TOPIC 6: ELEMENTS OF AUDITING | B/KEEPING FORM 4 Elements of Auditing Meaning of Auditing Define auditing Auditing refers to a systematic and independent examination of books, accounts, documents and vouchers of an organization to ascertain how far the financial statements present a true and fair view of the concern. It also attempts to ensure that … Read more
TOPIC 5: DEPARTMENTAL ACCOUNTS | B/KEEPING FORM 4 Departmental Accounts The Trading Account for a Departmental Store Draw up the trading account for a departmental store Introduction: Departmental Accounts are accounts relating to the several departments or sections of a business drawn up with a view to ascertaining their individual performances. A business may have … Read more
TOPIC 4: PARTNERSHIPS | B/KEEPING FORM 4 The Basic Characteristics of a Partnership Describe the basic characteristics of a partnership Definition: The proprietorship form of ownership suffers from certain limitations such as limited resources, limited skill and unlimited liability. Expansion in business requires more capital and managerial skills and also involves more risk. A proprietor finds … Read more
TOPIC 3: CONSIGNMENT | B/KEEPING FORM 4 The Account in the Consignors and Consignee’s Books Show the account in the consignors and consignee’s books Consignment Overview Consignment occurs when goods are sent by their owner (the consignor) to an agent (the consignee), who undertakes to sell the goods. The consignor continues to own the goods … Read more
TOPIC 2: JOINT VENTURES The Meaning of Joint Venture Define a joint venture An association of two or more individuals or companies engaged in a solitary business enterprise for profit without actual partnership or incorporation; also called a joint adventure. A joint venture is a contractual business undertaking between two or more parties. It is … Read more
TOPIC 2: JOINT VENTURES ~ BOOK KEEPING FORM 4 The Meaning of Joint Venture Define a joint venture An association of two or more individuals or companies engaged in a solitary business enterprise for profit without actual partnership or incorporation; also called a joint adventure. A joint venture is a contractual business undertaking between two or … Read more
TOPIC 1: BILLS OF EXCHANGE | B/KEEPING FORM 4 Meaning of a Bill of Exchange Define a bill of exchange Bill of exchange is written order letter in which there is not any condition. Writer’s sign will be in it. In this letter, order to other person is given to pay the certain sum of … Read more
TOPIC 13: GOVERNMENT BUDGETING PROCEDURE | B/KEEPING FORM 3 Meaning of a Budget Define a budget : A budget is a set of interlinked plans that quantitatively describe an entity’s projected future operations. A budget is used as a yardstick against which to measure actual operating results, for the allocation of funding, and as a … Read more
TOPIC 12: ACCOUNTS OF NON-PROFIT MAKING ORGANIZATIONS | B/KEEPING FORM 3 Accounting of Non-Profit Making Organizations Preparation of Statement of Affairs Prepare statements of affairs Certainly, proper accounting is essential for non-trading institutions. These concerns maintain, generally, a cash book and later they prepare a summary of cash transactions appearing in the cash book. This … Read more
TOPIC 11: INCOMPLETE RECORDS | B/KEEPING FORM 3 Statements Showing Profit or Loss From Incomplete Records Draw up statements to show profit or loss from incomplete records Some times, businesses, especially small businesses do not maintain a full set of double entry records. Consequently, no trial balance will be produced and a complete set of … Read more