SCHEME OF WORK
WEEK:
1. Revision of last term`s work.
2. Determination of profit and loss from statement of affairs.
3. Preparation of trading, profit and loss account from incomplete records.
4. Accounts of non profit organisatio-meaning, features, limitation and format-preparation of receipts and payment accounts.
5. Income and expenditure accounts- Meaning, rules, Contents, Similarities and differences of Receipts and payments income and expenditure accounts.
6. Treatment of subscription and other norminal, accounts in arrears and advance.
7. Working exercise on receipts and payments accounts, income and expenditure and balance sheet.
8. Introduction to partnership account- meaning, types, format, partnership Deeds/ agreement and types of accounts.
9. Working exercise on Appropriation account, Capital Account and Current Account.
10. Admission of New Partners- Goodwill account, revaluation of assets, Treatment of Charges in Profit Sharing Ratio.
11. General revision of terms works
3RD TERM
WEEK 1
TOPIC: Incomplete record & single entry
REFERENCE BOOK
a. Essential Book Keeping for S.S.S by O.A. Longe
b. Simplified Book keeping Accounting for S.S.S. by F.C. Olatunji
c. Book keeping and account for S.S.S. students in West Africa by Lanre Akinpelu
SUBTOPIC: Incomplete record
BEHAVIOURAL OBJECTIVES: At the end of the lesson, students should be able to:
a. Define single entry
b. State the characteristics of single entry
c. Ascertain profit from incomplete.
CONTENT
Single entry is a system of accounting which ignores the two-fold aspect of each transaction. It is often referred to as incomplete record. The account is often applied to books of account kept on a single entry system.
Characteristics of single entry
a. Only personal accounts of debtors and creditors are kept.
b. Profit and loss could only be ascertained by comparing capital at the beginning and capital at the end.
c. Real and nominal accounts are not kept.
EVALUATION: Define single entry, state one characteristics of an incomplete record.
ASSIGNMENT: Mention four(4) steps to follow in ascertaining profit from an incomplete record.
SUBTOPIC: Single entry
BEHAVIOURAL OBJECTIVES: At the end of the lesson, students should be able to prepare account on single entry.
CONTENT
Example
Mr Okoro did not keep his account on double entry basis. As a book-keeper you are required to prepare the statement of profit from the following information.
..............................................Dec 1997..................Dec. 1998
Furniture & fittings.....................1000........................1000
Cash..........................................200..........................845
Motor van.................................1800........................1800
Stock.....................................10,200.....................11,200
Bank overdraft..........................9,000.......................7,000
Debtors....................................6,200.......................4,900
Creditors..................................4,560.......................4,200
Bills receivable..........................1,550.......................1,600
Bills payable.............................1,105.......................1,100
During the year, he estimated the total drawings in cash as 2,580 and part of the stock costing 120 were used for domestic purpose. The following information was agreed upon.
a. To write off bad debts N300
b. To allow 15% depreciation of furniture and fittings and 20% on motor van
You are required to ascertain in the profit or loss for the year ended 31st Dec. 1998.
EVALUATION: Draw the format of the statements of affairs to get capital.
ASSIGNMENT: Exercise. 23: 11 Page 214 of simplified book keeping and accounting
REFERENCE BOOK
a. Essential Book Keeping for S.S.S by O.A. Longe
b. Simplified Book keeping Accounting for S.S.S. by F.C. Olatunji
c. Book keeping and account for S.S.S. students in West Africa by Lanre Akinpelu
SUBTOPIC: Incomplete record
BEHAVIOURAL OBJECTIVES: At the end of the lesson, students should be able to:
a. Define single entry
b. State the characteristics of single entry
c. Ascertain profit from incomplete.
CONTENT
Single entry is a system of accounting which ignores the two-fold aspect of each transaction. It is often referred to as incomplete record. The account is often applied to books of account kept on a single entry system.
Characteristics of single entry
a. Only personal accounts of debtors and creditors are kept.
b. Profit and loss could only be ascertained by comparing capital at the beginning and capital at the end.
c. Real and nominal accounts are not kept.
EVALUATION: Define single entry, state one characteristics of an incomplete record.
ASSIGNMENT: Mention four(4) steps to follow in ascertaining profit from an incomplete record.
SUBTOPIC: Single entry
BEHAVIOURAL OBJECTIVES: At the end of the lesson, students should be able to prepare account on single entry.
CONTENT
Example
Mr Okoro did not keep his account on double entry basis. As a book-keeper you are required to prepare the statement of profit from the following information.
..............................................Dec 1997..................Dec. 1998
Furniture & fittings.....................1000........................1000
Cash..........................................200..........................845
Motor van.................................1800........................1800
Stock.....................................10,200.....................11,200
Bank overdraft..........................9,000.......................7,000
Debtors....................................6,200.......................4,900
Creditors..................................4,560.......................4,200
Bills receivable..........................1,550.......................1,600
Bills payable.............................1,105.......................1,100
During the year, he estimated the total drawings in cash as 2,580 and part of the stock costing 120 were used for domestic purpose. The following information was agreed upon.
a. To write off bad debts N300
b. To allow 15% depreciation of furniture and fittings and 20% on motor van
You are required to ascertain in the profit or loss for the year ended 31st Dec. 1998.
EVALUATION: Draw the format of the statements of affairs to get capital.
ASSIGNMENT: Exercise. 23: 11 Page 214 of simplified book keeping and accounting
WEEK 2
TOPIC: Incomplete Record & Single Entry
REFERENCE BOOK
a. Essential Book Keeping for S.S.S by O.A. Longe
b. Simplified Book keeping Accounting for S.S.S. by F.C. Olatunji
c. Book keeping and account for S.S.S. students in West Africa by Lanre Akinpelu
SUBTOPIC: Single Entry
BEHAVIOURAL OBJECTIVES: At the end of the lesson, students should be able to prepare final accounts from incomplete records.
CONTENT
The following procedures must be followed in preparing final accounts from an incomplete record.
a. Preparation of opening statements of affairs to ascertain the opening capital.
b. Draw total creditors and debtors control accounts to ascertain sales and purchases.
c. Re-construct any nominal account chargeable to profit and loss account.
d. Prepare the trading profit and loss account and balance sheet.
EVALUATION State the procedures to follow in preparing final accounts from single entry.
ASSIGNMENT: Exercise 19.2 financial accounting by O.A. Longe
SUBTOPIC: Single Entry
BEHAVIOURAL OBJECTIVES: At the end of the lesson, students should be able to prepare exercise on preparation of profit and loss account using.
Incomplete records.
view content below
https://docs.google.com/leaf?id=0Bz3Mh6 ... m&hl=en_US
EVALUATION: State the statement of profit or loss in incomplete records.
ASSIGNMENT: Exercise 19.2 Essential financial accounting for SSS by O.A. Longe
REFERENCE BOOK
a. Essential Book Keeping for S.S.S by O.A. Longe
b. Simplified Book keeping Accounting for S.S.S. by F.C. Olatunji
c. Book keeping and account for S.S.S. students in West Africa by Lanre Akinpelu
SUBTOPIC: Single Entry
BEHAVIOURAL OBJECTIVES: At the end of the lesson, students should be able to prepare final accounts from incomplete records.
CONTENT
The following procedures must be followed in preparing final accounts from an incomplete record.
a. Preparation of opening statements of affairs to ascertain the opening capital.
b. Draw total creditors and debtors control accounts to ascertain sales and purchases.
c. Re-construct any nominal account chargeable to profit and loss account.
d. Prepare the trading profit and loss account and balance sheet.
EVALUATION State the procedures to follow in preparing final accounts from single entry.
ASSIGNMENT: Exercise 19.2 financial accounting by O.A. Longe
SUBTOPIC: Single Entry
BEHAVIOURAL OBJECTIVES: At the end of the lesson, students should be able to prepare exercise on preparation of profit and loss account using.
Incomplete records.
view content below
https://docs.google.com/leaf?id=0Bz3Mh6 ... m&hl=en_US
EVALUATION: State the statement of profit or loss in incomplete records.
ASSIGNMENT: Exercise 19.2 Essential financial accounting for SSS by O.A. Longe
WEEK 3
TOPIC: Accounts of Non-profit making organization
REFERENCE BOOK
a. Essential Book Keeping for S.S.S by O.A. Longe
b. Simplified Book keeping Accounting for S.S.S. by F.C. Olatunji
c. Book keeping and account for S.S.S. students in West Africa by Lanre Akinpelu
SUBTOPIC: Introduction to Accounts of Non-profit making organization
BEHAVIOURAL OBJECTIVES: At the end of the lesson, students should be able to:
a. Define clubs & societies.
b. State the features of non-profit making organization
c. Define income & Expenditure.
CONTENT
Introduction: Clubs, societies and charitable organizations are non-profit making institution, which provides welfare services to their members as well as promotion of group activities. They are not set up to make profit.
Features of Non-profit making organization
1. They are not set up to make profit
2. Funds are available from member's contribution
3. Promotion of welfare activities to member
4. Surplus are not distributed as dividend.
EVALUATION: State the features of non-profit making organization.
ASSIGNMENT: Mention and explain five(5) features of non-profit making organization
SUBTOPIC: Receipts and payments account
OBJECTIVES: At the end of the lesson, students should be able to:
a. Define receipts and payments accounts
b. State the features of receipt and payments account.
CONTENT
Receipt and Payment Account.
This is the account that shows the summary of the cashbook over a particular period of time. In this account, capital receipts and payments. Revenue receipts and payments are included
Receipts are debited and payments are credited.
Features of receipts and payments account.
a. It is a real account
b. Balance represent cash in hand
c. Only actual receipts and payments are recorded
d. It include capital and revenue items.
e. Accruals and prepayments are not included.
EVALUATION: Explain the term receipts and payments accounts.
ASSIGNMENT: State five(5) features of receipts and payments account
REFERENCE BOOK
a. Essential Book Keeping for S.S.S by O.A. Longe
b. Simplified Book keeping Accounting for S.S.S. by F.C. Olatunji
c. Book keeping and account for S.S.S. students in West Africa by Lanre Akinpelu
SUBTOPIC: Introduction to Accounts of Non-profit making organization
BEHAVIOURAL OBJECTIVES: At the end of the lesson, students should be able to:
a. Define clubs & societies.
b. State the features of non-profit making organization
c. Define income & Expenditure.
CONTENT
Introduction: Clubs, societies and charitable organizations are non-profit making institution, which provides welfare services to their members as well as promotion of group activities. They are not set up to make profit.
Features of Non-profit making organization
1. They are not set up to make profit
2. Funds are available from member's contribution
3. Promotion of welfare activities to member
4. Surplus are not distributed as dividend.
EVALUATION: State the features of non-profit making organization.
ASSIGNMENT: Mention and explain five(5) features of non-profit making organization
SUBTOPIC: Receipts and payments account
OBJECTIVES: At the end of the lesson, students should be able to:
a. Define receipts and payments accounts
b. State the features of receipt and payments account.
CONTENT
Receipt and Payment Account.
This is the account that shows the summary of the cashbook over a particular period of time. In this account, capital receipts and payments. Revenue receipts and payments are included
Receipts are debited and payments are credited.
Features of receipts and payments account.
a. It is a real account
b. Balance represent cash in hand
c. Only actual receipts and payments are recorded
d. It include capital and revenue items.
e. Accruals and prepayments are not included.
EVALUATION: Explain the term receipts and payments accounts.
ASSIGNMENT: State five(5) features of receipts and payments account
WEEK 4
TOPIC: Accounts of Non-Profit organization
REFERENCE BOOK
a. Essential Book Keeping for S.S.S by O.A. Longe
b. Simplified Book keeping Accounting for S.S.S. by F.C. Olatunji
c. Book keeping and account for S.S.S. students in West Africa by Lanre Akinpelu
SUBTOPIC: Income and Expenditure account
OBJECTIVES: At the end of the lesson students should be able to:
a. Differentiate between income and expenditure and receipts and payments account
b. State the features of income and expenditure account
c. Prepare subscription accounts
d. State the format of statement of affairs.
view content 1 below
https://docs.google.com/leaf?id=0Bz3Mh6 ... h&hl=en_US
Features of income & expenditure accounts
a. Equivalent of profit & loss in a trading a/c
b. Balance represent surplus or deficit
c. Expenditure are debited and income credited
d. It is a nominal a/c
e. Adjustments for accruals and prepayments are made
f. Capital receipts and expenditure are not posted but only revenue items.
EVALUATION: State three(3) differences between receipts and payments, income and expenditure a/c.
ASSIGNMENT: State five(5) features of income and expenditure account
SUBTOPIC: Preparation of subscriptions account
BEHAVIOURAL OBJECTIVES: At the end of the lesson, students should be able to:
a. Define subscription account
b. Mention the two(2) types of subscription
c. State the format of subscription account
view content 2 below
https://docs.google.com/leaf?id=0Bz3Mh6 ... h&hl=en_US
EVALUATION: Differentiate between subscription in arrears and subscription in advance.
ASSIGNMENT: Exercise 20.2 of financial accounting by O.A Longe
SUBTOPIC: Preparation of subscription account
BEHAVIOURAL OBJECTIVES:
As the end of the lesson, students should be able to:
a. Define subscription a/c
b. Mention the two(2) types of subscription
c. State the format of subscription a/c
view content 3 below
https://docs.google.com/leaf?id=0Bz3Mh6 ... h&hl=en_US
EVALUATION: Differentiate between subscription arrears and subscription in advance.
ASSIGNMENT: Exercise 20.2 of financial accounting by O.A. Longe
REFERENCE BOOK
a. Essential Book Keeping for S.S.S by O.A. Longe
b. Simplified Book keeping Accounting for S.S.S. by F.C. Olatunji
c. Book keeping and account for S.S.S. students in West Africa by Lanre Akinpelu
SUBTOPIC: Income and Expenditure account
OBJECTIVES: At the end of the lesson students should be able to:
a. Differentiate between income and expenditure and receipts and payments account
b. State the features of income and expenditure account
c. Prepare subscription accounts
d. State the format of statement of affairs.
view content 1 below
https://docs.google.com/leaf?id=0Bz3Mh6 ... h&hl=en_US
Features of income & expenditure accounts
a. Equivalent of profit & loss in a trading a/c
b. Balance represent surplus or deficit
c. Expenditure are debited and income credited
d. It is a nominal a/c
e. Adjustments for accruals and prepayments are made
f. Capital receipts and expenditure are not posted but only revenue items.
EVALUATION: State three(3) differences between receipts and payments, income and expenditure a/c.
ASSIGNMENT: State five(5) features of income and expenditure account
SUBTOPIC: Preparation of subscriptions account
BEHAVIOURAL OBJECTIVES: At the end of the lesson, students should be able to:
a. Define subscription account
b. Mention the two(2) types of subscription
c. State the format of subscription account
view content 2 below
https://docs.google.com/leaf?id=0Bz3Mh6 ... h&hl=en_US
EVALUATION: Differentiate between subscription in arrears and subscription in advance.
ASSIGNMENT: Exercise 20.2 of financial accounting by O.A Longe
SUBTOPIC: Preparation of subscription account
BEHAVIOURAL OBJECTIVES:
As the end of the lesson, students should be able to:
a. Define subscription a/c
b. Mention the two(2) types of subscription
c. State the format of subscription a/c
view content 3 below
https://docs.google.com/leaf?id=0Bz3Mh6 ... h&hl=en_US
EVALUATION: Differentiate between subscription arrears and subscription in advance.
ASSIGNMENT: Exercise 20.2 of financial accounting by O.A. Longe
WEEK 5
TOPIC: Income and expenditure account
RFERENCES BOOKS
a. Essential book keeping and accounting for S.S.S by O.A longe and R.A Kazeem
b. Simplified book k and accounting for S.S.S.
c. Comprehensive financial accounting for S.S.S
SUBTOPIC: Income and expenditure account
BEHAVIOURAL OBJECTIVES: At the end of the lesson, students should be able to:
a. Explain subscription account
b. Describe the format of subscription account
view content below
https://docs.google.com/leaf?id=0Bz3Mh6 ... y&hl=en_US
EVALUATION:
a. Explain the format of subscription account
b. What is the treatment of subscription in arrears in the balance sheet?
ASSIGNMENT: What is accumulated fund?
SUBTOPIC: Working exercises on income and expenditure
BEHAVIOURAL OBJECTIVES: At the end of the lesson, students should be able to:
a. Explain the procedures to be followed when preparing income and expenditure account.
b. Describe the necessary adjustment to be effected when preparing income and expenditure account.
view content below
https://docs.google.com/leaf?id=0Bz3Mh6 ... 1&hl=en_US
EVALUATION
a. Differentiate between receipt and payment account
b. What are the procedures to be followed when preparing income and expenditure account.
ASSIGNMENT: Mention three (3) features of non-profit making organization.
SUBTOPIC: Trading activities of non-profit making organization
BEHAVIOURAL OBJECTIVES: At the end of the lesson, students should be able to:
a. Explain how a non-profit making organization can increase their financial base
b. Prepare trading profit and loss account for a non-profit making organization running bars and restaurant
c. Explain the treatment of profit or loss realized from such trading activities
view content below
https://docs.google.com/leaf?id=0Bz3Mh6 ... z&hl=en_US
EVALUATION: List four features of an income and expenditure account.
ASSIGNMENT: Give two similarities and two difference between a receipt and payment account and income and expenditure account.
RFERENCES BOOKS
a. Essential book keeping and accounting for S.S.S by O.A longe and R.A Kazeem
b. Simplified book k and accounting for S.S.S.
c. Comprehensive financial accounting for S.S.S
SUBTOPIC: Income and expenditure account
BEHAVIOURAL OBJECTIVES: At the end of the lesson, students should be able to:
a. Explain subscription account
b. Describe the format of subscription account
view content below
https://docs.google.com/leaf?id=0Bz3Mh6 ... y&hl=en_US
EVALUATION:
a. Explain the format of subscription account
b. What is the treatment of subscription in arrears in the balance sheet?
ASSIGNMENT: What is accumulated fund?
SUBTOPIC: Working exercises on income and expenditure
BEHAVIOURAL OBJECTIVES: At the end of the lesson, students should be able to:
a. Explain the procedures to be followed when preparing income and expenditure account.
b. Describe the necessary adjustment to be effected when preparing income and expenditure account.
view content below
https://docs.google.com/leaf?id=0Bz3Mh6 ... 1&hl=en_US
EVALUATION
a. Differentiate between receipt and payment account
b. What are the procedures to be followed when preparing income and expenditure account.
ASSIGNMENT: Mention three (3) features of non-profit making organization.
SUBTOPIC: Trading activities of non-profit making organization
BEHAVIOURAL OBJECTIVES: At the end of the lesson, students should be able to:
a. Explain how a non-profit making organization can increase their financial base
b. Prepare trading profit and loss account for a non-profit making organization running bars and restaurant
c. Explain the treatment of profit or loss realized from such trading activities
view content below
https://docs.google.com/leaf?id=0Bz3Mh6 ... z&hl=en_US
EVALUATION: List four features of an income and expenditure account.
ASSIGNMENT: Give two similarities and two difference between a receipt and payment account and income and expenditure account.
WEEK 6
TOPIC: Further working exercise on receipt and payment account and income and expenditure account.
REFERENCE BOOKS:
1. Essential Financial Accounting for senior secondary school by O.A Longe and R.A kazeem.
2. Simplified Book keeping and accounting for senor secondary school by Femi Longe.
3. Comprehensive Financial accounting for senior secondary schools.
SUB-TOPIC: Receipt and payment account
BEHAVIOURAL OBJECTIVES: at the end of the lesson, students should be able to
1. Explain the procedures to be followed when preparing receipt and payment account.
2. Prepare receipt and payment account from a given question.
CONTENT
Receipt and payment account
Question
The treasurer of Hemlet Drama Club provided the following information of money received and paid during the year ended 31/12/2007.
N
Subscription received 3900
Receipt from cafe sales 3500
Purchases of cafe supplies 1620
Purchases of new equipment 1750
Wages of part-time cafe assistant 1000
Wages of part-time care taker 1600
Rates and insurance 480
Receipt from tickets for annual play 2220
Expenses of annual play 1650
Administration expenses 740
You are required to prepare the receipt and payments account of the Hamlet Drama Club for the year ended 30/6/2007.
EVALUATION: In what ways is income and expenditure account different from receipt and payment account?
SUBTOPIC: Accumulated Fund
BEHAVIOURAL OBJECTIVES: At the end of the lesson, students should be able to:
a. Explain accumulated fund
b. Prepare statement of affairs with the ultimate aim of ascertaining accumulated fund.
CONTENT
QUESTION
Ajegunjeun Social Club had the following assets and liabilities
N
Club premises 20,000
Bar stocks 2,000
Bar creditors 1,800
Subscription received in advance 200
Balance at bank 1300
Cash in hand 200
Electricity charges owing 500
You are required to calculate the balance of the club's accumulated fund on 1/197. Show your workings.
EVALUATION
a. State the types of expenditure in an non-profit making organization.
ASSIGNMENT: What are the sources of income to a non-profit making organization?
SUBTOPIC: Advantages of income and expenditure and receipt and payment account
BEHAVIOURAL OBJECTIVES: At the end of the lesson, students should be able to:
a. Explain the purpose and advantages of receipt and payment account
b. Discuss the advantages of preparing income and expenditure account.
CONTENT
Advantages of receipt and payment account and income and expenditure account.
a. It shows the summary of the cash book over a certain period of time
b. It helps to ascertain the cash balance at any point in time.
c. Income and expenditure account helps to monitor the progress of the organization
d. It reveals the spending pattern of the organization.
EVALUATION: What are the reasons for preparing income and expenditure account?
ASSIGNMENT: Differentiate between subscription in arrears and subscription prepaid
REFERENCE BOOKS:
1. Essential Financial Accounting for senior secondary school by O.A Longe and R.A kazeem.
2. Simplified Book keeping and accounting for senor secondary school by Femi Longe.
3. Comprehensive Financial accounting for senior secondary schools.
SUB-TOPIC: Receipt and payment account
BEHAVIOURAL OBJECTIVES: at the end of the lesson, students should be able to
1. Explain the procedures to be followed when preparing receipt and payment account.
2. Prepare receipt and payment account from a given question.
CONTENT
Receipt and payment account
Question
The treasurer of Hemlet Drama Club provided the following information of money received and paid during the year ended 31/12/2007.
N
Subscription received 3900
Receipt from cafe sales 3500
Purchases of cafe supplies 1620
Purchases of new equipment 1750
Wages of part-time cafe assistant 1000
Wages of part-time care taker 1600
Rates and insurance 480
Receipt from tickets for annual play 2220
Expenses of annual play 1650
Administration expenses 740
You are required to prepare the receipt and payments account of the Hamlet Drama Club for the year ended 30/6/2007.
EVALUATION: In what ways is income and expenditure account different from receipt and payment account?
SUBTOPIC: Accumulated Fund
BEHAVIOURAL OBJECTIVES: At the end of the lesson, students should be able to:
a. Explain accumulated fund
b. Prepare statement of affairs with the ultimate aim of ascertaining accumulated fund.
CONTENT
QUESTION
Ajegunjeun Social Club had the following assets and liabilities
N
Club premises 20,000
Bar stocks 2,000
Bar creditors 1,800
Subscription received in advance 200
Balance at bank 1300
Cash in hand 200
Electricity charges owing 500
You are required to calculate the balance of the club's accumulated fund on 1/197. Show your workings.
EVALUATION
a. State the types of expenditure in an non-profit making organization.
ASSIGNMENT: What are the sources of income to a non-profit making organization?
SUBTOPIC: Advantages of income and expenditure and receipt and payment account
BEHAVIOURAL OBJECTIVES: At the end of the lesson, students should be able to:
a. Explain the purpose and advantages of receipt and payment account
b. Discuss the advantages of preparing income and expenditure account.
CONTENT
Advantages of receipt and payment account and income and expenditure account.
a. It shows the summary of the cash book over a certain period of time
b. It helps to ascertain the cash balance at any point in time.
c. Income and expenditure account helps to monitor the progress of the organization
d. It reveals the spending pattern of the organization.
EVALUATION: What are the reasons for preparing income and expenditure account?
ASSIGNMENT: Differentiate between subscription in arrears and subscription prepaid
WEEK 7
TOPIC: Partnership
REFERENCES BOOKS:
a. Essential book keeping and accounting for S.S.S by O.A. longe and R.A. Kazeem
b. Simplified book keeping and accounting for S.S.S
c. Comprehensive financial accounting for S.S.S
SUBTOPIC: Meaning of Partnership
BEHAVIOURAL OBJECTIVES: At the end of the lesson, students should be able to:
a. Explain the meaning of partnership
b. Describe the formation of partnership
c. Describe partnership deed
CONTENT
Partnership
Partnership is defined in partnership Act 1890 as the relationship which subsists between persons carrying on business in common with a view to making profit. The maximum number of persons who may form a partnership is limited to twenty except in the case of solicitors, accountants etc. the minimum number allowed under this law is 2persons.
Deed of Partnership
This is a document drawn up by the partners which contains the rules and regulations guiding the partnership business.
EVALUATION:
a. Explain partnership
b. Describe the formation of partnership.
ASSIGNMENT: What is partnership deed? Why is the document important in the formation of partnership business
SUBTOPIC: Content of partnership deed
BEHAVIOURAL OBJECTIVES: At the end of the lesson, students should be able to:
a. State and explain the content of partnership deed.
b. Discuss the problems that may emanate from partnership business without partnership deed.
CONTENT
Contents of deed of partnership
a. Proportion of capital to be contributed by the partners
b. Profit and loss sharing ratio
c. Rate of interest on drawings
d. Rate of interest on capital
e. How much salaries to be paid
f. Valuation of goodwill
g. Dissolution of partnership
h. The name of the partners
i. The firm's name
j. Signatories to the account
k. Duration of the partnership
l. Rights and duties of the partners
EVALUATION:In what five ways is partnership deed important to partnership business?
SUBTOPIC: Capital account of partnership
BEHAVIOURAL OBJECTIVES: At the end of the lesson students should be able to:
a. Explain fixed capital account
b. Describe fluctuating capital account.
CONTENT
Partnership capital Account
The partner capital account can either be fixed capital of fluctuating capital account
Fixed capital account
Where the partnership agreement provides for a capital, the partnership must in addition open a current account for each partner. The fixed capital under this arrangement remains fixed from year to year except when there is additional capital or profit on revaluation of assets.
Fluctuation capital account
Just like the name implies, the balance on this account change from year to year.
EVALUATION: differentiate between fixed capital account from fluctuating capital account of partnership.
ASSIGNMENT
a. Write the format of fixed capital account of partnership
b. Give reasons for the inclusion of the following in partnership agreements
c. Interest on partners capital
d. Interest on partner's drawing
REFERENCES BOOKS:
a. Essential book keeping and accounting for S.S.S by O.A. longe and R.A. Kazeem
b. Simplified book keeping and accounting for S.S.S
c. Comprehensive financial accounting for S.S.S
SUBTOPIC: Meaning of Partnership
BEHAVIOURAL OBJECTIVES: At the end of the lesson, students should be able to:
a. Explain the meaning of partnership
b. Describe the formation of partnership
c. Describe partnership deed
CONTENT
Partnership
Partnership is defined in partnership Act 1890 as the relationship which subsists between persons carrying on business in common with a view to making profit. The maximum number of persons who may form a partnership is limited to twenty except in the case of solicitors, accountants etc. the minimum number allowed under this law is 2persons.
Deed of Partnership
This is a document drawn up by the partners which contains the rules and regulations guiding the partnership business.
EVALUATION:
a. Explain partnership
b. Describe the formation of partnership.
ASSIGNMENT: What is partnership deed? Why is the document important in the formation of partnership business
SUBTOPIC: Content of partnership deed
BEHAVIOURAL OBJECTIVES: At the end of the lesson, students should be able to:
a. State and explain the content of partnership deed.
b. Discuss the problems that may emanate from partnership business without partnership deed.
CONTENT
Contents of deed of partnership
a. Proportion of capital to be contributed by the partners
b. Profit and loss sharing ratio
c. Rate of interest on drawings
d. Rate of interest on capital
e. How much salaries to be paid
f. Valuation of goodwill
g. Dissolution of partnership
h. The name of the partners
i. The firm's name
j. Signatories to the account
k. Duration of the partnership
l. Rights and duties of the partners
EVALUATION:In what five ways is partnership deed important to partnership business?
SUBTOPIC: Capital account of partnership
BEHAVIOURAL OBJECTIVES: At the end of the lesson students should be able to:
a. Explain fixed capital account
b. Describe fluctuating capital account.
CONTENT
Partnership capital Account
The partner capital account can either be fixed capital of fluctuating capital account
Fixed capital account
Where the partnership agreement provides for a capital, the partnership must in addition open a current account for each partner. The fixed capital under this arrangement remains fixed from year to year except when there is additional capital or profit on revaluation of assets.
Fluctuation capital account
Just like the name implies, the balance on this account change from year to year.
EVALUATION: differentiate between fixed capital account from fluctuating capital account of partnership.
ASSIGNMENT
a. Write the format of fixed capital account of partnership
b. Give reasons for the inclusion of the following in partnership agreements
c. Interest on partners capital
d. Interest on partner's drawing
WEEK 8
TOPIC: Partnership account
REFERENCES BOOKS:
a. Essential book keeping and accounting for S.S.S by O.A. longe and R.A. Kazeem
b. Simplified book keeping and accounting for S.S.S
c. Comprehensive financial accounting for S.S.S
SUBTOPIC: Current account of partners
BEHVAIOURAL OBJECTIVES: At the end of the lesson, students should be able to:
a. Explain current accounts of partners
b. Explain the format of partners current account
CONTENT
Partners Current Accounts
These accounts are opened to record transactions between each partners and the partnership firm. A current account is opened for each partner into which are is opened for each partner into which are credited interest on capital, salaries share of profit and debited with drawings, interest on drawing. The balance on this account is usually stated in the balance sheet.
Dr Format of Current Account of Partnership Cr
A B A B
Drawings
Interest on drawing
Balance c/d X
X
X
X
X
X
Balance b/f
Interest on capital
Salaries
Share of profits
Balance c/d X
X
X
X
X X
X
X
X
X
X X X X
view table below
https://drive.google.com/file/d/0Bz3Mh6 ... sp=sharing
EVALUATION: What are the contents of current account of partner?
ASSIGNMENT: Name two(2) items that would appear in a partner’s current account?
ii. Abee and Seedy are in partnership. The shares of profit allocated to them were N2000 and N3000 respectively. Extracts from the following
N N
Drawing Capital
Abee 10,000 20,000
Seedy 4,000 5,000
If interest on capital and drawing was 5% and 10% respectively. Prepare the current account for the partners.
SUBTOPIC: Appropriation Account
BEHAVIOURAL OBJECTIVES: At the end of the lesson students should be able to:
a. Explain profit and loss appropriation account of partnership
b. Prepare profit and loss appropriation account of partners from a given question
Profit and loss appropriation account.
This is an account prepared after trading, profit and loss account of partnership to show how the net profit is shared out between the partners. The first step is to add to the net profit on the credit side interest on drawings. Then interest on capital and salary will be debited to the account. The residual profit would be shared among the partners according to their profit and loss sharing ratio
Dr Format of profit and loss appropriation account Cr
Partners salary A X Net profit X
Interest on capital
A X
B X
X Interest on drawings
X
Interest on current a/c X
Share of profit
A ½ x profit X
B ½ x profit X
X
X X
view tables below
https://drive.google.com/file/d/0Bz3Mh6 ... sp=sharing
EVALUATION: Teacher tests the understanding of the students by asking the following questions
a. Define profit and loss appropriation account of partnership
b. State 2 reasons for preparing appropriation account
ASSIGNMENT: A and B are partners in a partnership business sharing profit and losses equally. The interest on capital and drawing sins 10%, The details below was given
Capital Drawing
A 50,000 500
B 60,000 1000
A is to be given the salary of N2000. Prepare the profit and loss appropriation account of the partners if the net profit for the year amounted to N200,000
SUBTOPIC: Final account of partnership
BEHAVIOURAL OBJECTIVES: At the end of the lesson, student should be able to:
a. Explain final account of partnership
b. Differentiate between final account of partnership and that of a sole trader
CONTENT
Final account of partnership
The trading, profit and loss accounts are exactly the same as that of a sole trader. But a partnership would have an extra section called appropriation account. Final accounts of partnership include:
a. Trading account
b. Profit and loss account
c. Appropriate account
d. Balance sheet
EVALUATION: Differentiate between the final account of a sole trader and that of partnership
ASSIGNMENT: Exercise 22.5A page 235 of essential financial accounting for S.SS by O.A longe and R.A Kazeem
REFERENCES BOOKS:
a. Essential book keeping and accounting for S.S.S by O.A. longe and R.A. Kazeem
b. Simplified book keeping and accounting for S.S.S
c. Comprehensive financial accounting for S.S.S
SUBTOPIC: Current account of partners
BEHVAIOURAL OBJECTIVES: At the end of the lesson, students should be able to:
a. Explain current accounts of partners
b. Explain the format of partners current account
CONTENT
Partners Current Accounts
These accounts are opened to record transactions between each partners and the partnership firm. A current account is opened for each partner into which are is opened for each partner into which are credited interest on capital, salaries share of profit and debited with drawings, interest on drawing. The balance on this account is usually stated in the balance sheet.
Dr Format of Current Account of Partnership Cr
A B A B
Drawings
Interest on drawing
Balance c/d X
X
X
X
X
X
Balance b/f
Interest on capital
Salaries
Share of profits
Balance c/d X
X
X
X
X X
X
X
X
X
X X X X
view table below
https://drive.google.com/file/d/0Bz3Mh6 ... sp=sharing
EVALUATION: What are the contents of current account of partner?
ASSIGNMENT: Name two(2) items that would appear in a partner’s current account?
ii. Abee and Seedy are in partnership. The shares of profit allocated to them were N2000 and N3000 respectively. Extracts from the following
N N
Drawing Capital
Abee 10,000 20,000
Seedy 4,000 5,000
If interest on capital and drawing was 5% and 10% respectively. Prepare the current account for the partners.
SUBTOPIC: Appropriation Account
BEHAVIOURAL OBJECTIVES: At the end of the lesson students should be able to:
a. Explain profit and loss appropriation account of partnership
b. Prepare profit and loss appropriation account of partners from a given question
Profit and loss appropriation account.
This is an account prepared after trading, profit and loss account of partnership to show how the net profit is shared out between the partners. The first step is to add to the net profit on the credit side interest on drawings. Then interest on capital and salary will be debited to the account. The residual profit would be shared among the partners according to their profit and loss sharing ratio
Dr Format of profit and loss appropriation account Cr
Partners salary A X Net profit X
Interest on capital
A X
B X
X Interest on drawings
X
Interest on current a/c X
Share of profit
A ½ x profit X
B ½ x profit X
X
X X
view tables below
https://drive.google.com/file/d/0Bz3Mh6 ... sp=sharing
EVALUATION: Teacher tests the understanding of the students by asking the following questions
a. Define profit and loss appropriation account of partnership
b. State 2 reasons for preparing appropriation account
ASSIGNMENT: A and B are partners in a partnership business sharing profit and losses equally. The interest on capital and drawing sins 10%, The details below was given
Capital Drawing
A 50,000 500
B 60,000 1000
A is to be given the salary of N2000. Prepare the profit and loss appropriation account of the partners if the net profit for the year amounted to N200,000
SUBTOPIC: Final account of partnership
BEHAVIOURAL OBJECTIVES: At the end of the lesson, student should be able to:
a. Explain final account of partnership
b. Differentiate between final account of partnership and that of a sole trader
CONTENT
Final account of partnership
The trading, profit and loss accounts are exactly the same as that of a sole trader. But a partnership would have an extra section called appropriation account. Final accounts of partnership include:
a. Trading account
b. Profit and loss account
c. Appropriate account
d. Balance sheet
EVALUATION: Differentiate between the final account of a sole trader and that of partnership
ASSIGNMENT: Exercise 22.5A page 235 of essential financial accounting for S.SS by O.A longe and R.A Kazeem
WEEK 9
TOPIC: Partnership
REFERENCES BOOKS:
a. Essential book keeping and accounting for S.S.S by O.A. longe and R.A. Kazeem
b. Simplified book keeping and accounting for S.S.S
c. Comprehensive financial accounting for S.S.S
SUBTOPIC: Goodwill
BEHAVIOURAL OBJECTIVES: At the end of the lesson, students should be able to:
a. Define goodwill
b. Describe the types of goodwill
c. State and explain methods of computing goodwill.
CONTENT
Goodwill
Goodwill is the excess of the purchases consideration over the total value of assets less liabilities. It is an intangible asset and cannot be realized except upon the sales of the business. It is the benefit and advantage arising from the good name connection position and reputation of a business which makes it to earn more profit.
Types of Goodwill
There are two types of goodwill. These are
a. Inherit goodwill: this is a type of goodwill which does not arise from acquisition of a business by another but is generated internally
b. Purchased Goodwill. The type of goodwill arises when a business firm takes over another business. It is the difference between the amount paid by the buyer and the book value of the assets acquired. The difference the payment for an asset which cannot be felt or seen.
Goodwill valuation
Variation methods abound for the computation or valuation of goodwill. For purchased goodwill this is simply determined by finding the difference between the purchase consideration and total tangible assets.
For interest goodwill a number of methods such as purchased of average profit, super profit method and number of times of the gross annual fee income can be used.
EVALUATION: What is goodwill?
ASSIGNMENT: Identify and explain the types of goodwill we have.
SUBTOPIC: Computation of Goodwill
BEHAVIOURAL OBJECTIVES: At the end of the lesson, students should be able to:
a. Explain the procedures to be followed when computing goodwill
b. Compute goodwill from a given question
view content below
https://docs.google.com/open?id=0Bz3Mh6 ... I0MzYzZWUx
EVALUATION
a. What is goodwill?
b. State two (2) reasons which create goodwill for any firm or organization.
ASSIGNMENT: Explain why it is necessary to value goodwill when a partner is to be admitted
SUBTOPIC: Treatment of Goodwill on Admission of new partner
BEHAVIOURAL OBJECTIVES: At the end of the lesson, students should be able to:
a. Explain the treatment of goodwill on admission of new partner
b. Describe the raising of goodwill account in the books
c. Explain the treatment when goodwill is written off.
CONTENT
Admission of new partner on the introduction of a new partner the share of the profit taken by each of the partner must change. The existing partners will expect to receive compensation for surrender part of the profit. The goodwill will be brought into the business. This will be dealt with as follows:
a. Raising of goodwill account in the books. There the value of goodwill is debited to goodwill account and credited to the capital account in the partners old profit and loss sharing ratio
b. Goodwill is written off: if the firm does not desire to retain the goodwill in the books it will be necessary to write it off to the capital account of partners in their new profit or loss sharing ratio.
Accounting entries
Goodwill written off - debt
Capital account and credit goodwill account in their new sharing ratio.
EVALUATION: Explain the accounting treatment of goodwill when:
a. Goodwill account is opened
b. Goodwill account is written off.
ASSIGNMENT: The profits of a partnership business of the last 4 years are as follows:
Years N
1990 5000
1991 3000
1992 1500
1993 2500
It has been decided to value goodwill at 2years purchase of average profits for this purpose the average profit may be simple average profits.
Calculate the value of goodwill.
REFERENCES BOOKS:
a. Essential book keeping and accounting for S.S.S by O.A. longe and R.A. Kazeem
b. Simplified book keeping and accounting for S.S.S
c. Comprehensive financial accounting for S.S.S
SUBTOPIC: Goodwill
BEHAVIOURAL OBJECTIVES: At the end of the lesson, students should be able to:
a. Define goodwill
b. Describe the types of goodwill
c. State and explain methods of computing goodwill.
CONTENT
Goodwill
Goodwill is the excess of the purchases consideration over the total value of assets less liabilities. It is an intangible asset and cannot be realized except upon the sales of the business. It is the benefit and advantage arising from the good name connection position and reputation of a business which makes it to earn more profit.
Types of Goodwill
There are two types of goodwill. These are
a. Inherit goodwill: this is a type of goodwill which does not arise from acquisition of a business by another but is generated internally
b. Purchased Goodwill. The type of goodwill arises when a business firm takes over another business. It is the difference between the amount paid by the buyer and the book value of the assets acquired. The difference the payment for an asset which cannot be felt or seen.
Goodwill valuation
Variation methods abound for the computation or valuation of goodwill. For purchased goodwill this is simply determined by finding the difference between the purchase consideration and total tangible assets.
For interest goodwill a number of methods such as purchased of average profit, super profit method and number of times of the gross annual fee income can be used.
EVALUATION: What is goodwill?
ASSIGNMENT: Identify and explain the types of goodwill we have.
SUBTOPIC: Computation of Goodwill
BEHAVIOURAL OBJECTIVES: At the end of the lesson, students should be able to:
a. Explain the procedures to be followed when computing goodwill
b. Compute goodwill from a given question
view content below
https://docs.google.com/open?id=0Bz3Mh6 ... I0MzYzZWUx
EVALUATION
a. What is goodwill?
b. State two (2) reasons which create goodwill for any firm or organization.
ASSIGNMENT: Explain why it is necessary to value goodwill when a partner is to be admitted
SUBTOPIC: Treatment of Goodwill on Admission of new partner
BEHAVIOURAL OBJECTIVES: At the end of the lesson, students should be able to:
a. Explain the treatment of goodwill on admission of new partner
b. Describe the raising of goodwill account in the books
c. Explain the treatment when goodwill is written off.
CONTENT
Admission of new partner on the introduction of a new partner the share of the profit taken by each of the partner must change. The existing partners will expect to receive compensation for surrender part of the profit. The goodwill will be brought into the business. This will be dealt with as follows:
a. Raising of goodwill account in the books. There the value of goodwill is debited to goodwill account and credited to the capital account in the partners old profit and loss sharing ratio
b. Goodwill is written off: if the firm does not desire to retain the goodwill in the books it will be necessary to write it off to the capital account of partners in their new profit or loss sharing ratio.
Accounting entries
Goodwill written off - debt
Capital account and credit goodwill account in their new sharing ratio.
EVALUATION: Explain the accounting treatment of goodwill when:
a. Goodwill account is opened
b. Goodwill account is written off.
ASSIGNMENT: The profits of a partnership business of the last 4 years are as follows:
Years N
1990 5000
1991 3000
1992 1500
1993 2500
It has been decided to value goodwill at 2years purchase of average profits for this purpose the average profit may be simple average profits.
Calculate the value of goodwill.