FINANCIAL ACC 101

QUESTIONS ON PREVIOUSLY TREATED TOPICS

Hey Everyone, Happy New Week. Today is a beautiful day and God is indeed Good... How are you today, hope your week is going perfectly well. Am so glad to know that God's Faithfulness is evident in your life, to God alone be all the Glory. Amen.

So Let's get start to the Point...

QUESTIONS:

1. Which of the Following is Found in a Sales Ledger Account?

a- Credit Purchases

b- Bill Payable

c- Discount Received

d- Discount Allowed (WAEC 2009, NO 38).

2. A Three Column Cash Book contains columns for?

a- Cash, Assets and Liabilities

b- Bank, Cash and Assets

c- Cash, Bank and Returns

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COMMERCE 101

TYPES OF WHOLESALERS

Hey Everyone, How is your week so far. The Month of April is beautiful isn't it? LOLZ, Yes it is. Well may you experience all the Goodness of God for this month in Jesus name- Amen.

Today we are continuing where we stopped last week with the above mentioned topic, so let's get started.

Wholesalers can be classified into two broad categories namely:

1. MERCHANT WHOLESALERS- They buy and resell goods on their own account, taking title of the products they handle and conveying the title directly to those they deal with.

FUNCTIONS OF MERCHANT WHOLESALERS:

a. They undertake the storage of Goods.

b. They provide Delivery Services.

c. They arrange credit loans.

d. They provide Promotional Services.

TYPES OF MERCHANT WHOLESALERS:

a. SPECIALIST WHOLESALERS- They are wholesalers who restrict their services to a particular trade and area of their specialization.

b. CASH AND CARRY WHOLESALERS- They are wholesalers that don't offer Credit Facilities nor Delivery Services to their Customers. They expect their Retailers to pick their Orders, Pay Cash and Carry their Purchases.

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ECONS 101

RELATIONSHIP BTW PRODUCTION POSSIBILITY CURVE & OPPORTUNITY COST

Hi Everyone, Happy New Week to you all. It's another opportunity to learn and grow and generally become better at what we already know or what we have an idea of. So let's get started...

We are continuing from where we stopped last time.

Interpretation/ Points to Note from the Graph:

  Points A to F on the graph indicate efficient use of resources.

  At Points O  & P (Outside the curve), production is not feasible. Production at these points are not feasible due to the limited resources and technology.

  At points K & L (Inside the curve), production is feasible. It represents where resources are not efficiently utilised.

 The downward slope of the PPC indicates that there is an opportunity cost of producing more of one type of commodity and less of the other due to limited resources and technical know-how.

RELATIONSHIP BTW PRODUCTION POSSIBILITY CURVE & OPPORTUNITY COST

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FINANCIAL ACC 101

QUESTIONS ON PREVIOUSLY TREATED TOPICS

Hey Everyone, Happy New Week. We are on a Series and our aim is to treat National Exam Questions on the Topics we have treated here, in other to further be perfect if possible in those topics. So Let's Go!!!

QUESTION:

Koffi is a dealer in general merchandise. The following are his transactions for the month of June 2002.

June 1: Sold goods to Mensah N20, 000 less 10% Trade Discount.

June 4: Purchased from Kwesi the following:

200 Iron rods at N20 each

100 Fillers at N30 each

Invoice subject to 10% Trade Discount.

June 6: Purchased from Asante Ltd, 10 bottles of gin at N30 each.

June 7: Returned 60 Iron rods purchased on 4th June, to Kwesi.

June 9: Sold the following to Kojo:

300 Bags of Cement at N15 each, less  15% Trade Discount

150 Tins of Target at N10 per tin.

June 18: Kojo returned 10bags of cement bought on the 9th of June.

June 20: Sold to Jones: 80 Iron rods at N50 each, 10Bags of Cement at N16 each, 250 Fillers at N35

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COMMERCE 101

WHOLESALE TRADE

Hey Everyone, Hows this New Monday Morning to you, isn't is beautiful and full of promises and answered prayers. LOLZ, Yes it is. Well Let's get straight to out topic for today.

WHOLESALING is a business activity which involves buying of goods in bulk from the Producer and selling in small quantities to the Retailers as well as other merchants. Wholesaling is included in the Channel of Distribution.

FUNCTIONS OF THE WHOLESALER TO THE PRODUCER:

a. The Wholesaler purchases Goods in Large Quantity From the Producer.

b. He makes Space Available for further Production by Buying and Clearing the goods from the Producer's Warehouse.

c. In a Situation where the Producer doesn't have a Warehouse, He offers to have the Manufactured Goods moved to his own warehouse to enable more Production by the Manufacturer/Producer.

d. He keeps the Producer informed of the Market Situation from information he gathered from the Retailers, Consumers and Middlemen.

e. He pays the Producer promptly for his Goods in order not to slow down further Production.

FUNCTIONS OF THE WHOLESALER TO THE RETAILER:

a. He advises the Retailer on the Goods to buy and the ones not to buy.

b. He offers Credit facilities that is , allowing the Retailer take goods on Credit from him to pay later.

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ECONS 101

FACTORS OF PRODUCTION CONTD

Hello Everyone, Happy Friday. Thank God It's FRIDAY!!!!!.... LOLZ, Yes the last working day of the week and then rest rest rest!!!... There's time for HARD WORK and also time for REST... Pls Make Sure you Balance the Two Very Essential. Straight to the Point of the Day

CAPITAL CONSUMPTION refers to the using up of existing capital stock and not replacing worn-out capital goods used in production. When fixed assets like Buildings, Machinery or Motor Vehicle are used continuously, they undergo wear and tear, hence such assets depreciate in value. It is this wear and tear of these capital goods which reduces their value which is referred to in Economics as CONSUMPTION or DEPRECIATION.

During the period of Capital Consumption, enough savings are not made to maintain and replace depreciating capital goods or assets. If a Country finds it difficult to maintain its stock of capital, either by making provision for depreciation or her inability to replace worn-out capital or asset, such a country is said to be living on capital or consuming capital and this affects the standard of living of the people negatively.

ENTREPRENEUR

An Entrepreneur can be defined as the factor of production that co-ordinates and organises other factors of production( Land, Labour and Capital) in order to produce goods and services. The

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FINANCIAL ACC 101

QUESTIONS ON PREVIOUSLY TREATED TOPICS

Hey Everyone, How is this week so far. We are continuing this series we started last week, reviewing all the topics we have treated by answering questions linked to the Topics we have treated. This will help us further understand these topics and if possible be guru's at them. So Pls Enjoy...

QUESTION 2:                  

The following Transactions were extracted from the book of Mercy Land Trading Company as at 31st January 2005. All payments were made by cheque and all receipts were paid to the bank. The Company maintains a float of N 21, 000.

2nd Jan  Cash at Eagle Bank                         20, 000

2nd Jan  Petty Cash in Hand                          1, 400

3rd Jan  Drew Cheque for Petty Cash          19, 600

5th Jan  Received from Anthony, Cheque in Settlement of his debt N32, 600 less 1% discount

6th Jan  Settled Tunde's Account of N 25, 900 less 10% discount

7th Jan  Sold for cash 20MTN Cards at N750 per card

8th Jan  Transferred to current account from deposit account     70, 000

10th Jan  Paid Olu                                            4, 800

16th Jan   Paid Cheque for Motor repairs   8, 000

17th Jan   Paid Ade                                          3, 800

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