Professional Documents
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PRESENTS A Training Course in Fundamentals of Accounting One for Micro NEBBI TOWN 13TH 17TH FEB 2006
Trainers and Consultants Kisaka and Company Certified Public Accountants Plot 77 Buganda Road Kisaka@africaonline.co.ug
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What is an accounting policy? Accounting bases that have been selected by management to be appropriate for the organisation.
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What is an Accounting Base? Methods developed for applying accounting concepts/ principles to financial transactions They are accounting treatments
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Accounting Standards vs Accounting policy? Standard overrides (Standards prevail over policy)
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Accounting principles
Two categories of accounting principles Fundamental Accounting principles Other Accounting principles
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Accounting principles
Two Fundamental Accounting principles/concepts Going Concern concept Accrual concept
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Accounting principles
Other Accounting Concepts Money Measurement Concept Business Entity Concept Prudence Concept Consistency Concept Dual Aspect Concept Matching Concept
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Accounting principles
Other Accounting Concepts Substance over form Concept Realisation Concept Materiality concept Relevance Concept
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Overview of FFAP 1-Introduction Recording of Transactions in a typical MFI Cash Books Records cheque and cash transactions Format of cash book Two column cash book Petty cash book
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Overview of FFAP 1-Introduction Recording of Transactions in a typical MFI Detailed recording is done in subsidiary ledgers Subsidiary ledgers include Debtors ledger, Creditors ledger, Private ledger and Cash Book
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Overview of FFAP 1-Introduction Recording of Transactions in a typical MFI Ledgers can either: Be T accounts Or vertical formats with running balances Balancing/ closing off accounts
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Overview of FFAP 1-Introduction Accounting treatment for key transactions in MFIs Customer Deposits Necessary Books Customer withdrawals
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Dr Cr 2,000,000 4,000,000
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Dr Cr 4,000,000 8,000,000
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Dr Cr Salaries 8,000,000
Dr Cr 2,000,000 10,000,000
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Rent
900,000
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10 1
10 3
11 0
11 1
11 2
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12 0
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12 4
12 5
12 6
12 7
12 8
12 9
13 0
13 1
13 3
13 5
13 6
13 7
13 8
13 9
Dr (Shs)
Balance(Shs) 80,000,000 60,000,000 140,000,000 32,000,000 108,000,000 40,000,000 68,000,000 30,000,000 38,000,000 24,000,000 62,000,000
Cr (Shs)
14 0
14 1
14 2
14 3
Total
134,000,000
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14 5
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11,000,000
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14 9
Un credited cheques:
4,000,000
55,200,000 145,000,000
15 0
4,000,000
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15 2
15 3
15 5
15 6
16 0
16 2
16 4
16 7
16 8
17 5
17 8
18 6
18 7
19 0
19 3
19 5
19 7
19 9
20 0
20 2
20 5
21 4
21 5
21 7
21 9
22 8
23 2
23 4
23 7
23 9