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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FINANCIAL ACC 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

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COMMERCE 101

CLASSIFICATION OF RETAIL TRADE

Happy Monday Everyone, we are here again, wow March has been nice. Hasn't it ? Hope you have enjoyed March so far, anyway we are continuing on the topic we started Last week, pls Enjoy!!!

                                             

                                             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 example:

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FINANCIAL ACC 101

                 TWO COLUMN CASHBOOK

Hey Guys, Happy Thursday. Sorry that this post is late, something came up but Praise be God that it is here now, so let's get started.

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.

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COMMERCE 101

INTER-RELATIONSHIP AMONG PRODUCTION, SPECIALIZATION & EXCHANGE

      Happy New Week Everyone, This is a Beautiful Week and Thank God we are Alive. Let's Get Started!!!.

       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 20 pins 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

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ECONS 101

FACTORS OF PRODUCTION

Hey Guyz, Happy Friday to you. Congratulations for being selected to be in the Land of the Living today. Hope this day brings you Joy unspeakable in all areas of your life. Let’s get started.

Factors of Production refer to Agents, Components or resources which are combined together to produce goods and services. There are four factors of production namely:

a.     Land                                                                                     

b.     Labour

c.      Capital

d.     Entrepreneur

LAND

Land is defined in economics as a free gift of nature, it does not only include the land surface but all other free gifts of nature and natural resources like forest, mineral resources, rivers etc. The supply of land is unlimited unlike other factors of production. The reward for land is RENT.

Characteristics of Land {Its Features}:

1.     Land is immobile, it can’t move from one place to another.

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FINANCIAL ACC 101

PRINCIPAL OF DOUBLE ENTRY- SINGLE COLUMN

Hey Guys, Happy Friday!!! Hope you enjoyed the week so far? 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 Book keeping.

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,

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COMMERCE 101

QUESTIONS ON PREVIOUSLY TREATED TOPICS

Hey Guyz, Happy Mid-week. This post is coming late cos of some issues but it is here now and that is what matters. Hope last week was a blast for you cos it was amazing for me. To God Alone be All the Glory, Jesus is Lord. We are treating questions on all the Topics we have treated just to warm us up and warm up our memory, and to really determine our understanding level of those Topics, lolz. So let's get Started.

1. Which of the following is not true of Commerce?

a. It is part of production

b. It is the life blood of a nation's economic activities

c. Commercial Activities begin after the goods are produced

d. It has nothing to do with goods and services (WAEC 1994).

2. Which of the following is not a Factor of Production?

a. Profit

b. Entrepreneur

c. Capital

d. Land (WAEC 1994).

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ECONS 101

PRODUCTION

Hey Guyz, Happy Friday to you. How was your day yesterday, hope it was fruitful and cool. Today we are back to Econs 101 with the above topic, so let’s get straight to work. JESUS IS LORD!!!

TYPES OF GOODS

Goods can be classified into two major groups, namely:

1.     CONSUMER GOODS:  are goods and services that don’t need further production; they can satisfy the wants of the consumer in their form. Like Milk, Services like The Police etc.

Consumer Goods can further be grouped into the following:

a.     Durable Goods- They are goods that can be used over and over again. Like Radio, Television, Cooking Pots etc.

b.     Non- Durable Goods- They are goods that can only be used once. For example, Bread, Drugs, Egg, Meat etc.

2.     PRODUCER/ CAPITAL GOODS: These are goods used by people for further production of

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FINANCIAL ACC 101

ILLUSTRATIONS ON THE SUBSIDIARY BOOKS

Hey Guys, Happy Mid-Week. This is a Continuation of what we did last so enjoy!.

EXAMPLE 1:                 

Write up the purchases journal of Jordan & sons, and post to the ledgers for the month of July 2012.

Sept 9-Bought from Coca cola, 15 crates of coke @ N250 each and 10 crates of Fanta @ N170 each. Trade Discount of 10%.

Sept 12-Bought from PZ Ltd, 140 bags of flour @ N20 each and 400 bags of sugar @ N10 each. Trade Discount of 15%.

Sept 13-Bought from Samsung, 3 sets of IPads @ N550 each and 4 sets of LCD TV’S @ N750 each. Trade Discount of 12%.

Sept 14-Bought from Drumsticks Restaurant, 7 packs of Roasted Chicken @ N500 each and 4

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COMMERCE 101

           DIVISION OF LABOUR

Hey Guyz, Happy Monday. It's a new Month, MARCH is here. 2015 is really fast, don't you think? Well am just glad we all made it, so many pple have already lost their lives and we aren't better than them at all, God is just Faithful always. So today we are on a New Topic, New Month New Topic. So Let's get started!

Division of Labour is the co-operative specialization of labour. It dates back to as early as the start of civilization and was practiced by the Sumerians to group different jobs according to various skills of the members of the society. Division of Labour is historically associated with increased growth in total output and is viewed as the rise of Capitalism. It also helps to solve some of the complex industrialization processes. Division of Labour as explained by Adam Smith can be restricted based on the market extent. Adam has suggested that the bigger the market the higher the specialization. It can then be said that the Global market that we are currently enjoying has resulted to so much specialization. The conditions for Specialization to thrive on the global market are a free trade, free mobility and migration of labour. In Simplified Form, Division of Labour is the breaking down of production processes into smaller and separate units which allow for multiple small performances by different individuals and also machines. For Example, When Machine A mixes the batter and

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