COMMERCE 101

CAPITAL.

Hey Guyz, Happy Friday. Thank God it’s Friday Again, God has been Faithful this week, don’t you think. Well today we are back to Econs. 101.

Capital may be defined as man-made assets used in production. In other words, Capital refers to man-made wealth or goods used to produce other goods and services. It may also be defined as the stock of previous wealth invested in order to produce future wealth. Examples of Capital are Physical Cash, Cutlass, Buildings, Machines, semi-finished goods, and other
equipment.

CHARACTERISTICS OF CAPITAL:

1.     Capital is man-made.

2.     Capital is durable.

3.     Capital exists in different forms.

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FINANCIAL ACC 101

SOLUTION TO QUESTION 1.

Hey Guyz, Happy Thursday to you all. Wow, What a Beautiful Day, don’t you think. I Thank God for the Grace to see this day and to share it with you all, Beautiful in every right.

So hope you guyz were able to try out the questions I gave on yesterday? Any way today, we will provide the solution to the first Question. Here is the Question Below.

QUESTION 1:

You are required to enter up the following transactions for June 1999 in the books of Sharon Ltd. The accounts are then to be balanced off and a trial balance extracted as

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FINANCIAL ACC 101.

MORE EXERCISES ON TRIAL BALANCE.

Hey Guyz, Happy Wednesday. Theres just this feeling of being in the middle of the week, it’s the feeling of Weekend is near. Do you feel it? LOLZ.

Today we are doing something a little bit different, Below are questions that I would love for you guyz and Gals to try out. It’s to improve on our knowledge of this topic and to be sure we totally got this. So Good Luck.

QUESTION 1:

You are required to enter up the following transactions for June 1999 in the books of Sharon Ltd. The accounts are then to be balanced off and a trial balance extracted as at 30^th June 1999.

June 1- Sharon started business by depositing N 25, 000 in a bank a/c.

June 2- Bought motor van on credit from Bilikisu Enterprises N 3, 400.

June 3- Paid rent by

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FINANCIAL ACC 101.

TRIAL BALANCE EXERCISE.

Hey Guys, Happy Tuesday Morning. How was your day yesterday, Hope wonderful? God is set to wow you this week in Jesus Mighty Name- Amen. Today we continue with trial balance in Acc. 101 fully buttress the steps involved in this account.

ILLUSTRATION:

Enter the transactions in the books from the following details for the month of August and extract a trial balance as at 31^st Jan 1997.

Aug 1- Started Business with N 7, 500 in cash

Aug 2- Paid N 3, 500 of the opening cash into a bank account.

Aug 3- Bought goods on credit from Ajala N 135, Kayode N 115, Mark N 55.

Aug 4- Bought office equipment on credit from Ojo N 108.

Aug 6- Sod goods for cash N 501.

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ECONS 101.

LABOUR.

Hey Guyz, Happy New Week and how was your weekend. Hope it was fun, Thank Jesus for the gift of Life and for Health. This week shall bring forth Good news for each and every one of us in Jesus name- Amen. Let’s get straight to work with Econs. 101.

Labour as a factor of production is defined as all forms of human efforts put into or utilized in production. It also refers to man’s mental and physical exertions generated in the process of production. The Rewards for Labour as a Factor of Production comes in form of WAGES & SALARIES.

TYPES OF LABOUR.

There are two main types of labour and they are:

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COMMERCE 101.

MAIN DOCUMENTS USED IN FOREIGN TRADE.

Hey Guyz, Happy Friday to you all. Thank God its Friday feeling is in the air and once again we ought to be grateful to God for the precious gift of Life. THANK YOU JESUS. Let’s get started.

There are various documents which facilitate International Trade and they include the following:

1.     CERTIFICATE OF ORIGIN

This is a document that shows where goods come from or where it is manufactured. This document also enables the custom and excise authorities to determine the duties, the importer should pay on the goods because it attracts preferential duties. It must be signed by custom officers in the exporting countries.

2.     AIRWAY BILL

It is used when goods are been transported by air. It shows the name of the consignor/exporter, airport of loading, destination. It also shows the nature, weight, value of goods and the fright charged.

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FINANCIAL ACC 101.

TRIAL BALANCE EXERCISES.

Hey Guyz, Happy Thursday to you all. It’s almost the end of the week again wow, have you guyz noticed at all how quickly time flys. Hmmm it is well.

Today we are back to Acc 101 with one more illustration on Trial Balance, so let’s get started.

ILLUSTRATION:

Enter the following in the books, balance off and extract a trial balance for the month of March 1994.

March 1- Started business with N 15,000 in the bank and N 7,650 cash in hand.

March 2- Put N 650 of the cash into bank account.

March 3- Bought Goods on credit from: Ayo N 200, Aina N 300, Bikiya N 170, and Timi N 135.

March 4- Cash Sales N 500.

March 5- Bought Machinery by cheque N 700.

March 7- Bought goods for cash N 1,000.

March 9- Paid Insurance by Cash N 60.

March 11- Paid Wages by cheque N 300.

March 13- Received Loan from Ojo by cheque N 620.

March 15- Goods sold on credit to: Dapo N 300, Femi N 65, Kunle N 120, and Gbenga N 120.

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ECONS 101.

FACTORS OF PRODUCTION.

Hey Guyz, Happy Wednesday 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. We are continuing from where we stopped in Econs. 101 with the above topic, so 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.

2.     The Supply of land is fixed, it is impossible for man to increase the quantity of land.

3.     Land is a free gift of Nature.

4.     Land is subject to diminishing returns, this happens when a land is frequently bought under cultivation, and it reduces its productivity.

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FINANCIAL ACC 101.

TRIAL BALANCE.

Hey Guyz, Happy Tuesday. How was Monday for you, well for me it was all school stuff but it was fun, hope it was at least enjoyable for you? It is well with you today in Jesus Mighty Name- Amen. So today we are back to Acc. 101 and a new topic I pray you will enjoy, let’s get started.

Trial Balance is a statement showing the list of balance in a double entry form, extracted from the ledger to show the arithmetic accuracy of the account. The Trial Balance is drawn up at a given date after all the posting have been made in the ledger and they must both be in agreement. When they is a difference between the two sides (i.e. The Credit & Debit Sides), then some errors have occurred.

THINGS TO NOTE ABOUT TRIAL BALANCE:

1.     All Assets must be put in the Debit Side.

2.     All Income must be put in the Credit Side.

3.     All Expenses must be recorded in the Debit Side.

4.     All items with debit balance in the ledger will be debited.

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COMMERCE 101.

    BALANCE OF PAYMENT AND BALANCE OF TRADE.

Hey Guyz, Happy Monday. How was the weekend, mine was cute, hope yours was lovely? Any way this is a new week and a new day to live, learn and have fun. So let’s get started.

Balance of Trade is the relationship between the values of a country’s import and export of visible items within a particular period of time.

If Visible Exports are more than Visible Imports, the Balance of Trade is said to be favorable. On the other hand, if the Visible Import exceeds the Visible Exports, the country is said to have unfavorable Balance of Trade.

Balance of Payment is a statement/record showing the relation between a country’s total payment to other countries and its total receipt from other countries in a year. In other words, it is the comparison of the sum total of a country’s receipt from export and the total payment made for import. Balance of Payment of a country shows the yearly statement of income and expenditure from visible and invisible export, and visible and invisible import respectively.

A Country’s Balance of Payment can be divided into three parts:

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COMMERCE 101

                         DIVISION OF FOREIGN TRADE.

Hey Guyz, what’s happening? How are you all doing, hope great? It’s a beautiful day to live, learn and be merry. Today we are continuing our commerce 101 series.

International Trade can be divided into:

a.     Export.

b.     Import.

c.      Enter-port.

IMPORT.

This is the act of buying goods and services from other countries. It is sometimes restricted to control the country’s Balance of Payment.

It can be divided into:

VISIBLE IMPORT- Consists of goods that can be seen and touched ( i.e. Tangible Goods), that are bought from other countries. For example, The Tangible Visible Imports of Nigeria are Automobiles, Machineries, Electronics etc.

INVISIBLE IMPORT- Consists of services that cannot be seen or touched, which are bought from other countries. For example, Banking.

BARRIERS OF INTERNATIONAL TRADE.

1.     Language Problem- Two countries that speak and understand the same language can trade easily. For example, Nigeria trading with America. While it will be difficult

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ECONS 101.

                            PRODUCTION.

Hey Guyz, Happy Thursday 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.

Production is defined as the various economic activities aimed at the creation of goods and services, and the distribution of these goods and services to the final consumer, for the satisfaction of their human wants.

It is also the creation of Utility, which is the satisfaction derived from consuming a unit of a product. Production can only be complete when the goods and services get to the final consumers.

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.

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FINANCIAL ACC 101.

          BALANCING OF LEDGER ACCOUNT.

Hey Guyz, How was your Night. Hope it was beautiful and peaceful? Mine was great. It’s therefore a New day and a beautiful one at that, it’s really an honour to see and experience today don’t you think. Anyways I know it’s kind of been a while we did this subject ACC 101. Let’s get started.

Before the preparation of Trial Balance, the account must be balanced off at regular intervals during the financial year. It is necessary to balance each account in order to ascertain the overall position recorded in the bookkeeping system. In balancing the account, the following procedures must be followed:

1.     Post all debit items.

2.     Add all the items on the debit side.

3.     Post all credit items.

4.     Add all the items on the credit side.

5.     Compare both the two totals.

6.     If the debit side is greater, insert the difference in the credit side.

7.     If the credit side is greater, insert the difference in the debit side.

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BRINGBACKTHEGIRLS.

I COULDNT LEAVE TODAY WITHOUY LENDING MY VOICE TO HEAVILY EXPRESS MY ANGER AND DISPLEASURE AT THE RECENT DEVELOPMENT IN MY COUNTRY NIGERIA. THE CHIBOK GIRLS THAT WERE ABDUCTED. BRING THEM BACK!!!!!!!

GOD BLESS NIGERIA!!!!!!

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COMMERCE 101.

                                       FOREIGN TRADE.

Hey Guyz, It’s a Beautiful Tuesday- isn't it? How was your day yesterday and your rest yesterday, hope it was peaceful and lovely? I Pray in the name of Jesus that he grants you peaceful rest in all areas of your life- Amen. Now to the matter, we are back with Commerce 101 and we are focusing on the above named topic today, so let’s have fun.

Foreign Trade is the exchange of goods and services between two or more countries. It is when two countries have trading ties and commercial relationship of import and export. In other words, it is referred to as International Trade or External Trade. When Nigeria buys Automobile Cars from Germany, Foreign Trade has taken place.

MAJOR TYPES OF FOREIGN TRADE.

There are two main types of Foreign Trade, and they are:

1.     Bilateral Trade.

2.     Multilateral Trade.

BILATERAL TRADE.

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ECONS 101.

  BASIC ECONOMIC PROBLEMS IN THE SOCIETY.

Hey Guyz, Happy Monday. It’s actually the first Monday in the month of May and it’s such an honour to be ALIVE don’t you think? Well today we continue Econs. 101.

Basic Economics Problems refer to the problems people encounter in the society, while trying to satisfy their numerous human wants, and with the limited resources available. They include- What to Produce, How to produce, for whom to produce and Efficiency of Resource use.

WHAT TO PRODUCE.

The question of what to produce is one of the basic economic problems that confronts any society. This arises mainly as a result of the fact that human wants are unlimited relative to the available resources. It is impossible for all of human wants to be satisfied, thus the need to allocate resources in order of priority is crucial.

FACTORS DETERMINING WHAT TO PRODUCE:

1.     Market Demand- The demand of a particular set of goods and services by customers may encourage producers to produce more of these goods and services. No

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ECONS 101.

BRANCHES OF ECONOMICS.

Hey Guyz, Happy Last day of the week. Happy Friday, It’s a lovely day don’t you agree?. Am just too grateful for life and Beauty.

 Let’s get straight to work.

Economics can be grouped into two major groups namely: Micro- Economics and Macro- Economics.

MICRO-ECONOMICS.

Micro- Economics refers to the branch of economics that deals with smaller units/components of the economy. It is the branch of economics that studies the economic actions of individuals, firms and governments. It relates to cost, output, production, pricing and the marketing activities of households, firms and governments.

ADVANTAGES OF MICRO- ECONOMICS:

1.     Better Understanding- Micro- economics helps in the better understanding of the

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ECONS 101.

        BASIC CONCEPTS OF ECONOMICS CONTD.

Hey Guyz, HAPPY WORKERS DAY to the viewers in Nigeria. It’s a day to recognize the workers of all levels in Nigeria and I Pray for more strength and grace to work effectively and productively and most of all joyfully.

It’s a new day isn’t it; we are going to continue from where we stopped in Economics 101. Let’s get started.

CHOICE.

Choice can be defined as a system of selecting or choosing one out of a number of alternatives. Choice arises as a result of numerous human wants and the scarcity of the resources used in satisfying these wants. Human Wants are many and can’t all be satisfied.

OPPORTUNITY COST.

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