Author: Msomi Bora

BOOK KEEPING NOTES FOR FORM FOUR Click the links below to view the notes: TOPIC 1 – BILLS OF EXCHANGE TOPIC 2 – JOINT VENTURES TOPIC 3 – CONSIGNMENTS TOPIC 4 – PARTNERSHIPS TOPIC 5 – DEPARTMENTAL ACCOUNTS TOPIC 6 – ELEMENTS OF AUDITING

TOPIC 6: ELEMENTS OF AUDITING 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 the books of accounts are properly maintained by the concern as required by law. Auditing has become such a ubiquitous phenomenon in the corporate and the public sector that academics started identifying an “Audit Society”. The auditor perceives and recognizes the propositions before him/her for examination, obtains evidence, evaluates…

TOPIC 5: DEPARTMENTAL ACCOUNTS 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 a number of departments each dealing in a different type of goods. For instance, Departmental Store is an example of large scale trading by a retail trader. In order to carryout business more efficiently, a businessman divides his store into many sections, each section is called a Department. In…

TOPIC 4: PARTNERSHIPS Partnership 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 him unable to fulfill these requirements. This call for more persons come together, with different edges and start business. For example, a person who lacks managerial skills but may have capital. Another person who is a good manager but may not have capital. When these persons come…

TOPIC 3: CONSIGNMENTS Consignments 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 until they are sold, so the goods appear asinventoryin the accounting records of the consignor, not the consignee. Consignment Accounting – Initial Transfer of Goods When the consignor sends goods to the consignee, there is no need to create an accounting entry related to the physical movement of…

TOPIC 2: JOINT VENTURES 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 similar to a business partnership, with one key difference: a partnership generally involves an ongoing, long-term business relationship, whereas a joint venture is based on a single business transaction. Individuals or companies choose to enter joint ventures in order to share strengths, minimize…

TOPIC 1: BILLS OF EXCHANGE Bills of Exchange 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 money to the writer of letter or to pay any other authorized person or who has this bill of exchange. The Nature of Interest of a Bill of Exchange Explain the nature of interest of a bill of exchange Essential of a Bill of Exchange: There…

  BOOK KEEPING NOTES FOR FORM THREEClick the links below to view the notes:TOPIC 1 – GENERAL JOURNALTOPIC 2 – CORRECTION OF ERRORSTOPIC 3 – ADJUSTMENTSTOPIC 4 – CAPITAL EXPENDITURE AND REVENUE EXPENDITURETOPIC 5 – DEPRECIATIONTOPIC 6 – BAD DEBTSTOPIC 7 – FINANCIAL STATEMENTSTOPIC 8 – BALANCE SHEET (CLASSIFIEDTOPIC 9 – MANUFACTURING ACCOUNTTOPIC 10 – CONTROL ACCOUNTTOPIC 11 – INCOMPLETE RECORDSTOPIC 12 – ACCOUNTS OF NON-PROFIT MAKING ORGANIZATIONSTOPIC 13 – GOVERNMENT BUDGETING PROCEDURE  

TOPIC 13: GOVERNMENT BUDGETING PROCEDURE Government Budgeting Procedur Meaning of a Budget Define a budget How can you create a budget?. Planning for revenues and expenditure is very important in real life, we really have to know about how much coming in and how much money coming out. You will learn how to prepare a scale of preference and priorities you are wants.Watch this video to see you can plan your budget as an individual. Please use a regular YouTube link. A budget is a set of interlinked plans that quantitatively describe an entity’s projected future operations. A budget is used…

TOPIC 12: ACCOUNTS OF NON-PROFIT MAKING ORGANIZATIONS 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 summary takes the form of an account known as receipts and payments account. Such concerns also prepare ‘income and expenditure account’ (which is more or less on the lines of profit and loss account) and the Balance Sheet. The day-to-day accounting consists of maintaining. Cash book for recording receipts…