Podcast
Questions and Answers
Which financial statement includes a profit and loss appropriation account?
Which financial statement includes a profit and loss appropriation account?
What is an appropriation that gives recognition to partners contributing different amounts of capital to the firm?
What is an appropriation that gives recognition to partners contributing different amounts of capital to the firm?
Which of the following is not an appropriation in the Profit and Loss Appropriation Account?
Which of the following is not an appropriation in the Profit and Loss Appropriation Account?
What is typically found in the Statement of Financial Position for each partner?
What is typically found in the Statement of Financial Position for each partner?
Signup and view all the answers
What is an appropriation that is not to be confused with salaries paid to employees?
What is an appropriation that is not to be confused with salaries paid to employees?
Signup and view all the answers
What is an appropriation that is related to a partner's drawings?
What is an appropriation that is related to a partner's drawings?
Signup and view all the answers
What is the consideration for shares issued by a company?
What is the consideration for shares issued by a company?
Signup and view all the answers
What happens in a Capitalization/Bonus/Scrip Issue?
What happens in a Capitalization/Bonus/Scrip Issue?
Signup and view all the answers
What is the purpose of circulating a Prospectus?
What is the purpose of circulating a Prospectus?
Signup and view all the answers
What is a Rights Issue?
What is a Rights Issue?
Signup and view all the answers
What is the maximum number of shares that a company can issue?
What is the maximum number of shares that a company can issue?
Signup and view all the answers
When are shares paid for?
When are shares paid for?
Signup and view all the answers
What is Private Placement?
What is Private Placement?
Signup and view all the answers
What is Initial Public Offer?
What is Initial Public Offer?
Signup and view all the answers
What is the unrealized profit amount?
What is the unrealized profit amount?
Signup and view all the answers
What is the maximum number of persons allowed in a partnership in Ghana?
What is the maximum number of persons allowed in a partnership in Ghana?
Signup and view all the answers
What is the purpose of preparing a profit and loss appropriation account?
What is the purpose of preparing a profit and loss appropriation account?
Signup and view all the answers
What is the closing balance of the income surplus?
What is the closing balance of the income surplus?
Signup and view all the answers
What is the total capital financed by?
What is the total capital financed by?
Signup and view all the answers
What is the amount of dividend paid out?
What is the amount of dividend paid out?
Signup and view all the answers
What is a partnership?
What is a partnership?
Signup and view all the answers
What is the purpose of preparing a current account?
What is the purpose of preparing a current account?
Signup and view all the answers
What is the debit account when cash or cheque is received on application?
What is the debit account when cash or cheque is received on application?
Signup and view all the answers
What is the credit account when consideration other than cash is received?
What is the credit account when consideration other than cash is received?
Signup and view all the answers
What happens to the application amount received in respect of shares allotted at the allotment stage?
What happens to the application amount received in respect of shares allotted at the allotment stage?
Signup and view all the answers
What is the debit account when there is a refund of money for rejected applications?
What is the debit account when there is a refund of money for rejected applications?
Signup and view all the answers
What happens to excess funds for other stages (partly successful applicants) at the allotment stage?
What happens to excess funds for other stages (partly successful applicants) at the allotment stage?
Signup and view all the answers
What is the debit account when allotment monies (cash/cheque) due on shares issued are received?
What is the debit account when allotment monies (cash/cheque) due on shares issued are received?
Signup and view all the answers
What is the credit account when there is a transfer to the stated capital at the allotment stage?
What is the credit account when there is a transfer to the stated capital at the allotment stage?
Signup and view all the answers
Who is the author of the content provided?
Who is the author of the content provided?
Signup and view all the answers
What is the primary purpose of business organizations?
What is the primary purpose of business organizations?
Signup and view all the answers
What type of organizations are not intended to be profit-oriented?
What type of organizations are not intended to be profit-oriented?
Signup and view all the answers
When making adjustments for accruals and prepayments, what is being prepared?
When making adjustments for accruals and prepayments, what is being prepared?
Signup and view all the answers
What is the normal assumption when the missing amount is in respect of payments?
What is the normal assumption when the missing amount is in respect of payments?
Signup and view all the answers
What is the likely scenario when payments are more than receipts?
What is the likely scenario when payments are more than receipts?
Signup and view all the answers
What is the purpose of this session?
What is the purpose of this session?
Signup and view all the answers
What type of organizations provide services to the public or its members?
What type of organizations provide services to the public or its members?
Signup and view all the answers
What can always be obtained from the bank in respect of bank related transactions?
What can always be obtained from the bank in respect of bank related transactions?
Signup and view all the answers
Study Notes
Partnership Accounts
- Incorporated Private Partnership Act of 1962 (Act 152) governs partnerships in Ghana.
- A partnership is an association of two or more individuals carrying on business jointly for the purpose of making profits.
- Maximum number of partners is 20.
Characteristics of Partnership
- Unrestricted voting rights
Financial Statements of a Partnership
- Income statement: profit and loss appropriation account
- Statement of Financial Position: capital accounts for each partner and current accounts for each partner
Profit and Loss Appropriation Account
- Typical appropriations:
- Interest on capital (%)
- Salary (annual)
- Interest on drawings
- Interest on current accounts
- Share of profit and loss
Differences in Financial Statements
- Partnership financial statements differ from company financial statements
Issuance of Shares
- A company may issue shares up to the total number authorized by its regulations (Section 41)
- Shares may be issued at such times and for such consideration as the company may determine
- Shares shall be issued for valuable consideration and paid for in cash, except otherwise agreed (Section 42)
Forms of Issuing Shares
- Initial Public Offer (IPO)
- Private Placement
- Capitalization/Bonus/Scrip Issue
- Rights Issue
Procedure for Issuance of Shares
- Invitation to the public to apply for shares through a prospectus and advertising
- Application stage: application account is debited, and bank/cash account is credited
- Allotment stage: application account is credited, and stated capital account is debited
- Refund of money for rejected applications: application account is credited, and bank/cash account is debited
Incomplete Records and Missing Figures
- Drawings/Cash Received/Cash Paid: missing figure is likely to be cash receipts from customers if payments are more than receipts
Accounting for Non-Profit Making Organizations
- Non-profit organizations exist to provide services to the public or its members, rather than to make profits
- Accounting for NPOs differs from accounting for profit-oriented organizations
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
This quiz is about accounting, specifically income statement, net profit, and dividend calculation. It is designed for students of Accounting 50.