Lesson Notes By Weeks and Term - Senior Secondary 2
Company account
Company account
Term: 3rd Term
Week: 9
Class: Senior Secondary School 2
Age: 16 years
Duration: 40 minutes of 2 periods each
Date:
Subject: Financial accounting
Topic:- Company account
SPECIFIC OBJECTIVES: At the end of the lesson, pupils should be able to
INSTRUCTIONAL TECHNIQUES: Identification, explanation, questions and answers, demonstration, videos from source
INSTRUCTIONAL MATERIALS: Videos, loud speaker, textbook, pictures
INSTRUCTIONAL PROCEDURES
PERIOD 1-2
|
PRESENTATION |
TEACHER’S ACTIVITY |
STUDENT’S ACTIVITY |
|
STEP 1 INTRODUCTION |
The teacher reviews the previous lesson on loan capital |
Students pay attention |
|
STEP 2 EXPLANATION |
She lists the components of final account of a company and the items in the layout of trading, profit and loss account
|
Students pay attention and participates |
|
STEP 3 DEMONSTRATION |
She lists items in the layout of appropriation account of a company |
Students pay attention and participate |
|
STEP 4 NOTE TAKING |
The teacher writes a summarized note on the board |
The students copy the note in their books |
NOTE
COMPANY ACCOUNT
The final account of a limited liability company is made up of;
Appropriation Account for the year ended 31st December, 19XYZ
ILLUSTRATION
The following information was extracted from the books of ZEST Nigeria Ltd. On 31st December,1997.
|
|
|
CR |
|
|
N |
N |
|
Authorised & Issued Shares Capital; |
|
|
|
20,000ordinarysharesofN1each |
|
20,000 |
|
5,0008% preferencesharesofN1each |
|
5,000 |
|
Purchases |
61,450 |
|
|
Sales |
|
78,210 |
|
Stock at 1st January |
6024 |
|
|
Returns |
320 |
410 |
|
Carriage Inwards |
630 |
|
|
Carriage Outwards |
470 |
|
|
Wages and salaries |
2,688 |
|
|
Lighting and heating |
730 |
|
|
Rates |
1,200 |
|
|
Repairs and maintenance |
648 |
|
|
Motor expenses |
2,335 |
|
|
Furniture and fittings at cost |
8,000 |
|
|
Office equipment at cost |
900 |
|
|
Premises at cost |
15,000 |
|
|
Motor van at cost |
4,000 |
|
|
Provision for Depreciation: |
|
|
|
Furniture and fittings |
|
3,000 |
|
Office equipment |
|
250 |
|
Motor van |
|
2,000 |
|
Discounts allowed |
265 |
|
|
Directors’ remuneration |
2,400 |
|
|
Auditors’ remuneration |
320 |
|
|
Share premium account |
|
2,000 |
|
General reserve |
|
2,000 |
|
Debtors |
9,050 |
|
|
Creditors |
|
2,120 |
|
Profit and loss balance last year |
|
2,440 |
|
Cash at bank |
1,000 |
|
|
|
117,430 |
117,430 |
Additional Information:
Stockat31stDecemberN7,434
Electricity bill in outstanding N70
Rates prepaid N240
Wages owing N112
Depreciate Motor van at 25% on the reducing balance system
Fixtures and fittings 10%,
Office equipment at 10% on cost
Transfer N1,000 to general reserve
Provide for the final preference dividend and for a recommended final ordinary dividend of 8%
Corporate tax to be N1,750.
You are required to prepare:
ZEST NIGERIA LTD.
Trading, Profit and Loss Account for the year ended 31st December,1997.
|
Expenses: |
Grossprofitb/d 17,630 |
|
Carriage outwards 470 |
|
|
Wages and salaries(2,688+112) 2800 |
|
|
Lighting(730+70) 800 |
|
|
Rates(1,200– 240) 960 |
|
|
Repairs 648 |
|
|
Motor expenses 2,335 |
|
|
Discount allowed 265 |
|
|
Directors remuneration 2,400 |
|
|
Auditors remuneration 320 |
|
|
Depreciation: |
|
|
Motor van(25%×2000) 500 |
|
|
Furniture and fittings(10%×8000) 800 |
|
|
Office equipment(10%×900) 90 |
|
|
12,388 |
|
|
Netprofit 5,242 |
|
|
17,630 |
17,630 |
Appropriation Account for the year ended 31st December,1997
EVALUATION:
CLASSWORK: As in evaluation
CONCLUSION: The teacher commends the students positively