ACCOUNTING OBJ
1-10 CCBBCACCCD
11-20 CCBCBBDBBB
21-30 CAADADBCBA
31-40 ABDCDACBBB
41-50 BBDBADCCCC1a) General journal is the accounting version of our
personal journals. It doesn't record everything that
happens to the business, of course, but it does record
every financial transaction that takes place (sometimes
alone, sometimes as a group of similar transactions). Like
our personal journal entries, it notes the date, the
accounts involved, and the amounts of money, as well as
providing a brief description of what happened.
1b)
i. Recording of disposal of fixed asset
ii. For recording opening entries
iii. Transfer of items between accounts
iv. Correction of errors
v. Double entry transaction
vi. For recording closing balance of entries
2ai.)Discount Allowed
Bills receivable
Bad debts
Return inwards
********************
2aii).Discount Received
Bills Payable
Cash to suppliers
Return outwards
2b) Error of original entry
2. Error of omission
3. Error of commission
4. Error of principle
5. Compensating errors
6. Complete reversal of entry
3a) Sales journal is use to record credit sales of
transaction.
– purchase journal is use to record credit purchase of a
transaction
-cash book is a book in which receipt and payment of
money are recorded
-The pretty cash book is a formal summaization of petty
cash expenditions sorted by date. in most cases, the pretty
cash book is an actual ledger book,rather than a computer
record.thus the book is part of a manuel record- keeping
system.
-Return inwards are goods returned to the selling entity by
the constomer,such as for warranty claims or outrig
returns of goods for a credit
(3b)
Uses of journal
*They are used to record errors
*record purchase and sale of fixed assets on credit.
*record closing entrie
*record transfers between ledgers.
*Record opening the closing entires,write off debt
========================================
4a) Depreciation is the measure of the wearing out, consumption or other loss of value of a fixed asset whether arising from use, effluxion of time or obsolescence through technology and market changes
4b)
I. Physical deterioration
ii. Obsolescence
iii. The time factor
iv. Economic factor
v. Inadequacy
4c.)
i. Straight line: This allows an equal amount to be charged as depreciation for each year of expected use of the asset. The basic formulae is
Cost- Estimated residual value/ number of years of expected use.
Advantage: it is simple to calculate
ii. It is time oriented
Disadvantage:
i. Assumption of equal or constant revenue per year is unrealistic
ii. Might lead to a misleading picture of the financial statement
Cii) Reducing balance: Under this method, the depreciation charged per annum is determined by applying a fixed rate of depreciation on the net book value of the asset at the beginning of each year.
Disadvantage of reducing balance:
Difficulty in calculating the rate of depreciation

---