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are entries made in the cashbook when cash is deposited into the bank account out of cash in hand or when cash is withdrawn from the bank for office use.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Withdrawal from Bank: when there is shortage of cash in hand, money can be withdrawn from Bank.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

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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

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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

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