COMMERCE 101

MONEY

Hey Readers, How you doing y'all? lolz- how are you, your family, school, friends, even those people you don't like too much... I pray God brings Matchless Peace and Love your way and to everyone you are related to in Jesus Mighty Name- Amen. Today we are talking about the most wanted thing in the world-Money!!!. Lolz- Let's Begin....

Money can be defined as any medium of exchange which is generally accepted by the people, in payment for goods and services or settlement of debt and at the same time as a measure or stock of value.

Trade By Barter is a form of Trading in which goods are exchanged, directly for other goods without the use of money as an intermediary.

Problems of Trade By Barter:

a. Problems of Double Coincidence of Wants- This involves looking for someone who needs what you have, and at the same time has what you need.

b. No Fixed Rate of Exchange- Since no fixed amount is placed on a particular good, they is always a problem.

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ECONS 101

SHARES

Hello Readers, How are you all today? It's Beautiful to be here with y'all doing this now and being a source of help to you all. I thank God everyday for meeting you all and being able to write to you and generally interact with you all. Let's Get Started.....

Shares can be defined as the individual portion of the company's capital owned by shareholders. It is the interest which a Shareholder has in a company. In other words, share is a unit of capital measured by a sum of money. The Company Act defines a Share as "The Interest in a Company's Share Capital of a Member who is entitled to share in the income of such company."

TYPES OF SHARES:

There are two major types of shares. These are Preference and Ordinary Shares.

1. PREFERENCE SHARES- is the type of share which has priority i terms of dividend payment and repayment of capital in the event of winding up. They have a fixed rate of dividends

Features of Preference Shares:

* They have no Voting Rights.

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FINANCIAL ACC 101

BANK RECONCILIATION STATEMENT CONTD

Hey Everyone, Happy New Wednesday. Hope your week is going well, i hope you all are having fun???. This week shall be a week of Good news for all of you in Jesus Name- Amen. Am working on something New and Exciting and when am done y'all will know. LOLZ. I pray that God's will for your Lives come true and that you are not disappointed when you learn of it. I know that sometimes things might not turn out the way you have planned, but at the end you will be able to testify by yourself that God has been good to you. Well am not a Preacher oooo. LMAO but i just felt the need to say a few words of encouragement to any of you that might be going through something rough right now. I know cos i have been there and it's not easy but be STRONG!!!.

ILLUSTRATION OF METHOD B:

On 30th November 1993, Olukunmi and Sons Cash book showed a debit balance of N3, 500 whereas the Bank Statement showed a Balance of N2, 325. On Investigation the following items were discovered to have caused the discrepancy.

a. The Bank had made Charges of N310 which had not been entered in the Cash book.

b. A Cheque received for N2, 000 entered in the cash book had not been entered by the Bank until December 3rd 1993.

c. A Standing Order for subscription of N150 had been entered in the Bank Statement as paid

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COMMERCE 101

PARTNERSHIP

Hello Peepz, Hows Life? HOW ARE YOU???. Be more positive and more thankful because they are alot of people all over the world that would die to have what you have or kill to be you- so you are a STAR to someone somewhere JUST D WAY U ARE. Yes YOU!!!!. It Is Well with You in Jesus Name-Amen. Okay, Let's get straight to work!!!!.

Partnership is a relationship that exists when two or more persons contribute skills or money in order to establish, own and manage business activities, with the aim of making profit. Partnership is formed by two to twenty persons but in banking the maximum number of partners is 10.

Characteristics of Partnership:

# The Partners are Liable for the Total of the Business without Limits. The Partners will lose their investment as well as private properties in event of liquidity.

# In Partnership Business, no special formalities are necessary but written agreement may be needed.

# Partnership is owned by two to twenty persons or two to ten persons in banking sector.

# Every Partner is an agent of the business and every act of a Partner done in carrying out of

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ECONS 101

PUBLIC LIMITED LIABILITY COMPANY/ JOINT STOCK COMPANY

Hello Readers, How are you all today? It's Beautiful to be here with y'all doing this now and being a source of help to you all. I thank God everyday for meeting you all and being able to write to you and generally interact with you all. Let's Get Started.....

A Public Limited Liability Company is defined as one which by its articles allows the public to subscribe for its shares, must have a minimum of 7 persons but no maximum number. It allows the shares to be transferred and the name of the public limited company must end with the abbreviation "plc".

Public meaning that any member of the public is free to purchase shares in the business when shares are advertised for sale. Public limited company is usually owned by private individuals and organizations.

Public Limited Liability Companies or Joint Stock Companies are organisations which have separate legal entity. It is regarded in law as having an identity of its own. The Shareholders are not personally responsible for anything that is done in the name of the organisation. The shareholders also enjoy the advantage of a large number of people who through the purchase of shares become owners of the company. For Example- First Bank Plc, Texaco Nig. Plc etc.

FEATURES/CHARACTERISTICS OF PUBLIC LIMITED LIABILITY COMPANY:

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FINANCIAL ACC 101

BANK RECONCILIATION STATEMENT

Hello Readers, Happy Wednesday to you all. How has your week been so far? It is well with all of you in Jesus name-Amen. Today you will hear Good news in Jesus name-Amen. Okay, so let's get started on our topic for today....

Bank Statement is a book prepared periodically and sent by a Bank to its Account holders, showing the transactions between the customer and the bank within a period of time. It shows a summary of the interactions between the Bank, its customer (the account holder) and others- it can be sent monthly or yearly or on any other agreed period to the customer.

Purpose of Bank Statement:

1. To inform the Customer of the transaction that takes place.

2. It helps the customer to know the position of his finance with the Bank.

3. It helps to provide customers with a continuous and permanent record of his account.

Bank Reconciliation Statement can be defined as a statement that is prepared to reconcile the disagreement of the cashbook and that of the bank statement. This is needed when a customer is dissatisfied with the bank statement sent by his/her bank and therefore wants to

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COMMERCE 101

SOLE PROPRIETORSHIP

Hey Everyone, Happy New Week. This week shall bring Good News for everyone of us in Jesus name- Amen. so let's get started.... 

A Sole Proprietorship may be defined as a business organisation established, owned, financed and controlled by one person with the arms of making profit. This form of business unit is one of the oldest type of business organisation owned by individuals. In other words, it is a type of business unit in which one person provide the capital, bear the risk and takes full responsibilities of the business. For Example- Tailor, Carpenter etc.

Features/Aim of Sole Proprietorship:

* Owned, Managed and Controlled by One Person.

* Owner bears all the risk alone.

* Capital used in forming and running the business, comes from the Sole Owner.

* The motive of the formation of a business, is to make profit.

Source of Capital for Sole Proprietorship:

# A Sole Proprietor can obtain capitals from his personal savings, which can serve as Initial

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ECONS 101

PRIVATE LIMITED LIABILITY COMPANIES

Hello Readers, How are you all today? It's Beautiful to be here with y'all doing this now and being a source of help to you all. I thank God everyday for meeting you all and being able to write to you and generally interact with you all. Let's Get Started.....

A Private Limited Liability Company is defined as one which by its articles restricts the rights to transfer its shares, limits the number of its shareholders from two to fifty, prohibits any invitation to the public to subscribe for its shares, and the name of the private liability company must end with the abbreviation of "Limited", e.g. Burberry Nigeria Limited, News watch Nigeria Limited etc.

FEATURES/CHARACTERISTICS OF PRIVATE LIMITED LIABILITY COMPANIES:

a.  Ownership- The business is owned by shareholders who may be between two and fifty persons in number.

b. Objective- The major aim of Private limited company is to make profit.

c. Source of Capital- The Capital required to set up and run the business is provided by the shareholders in form of shares. However, shares are not sold to the general public. They are sold privately.

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FINANCIAL ACC 101

TRIAL BALANCE QUESTION

Hey Everyone, Hope the week is going well? It Is Well with You in Jesus Name- Amen. Today we are continuing from where we stopped last week and we are taking one more question on this topic to be more grounded in it. Let's get started....

ILLUSTRATION 2:

Enter the Transactions in the books of the following details for the month of January and extract the Trial Balance as at 31st June 1996.

Jan 1- Started Business with N7, 000 in cash.

Jan 2- Paid N3, 500 of the opening cash into bank account.

Jan 3- Bought goods on credit from Ajala N135, Kayode N115, Mark N55.

Jan 4- Bought office equipment on credit from Ojo N108.

Jan 6- Sold goods for cash N501.

Jan 7- Sold goods on credit to Micheal N24, Obi N53.

Jan 8- Bought motor van paying by cheque N240.

Jan 10- We returned goods to Ajala N25, Kayode N22.

Jan 12- We paid by cheque Ajala N110.

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COMMERCE 101

DOCUMENTS INVOLVED IN TRANSPORTATION

Hey Everyone, Happy New Week. This week shall bring Good News for everyone of us in Jesus name- Amen. so let's get started....

1. Consignment Note: is a document that prove that goods have been delivered. It is sent by the consignor through the carrier to the consignee to sign in evidence that the goods are in order.

2. Certificate of Insurance: is a document which shows that the goods have been insured against risks or loss by the exporter.

3. Airways Bill: is a document used to transport goods by air. It will show the name of the consigner and the consignee, value of the goods and the airport where it is loaded.

4. Manifest: is a document that shows the full list of the goods and cargo that is carried by a ship or aircraft. This document is to be completed by the captain of the ship and approved with the custom authorities showing the particulars of the ship, the cargo carried and the final destination.

5. Shipping Note: is a document containing instructions for transporting the goods.

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ECONS 101

LIMITED LIABILITY COMPANY CONTD

Hello Readers, How are you all today? It's Beautiful to be here with y'all doing this now and being a source of help to you all. I thank God everyday for meeting you all and being able to write to you and generally interact with you all. Let's Get Started.....

 

Formation of a Limited Liability Company:

The Steps involved in the formation of a Limited Liability Company (Whether Private or Public) are as follows:

Step 1- The Promoter devises a scheme of Capitalization, bearing in mind the cost of Formation, assets to be brought and working capital.

Step 2- The Promoter is required to secure the services of a solicitor to prepare certain documents to be filed with the Registrar of Companies. The Documents are:

* Memorandum of Association

* Article of Association

* Statement of Nominal Capital.

Step 3- The documents are stamped and lodged with the Registrar of Companies.

MEMORANDUM OF ASSOCIATION is a document forming the constitution of a Company and

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FINANCIAL ACC 101

TRIAL BALANCE

Hello Readers, How are you all today? It's Beautiful to be here with y'all doing this now and being a source of help to you all. I thank God everyday for meeting you all and being able to write to you and generally interact with you all. Let's Get Started.....

Trial Balance is a statement showing a list of balance in a double entry form, extracted from the Ledger to show the arithmetic accuracy of the account. The Trial Balance is drawn up at a given date after all the posting have been made in the ledger. The Techniques ensure that debit and credit balances as displayed in the ledger are complied, that is they must be in agreement and be equal. When they is a difference between the two sides, then some errors have been made.

Uses of Trial Balance:

1. All assets must be put in debit side.

2. All liabilities must be put on the credit side.

3. All income must be recorded on the credit side.

4. All expenses must be recorded on the debit side.

5. All items with debit balance in ledger will be debited.

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COMMERCE 101

MEANS/METHODS OF TRANSPORTATION

Hey Everyone, Hope the week is going well? It Is Well with You in Jesus Name- Amen. Today we are continuing from where we stopped last week. Let's get started....

There are four major forms of Transport namely:

1. LAND TRANSPORT

 This means of Transportation is very good for trading within a country. It is a means of conveying goods and passengers from one place to another through land. Land Transport can be divided into: Road and Rail Transport.

a. Road Transport is the most extensively used, of all the means of transportation. It is the movement of goods and passengers on the road, by motor vehicles, buses, cars, motorcycles, bicycles etc.

Advantages of Road Transport:

* It is flexible since there is no fixed time scheduled.

* It is good for carrying perishable goods.

* It is faster on the short distance journey.

* It has no special routes.

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