{"id":3780,"date":"2023-10-05T18:52:45","date_gmt":"2023-10-05T18:52:45","guid":{"rendered":"http:\/\/localhost\/ecole9ja\/?p=3780"},"modified":"2023-10-05T18:55:18","modified_gmt":"2023-10-05T18:55:18","slug":"week-8-ss3-first-term-financial-accounting-notes","status":"publish","type":"post","link":"https:\/\/ecolebooks.com\/nigeria\/posts\/week-8-ss3-first-term-financial-accounting-notes\/","title":{"rendered":"Week 8 – SS3 First Term Financial Accounting Notes"},"content":{"rendered":"

\u00a0WEEK EIGHT
\n<\/strong>THE FINAL ACCOUNTS OF LIMITED LIABILITY COMPANIES
\n<\/strong>The final accounts of limited liability companies comprises the following:<\/p>\n

    \n
  1. Trading, Profit and Loss Account.\n<\/li>\n
  2. Appropriation Account.\n<\/li>\n
  3. Balance Sheet.
    \n\t\t\t<\/strong><\/li>\n<\/ol>\n

    \u00a0Format of Trading Profit & Loss account
    \n<\/strong>Trading Profit & Loss account for the year ended 31\/12\/9x
    \n<\/strong>Opening Stock\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Stock\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x
    \nAdd purchases\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Less return inward\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x
    \nLess return outward\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Gross loss\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x
    \nCost of goods available\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x
    \nLess closing stock\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x
    \nCost of sales\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x
    \nGross profit c\/d\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0
    \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0X\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x
    \nExpenses\u00a0\u00a0\u00a0\u00a0<\/strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Gross profit b\/d\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x
    \nWages & salaries\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Income from quoted In. \u00a0\u00a0\u00a0\u00a0x
    \nRent & Rate\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Rent receivable\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x
    \nDepreciation of assets\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Discount received\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x
    \nDirectors remuneration\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Other incomes\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0
    \nAuditors remuneration\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x
    \nAdvertising\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x
    \nHire of plant\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x
    \nDebenture interest\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x
    \nInsurance\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x
    \nOther expenses\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x
    \nNet profit\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x
    \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0X\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x<\/p>\n

    \u00a0
    \n\u00a0Appropriation account<\/strong>\u00a0\u00a0\u00a0\u00a0
    \n\t\t<\/strong>Corporate tax\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0Balance b\/f from last year\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x
    \nGeneral reserve\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0Net profit b\/d\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x
    \nRevenue reserve\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x
    \nDividend interim\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x
    \nProposed dividend\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x
    \nGoodwill written off\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x
    \nRetained profit c\/d\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0
    \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0X\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x
    \nBalance sheet format
    \n<\/strong>Authorized capital<\/strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0N\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Fixed asset
    \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\u00a0Cost\u00a0\u00a0\u00a0\u00a0Dep.\u00a0\u00a0\u00a0\u00a0NBN
    \nOrdinary share @ N1 each\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Land & build X \u00a0\u00a0\u00a0\u00a0(x)\u00a0\u00a0\u00a0\u00a0X
    \n10% Preference Share @ N 1 each \u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Furniture\u00a0\u00a0\u00a0\u00a0 x\u00a0\u00a0\u00a0\u00a0(x)\u00a0\u00a0\u00a0\u00a0x
    \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0X\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Machinery x\u00a0\u00a0\u00a0\u00a0(x)\u00a0\u00a0\u00a0\u00a0x
    \nIssued share capital<\/strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Premises\u00a0\u00a0\u00a0\u00a0 x\u00a0\u00a0\u00a0\u00a0(x)\u00a0\u00a0\u00a0\u00a0x
    \nOrdinary share @ N 1 each \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Goodwill\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x
    \n10% preference share @ N 1 each\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0investments
    \n<\/strong>Reserves\u00a0\u00a0\u00a0\u00a0<\/strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Quoted\u00a0\u00a0\u00a0\u00a0x
    \nShare premium\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Unquoted\u00a0\u00a0\u00a0\u00a0x
    \nGeneral reserve\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Current assets<\/strong> x
    \nRetained profit\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Stock\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0
    \nCapital redemption reserve\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Debtors\u00a0\u00a0\u00a0\u00a0x
    \nLong-term liabilities<\/strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Cash\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x
    \n10% Debenture\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Bank\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x
    \nCurrent liabilities\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Bill receivable x
    \nBill payable\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Prepayment\u00a0\u00a0\u00a0\u00a0x
    \nIncome in advance\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Accrued income\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0x
    \nCorporate tax\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Preliminary expenses\u00a0\u00a0\u00a0\u00a0x
    \nCreditors\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x
    \nProposed dividend\u00a0\u00a0\u00a0\u00a0x
    \nAccruals\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0\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\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0X\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x
    \nEVALUATION
    \n<\/strong>1.\u00a0\u00a0\u00a0\u00a0List five items that features in the Appropriation Account of a limited liability company.
    \n2.\u00a0\u00a0\u00a0\u00a0Explain the following terms:
    \n\u00a0\u00a0\u00a0\u00a0a.\u00a0\u00a0\u00a0\u00a0Debentures
    \n\u00a0\u00a0\u00a0\u00a0b.\u00a0\u00a0\u00a0\u00a0Authorised share capital
    \n\u00a0\u00a0\u00a0\u00a0c.\u00a0\u00a0\u00a0\u00a0Issued capital
    \n\u00a0\u00a0\u00a0\u00a0d.\u00a0\u00a0\u00a0\u00a0Proposed dividend
    \n\u00a0\u00a0\u00a0\u00a0e.\u00a0\u00a0\u00a0\u00a0Revenue reserve<\/p>\n

    \u00a0ILLUSTRATION<\/strong>
    \n\tThe following Trial Balance was extracted from the books of Johnson Nigeria Limited as at 31st<\/sup> December,1990.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
    \u00a0<\/td>\nDr<\/td>\nCr<\/td>\n<\/tr>\n
    Issued and fully paid 20,000 shares of \u20a61 each<\/td>\n\u00a0<\/td>\n20,000<\/td>\n<\/tr>\n
    Share premium<\/td>\n\u00a0<\/td>\n10,000<\/td>\n<\/tr>\n
    General reserve<\/td>\n\u00a0<\/td>\n8,000<\/td>\n<\/tr>\n
    Profit and loss account<\/td>\n\u00a0<\/td>\n3,000<\/td>\n<\/tr>\n
    Stock 1\/1\/90<\/td>\n8,000<\/td>\n\u00a0<\/td>\n<\/tr>\n
    Salaries and wages<\/td>\n5,000<\/td>\n\u00a0<\/td>\n<\/tr>\n
    Discount <\/td>\n200<\/td>\n400<\/td>\n<\/tr>\n
    Carriage inwards <\/td>\n160<\/td>\n\u00a0<\/td>\n<\/tr>\n
    Loans <\/td>\n\u00a0<\/td>\n24,000<\/td>\n<\/tr>\n
    Interest on loan<\/td>\n1,000<\/td>\n\u00a0<\/td>\n<\/tr>\n
    Carriage outwards <\/td>\n560<\/td>\n\u00a0<\/td>\n<\/tr>\n
    Provision for bad depth<\/td>\n\u00a0<\/td>\n2,000<\/td>\n<\/tr>\n
    Preliminary expenses<\/td>\n12,000<\/td>\n\u00a0<\/td>\n<\/tr>\n
    Motor vehicle expenses <\/td>\n1,800<\/td>\n\u00a0<\/td>\n<\/tr>\n
    Director’s salaries<\/td>\n6,000<\/td>\n\u00a0<\/td>\n<\/tr>\n
    Repairs to premises<\/td>\n250<\/td>\n\u00a0<\/td>\n<\/tr>\n
    Rates <\/td>\n1,600<\/td>\n\u00a0<\/td>\n<\/tr>\n
    Premises at cost<\/td>\n20,000<\/td>\n\u00a0<\/td>\n<\/tr>\n
    Motor vehicle at cost<\/td>\n23,000<\/td>\n\u00a0<\/td>\n<\/tr>\n
    Plants and machinery cost<\/td>\n25,000<\/td>\n\u00a0<\/td>\n<\/tr>\n
    Purchases and sales <\/td>\n45,000<\/td>\n91,740<\/td>\n<\/tr>\n
    Provisions for depreciation<\/strong><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
    Plants and machinery<\/td>\n\u00a0<\/td>\n2,500<\/td>\n<\/tr>\n
    Debtors & creditors<\/td>\n12,390<\/td>\n8,000<\/td>\n<\/tr>\n
    Sundry expenses<\/td>\n3,500<\/td>\n\u00a0<\/td>\n<\/tr>\n
    Cash in hand <\/td>\n300<\/td>\n\u00a0<\/td>\n<\/tr>\n
    Cash in bank<\/td>\n4,000<\/td>\n\u00a0<\/td>\n<\/tr>\n
    Returns <\/td>\n240<\/td>\n\u00a0<\/td>\n<\/tr>\n
    \u00a0<\/td>\n170.000<\/td>\n170,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    \u00a0Additional information<\/p>\n

      \n
    • Stock at close \u20a612,500\n<\/li>\n<\/ul>\n
        \n
      • Expense unpaid: motor expenses – \u20a6 20\n<\/li>\n<\/ul>\n

        Insurance – \u20a6 450
        \nSundry experiences – \u20a6400<\/p>\n

          \n
        • \n
          Prepaid expenses: Rate – \u20a6 320\n<\/div>\n

          Sundry expenses – \u20a6 250\n<\/li>\n

        • Provision for bad debts to be increased to – \u20a62,800\n<\/li>\n
        • Part of the premises is sublet at \u20a62,400 per annum\n<\/li>\n
        • Bad debts at 31st<\/sup> December, \u20a6600\n<\/li>\n
        • Monthly salaries and wages bill \u20a6400\n<\/li>\n
        • Loan interest is 5% per annum\n<\/li>\n
        • Provide for depreciation on a straight line method: premises 2% ,plant & machinery 25%,motor vehicle 10%\n<\/li>\n
        • Write off preliminary expenses\n<\/li>\n
        • Transfer to general reserves \u20a65,000 and \u20a65,000 to revenue reserve.\n<\/li>\n<\/ul>\n

          Prepare :<\/p>\n

            \n
          • Trading, Profit and Loss and Appropriation Account of the year ended 31st<\/sup> December ,1990\n<\/li>\n
          • a Balance Sheet as at that date.\n<\/li>\n<\/ul>\n

            \u00a0Solution:
            \n<\/strong>Johnson Nigeria Limited
            \n<\/strong>Trading,profit and loss for the year ended 31st<\/sup> December ,1990<\/p>\n

            \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
            \u00a0<\/td>\n\u00a0<\/td>\n\u20a6<\/td>\n\u00a0<\/td>\n\u20a6<\/td>\n<\/tr>\n
            Opening stock<\/td>\n\u00a0<\/td>\n8,000<\/td>\nSales<\/td>\n91,740<\/td>\n<\/tr>\n
            Add purchases<\/td>\n45,000<\/td>\n\u00a0<\/td>\nLess return inward<\/td>\n(240)<\/td>\n<\/tr>\n
            Add carriage inwards<\/td>\n160<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n91,500<\/td>\n<\/tr>\n
            \u00a0<\/td>\n45,160<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
            Less returns outward<\/td>\n(360)<\/td>\n44,800<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
            Costs of goods available<\/td>\n\u00a0<\/td>\n52,800<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
            Less closing stock<\/td>\n\u00a0<\/td>\n(12,500)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
            Cost of good sold<\/td>\n\u00a0<\/td>\n40,300<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
            Gross profit c\/d<\/td>\n\u00a0<\/td>\n51,200<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
            \u00a0<\/td>\n\u00a0<\/td>\n91,500<\/td>\n\u00a0<\/td>\n91,500<\/td>\n<\/tr>\n
            Operational expenses<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\nGross profit b\/d<\/td>\n51,200<\/td>\n<\/tr>\n
            Discount allowed<\/td>\n\u00a0<\/td>\n200<\/td>\nDiscount received<\/td>\n400<\/td>\n<\/tr>\n
            Salaries and wages(400\u00d712)<\/td>\n\u00a0<\/td>\n4,800<\/td>\nRental income<\/td>\n2,400<\/td>\n<\/tr>\n
            Carriage outwards <\/td>\n\u00a0<\/td>\n560<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
            Interest on loan(0.05\u00d724,000)<\/td>\n\u00a0<\/td>\n1,200<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
            Motor on vehicle exp.(1,800+200)<\/td>\n\u00a0<\/td>\n2,000<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
            Director’s salaries <\/td>\n\u00a0<\/td>\n6,000<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
            Repairs to premises<\/td>\n\u00a0<\/td>\n250<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
            Rates (1,600-320)<\/td>\n\u00a0<\/td>\n1,280<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
            Provision of depreciation<\/strong><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
            Premises (0.02\u00d720,000)<\/td>\n\u00a0<\/td>\n400<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
            Plant and machinery(0.25\u00d725,000)<\/td>\n\u00a0<\/td>\n6,250<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
            Motor vehicle (0.1\u00d723,000)<\/td>\n\u00a0<\/td>\n2,300<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
            Sundry expenses(3,500 + 400)= <\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
            3,900 \u2013 250<\/td>\n\u00a0<\/td>\n3,650<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
            Insurance <\/td>\n\u00a0<\/td>\n450<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
            Bad debts <\/td>\n\u00a0<\/td>\n600<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
            Provision for bad debts<\/td>\n\u00a0<\/td>\n800<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
            Net profit c\/d<\/td>\n\u00a0<\/td>\n23,260<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
            \u00a0<\/td>\n\u00a0<\/td>\n26,260<\/td>\n\u00a0<\/td>\n26,260<\/td>\n<\/tr>\n
            General reserves<\/td>\n\u00a0<\/td>\n5,000<\/td>\nNet profit b\/d<\/td>\n23,260<\/td>\n<\/tr>\n
            Revenue reserves<\/td>\n\u00a0<\/td>\n5,000<\/td>\nProfit brought forward<\/td>\n3,000<\/td>\n<\/tr>\n
            Preliminary expenses written off<\/td>\n\u00a0<\/td>\n12,000<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
            Undistributed profit c\/d<\/td>\n\u00a0<\/td>\n4,260<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
            \u00a0<\/td>\n\u00a0<\/td>\n26,260<\/td>\n\u00a0<\/td>\n26,260<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

            Balance sheet as at 31st<\/sup> December ,1990<\/p>\n

            \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
            Authorized share capital \u20a6<\/td>\n\n\u00a0Fixed assets \u20a6<\/td>\n<\/tr>\n
            20,000 ordinary shares of \u20a61 each<\/td>\n20,000<\/td>\n\u00a0<\/td>\nCost <\/td>\nDep. <\/td>\nNBC<\/td>\n<\/tr>\n
            Issued share capital<\/td>\nPremises <\/td>\n20.000<\/td>\n(400)<\/td>\n19,600<\/td>\n<\/tr>\n
            20,000 ordinary shares for \u20a61 each<\/td>\n20,000<\/td>\nMotor vehicle<\/td>\n23,000<\/td>\n(2,300)<\/td>\n20,700<\/td>\n<\/tr>\n
            \u00a0<\/td>\nPlant and machinery<\/td>\n25,000<\/td>\n(8,750)<\/td>\n16,250<\/td>\n<\/tr>\n
            Reserves <\/td>\nCurrent Assets<\/td>\n<\/tr>\n
            General reserves(5000+8,000)<\/td>\n13,000<\/td>\nCash in hand <\/td>\n300<\/td>\n<\/tr>\n
            Revenue reserves<\/td>\n5,000<\/td>\nDebtors (12,390 \u2013 600)=<\/td>\n\u00a0<\/td>\n<\/tr>\n
            \n\u00a0Share premium<\/td>\n10,000<\/td>\n\n\u00a011,790 \u2013 2,800<\/td>\n8,990<\/td>\n<\/tr>\n
            Retained profit<\/td>\n4,260<\/td>\nStock<\/td>\n12,500<\/td>\n<\/tr>\n
            Long term liabilities<\/td>\n\u00a0<\/td>\nBank<\/td>\n4,000<\/td>\n<\/tr>\n
            Loans<\/td>\n24,000<\/td>\nRent receivable<\/td>\n2,400<\/td>\n<\/tr>\n
            Current liabilities<\/td>\n\u00a0<\/td>\nPrepaid :<\/td>\nRates <\/td>\n320<\/td>\n<\/tr>\n
            Creditors <\/td>\n8,000<\/td>\n\u00a0<\/td>\nSundry expense <\/td>\n250<\/td>\n<\/tr>\n
            Loan interest owing<\/td>\n200<\/td>\n\u00a0<\/td>\nWages and salaries <\/td>\n200<\/td>\n<\/tr>\n
            Motor expenses owing<\/td>\n200<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
            Insurance accrued<\/td>\n450<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
            Sundry expenses owing<\/td>\n400<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
            \u00a0<\/td>\n85,510<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n85,510<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

            \u00a0
            \n\u00a0Evaluation
            \n<\/strong><\/p>\n

              \n
            1. What is fixed assets and give five examples of fixed assets.\n<\/li>\n<\/ol>\n
                \n
              1. Define intangible assets and mention three examples\n<\/li>\n<\/ol>\n

                \u00a0Reading assignment
                \n<\/strong>Essential Financial Accounting page 265-282<\/p>\n

                \u00a0Weekend Assignment
                \n<\/strong><\/p>\n

                  \n
                1. Net purchase in trading account is —————- (a)purchases \u2013return outwards (b) purchases \u2013 return inward (c)purchases \u2013 carriage inwards (d) purchases – sales\n<\/li>\n
                2. Net sales in trading account is ————– (a)purchases \u2013 sales (b)sales \u2013 return inwards (c)sales \u2013 return outwards (d) sales + purchases\n<\/li>\n
                3. Working capital is ————— (a)current assets \u2013 current liabilities ( b) current liabilities \u2013 current assets (c) total current assets (d) current assets + stock\n<\/li>\n
                4. Capital owned is ————— (a)current assets \u2013 total liabilities (b) total assets \u2013 total liabilities (c) total assets + total capital (d) current assets + stock\n<\/li>\n
                5. Capital employed is ———– (a)total assets \u2013 current liabilities (b)total assets \u2013 total liabilities (c ) total liabilities + all assets (d) current assets + current liabilities\n<\/li>\n<\/ol>\n

                  \u00a0THEORY
                  \n<\/strong><\/p>\n

                    \n
                  1. What is bonus issue?\n<\/li>\n
                  2. Enumerate five features of private limited company.\n<\/li>\n<\/ol>\n

                    GENERAL EVALUATION
                    \n<\/strong><\/p>\n

                      \n
                    1. List five methods of providing for depreciation of fixed assets.\n<\/li>\n
                    2. State five reasons for making provision for depreciation of fixed assets.\n<\/li>\n
                    3. List eight errors that will affect the agreement of the trial balance.\n<\/li>\n
                    4. Give five reasons for preparing departmental accounts.\n<\/li>\n
                    5. List and explain five classifications of the Ledger.\n<\/li>\n<\/ol>\n


                      \n\t\t<\/strong>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

                      \u00a0WEEK EIGHT THE FINAL ACCOUNTS OF LIMITED LIABILITY COMPANIES The final accounts of limited liability…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,293],"tags":[],"class_list":["post-3780","post","type-post","status-publish","format-standard","hentry","category-posts","category-first-term-ss3-financial-accounting"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts\/3780","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=3780"}],"version-history":[{"count":1,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts\/3780\/revisions"}],"predecessor-version":[{"id":3781,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts\/3780\/revisions\/3781"}],"wp:attachment":[{"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/media?parent=3780"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/categories?post=3780"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/tags?post=3780"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}