{"id":3471,"date":"2023-10-05T10:32:15","date_gmt":"2023-10-05T10:32:15","guid":{"rendered":"http:\/\/localhost\/ecole9ja\/?p=3471"},"modified":"2023-10-05T10:33:07","modified_gmt":"2023-10-05T10:33:07","slug":"week-1-ss2-third-term-financial-accounting-notes","status":"publish","type":"post","link":"https:\/\/ecolebooks.com\/nigeria\/posts\/week-1-ss2-third-term-financial-accounting-notes\/","title":{"rendered":"Week 1 &#8211; SS2 Third Term Financial Accounting Notes"},"content":{"rendered":"<p><strong>THIRD TERM E-LEARNING NOTE<br \/>\n<\/strong><br \/>\n\u00a0<strong>SUBJECT:  FINANCIAL ACCOUNTING\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0        CLASS:  SS2<br \/>\n<\/strong><br \/>\n\u00a0<\/p>\n<h2><strong>SCHEME OF WORK<br \/>\n<\/strong><\/h2>\n<p>\u00a0<strong>WEEK\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0TOPICS<br \/>\n<\/strong>1-3\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Single Entry and Incomplete Records<br \/>\n4-5\u00a0\u00a0\u00a0\u00a0Control Accounts<br \/>\n6-8\u00a0\u00a0\u00a0\u00a0Accounts of Non-Profit-Making Organizations<br \/>\n9\u00a0\u00a0\u00a0\u00a0Joint Venture Accounts<br \/>\n10\u00a0\u00a0\u00a0\u00a0Consignment Accounts<\/p>\n<p>\u00a0<br \/>\n\u00a0<strong>WEEK ONE<br \/>\n<\/strong><strong>TOPIC<\/strong>: <strong>SINGLE ENTRY AND INCOMPLETE RECORDS<\/strong><br \/>\n\t\t<strong>CONTENT<\/strong>: \u00a0\u00a0\u00a0\u00a0(i) Introduction (ii) Steps Involved in preparing a P&amp;L A\/C and Balance Sheet from Incomplete Records (iii) Example<br \/>\ni.\u00a0\u00a0\u00a0\u00a0  <strong>INTRODUCTION:<br \/>\n<\/strong><strong>\u00a0\u00a0\u00a0\u00a0<\/strong>Most businesses keep records of receipts and payments. The records may consist of bank paying \u2013 in \u2013 book counterfoils, cheque book counterfoils and bank statements in addition to supplies invoices and copies of sales invoices. From these records it may be possible to prepare a P&amp;L A\/C and Balance Sheet.<\/p>\n<p>\u00a0ii \u00a0\u00a0\u00a0\u00a0STEPS INVOLVED IN PREPARING A P&amp;L A\/C AND BALANCE SHEET FROM INCOMPLETE RECORDS;-  The necessary steps are as follows:-<br \/>\n\t\t\tStep 1: Preparing an opening statement of affairs (so as to obtain opening capital)<br \/>\nStep 2: Prepare a receipt and payments A\/C<br \/>\nStep 3: Prepare control A\/CS for debtors and creditors, if necessary to calculate sales    and purchases. It is the sales and purchase figure that will be required to make the account  balance.<br \/>\nStep 4: Adjust the receipts and payments accounts prepayments and accruals at  beginning and end of the period.<br \/>\nStep 5: Calculate provisions for doubtful debts, depreciation and any other matters not mentioned above.<br \/>\nStep 6: Prepare the P&amp;L A\/C and Balance Sheet from the information now available<\/p>\n<p>\u00a0<strong>Example:<br \/>\n<\/strong>The only record that Azim has kept for his business are bank pay-in-book, counterfoils, cheque book counterfoils and records of debtors and creditors. With these it is possible to summarize his transactions with the bank in the year ended 31\/12\/03 as follows taking paid into the bank: N8000<br \/>\nCheques drawn: Payment to suppliers N2430, rent N600, electricity N320, postage and stationeries N80, purchase of shop fittings N480, cheques drawn for personal expenses N2700.<br \/>\n\u00a0\u00a0\u00a0\u00a0Azim banked all his taking after paying the following in cash:-<br \/>\nCreditor for supplies N400 and sundry expenses N115.<br \/>\nAzim estimated his assets and liabilities at 1<sup>st<\/sup> January, 2003 to be: shop fittings N1600. Stock N1960, debtors N240 rent prepaid N80. Bank balance N1500, cash in hand N 50, creditors for goods N420; electricity owing N130.<br \/>\nAt 31<sup>st<\/sup> December, 2003 Azim listed his assets and liabilities as follows. Shop fittings N1800; stock N1520; debtors N380 rent repaired N50; bank balance N2640; cash in hand N 50; creditors for goods N390; electricity owing N225.<br \/>\nRequired prepar Azim&#8217;s profit and loss accounts for the year ended 31 December, 2003 and his Balance Sheet at that date.<br \/>\n<strong>Solution:<br \/>\n<\/strong><strong>Step 1:<\/strong> Opening statement of Affairs<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\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0N\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0N<br \/>\nAssets \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<br \/>\nShop fittings\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a01600\u00a0\u00a0\u00a0\u00a0<br \/>\nStock\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a01960<br \/>\nDebtors \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0  240<br \/>\nRent prepaid \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0   \u00a0\u00a0\u00a0\u00a0   80<br \/>\nBank\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a01500<br \/>\n<img decoding=\"async\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100523_1032_Week1SS2Th1.png\" alt=\"\"\/>Cash in hand \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0    50<br \/>\n<img decoding=\"async\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100523_1032_Week1SS2Th2.png\" alt=\"\"\/>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a05,430<br \/>\nLess Liabilities<br \/>\nCreditors for goods 420<br \/>\nElectricity owing      130\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0   550\u00a0\u00a0\u00a0\u00a0<br \/>\nCAPITAL AT 1<sup>ST<\/sup> JAN. 2003 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a04,880<\/p>\n<p>\u00a0<strong>Step 2:<\/strong> Receipts and payments Account. This includes only those amounts actually received and spent. It is a cash book summary with columns for cash and bank.<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Cash\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Bank\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Cash \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Bank<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 N                    N\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 N                      N<br \/>\n1\/1\/03 Balance b\/f\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0  50\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a01500\u00a0\u00a0\u00a0\u00a0   Trade<br \/>\n\u00a0\u00a0\u00a0\u00a0Takings \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0   Creditors \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0400\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a02430<br \/>\n\u00a0\u00a0\u00a0\u00a0(8000+460+115)\u00a0\u00a0\u00a0\u00a08515\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0   Rent \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0  600<br \/>\n\u00a0\u00a0\u00a0\u00a0Cash \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a08000\u00a0\u00a0\u00a0\u00a0   Electricity\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0  320<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\u00a0\u00a0\u00a0\u00a0\u00a0   Postage and<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\u00a0\u00a0\u00a0\u00a0\u00a0   Stationery \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0    80<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\u00a0\u00a0\u00a0\u00a0\u00a0   Shop fittings\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0  480<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\u00a0\u00a0\u00a0\u00a0\u00a0   Sundry Exps.      \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0  115<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\u00a0\u00a0\u00a0\u00a0\u00a0   *Drawings\u00a0\u00a0\u00a0\u00a0<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\u00a0\u00a0\u00a0\u00a0\u00a0   (2700+250)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a02,950<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\u00a0\u00a0\u00a0\u00a0\u00a0    Bank C \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a08,000<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\u00a0\u00a0\u00a0\u00a0\u00a0    Balance c\/d\u00a0\u00a0\u00a0\u00a0     50\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 2640<br \/>\n<img decoding=\"async\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100523_1032_Week1SS2Th3.png\" alt=\"\"\/><img decoding=\"async\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100523_1032_Week1SS2Th4.png\" alt=\"\"\/><img decoding=\"async\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100523_1032_Week1SS2Th5.png\" alt=\"\"\/><img decoding=\"async\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100523_1032_Week1SS2Th6.png\" alt=\"\"\/><img decoding=\"async\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100523_1032_Week1SS2Th7.png\" alt=\"\"\/><img decoding=\"async\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100523_1032_Week1SS2Th8.png\" alt=\"\"\/><img decoding=\"async\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100523_1032_Week1SS2Th9.png\" alt=\"\"\/><img decoding=\"async\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100523_1032_Week1SS2Th10.png\" alt=\"\"\/>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 8565\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a09500\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a08565\u00a0\u00a0\u00a0\u00a0           9,500<br \/>\n*N250 is money not accounted for and is treated as Azim&#8217;s drawing.<\/p>\n<p>\u00a0<br \/>\n\u00a0<br \/>\n\u00a0<br \/>\n\u00a0<br \/>\n\u00a0<strong>Step 3:<\/strong><br \/>\n\t\t\tDebtors and creditors controls accounts<br \/>\n<strong>Debtors Control A\/C\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Creditors   Control A\/C<br \/>\n\t\t\t<\/strong><img decoding=\"async\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100523_1032_Week1SS2Th11.png\" alt=\"\"\/><img decoding=\"async\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100523_1032_Week1SS2Th12.png\" alt=\"\"\/>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0  N\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0    N\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0       N\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0               N<br \/>\n1\/1\/03 Bal b\/f 240\u00a0\u00a0\u00a0\u00a0   31\/12\/03 Cash       8515<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0     Bal b\/f                  N380     31\/12 Bank1\/1\/03     Bal b\/f     420<br \/>\n     Sales (2) 8655\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0       and Cash 2830\u00a0\u00a0\u00a0\u00a0   Purchase(3) 2800<br \/>\n<img decoding=\"async\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100523_1032_Week1SS2Th13.png\" alt=\"\"\/>\u00a0\u00a0\u00a0\u00a0         8895\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0            8895\u00a0\u00a0\u00a0\u00a0       Bal b\/f        390<br \/>\n\t\t\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0  3220\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0  3220<\/p>\n<p>\u00a0<strong>Steps 4:<\/strong> Adjustment for Prepayment and Accounts<\/p>\n<p>\u00a0<img decoding=\"async\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100523_1032_Week1SS2Th14.png\" alt=\"\"\/><img decoding=\"async\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100523_1032_Week1SS2Th15.png\" alt=\"\"\/>Rent A\/C\u00a0\u00a0\u00a0\u00a0             N\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Electricity A\/C<br \/>\n<img decoding=\"async\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100523_1032_Week1SS2Th16.png\" alt=\"\"\/>N\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 N\u00a0\u00a0\u00a0\u00a0       \u00a0\u00a0\u00a0\u00a0   N<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Prepaid \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Cash\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 320         1\/1\/03\u00a0\u00a0\u00a0\u00a0<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0        At 31\/12\/03       50\u00a0\u00a0\u00a0\u00a0Owing \u00a0\u00a0\u00a0\u00a0                Accrued b\/f \u00a0\u00a0\u00a0\u00a0130<br \/>\n1\/1\/03\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0P&amp;L ac\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a031\/12\/03        225\u00a0\u00a0\u00a0\u00a0     P&amp;L A\/C      \u00a0\u00a0\u00a0\u00a0415<br \/>\n\t\t Prepaid b\/f 80\u00a0\u00a0\u00a0\u00a0(payable for)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0545\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0545<br \/>\n\t\tCash         600\u00a0\u00a0\u00a0\u00a0the year         630<br \/>\n\u00a0\u00a0\u00a0\u00a0       680\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0           680\u00a0\u00a0\u00a0\u00a0<br \/>\n\t\t\t\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0  N<br \/>\n<strong>Steps 5:<\/strong> Calculate depreciation of shop fitting: Shop fittings at valuation 1\/1\/03 \u00a0\u00a0\u00a0\u00a01600<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Add fittings purchased in the year\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0  480<br \/>\n\t\t\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a02080<br \/>\nShop fittings at valuation 31\/12\/03\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a01800<br \/>\n\t\tTherefore Depreciation for the year \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0        = 280<\/p>\n<p>\u00a0<strong>Step 6:<\/strong> \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<strong>AZIM<\/strong><br \/>\n\t\tTrading and profit and loss accounts for the year<br \/>\nEnded 31 December 2003<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\u00a0\u00a0\u00a0\u00a0\u00a0N\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0N<br \/>\nSales \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a08655<br \/>\nLess cost of sales<br \/>\nStock at 1<sup>st<\/sup> Jan\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a01960<br \/>\nAdd Purchases\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a02800<br \/>\n\t\tLess closing stock\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a04700<br \/>\nLess stock at 31\/12 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a01520\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a03240<br \/>\nGross Profit  \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a05415<br \/>\nLess: \u00a0\u00a0\u00a0\u00a0EXPENSES<br \/>\nRent \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0630<br \/>\nElectricity \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0415<br \/>\nPostage and stationery \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0  80<br \/>\nSundry expenses\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0115<br \/>\nDepreciation \u2013 shop fitting \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0280\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a01520<br \/>\n\t\t\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<strong>NET PROFIT \u00a0\u00a0\u00a0\u00a0<\/strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a03,895<\/p>\n<p>\u00a0<br \/>\n\u00a0<br \/>\n\u00a0<br \/>\n\u00a0Balance sheet at 31<sup>st<\/sup> December, 2008<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$<br \/>\nFixed assets: shop fitting\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a01800<br \/>\n<strong>CURRENT ASSETS<br \/>\n<\/strong> \u00a0\u00a0\u00a0\u00a0Stock \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a01520<br \/>\n\u00a0\u00a0\u00a0\u00a0Trade debtors \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0  380<br \/>\n\u00a0\u00a0\u00a0\u00a0Rent prepaid \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0   \u00a0\u00a0\u00a0\u00a0    50<br \/>\n\u00a0\u00a0\u00a0\u00a0Bank\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a02640<br \/>\nCash \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0    50<br \/>\n\t\t\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a04640<\/p>\n<p>\u00a0<strong>LESS CURRENT LIABILITIES<br \/>\n<\/strong><strong>\u00a0\u00a0\u00a0\u00a0<\/strong>Trade creditors\u00a0\u00a0\u00a0\u00a0390\u00a0\u00a0\u00a0\u00a0<br \/>\n<img decoding=\"async\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100523_1032_Week1SS2Th17.png\" alt=\"\"\/>Electricity owing \u00a0\u00a0\u00a0\u00a0229\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0  615\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a04025<br \/>\n\t\t\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a05825<\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0Capital  at 1<sup>st<\/sup> Jan. \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a04880<br \/>\nProfit for the year \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a03895<br \/>\n\t\t\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a08775<br \/>\nLess drawings\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a02925<br \/>\n\t\t\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a05825 <strong><br \/>\n\t\t\t\t<\/strong><strong>EVALUATION QUESTIONS<br \/>\n<\/strong>1.\u00a0\u00a0\u00a0\u00a0What is the purpose of the opening statement of affairs in complete records?<br \/>\n2.\u00a0\u00a0\u00a0\u00a0What is the debtors control account prepared to reveal?<\/p>\n<p>\u00a0<strong>\u00a0\u00a0\u00a0\u00a0READING ASSIGNMENT<br \/>\n<\/strong>1.\u00a0\u00a0\u00a0\u00a0Essential Financial Accounting by O.A. Longe  Page 371 &#8211; 384 <strong><em><br \/>\n\t\t\t\t\t<\/em><\/strong>2.\u00a0\u00a0\u00a0\u00a0Accounting by Harold Randall  Page 279 \u2013 290<\/p>\n<p>\u00a0<strong>WEEKEND ASSIGNMENT <\/strong><\/p>\n<ol>\n<li>\n<div>Debtors control account reveals (a) debtors (b) creditors (c) cash received (d)sales\n<\/div>\n<\/li>\n<li>\n<div>In incomplete records creditors control account is prepared to reveal (a) sundry creditors (b) purchases (c) cash paid to creditors (d) discount received\n<\/div>\n<\/li>\n<li>\n<div>In adjustment accounts prepaid rent A\/C should have _______ balance (a) credit (b) Debit (c) both debit and credit  (d) either debit or credits\n<\/div>\n<\/li>\n<li>\n<div>In adjusting for final account, accrued wages should have ______ balance (a) debit (b) credit (c) debit and credit (d) debit or credit\n<\/div>\n<\/li>\n<li>\n<div>Calculation of provisions for doubtful debts, depreciation, etc is done in step ____ in other to prepare P&amp;L a\/c and balance sheet from incomplete records  (a) 1 (b) 2 (c) 5 (d) 6\n<\/div>\n<\/li>\n<\/ol>\n<p>Theory<br \/>\n1.\u00a0\u00a0\u00a0\u00a0List and explain the six steps necessary to prepare a P&amp;L a\/c and balance sheet from incomplete records.<br \/>\n2.\u00a0\u00a0\u00a0\u00a0Prepare debtors and creditors control accounts formats and highlight what each of them reveals.<\/p>\n<p>\u00a0<strong>GENERAL EVALUATION QUESTIONS<br \/>\n<\/strong><\/p>\n<ol>\n<li>State three characteristics of  single entry accounting system\n<\/li>\n<li>List four disadvantages of single entry accounting system\n<\/li>\n<li>List five steps of converting single entry accounting system to double entry system\n<\/li>\n<li>Explain five differences between a trial balance and a balance sheet\n<\/li>\n<li>State eight items that will cause a disagreement between the Cash Book balance and the Bank Statement balance<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"<p>THIRD TERM E-LEARNING NOTE \u00a0SUBJECT: FINANCIAL ACCOUNTING\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 CLASS: SS2 \u00a0 SCHEME OF WORK \u00a0WEEK\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0TOPICS 1-3\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Single&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,274],"tags":[],"class_list":["post-3471","post","type-post","status-publish","format-standard","hentry","category-posts","category-third-term-ss2-financial-accounting"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts\/3471","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=3471"}],"version-history":[{"count":1,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts\/3471\/revisions"}],"predecessor-version":[{"id":3472,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts\/3471\/revisions\/3472"}],"wp:attachment":[{"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/media?parent=3471"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/categories?post=3471"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/tags?post=3471"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}