TOPIC 5:DEPRECIATION | B/KEEPING FORM 3 Cost of a Fixed Asset Determine the cost of a fixed asset Depreciation is the systematic reduction in the recorded cost of a fixed asset. Examples of fixed assets that can be depreciated are buildings, furniture, leasehold improvements, and office equipment. The only exception is land, which is not … Read more
TOPIC 4: CAPITAL EXPENDITURE AND REVENUE EXPENDITURE | B/KEEPING FORM 3 Meaning of Capital Expenditure and Revenue Expenditure Give the meaning of capital expenditure and revenue expenditure Capital Expenditure Payments made in cash or cash equivalents over a period of more than one year. Capital expenditures are used to acquire assets or improve the useful … Read more
TOPIC 3: ADJUSTMENTS | B/KEEPING FORM 3 Adjusting entries are accounting journal entries that convert a company’s accounting records to the accrual basis of accounting. An adjusting journal entry is typically made just prior to issuing a company’s financial statements. The Reasons Why the Life of a Business is divided into Accounting Period Explain why … Read more
TOPIC 2: CORRECTION OF ERRORS | B/KEEPING FORM 3 Wrong Entries Identify wrong entries An accounting error is a non-fraudulent discrepancy in financial documentation. The term is used in financial reporting. Types of accounting errors include: Error of omission — a transaction that is not recorded. Error of commission — a transaction that is calculated … Read more
TOPIC 1: GENERAL JOURNAL | B/KEEPING FORM 3 The Purpose of General Journal Explain the purpose of the General journal You are an accounting student; you do not need to be told just how difficult accounting can be. Accountants analyze business transactions and record them in journal entries using debit-credit rules as a guide. Usually, an … Read more
TOPIC 3: BANK RECONCILIATION STATEMENT | B/KEEPING FORM 2 Meaning of Bank Reconciliation Statement Define Bank reconciliation Statement Bank reconciliation is the process of matching the balances in an entity’s accounting records for a cash account to the corresponding information on a bank statement. The goal of this process is toascertain the differences between the … Read more
TOPIC 5: SOURCES OF GOVERNMENT FUNDS AND EXPENDITURE ESTIMATES | B/KEEPING FORM 2 Sources of Government Funds and Expenditure Estimates Indentify sources of government funds and Expenditure Estimates Government revenue refer to the income generated by the government through various income sources inside and outside the particular government, As to any other person one will … Read more
TOPIC 4: GOVERNMENT ACCOUNTING TERMINOLOGY | B/KEEPING FORM 1 Meaning of the term Accounting Define the term accounting Accounting is the systematic and comprehensive recording of financial transactions pertaining to a business. Accounting also refers to the process of summarizing, analyzing and reporting these transactions. The financial statements that summarize a large company’s operations, financial … Read more
TOPIC 4: GOVERNMENT ACCOUNTING TERMINOLOGY | B/KEEPING FORM 2 Meaning of the term Accounting Define the term accounting Accounting is the systematic and comprehensive recording of financial transactions pertaining to a business. Accounting also refers to the process of summarizing, analyzing and reporting these transactions. The financial statements that summarize a large company’s operations, financial … Read more
Operation of the Petty Cash Book Determine the operation of the petty cash Book Petty Cash Book: Petty cash book is a kind of cash book which records large number of small payments such as conveyance, cartage, postage, telegrams and other expenses under the imprest system. These expenses are repetitive in nature. The procedure becomes … Read more