORGANIZATIONS LEARNING OBJECTIVES

There are several organizations that are established and run for the purposes of meeting the social, cultural, health and , at times, educational needs of the citizens. Such organizations are not set-up for the purpose of making profits from their activities and are thus called not-for-profit organizations. Examples include government-owned hospitals, voluntary health and welfare …

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SINGLE ENTRY AND INCOMPLETE RECORDS

Introduction This topic is about how to prepare trading, profit and loss account under an incomplete record or single-entry accounting system. Meaning This is system of accounting of financial transactions that are recorded without conformity with the rule of double entry’. The records so prepared based on a single entry or one-leg entry by any …

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ACCOUNTING RATIOS AND INCOMPLETE RECORDS

Under a situation whereby a firm or business accounting records were destroyed as a result of fire, flood or any other forms of natural disasters, such firm or business could still prepare its final account despite the facts that the information available will be very inadequate. In order to prepare the final accounts under such …

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ADMISSION OF NEW PARTNER AND RETIREMENT OF AN EXISTING PARTNER IN CONTINUING BUSINESS

Partnership changes usually occur during a financial year and the accounting records are contrived without interruption. Final accounts are prepared at the end of the financial year. When a partner leaves the firm or a new partner joins, it marks the end of one partnership and the beginning of a new one. No records and …

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GOODWILL

Goodwill is the amount by which the value of a business as a going concern exceeds the value of its net assets, if they were sold separately. It is an intangible asset because it cannot be touched or seen physically. Goodwill may not be shown in the balance sheet for reasons that will be explained …

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THE THREE – COLUMN CASH BOOK

The three-column cash book is a specialized version of the traditional cash book used in accounting. It contains three separate columns for recording cash transactions: the cash column, the bank column, and the discount column. Each column serves a specific purpose and helps in maintaining an accurate record of cash inflows and outflows. Here’s a …

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CLASSIFICATION OF LEDGER ACCOUNTS

There are two main classes of ledger accounts. These are Personal Accounts Impersonal Account. Impersonal Accounts are sub-divided into two, namely real account and nominal account. (1) Personal Accounts: These are accounts in which transactions with persons and other businesses and organizations are recorded. Debtors and creditors’ accounts are typical examples. If the balances are …

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CLASSES OF LEDGER

THE LEDGER This is the principal book in which accounts are kept. These accounts are usually referred to as ledger accounts. They are so called because each occupies a specific page a number of pages or a section of a page in the ledger. Note: A balance Sheet, on the other hand is not a …

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BOOK-KEEPING 2ND TERM SCHEME OF WORK

BOOK-KEEPING CLASS: SS 2 Revision of 1st Term work Classes of ledger State classes of ledger Identification of the column of a ledger Classes of ledger Posting of transaction into a ledger Working exercise. Three column cash book Explain the column cash book Identification of the columns of a three column cash book. Three column …

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PRINCIPLE OF DOUBLE ENTRY

Definition: Double entry book keeping is the system of keeping account, which take advantages of the two-fold aspect of every transaction, whereby one account that receives is debited and another account, which gives, is credited. The following simple rules of double entry should be fully understood and memorized. for every credited entry in an account …

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CONTRA ENTRY

Contra is a latin word which shows that cash has been withdrawn from the office and deposited in the bank or withdrawals of cash from bank for office use. It is an entry involving the payment of cash into the bank and is denoted by “C” in the folio column. It may simply be defined …

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DOUBLE COLUMN CASH BOOK

Meaning: The two column Cash book so-called because for both debit and credit entries, it has two columns, one for recording cash transactions and the other for bank transactions. It is therefore used for recording mixed cash and bank transaction. Accounting Entries All payments in cash are recorded by crediting the cash column of the …

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Single Column Cash Book

INTRODUCTION: This is the book for recording receipts and payments of money in cash or cheque. NOTE: No credit transaction should be recorded in the cash book. CASH ACCOUNT This is the account which is used for recording money received and paid with cash. The balance is referred to as CASH IN HAND. All …

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STOCK VALUATION

Methods of stocks valuation are devices which aim to deal with some of the problems. W shall consider some of those commonly adopted. (I) FIRST-IN-FIRST OUT (FIFO) METHOD This method assumes as the name indicates that items of stock were sold during the year in the order in which they were originally bought. Goods that …

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THE THREE – COLUMN CASH BOOK

This is similar to the two column cash book except that the discount column is added to both the debit side and the credit side. The debit side, it will be recalled, records receipts while the credit side records payments. The purpose of the discount column in the debit side is, therefore, to record discounts …

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CLASSIFICATION OF LEDGER ACCOUNTS

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CLASSES OF LEDGER

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SOURCES OF CAPITAL

Sources of capital refer to the various ways or channels through which businesses or individuals can obtain funds or financial resources to support their operations, investments, or other financial needs. These sources can include: 1. Equity capital: Equity capital represents funds raised through the sale of ownership interests in a business. It can be obtained …

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THE SOLE TRADER

THE SOLE TRADER A sole trader, also known as a sole proprietor or sole proprietorship, is an individual who owns and operates a business on their own. In this business structure, there is no legal distinction between the owner and the business entity. The sole trader is personally responsible for all aspects of the business, …

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BUSINESS ORGANISATION

What is a Business? The term “business” describes the activities of individuals, institutions or organizations to promote and distribute goods and services satisfying human wants in society at large. The business also refers to the activity of providing goods or services to customers in exchange for money or other valuable considerations. It involves various economic …

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