SS 3 Financial Accounting (1st, 2nd & 3rd Term) Archives

THE FINAL ACCOUNTS OF LIMITED LIABILITY COMPANIES

Format of Trading Profit & Loss Account Trading Profit & Loss account for the year ended 31/12/9x Opening Stock x Stock x Add purchases x Less return inward x Less return outward x x Gross loss x Cost of goods available x Less closing stock x Cost of sales x Gross profit c/d x X […]

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FINAL ACCOUNTS OF A PARTNERSHIP BUSINESS

PROFIT AND LOSS APPROPRIATION ACCOUNT OF A PARTNERSHIP This, as the name implies, is the account where either the profit or loss of the partnership business is shared between or among the partners as stipulated in the partnership agreement. The profit and loss appropriation account marks the beginning of the difference between the final accounts

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COMPANY ACCOUNTS

A Company is a business owned, managed, controlled and financed by association of people which possess legal entity with the usual motive of maximizing owners’ wealth. KIND OF COMPANIES There are three kinds of companies. They are: Company Limited by Share: This is a company whose owners liabilities is limited to the value of share

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ISSUE OF SHARES

Definition of Shares Shares can be defined as units of capital of ownership of a limited company. It is an ownership right in a company. A company cannot commence business until it raises capital by selling shares to the public for subscription. CLASSES OF SHARES There are three classes of shares in a limited liability

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ADMISSION OF PARTNERS, GOODWILL AND REVALUATION OF ASSETS

ADMISSION OF NEW PARTNERS This occurs when a new partner is admitted into an existing partnership business. The reasons for such admission usually are: expiration of old partnership agreement, to inject in more fund, bring in a specialist, death of an old partner, etc. However, it will be unfair to the existing partners for a

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PARTNERSHIP ACCOUNTS

PARTNERSHIP can be defined as the relationship which exists between two or more persons who are carrying on business in common with a view to making profit. The rules governing the conduct of a partnership business is contained in the document known as the Deed of Partnership or Articles of Partnership or Partnership Agreement.

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DISSOLUTION OF PARTNERSHIP

Meaning To dissolve a partnership means to bring an existing partnership business to an end. This entails selling the assets of the business, paying its creditors and other liabilities and sharing the balance of cash left between or among the partners in the agreed ratio. Reasons for Dissolution Any of the following reasons can lead

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SS 3 Financial Accounting (1st, 2nd & 3rd Term)