Author: Msomi Bora

TOPIC 1: GENERAL JOURNAL The purpose of bookkeeping is to record all business transactions, these transactions are very necessary. The general journal act as the ‘diary’ of the business. The process of recording these transactions in general journal is called journalizing. General Journal In this concept, you are going to learn about general journal, the purpose of general journal and the relationship between general journal and genera ledger. The Purpose of General Journal Explain the purpose of the General journal Lets talk about the personal diary first. Your diary is used to record your life events. It include recording when, where, how…

BOOK KEEPING NOTES FOR FORM TWO Click the links below to view the notes: TOPIC 1 – BOOKS OF PRIME ENTRY TOPIC 2 – PETTY CASH AND IMPREST SYSTEM (COLUMNAL PETTY CASH BOOK) TOPIC 3 – BANK RECONCILIATION STATEMENT TOPIC 4 – GOVERNMENT ACCOUNTING TERMINOLOGY TOPIC 5 – SOURCES OF GOVERNMENT FUNDS AND EXPENDITURE ESTIMATES

TOPIC 5: SOURCES OF GOVERNMENT FUNDS AND EXPENDITURE ESTIMATES Sources of Government Funds and Expenditure Estimates Sources of Government Funds and Expenditure Estimates Identify 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 be eager to know where government earn money to finance its activity as well as expenditure of the government. The following are the source of revenue of various government including united republic of Tanzania (URT):- Taxation, Like we have discussed in the previous…

TOPIC 4: GOVERNMENT ACCOUNTING TERMINOLOGY Meaning of Government Counting Terminology Meaning of the term Accounting Define the term accounting Accounting is the systematic and comprehensive recording of financial transactions pertaining to a business. Accounting also refers to the process of summarizing, analyzing and reporting these transactions. The financial statements that summarize a large company’s operations, financial position and cash flows over a particular period are a concise summary of hundreds of thousands of financial transactions it may have entered into over this period. Accounting is one of the key functions for almost any business; it may be handled by a…

TOPIC 3: BANK RECONCILIATION STATEMENT Bank Reconciliation Statement 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 two, and to book changes to the accounting records as appropriate. The information on the bank statement is the bank’s record of all transactions impacting the entity’s bank account during the past month. A bank reconciliation should be completed at regular intervals for all bank accounts,…

TOPIC 2: PETTY CASH AND IMPREST SYSTEM ( COLUMNAL PETTY CASH BOOK) Petty Cash and Imprest System (Columnal Petty Cash Book) Operation of the Petty Cash Book Determine the operation of the petty cash Book Petty Cash Book: Petty cash book is a kind of cash book which records large number of small payments such as conveyance, cartage, postage, telegrams and other expenses under the imprest system. These expenses are repetitive in nature. The procedure becomes cumbersome if all small and repetitive payments are handled by the main cashier and are recorded in the main cash book. The cash book…

TOPIC 1: BOOKS OF PRIME ENTRY Books of Prime Entry The Meaning of Books of Original Entry or Subsidiary Books Give the meaning of books of original entry or subsidiary books The ledger accounts of a business are the main source of information used to prepare the financial statements. However, if a business were to update their ledger books each time a transaction occurred, the ledger accounts would quickly become cluttered and errors might be made. This would also be a very time consuming process. To avoid this complication, all transactions are initially recorded in a book of prime entry.…

BOOK KEEPING NOTES FOR FORM ONE Click the links below to view the notes: TOPIC 1 – SUBJECT MATTER OF BOOK KEEPING TOPIC 2 – PRINCIPLES OF DOUBLE ENTRY SYSTEM TOPIC 3 – CLASSIFICATION OF ACCOUNTS TOPIC 4 – TRIAL BALANCE TOPIC 5 – STOCK TOPIC 6 – ELEMENTARY TRADING PROFIT AND LOSS ACCOUNTS TOPIC 7 – ELEMENTARY BALANCE SHEET

TOPIC 7: ELEMENTARY BALANCE SHEET Elementary Balance Sheet The Balance Sheet Define the balance sheet The balance sheet, also called the statement of financial position, is the third general purpose financial statement prepared during the accounting cycle. It reports a company’s assets, liabilities, and equity at a single moment in time. You can think of it like a snapshot of what the business looked like on that day in time. Unlike the income statement, the balance sheet does not report activities over a period of time. The balance sheet is essentially a picture a company’s recourses, debts, and ownership on…

TOPIC 6: ELEMENTARY TRADING PROFIT AND LOSS ACCOUNTS Elementary Trading Profit and Loss Accounts Final accounts give a concise idea about the profitability and financial position of a business to its management, owners, and other interested parties. All business transactions are first recorded in a journal. They are then transferred to a ledger and balanced. These final tallies are prepared for a specific period. The final accounts consist of trading account, profit and loss account, and balance sheet. Trading, Profit and Loss Account Describe what a Trading, profit and Loss account is Trading account are those accounts prepared at the end of accounting…