Accountancy Accountancy As Level(Form Five) Accountancy Notes Form Five (As Level)

ACCOUNTANCY As LEVEL(FORM FIVE) NOTES – ACCOUNTING ENTRIES

ACCOUNTING ENTRIES1. On setting aside the amount of depreciation; DR: Depreciation a/c or P+L a/c CR: Depreciation Fund a/cNote: The amount to be charged by

Accountancy Accountancy A Level(Form Six) Accountancy Notes Form Six (A Level)

ACCOUNTANCY 6 – COMPANY ACCOUNT 1.4

DR REDEEMABLE DEBENTURES ACCOUNT CR1st yearDeb.Redemption300015,00031.12.90Bal.c/d12,00015,00015,000Balance b/d12,000 DR DISCOUNT ON ISSUE DEBENTURE ACCOUNT CRDeb.Appl.&Allot75031.12.90P & L250Bal. c/d500750750 DR DEBENTURE REDEMPTION ACCOUNT CR311.2.91cash3000Reedemable Deb.300030003000Discount on deb.

Accountancy Accountancy As Level(Form Five) Accountancy Notes Form Five (As Level)

ACCOUNTANCY As LEVEL(FORM FIVE) NOTES – THE NATURE AND CONTEXT OF ACCOUNTANCY(1)

THE NATURE AND CONTEXT OF ACCOUNTANCYBrief history of Accounting:-Early references to the subject of accounting may be found in the works of certain ancient oriental

Accountancy Accountancy A Level(Form Six) Accountancy Notes Form Six (A Level)

ACCOUNTANCY A LEVEL(FORM SIX) NOTES – COMPANY ACCOUNT 1.1

COMPANY ACCOUNT 1.1What is a company?It is a voluntary association of persons formed to carry out some business for profit , with capital divisible into

Accountancy Accountancy A Level(Form Six) Accountancy Notes Form Six (A Level)

ACCOUNTANCY A LEVEL(FORM SIX) NOTES – COMPANY ACCOUNT 1.7

COST CLASSIFICATIONCost may be classified under three categories;i.) Fixed and variable costii.) Direct and indirect costiii.) Cost classification by functionFIXED AND VARIABLE COST. (FIXED COST)FIXED

Accountancy Accountancy A Level(Form Six) Accountancy Notes Form Six (A Level)

ACCOUNTANCY A LEVEL(FORM SIX) NOTES – COMPANY ACCOUNT 1.6

(iv) Insurance Policy method:-Instead of investing the sum in securities, the same is paid by way of an Insurance premium to an Insurance company which

Accountancy Accountancy As Level(Form Five) Accountancy Notes Form Five (As Level) History Notes

ACCOUNTANCY ACCOUNTANCY As LEVEL(FORM FIVE) NOTES – CORRECTION OF ACCOUNTING ERRORS

CORRECTION OF ACCOUNTING ERRORSINTRODUCTIONError-MistakeRectification-CorrectionErrors may occur1.While the transactions are initially recorded.2.While the ledge account are being recorded.3.While the trial balance is bean prepared.CLASSIFICATION OF ERRORS1.Arithmetical

Accountancy Accountancy A Level(Form Six) Accountancy Notes Form Six (A Level)

ACCOUNTANCY A LEVEL(FORM SIX) NOTES – STOCK VALUATION

STOCK VALUATIONConcept;Stock/inventoryThe Tanzania statement of Accounting Guidelines No 2 which deals with the valuation of inventories in the context of the historical cost system states

Accountancy Accountancy A Level(Form Six) Accountancy Notes Form Six (A Level)

ACCOUNTANCY A LEVEL(FORM SIX) NOTES – PARTNERSHIP (CONTRACT).(4)

PARTNERSHIP (CONTRACT).Death of a partner:From the Accountancy point of view, the only difference between retirement and the death of the partner is that in the

Accountancy Accountancy As Level(Form Five) Accountancy Notes Form Five (As Level)

ACCOUNTANCY As LEVEL(FORM FIVE) NOTES – ACCOUNTING ENTRIES(3)

ACCOUNTING ENTRIES1. On setting aside the amount of depreciation; DR: Depreciation a/c or P+L a/c CR: Depreciation Fund a/cNote: The amount to be charged by

Accountancy Accountancy A Level(Form Six) Accountancy Notes Form Six (A Level)

ACCOUNTANCY 6 – COMPANY ACCOUNT 1.2

DR APPLICATION & ALLOTMENT CRBank(refund)80,000Bank(applied money)380,000ordinary share capital(10+5)x2500)375,000Bank(allot money)325,000premium share(10×25,000)250,000705,000705,000 DR ORDINARY SHARE ACCOUNT CRBalance c/d1,250,0001st call375,000Application &allotment375,0002nd call500,0001,250,0001,250,000Balance b/d1,250,000 DR 2ND CALL ACCOUNT CRordinary

Accountancy Accountancy As Level(Form Five) Accountancy Notes Form Five (As Level)

ACCOUNTANCY As LEVEL(FORM FIVE) NOTES – RESERVES AND PROVISIONS (3)

RESERVES AND PROVISIONS INTRODUCTION:Any business firm must have an asset in conducting its activities.Assets are the possessions of the business.They are things of value that

Accountancy Accountancy A Level(Form Six) Accountancy Notes Form Six (A Level)

ACCOUNTANCY A LEVEL(FORM SIX) NOTES – WEAKNESS OF ESTIMATION METHOD

WEAKNESS OF ESTIMATION METHODThe stock estimation technique covered has assumed that the gross profit margin is stable in the period of estimation.They also assume that

Accountancy Accountancy A Level(Form Six) Accountancy Notes Form Six (A Level)

ACCOUNTANCY A LEVEL(FORM SIX) NOTES – RETIREMENT OF A PARTNER:(3)

RETIREMENT OF A PARTNER:We have discussed the accountancy problems that arise on admission of a new partner.In this character, we shall look at the problems

Accountancy Accountancy A Level(Form Six) Accountancy Notes Form Six (A Level)

ACCOUNTANCY A LEVEL(FORM SIX) NOTES – PAYROLL ACCOUNTING/EMPLOYEES PAY(5)

PAYROLL ACCOUNTING/EMPLOYEES PAYAll business entities have to pay employee’s for the services. An employee is the one who perform services, subject to the supervision and

Accountancy Accountancy A Level(Form Six) Accountancy Notes Form Six (A Level)

ACCOUNTANCY A LEVEL(FORM SIX) NOTES – MODE OF PAYMENT(2)

MODE OF PAYMENT(i) Cash paid to all partners outside the business or paid privately(ii) Cash paid through the firm or business, such cash may be(a)