Financial Accounting

ACCOUNTS FOR NOT-FOR-PROFIT ORGANIZATIONS LEARNING OBJECTIVES

There are several organizations that are established and run for the purposes of meeting the social, cultural, health and , at times, educational needs of the citizens. Such organizations are not set-up for the purpose of making profits from their activities and are thus called not-for-profit organizations. Examples include government-owned hospitals, voluntary health and welfare […]

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SINGLE ENTRY AND INCOMPLETE RECORDS

Introduction This topic is about how to prepare trading, profit and loss account under an incomplete record or single-entry accounting system. Meaning This is system of accounting of financial transactions that are recorded without conformity with the rule of double entry’. The records so prepared based on a single entry or one-leg entry by any

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ADMISSION OF NEW PARTNER AND RETIREMENT OF AN EXISTING PARTNER IN CONTINUING BUSINESS

Partnership changes usually occur during a financial year and the accounting records are contrived without interruption. Final accounts are prepared at the end of the financial year. When a partner leaves the firm or a new partner joins, it marks the end of one partnership and the beginning of a new one. No records and

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THE FINAL ACCOUNTS OF LIMITED LIABILITY COMPANIES

Format of Trading Profit & Loss Account Trading Profit & Loss account for the year ended 31/12/9x Opening Stock                       x                  Stock                               x Add purchases             x                           Less return inward            x Less return outward     x        x                  Gross loss                        x Cost of goods available          x Less closing stock                  x Cost of sales                         x Gross profit c/d                     x X                                                       

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ADMISSION OF PARTNERS, GOODWILL AND REVALUATION OF ASSETS

ADMISSION OF NEW PARTNERS This occurs when a new partner is admitted into an existing partnership business. The reasons for such admission usually are: expiration of old partnership agreement, to inject in more fund, bring in a specialist, death of an old partner, etc. However, it will be unfair to the  existing partners for a

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FINAL ACCOUNTS OF A PARTNERSHIP BUSINESS

PROFIT AND LOSS APPROPRIATION ACCOUNT OF A PARTNERSHIP This, as the name implies, is the account where either the profit or loss of the partnership business is shared between or among the partners as stipulated in the partnership agreement. The profit and loss appropriation account marks the beginning of the difference between the final accounts

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