INTRODUCTION TO CHEMISTRY
Today, we are going to start with CHEMISTRY. Before we proceed, its important you understand the basic fact about the subject. As one of the science subjects, CHEMISTRY can be seen as a science that deels with the study of the composition,properties and uses of matter.Its a subject that explains how living and non-living things exists. It ranges from SOLID, LIQUID and GAS. We are going to stop here for now....!!
FINANCIAL ACCOUNT 101.
THREE COLUMN CASHBOOK.
Hey Guys, it’s a new day to live and learn. Let’s get straight
to work.
Three
Column Cashbook is a book that shows or combines Cash, Bank, and
Discount on the debit and credit sides. On the debit side of the cashbook is
the Discount Allowed column while Discount Received column is on the credit
side.
Discount is the
reduction in the price of Goods in order to encourage Bulk Purchases and Prompt
Payment.
Types of Discount:
1. Trade Discount is an
Allowance made by Manufacturers or Wholesalers, to retailers in form of
Reduction from price of goods supplied.
2. Cash Discount is a
percentage allowance for prompt payment of an account or for payment within a
specified period of time.
Classification of Cash Discount:
1. Discount Allowed is the
discount given to the customers for prompt payment of their account. It will be
entered on the debit side of the three column cashbook and be credited to the
personal account of the customer.
2. Discount Received This is
the discount received from suppliers for prompt payment of their account. It is
credited to the discount received column on the three column cashbook and
debited to
FINANCIAL ACCOUNT 101.
TWO COLUMN CASHBOOK.
Hey Guys, Happy Wednesday. It’s a new day to live and learn,
and we are continuing our previous topic on Cashbook. So sit back, relax and
gain knowledge today.
Two Column
Cashbook is a combination of the Cash Account and Bank Account for the
sake of convenience. There are separate columns for Date, Particulars, Folio,
Cash and Bank on both the Debit and Credit sides.
Cash
Column: contains cash receipts and payments.
Bank
Column: contains all payments made by cheque and money received and
paid into the Bank.
Contra Entries:
are entries made in the cashbook when cash is deposited into the bank
account out of cash in hand or when cash is withdrawn from the bank for office
use.
Cash paid
into the Bank: when there is surplus of cash in hand, the firm can pay it
into the bank. Cash balance will decrease and Bank balance will increase.
Cash Column will be credited, Bank Column will be debited.
There must be a letter “C” put in the folio column of both sides to signify
that it’s a contra entry.
For
Example: Cash received of N500
was paid into the Bank.
Dr Cash Book. Cr
Date Particulars
F Cash Bank Date
Particulars F Cash Bank
Jan 1 Cash c 500 Jan 1
Bank c 500
Withdrawal
from Bank: when there is shortage of cash in hand, money can be
withdrawn from Bank. Bank balance decreases while Cash balance increases.
Bank Column will be credited while Cash Column will be debited
and also a “C” will be put in the
FINANCIAL ACCOUNT 101.
PRINCIPAL OF DOUBLE ENTRY- SINGLE COLUMN.
Hey Guys, Happy Monday!!! Hope you enjoyed your weekend, cos
I did. Any way its Monday again and we are here to learn something new. So
let’s get started.
LEDGER is the
final destination of all transactions in the subsidiary books (that is the
sales day book, purchases day book etc). It is the most important book of
account because it is the book that contains permanent records of all
Transactions in a summarized and classified form. Transactions are recorded
here, using the Double Entry System of Bookeeping.
RULES OF
DOUBLE ENTRIES:
1. For Every
Credit Entry in an Account, there must be a Corresponding Debit Entry in
another Account.
2. For Every
Debit Entry in an Account, there must be a Corresponding Credit Entry in
another Account.
3. All
Transactions must be Credit and the other.
DIVISION OF
LEDGER:
1.
Personal
Ledger: These are ledgers for
Creditors Account and Debtors Accounts. For example, Purchases and Sales Ledger.
2.
General
Ledger: These are ledgers for
Real and Nominal Accounts. For example, Expenses Account, Income Account, Sales
Account, Purchases Account and Assets Account.
3.
Private
Ledger: These are Ledgers for
Capital and Drawings Account of the Owner. The Book is divided into separate
sections called Accounts, which may have one page or more. The Main Advantage
of subdivision is to permit the clerks to attend concurrently to the various
groups of
COMMERCE 101.
CLASSIFICATION OF RETAIL TRADE.
Hey Guys, we are here again to learn study, understand and
have fun. Let’s get straight to the matter at hand.
RETAIL TRADE
SMALL SCALE TRADE LARGE SCALE TRADE
-HAWKING -CHAIN STORE
-MOBILE SHOP -DEPARTMENTAL
-TRADING -SUPERMARKET
-MARKET TRADE -DISCOUNT HOUSE
-STREET/ ROAD -VARIETY STORES
-STORES (URBAN & RURAL) –HYPER MARKET
-RETAIL COOPERATIVE.
METHOD OF CLASSIFICATION OF RETAIL
STORE.
1. Type of
Good offered for Sale.
2. By Location
for example Rural or Urban Areas.
3. By
Ownership for example Independent or Cooperative.
4. Number of
Employee’s.
5. By the Size
of Employee’s.
SMALL SCALE
TRADE.
As the name implies, it involves types of trading that are
small in nature. For examples
a.) HAWKING- is a kind
of Trade whereby the person moves from one place to another carrying the
COMMERCE 101.
HOME TRADE.
Hey Guys, New Day New Things and we are here to learn and
understand. Let’s get started on our topic.
HOME TRADE is the act
of buying and selling goods within a country. It is also known as DOMESTIC or INTERNAL TRADE. In this Home Trade the same currency is used for
exchange. Home Trade comprises of:
1. Retailing.
2. Wholesaling.
RETAIL TRADE.
Retail Trade is the act of selling
goods and services to the final consumer in small quantities. Retailing is the
final link in the chain of distribution of goods and services.
The Retailer is a person whose
business is to purchase goods from the wholesaler or producer in small quantity,
and sell in smaller units directly to the consumer. In order words, A Retailer
is any trader who directs his efforts towards selling to the final consumers
for the purpose of making profit and finishing the chain of production.
CHARACTERISTICS OF RETAIL TRADE.
1. Retailer
sells in smaller units or quantities.
2. They stock
a wide variety of goods.
3. They sell
directly to the consumers.
4. Retail
Trade involves bringing the goods nearer to the consumers.
5. They are
the final link in the chain of Distribution.
6. The
Business location is open to the general consumers.
FUNCTIONS OF THE RETAILER.
COMMERCE 101.
EXCHANGE.
Hey Guys, It’s a new day to live, learn and make decisions.
You have made the decision to learn today and you will not regret it because we
are discussing the topic above, so sit back relax and let’s learn today.
EXCHANGE is the
process of giving out value in order to have something of value in return. In
the olden days Batter was the main system of exchange i.e. good for good, but
nowadays one exchange money for goods. Exchange arises because of excess
production of goods and services.
INTER-RELATIONSHIP
AMONG PRODUCTION, SPECIALIZATION & EXCHANGE.
Exchange is as a result of Specialization
and Production. They are related in the sense that Production is enhanced by
the broken down processes that are performed by different people. Division of
Labor and Specialization creates room for Mass Production.
Since individuals are not capable of producing all his
requirements, the need for exchange arises.
HISTORY
OF DIVISION OF LABOR.
One of the Forefathers of Economics, Adam Smith who further
explained the Theory of Division of Labor in 1776, in his book “The Wealth of
Nations.” Adam Smith visited a place where Pins were made and found out that
Pin-Making involved eighteen different processes at that time.
He also found out that one man was coordinating all the
processes of Pin-Making alone; as a result of this rigorous and slow process he
was producing 20pins per day. Adam Smith came to a conclusion that if these
Eighteen Pin-Making Processes were handled by different people, more pins will be
produced.
The idea of Division of Labor thought out
by Smith was applied as a result, 48,000 Pins were COMMERCE 101.
DIVISION OF LABOR.
Hey Guys, A New Day it is to learn, understand and to live. Gratitude
should Therefore go to God for the Grace to see this day. Today we are concentrating
on the above mentioned topic.
Division of Labor is the breaking down of Production process into smaller duties, in
order for it to be performed by more than one person and in a faster way. In
Order words, when work is shared among more than one person, it is Division of Labor.
Specialization is the concentration of a worker in the
performance of a particular job. A typical example, is when a person goes to
the university to become a specialist in Law and then goes forward to defend
people in court, that is Specialization.
ADVANTAGES
OF DIVISION OF LABOR.
1. Increase in Output- It
provides more hands to do a job and thereby more result will be gotten.
2. Time saving- It saves
time by reducing time used in one process of production. For example, the
harvesting of tomatoes for the making of Tomato Paste, if more than one person
does it , it will be completed in no time and then it would be easier to move
to the next stage of production of tomato paste.
3. Creation of Employment- when more
hands are needed, more employment will be created and more Families will move
up the Financial Ladder otherwise called Standard of Living.
4. Increases Skills- when a
person does a thing continuously everyday, he/she becomes an expert at it. So
it is no longer a hassle to do your duty.
5. Encourages Specialization- Division
of Labor encourages specialization because when you keep
FINANCIAL ACCOUNT 101.
MORE ILLUSTRATIONS ON THE SUBSIDIARY BOOKS.
EXAMPLE 1:
Write up the purchases journal of Jason & sons, and post
to the ledgers for the month of Sept 2013.
Sept 10-Bought from Coca cola, 12 crates of coke @ N250 each
and 5 crates of Fanta @ N150 each. Trade Discount of 20%.
Sept 12-Bought from PZ Ltd, 140 bags of flour @ N20 each and
400 bags of sugar @ N5 each. Trade Discount of 10%.
Sept 14-Bought from Samsung, 2 sets of IPads @ N500 each and
3 sets of LCD TV’S @ N650 each. Trade Discount of 15%.
Sept 16-Bought from Drumsticks Restaurant, 5 packs of Roasted
Chicken @ N470 each and 3 Bottles
FINANCIAL ACCOUNT 101
SUBSIDIARY BOOKS CONTD.
Hey
Guys Welcome, hope you tried out what we learnt on your own? The key to being
the best is practice, so practice as much as you can. Today we are going to
continue from where we stopped Yesterday.
RETURNS INWARD JOURNAL.
It
is otherwise called SALES RETURN JOURNAL, and is used to record goods
previously sold but later returned to the supplier or seller by the customer,
for wrong color, wrong type, inferior quality or breakage. In the Ledger the
Returns inwards account is debited, while the customer’s account is credited. I
t looks like this.
Date
|
Particulars
|
F
|
Details
|
Total
|
RETURNS OUTWARD JOURNAL.
It
is otherwise called PURCHASES RETURN JOURNAL, and is used to record goods
returned to the supplier by a seller as a result of one reason or the other,
like damages to the goods etc. In the
COMMERCE 101
PRODUCTION.
Hey Guys, Today is a
new day. We are going to learn something new. We are focusing on the above
mentioned topic today, so sit back, relax and learn something today.
PRODUCTION.
Production is any activity engaged in to create goods and
services, and to distribute these goods and services till it reaches the final
consumer. In order words, It is making of goods and services available to the
consumers who are willing to pay for them in order to satisfy human wants. It
is also the creation of utility.
STAGES OF
PRODUCTION.
There are three stages of production and they include:
1. PRIMARY STAGE OF PRODUCTION- It is a
process of obtaining raw materials/resources from the Land, Sea or River. It is
also called EXTRACTIVE STAGE. This
mostly involves agricultural produce or Petroleum produce, for example Farming,
Fishing, Mining etc.
2. SECONDARY STAGE OF PRODUCTION- It is the
process of turning these raw materials into finished goods by way of
Manufacturing. For example, the process Tomato Fruit undergoes in the factory
to become Paste that is put in tin as Tin Tomato etc.
3. TERTIARY STAGE OF PRODUCTION- It is the
distribution of finished goods and services to the consumers. The people
involved in this are:
FINANCIAL ACCOUNT 101
THE ACCOUNTING EQUATION & INTRODUCTION TO THE BOOKS OF ACCOUNT.
Hey Guys, Happy Eid-El-Kabir Celebration. Today is a new day
and we are going to have fun on the above mentioned Topics.
THE
ACCOUNTING EQUATION.
The Accounting Equation is the Fundamental Equation of the
entire financial account. In order words, it the beginning of all equations in
account as a whole, the Foundation.
1. Assets are properties of a business. They
are things owned by a business and are expected to be of Future Benefit. For
example, Motor Van, Furniture & Fitting, Stock etc.
2. Capital is the Total amount invested by
the owner of a business. It is the Net Worth of a business.
3. Liabilities are amounts of money owed by a
business to outsiders. For example, Bank Overdraft, Creditors etc.
Therefore, the account equation is:
Assets=
Capital + Liabilities
FINANCIAL ACCOUNT 101.
INTRODUCTION TO ACCOUNTING.
Hey Guys, we
are starting a new Subject Today. For the Commercial Class People, other
subjects will be introduced as time goes on, so sit back and enjoy.
WHAT IS FINANCIAL ACCOUNTING?
Account can be as the Recording,
Classifying, Creating, Summarizing and Communicating of Financial Information
to interested Parties, to help in making specific Business Decisions. In Order
words, it includes all processes involved in preparing a Financial Document.
Book Keeping
is the act of Recording and Classifying Financial Transactions on a Daily Basis
into Appropriate Books. It is a Part of Accounting; it is done using the Double
Entry System.
IMPORTANCE OF BOOK KEEPING &
ACCOUNTING.
1. Accounting Information can be used
for Decision-Making.
2. It Provides Permanent Records for all
Transactions.
3. It Helps to Ascertain the True
Position of the Business.
4. It Helps to Prevent Fraudulent
Practices.
5. It is used for Tax Assessment.
6. It Helps to Ascertain the Assets and
Liabilities of the Business.
7. It Shows the Income and Expenditure
of the Company.
COMMERCE 101.
OCCUPATION & CLASSIFICATIONS.
Hey Guys,
Hope you all had a Wonderful weekend? Cos I did, it’s still good to be back
today. So let’s get started on our topics for today.
OCCUPATION:
Occupation is
any Economic Activity which people engage in, to create Goods & Services in
order to make a Living. In Order words, what a person engages in, to make money
as a Salary or Wage. For example, Teaching by Teachers, Banking by Bankers,
Selling by Traders and Business People etc.
CLASSIFICATIONS OF OCCUPATION.
Occupation
can be classified into three main groups namely:
1. Industry
2. Commerce
3. Services.
INDUSTRY.
This is all
the Segments involved in Producing a Good or Service housed under one Umbrella.
In Order words, it can be defined as all that concerns the Physical Production
of Goods & Services, which include-Extracting Raw Materials and the
COMMERCE 101.
FOREIGN TRADE & AIDS TO TRADE.
Hey Everyone, Its Been a while-Right?. I know and am sorry it
took this long to post again. It’s just that when you start something NEW, you
face a lot of oppositions, but not to worry am here now and we will pick up
from where we stopped.
So we stopped at Home Trade, Today we continue from FOREIGN
TRADE.
FOREIGN TRADE:
Foreign Trade is simply when a business Transaction happens
between people living in two or more Countries. For Example, Nigeria as a
Country sells Oil to countries like the USA (United States of America), in
exchange for money. When we buy things like Clothes, Shoes etc on the internet
from London or Paris in exchange for money using our Master Cards, we are
engaging in FOREIGN, INTERNATIONAL or
EXTERNAL TRADE. Moving on there are
types of Foreign Trade, and they include:
1. Bilateral Trade- which is
a type of Trade between only two Countries, like our example above about
Nigeria & USA. It is between only (2) Countries.
2. Multilateral Trade- is a
trade between more than two Countries, like a Trade between Nigeria, Ghana
& South Africa.
DIVISIONS OF
FOREIGN TRADE:
1. Import: is the
act of buying goods from a country. For Example Buying Cars from the US is IMPORT.
2. Export: is the
act of selling goods to another country. For Example Selling Oil to the US as
mentioned earlier.
COMMERCE 101.
INTRODUCTION TO COMMERCE, TRADE & HOME TRADE.
Hey Guys, Today we will be talking about Commerce.Commerce is all about Production, Distribution & Exchange of Goods & Services. In Order words, it concerns all activities that make Trade & Aids to Trade possible.
SCOPES OF COMMERCE.
Scopes are areas associated with commerce as a whole,they include:1. Trade
