WEEK 1 Subject: Commerce Class: SS 2 Topic: Limited Companies Content: 1. Meaning of Limited companies Types of Limited companies Formation (legal requirements) of limited companies. Sub-Topic 1: Meaning of limited companies A limited liability company is a business owned by a number of people, operated by a legal person on behalf of
FIRST TERM E-LEARNING NOTE SUBJECT: FINANCIAL ACCOUNTING CLASS: SS 2 FIRST TERM E-LEARNING NOTE SUBJECT: FINANCIAL ACCOUNTING CLASS: SS2 SCHEME OF WORK WEEK TOPIC FINAL ACCOUNTS – SPECIAL TRANSACTIONS; BAD DEBTS, CLOSING ENTRIES FINAL ACCOUNTS – PROVISION FOR DOUBTFUL DEBTS PROVISION FOR DISCOUNTS ACCRUALS AND PREPAYMENTS ACCRUALS AND
FIRST TERM E-LEARNING NOTE SUBJECT: FINANCIAL ACCOUNTING CLASS: SS 2 WEEK TEN FINAL ACCOUNTS – FULLY WORKED EXERCISES Illustration: The following trial balance has been extracted from the ledgers of Mr. Johnson as at 31st December, 2003. DR CR ₦ ₦ Purchases / Sales 142,448 233,120 Returns
FIRST TERM E-LEARNING NOTE SUBJECT: FINANCIAL ACCOUNTING CLASS: SS 2 WEEKNINE TOPIC: DEPRECIATION OF FIXED ASSETS ACCOUNTING TREATMENT OF DEPRECIATION There are two ways of treating depreciation in the ledgers. These are the Old Method and the Modern Method. However, the Modern Method which is preferred by accountants will
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
