Month: February 2021

INTRODUCTION The objectives of IAS 8 Accounting Policies, Changes in Estimate and Errors are: Set out the criteria for choosing and changing accounting policies and Accounting treatment and disclosure of changes in accounting policies, changes in accounting estimates and correction Read More …

INTRODUCTION  Introduction – Inventories An Inventory is a list, but as raw materials, work-in-progress and finished good are detailed on lists or inventories, the term inventories is now commonly used to mean the items on those lists. The calculation of Read More …

OBJECTIVE The objectives of IAS 1 are to: Provide the formats for the presentation of Financial Statements, such as Statement of Comprehensive Income and Statement of Financial Position. Ensure that the Financial Statements are comparable year on year for the Read More …

SUSPENSE ACCOUNTS A suspense account is a nominal ledger account which is created in two main situations: If the trial balance does not balance the difference is placed in a suspense account; and If the bookkeeper is unsure of the Read More …

THE CASH BOOK AND BANK RECONCILIATION STATEMENTS  The Cash Book – Introduction Cash transactions are the simplest and most universal form of business transaction. For example: A sells B some goods for RWF150. From A’s point of view, he has Read More …

CONTROL ACCOUNTS The two most common examples of control accounts are the sales ledger control account and purchases ledger control account. These are sometimes known respectively as the trade receivables ledger and the trade payables ledger control accounts. A control Read More …

ACCRUALS AND PREPAYMENTS The overriding criteria when preparing accounts, is that the Statement of Comprehensive Income  must give a true and fair view of the profit or loss earned for the period and that the Statement of Financial Position must Read More …

ENTRY/BOOKS OF FIRST ENTRY In order to extract a trial balance, an Statement of Comprehensive Income  and Statement of Financial Position, the information must be posted to the accounting books.  These accounting books are known by a number of names Read More …

GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP)  The phrase Generally Accepted Accounting Principles is a technical accounting term that encompasses the conventions, rules and procedures necessary to define accepted accounting practice at a particular time.  It includes not only broad guidelines of Read More …

 INTRODUCTION Financial accounting is a branch of economics.  It involves gathering, recording, summarising and presenting information to the various users of financial information.  THE OBJECTIVE OF FINANCIAL STATEMENTS The objective of financial statements is to provide information about the financial Read More …