TOPIC 9: MANUFACTURING ACCOUNT | B/KEEPING FORM 3 Manufacturing Account Difference in Accounting for Stocks between Manufacturing Companies and Merchandising Companies Explain the difference in accounting for stocks between manufacturing companies and merchandising companies The businesses which produce and sell the items prepare the following accounts at the end of its accounting year:- The Manufacturing … Read more
TOPIC 8: BALANCE SHEET (CLASSIFIED) | B/KEEPING FORM 3 Meaning of Each Asset and Liability Classification Appearing on a Balance Sheet Define each asset and liability classification appearing on a balance sheet A classified balance sheet presents information about an entity’s assets, liabilities, and shareholders’ equity that is aggregated (or “classified”) into subcategories of accounts. … Read more
TOPIC 7: FINANCIAL STATEMENTS | B/KEEPING FORM 3 General Purpose Financial Statements Describe general purpose financial statements Financial Statements Definition: Financial statements are a collection of reports about an organization’s financial results, financial condition, and cash flows. They are useful for the following reasons: To determine the ability of a business to generate cash, and … Read more
TOPIC 6: BAD DEBTS | B/KEEPING FORM 3 The Bad Depts Account Show the bad debts account What are bad debts? The term bad debts usually refers to accounts receivable (or trade accounts receivable) that will not be collected. However, bad debts can also refer to notes receivable that will not be collected. The bad debts … Read more
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 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