Wednesday, 1st December, 2021
Financial Accounting (Objective & Essay)
9.00am – 12:30pm
Financial Accounting Essay
A ledger is a book or collection of accounts in which account transactions are recorded.
(i) Personal Accounts:
These are accounts in which transactions with persons or other business organization are recorded. Example are debtors and creditors. The capital account is a special kind of account.
(ii) Real Account:
They are impersonal accounts which record transactions relating to property or material objects. Examples include accounts of land and buildings, motor vehicles, stock of goods bought for resale.
(i) Rent Account
(ii) Commission received Account
(iii) Salary Account
(iv) Wages Account
(v) Conveyance Account
(i) AUTHORIZED CAPITAL
Authorized Capital implies the maximum ceiling of share capital which can be raised by a company from the public by issuing shares.
(ii) ISSUED CAPITAL
issued capital is a part of the authorized capital, which is offered to the general public for subscription
(i) Name of the company
(ii) Registered office of the company
(iii) The objectives of the company
(iv) The amount of authorized Capital
(v) A statement of the effect that the liability of the company is limited
Articles of association form a document that specifies the regulations for a company’s operations and defines the company’s purpose.