Book Keeping Form 4

Indice

1. 1. Partnership Accounts

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   • Partnerships and the partnership deed
   • The profit and loss appropriation account
   • Capital accounts and current accounts
   • Interest on drawings, partners' loans and sharing losses
   • The balance sheet of a partnership
   • Summary

   Meaning A partnership is a business owned by two or more people (usually 2 to 20) who share the profits of a business carried on together. Partners agree on their rights and duties in a written partnership deed (agreement) , which normally covers: capital to be contributed, profit- and loss-sharing ratio, interest on…

2. 2. Departmental Accounts

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   • What are departmental accounts?
   • The departmental trading account
   • Apportioning common expenses
   • Departmental profit and loss account and interpreting results
   • Summary

   Meaning A business with several sections, such as a supermarket with food, clothing and electronics departments, may prepare departmental accounts : a trading and profit and loss account for each department, usually in columnar form with one column per department and a total column. This shows the profit or loss of…

3. 3. Consignment Accounts

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   • What is a consignment?
   • Recording a consignment in the consignor's books
   • Valuing unsold stock on consignment
   • The consignee's books, account sales and del credere commission
   • Summary

   Meaning A consignment is an arrangement where a trader (the consignor , owner of the goods) sends goods to an agent (the consignee ) who sells them on the consignor's behalf for a commission . Ownership stays with the consignor until the goods are sold. Example: a coffee cooperative in Moshi sends coffee to an agent in…

4. 4. Joint Venture

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   • What is a joint venture?
   • The memorandum joint venture account
   • Each venturer's own records and goods taken over
   • A separate set of books with a joint bank account
   • Summary

   Meaning A joint venture is a temporary partnership in which two or more people (co-venturers) join together to carry out a particular business project, such as buying and reselling a lorry-load of maize or building a single house. It ends when the project is finished. There is usually no firm name and the venturers…

5. 5. Bills of Exchange

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   • Bills of exchange: meaning and parties
   • Tenor, due date and discounting
   • Recording bills in the drawer's and acceptor's books
   • Dishonour, noting, renewal and retiring of bills
   • Summary

   Meaning A bill of exchange is an unconditional order in writing, addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand or at a fixed or determinable future time a certain sum of money to, or to the order of, a specified person or to the bearer.…

6. 6. Elements of Auditing

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   • Meaning and objectives of auditing
   • Types of audit
   • Internal control, vouching and verification
   • The auditor: qualities, rights, duties and the audit report
   • Summary

   Meaning Auditing is the independent examination of the books, accounts, vouchers and other records of an organisation by a qualified person (the auditor ), so that he can give an opinion on whether the financial statements show a true and fair view . In Tanzania, practising auditors are registered by the National Board…