{"id":2282,"date":"2023-10-02T11:54:37","date_gmt":"2023-10-02T11:54:37","guid":{"rendered":"http:\/\/localhost\/ecole9ja\/?p=2282"},"modified":"2023-10-02T11:56:20","modified_gmt":"2023-10-02T11:56:20","slug":"week-5-and-6-ss1-second-term-financial-accounting-notes","status":"publish","type":"post","link":"https:\/\/ecolebooks.com\/nigeria\/posts\/week-5-and-6-ss1-second-term-financial-accounting-notes\/","title":{"rendered":"Week 5 and 6 &#8211; SS1 Second Term Financial Accounting Notes"},"content":{"rendered":"<p><strong>WEEK FIVE \u2013 SIX<br \/>\n<\/strong><strong>SINGLE ENTRY AND INCOMPLETE RECORDS<br \/>\n<\/strong><br \/>\n\u00a0<strong>Introduction<br \/>\n<\/strong>This topic is about how to prepare trading, profit and loss account under an incomplete record or single-entry accounting system.<\/p>\n<p>\u00a0<strong>Meaning<br \/>\n<\/strong>This is system of accounting of financial transactions that are recorded without conformity with the rule of double entry&#8217;.<br \/>\nThe records so prepared based on a single entry or one-leg entry by any bookkeeper or record keeper is hence incomplete or inadequate for proper accounting system. In order to prepare a normal accounting report, an accountant has to use one of his or her mental experience and ingenuity to prepare the accounts or financial reports from the incomplete records. <\/p>\n<p>\u00a0<strong>Features of Single Entry\/Incomplete Records<br \/>\n<\/strong><\/p>\n<ul>\n<li>\n<div>Final accounts are prepared by comparing financial data of two or more years.<strong><br \/>\n\t\t\t\t\t<\/strong><\/div>\n<\/li>\n<li>\n<div>Accounting information is grossly inadequate.<strong><br \/>\n\t\t\t\t\t<\/strong><\/div>\n<\/li>\n<li>\n<div>Accounting records or books are not in existence or not well organized.<strong><br \/>\n\t\t\t\t\t<\/strong><\/div>\n<\/li>\n<li>\n<div>Mostly, records are kept on loose sheet or only cash book is kept.<strong><br \/>\n\t\t\t\t\t<\/strong><\/div>\n<\/li>\n<li>\n<div>There is no any accounting system in such an organization.<strong><br \/>\n\t\t\t\t\t<\/strong><\/div>\n<\/li>\n<li>\n<div>Record keeping is flexible.<strong><br \/>\n\t\t\t\t\t<\/strong><\/div>\n<\/li>\n<\/ul>\n<p>\u00a0<strong>Areas Where Single-Entry Accounting Systems Are Used<br \/>\n<\/strong>Areas where single accounting systems are used are as follows:<\/p>\n<ul>\n<li>\n<div>Schools\n<\/div>\n<\/li>\n<li>\n<div>Government parastatals and agencies\n<\/div>\n<\/li>\n<li>\n<div>Club association, unions (not-for-profit organization) and so on.\n<\/div>\n<\/li>\n<li>\n<div>Sole traders, or small-scale business\n<\/div>\n<\/li>\n<li>\n<div>Organizations that have no finance or accounting unit\n<\/div>\n<\/li>\n<li>\n<div>Business or companies that are victims of artificial or natural disasters.\n<\/div>\n<\/li>\n<li>\n<div>Business where records are kept on loose sheets.\n<\/div>\n<\/li>\n<\/ul>\n<p><strong>Preparation of Statement of Affairs<br \/>\n<\/strong>A statement of affairs is the summary of a firms&#8217; or a business&#8217; assets, liabilities and owners stake at any given time.<br \/>\nIt could be drawn at the beginning or at the end of every accounting year or period. The statement is drawn to ascertain any growth or increases in the components of the statements at any point in time. The information required to prepare this statement are: all fixed assets, total of debtors and creditors, owing and prepaid expenses, cash in hand and at bank and so on.<br \/>\nWhen two statements of affairs for different periods are compared, it will help to ascertain the followings:<br \/>\nThe format for the statement of affairs is given in the following:<br \/>\n<strong>(a)\u00a0\u00a0\u00a0\u00a0Opening Statement of Affairs<\/p>\n<div>\n<table>\n<tbody>\n<tr>\n<td>\u00a0<\/td>\n<td>N<\/td>\n<\/tr>\n<tr>\n<td>Fixed assets<br \/>\nCurrent assets<\/p>\n<p>\u00a0<strong>Less: <\/strong>Liabilities<br \/>\nOpening Capital<\/td>\n<td>XXX<br \/>\n<img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100223_1154_Week5and61.png\" alt=\"\"\/>XXX<br \/>\nXXX<br \/>\n(XXX)<br \/>\n<img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100223_1154_Week5and62.png\" alt=\"\"\/>XXX<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p><\/strong><br \/>\n\u00a0Opening capital = Total assets \u2013 Liabilities<\/p>\n<p>\u00a0<br \/>\n\u00a0<br \/>\n\u00a0<strong>(b)\u00a0\u00a0\u00a0\u00a0Closing Statement of Affairs<br \/>\n<\/strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/p>\n<div>\n<table>\n<tbody>\n<tr>\n<td>\u00a0<\/td>\n<td>N<\/td>\n<\/tr>\n<tr>\n<td>Fixed assets<br \/>\nCurrent assets<\/p>\n<p>\u00a0<strong>Less: <\/strong>Liabilities<br \/>\nClosing Capital<\/td>\n<td>XXX<br \/>\nXXX<br \/>\nXXX<br \/>\nXXX<br \/>\n<img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100223_1154_Week5and63.png\" alt=\"\"\/>XXX<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>\u00a0<strong>Computation of profit Between the Two Profits<\/p>\n<div>\n<table>\n<tbody>\n<tr>\n<td>\u00a0<\/td>\n<td><strong>N<\/strong><\/td>\n<td><strong>N<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Closing capital<\/td>\n<td>\u00a0<\/td>\n<td>XXX<\/td>\n<\/tr>\n<tr>\n<td><strong>ADD: <\/strong>Drawings<\/td>\n<td>\u00a0<\/td>\n<td>XX<\/td>\n<\/tr>\n<tr>\n<td><strong>Less: <\/strong>Opening Capital<\/td>\n<td>XX<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>Additional Capital<\/td>\n<td>XX<\/td>\n<td>(XX)<\/td>\n<\/tr>\n<tr>\n<td>Net Profit<\/td>\n<td>\u00a0<\/td>\n<td>XX\/(XX)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>\u00a0<\/strong>Profit or loss can as well be computed as follows:<br \/>\n(a)\u00a0\u00a0\u00a0\u00a0Opening capital + Profit \u2013 Drawings + Additional capital = New or closing capital<br \/>\n(b)\u00a0\u00a0\u00a0\u00a0Profit = New capital + Drawing \u2013 Opening Capital \u2013 Additional Capital<br \/>\n<strong>Illustration 1<br \/>\n<\/strong>Abraka Ventures statements of affairs components as at 1 January, 2016 are given below.<\/p>\n<div>\n<table>\n<tbody>\n<tr>\n<td>\u00a0<\/td>\n<td>N<\/td>\n<\/tr>\n<tr>\n<td>Creditors<br \/>\nBills payable<br \/>\nPlants and equipment<br \/>\nStock<br \/>\nDebtors<br \/>\nBills receivable<br \/>\nCash<\/td>\n<td>40,000<br \/>\n12,000<br \/>\n60,000<br \/>\n20,000<br \/>\n10,000<br \/>\n20,000<br \/>\n2,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>On 31 December, 2010, the following information was extracted from the business. Creditors N30,000, bill payables N16,000 equipments N50,000, stock N10,000 Debtors N20,000, Bills receivable N14,000, Cash N200 and drawings for the period were N16,000.<br \/>\nYou are required to:<\/p>\n<ol>\n<li>\n<div>Calculate the opening capital\n<\/div>\n<\/li>\n<\/ol>\n<ol>\n<li>\n<div>Show the closing capital and net profit\n<\/div>\n<\/li>\n<\/ol>\n<p><strong>Illustration 2<br \/>\n<\/strong>Olaore Supermarket records all its financial transaction in a notebook. The following are extracts from the notebooks:<\/p>\n<div>\n<table>\n<tbody>\n<tr>\n<td>\n\u00a0<br \/>\n\u00a0<br \/>\n\u00a0Stock<br \/>\nCreditors<br \/>\nDebtors<br \/>\nCash in hands<br \/>\nBank overdraft<br \/>\nFixtures and fittings<br \/>\nMotor van<\/td>\n<td><strong>Notebooks<\/strong><\/td>\n<\/tr>\n<tr>\n<td><strong>31 December, 2008<\/strong><\/td>\n<td><strong>31 December 2009<\/strong><\/td>\n<\/tr>\n<tr>\n<td>N<br \/>\n33,000<br \/>\n30,000<br \/>\n40,000<br \/>\n500<br \/>\n50,000<br \/>\n15,000<br \/>\n20,000<\/td>\n<td>N<br \/>\n46,000<br \/>\n28,800<br \/>\n35,000<br \/>\n4,000<br \/>\n38,000<br \/>\n15,000<br \/>\n20,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>\u00a0The drawings during the year amounted to N5,000. Depreciation on furniture and fittings to be 10%, while N2,000 to be written off motor van. N1,000 of the debtors are irrecoverable and a general provision of 5% should be made on the debtors balance.<br \/>\nYou are required to:<\/p>\n<ol>\n<li>\n<div>Ascertain the profit and loss for the year ended 31 December 2009.\n<\/div>\n<\/li>\n<\/ol>\n<ol>\n<li>\n<div>Prepare a statement of affairs as at that date.\n<\/div>\n<\/li>\n<\/ol>\n<p>\u00a0<strong>PREPARATION OF FINAL ACCOUNTS FROM INCOMPLETE RECORDS:<br \/>\n<\/strong><strong>Conversion of Single Entry to Double Entry<br \/>\n<\/strong>An organization that keeps single entry or incomplete records of accounting may decide to prepare its annual final accounts from the inadequate information. It is possible under this incomplete records situation to prepare such final accounts by merely converting the single entry records to double entry records given the available information.     The following are the necessary books that need to be opened for such conversion:<\/p>\n<ul>\n<li>\n<div>Cash book\n<\/div>\n<\/li>\n<li>\n<div>Sales ledger\n<\/div>\n<\/li>\n<li>\n<div>Purchases ledger\n<\/div>\n<\/li>\n<li>\n<div>Assets and liabilities account\n<\/div>\n<\/li>\n<li>\n<div>Nominal accounts\n<\/div>\n<\/li>\n<\/ul>\n<p>If such conversion is done properly, a trial balance could be drawn to test the arithmetical accuracy of the records. For the purpose of the conversion and the preparation of final accounts from this situation, the following procedure should be adopted.<br \/>\n<strong>Step 1:\u00a0\u00a0\u00a0\u00a0<\/strong>Prepare the opening statement of affairs purposely to ascertain opening capital.<br \/>\n<strong>Step 2:<\/strong>\u00a0\u00a0\u00a0\u00a0Prepare the cash book with the details. This must include both the cash and bank accounts as the case may be either separately or in a cash book.<br \/>\n<strong>Step 3:\u00a0\u00a0\u00a0\u00a0<\/strong>Prepare both debtors and creditors ledger control accounts to ascertain the total credit sales and total credit purchases.<br \/>\n<strong>Step 4:<\/strong>\u00a0\u00a0\u00a0\u00a0Prepare a schedule or summary for total sales and purchases by adding the total credit sales and purchases with the cash sales and cash purchases.<br \/>\n<strong>Step 5:<\/strong>\u00a0\u00a0\u00a0\u00a0Prepare control accounts for the nominal items that have outstanding or prepaids either at the beginning or at the end of the period in question.<br \/>\n<strong>Step 6:<\/strong>\u00a0\u00a0\u00a0\u00a0Prepare any other required working schedules.<br \/>\n<strong>Step 7:\u00a0\u00a0\u00a0\u00a0<\/strong>Prepare trading, profit and loss accounts from steps 1 \u2013 6 above.<br \/>\n<strong>Step 8:<\/strong>\u00a0\u00a0\u00a0\u00a0Prepare the balance sheet.<\/p>\n<p>\u00a0<br \/>\n\u00a0<strong>Illustration 3<br \/>\n<\/strong>Arsenal ventures had the assets and liabilities as at 1 January 2008.<\/p>\n<div>\n<table>\n<tbody>\n<tr>\n<td>\u00a0<\/td>\n<td>N<\/td>\n<\/tr>\n<tr>\n<td>Delivery van<\/td>\n<td>120,000<\/td>\n<\/tr>\n<tr>\n<td>Machine<\/td>\n<td>180,000<\/td>\n<\/tr>\n<tr>\n<td>Debtors<\/td>\n<td>70,000<\/td>\n<\/tr>\n<tr>\n<td>Bank<\/td>\n<td>100,000<\/td>\n<\/tr>\n<tr>\n<td>Stocks<\/td>\n<td>25,000<\/td>\n<\/tr>\n<tr>\n<td>Creditors for expenses<\/td>\n<td>10,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>\u00a0They do not keep proper records for their business transactions but the following were extracted from sketch books.<\/p>\n<div>\n<table>\n<tbody>\n<tr>\n<td>\u00a0<\/td>\n<td>N<\/td>\n<\/tr>\n<tr>\n<td>Opening cash balance<\/td>\n<td>100,000<\/td>\n<\/tr>\n<tr>\n<td>Receipts from debtors<\/td>\n<td>85,000<\/td>\n<\/tr>\n<tr>\n<td><strong>Payments<\/strong><\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>Materials<\/td>\n<td>52,000<\/td>\n<\/tr>\n<tr>\n<td>Repairs of van<\/td>\n<td>20,000<\/td>\n<\/tr>\n<tr>\n<td>Telephones<\/td>\n<td>2,500<\/td>\n<\/tr>\n<tr>\n<td>Creditors for expenses<\/td>\n<td>10,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>\u00a0On 31, December 2008, debtors were owning N150,000 and closing stock was valued at N10,000<\/p>\n<p>\u00a0The following additional information was available:<\/p>\n<div>\n<table>\n<tbody>\n<tr>\n<td>\u00a0<\/td>\n<td>N<\/td>\n<\/tr>\n<tr>\n<td>Provision for depreciation<br \/>\nDelivery van<br \/>\nMachine<br \/>\nAccrued telephone expenses<br \/>\nProvision for doubtful debts<\/td>\n<td>\n\u00a010,000<br \/>\n20,000<br \/>\n4,000<br \/>\n3,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>\u00a0You are required to prepare:<\/p>\n<ol>\n<li>\n<div>Statement of affairs as at January 2008.\n<\/div>\n<\/li>\n<\/ol>\n<ol>\n<li>\n<div>Trading, profit and loss account for the year ended 31 December 2008 and the balance sheet as at that date.\n<\/div>\n<\/li>\n<\/ol>\n<p><strong>Solution<br \/>\n<\/strong><strong>Opening Statement of Affairs as at 1 January 2008.<br \/>\n<\/strong><\/p>\n<div>\n<table>\n<tbody>\n<tr>\n<td>\u00a0<\/td>\n<td>N<\/td>\n<\/tr>\n<tr>\n<td>\n\u00a0Delivery van<br \/>\nMachine<br \/>\nDebtors<br \/>\nStocks<br \/>\nBank<\/p>\n<p>\u00a0<strong>Less: <\/strong>Liabilities<br \/>\nCreditors for expenses<br \/>\nOpening capital<\/td>\n<td>\n\u00a0120,000<br \/>\n180,000<br \/>\n70,000<br \/>\n25,000<br \/>\n100,000<br \/>\n495,000<\/p>\n<p>\u00a0(10,000)<br \/>\n485,000\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>\u00a0<br \/>\n\u00a0<strong>Bank Account<br \/>\n<\/strong><\/p>\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>Opening cash balance<br \/>\nReceipts from debtors<\/p>\n<p>\u00a0<strong>Less: <\/strong>Payments<br \/>\nMaterials<br \/>\nRepairs of van<br \/>\nTelephone<br \/>\nCreditors for expenses<\/p>\n<p>\u00a0Closing cash balance<\/td>\n<td>\n\u00a0<br \/>\n\u00a0<br \/>\n\u00a0<br \/>\n\u00a052,000<br \/>\n20,000<br \/>\n  2,500<br \/>\n10,000<\/td>\n<td>100,000<\/p>\n<p>\t\t\t\t\t\t\t\t\t\t\t85,000<br \/>\n185,000<\/p>\n<p>\u00a0<br \/>\n\u00a0<br \/>\n\u00a0<br \/>\n\u00a0<br \/>\n\u00a084,500<br \/>\n\t\t\t\t\t\t\t\t\t\t100,500<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>\u00a0<strong>Debtors Ledger Control Account<\/p>\n<div>\n<table>\n<tbody>\n<tr>\n<td>\u00a0<\/td>\n<td><strong>N<\/strong><\/td>\n<td>\u00a0<\/td>\n<td><strong>N<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Balance b\/f<br \/>\nCredit sales a\/c <\/p>\n<p>\u00a0Balance b\/f<\/td>\n<td>70,000<\/p>\n<p>\t\t\t\t\t\t\t\t\t\t\t\t\t165,000<br \/>\n  235,000<br \/>\n  150,000<\/td>\n<td>Bank a\/c<br \/>\nBalance c\/f<\/td>\n<td>85,000<br \/>\n150,000<br \/>\n235,000\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>Accrued Expenses Account<\/p>\n<div>\n<table>\n<tbody>\n<tr>\n<td>\u00a0<\/td>\n<td><strong>N<\/strong><\/td>\n<td>\u00a0<\/td>\n<td><strong>N<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Balance a\/c<br \/>\nBalance c\/f<\/td>\n<td>10,000<\/p>\n<p>\t\t\t\t\t\t\t\t\t\t\t\t\t\t    4,000<br \/>\n    14,000<\/p>\n<p>\t\t\t\t\t\t\t\t\t\t\t\t\t\u00a0<\/td>\n<td>Balance b\/f<br \/>\nP &amp; L<\/p>\n<p>\u00a0Balance b\/f<\/td>\n<td>10,000<br \/>\n4,000<br \/>\n14,000<br \/>\n  4,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p><\/strong><br \/>\n\u00a0<strong>Arsenal Ventures<br \/>\n<\/strong><strong>Trading Profits 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><strong>N<\/strong><\/td>\n<td><strong>N<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Sales<br \/>\n<strong>Less: Cost of sales<br \/>\n<\/strong>Opening stock<br \/>\nPurchases<\/p>\n<p>\u00a0Closing stock<\/p>\n<p>\u00a0Gross Profit<br \/>\n<strong>Less: Expenses<br \/>\n<\/strong>Repairs of van<br \/>\nTelephone (2,500 + 4,000)<br \/>\nProvision for doubtful dents<br \/>\nDepreciation:<br \/>\nDelivery van<br \/>\nMachines<\/p>\n<p>\u00a0Net profit<\/td>\n<td>\n\u00a0<br \/>\n\u00a025,000<br \/>\n52,000<br \/>\n77,000<br \/>\n(10,000)<\/p>\n<p>\u00a0<br \/>\n\u00a0<br \/>\n\u00a020,000<br \/>\n  6,500<br \/>\n  3,000<\/p>\n<p>\u00a0<br \/>\n\u00a010,000<br \/>\n20,000<\/td>\n<td>165,000<\/p>\n<p>\u00a0<br \/>\n\u00a0<br \/>\n\u00a0<br \/>\n\u00a0<br \/>\n\u00a0(67,000)<br \/>\n98,000<\/p>\n<p>\u00a0<br \/>\n\u00a0<br \/>\n\u00a0<br \/>\n\u00a0<br \/>\n\u00a0<br \/>\n\u00a0<br \/>\n\u00a0<br \/>\n\u00a0(59,500)<br \/>\n38,500<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p><\/strong><br \/>\n\u00a0<br \/>\n\u00a0<br \/>\n\u00a0<br \/>\n\u00a0<strong>Arsenal Ventures<br \/>\n<\/strong><strong>Balance Sheet as at 31 December 2008<\/p>\n<div>\n<table>\n<tbody>\n<tr>\n<td>\u00a0<\/td>\n<td><strong>Cost<\/strong><\/td>\n<td><strong>Depreciation Net<\/strong><\/td>\n<td><strong>NET Book Value<\/strong><\/td>\n<\/tr>\n<tr>\n<td><strong>N<\/strong><\/td>\n<td><strong>N<\/strong><\/td>\n<td><strong>N<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Delivery van<br \/>\nMachine<\/p>\n<p>\u00a0<strong>Current assest<br \/>\n<\/strong>Stock<br \/>\nDebtors (150,000 \u2013 3,000)<br \/>\nBank\n<\/td>\n<td>120,000<br \/>\n180,000<br \/>\n300,000<\/td>\n<td>(10,000)<br \/>\n(20,000)<br \/>\n(30,000)<\/p>\n<p>\u00a010,000<br \/>\n147,000<br \/>\n100,500<br \/>\n257,500<\/td>\n<td>110,000<br \/>\n160,000<br \/>\n270,000<\/p>\n<p>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>\u00a0<\/p>\n<div>\n<table>\n<tbody>\n<tr>\n<td><strong>Less:<\/strong> Accrued expenses<\/p>\n<p>\u00a0<br \/>\n\u00a0<em>Financed by<br \/>\n<\/em>Capital<br \/>\nProfits<\/td>\n<td>\u00a0<\/td>\n<td><img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100223_1154_Week5and64.png\" alt=\"\"\/>(4,000)<\/td>\n<td><img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100223_1154_Week5and65.png\" alt=\"\"\/><img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100223_1154_Week5and66.png\" alt=\"\"\/><img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100223_1154_Week5and67.png\" alt=\"\"\/><br \/>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t253,500<br \/>\n<img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100223_1154_Week5and68.png\" alt=\"\"\/>523,500<br \/>\n          N<br \/>\n485,000<br \/>\n  38,500<br \/>\n<img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100223_1154_Week5and69.png\" alt=\"\"\/>523,500<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p><\/strong><br \/>\n\u00a0<br \/>\n\u00a0<br \/>\n\u00a0<br \/>\n\u00a0<br \/>\n\u00a0<strong>Illustration 4<br \/>\n<\/strong>Wayne Salako Enterprises could not keep proper book for their business transactions during the year 2004. The following were extracted from the books.<\/p>\n<div>\n<table>\n<tbody>\n<tr>\n<td>\u00a0<\/td>\n<td>N<\/td>\n<\/tr>\n<tr>\n<td><strong>Purchases:<br \/>\n<\/strong>Cash<br \/>\nCredit<br \/>\nCash received from debtors<br \/>\nPurchases of furniture<br \/>\nCash Sales<br \/>\n<strong>Expenses Paid:<br \/>\n<\/strong>Salaries<br \/>\nElectricity<br \/>\nRent<br \/>\nInsurance<br \/>\nRate<br \/>\nAdvertisement<\/td>\n<td>\n\u00a0300,000<br \/>\n500,000<br \/>\n1,300,000<br \/>\n48,000<br \/>\n500,000<\/p>\n<p>\u00a0144,000<br \/>\n24,000<br \/>\n48,000<br \/>\n80,000<br \/>\n12,000<br \/>\n24,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>\u00a0The following additional information was available:<br \/>\n(a)<\/p>\n<div>\n<table>\n<tbody>\n<tr>\n<td>\u00a0<\/td>\n<td>01\/01\/2009<br \/>\nN<\/td>\n<td>31\/12\/2009<br \/>\nN<\/td>\n<\/tr>\n<tr>\n<td>Stock<br \/>\nOutstanding electricity<br \/>\nRent owing<br \/>\nInsurance Prepaid<br \/>\nDebtors<br \/>\nCreditors<br \/>\nRates In advance<\/td>\n<td>100,000<br \/>\n1,600<br \/>\n4,000<br \/>\n3,600<br \/>\n50,000<br \/>\n30,000<br \/>\n3,000<\/td>\n<td>140,000<br \/>\n    2,400<br \/>\n    3,600<br \/>\n    4,000<br \/>\n  64,000<br \/>\n  44,000<br \/>\n    2,400<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>\u00a0<br \/>\n\u00a0<br \/>\n\u00a0<br \/>\n\u00a0(b)\u00a0\u00a0\u00a0\u00a0Fixed assets on 1 January 2009 are as follows:<\/p>\n<div>\n<table>\n<tbody>\n<tr>\n<td>\u00a0<\/td>\n<td>N<\/td>\n<\/tr>\n<tr>\n<td>Furniture<br \/>\nMotor vehicle<br \/>\nBuilding<br \/>\nCash at bank on 1 January 2009<\/td>\n<td>72,000<br \/>\n500,000<br \/>\n700,000<br \/>\n200,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>\u00a0(c)\u00a0\u00a0\u00a0\u00a0Fixed asset should be depreciated as follows:<br \/>\n\u00a0\u00a0\u00a0\u00a0Furniture and building\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a05%<br \/>\n\u00a0\u00a0\u00a0\u00a0Motor vehicle\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a020%<br \/>\nYou are required to prepare trading, profit and loss accounts for the year ended 31 December 2009.<br \/>\n\u00a0\u00a0\u00a0\u00a0<br \/>\n\u00a0\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>WEEK FIVE \u2013 SIX SINGLE ENTRY AND INCOMPLETE RECORDS \u00a0Introduction This topic is about how&#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-2282","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\/2282","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=2282"}],"version-history":[{"count":1,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts\/2282\/revisions"}],"predecessor-version":[{"id":2283,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts\/2282\/revisions\/2283"}],"wp:attachment":[{"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/media?parent=2282"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/categories?post=2282"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/tags?post=2282"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}