We have to note that accounting information varies in its usefulness. This is because for a retail store with five departments, it is obviously better to know that the store has made N10,000 gross profit than to be completely ignorant of this fact. The figure of N10,000 gross profit unfortunately does not give the owners …
With a great many private limited companies, the directors are the only shareholders of the company, or alternatively the directors hold the great majority of the shares. In such circumstances, it is natural that the relationships between the company and the directors are rather more informal than in public companies. In these cases therefore, it …
The balance sheet must conform to the regulations specified in the companies’ Act. Not that: (1) Fixed assets should normally be shown either at cost or alternatively at some other valuation. In either case, the meth chosen should be clearly stated. (2) The total depreciation from date of purchase to the date of the balance …
Next under the profit and loss account is a Section called as it would also be in a partnership the profit and loss appropriation account. The Net profit is brought down from the profit and loss account, and in the appropriation account is shown the manner in which the profits are to be appropriation that …
This account are those purely for internal use by the company. The trading account of a limited company is no different from that of a sole trader or of a partnership. The profit and loss account also follows the same pattern as those of partnerships or sole trader except for some types of expenses, which …
There are two classes of company, the private company and. the publics company. In fact, private companies outnumber public companies by a considerable number. A private company is one which has a minimum membership of two and fulfills the following conditions (a) It restricts the right to transfer its shares. (b) It limits the number …