FINANCIAL ACC 101

MORE QUESTIONS ON PREVIOUSLY TREATED TOPICS

Hey Everyone, Happy New Week even though the week has been far spent. Hope this week has and month has been beautiful for you. Remember you deserve the best of God and it is yours if only you believe and profess it. Well below is a Question. Enjoy!!!

QUESTION 1:

Dan Jumbo started business on 1/1/94 with the following:

Building                                                  100, 000

Stock of Goods                                       40, 000

Motor Van                                              50, 000

Cash                                                        10, 000

During the Month, he undertook the following transactions:

5th Jan     Sold goods for Cash                                                                                         5, 000

10th Jan   Sold goods on Credit                                                                                      20, 000

12th Jan  Bought goods on Credit                                                                                 10, 000

15th Jan   Cash Sales Banked                                                                                         15, 000

18th Jan    Paid cash for Office Stationery                                                                    2, 000

20th Jan    Received Cash from Debtors for goods                                                      5, 000

22nd Jan    Paid cash for Office Expenses                                                                      1, 000

23rd Jan    Paid Salaries by cheque                                                                                 4, 000

24th Jan    Sold goods for Cash                                                                                       7, 000

25th Jan    Sold goods on Credit                                                                                      5, 000

26th Jan     Bought goods on Credit                                                                                3, 000

27th Jan     Bought goods for Cash                                                                                  2, 500

28th Jan     Withdrew Money from Bank for Owner's Use                                         1, 500

29th Jan    Office Cash Banked                                                                                      5, 000

31st Jan    Paid Electricity by Cheque                                                                           1, 500

You are required to Record the above transactions in the appropriate books of original entry.

ANSWER:

DR

DATE	PARTICULARS	F	CASH	BANK
1ST JAN	Capital		10, 000
5TH JAN	Sales		5, 000
15TH JAN	Sales			15, 000
20TH JAN	Sales		5, 000
24TH JAN	Sales		7, 000
29TH JAN	Cash	C		5, 000
			27, 000	20, 000
	Balance b/d		16, 500	13, 000

CR

DATE	PARTICULARS	F	CASH	BANK
18TH JAN	Office Stationery		2, 000
22ND JAN	Office Expenses		1, 000
23RD JAN	Salaries			4, 000
27TH JAN	Purchases		2, 500
28TH JAN	Drawings			1, 500
29TH JAN	Bank	C	5, 000
31ST JAN	Electricity			1, 500
	Balance c/d		16, 500	13, 000
			27, 000	20, 000

JOURNAL PROPER

JOURNAL PROPER
DATE	PARTICULARS	DR	CR
1ST JAN	Building	100, 000
	Stock	40, 000
	Motor Van	50, 000
	Cash	10, 000
	To Capital A/C		200, 000

SALES DAY BOOK
DATE	PARTICULARS	F	AMOUNT
10TH JAN	Debtors		20, 000
26TH JAN	Debtors		5, 000
31ST JAN	Sales A/C	Cr	25, 000

PURCHASES DAY BOOK
DATE	PARTICULARS	F	AMOUNT
12TH JAN	Creditors		10, 000
26TH JAN	Creditors		3, 000
31ST JAN	Purchases A/C	Dr	13, 000

NOTE: THE QUESTION IN THIS POST IS CREDITED TO WEST AFRICA EXAM COUNCIL 1996 PAPER. THE ANSWER IS ALSO CREDITED TO WAEC. THANKS

This brings us to the end of today's session. Hope this was very helpful to you, leave a comment of what you think of this tutorial and of your questions below. Have a Blessed Day and Remember You are Amazing. God Bless.

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COMMERCE 101

LARGE SCALE RETAILING

Hey Guys, Happy New Week. The Last in the month of March. This month is soon over, well 2015 has been a FAST year wouldn't you say? Well All to the Glory of God. How was your weekend, mine was splendid. Alright, straight to Business...

Large Scale Retailing is a trading with a large scope of operation. Everything is on a bigger scale unlike Small Scale Retailing. Buying is on a Large Scale, Selling is also on a Large Scale. They include:

1. CHAIN/MULTIPLE STORES

It is a form of Large Scale Retail Trading whereby the Store has similar and identical designs, layout and product display in all its outlets/branches. For example in Nigeria, we have UTC Store, Leventis store etc.

FEATURES OF CHAIN STORE:

a. They Sell Similar Range of Products.

b. They are found in Towns and Urban Areas.

c. They have Identical Store Designs.

d. They have similar stock display.

ADVANTAGES OF CHAIN STORE:

a. They ensure Consistence of their Product.

b. They buy in bulk, which ensures Lower Price.

c. Their Customers can easily locate their store anywhere.

DISADVANTAGES OF CHAIN STORE:

a. They don't facilitate Credit Transaction.

b. Decision-Making are always delayed.

c. No Personal Relationship between the shop attendant and customer.

2. DEPARTMENTAL STORES

It is a Large Retailing Store that operates under one roof which deal with a wide variety of goods but organised in different sections (departments) for the purpose of service, promotion and control.

Each Department Specialise in one line of product. For example- Kingsway Stores etc.

FEATURES OF DEPARTMENTAL STORES:

a. Each Department has its own Manager.

b. Each Department deals in one line of Product.

ADVANTAGES OF DEPARTMENTAL STORES:

a. It allows freedom of Movement around the Store.

b. It ensures bulky purchases of Goods which helps in Price Reduction.

DISADVANTAGES OF DEPARTMENTAL STORES:

a. It requires Large Capital to set up.

3. SUPERMARKET

It is a Large Retailing Business Unit that deals mostly on Food, Household Items and other wide variety of goods. It operates a Self-Service System with Basket and Trolleys left for Customers to help themselves to their needs.

ADVANTAGES OF SUPERMARKET:

a. It Provides Wide Variety of Goods.

b. Customers have the right to make choices without being influenced by shop attendants.

c. It ensures Self-Services.

DISADVANTAGES OF SUPERMARKET:

a. No Personal Attention is given to Customers.

4. MAIL ORDER

It is a large Retailing Business in which buying and selling is carried out by post. The customers are contacted by mail, their orders are received by mail, and the delivery is by mail. It involves the use of catalogue that presents the goods and price. Payment is through Cash Delivering Basis.

New Trends have been introduced in retailing business because of the dynamic nature of commercial activities. In order to enhance and facilitate business activities;  New ideas and Techniques have been introduced.

This brings us to the end of Today's Session. Hope this was very helpful to you, leave a comment of what you think of this Tutorial and of your Questions below. Have a Blessed Day and Remember You are Amazing. God Bless You.

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ECONS 101

LAWS OF DIMINISHING RETURNS

Holla Everyone, wats popping today. Hope today is HEAVEN for you and all your loved ones. JESUS IS LORD 4EVER. Let's get started!!!

The Law of Diminishing Returns states that as successive units of a variable factor is applied to a given fixed factor, output will increase at first but it will get to a point at which the addition of one more unit of the variable factor will result in less additional units of output. In order words, The variable Factor here can be Labour or capital and the fixed factor can be land.

The Law of Diminishing Returns, sometimes called the law of variable proportions, is applicable to both the agricultural and industrial sectors that use both the fixed and variable factors of production.

This Law can be illustrated in the table below

Fixed Factor (Land)	Variable Factor (Labour Unit)	Total Output (kg)	Average Output (kg)	Marginal Output (kg)
1	1	10	10
1	2	30	15	20
1	3	60	20	30
1	4	120	30	60
1	5	100	20	20
1	6	90	15	10

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