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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