ACCOUNTANCY 6 – COMPANY ACCOUNT 1.4
DR REDEEMABLE DEBENTURES ACCOUNT CR1st yearDeb.Redemption300015,00031.12.90Bal.c/d12,00015,00015,000Balance b/d12,000 DR DISCOUNT ON ISSUE DEBENTURE ACCOUNT CRDeb.Appl.&Allot75031.12.90P & L250Bal. c/d500750750 DR DEBENTURE REDEMPTION ACCOUNT CR311.2.91cash3000Reedemable Deb.300030003000Discount on deb.
ACCOUNTANCY A LEVEL(FORM SIX) NOTES – COMPANY ACCOUNT 1.1
COMPANY ACCOUNT 1.1What is a company?It is a voluntary association of persons formed to carry out some business for profit , with capital divisible into
ACCOUNTANCY A LEVEL(FORM SIX) NOTES – COMPANY ACCOUNT 1.7
COST CLASSIFICATIONCost may be classified under three categories;i.) Fixed and variable costii.) Direct and indirect costiii.) Cost classification by functionFIXED AND VARIABLE COST. (FIXED COST)FIXED
ACCOUNTANCY A LEVEL(FORM SIX) NOTES – COMPANY ACCOUNT 1.6
(iv) Insurance Policy method:-Instead of investing the sum in securities, the same is paid by way of an Insurance premium to an Insurance company which
ACCOUNTANCY A LEVEL(FORM SIX) NOTES – STOCK VALUATION
STOCK VALUATIONConcept;Stock/inventoryThe Tanzania statement of Accounting Guidelines No 2 which deals with the valuation of inventories in the context of the historical cost system states
ACCOUNTANCY A LEVEL(FORM SIX) NOTES – PARTNERSHIP (CONTRACT).(4)
PARTNERSHIP (CONTRACT).Death of a partner:From the Accountancy point of view, the only difference between retirement and the death of the partner is that in the
ACCOUNTANCY 6 – COMPANY ACCOUNT 1.2
DR APPLICATION & ALLOTMENT CRBank(refund)80,000Bank(applied money)380,000ordinary share capital(10+5)x2500)375,000Bank(allot money)325,000premium share(10×25,000)250,000705,000705,000 DR ORDINARY SHARE ACCOUNT CRBalance c/d1,250,0001st call375,000Application &allotment375,0002nd call500,0001,250,0001,250,000Balance b/d1,250,000 DR 2ND CALL ACCOUNT CRordinary
ACCOUNTANCY A LEVEL(FORM SIX) NOTES – WEAKNESS OF ESTIMATION METHOD
WEAKNESS OF ESTIMATION METHODThe stock estimation technique covered has assumed that the gross profit margin is stable in the period of estimation.They also assume that