BOOK KEEPING AND ACCOUNTING
Subject:
ACCOUNTING
Term:
FIRST TERM
Week:
WEEK 1
Class:
SS 1
Topic:
BOOK KEEPING AND ACCOUNTING
Behavioural objectives:
At the end of the lesson, the learners will be able to
- say the difference between accounting and book keeping
- discuss the history of accounting in Nigeria
- explain the important roles of accountants
- point out the institutions that accounting can be studied in Nigeria
Previous lesson:
The pupils have previous knowledge of
FIRST TERM EXAMINATIONS ACCOUNTING SS 1
that was taught as a topic in the previous lesson
Instructional Materials:
- Wall charts
- Pictures
- Related Online Video
- Flash Cards
Methods of Teaching:
- Class Discussion
- Group Discussion
- Asking Questions
- Explanation
- Role Modelling
- Role Delegation
Reference Materials:
- Scheme of Work
- Online Information
- Textbooks
- Workbooks
CONTENT
Meaning of Book Keeping
Meaning of Accounting
History of Accounting in Nigeria
Definition of Accountant
Roles of an Accountant
Types of Accountants
Accounting as a Profession
Meaning of Book Keeping
Book-keeping from time immemorial has been defined as a science of recording business transactions in a systematic manner so as to exact financial position of the business that can be easily ascertained at any time.
Book-keeping may be defined as the art of recording business transactions in a systematic manner so that the books of account will reveal at any time the financial position of the business to the owner and other stakeholders in the business.
Meaning of Accounting
Accounting is the process of obtaining, recording, classifying, summarizing, reporting, interpreting and presenting financial information in a manner that will facilitate informed decision by the users of accounting information.
Boateng, (1884) defines accounting as ”the process of identifying, measuring, and communicating economic and financial information to permit informed judgment and decision by the users of the information”.
EVALUATION
- Define Accounting
- Mention two differences between Book keeping and Accounting
History of Accounting in Nigeria
Origin of Accounting in Nigeria
Nigeria has a long-standing history in international trade even before colonization came to Africa. Back in the olden days, properly organized system of trade and government were in existence in the ancient kingdoms of South- south/ South-west, Western part of Nigeria, and part of the Northern part (Benin, Oyo and Borno, Etc).
The granting of the Royal Charter to Niger Company in 1886 necessitated the preparation of proper records by the company. From that time till the independence in Nigeria in October 1960, the law governing accounting in Nigeria was tailored after her colonial master (Great Britain). The Association of Accountants of Nigeria, which later became Institute of Chartered Accountants of Nigeria, was established in the year 1965. Majority of the members were trained in Britain.
In 1965, the Federal government of Nigeria passed an Act of Parliament No.15 establishing the Institute of Chartered Accountants of Nigeria and was affiliated with the professional Institute of Britain and United State of America (USA).
Many Nigerians came back as professional accountants and became a member. One of the doyens of accounting profession in Nigeria is Chief Akintola Williams. The Institution has about 26,000 Accountants as at December 2008 and more than 120,000 as student members.
The two major accounting professional bodies in Nigeria are the Institute of Chartered Accountants of Nigeria (ICAN) and the Association of National Accountants of Nigeria (ANAN). The Association of National Accountants of Nigeria (ANAN) was formed in 1979 with the Headquarters in Lagos, Nigeria.
In 1982, Nigeria Accounting Standard Board was born to set standards to guide accounting operations.
Members include:
Central Bank of Nigeria
Ministry of Finance
Nigeria Accounting Teachers Association
Chamber of commerce
Office of the Auditor General etc.
Evaluation
1. What is the name of the first accounting book published in Nigeria?
A. “Introduction to Accounting”
B. “The History of Accounting in Nigeria”
C. “Nigerian Accounting Principles”
D. “A Brief History of Nigerian Accounting”
2. When was double-entry bookkeeping first introduced in Nigeria?
A. 18th century
B. 19th century
C. 20th century
D. 21st century
3. Which of the following organizations was NOT involved in the development of accounting education in Nigeria?
A. Institute of Chartered Accountants of Nigeria (ICAN)
B. Nigerian Accounting Standards Board (NASB)
C. Nigerian Institute of Management Accountants (NIMA)
D. Association of National Accountants of Nigeria (ANAN)
4. What was the main purpose of the Accounting Regulations Act of 1977?
A. To establish minimum education requirements for accountants in Nigeria
B. To standardize accounting practices in Nigeria
C. To establish the Nigerian Accounting Standards Board
D. To regulate the accounting profession in Nigeria
5. Which of the following statements is NOT true about the development of accounting in Nigeria?
A. The first accounting book was published in the 18th century
B. Double-entry bookkeeping was first introduced in the 19th century
C. The Accounting Regulations Act of 1977 established minimum education requirements for accountants
D. The Nigerian Accounting Standards Board was established in 1980
Marking Guide
1. B. “The History of Accounting in Nigeria” is the name of the first accounting book published in Nigeria
2. C. Double-entry bookkeeping was first introduced in Nigeria in the 20th century
3. D. The Association of National Accountants of Nigeria was not involved in the development of accounting education in Nigeria
4. B. The main purpose of the Accounting Regulations Act of 1977 was to standardize accounting practices in Nigeria
5. A. The statement “The first accounting book was published in the 18th century” is not true about the development of accounting in Nigeria.
Definition of Accountant
An accountant is a person who has undergone formal or professional training in the process of accounting and who belongs to at least one of the recognized professional accounting bodies.
Roles of an Accountant
Preparation and presentation of timely and accurate financial/ accounting reports to management.
Identification of areas of inefficiency and wastage of resources.
Treasury functions- rising finance, cash management and so on.
Setting up an effective system of internal and accounting controls.
Preparation of feasibility reports.
Investigation of fraud within the organization.
Types of Accountants
Financial Accountant
Cost Accountant
Management Accountant
Tax Accountant
Auditor
Evaluation
1) What type of accountant would you use to file your taxes?
A. Tax accountant
B. Corporate accountant
C. Government accountant
D. Forensic accountant
2) What type of accountant would you use to audit a company’s financial statements?
A. Tax accountant
B. Corporate accountant
C. Government accountant
D. Forensic accountant
3) What type of accountant would you use to work for the IRS?
A. Tax accountant
B. Corporate accountant
C. Government accountant
D. Forensic accountant
4) What type of accountant would you use to investigate fraud?
A. Tax accountant
B. Corporate accountant
C. Government accountant
D. Forensic accountant
5) What type of accountant would you use to manage your personal finances?
A. Tax accountant
B. Corporate accountant
C. Government accountant
D. Forensic accountant
Marking Guide
1) A. Tax accountant
2) D. Forensic accountant
3) C. Government accountant
4) D. Forensic accountant
5) B. Corporate accountant
Accounting as a Profession
Meaning of Profession
A profession is a field of study, a unique career or a job requiring special expertise or skill and operates with principles or standards agreed upon by members (professionals).
Accounting is a profession because it is a field of study or a career that requires figure manipulation skill and unique expertise and operates with sets of principles and standards agreed upon by it’s members (professionals).
Accounting opens doors in every kind of business coast to coast. It can prepare you to become a partner in an accounting firm, to pursue a career in finance or corporate management, to work in government, or even to become an entrepreneur. In fact, no matter what you decide to do, having an accounting background can open doors wide.”
The reason why accounting may be the best route to a successful business career is, accounting has always been considered as the language and basic tool of business. It has always concerned itself with determining how a business is doing and what the bottom line is.
In this increasingly complex and competitive business environment, accounting skills are very much in demand and accounting has become a dynamic career.
Future Prospects for Accountants
The demand for accountants appears to be growing and outstripping supply. Job opportunities in today’s business climate are better than ever for accountants.
EVALUATION
- Summarize the history of accounting in Nigeria in five sentences.
- Mention four future prospects of Accountant.
Conclusion
The subject teacher wraps up or concludes the lesson by giving out short notes to summarize the topic that he or she has just taught.
The class teacher also goes round to make sure that the notes are well copied or well written by the pupils.
He or she makes the necessary corrections when and where the needs arise.