Author: Msomi Bora

TOPIC 5: STOCK Stock Difference between Stock at Start and Stock at Close Distinguish between stock at start and stock at close Stock is the value of the goods that you have on hand to sell to your customers. If you sell services rather than goods, you won’t have any stock. Stock might include raw materials that you buy to make your goods, half-finished goods (known as ‘work in progress’), and finished goods. You must include the value of stock in your accounts at ‘the lower of cost and net realizable value’. That means that if you’re going to sell…

TOPIC 4: TRIAL BALANCE Trial Balance You learn about general journals and general ledger on the first topic. In this topic we’re going to explore the next process of an accounting cycle which is trial balance. You are going to explore what it is and understand how to prepare it.Lets remind ourselves of an accounting cycle before we start to explore about trial balance. Meaning of Trial Balance Define the Trial Balance Trial Balance is a list of closing balances of ledger accounts on…

TOPIC 3: CLASSIFICATION OF ACCOUNTS Classification of Accounts It is necessary to know the classification of accounts and their treatment in double entry system of accounts. Broadly, the accounts are classified into three categories: Personal accounts Impersonal Real accounts Tangible accounts Intangible accounts Let us go through them each of them one by one. Difference between Personal and Impersonal Account Differentiate between personal and impersonal accounts The differences between personal and impersonal accounts can be seen from what is debited and what is credited. In this concept you are going to learn those differences and investigate how they differ. There…

TOPIC 2: PRINCIPLES OF DOUBLE ENTRY SYSTEM Principles of Double Entry System In these concept, you are going to explore more about business transactions. It is very important that, you understand about the basic principles of double entry system. Please watch the following video and remember to share your ideas on the discussion forum. Please use a regular YouTube link. Description of a Business Transaction Describe what a business transaction is Exercise 1 Do you know what steps to take when recording any business transaction? Here is the summarized accounting cycle An accounting transaction is a business event having a monetary…

TOPIC 1: SUBJECT MATTER OF BOOK KEEPING Subject Matter of Book Keeping The Meaning of Book Keeping Define book keeping Book-keeping is an art of recording financial business transaction in a set of books in terms of money or money worth. Bookkeeping involves the recording, storing and retrieving of financial transactions for a company, nonprofit organization and individuals.Prior to computers and software, the bookkeeping for small businesses usually began by writing entries into journals. Journals were defined as the books of original entry. In order to reduce the amount of writing in a general journal, special journals or day books were…

COMMERCE NOTES FOR FORM FOURClick the links below to view the notes:TOPIC 1 – TAXATIONTOPIC 2 – INSURANCETOPIC 3 – BUSINESS UNITSTOPIC 4 – MANAGEMENT AND ORGANIZATIONS

TOPIC 4: MANAGEMENT AND ORGANIZATIONS Management and Organization The Meaning and Importance of Management Explain the meaning and importance of management Management – act of allocating resources to accomplish desired goals and objectives efficiently and effectively. Management comprises planning, organizing, staffing, leading or directing, and controlling an organization (a group of one or more people or entities) or effort for the purpose of accomplishing a goal. or is the organization and coordination of the activities of a business in order to achieve defined objectives. Or is The activities associated with running a company, such as controlling, leading, monitoring, organizing, and planning.…

TOPIC 3: BUSINESS UNITS Business Units The Term Business Units Explain the term business units A business organisation is one unit of control which is engaged in the production or distribution of any commodity.business organisation are of business nature from the point of view of ownership,control and size. It comprise the following sole proprietorship partnership joint stock companies cooperative Meaning of Sole trading; Partnership; Joint Stock Company; Public Enterprise Parastatals; Cooperative Organization Define the following business units: Sole trading; Partnership; Joint stock company; Public enterprise parastatals; Cooperative organization A sole proprietorship, also known as the sole trader or simply a proprietorship, is a type…

TOPIC 2: INSURANCE Insurance The Meaning of Insurance Define Insurance Insurance: is an agreement in which a person makes regular payments to a company and the company promises to pay money if the person is injured or dies, or to pay money equal to the value of something (such as a house or car) if it is damaged, lost, or stolen. Or is the Risk-transfer mechanism that ensures full or partial financial compensation for the loss or damage caused by event(s) beyond the control of the insured party. Under an insurance contract, a party (the insurer) indemnifies the other party…

TOPIC 1: TAXATION There are some services like roads, public hospital and public school that are run by the government. They need money to operate them, not just a small amount of money. To manage those finances,the government needs to collect taxes. In our country, Tanzania Revenue Authority (T.R.A) is responsible for collecting taxes. In this concept, you,re going to explore more about taxation. Taxation Meaning of Taxation Define taxation Taxation refers to the practice of government collecting money from its citizens to pay for public services. or A means by which governments finance their expenditure by imposing charges on citizens…