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TOPIC 7: FINANCIAL STATEMENTS | B/KEEPING FORM 3

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General Purpose Financial Statements Describe general purpose financial statements Financial Statements Definition: Financial statements are a collection of reports about an organization’s financial results, financial condition, and cash flows. They...

TOPIC 6: BAD DEBTS | B/KEEPING FORM 3

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The Bad Depts Account Show the bad debts account What are bad debts? The term bad debts usually refers to accounts receivable (or trade accounts receivable) that will not be...

TOPIC 5:DEPRECIATION | B/KEEPING FORM 3

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Cost of a Fixed Asset Determine the cost of a fixed asset Depreciation is the systematic reduction in the recorded cost of a fixed asset. Examples of fixed...

TOPIC 4: CAPITAL EXPENDITURE AND REVENUE EXPENDITURE | B/KEEPING FORM 3

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Meaning of Capital Expenditure and Revenue Expenditure Give the meaning of capital expenditure and revenue expenditure Capital Expenditure Payments made in cash or cash equivalents over a period...

TOPIC 3: ADJUSTMENTS | B/KEEPING FORM 3

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Adjusting entries are accounting journal entries that convert a company’s accounting records to theaccrual basis of accounting.An adjusting journal entry is typically made just...

TOPIC 2: CORRECTION OF ERRORS | B/KEEPING FORM 3

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TOPIC 2: CORRECTION OF ERRORS | B/KEEPING FORM 3 Wrong Entries Identify wrong entries An accounting error is a non-fraudulent discrepancy in financial documentation. The term is...