COMMERCE 101

SOLE PROPRIETORSHIP

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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

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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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