Month: January 2022

These are the methods developed to assist in estimating the amount of depreciation to be charged in the profit and loss account as an expense. The methods chosen by a firm should be in accordance with the agreed accounting practice, Read More …

It is the loss of value of a non-current asset throughout its period of use by the firm. IAS 16 on property, plant and equipment defines depreciation as the allocation of a depreciable amount of a non-current asset over its Read More …

RESEARCH METHODS FOREWORD Proposal and thesis writing are areas of research that have provided challenges to many students and scholars. However, the ability to identify, define and research an issue or problem impacting on education, business or society is a Read More …

Capital Expenditure: This is the amount spent on the acquisition of a non-current asset or adding value to a non-current asset. Examples of expenses incurred in acquisition: Purchase price/cost of the asset. Delivery/carriage inwards costs (e.g. shipping charges or import Read More …

This is a simple report that shows the assets and liabilities of the business and the capital of the owner as at a certain point in time. The format is at shown below: Name Statement of financial position as at Read More …

It shows the net profit or net loss that the business has made from all the activities during a financial period. The net profit (or loss) is determined by deducting all the expenses from all the incomes of the same Read More …

Trading Account The trading account summarises the trading activities (sale and purchase of goods/stocks) of the business and tries to determine the gross profit for the relevant financial period. The gross profit is then taken up in the profit and Read More …

1. To update the cashbook with some of the items appearing in the bank statement e.g. bank charges, interest charges and dishonored cheques and make adjustments for any errors reflected in the cashbook. 2. To detect and prevent errors or Read More …

Unpresented Cheques: Cheques issued by the firm for payment to the creditors or to other supplies but have not been presented to the firm’s bank for payment. Uncredited deposits/cheques: These are cheques received from customers and other sources for which Read More …

Introduction The cashbook for cash at bank records all the transactions taking place at the bank i.e. the movements of the account held with the bank. The bank will send information relating to this account using a bank statement for Read More …