{"id":2280,"date":"2023-10-02T11:54:01","date_gmt":"2023-10-02T11:54:01","guid":{"rendered":"http:\/\/localhost\/ecole9ja\/?p=2280"},"modified":"2023-10-02T11:56:20","modified_gmt":"2023-10-02T11:56:20","slug":"week-4-ss1-second-term-financial-accounting-notes","status":"publish","type":"post","link":"https:\/\/ecolebooks.com\/nigeria\/posts\/week-4-ss1-second-term-financial-accounting-notes\/","title":{"rendered":"Week 4 &#8211; SS1 Second Term Financial Accounting Notes"},"content":{"rendered":"<p><strong>WEEK FOUR<br \/>\n<\/strong><strong>ACCOUNTING RATIOS AND INCOMPLETE RECORDS<br \/>\n<\/strong>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.<br \/>\nIn order to prepare the final accounts under such situation, the accountant need to see his or her past experience and ingenuity to prepare the account. In addition, the accountant can make use of some accounting ratios such as the following:<\/p>\n<ul>\n<li>\n<div> Mark \u2013 up\n<\/div>\n<\/li>\n<li>\n<div> Margin\n<\/div>\n<\/li>\n<li>\n<div> Rate of turnover\n<\/div>\n<\/li>\n<li>\n<div> Manager&#8217;s commission\n<\/div>\n<\/li>\n<\/ul>\n<p><strong>Mark \u2013 up<br \/>\n<\/strong><img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100223_1153_Week4SS1Se1.png\" alt=\"\"\/>This is the ratio that expressed profit against the cost price of goods. The profit will be expressed as a percentage or fraction or decimal to the cost price.<br \/>\nMark \u2013 up =<\/p>\n<p>\u00a0<br \/>\n\u00a0<br \/>\n\u00a0<br \/>\n\u00a0<br \/>\n\u00a0<strong>Illustration 5<br \/>\n<\/strong>A business made N10,000 profit from goods cost N50,000. You are required to calculate the mark-up.<br \/>\n<img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100223_1153_Week4SS1Se2.png\" alt=\"\"\/><strong>Solution<br \/>\n<\/strong><img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100223_1153_Week4SS1Se3.png\" alt=\"\"\/>Mark-up =<br \/>\n               =<br \/>\n     =  20% or 0.2 or<br \/>\n<strong>Margin<br \/>\n<\/strong><img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100223_1153_Week4SS1Se4.png\" alt=\"\"\/><img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100223_1153_Week4SS1Se5.png\" alt=\"\"\/>This is the ratio of profit to sales or selling price. It can as well be expressed as a percentage or fraction or decimal to sales.<br \/>\nMagin =<br \/>\n<strong>Illustration 6<br \/>\n<\/strong>A firm made N15,000 profit from a sales of N60,000. You are required to calculate the margin.<br \/>\n<strong>Solution<br \/>\n<\/strong><img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100223_1153_Week4SS1Se6.png\" alt=\"\"\/>Margin =<br \/>\n             =<br \/>\n            = 2.5% or 0.25 or \u00bc<br \/>\nIn a situation whereby the mark-up is given, as well as, the selling price then the mark-up must be converted to margin. This can be explained as follows:<br \/>\nSP = Selling price<br \/>\nCP = Cost price<br \/>\nProfit = P<br \/>\nSP = CP + P\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(i)<br \/>\nSP = CP = P\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(ii)<br \/>\nSP \u2013 P = CP\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(iii)<br \/>\nMark-up =   =<br \/>\nMargin =   =<br \/>\n<strong>Conversion of mark-up to margin<br \/>\n<\/strong>Mark-up =  <strong><br \/>\n\t\t\t<\/strong>to margin =<strong><br \/>\n\t\t\t<\/strong>=<br \/>\nMark-up =  to margin  =  =<br \/>\nMark-up =  to margin =  =<br \/>\n<strong>Conversion of margin to mark-up<br \/>\n<\/strong>Margin =  to mark-up =   =<br \/>\nMargin =  to mark-up =   =<br \/>\nMargin =  to mark-up = <strong><br \/>\n\t\t\t<\/strong> = <\/p>\n<p>\u00a0<br \/>\n\u00a0<strong>Illustration 7<br \/>\n<\/strong>A business cost price is 100% and profit is 10%. Calculate mark-up and margin.<br \/>\n<strong>Solution<br \/>\n<\/strong>Mark-up =  =  =  = 0.1<br \/>\nMargin =  =  =  =  = 0.091<br \/>\n<strong>Illustration 8<br \/>\n<\/strong>The following data were extracted from the books of God Grace Venture.<br \/>\nOpening stock\u00a0\u00a0\u00a0\u00a016,000<br \/>\nSales\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0400,000<br \/>\nClosing stock\u00a0\u00a0\u00a0\u00a020,000<br \/>\nThe business uses a uniform mark-up rate of 33 %<br \/>\nYou are required to calculate:<\/p>\n<ol>\n<li>\n<div>Profit\n<\/div>\n<\/li>\n<li>\n<div>Purchases\n<\/div>\n<\/li>\n<li>\n<div>Prepare the trading account\n<\/div>\n<\/li>\n<\/ol>\n<p>\u00a0<br \/>\n\u00a0<br \/>\n\u00a0<br \/>\n\u00a0<br \/>\n\u00a0<strong>Solution<br \/>\n<\/strong>Mark-up\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a033 % =<br \/>\nMark-up                 =  = 25%<br \/>\nMargin \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 =  =<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a04P = 400,000<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0P  = 400,000 \u00f7 4<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0P  = N100,000<br \/>\nCost of sales\u00a0\u00a0\u00a0\u00a0= N400,000 \u2013 N100,000 = N300,000<br \/>\n<img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100223_1153_Week4SS1Se7.png\" alt=\"\"\/>Purchase\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0= 300,000 + 20,000 \u2013 16,000 = N304,000<br \/>\n<strong>God Grace Trading Account<\/p>\n<div>\n<table>\n<tbody>\n<tr>\n<td>\u00a0<\/td>\n<td>N<\/td>\n<td>N<\/td>\n<\/tr>\n<tr>\n<td>Sales<br \/>\n<strong>Less: Cost of Sales<br \/>\n<\/strong>Opening stock<br \/>\n<strong>Add: <\/strong>Purchases<br \/>\n<strong>Less: Closing stock<br \/>\n<\/strong>Profit<\/td>\n<td>\n\u00a0<br \/>\n\u00a016,000<br \/>\n304,000<br \/>\n<strong>320,000<br \/>\n<\/strong>(20,000)<\/td>\n<td>400,000<\/p>\n<p>\u00a0<br \/>\n\u00a0<br \/>\n\u00a0300,000<br \/>\n<strong>100,000<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p><\/strong><br \/>\n\u00a0<strong>Stock Turnover<br \/>\n<\/strong>This is also called the rate of turnover. This is the number of times a business stock will be turned over within a given period of time. It is computed as follows:<br \/>\nRate of turnover\u00a0\u00a0\u00a0\u00a0=\u00a0\u00a0\u00a0\u00a0Cost of goods sold<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Average of stocks<\/p>\n<p>\u00a0It can also be expressed in numbers of days as follows:<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Average stocks (x 365 days)<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0     Cost of goods sold<\/p>\n<p>\u00a0Average stock is computed as follows:<\/p>\n<p>\t\t\t\tOpening stocks + Closing stocks<br \/>\n                                                      2<br \/>\n<strong>Manager&#8217;s Commission<br \/>\n<\/strong>This is an allowance granted to a business manager for a good performance and to encourage him or her to work harder in future. It is usually computed as follows:<br \/>\nPercentage of commission x Profit before commission<br \/>\n                   100 + Percentage of commission<br \/>\n<strong>Illustration 9<br \/>\n<\/strong>The following information was extracted from Folarin Ventures books in 2008.<\/p>\n<div>\n<table>\n<tbody>\n<tr>\n<td>\u00a0<\/td>\n<td>N<\/td>\n<\/tr>\n<tr>\n<td>Stock at 01\/01\/2008<br \/>\nStock at 31\/12\/2008<br \/>\nCreditors at 01\/01\/2008<br \/>\nCreditors at 31\/12\/2008<br \/>\nCash paid for goods during the year<br \/>\nMark-up 25%<br \/>\nSelling expenses<\/td>\n<td>130,000<br \/>\n110,000<br \/>\n80,000<br \/>\n100,000<br \/>\n400,000<\/p>\n<p>\u00a0<br \/>\n\u00a055,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>\u00a0You are required to calculate:<\/p>\n<ol>\n<li>\n<div>Margin\n<\/div>\n<\/li>\n<\/ol>\n<ol>\n<li>\n<div>Purchase\n<\/div>\n<\/li>\n<\/ol>\n<ol>\n<li>\n<div>Stock turnover in days\n<\/div>\n<\/li>\n<li>\n<div>Gross profit\n<\/div>\n<\/li>\n<li>\n<div>Sales\n<\/div>\n<\/li>\n<li>\n<div>Margin\n<\/div>\n<\/li>\n<li>\n<div>Prepare the trading, profit and loss account for the year ended 31 Dec. 2008.\n<\/div>\n<\/li>\n<\/ol>\n<p><strong>Solution:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0FOLARIN VENTURES<br \/>\n<\/strong><\/p>\n<ol>\n<li>\n<div>Margin =  or  = 20% or 0.2\n<\/div>\n<\/li>\n<li>\n<div>Purchase\n<\/div>\n<\/li>\n<\/ol>\n<p><strong>Creditors Ledger Control Account<\/p>\n<div>\n<table>\n<tbody>\n<tr>\n<td>\u00a0<\/td>\n<td>N<\/td>\n<td>\u00a0<\/td>\n<td>N<\/td>\n<\/tr>\n<tr>\n<td>Bal c\/f<br \/>\nCash paid<\/td>\n<td>100,000<br \/>\n400,000<br \/>\n<strong>500,000<\/strong><\/td>\n<td>Bal.  b\/f<br \/>\nPurchases (credit)<\/td>\n<td>80,000<br \/>\n420,000<br \/>\n<strong>500,000<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p><\/strong><br \/>\n\u00a0130,000 +110,000<br \/>\n<img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100223_1153_Week4SS1Se8.png\" alt=\"\"\/>2<br \/>\n<img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100223_1153_Week4SS1Se9.png\" alt=\"\"\/>440,000<br \/>\n<img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100223_1153_Week4SS1Se10.png\" alt=\"\"\/>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0=  120,000<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0    440,000<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0= 99.5 days = 100 days<\/p>\n<p>\u00a0<br \/>\n\u00a0<br \/>\n\u00a0<strong>Folarin Ventures<br \/>\n<\/strong><strong>Trading and Profit and Loss Account for the period Ended 31 December 2008<\/p>\n<div>\n<table>\n<tbody>\n<tr>\n<td>\u00a0<\/td>\n<td>N<\/td>\n<td>N<\/td>\n<\/tr>\n<tr>\n<td>Sales<\/td>\n<td>\u00a0<\/td>\n<td>550,000<\/td>\n<\/tr>\n<tr>\n<td>Opening stock<\/td>\n<td>130,000<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td><strong>Add: <\/strong>Purchase<\/td>\n<td>420,000<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td><strong>550,000<\/strong><\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td><strong>Less: <\/strong>Closing stock<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>440,000<\/td>\n<\/tr>\n<tr>\n<td>Gross profit<\/td>\n<td>\u00a0<\/td>\n<td>110,000<\/td>\n<\/tr>\n<tr>\n<td><strong>Less: <\/strong>Expenses<\/td>\n<td>\u00a0<\/td>\n<td>(55,000)<\/td>\n<\/tr>\n<tr>\n<td><strong>Net profit<\/strong><\/td>\n<td>\u00a0<\/td>\n<td>55,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p><\/strong><br \/>\n\u00a0Percentage of gross profit to sales = 110,000 x 100 = 20%<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0550,000<br \/>\nPercentage of Net profit to sales = 55,000 x 100 = 10%<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0       550,000<br \/>\n<strong>Illustration 10<br \/>\n<\/strong>Madam Adeotun produces the following data from her books.<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0N<br \/>\nStock at the beginning \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0      30,000<br \/>\nPurchases\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0      27,000<\/p>\n<p>\u00a0<br \/>\n\u00a0The mark-up on cost of sales is 50%. Her average stock during the year was N20,000. You are required to calculate:<\/p>\n<ol>\n<li>Closing stock\n<\/li>\n<\/ol>\n<ol>\n<li>Prepare trading, profit and loss account\n<\/li>\n<\/ol>\n<ol>\n<li>Ascertain the total amount of profit and loss expenditure that she must not exceed if she is to maintain a net profit on sales of 10%\n<\/li>\n<\/ol>\n<p><strong>Solution<br \/>\n<\/strong>Let x represent closing stock<\/p>\n<ol>\n<li>\n<div>Closing stock = x + 30,000 = 20,000\n<\/div>\n<p>     2\n<\/li>\n<\/ol>\n<p>                                    = x + 30,000  = 40,000<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0    = 40,000 \u2013 30,000<br \/>\nClosing stock = x  = N10,000<\/p>\n<ol>\n<li><strong>Madam Adeotun Trading, Profit and Loss Account<br \/>\n<table>\n<tbody>\n<tr>\n<td>\u00a0<\/td>\n<td>N<\/td>\n<td>N<\/td>\n<\/tr>\n<tr>\n<td>Sales (290,000 + 145,000)<br \/>\n<strong>Less: Cost of sales<br \/>\n<\/strong>Opening prayer<br \/>\n<strong>Add: <\/strong>Purchases<\/p>\n<p>\u00a0<strong>Less: <\/strong>Closing stock<\/p>\n<p>\u00a0Gross profit (0.5 x 290,000)<br \/>\n<strong>Less: <\/strong>Expenses<br \/>\nNet profit (0.1 x 435,000)<\/td>\n<td>\n\u00a0<br \/>\n\u00a030,000<br \/>\n270,000<br \/>\n300,000<br \/>\n(10,000)<\/p>\n<p>\u00a0<br \/>\n\t\t\t\t\t\t\t\t\t\t\u00a0<\/td>\n<td>435,000<\/p>\n<p>\u00a0<br \/>\n\u00a0<br \/>\n\u00a0<br \/>\n\u00a0<br \/>\n\u00a0290,000<br \/>\n145,000<br \/>\n(101,500)<br \/>\n<img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100223_1153_Week4SS1Se11.png\" alt=\"\"\/><img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100223_1153_Week4SS1Se12.png\" alt=\"\"\/><strong>43,500<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Exercise<br \/>\n<\/strong><\/li>\n<\/ol>\n<p><strong>Objective Questions<br \/>\n<\/strong><\/p>\n<ol>\n<li>\n<div>A firm&#8217;s average stocks is N50,000 while the closing stock is N30,000. Calculate the opening stock:\n<\/div>\n<ol>\n<li>N40,000\n<\/li>\n<li>N30,000\n<\/li>\n<li>N70,000\n<\/li>\n<li>N50,000\n<\/li>\n<\/ol>\n<\/li>\n<li>\n<div>The ratio between profit and sales is called\n<\/div>\n<ol>\n<li>Gross profit\n<\/li>\n<li>Net profit\n<\/li>\n<li>Mark-up\n<\/li>\n<li>Margin\n<\/li>\n<\/ol>\n<\/li>\n<li>\n<div>The excess of opening capital over closing capital represents\n<\/div>\n<ol>\n<li>Gross profit\n<\/li>\n<li>Net profit\n<\/li>\n<li>Loss\n<\/li>\n<li>Sales\n<\/li>\n<\/ol>\n<\/li>\n<li>\n<div>A business stock turnover time is 9, its average stocks is N60,000. Calculate its cost of goods sold\n<\/div>\n<ol>\n<li>N54,000\n<\/li>\n<li>N27,000\n<\/li>\n<li>N60,000\n<\/li>\n<li>N540,000\n<\/li>\n<\/ol>\n<\/li>\n<li>\n<div>The record or book where credit sales could be generated is\n<\/div>\n<ol>\n<li>Cash book\n<\/li>\n<li>Creditors ledger\n<\/li>\n<li>Debtors ledger\n<\/li>\n<li>Statement of affairs\n<\/li>\n<\/ol>\n<\/li>\n<\/ol>\n<p><strong>Fill in the Blanks<br \/>\n<\/strong><\/p>\n<ol>\n<li>The number of times a business stock could be replenished is called _______________\n<\/li>\n<li>\n<div>If a business operational margin is 0.2. calculate the mark-up _______________\n<\/div>\n<\/li>\n<li>\n<div>The act of recording a business transaction one in the book is called _________________\n<\/div>\n<\/li>\n<li>\n<div>The financial summary prepared to ascertain a firm&#8217;s opening capital is called ________________\n<\/div>\n<\/li>\n<li>\n<div>If a manager is qualified for 7\u00bd% commission on profit before the commission is N15,000. Calculate the commission that would accrue to the manager.\n<\/div>\n<\/li>\n<\/ol>\n<p><strong>Assignment<br \/>\n<\/strong><strong>Essay Type Questions<br \/>\n<\/strong><\/p>\n<ol>\n<li>\n<div>The following information was extracted from the book of Olaoni.<\/p>\n<div>\n<table>\n<tbody>\n<tr>\n<td>\u00a0<\/td>\n<td>N<\/td>\n<\/tr>\n<tr>\n<td>Sales<br \/>\nOpening stock<br \/>\nClosing stock<br \/>\nExpenses<br \/>\nPurchases<\/td>\n<td>45,000<br \/>\n20,000<br \/>\n30,000<br \/>\n15,000<br \/>\n25,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>You are required to calculate the following:\n<\/p><\/div>\n<ol>\n<li>Cost of goods sold\n<\/li>\n<li>Net profit\n<\/li>\n<li>Net profit percentage\n<\/li>\n<li>Gross profit percentage\n<\/li>\n<li>Stock turnover\n<\/li>\n<\/ol>\n<\/li>\n<li>The following is a summary of the bank account of Mary Parker, a retail trader for the year 2008.\n<\/li>\n<\/ol>\n<div>\n<table>\n<tbody>\n<tr>\n<td><strong>Receipts<\/strong><\/td>\n<td><strong>N<\/strong><\/td>\n<td><strong>N<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Balance b\/f<br \/>\nShop takings<br \/>\n<strong>Payments<br \/>\n<\/strong>Creditors<br \/>\nRent and rates<br \/>\ndrawings<\/td>\n<td>\u00a0<\/td>\n<td>1,448<br \/>\n34,722<\/p>\n<p>\u00a028,364<br \/>\n1,488<br \/>\n5,816<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>\u00a0You are given the following additional information:<\/p>\n<div>\n<table>\n<tbody>\n<tr>\n<td>\u00a0<\/td>\n<td>01\/01\/2008<\/td>\n<td>31\/12\/2008<\/td>\n<\/tr>\n<tr>\n<td>N<\/td>\n<td>N<\/td>\n<\/tr>\n<tr>\n<td>Furniture<br \/>\nStock<br \/>\nDebtors<br \/>\nCreditors<\/td>\n<td>1,000<br \/>\n5,260<br \/>\n2,900<br \/>\n3,750<\/td>\n<td>1,000<br \/>\n4,380<br \/>\n3,270<br \/>\n3,946<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>During the year, wages amounting to N1,300 and N220 general expenses were paid in cash out of shop takings. All the remaining shop taking were paid into the bank and all other payments were made by cheque.<br \/>\nYou are required to prepare:<\/p>\n<ol>\n<li>\n<div>Trading, profit and loss account for the year\n<\/div>\n<\/li>\n<\/ol>\n<ol>\n<li>\n<div>A balance sheet as at 31 December, 2008 (SSCE, June 1993).\n<\/div>\n<\/li>\n<\/ol>\n<p>\u00a0<br \/>\n\t\t\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>WEEK FOUR ACCOUNTING RATIOS AND INCOMPLETE RECORDS Under a situation whereby a firm or business&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,194],"tags":[],"class_list":["post-2280","post","type-post","status-publish","format-standard","hentry","category-posts","category-second-term-ss1-accounting"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts\/2280","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/comments?post=2280"}],"version-history":[{"count":1,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts\/2280\/revisions"}],"predecessor-version":[{"id":2281,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts\/2280\/revisions\/2281"}],"wp:attachment":[{"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/media?parent=2280"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/categories?post=2280"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/tags?post=2280"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}