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FINANCIAL ACCOUNTING AND EXCEL-COMPREHENSIVE ACCOUNTING COURSE, COMLETE FINANCE MANAGER COURSE 2020 AND 2020-21COMPLETE US ACCOUNTING STANDARDS BASED COURSE

A SUMMER INTERNSHIP REPORT

Submitted by:

BISMARK AGOBA OPOKU

Registration No: 11815912

In partial fulfilment of summer internship for award of the degree of:

BACHELOR OF SCIENCES ECONOMICS HONS

(B.SC(HONS.) ECONOMICS)

School of Business

LOVELY PROFESSIONAL UNIVERSITY

Phagwara, Punjab

September 2020

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Acknowledgment

I would like to express my sincere gratitude to the following people for their involvement to the success of this project.

First, I want to say a very big thank you to HOD Sir Vishal Sarin, Section Mentor Dr Tushinder Preet Kaur, Dr. Vijay Srivatsa and Dr. Abhay Grover for their vibrant effort in supporting me to find ways and means to complete my summer internship training as international student.

To be frank, things were very tough during the process of finding these courses. But these people guided me in even in the midst of this pandemic.

There is a saying that no one is 100% perfect and in order for an individual to gain some perfection, he or she will need a helping hand. I had the chance to do my internship in an organization in Delhi through the internshala app. But it was rather unfortunate that the whole word was facing a pandemic so I could not join the organization. It came to a point that we were ask to do our internship online. This were very difficult but some individuals, out of their busy schedule helped me get these MOOC courses and I want to say a very big thank you to everyone who helped me sort things out even when the whole world is undergoing through a bigger challenge through this acknowledgement.

Decertation report is a bridge connecting the educational and professional use. It is the path leading to success by shouldering responsibilities under the careful guidance of seniors and experienced personnel without fear and failures.

It gave me immense pleasure to take the opportunity to remember and thanks to the personalities who are involved with this project during its study stage and during my days of hard work. I feel that it's my duty to Express thanks and deep gratitude to everyone who is directly or indirectly associated in the completion of this Dissertation report.

With deep reverence, I offer my deepest regard gratitude to all of my friends and parents without whom this report could not have been fulfilled. I am thankful to LPU faculty members helping me to gain an experience which without then would have been complicated to accomplish.

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TABLE OF CONTENT

Chapters

TOPICS

PAGES

Acknowledgment

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Introduction to financial accounting and excel comprehensive accounting course, complete finance manager course 2020 and 2020-21 complete US accounting standard based course

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Introduction of Broad Topic

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Course Pedagogy

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Learning from FINANCIAL ACCOUNTING AND EXCEL-COMPREHENSIVE ACCOUNTING COURSE, COMLETE FINANCE MANAGER COURSE 2020 AND 2020-21COMPLETE US ACCOUNTING STANDARDS BASED COURSE

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Conclusion

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References

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INTRODUCTION TO FINANCIAL ACCOUNTING AND EXCEL-COMPREHENSIVE ACCOUNTING COURSE, COMLETE FINANCE MANAGER COURSE 2020 AND 2020-21COMPLETE US ACCOUNTING STANDARDS BASED COURSE

These are Accounting related courses that focuses on the fundamentals of Financial Accounting and how excel are used for the preparation of the various accounts and financial statements. The courses do not only focus on theory but also pays more attention to how these financial theories or accounts can be done with the help of computer, excel.

So, these are three (3) major courses which gives knowledge on three (3) of the most important fields in the word. These fields are Accountancy, Finance management and IT.

The exciting part of these courses was that all the teachers were people who have many experiences in the field of accounting and they used modern of teaching.

COURSE FEE:

Each course cost me 470 rupees. So, the total cost of these three (3) courses was 1410 rupees.

COURSE REGISTRATION PROCESS:

I was having an account in Udemy, so, I logged in to my account, searched for the courses that I wanted to undertake and their respective prices, then i made an online payment through my SBI master card.

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INTRODUCTION TO THE BROAD TOPIC

FINANCIAL ACCOUNTING AND EXCEL-COMPREHENSIVE ACCOUNTING COURSE, COMLETE FINANCE MANAGER COURSE 2020 AND 2020-21COMPLETE US ACCOUNTING STANDARDS BASED COURSE

Financial Accounting is the act of collection, recording, classifying, summarizing interpretation and communication of monetary data and information of an organization in monetary terms to enable users makes assessments and decisions.

STAGES IN THE ACCOUNTING PROCESS

 COLLECTION OF DATA: In accounting, monetary data are collected from different sources such as invoice, receipt, etc.

 RECORDING OF DATA: The data collected from either invoice, receipt, etc are recorded in the books of account such as Journal.

 CLASSIFICATION OF DATA: The recorded data is grouped in a way such that similar one’s are put together (Ledger).

 SUMMARIZING OF DATA: The data collected is recorded in the form of Financial Statement. Example; Trading, Profit and Loss Account and balance sheet, etc.

 INTERPRETATION AND REPORTING OF DATA: The summarized data is explained and communicated to users of accounting information.

 COMMUNICATION OF DATA: The accounting information after being summarized and interpreted has to be communicated in a person.

AIMS AND FUNCTIONS OF FINANCIAL ACCOUNTING

 To provide economic information for both business decisions and societal uses. That is, Financial Accounting provides the business with all the necessarily information needed in its decision making. Before a business can come out with a relevant and a good decision, it has to take some economic factors such as the rate of inflation, exchange rate, tax rate, repo rate, reserve repo rate, interest rate etc. into consideration. Accountants provides the firm with all this relevant information to enable the firm come out with a relevant information.

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 To satisfy legal regulations. It is the objective of Financial Accounting to see to it that the firm has met all of its legal requirements. These legal requirements the payment of tax, going by the rules and regulations of the land and also meeting the expectations of the land. It ensures that always the firm is at the state of being regulated.

 It provides systematic ways of keeping Financial records. Every organization, being it profit making organization or not for profit making organization deals with monetary transactions. Financial Accounting has divers’ ways of keeping monetary transactions of every organization. The traditional method of keeping such record was the system called BOOK KEEPING. But recently, excel plays an important role in the course of keeping Financial records. Excel can be use to keep almost all the Financial Accounting records, being it; journals, ledgers, income and expenditure accounts, bank reconciliation statements, trading, profit and loss accounts, balance sheet, etc.

 It keeps records of the daily activities of the organization in monetary terms. Before every organization can meet it long term goal, it first has to deal with its short-term activities. That is managing the short assets and short liabilities of the organization. The short assets of the organization are the assets that does not remain in the organization for more than one year and it includes; cash, stocks, debtors, bank, expenses prepaid. Whilst the short-term liabilities of the organization are the liabilities which are expected to be settled within one accounting year and it includes; creditors, short term bank loan, bank overdraft, bill payable and owing’s, accrued expenses etc.

 It provides information about the firm’s profitability and solvency of the firm. As we all know, Financial Accounting reports to both insiders and outsiders of the organization. It reports to the insiders of the organization such as managers, directors, supervisors, etc so that they can assess the performance of the organization. This help the top-level managers to decide where to invest more of the organizations assets and where to invest less. To the outsiders such as customers, creditors, shareholders etc. this information helps the to know the strength of the organization and it also helps them to decide whether to continue their dealings with the organization or they should quit.

EXCELL Excel is a convenient software that can be used to store and organize many data sets. Using the features and formulas of excel, we can also use the excel tool to make sense of our data. For example, we could use a spreadsheet to track data and automatically see sums

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averages and totals, we use it to create any account in accounting and it is very simple and convenient. It features calculation, graphing tools, pivot tables, and a macro programming language called Visual Basic for Applications. IMPORTANCE OF EXCELL IN FINANCIAL ACCOUNTING  Excel was planned to support accounting functions such as budgeting, preparing financial statements and creating balance sheets, ledgers, journals etc. It comes with basic spreadsheet functionality and many other accounting related functions for performing complex mathematical and accounting calculations. Excel also supports many add-ons for activities such as modelling and financial forecasting, and effortlessly fit in with external data to allow us import and export banking information and financial data to and from other accounting software platforms.

 Excel crafts with templates for creating budgets, cash-flow statements and profit-and-loss statements, balance sheets, journals, ledgers which are some of the most basic and important documents used in financial accounting. Moreover, we can download additional complex budgeting and statement templates from the Office website, or we can purchase specific templates from third-party salespersons and install these in the application. the use of excel in accounting is so simple to the extent that If we want to create a complex or custom budgets or financial statements, we can either modify or tailor an existing template and re-use its elements, or create one from scratch using the functionality built into Excel.

 Performing line calculations is a basic accounting task, and Excel spreadsheets are designed to contain data in a tabular format that supports both in-line and summation calculations, substituting the need for ticker tape and special accounting calculators. The data in the spreadsheet is recyclable and storable, making Excel more flexible than an accounting calculator for performing simple calculations and summations. Furthermore, we can create charts and graphs from the spreadsheet data, creating a media-rich user knowledge and different views of the same data. we can also use add-ons to mine the data and create models and financial forecasts.  We can import data from many different data sources into Excel. This is particularly useful for accounting as WE can jerk sales data, banking data and invoices from countless sources into one central workbook to support our accounting activities. The data can be stored in diverse databases and file formats prior to importing, allowing us to

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access data from several different areas of our business without having to do additional data entry.  Excel integrates with many popular accounting software applications. For example, we can use the wizards that ship with our favourite accounting software package to plot Excel spreadsheets to our accounting data so that we can perform push and pull data operations from both Excel and our accounting package on demand.  For financial insight and analysis, crunching numbers and compiling non-numerical data, Excel continues to be the tool of choice throughout the accounting and finance field. Having made its debut in 1985, Excel remains a backbone in most industries, notwithstanding extensive technological changes. Excel is used for analysing data, managing budgets, forecasting and modelling financial performance, Excel is a staple of business today.

ACCOUNTING CONCEPTS Accounting Concepts are the fundamental rules governing the preparation and presentation of annual financial report. Accounting Concepts are the broad basic assumptions underlying the preparation of the Financial statement of business organizations. Without the Accounting Concepts, the accountant wouldn’t have had a standardized way of presenting financial statement.

Basically, we have four (4) Fundamental Accounting Concepts. And they are:  GOING CONCERN CONCEPT: This concept assumes that business will continue to operate for a foreseeable future. Thus, in the preparation of accounts, the accountant assumes that the business will continue to operate for an indefinite period. Because of this concept, balance is carried down to be used in the succeeding period. Assets are shown at cost to the business. In the absence of this concept, liquidation values would have been used for the assets.

IMPORTANCE OF THE GOING CONCERN CONCEPT  Assets are recorded at cost in the accounting books instead of their saleable values.  It makes it possible for the business to spread cost over certain future periods instead of charging all in one profit and loss account, a case in point here is Depreciation of fixed assets.

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 Fixed assets are valued at cost less depreciation  Cost of fixed assets are therefore spread over the lifespan of the assets.

LIMITATIONS OF GOING CONCERN CONCEPT  It may mislead because some firms do cease trade shortly after publication of accounts drawn upon going concern bases.  The assumption that the business will continue indefinitely can be said to be illusion, unrealistic, absurd and too forward.

 ACCRUALS OR MATCHING CONCEPT: This concept states that in determining the net profit for the period. That is all revenue must be matched with the expenses irrespective of the date of receipt/ payment. This implies that all prepayment and accruals relating to the period of consideration should be taking care of before arriving at the net profit.

SIGNIFICANCE OF ACCRUALS OR MATCHING CONCEPT  It helps to disclose the true profit or loss relating to the particular year under review.  It helps to identify the specific cost relating to the accounting year.  It provides the basis for the identification of revenue items and capital items LIMITAIONS OF ACCRUALS OR MATCHING CONCEPT

 There may be difficulty in determining which cost is associated with particular revenue. Example; estimation of depreciation provision for the period and revenue associated with a particular contract.

 CONSISTENCY CONCEPTS: This concept assumes that the methods used by an entity in the compilation and presentation of account should be maintained over a long period of time to facilitate interpretation and comparison of a periods record with others. Thus, the accountant must maintain a specific method of recording accounting records over the period.

SIGNIFICANTS OF CONSISTENCY CONEPTS  It ensures that consistency is adopted in the preparation of accounts.

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 It facilitates inter-company comparisons  It gives a clear picture as to the nature of the business and its purpose.  Trends within the business can be easily be measured since data are comparable.  It prevents the accountants from manipulating the accounting information by using different methods at different periods.

LIMITATIONS OF CONSISTENCY CONEPTS  Price level changes underline the assumptions.  A meaningful comparison can only be made if prices and purchasing power of Money do not change.

 CONSERVATISM OR PRUDENCE CONCEPT: This concept forbids the accountant to anticipate profits, but requires him to provide for all possible losses. Thus, if he is faced with two alternatives, he is advised to adopt the method which will make him show smaller profit. Revenue should not be recognized until they realized and all losses should be provided for making provision for doubtful debt conform to this method.

SIGNIFICANCE OF CONSERVATISM OR PRUDENCE CONCEPT  It prevents proprietors from making huge drawings.  It helps to make available enough funds for the payment of dividends and wages.  It prevents a business entity from becoming an insolvent.

LIMITATIONS OF CONSERVATISM OR PRUDENCE CONCEPT  It introduces bias into financial reports by understating profits and overstating losses. Other Accounting Concepts are:  Business Entity Concept  Historical Cost Concept Concept  Money Measured Concept  Duality/ Dual Concept  Realisation Concept  Full Disclosure Concepts  Periodicity Concept

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 Materiality Concept  Objectivity Concept

THE ACCOUNTING EQUATION AND THE BALANCE SHEET

The Accounting Equation refers to the basic principles underlying the preparation of Financial statements in accounting.

The resources in the business should be equal to the resources supplied by the owner of the firm.

The Accounting Equation is [ ASSETS = CAPITAL]

But, the assets of the business may be acquired through the contribution of outsiders (Liabilities) and the contribution from the owner (Capital).

Now, the Accounting Equation becomes:

 [ASSETS = CAPITAL + LIABILITIES]

 [CAPITAL = ASSETS – LIABILITIES]

 [LIABILITIES = ASSETS – CAPITAL]

ACCOUNTING ENTRIES

 All assets have debit (Dr) balances.

 All capitals have credit (Cr) balances.

 All liabilities have credit (Cr) balances.

 All expenses have debit (Dr) balances.

 All incomes have credit (Cr) balances.

BALANCE SHEET

A balance sheet is a financial statement (expressing items in monetary terms) prepared at a particular time to show the assets, capital and liabilities of any entity or a firm.

The balance sheet shows the assets of the business and how these assets have been financed or acquired.

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COMPONENTS OF BALANCE SHEET

The components of Accounting Equation are sub divided into the following in the balance sheet.

ASSETS

FIXED ASSETS

CURRENT ASSETS

TANGIBLE FIXED ASSETS

INTANGUBLE FIXED ASSETS

=

LIABILITIES

LONG TERM LIABILITIS

SHORT TERM LIABILITIES

+

CAPITAL

BASIC TERMINOLOGIES

 ASSETS: Refers to the economic resources that provides potential future service to an organization. That is, they are the resources that belongs to the organization.

Assets have been classified into two (2). They are; Fixed and Current Assets.

 FIXED ASSETS: These are the assets or properties of the organization, acquired not for resale but to help in running the activities of the organization. They are often in business for more than one year. Examples are; Plant and machinery, Buildings, Fixtures and fittings, Furnitures, Motor vehicle, Equipment, Premises, etc.

They are further divided into two (2). They are Tangible Fixed assets and Intangible Fixed assets

 TANGIBLE FIXED ASSETS: They are that type of fixed asset that can be seen, touched and felt. Example; Plant and machinery, Buildings, Equipment, etc.

 INTANGIBLE FIXED ASSETS: They are that types of fixed assets that can not been seen, touched or felt. Example; Copyrights, Patents, Trademarks, etc.

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 CURRENT ASSETS: They are assets that are reasonably being expected to be resale within one accounting period. That is, they can be easily converted into cash within a short period of time.

 LIABILITIES: These are the amount or resources owned by the business to outsiders for the supply of goods and services. They are classified into two (2). They are; Long term liabilities and short term or current liabilities. Examples of liabilities are; bank loans, bank overdrafts, trade creditors, bills payables and owned, etc.

 LONG TERM LIABILITIES: The are the liabilities that are not payable within the next accounting period. Or liabilities which takes more than one year to be paid. Example; bank loan payable in two or more years, debenture, etc

 CURRENT LIABILITIES: These are the liabilities that are expected to be settled within one accounting or financial year. Example; creditors, short term loans, bank overdrafts, accrued expenses, etc.

 CAPITAL: this is the amount of resources use to start a business. That is, the amount of resources which the proprietor invested in the business.

Capital may take the form of cash from bank or the transfer of the ownership of some other assets such as Fixed assets by the owner (s), that has been transferred for the exclusive of the business. This makes capital liability to the business.

Capital have been classified into three (3) in accounting. They are; working capital, capital employed and capital owned.

 WORKING CAPITAL: It refers to the amount of capital or money, available to meet the day to day expenditure of the business.

It is calculated as; Current Assets less Current Liabilities.

 CAPITAL EMPLOYED: It is the total value of money or assets of a business that is being used or invested in the business.

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It is calculated as; total Assets less total Liabilities.

 CAPITAL OWNED: It refers to the original amount which a person entered in a business with plus any profit retained in the business less any loss made.

 DRAWINGS: They are cash or goods and services drawn by the proprietors of a business for private use. It reduces capital of a business.

EFFECTS OF DRAWINGS ON THE BUSINESS

 It leads to decrease in cash in hand and cash at bank.

 It leads to decrease in stock of goods available for sale.

 It leads to reduction of capital of the business.

 It also reduces the use of fixed assets that would have helped to generate resources.

ACTIVITIES THAT WILL BE RECORDED

 Taking stocks of goods for private or personal use.

 The use of the firm’s cash for private or personal use.

 Services rendered by the business for the owner.

 Personal use of the business fixed assets by the owner.

BALANCE SHEET PRESENTATION

The balance sheet can be presented in two ways. That is the vertical presentation and the horizontal presentation.

1. VERTICAL PRESENTATION.

2. HORIZONTAL PRESENTATION.

EFFECTS OF BUSINESS TRANSACTIONS ON THE ACCOUNTING EQUATION

BUSINESS TRANSACTION: Is an event that takes place in a business. It involves the transfer of money and must be capable of being expressed in terms of money. Any transaction that takes place in a business has either an increase or decrease effects on the accounting equation.

TRANSACTION

EFFECT ON THE BALANCE SHEET

1. When capital is introduced into the business.

 Liability (capital) will increase

 Assets (cash) will increase

2. Started business with cash or cheque

 Increase in capital

 Increase in assets (cash or cheque)

3. Bought motor van for cash

 Increase in asset (motor van)

 Decrease in asset (cash)

4. Bought motor van on credit

 Increase in asset (motor van)

 Increase in liabilities (creditors)

5. Pay creditors by cheque

 Decrease in asset (bank)

 Decrease in liability (creditors)

6. Obtain loan from bank

 Increase in assets (cash)

 Increase in liability (loan)

7. When expenses are incurred

 Decrease in asset (cash)

 Decrease in liability (net profit)

8. When revenue is received

 Increase in asset (cash)

 Increase in liability (net profit)

9. When goods are sold for cash

 Increase in asset (cash)

 Decrease in asset (stock)

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10. When goods are sold on credit

 Increase in assets (debtors)

 Decrease in asset (stock)

11. When debtors settle their debts

 Increase in asset (cash)

 Decrease in assets (debtors)

12. Paid creditors by cheque

 Decrease in liability (creditors)

 Decrease in asset (bank)

13. Paid expenses by cash

 Decrease in cash

 Decrease in expenses

14. Bought land by cheque

 Increase in asset (land)

 Decrease in asset (bank)

15. Bought goods on credit

 Increase in liability (creditors)

 increase

BANK RECONCILIATION STATEMENT

It is a statement prepared by a bank customer on the receipt of a bank statement, showing the differences between entries in the cash book and the bank statement, with a view to reconciling the two balances.

BANK STATEMENT

It is a statement or document sent by a bank to its customers periodically or on request detailing or showing the transactions between the bank and the customer over the period specified in the statement.

REASONS FOR THE DIFFERENCES BETWEEN BANK STATEMENT AND CASH BOOK

 UNCREDITED CHEQUES: These are cheques received from customers or trade debtors immediately debited to the cash book by the customer but not credited by the bank. Or, cheques deposited into the bank but which have not been cleared by the receiving bank so as to credit the customer’s account.

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 UNPRESENTED CHEQUES: These are cheques issued to suppliers which is credited to the cash book by the customer but have not been presented to the banker for payment. Or, cheques issued which are yet to be presented for payment by the beneficially at the bank.

 STANDING ORDER: These are instructions from a customer to his or her bank to make certain regular payment out of his or her account to a named person or an organization.

 DISHONOURED CHEQUE: These are cheques earlier deposited into the bank which are returned unpaid to the depositor.

 BANK CHARGES: This is an amount charged by a bank on its customers who keeps current account for service rendered. Or, they are the deductions by the bank representing charges for its services to the customer. These includes the cheque book cost, commission on transaction (COT), Automated Teller Machine (ATM) and other expenses or charges.

 CREDIT TRANSFER: These are the payment made directly into a customer account in the bank by a third party.

 ERRORS IN THE CASH BOOK OR BANK STATEMENT: These are errors arising in the cash book or bank statement during it preparation. Example; Transposition of figure’s that is, overcast and undercast.

 DIRECT DEBIT: This is an arrangement whereby a debtor’s account is debited with a sum of money at the instance of a creditor with the account owners.

ADJUSTED CASH BOOK OR REVISED CASH BOOK OR REDRAFTED CASH BOOK

The revised cash book is prepared to act as a corresponding entry for all items shown In the bank statement but not entered in the cash book.

BOOK KEEPING

Is defined as the act of recording business transaction in terms of money in a regular and systematic manner.

IMPORTANCE OF BOOK KEEPING

 It serves as a permanent record of all the business transactions

 It serves as an evidence or reference for any future eventualities.

 It helps in the identification of the debtors and creditors of the organization.

 It helps in determining the economic resources of the organization.

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 It helps or assist in the preparation of financial statements.

USERS OF ACCOUNTING INFORMATION

 MAGERS: They are in charge of the day to day administration of the business. They are responsible for the overall performance of the business.

REASON WHY MANAGEMENT ARE INTERESTED IN BOOK KEEPING

 TO SET TARGET: In order for an organization to perform well, it needs a well-structured target. Target serves as a periodic aim of every organization. In order for managers to come out with a good target, they may require some relevant information and the book keeping serves as the most appropriate source for that relevant information.

 EVALUATION OF PAST PERFORMANCE: Book keeping serves as the best source where managers can get the records of the previous performance or activities. At the end of every financial year, managers have to sit down and evaluate the performance of the previous year. This helps the organisation to know where improvement is needed and where more resources are to be invested.

 PROFITABILITY OF THE FIRM: Good book keeping helps managers to come out with the true profit of the firm. This is because, book keeping takes all the transactions that takes place in the previous and current year. These transactions include all incomes and expenses. So, when all the transactions related to income and expenditure are available, determining the profit of the organization won’t be problem.

 CUSTOMERS/ DEBTORS: These are the people or institution that buys from the organization. They are often concern with the product, prices, quality, reliability, delivery date, etc. customers may also like to know if the business is financially sound in order to have confidence in them.

REASON WHY DEBTORS ARE INTERESTED IN PROPER BOOK KEEPING OF THE FIRM

 CONFIDENCE: Customers are interested in the proper book keeping of the organization because it provides them with the necessarily information that they need to know about the business. This information helps them to know whether the firm is financially sound or not. If they get to know the financial status of the organization, it helps the customers to

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decide whether they should continue dealing with the firm or they should quit and find a new firm.

 GUARANTEE OF SECURITY OF SUPPLY: Customers are interested in the firms book keeping because they always want to be sure if the company is reliable or dependable. Customers always wants the firm to supply them with their needs on time. The book keeping provides customers with information such as raw materials available, semi-finished goods and finished goods. This information helps customers to know when goods are manufactured, when goods are ready and when orders can be placed.

 GOVERNMENT: Government agencies such as the Internal Revenue Service, Value Added Tax (VAT) may need financial information from the firm to determine how much tax the firm needs to pay periodically.

IMPORTANCE OF BOOK KEEPING TO GOVERNMENT

As we all know, government impose tax on the profit of the firm. Firms that do not keep records can easily undercast their profit in order to pay less tax. The proper booking keeping is importance to the firm because it helps the government to calculate the true profit of the firm and charge tax accordingly.

PARTNERSHIP ACCOUNTING

Partnership is defined as the association of two or more individuals carrying on business jointly for the purpose of making profit.

The minimum and the maximum membership of partnership are 2 and 20 respectively.

PARTNERSHIP AGREEMENT DEEDS

The partnership deeds or agreement is a written agreement drawn up by partners for the purpose of carrying out the business. Or, it is a document that spells out the rules and regulations binding the partners.

The agreements include:

1. Capital contribution by each partner.

2. The profit and loss sharing ratio.

3. The rate of interest on capital.

4. The rate of interest on drawings if any.

5. Whether salaries should be paid to partners for services rendered.

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6. The rate of interest to be paid on partner’s loan.

7. Conditions for admission for new partner (s).

8. Arrangement on retirement, death or resolution.

THE MAIN ACCOUNTS UNDER PARTNERSHIP ACCOUNT

1. CAPITAL ACCOUNT: It is the amount contributed (whether cash or other assets) by each partner as a capital shall be credited to his capital account and any additional capital introduced. Any withdrawal of capital is debited.

There are two (2) types of capital accounts in partnership.

 FIXED CAPITAL ACCOUNT: This account records only capital transactions. Thus, capital introduction, additions and withdrawals.

Capital introductions are credited to the accounts whiles while current account will be maintained which contains interest on capital, drawings, interest on drawings, partners salary or commission.

 FLUCTUATING CAPITAL ACCOUNT: This is the capital account which records all transactions of capital nature as well as items that appears in the current account such as interest on capital, interest on drawings, hare of profit or losses, partners salary/commission etc. The balances on this account continue to change from year to year.

2.CURRENT ACCOUNT: The partners current account records items of recurring in nature which relates to partners such as drawings, interest on capital, interest on salary/commission, share of profit and losses, etc.

It is credited with; salary/ commission, interest on capital, interest on loan, share of profit.

It is debited with; drawings, interest on drawings, share of losses.

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A debit balance on the current account indicates that the partner has overdrawn his account.

PROFIT AND LOSS APPROPRIATION ACCOUNT

A partnership firm prepares this account to distribute the profit or loss in accordance with the partnership deed or laid down rules when there is no partnership deeds or agreement.

This account shows in details how the profit or loss for the year is shared between or among partners. This account comes after the preparation of the net profit or loss account.

F

FEATURES OF APPROPRIATION ACCOUNT

 It is a nominal account.

 It is an account in which the profit or loss of the partners are distributed.

 It shows the net profit or loss brought down for the period.

 It shows interest on partners drawings.

 It shows partner (s) salary for the period.

 It shows partners (s) commission for the period.

 It shows interest on partner (s) capital.

BALANCE SHEET

The preparation of fixed assets, current assets and current liabilities of the balance sheet.

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In this balance sheet, the capital side shows two section:

 Capital account

 Current account

FORMAT

ACCOUNTING FOR NOT FOR PROFIT MAKING ORGANIZATION

These are non-trading organizations that are formed mainly for the purpose of promoting members interest other than making profit. Clubs and societies are organizations of people with common interest and purpose.

For the purpose of meeting the needs of the club or society, some dues, collection, tithes, fees, etc. and basic expenditure may be part of their activities. These monies will have to be accounted for no matter how much may be involved.

PURPOSE OR FEATURES OF CLUBS AND SOCITIES

 To promote certain activities that may be of interest to members.

 To harmonize people in the sense of belongingness.

 To raise funds to support activities of the club.

 To help and support some communities.

 To support some individual members.

SOURCE OF FUNDS TO CLUBS AND SOCIETIES

 ACCUMULATED FUNDS: This refers the capital of the clubs, societies and other not for profit making organizations.

It may be computed by preparing statement of affairs for the clubs or societies.

 ENTRANCE FEE: This refers to the amount of money paid by new members when joining the club. Entrance fee may be referred to as registration fees since these fees must be paid before a prospective member is fully registered as a member.

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 DONATIONS: Donations are gift to or from the clubs or societies. The clubs may receive donations either in cash or in kind from benevolent societies, groups of persons, individuals, etc.as a way of supporting the activities of the club.

On the other hand, the club can also give out donations to the society or group as it may deem fit.

 SUBSCRIPTION: It is a regular contribution made by members of clubs and societies or not for profit making organization.

Subscription is the main source of income for such organizations. They are in the form of dues, fees, offering etc. to finance clubs and societies activities.

Subscriptions are supposed to be paid on a specific date.

Subscriptions whether paid or not paid must be brought down into the books of account since they will definitely be paid. In recording subscriptions, I the books, we must differentiate the following:

 SUBSCRIPTIONS IN ADVANCE: This is the sum of money paid by the members of a club or association representing their dues for the forth coming years. It is current liability to the club in the balance sheet.

 SUBSCRIPTION IN ARREARS: This is the sum of money due for members for a particular year but remains unpaid for the year. It is treated in the balance sheet as current assets.

SUBSCRIPTION ACCOUNT

ACCOUNTING FOR INCOMPLETE RECORDS

Incomplete records are accounting records kept by an organization which do not follow or conform to the double entry system of book keeping. Thus, they are a form of record keeping that do not allow for adequate preparation of the financial statement.

That is, the information given by the organization or firm is inadequate for the preparation of final account.

PREPARATION OF FINAL ACCOUNTS FROM A SET OF INCOMPLETE RECORDS

In order to prepare final accounts, the following workings must be undertaken:

 Prepare the statement of affairs to ascertain the opening capital.

 The control accounts must be prepared to obtain credit sales and credit purchases.

 Total expenses and revenue account must be prepared to ascertain the amount transferred to profit and loss account.

 The cash book and the bank summary are also drawn to ascertain the closing cash or bank balance or cash drawings or amount paid to creditors or amount received from creditors.

 Prepare the trading, profit and loss account and the balance sheet.

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COURSE PEDAGOGY

It took me five (5) weeks to complete this project. The course evolved around 10 most important fundamentals of accounting. The certification took place over a period of 5 weeks and a total of 50 hours. Each unit was made in a way that it covers almost everything in the topic introduced. The teaching was spanked via video sequences with precise explanations of the subject covered. In watched 495 different videos. Video sequences generally varied between 3 and 24 minutes. We had a total assignment of 10 with countless quizzes.

To make sure that the message got through or that the message got across, the interface presented us with an evaluation test suite. The tests appeared at the end of each video sequence; they were in the form of multiple-choice questions. For example, after each video session of unit 1 we were subjected to a mini comprehension test, then after the end of unit 1 we were also subjected to a global evaluation test on the unit in question, that is, is said unit 1 in our example.

For the entire certification we had

LEARNING FROM COURSE In fact, this MOOC courses has really helped me. As a student of Economics, I decided to acquire different knowledge in the filled of accounting. As it stands now, I have been able to cover a lot of topics in accounting. I have covered some relevant topics like the fundamentals of accounting, which includes the introduction to accounting and its equations, the golden principle of accounting, etc. I was introduced to the formats of many accounts and formats of many financial statements. Which includes; the trial balance, journals, ledgers, trading and profit accounts, balance sheet, income and expenditure accounts, the suspense accounts, etc. The most interesting part of this courses was that it was taught with the help of excel. So, I was taught how to create the above-mentioned accounts with the help of excel. So, I did not just acquire knowledge but I have gained skills in excel too.

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CONCLUSION

To conclude with, Excel is crafts with templates for creating budgets, cash-flow statements and profit-and-loss statements, balance sheets, journals, ledgers which are some of the most basic and important documents used in financial accounting. Moreover, we can download additional complex budgeting and statement templates from the Office website, or we can purchase specific templates from third-party salespersons and install these in the application. the use of excel in accounting is so simple to the extent that If we want to create a complex or custom budgets or financial statements, we can either modify or tailor an existing template and re-use its elements, or create one from scratch using the functionality built into Excel.