Pen-Write E-Library

SCHEME OF WORK
WEEK:
1. Revision of last term work- Partnership Accounts
2. Dissolution of Partnership- reasons and entry required in closing the firms books of Account (Settlement accounts)
3. Joint Venture Account- Meaning, Purpose and Joint Venture Accounts, Memorandum Account.
4. Introduction to Company Account- Meaning, Formation, Articles of Association, Memorandum of Association and Sources of Finance (Shares and Debentures)
5. Preparation of Company Final account trading, profit and loss and appropriation Accounts (Horizontal)
6. Preparation of Company Final account- Trading, Profit and Loss and Appropriation Account (Vertical)
7. Issues of Shares- Classes, terms of issues of shares and working exercise-(Journal and ledger entries)
8. Interpretation of balance sheet with calculation of simple ratios and working exercise.
9. Purchase of business- meaning, Reasons, Format, amalgamation and working exercise.
10. Introduction to data processing- History, characteristics, Component, classification Installation, advantages and Disadvantages.
11. Revisions

Topic:- Revision of last term exam

Reference books:-
1. Essential Book-keeping for SSS by O.A. Longe
2. Simplified Book-keeping Accounting for SSS by F.L. Olatunji
3. Book-keeping Accounts for senior sec. school in West Africa by Lanre
Akinpelu


Sub-topic:- Revision of last term work
Behavioral objective:- by the end of the lesson, difficult topics in last terms scheme should be covered and the last terms questions

Content Element:-
Solution to objective tests and theory questions.

Evaluation:- question no 3 of the last term question

Topic:- Goodwill Account
Reference books:-
1. Essential Book-keeping for SSS by O.A. Longe
2. Simplified Book-keeping Accounting for SSS by F.L. Olatunji
3. Book-keeping Accounts for senior sec. school in West Africa by Lanre
Akinpelu



Sub-topic:- Introduction to Goodwill Account.
Behavioral objective:- by the end of the lesson, students should be able to
(i) define Goodwill
(ii) state reasons for Goodwill
(iii) state the factors which create Goodwill for any firm.

Content Element:- Goodwill is the benefits and advantage arising from the good name, connection, position and reputation of a business which makes it to earn more profit.
It is a intangible asset and cannot be realised except upon the sales of the business. It is the attraction force which brings customers.

Reasons for Goodwill:-
(i) Quality of goods and services sold. The purchaser can pay for goodwill when the products are durable and of standard quality.
(ii) personality of the owner: personal reputation of the owner arising through his skill and influence can also bring goodwill.
(iii) Favourable location: A purchaser may pay for goodwill as a result of the location of the business in a condusive environment.
(iv) Monopoly power: the business may enjoy some form of monopoly which may be due to some form of government license.
(v) cost of research and development: produce research and development may bring about cheaper methods of production.
(vi) Good public relation: public relation is the image building done by an organization to give the public favourable impression about its aims and policies.

Factors circumstances which create Goodwill.
The circumstances giving rise to the ascertainment of goodwill are;
a) Admission of a new partner.
b) change in profit sharing ratio
c) Death or retirement of a partner
d) The purchase of the business
e) dissolution of a business

Admission of new partner
treatment of goodwill: On the introduction of a new partners, the share
of the profit taken by each of the partner must change. The existing partners will expect to receive compensation for surrendering part of their profit. Then goodwill will be brought into the business.

This will be dealt with as follows.
a) Raising of goodwill Account in the books. Here, the value of goodwill is debited to goodwill Account and credited to the capital account in the partners old profit and loss having ratio.
According entries
Goodwill introduced:
Dr Goodwill account
Cr partners capital account
Cash introduced by a new partner as capital
Dr cash book
Cr capital account
b) Goodwill written off:
Dr capital
Cr goodwill

Evaluation:- a) What is Goodwill?
b) state five reasons for goodwill

Assignment:- (i) explain five factors that create goodwill in a firm.
(ii) state the accounting entries for treatment of goodwill.

Topic:- Partnership a/c
Reference books:-
1. Essential Book-keeping for SSS by O.A. Longe
2. Simplified Book-keeping Accounting for SSS by F.L. Olatunji
3. Book-keeping Accounts for senior sec. school in West Africa by Lanre
Akinpelu



Behavioral objective:- at the end of the lesson, students should be able to solve questions on revaluation.

click below to view content
https://docs.google.com/open?id=0Bz3Mh6 ... M4MmFiMGMz

Evaluation:- state three instances when assets can be revalued.

Assignment:- Essential Bookkeeping account by O.A. Longe pg.282. Exercise 24:3.

Topic:- Partnership Dissolution
Reference books:-
1. Essential Book-keeping for SSS by O.A. Longe
2. Simplified Book-keeping Accounting for SSS by F.L. Olatunji
3. Book-keeping Accounts for senior sec. school in West Africa by Lanre
Akinpelu


Behavioral objective:- at the end of the lesson, students should be able to prepare dissolution partnership account.

Content Element:- dissolution of partnership is the process whereby a partnership is automatically dissolved or brought to an end by the happening if any event which makes it unlawful to carry on the business. Dissolution means cessation of business, disposal of assets settlements of debts and division of cash balance among members.

Reasons for dissolution
The following reasons can give rise to dissolution of partnership.
i. withdrawal or retirement of partners
ii. admission of a new partner.
iii. insanity of a partner
iv. death of a partner
v. bankruptcy of a partner
vi. Non-performance of the business
vii. Expiration of the time given.

Rules for Distribution of Assets
The rules for distribution of assets after dissolution are stated under section 44 of the partnership act.
The assets of the firm including the sums contributed by the partners to make up losses or deficiencies of capital shall be applied in the following member.
a) Payment of debts and liabilities to outsiders.
b) settlement of loan due to partners
c) payment of amount due to partners as capitals
d) The profit shall be shared among the partners in their profit sharing ratio.

click below to view format of realization account

https://docs.google.com/open?id=0Bz3Mh6 ... ZkNWU4N2Q3

Topic:- Accounting concepts and conventions;
Reference books:-
1. Essential Book-keeping for SSS by O.A. Longe
2. Simplified Book-keeping Accounting for SSS by F.L. Olatunji
3. Book-keeping Accounts for senior sec. school in West Africa by L.
Akinpelu



Sub-topic:- Accounting concept.
Behavioral objective:- at the end of the lesson, students should be able to (i) desire accounting conventions and concepts. (ii) state and explain the various accounting concepts and conventions.

Content Element:- Account concepts: there are the basic or fundamental assumptions on which the financial accounts of a business enterprises are prepared and presented. These concepts are.
i. Going concern:- this concept assumes that the business will continue to
operate for an indefinitely long period of time.
ii. Cost concept:- this concept implies that the accountant determines the
value of an asset by reference to the cost of its acquisition and not by the
value of returns which are expected to be earned.
iii. realization concept:- Income is considered or regarded to have been
earned when the goods are desparated to the customer and the incurs
liability for them.
iv. Accrual concept:- this means that revenue and expenses are recognized
as hey are earned or incurred and not when money is received or paid.
v. Business entity:- this states that business organization should be treated
as a separate entity form the owner.

Accounting conventions:
Conventions are generally accepted approaches to the application of the earlier concepts. The conventions are:
a) Materiality convention: This principle states that only items of material values are recorded. The accountant must not record items which may not have significant effect on the statement.
b) Consistency convention:- this convention states that according teat of similar items should be continuously applied from one accounting period to the next in a consistent manner.
c) Prudence/Conservatism: This principles states the accountant should act anticipate income and will normally take the figure that will understand rather than overstake the profit

Evaluation:- What is accounting concepts and what is accounting convention?

Assignment:- Explain the following procedural concept:
a) Monetary measurement
b) Entity
c) Consistency
d) Fiving concern
e) Prudence

Topic:- Purchase of Business
Reference books:-
1. Essential Book-keeping for SSS by O.A. Longe
2. Simplified Book-keeping Accounting for SSS by F.L. Olatunji
3. Book-keeping Accounts for senior sec. school in West Africa by L.
Akinpelu


Sub-topic:- Purchase of Business a/c
Behavioral objective:- at the end of the lesson, students should be able to (i) state the reasons for purchase. (ii) explain and prepare the necessary accounts relating to the purchase of business.

Content Element:- Purchase of business is the process of acquisition of old business by a company. Promoters can acquire a business and sell it to another company at a profit. The person who sells the business to another company is called the vendor. The person buying is the vendee while the money paid by the purchaser is called purchase price. The purchase of a business must involve agreement between the parties. A viable business likely to sell more than its present value while a not too impressive performance may be sold at lower price.
In the purchase of business, the assets name and correction of the business will be taken over, hence goodwill must be paid for.
The assets and liabilities of the business must be revalued. The purchase can assume trade liabilities as part of the consideration. The excess of the purchase consideration over the net value of asset is called Goodwill.

click below to view example

https://docs.google.com/open?id=0Bz3Mh6 ... I2YmJhODBi

Evaluation:- explain the following
a) vendor
b) vendee
c) Goodwill

Assignment:- Essential Book keeping Accounts by O.A. Longe Exercise 25.2A

Topic:- Company account
Reference books:-
1. Essential Book-keeping for SSS by O.A. Longe
2. Simplified Book-keeping Accounting for SSS by F.L. Olatunji
3. Book-keeping Accounts for senior sec. school in West Africa by L.
Akinpelu



Sub-topic:- Meaning of company
Behavioral objective:- at the end of the lesson, students should be able to (i) define a company. (ii) state the kinds of companies. (iii) state the xteristics of limited liability company.

Content Element:- A company can be define as a legal person or entity created by the association of a number of persons in accordance with the law for the purpose of a defined object.

Kinds of companies:
Three kinds of companies may be constituted under the companies Acts.68
1. Company limited by shares: these are companies having the liability of its members limited by the amount of shares held by them.
2. Company limited by guarantee: these are companies having the liability of its members limited by the amount each member guarantee to contribute to meet the company liabilities in the event of winding up.
3. Unlimited company: These are companies having the liability of its members unlimited. In the event of liquidation members will be liable to the full amount of liabilities.

Characteristics of limited liability company:
1. Public liability company are legal entity
2. The liabilities are limited to the amount contributed.
3. Death of a member will not affected the existence of the company.
4. Ownership is separated from management
5. It must follow some special formalities before registration.

Evaluation:- What is a company? (ii) list three kinds of company.

Assignment:- What are the characteristics of a public company.

WEEK 9

Topic:- Company account
Reference books:-
1. Essential Book-keeping for SSS by O.A. Longe
2. Simplified Book-keeping Accounting for SSS by F.L. Olatunji
3. Book-keeping Accounts for senior sec. school in West Africa by L.
Akinpelu



Sub-topic:- Preparation of simple company accounts
Behavioral objective:- at the end of the lesson, students should be able to (i) prepare simple company account.

click below to view content

https://docs.google.com/open?id=0Bz3Mh6 ... E3YWQ3MWQ0

Additional Information
a. stock at close N12,500
b. expenses unpaid motor expenses N200 insurance N450, sundry expenses N400
c. prepaid expenses: rates N320, sundry expenses N250
d. provision for bad debts to be increased to 2500
e. part of the premises is sublet at 2400 per annum.
f. monthly salaries and wages bill N400
g. bad debts at 31st Dec. N600
h. loan interest is 5% per annum.
i. provide for depreciation on a straight ling basis: premises 2%, plant & machinery 25% motor vehicles 10%
j. write off preliminary expenses.
k. Transfer to general reserves N5,000 and N5,000 to revenue reserve.
Required: prepare (a) trading, profit and loss and appropriate account for
the year ended 31st Dec. 1990 (b) A balance sheet as at that date.

Evaluation:- Mention and explain five types of capital.

Assignment:- Essential financial accounting exercise 26.1 page 310.