FIRST TERM E-LEARNING NOTE SUBJECT: FINANCIAL ACCOUNTING CLASS: SS 2 WEEK SEVEN AND EIGHT TOPIC: DEPRECIATION OF FIXED ASSETS CONTENT Methods of providing for depreciation REDUCING BALANCE METHOD (or DIMINISHING BALANCE METHOD) Under this method, a fixed percentage is written off the reducing (or diminishing) balance of the asset yearly. This
FIRST TERM E-LEARNING NOTE SUBJECT: FINANCIAL ACCOUNTING CLASS: SS 2 WEEK SIX TOPIC: DEPRECIATION OF FIXED ASSETS CONTENT Causes of Depreciation Reasons for charging depreciation Factors to be considered in the computation of depreciation Methods of providing for depreciation NOTES Depreciation may be defined as the permanent and continuing diminution
FIRST TERM E-LEARNING NOTE SUBJECT: FINANCIAL ACCOUNTING CLASS: SS 2 WEEK FOUR AND FIVE FINAL ACCOUNTS – ACCRUALS AND PREPAYMENTS ACCRUALS The accrual concept states that revenue and expenditure of a period should be matched together – whether or not such revenue or expenditure had actually been received or paid for.
FIRST TERM E-LEARNING NOTE SUBJECT: FINANCIAL ACCOUNTING CLASS: SS 2 WEEK THREE FINAL ACCOUNTS – PROVISION FOR DISCOUNTS If a trader usually allows and receives cash discounts the debtors and creditors balances in the Balance Sheet at the end of the year may be overstated unless it is recognized that discounts are
FIRST TERM E-LEARNING NOTE SUBJECT: FINANCIAL ACCOUNTING CLASS: SS 2 WEEK TWO FINAL ACCOUNTS – PROVISION FOR DOUBTFUL DEBTS PROVISION FOR DOUBTFUL DEBTS Although a debt may not actually have become bad, there may be doubt as to whether it will be paid. It would be misleading to include that debt as
FIRST TERM E-LEARNING NOTE SUBJECT: FINANCIAL ACCOUNTING CLASS: SS 2 WEEK ONE FINAL ACCOUNTS – SPECIAL TRANSACTIONS; BAD DEBTS, CLOSING ENTRIES CONTENT SPECIAL ITEMS OF EXPENSES/LOSSES BAD DEBTS RECOVERED CLOSING ENTRIES ADJUSTMENTS IN THE FINAL ACCOUNT SPECIAL ITEMS OF EXPENSES /LOSSES GOODS STOLEN OR DESTROYED Goods may have been stolen
THIRD TERM Examination malpractices may lead to a repeat of the subject or suspensions don’t be involved. SUBJECT FINANCIAL ACCOUNTING CLASS: S. S. S 2 DURATION 3 HRS OBJECTIVE 1. A reserve is an amount a. set aside from profit for an unknown liability b. of loss from trading activities c. of profit from trading
