This document provides an overview of year-end adjustments and provisions for financial reporting. It discusses the rationale for provisions including typical provisions like provisions for bad and doubtful debts. It provides guidelines for classifying and provisioning loans based on days past due. It also covers accounting treatments for prepayments, accrued expenses, balancing off accounts, and preparing a trial balance. Key steps in the accounting process like debiting expenses and crediting provisions are summarized.
Final account trading account pl acc balance sheetVJTI Production
The document provides details about the final accounts process in accounting. It explains that final accounts include the preparation of trading, profit & loss, and balance sheet statements. These statements are prepared from the trial balance to determine the profit/loss for the year and the year-end financial position. The document outlines the key components of the trading account, profit & loss account, and balance sheet, and provides examples of their format and various adjustments made in their preparation.
This document provides instructions for handling accounts with incomplete records or single entry bookkeeping systems. It discusses two approaches - 1) converting the incomplete records into final accounts and 2) calculating profit. For the conversion approach, it outlines seven rules, including gathering all information, preparing necessary accounts like debtors/creditors, old and new balance sheets, trading and profit & loss accounts. It notes the use of gross profit ratios to calculate missing sales or cost values. The rules also cover handling missing cash/bank values and tallied accounts. It emphasizes using all given information and ratios to calculate missing values.
Chapter 8: Capital Financing for Health Care ProvidersNada G.Youssef
This document discusses various methods of capital financing for health care providers, including equity financing through retained earnings or stock issuance, and debt financing through loans, bonds, and lease agreements. It provides examples of calculating bond valuation and rates of return, as well as amortization schedules for loans. Key terms defined include debt service coverage, tax-exempt versus taxable bonds, and operating versus capital leases.
This document contains an accounting and finance terms quiz with 15 multiple choice questions testing knowledge of key concepts like the accounting equation, assets, liabilities, revenue, expenses, profit, loss, budgets, and accountants. It also provides the answers to the quiz questions. Key terms covered include assets, liabilities, owner's equity, revenue, expenses, profit, loss, accountant, budget, and certified public accountant.
This document contains an assignment for an Intermediate Accounting I course. It includes multiple choice questions and exercises analyzing accounting transactions and financial statements.
The questions cover topics such as GAAP, the FASB standard-setting process, elements of financial statements, and accounting assumptions and principles. Correct answers are provided for the multiple choice and transaction analysis questions.
The document provides an overview of key concepts in the first few chapters of an Intermediate Accounting textbook and assesses the student's understanding through questions requiring identification and explanation of accounting standards, transactions, and financial statement elements.
The document provides information about the final steps in the accounting process which include preparing final accounts such as trading account, profit and loss account, and balance sheet. It explains that these final accounts are needed to determine the profit or loss for the year and the year-end financial position of the business. The document then goes into detail about how to prepare each of these final accounts, the key components that make up each account, and various adjustments and accounting entries needed to accurately capture the financial activities and position of the business.
The document outlines topics covered in accounting and finance. It discusses 6 main sections: 1) financial accounting including bookkeeping, journal, ledger, trial balance and final accounts. 2) Corporate accounting covering issues like shares, debentures, amalgamation. 3) Cost accounting such as cost sheets, material and labour costing. 4) Management accounting including ratio analysis, working capital and cash flows. 5) Statistics measuring central tendency, dispersion, correlation and indexes. 6) Operations research covering transportation, queuing theory, linear programming and network analysis.
The document provides an overview of financial statements, including balance sheets, cash flow statements, and notes. It explains that a balance sheet summarizes a company's financial position at a point in time by listing assets, liabilities, and shareholder equity. It also describes the major components of each type of financial statement and provides sample notes to the financial statements that give additional context and details. The cash flow statement tracks cash inflows and outflows from operating, investing, and financing activities over a period of time. Understanding these statements is important for assessing a company's financial strength and cash flows.
Final account trading account pl acc balance sheetVJTI Production
The document provides details about the final accounts process in accounting. It explains that final accounts include the preparation of trading, profit & loss, and balance sheet statements. These statements are prepared from the trial balance to determine the profit/loss for the year and the year-end financial position. The document outlines the key components of the trading account, profit & loss account, and balance sheet, and provides examples of their format and various adjustments made in their preparation.
This document provides instructions for handling accounts with incomplete records or single entry bookkeeping systems. It discusses two approaches - 1) converting the incomplete records into final accounts and 2) calculating profit. For the conversion approach, it outlines seven rules, including gathering all information, preparing necessary accounts like debtors/creditors, old and new balance sheets, trading and profit & loss accounts. It notes the use of gross profit ratios to calculate missing sales or cost values. The rules also cover handling missing cash/bank values and tallied accounts. It emphasizes using all given information and ratios to calculate missing values.
Chapter 8: Capital Financing for Health Care ProvidersNada G.Youssef
This document discusses various methods of capital financing for health care providers, including equity financing through retained earnings or stock issuance, and debt financing through loans, bonds, and lease agreements. It provides examples of calculating bond valuation and rates of return, as well as amortization schedules for loans. Key terms defined include debt service coverage, tax-exempt versus taxable bonds, and operating versus capital leases.
This document contains an accounting and finance terms quiz with 15 multiple choice questions testing knowledge of key concepts like the accounting equation, assets, liabilities, revenue, expenses, profit, loss, budgets, and accountants. It also provides the answers to the quiz questions. Key terms covered include assets, liabilities, owner's equity, revenue, expenses, profit, loss, accountant, budget, and certified public accountant.
This document contains an assignment for an Intermediate Accounting I course. It includes multiple choice questions and exercises analyzing accounting transactions and financial statements.
The questions cover topics such as GAAP, the FASB standard-setting process, elements of financial statements, and accounting assumptions and principles. Correct answers are provided for the multiple choice and transaction analysis questions.
The document provides an overview of key concepts in the first few chapters of an Intermediate Accounting textbook and assesses the student's understanding through questions requiring identification and explanation of accounting standards, transactions, and financial statement elements.
The document provides information about the final steps in the accounting process which include preparing final accounts such as trading account, profit and loss account, and balance sheet. It explains that these final accounts are needed to determine the profit or loss for the year and the year-end financial position of the business. The document then goes into detail about how to prepare each of these final accounts, the key components that make up each account, and various adjustments and accounting entries needed to accurately capture the financial activities and position of the business.
The document outlines topics covered in accounting and finance. It discusses 6 main sections: 1) financial accounting including bookkeeping, journal, ledger, trial balance and final accounts. 2) Corporate accounting covering issues like shares, debentures, amalgamation. 3) Cost accounting such as cost sheets, material and labour costing. 4) Management accounting including ratio analysis, working capital and cash flows. 5) Statistics measuring central tendency, dispersion, correlation and indexes. 6) Operations research covering transportation, queuing theory, linear programming and network analysis.
The document provides an overview of financial statements, including balance sheets, cash flow statements, and notes. It explains that a balance sheet summarizes a company's financial position at a point in time by listing assets, liabilities, and shareholder equity. It also describes the major components of each type of financial statement and provides sample notes to the financial statements that give additional context and details. The cash flow statement tracks cash inflows and outflows from operating, investing, and financing activities over a period of time. Understanding these statements is important for assessing a company's financial strength and cash flows.
The document discusses the closing process in accounting, which prepares accounts for the next period and resets temporary accounts to zero. It involves 4 steps: 1) closing revenue accounts to an income summary account, 2) closing expense accounts to the income summary account, 3) closing the income summary account to the owner's capital account, and 4) closing the withdrawals account to the owner's capital account. This results in a post-closing trial balance with zero temporary account balances and balances in permanent accounts ready for the next financial statements.
The document provides important information on various accounting topics:
1. It discusses the founders and sub-fields of accounting, accounting assumptions, accounting policies, and characteristics of financial statements.
2. Key areas of accounting such as bookkeeping, financial accounting, management accounting, and cost accounting are explained.
3. The characteristics and treatment of different types of expenditures like revenue, capital, and deferred revenue are summarized.
4. Concepts related to companies like types of companies, shares, debentures, redemption of shares, dividends, and accounting standards are covered at a high level.
The document discusses ratio analysis and financial statement analysis techniques for evaluating a company's profitability, liquidity, and solvency based on its balance sheet and income statement. It provides the financial statements of Elevation Sports, Inc. for May 31, 2004 to demonstrate calculating financial ratios to measure the company's performance in these three areas.
This document discusses various accounting adjustments that may be needed when preparing final financial statements. It explains that adjustments are required to ensure revenues and expenses are matched and recorded in the correct accounting period. Common adjustments mentioned include closing stock, outstanding expenses, prepaid expenses, accrued income, depreciation, bad debts, and provisions. Formulas and journal entries for recording different types of adjustments are provided.
Stu Ch04 Completing The Accounting Cycleguest441011
1) The document describes the accounting cycle and accrual accounting. It explains adjusting entries for unrecorded receivables, liabilities, prepared expenses, and unearned revenues.
2) The accounting cycle includes preparing financial statements and notes, and the closing process of closing revenue, expense, and dividend accounts to retained earnings.
3) Real and nominal accounts are closed in the accounting cycle to determine net income and retained earnings for the period.
This document discusses reconciliation between cost and financial accounts. It defines reconciliation as identifying reasons for differences in profits reported by cost versus financial accounts. Key points include definitions of cost and financial accounting, reasons for discrepancies like treatment of overhead absorption or depreciation, and methods of reconciliation like preparing a reconciliation statement or memorandum reconciliation account. The procedure of reconciliation involves determining reasons for disagreement and adjusting the base profit reported by one set of accounts to match the other set.
The document describes the accounting cycle and the use of a worksheet. It discusses how a worksheet allows accountants to make adjustments and prepare financial statements more easily and timely. The key steps in using a worksheet include: [1] preparing an initial trial balance, [2] entering adjustments, [3] extending adjusted balances to columns for the adjusted trial balance, income statement, and balance sheet, and [4] preparing financial statements from the worksheet columns. The worksheet is a temporary working paper and not a permanent accounting record.
Meaning
Purpose
Forms of presenting comparative statement
Comparative Balance Sheet
Advantage of comparative balance sheet
Format of comparative balance sheet
Illustration
Exercise
Comparative statements of profit & loss
Objective of comparative statement of profit & loss
Format of comparative statement of profit & loss
Illustration
Exercise
This document summarizes different types of financial statement analysis including percentage, ratio, horizontal, and vertical analysis. It discusses various liquidity, profitability, efficiency, and solvency ratios that are used in financial statement analysis such as current ratio, acid test ratio, profit margin, return on assets, inventory turnover, and debt ratio. The document provides examples of how to calculate each type of ratio using financial data from sample company statements.
This document provides an introduction to HOA finance, including defining key accounting concepts and reports. It explains that accounting communicates financial information to homeowners and others. Key concepts covered include the balance sheet, income statement, budget, and reserve study. The balance sheet provides a snapshot of assets and liabilities at a point in time, while the income statement reports revenues and expenses over a period of time. The budget and reserve study are used for short-term and long-term planning, respectively. Maintaining proper financial oversight and transparency are important roles of the board and accountant.
This document provides an overview of basic accounting concepts and processes. It defines accounting as identifying, measuring, and communicating economic information to users for decision making. The key accounting processes described are collecting documents, posting journal entries, creating ledger accounts, preparing trial balances, making adjustments, and generating financial statements. Systems of accounting such as cash-basis and accrual-basis are also outlined. The document further explains accounting classifications, rules, equations, accounts, books, and financial statements.
5. accounting for management lecture 14 provisions & reservesNony Gupta
This document discusses provisions and reserves. It defines a provision as an amount written off or retained to provide for depreciation, renewal, or diminution in asset value where the liability amount cannot be determined accurately. Provisions are created for specific purposes like depreciation or bad debts. Reserves are amounts set aside from profits to meet unknown future liabilities or strengthen the company's financial position. Key differences are that provisions must be made even in loss years for known liabilities, while reserves are only created when profits exist and can be used flexibly.
The document discusses Google's self-driving car project. It describes how the cars can steer, accelerate, and stop autonomously using sensors like LIDAR and cameras to detect obstacles and artificial intelligence to process sensor data and determine driving actions. The cars have driven over 1 million miles with only minor accidents. While driverless cars could help avoid accidents and manage traffic, cybersecurity risks would need to be addressed to prevent hackers from interfering with vehicle control systems.
Reserves are portions of shareholders' equity set aside for specific purposes. There are several types of reserves including capital reserves, revenue reserves, and statutory reserves. Capital reserves cannot be distributed as dividends while revenue reserves can be. Statutory reserves are required by law. Reserves are used to purchase assets, pay legal settlements, and other expenses. Buybacks allow companies to repurchase their own shares from investors using free reserves or fresh issue proceeds. Bonus shares distribute additional shares to shareholders without payment using a company's retained earnings. Stock-based compensation provides employees shares or options, while earnings per share measures profit allocated to each share.
Sai teja madireddy gave a technical seminar on Google's driverless car at Audisanakra Institute of Technology. The presentation covered the history and development of Google's driverless car project, its key components including Google Maps, hardware sensors like LIDAR and video cameras, and artificial intelligence software. It was noted that Google's driverless cars have driven over 140,000 miles with only occasional human intervention required. The development of driverless car technology was concluded to help improve vehicle stability and safety by reducing human error in driving.
Techtalk. emerging technolgy. driverless carPurva Kini
This document discusses driverless cars and their technologies. It begins with an introduction noting that human error is the primary cause of traffic accidents and how technology could help. It then defines a driverless car as one that can drive itself from one point to another without a human driver. Sensors would detect traffic lights and the car's computer would control aspects like braking and navigation. Technologies like anti-lock brakes, cruise control and automated guided vehicle systems are discussed. Advantages include safety, increased road capacity and allowing drivers to rest. Disadvantages could include hackers interfering with routing or sensors failing. The conclusion is that driverless cars aim to minimize accidents through addressing human causes of collisions.
The document discusses Google's driverless car project, including its history starting in 2009, the key components like sensors and artificial intelligence that allow it to drive autonomously, and some of the technologies that enable functions like cruise control, parking assistance and collision avoidance. It provides details on how the car uses sensors and AI to navigate roads safely and get passengers to their destinations, as well as potential advantages like increased road capacity and safety and disadvantages around security issues.
This document provides an overview of topics related to accounting and finance for bankers, including partnership accounts, company accounts, balance sheet equations, and accounting in a computerized environment. It discusses key concepts such as types of partnerships, methods of calculating goodwill, final accounts for banking companies, asset classification, and the basics of computerized accounting systems.
The document discusses reserves, provisions, and the auditor's responsibilities regarding them. It defines reserves as amounts set aside out of profits that are not intended to meet existing liabilities or diminish asset values. Provisions are liabilities of uncertain timing or amount that are recognized when an outflow of resources is probable to settle a present obligation from a past event. The document provides guidance on measuring, using, and disclosing provisions according to accounting standards. It also distinguishes between reserves and provisions and discusses the various types of reserves like revenue, capital, sinking funds, and secret reserves. Finally, it outlines the auditor's responsibilities to evaluate the adequacy of provisions and ensure reserves are properly accounted for.
The document provides an overview of Google's driverless car technology. It describes the various sensors used in the car, including LIDAR, RADAR, video cameras, and a position estimator. The sensors gather information about the vehicle's environment and location. Artificial intelligence software integrates this sensor data and helps operate the vehicle without human assistance. The document discusses the history and development of driverless cars. It examines the components, working, advantages, disadvantages, and potential future applications and predictions for this emerging technology.
The document discusses Google's driverless car project. It describes how the car can steer, accelerate, and stop itself using sensors like LIDAR and cameras to detect obstacles and traffic conditions. The car's artificial intelligence analyzes data from Google Maps and sensors to determine how to drive safely. As of 2012, Google had 6 driverless cars that had traveled over 140,000 miles on public roads in Nevada with only occasional human intervention needed. Benefits include reduced accidents, easier traffic management, and increased road capacity. Potential risks include hacking and sensor failures.
The document discusses the results of a study on the effects of exercise on memory and thinking abilities in older adults. The study found that regular exercise can help reduce the decline in thinking abilities that often occurs with age. Older adults who exercised regularly performed better on cognitive tests than those who did not exercise regularly.
The document discusses the closing process in accounting, which prepares accounts for the next period and resets temporary accounts to zero. It involves 4 steps: 1) closing revenue accounts to an income summary account, 2) closing expense accounts to the income summary account, 3) closing the income summary account to the owner's capital account, and 4) closing the withdrawals account to the owner's capital account. This results in a post-closing trial balance with zero temporary account balances and balances in permanent accounts ready for the next financial statements.
The document provides important information on various accounting topics:
1. It discusses the founders and sub-fields of accounting, accounting assumptions, accounting policies, and characteristics of financial statements.
2. Key areas of accounting such as bookkeeping, financial accounting, management accounting, and cost accounting are explained.
3. The characteristics and treatment of different types of expenditures like revenue, capital, and deferred revenue are summarized.
4. Concepts related to companies like types of companies, shares, debentures, redemption of shares, dividends, and accounting standards are covered at a high level.
The document discusses ratio analysis and financial statement analysis techniques for evaluating a company's profitability, liquidity, and solvency based on its balance sheet and income statement. It provides the financial statements of Elevation Sports, Inc. for May 31, 2004 to demonstrate calculating financial ratios to measure the company's performance in these three areas.
This document discusses various accounting adjustments that may be needed when preparing final financial statements. It explains that adjustments are required to ensure revenues and expenses are matched and recorded in the correct accounting period. Common adjustments mentioned include closing stock, outstanding expenses, prepaid expenses, accrued income, depreciation, bad debts, and provisions. Formulas and journal entries for recording different types of adjustments are provided.
Stu Ch04 Completing The Accounting Cycleguest441011
1) The document describes the accounting cycle and accrual accounting. It explains adjusting entries for unrecorded receivables, liabilities, prepared expenses, and unearned revenues.
2) The accounting cycle includes preparing financial statements and notes, and the closing process of closing revenue, expense, and dividend accounts to retained earnings.
3) Real and nominal accounts are closed in the accounting cycle to determine net income and retained earnings for the period.
This document discusses reconciliation between cost and financial accounts. It defines reconciliation as identifying reasons for differences in profits reported by cost versus financial accounts. Key points include definitions of cost and financial accounting, reasons for discrepancies like treatment of overhead absorption or depreciation, and methods of reconciliation like preparing a reconciliation statement or memorandum reconciliation account. The procedure of reconciliation involves determining reasons for disagreement and adjusting the base profit reported by one set of accounts to match the other set.
The document describes the accounting cycle and the use of a worksheet. It discusses how a worksheet allows accountants to make adjustments and prepare financial statements more easily and timely. The key steps in using a worksheet include: [1] preparing an initial trial balance, [2] entering adjustments, [3] extending adjusted balances to columns for the adjusted trial balance, income statement, and balance sheet, and [4] preparing financial statements from the worksheet columns. The worksheet is a temporary working paper and not a permanent accounting record.
Meaning
Purpose
Forms of presenting comparative statement
Comparative Balance Sheet
Advantage of comparative balance sheet
Format of comparative balance sheet
Illustration
Exercise
Comparative statements of profit & loss
Objective of comparative statement of profit & loss
Format of comparative statement of profit & loss
Illustration
Exercise
This document summarizes different types of financial statement analysis including percentage, ratio, horizontal, and vertical analysis. It discusses various liquidity, profitability, efficiency, and solvency ratios that are used in financial statement analysis such as current ratio, acid test ratio, profit margin, return on assets, inventory turnover, and debt ratio. The document provides examples of how to calculate each type of ratio using financial data from sample company statements.
This document provides an introduction to HOA finance, including defining key accounting concepts and reports. It explains that accounting communicates financial information to homeowners and others. Key concepts covered include the balance sheet, income statement, budget, and reserve study. The balance sheet provides a snapshot of assets and liabilities at a point in time, while the income statement reports revenues and expenses over a period of time. The budget and reserve study are used for short-term and long-term planning, respectively. Maintaining proper financial oversight and transparency are important roles of the board and accountant.
This document provides an overview of basic accounting concepts and processes. It defines accounting as identifying, measuring, and communicating economic information to users for decision making. The key accounting processes described are collecting documents, posting journal entries, creating ledger accounts, preparing trial balances, making adjustments, and generating financial statements. Systems of accounting such as cash-basis and accrual-basis are also outlined. The document further explains accounting classifications, rules, equations, accounts, books, and financial statements.
5. accounting for management lecture 14 provisions & reservesNony Gupta
This document discusses provisions and reserves. It defines a provision as an amount written off or retained to provide for depreciation, renewal, or diminution in asset value where the liability amount cannot be determined accurately. Provisions are created for specific purposes like depreciation or bad debts. Reserves are amounts set aside from profits to meet unknown future liabilities or strengthen the company's financial position. Key differences are that provisions must be made even in loss years for known liabilities, while reserves are only created when profits exist and can be used flexibly.
The document discusses Google's self-driving car project. It describes how the cars can steer, accelerate, and stop autonomously using sensors like LIDAR and cameras to detect obstacles and artificial intelligence to process sensor data and determine driving actions. The cars have driven over 1 million miles with only minor accidents. While driverless cars could help avoid accidents and manage traffic, cybersecurity risks would need to be addressed to prevent hackers from interfering with vehicle control systems.
Reserves are portions of shareholders' equity set aside for specific purposes. There are several types of reserves including capital reserves, revenue reserves, and statutory reserves. Capital reserves cannot be distributed as dividends while revenue reserves can be. Statutory reserves are required by law. Reserves are used to purchase assets, pay legal settlements, and other expenses. Buybacks allow companies to repurchase their own shares from investors using free reserves or fresh issue proceeds. Bonus shares distribute additional shares to shareholders without payment using a company's retained earnings. Stock-based compensation provides employees shares or options, while earnings per share measures profit allocated to each share.
Sai teja madireddy gave a technical seminar on Google's driverless car at Audisanakra Institute of Technology. The presentation covered the history and development of Google's driverless car project, its key components including Google Maps, hardware sensors like LIDAR and video cameras, and artificial intelligence software. It was noted that Google's driverless cars have driven over 140,000 miles with only occasional human intervention required. The development of driverless car technology was concluded to help improve vehicle stability and safety by reducing human error in driving.
Techtalk. emerging technolgy. driverless carPurva Kini
This document discusses driverless cars and their technologies. It begins with an introduction noting that human error is the primary cause of traffic accidents and how technology could help. It then defines a driverless car as one that can drive itself from one point to another without a human driver. Sensors would detect traffic lights and the car's computer would control aspects like braking and navigation. Technologies like anti-lock brakes, cruise control and automated guided vehicle systems are discussed. Advantages include safety, increased road capacity and allowing drivers to rest. Disadvantages could include hackers interfering with routing or sensors failing. The conclusion is that driverless cars aim to minimize accidents through addressing human causes of collisions.
The document discusses Google's driverless car project, including its history starting in 2009, the key components like sensors and artificial intelligence that allow it to drive autonomously, and some of the technologies that enable functions like cruise control, parking assistance and collision avoidance. It provides details on how the car uses sensors and AI to navigate roads safely and get passengers to their destinations, as well as potential advantages like increased road capacity and safety and disadvantages around security issues.
This document provides an overview of topics related to accounting and finance for bankers, including partnership accounts, company accounts, balance sheet equations, and accounting in a computerized environment. It discusses key concepts such as types of partnerships, methods of calculating goodwill, final accounts for banking companies, asset classification, and the basics of computerized accounting systems.
The document discusses reserves, provisions, and the auditor's responsibilities regarding them. It defines reserves as amounts set aside out of profits that are not intended to meet existing liabilities or diminish asset values. Provisions are liabilities of uncertain timing or amount that are recognized when an outflow of resources is probable to settle a present obligation from a past event. The document provides guidance on measuring, using, and disclosing provisions according to accounting standards. It also distinguishes between reserves and provisions and discusses the various types of reserves like revenue, capital, sinking funds, and secret reserves. Finally, it outlines the auditor's responsibilities to evaluate the adequacy of provisions and ensure reserves are properly accounted for.
The document provides an overview of Google's driverless car technology. It describes the various sensors used in the car, including LIDAR, RADAR, video cameras, and a position estimator. The sensors gather information about the vehicle's environment and location. Artificial intelligence software integrates this sensor data and helps operate the vehicle without human assistance. The document discusses the history and development of driverless cars. It examines the components, working, advantages, disadvantages, and potential future applications and predictions for this emerging technology.
The document discusses Google's driverless car project. It describes how the car can steer, accelerate, and stop itself using sensors like LIDAR and cameras to detect obstacles and traffic conditions. The car's artificial intelligence analyzes data from Google Maps and sensors to determine how to drive safely. As of 2012, Google had 6 driverless cars that had traveled over 140,000 miles on public roads in Nevada with only occasional human intervention needed. Benefits include reduced accidents, easier traffic management, and increased road capacity. Potential risks include hacking and sensor failures.
The document discusses the results of a study on the effects of exercise on memory and thinking abilities in older adults. The study found that regular exercise can help reduce the decline in thinking abilities that often occurs with age. Older adults who exercised regularly performed better on cognitive tests than those who did not exercise regularly.
Presentation on driverless cars by shahin hussan Shahinhussan
This document discusses driverless car technologies including how cars will detect traffic lights using light sensors, technologies that enable fully autonomous systems like ABS and electronic stability control, and how vehicles will be controlled. It also covers cruise control, night vision, lane departure warning, adaptive high beams, self-parking, rear cameras, and automated guided vehicle systems. The goal of driverless cars is to reduce accidents by taking on driving tasks and allowing occupants to rest or focus on other things.
This document provides an overview of the eight key steps in the accounting cycle for processing transactions: 1) Identifying transactions, 2) Classifying transactions, 3) Journalizing transactions, 4) Posting to ledgers, 5) Making adjusting entries, 6) Making closing entries, 7) Preparing a trial balance, and 8) Presenting final financial statements. It describes each step in the process, highlighting concepts like double-entry bookkeeping, debit and credit rules for different types of accounts, and examples of accounting entries for common bank transactions.
This document discusses the process of preparing published financial accounts for a bank. It explains that published accounts must follow legal and regulatory standards to ensure transparency for external users. They require an income statement, balance sheet, cash flow statement and other disclosures. In contrast, unpublished internal accounts have more flexibility in format and are primarily for internal bank management and regulatory oversight rather than external users and investors.
This presentation is based on the subject Financial Accounting which helps the beginners to know the basic concept of accounting . This is according to the syllabus of Pt. Ravishankar University , Raipur and Durg University, Durg.
The document discusses the accounting cycle and financial reporting process. It covers the key steps:
1. Preparing the basic financial statements - the balance sheet, income statement, and statement of retained earnings.
2. Making closing entries to reset temporary accounts to zero at the end of the period. This involves transferring account balances to income summary and then to retained earnings.
3. Evaluating the business performance using liquidity and profitability ratios calculated from the financial statements.
This document discusses the accounting cycle and how to prepare a worksheet. It explains that a worksheet is used to record trial balances, adjustments, and financial statement preparation. The document outlines the steps in the accounting cycle and types of accounts. It also describes the sections of a classified balance sheet, including current and long-term assets/liabilities, as well as owner's equity.
The document discusses self-balancing ledgers. Under a self-balancing system, separate trial balances can be prepared for individual ledgers like the debtors ledger and creditors ledger. This is done by opening adjustment accounts that allow entries to balance between the individual ledgers and the general ledger. The system localizes errors, facilitates division of work, and allows for interim accounts to be prepared. The document outlines the steps to implement a self-balancing system including splitting the ledger and opening adjustment accounts between ledgers.
Trial balance and rectification of errorsItisha Sharma
Trial balance and rectification of errors, Introduction- Specimen of a Trial Balance- Errors and their rectification – Rectification of errors Rectification of errors detected after the preparation of Trial Balance but before the preparation of Final Accounts- Effect of errors on Profit – Rectification of errors appearing after the preparation of Final Accounts
A trial balance is a list of ledger account balances prepared at the end of an accounting period to assist in drafting financial statements. It ensures debit and credit entries are recorded properly according to double-entry accounting and that account balances are accurate. Preparing a trial balance helps identify and rectify errors before finalizing financial statements. Asset and expense accounts appear on the debit side while liabilities, capital, and income accounts appear on the credit side.
Accounting related topic focusing on financial statementsSrikarRenikindhi
The document discusses the key steps in the accounting cycle including recording transactions, posting to ledger accounts, preparing trial balances, adjusting entries, financial statements, and closing entries. It provides details on closing entries including transferring revenue and expense account balances to an income summary account, then transferring the net income or loss to retained earnings. The document also discusses income statements and how they report profitability for a period by organizing revenue and expense accounts.
This document provides an overview of key concepts related to financial statements and the auditor's opinion. It discusses the accounting cycle including recording transactions, adjusting entries, and preparing financial statements. It then explains the main financial statements - the income statement, balance sheet, statement of owners' equity, and statement of cash flows. The document also covers consolidated financial statements, important aspects of financial reporting, and the different types of auditor's opinions that may be issued.
The document discusses trial balance, which is a statement that lists the debit and credit balances of ledger accounts to test the arithmetical accuracy of accounting books. A trial balance has certain features, such as being prepared on a specific date and including all ledger accounts. It also discusses the purpose of a trial balance, which is to test accuracy, provide a summary of ledger account balances, and serve as the basis for preparing final financial statements. The document outlines different methods for preparing a trial balance and provides examples of common account adjustments that are made, such as for closing stock, depreciation, outstanding expenses, and prepaid expenses.
The accounting cycle is a series of steps to record, classify, and summarize a business's financial transactions over an accounting period. It begins with analyzing transactions and recording them in a journal. The journal entries are then posted to ledger accounts, where balances are calculated. An unadjusted trial balance lists the ledger account balances before adjusting entries. Adjusting entries follow accrual accounting principles. The adjusted trial balance incorporates these adjustments. Finally, closing entries transfer temporary account balances to permanent accounts, allowing preparation of financial statements from the post-closing trial balance.
Here are the key steps involved in payroll calculations:
1. Calculate basic salary as per employment terms
2. Calculate allowances like HRA, travel allowance, LTA as per company policy and income tax rules
3. Calculate statutory deductions like PF, ESI as prescribed percentages of basic pay
4. Calculate non-statutory deductions like income tax as per applicable tax slabs and rules
5. Calculate other benefits like leave encashment, bonuses, incentives if any
6. Generate payslip showing calculations of gross pay, deductions and net pay
7. Process payment to employees and file statutory returns
The payroll software automates these calculations to ensure accuracy as per rules. It is important to
This document provides an overview of key components of financial statements that banks prepare at the end of each financial year. It describes the typical contents and structure of a bank's balance sheet, income statement, and cash flow statement. The balance sheet shows a bank's assets, liabilities, and equity at a point in time. The income statement summarizes revenues and expenses over a period to determine profit or loss. The cash flow statement reflects cash inflows and outflows during the reporting period from operating, investing, and financing activities.
The document describes the key steps in the accounting cycle: 1) analyzing transactions, 2) journalizing transactions, 3) posting to ledger accounts, 4) preparing a trial balance, 5) adjusting entries, 6) preparing an adjusted trial balance, and 7) preparing financial statements. It provides examples of journal entries, the ledger, trial balance, income statement and statement of financial position. The accounting cycle ensures all financial transactions are recorded and reported accurately in the financial statements.
The document discusses accounting for assets, including:
- Methods for accounting for uncollectible accounts receivable like the direct write-off and allowance methods.
- Distinguishing between tangible and intangible long-term assets.
- Inventory valuation methods like periodic and perpetual, and issues like lower of cost or market.
The document discusses Uganda's financial services sector. It describes the four tiers of financial institutions in Uganda: (1) commercial banks that take deposits and make loans; (2) credit institutions that also take deposits and make loans; (3) microdeposit-taking institutions (MDIs) that accept small deposits and make small loans; and (4) unregulated institutions like SACCOs that make loans but do not accept deposits. It then provides examples of institutions that fall into each tier and describes their distinguishing characteristics and regulations.
The document discusses Uganda's financial services sector. It begins with a historical overview of banking in Uganda, from the initial four commercial banks at independence to periods of economic breakdown and reforms. It then describes the structure of Uganda's financial sector, including the roles of various institutions such as commercial banks, development banks, microfinance organizations, and the Bank of Uganda as regulator. The informal financial sector is also briefly outlined.
This document provides an overview of key Ugandan laws that regulate banking and financial services. It discusses the Financial Institutions Act of 2004, which guides the operation of banks and non-banks and aims to maintain confidence in the financial system. It also covers the Bank of Uganda Act of 2000, which gives the central bank authority to supervise financial institutions. Additional acts discussed include the Bills of Exchange Act regarding negotiable instruments, and the Micro Finance Deposit-Taking Institutions Act of 2003 concerning the regulation of microfinance institutions. The conclusion emphasizes that bankers must understand and conform to relevant legislation in order to properly perform their daily tasks.
This document discusses contract law and its importance in banking. It covers the following key points:
- Contract law is central to banking as banks enter into many contracts with customers for services like opening accounts and providing loans.
- The essential elements of a valid contract are an agreement between parties involving an offer, acceptance, and consideration.
- For a contract to be enforceable it must also meet additional requirements around legality, capacity, consent, and formalities.
- Breach of contract occurs when one party fails to perform according to the terms and the injured party can sue for damages. This is important in banking when mistakes are made processing items like checks.
This document provides an overview of the legal environment module for the Uganda Institute of Banking & Financial Services. It discusses the sources of law relating to financial institutions, including acts of parliament, statutes, and legal principles. It also covers specific topics like contract law, negotiable instruments, and the relationship between banks and their customers. The role of legislation in regulating the banking sector is explained, along with key concepts like the definition of law, the classification of law into public and civil components, and the "Code of Banking" which comprises established practice rules for the industry.
The document discusses the banker-customer relationship under contract law. It defines key terms like banker, customer, and bank. A banker is defined as someone who carries out the business of banking like accepting deposits and honoring checks. A customer is anyone who uses a bank's services, including those without an account. The relationship is a contractual one, with implied rights and duties. Rights of bankers include charging fees and interest, while duties include keeping information confidential and honoring valid checks. The contract can end through termination by either party, by operation of law like death, or after reasonable notice from the bank.
This document discusses the banker-customer relationship under contract law in Uganda. It begins by defining key terms like "banker", "customer", and "banking". A banker is defined as someone who carries out the business of banking, such as accepting deposits and honoring withdrawals. A customer is anyone who enters an agreement with a bank for services.
The relationship between a banker and customer is described as contractual, with implied rights and duties. General contract law principles apply. When opening an account, banks must verify a customer's identity and obtain signatures or mandates authorizing transactions. Both bankers and customers have legal rights and duties in the contract, such as bankers having the right to charge fees and customers having the duty to
This document discusses negotiable instruments and bank cheques. It defines negotiable instruments as documents used in commerce to secure payment of money. Cheques are specifically defined as written promises by the drawer for the bank to pay the payee on demand. The key parties to a cheque are the drawer, drawee (bank) and payee. Features of a cheque include the cheque number, sort code, account number and crossing lines instructing the bank to deposit funds in the payee's account rather than paying in cash. Negotiable instruments must bear the maker's signature, include an unconditional promise to pay a fixed sum, specify a payment on demand or at a definite time, and be payable to order or to bear
This document discusses pricing mechanisms and concepts from an economics perspective. It defines pricing as the process of determining the cost for goods and services based on factors like production costs, competition and demand. It then describes price mechanisms as how buyers and sellers negotiate prices based on supply and demand through mutual exchanges. Finally, it outlines three key functions of price mechanisms: 1) they act as signals to producers about supply and demand, 2) they transmit consumer preferences to producers, and 3) they provide incentives for producers and consumers to change their behavior in response to price changes.
Banks play an important role in the economy by serving as financial intermediaries. They accept deposits from savers and pool those funds to provide credit to borrowers, either directly through lending or indirectly by investing in capital markets. This transfers funds from those with surplus money to invest to those who need to borrow funds. Commercial banks also facilitate national and international trade by transferring funds, which is key to the functioning of the economy. Banks include central banks that implement monetary policy, commercial banks that accept deposits and provide credit, savings banks for lower income savers, and development banks that lend to new businesses.
This document discusses environmental conservation and its relationship to economics. It begins by defining economics and the environment. It then outlines global trends in increasing priority given to environmental protection, including frameworks like the UNFCC and Kyoto Protocol. For Uganda specifically, the document notes that environmental sustainability is a strategic objective in development plans but the country has not performed well on related MDG measures. It emphasizes that Uganda's prosperity relies on biodiversity that faces threats. Finally, it describes the interrelationship between the environment and economics, noting the environment supplies resources and economic prosperity relies on it.
The document discusses international trade and regional economic integration in Africa. It provides details on several major regional economic communities in Africa, including COMESA and the East African Community (EAC). COMESA aims to promote economic development and trade by removing barriers between member states. Its goals include establishing a free trade area and eventually a common market and monetary union. The EAC also seeks to deepen economic and political integration between its members through cooperation in areas like trade, infrastructure, and security. Both organizations aim to boost intra-regional trade and investment through gradual economic harmonization and coordination between states.
The document discusses the role of government in regulating economic activity and maintaining stable market conditions. It describes how governments establish legal frameworks, regulate industries like banking, implement fiscal and monetary policies to influence economic growth and inflation, redistribute resources, and address externalities. Specifically, it outlines the government's role in regulating general business interactions and specific industries, using policies like taxation and money supply management to guide economic stabilization, and providing services that markets do not.
The document discusses different types of business organizations including sole proprietorships, partnerships, limited liability companies, and cooperatives. It provides details on the key advantages and disadvantages of each type. Sole proprietorships are easy to establish but the owner bears all financial risks, while partnerships allow for more capital but partners have unlimited liability. Limited liability companies provide protection of personal assets but involve more legal formalities. Cooperatives make it easier to raise capital from members but with less personal control over business decisions.
This document discusses inflation, including its definition, causes, effects, and methods of control. Inflation is defined as a rise in the general level of prices for goods and services in an economy over time, which causes a loss of purchasing power. Common causes of inflation include increases in production costs, demand, money supply, and imported goods prices. Effects can be both positive, like encouraging investment, and negative, like uncertainty reducing investment. Controlling inflation involves monetary policy through central banks targeting low interest and inflation rates.
This document provides an overview of key economic concepts and the economic environment. It begins by explaining the objectives of the module which are to explain the economic environment, basic economic concepts, micro and macroeconomics, and different economic situations and their causes. It then defines several important economic terms and concepts such as scarcity, resources, supply, demand, market equilibrium, production, cost, efficiency, and opportunity cost. It also distinguishes between microeconomics and macroeconomics and explains economic indicators like economic growth, inflation, employment, and unemployment.
The document discusses lending, insolvency, receivership, and bankruptcy from the perspective of banks and lenders. It covers the typical lending cycle and key issues at each stage. Acts of bankruptcy under Ugandan law are outlined, including conveyance of property to trustees or fraudulent transfers. The implications of receivership are summarized, such as the receiver taking charge of the borrower's affairs and replacing management. Finally, the duties of a receiver and effects of bankruptcy are briefly explained, such as proof of debts by creditors and priority of certain debt types in distribution of the bankrupt's property.
The document discusses lending in the banking business and concepts related to insolvency. It begins by outlining the learning outcomes which are to articulate the role of lending, discuss the bank lending cycle, and explain insolvency, bankruptcy, and receivership. It then provides definitions of key terms like insolvency, receivership, and bankruptcy. Finally, it lists 11 signs that can indicate a business or individual is insolvent, such as continuing losses, current liabilities exceeding assets, unpaid taxes, and suppliers requiring cash-on-delivery or special payments. The document aims to explain these lending and insolvency concepts to banking and financial services students.
This document discusses lending in the banking business. It covers general principles of good lending, the typical lending cycle, and remedies for defaulting borrowers. Delinquency or default refers to a borrower failing to pay installments on time. Causes of delinquency include inability to pay, business failure, adverse economic conditions, willful default, death, inappropriate loan terms, and bankruptcy. Managing delinquency involves preventing late payments through proper underwriting and tailoring loans to borrowers' needs. It also involves solving existing delinquencies through measures ranging from contact and rescheduling to seizing and selling collateral.
This document discusses different types of lending in the banking business. It defines corporate lending as lending to companies and institutions that are separate legal entities, while retail lending refers to lending to individuals and small businesses. The key differences between corporate and retail lending are loan amounts, who signs contracts and bears liability, and complexity. Requirements for corporate lending include the company being incorporated and having authority to borrow, while requirements for retail lending include the borrower being an adult of sound mind and having debt repayment capacity. Mortgage lending is also discussed as a specialized type of lending secured by property.
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Zodiac Signs and Food Preferences_ What Your Sign Says About Your Taste
Basic accounting unit4
1. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
Accounting Framework
Posting and Processing Transactions
Year- End Adjustments and Provisions
Preparing Final Accounts
Introduction to Financial Reporting Standards
Published Accounts
MODULE COVERAGE
1
Financial Ratios and Projections
Elements of Taxation
2. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
Rationale for provisions
By end of every accounting period, there will be certain expenses incurred for
the future period, expenses incurred for the current period but not paid
for, and some non-cash expenses representing a diminution of value
assets. Such require adjustments for the final accounts to be true and fair.
Typical provisions
• Provision for bad & doubtful debts (Loan Loss Provisions)
The decision whether to provide against loans losses and the magnitude of
any provisions made will be based on qualitative and quantitative factors
stipulated in BoU regulations.
Qualitative factors include the repayment performance of the customers, his/
her business performance, on going discussions with the customer, nature
of the security provided by the customer and strength and credit history.
These factors are largely unquantifiable, but affect the quality of the loan.
Quantitative factors are measurable, and include the age of the facility,
‘days past due’, and the date of last credit / debt service.
2
3. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
Example:
• The following provisioning guidelines for W Banking Ltd are based on the
“days past due date”. However in deciding whether or how to provide, and
how much to provide for, the management of W Banking Ltd. is guided by
both qualitative factors referred to above and the ‘days past due’.
3
Number of days past
due date
Category Required provision
Below 90 Performing 1%
90– 180 Substandard 25%
181–270 Doubtful 50%
271 – 360 Loss 100%
Over 360 Loss Write off
4. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
Loans under the, sub-standard, doubtful and loss categories are considered
non-performing.
• The general guidelines for accounting for bad and doubtful debts are:
• Once the decision is made to provide against a loan, the profit and loss
account is debited immediately with the amount of the provision whilst
the credit is posted to a loan loss reserve account (a balance sheet item)
• Provisions are made as a percentage (20%, 50%, 75% or 100%) of the
outstanding principle amount
• Normally no further provisions are required in respect of interest income.
Any outstanding/unearned interest is reversed and suspended as already
illustrated above.
• Provisions for bad and doubtful debts may only be reversed (written back)
to the extent of the reduction (repayment) of the outstanding loan. For
example, if W Ltd recovers Shs.500,000 from a customer classified
“doubtful”, then only Shs.375,000 (75% of 500,000) can be reversed from
the provision account.
4
5. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
• On a yearly or half yearly basis, the provisions are done in line with the procedure
explained above.
• The resulting figure of total provision is called the Loan Loss Reserve, and is
deducted from the Gross Loan Portfolio in the balance sheet to get the Net Loan
Portfolio. Incremental provisions are taken to the P&L.
• Accounting treatment for the loan loss provisioning is;
DEBIT: Loan Loss Provision Expense Account (P&L item)
CREDIT: Loan Loss Reserve Account (Negative Asset)
Prepayments
• Prepayments are the amounts paid during the accounting period for expenses that
will be incurred in the future period. They are categorized as assets in the balance
sheet. It is an asset as long the service paid for has not yet been utilized.
• The payment is made yet it’s an expense for a future financial period. Banks for
instance pay their insurance and rent expenses in advance.
• Accounting treatment for a prepayment is;
DEBIT: Prepayment Account (Balance Sheet item)
CREDIT: Cash or Bank Account
5
6. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
• Once the period to which the payment relates has passed, the prepayment
account is then written down amortized and the amount transferred to the income
statement as an expense.
• Accounting treatment for the amortization of the prepayment is;
DEBIT: Appropriate Expenses Account (P&L Account)
CREDIT: Prepayment Account (Balance Sheet item)
Accrued expenses
• Accruals are expenses that were incurred during the accounting period but not yet
paid for by the close of the period.
• The accruals concept requires that these expenses are recognized in the income
statements.
• The accounting treatment is as follows:
DEBIT: The expense account to which the accrued amount relates
CREDIT: Accruals or other payables (balance sheet items)
6
7. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
Balancing off accounts
After the transactions have been recorded into the accounts, these accounts do not
remain open but need to be closed at the end of the period. Closing an account
refers to establishing the account balance (difference between total debits and
total credits) at the end of the period.
At the close of an accounting period, the various accounts are closed off in order to
prepare the financial statements. If the total debits exceed the total credits there
is said to be a debit balance on the account: if the credits exceed the debits then
the account has a credit balance.
Procedure of balancing –off accounts
1. Generally the following steps are taken when balancing off accounts:
2. Add up the debit side of the account and then the credit side
3. Decide which side adds up to the greater figure
4. The difference will go on the other side, so write it in and call it balance c/d. If
there is no balance, do not enter one!
5. Write –in the totals (which must equal each other) on the same line. Do not put
any description beside the totals.
6. Rewrite the balance underneath the total on the opposite side to the balance
c/d and call this one balance b/d.
7
8. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
Preparation of the Trial Balance
• We already know from the study of the chart of accounts that the main categories
of accounts are revenue, expenses, assets, liabilities and capital.
• We have also learnt from our previous study on closing off accounts that revenue
and expense accounts are closed off to the profit and loss account and that the
assets, liabilities and capital accounts are closed off to the balance sheet at the
close of an accounting period.
• Before transferring the relevant account balances to the profit and loss account
and to the balance sheet, it is ideal to test the accuracy of the double entry
bookkeeping records by preparing a trial balance.
• The trial balance is a list of the account balances (debit and credit) at the close of
an accounting period. The debit and credit account balances are summed up
separately.
• The credit and debit totals should be equal otherwise an error would have
occurred during the double entry posting or balance calculations.
• Where the debit and credit total in the Trial Balance do not balance (are different),
a suspense account is opened to balance the two sides.
• The errors are then investigated and corrected. With the errors corrected, the
sides should agree.
8
9. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
You can prepare the trial balance by
following these steps:
i. Take the account balances from
the ledger.
ii. List the accounts having debit
balances in one column and those
having credit balances in the other
column.
iii. Total the debit balances up
iv. Total the credit balances up
v. Compare the sum of the debit
balances and that of the credit
balances
vi. The sums should be equal in order
for the ledger accounts to be in
balance.
vii. Remember that a trial balance is a
first test of accurate posting and
balance calculations in the ledgers.
Tips on finding trial balance errors
i. Re-add the entries on the debit and
those on the credit side, to ensure
the additions were right.
ii. Check that the numbers on your trial
balance are the same numbers
shown in your general ledger.
iii. Check to see if you properly classified
amounts as debits or credits on your
trial balance.
iv. Check that each General ledger
account was properly totaled up on
both the debit and credit sides, and
that the right balances were taken to
the trial balance
v. Check that the journal totals were
properly posted to the general ledger.
(correct amounts posted) Were they
properly classified as debits or
credits?
9
10. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
vi. Go back to each journal. Look at the totals that were posted to the general
ledger. Do total debits equal total credits in each journal?
vii. Go back to each journal. Did you foot (total) each column on each page of the
journal? Did you carry forward all column totals to the next page?
viii. Did all the items entered in the “miscellaneous” column get posted to the
general ledger?
ix. Is the difference divisible by 9? If so, it could be a simple transposition error.
For example, writing down 540 instead of 450 results in a difference of 90.
Writing 26 instead of 62 results in a difference of 36. Notice that both of these
differences are divisible by nine.
x. If the difference between debits and credits is divisible by nine, go back to the
journals, looking for the error. Knowing that it may be the result of transposed
numbers should help you find it.
xi. Is the difference between debits and credits a round figure like1100 or 1,000 or?
If so, it is probably an addition or subtraction error.
xii. Divide the difference by two. Is the resulting number shown on your trial
balance? If so, check to see if you have incorrectly classified the amount as a
debit or credit.
10
Editor's Notes
By the end of this unit, the students should be able:
Explain the end of period adjustments that are made to the various accounts.
Pass the end of period adjustments
Close off the ledger accounts
To extract the account balances after closing of the accounts
Prepare the trial balance
A bank wide audit in September 1998 revealed levels of insider lending above the legally stipulated limit in a number of banks. Greenland Bank, a large privately owned domestic bank, signed a memorandum of understanding with BOU to inject more capital and reduce the level of insider lending. It was closed 4 months later after attempts to turn it around proved futile. Cooperative Bank, the country’s second largest bank, was closed suddenly on May 20 1999 following the withdrawal of the United States Agency for International Development’s (USAID) support to the bank. Trust Bank, was closed after a run on the bank had been triggered by an announcement of the closure of its Kenyan affiliate. It was reopened two months later only to be closed in September 1999. International Credit Bank, a small indigenous bank was closed at a time when 45% of its loan portfolio had been advanced to the companies associated with its owners.
A bank wide audit in September 1998 revealed levels of insider lending above the legally stipulated limit in a number of banks. Greenland Bank, a large privately owned domestic bank, signed a memorandum of understanding with BOU to inject more capital and reduce the level of insider lending. It was closed 4 months later after attempts to turn it around proved futile. Cooperative Bank, the country’s second largest bank, was closed suddenly on May 20 1999 following the withdrawal of the United States Agency for International Development’s (USAID) support to the bank. Trust Bank, was closed after a run on the bank had been triggered by an announcement of the closure of its Kenyan affiliate. It was reopened two months later only to be closed in September 1999. International Credit Bank, a small indigenous bank was closed at a time when 45% of its loan portfolio had been advanced to the companies associated with its owners.
A moratorium on new commercial bank licenses was declared in 2004, with the passage of the Financial Institutions Act 2004 by Parliament, which established new banking institution classification guidelines, shifting the focus and modality of supervision from forensic to risk-based, and introduced robust, tight rules for management and governance of banks in Uganda.
The moratorium on new banks was lifted in July 2007. During the eighteen (18) months that followed the lifting of the moratorium, several new commercial banks were licensed. These included Kenya Commercial Bank, Equity Bank and Fina Bank, all from Kenya. Global Trust Bank and United Bank for Africa which trace their roots from Nigeria were also licensed during this period. The others were Ecobank; headquartered in Togo and Housing Finance Bank an indigenous bank.
Between 2008 and 2009, several of the existing banks went on an accelerated branch expansion either through mergers and acquisitions or through new branch openings. As of October 2010[update], there were twenty-two (22) licensed commercial banks in Uganda, with nearly four hundred (400) bank branches and a total of almost six hundred (600) ATMs.
In November 2010, Bank of Uganda directed that all commercial banks in Uganda, must raise their minimum capital to UGX 10 billion (approximately US$4.34 million) by March 2011 and to UGX 25 billion (approximately US$11 million) by March 2013. Any new commercial bank entering the Ugandan market effective November 2010 had to have a minimum capitalization of UGX 25 billion. Today (June 2012), most of the banking activity is concentrated around Kampala and other urban centers, leaving most Ugandans out of the formal financial sector.
A moratorium on new commercial bank licenses was declared in 2004, with the passage of the Financial Institutions Act 2004 by Parliament, which established new banking institution classification guidelines, shifting the focus and modality of supervision from forensic to risk-based, and introduced robust, tight rules for management and governance of banks in Uganda.
The moratorium on new banks was lifted in July 2007. During the eighteen (18) months that followed the lifting of the moratorium, several new commercial banks were licensed. These included Kenya Commercial Bank, Equity Bank and Fina Bank, all from Kenya. Global Trust Bank and United Bank for Africa which trace their roots from Nigeria were also licensed during this period. The others were Ecobank; headquartered in Togo and Housing Finance Bank an indigenous bank.
Between 2008 and 2009, several of the existing banks went on an accelerated branch expansion either through mergers and acquisitions or through new branch openings. As of October 2010[update], there were twenty-two (22) licensed commercial banks in Uganda, with nearly four hundred (400) bank branches and a total of almost six hundred (600) ATMs.
In November 2010, Bank of Uganda directed that all commercial banks in Uganda, must raise their minimum capital to UGX 10 billion (approximately US$4.34 million) by March 2011 and to UGX 25 billion (approximately US$11 million) by March 2013. Any new commercial bank entering the Ugandan market effective November 2010 had to have a minimum capitalization of UGX 25 billion. Today (June 2012), most of the banking activity is concentrated around Kampala and other urban centers, leaving most Ugandans out of the formal financial sector.
A moratorium on new commercial bank licenses was declared in 2004, with the passage of the Financial Institutions Act 2004 by Parliament, which established new banking institution classification guidelines, shifting the focus and modality of supervision from forensic to risk-based, and introduced robust, tight rules for management and governance of banks in Uganda.
The moratorium on new banks was lifted in July 2007. During the eighteen (18) months that followed the lifting of the moratorium, several new commercial banks were licensed. These included Kenya Commercial Bank, Equity Bank and Fina Bank, all from Kenya. Global Trust Bank and United Bank for Africa which trace their roots from Nigeria were also licensed during this period. The others were Ecobank; headquartered in Togo and Housing Finance Bank an indigenous bank.
Between 2008 and 2009, several of the existing banks went on an accelerated branch expansion either through mergers and acquisitions or through new branch openings. As of October 2010[update], there were twenty-two (22) licensed commercial banks in Uganda, with nearly four hundred (400) bank branches and a total of almost six hundred (600) ATMs.
In November 2010, Bank of Uganda directed that all commercial banks in Uganda, must raise their minimum capital to UGX 10 billion (approximately US$4.34 million) by March 2011 and to UGX 25 billion (approximately US$11 million) by March 2013. Any new commercial bank entering the Ugandan market effective November 2010 had to have a minimum capitalization of UGX 25 billion. Today (June 2012), most of the banking activity is concentrated around Kampala and other urban centers, leaving most Ugandans out of the formal financial sector.
A moratorium on new commercial bank licenses was declared in 2004, with the passage of the Financial Institutions Act 2004 by Parliament, which established new banking institution classification guidelines, shifting the focus and modality of supervision from forensic to risk-based, and introduced robust, tight rules for management and governance of banks in Uganda.
The moratorium on new banks was lifted in July 2007. During the eighteen (18) months that followed the lifting of the moratorium, several new commercial banks were licensed. These included Kenya Commercial Bank, Equity Bank and Fina Bank, all from Kenya. Global Trust Bank and United Bank for Africa which trace their roots from Nigeria were also licensed during this period. The others were Ecobank; headquartered in Togo and Housing Finance Bank an indigenous bank.
Between 2008 and 2009, several of the existing banks went on an accelerated branch expansion either through mergers and acquisitions or through new branch openings. As of October 2010[update], there were twenty-two (22) licensed commercial banks in Uganda, with nearly four hundred (400) bank branches and a total of almost six hundred (600) ATMs.
In November 2010, Bank of Uganda directed that all commercial banks in Uganda, must raise their minimum capital to UGX 10 billion (approximately US$4.34 million) by March 2011 and to UGX 25 billion (approximately US$11 million) by March 2013. Any new commercial bank entering the Ugandan market effective November 2010 had to have a minimum capitalization of UGX 25 billion. Today (June 2012), most of the banking activity is concentrated around Kampala and other urban centers, leaving most Ugandans out of the formal financial sector.
A moratorium on new commercial bank licenses was declared in 2004, with the passage of the Financial Institutions Act 2004 by Parliament, which established new banking institution classification guidelines, shifting the focus and modality of supervision from forensic to risk-based, and introduced robust, tight rules for management and governance of banks in Uganda.
The moratorium on new banks was lifted in July 2007. During the eighteen (18) months that followed the lifting of the moratorium, several new commercial banks were licensed. These included Kenya Commercial Bank, Equity Bank and Fina Bank, all from Kenya. Global Trust Bank and United Bank for Africa which trace their roots from Nigeria were also licensed during this period. The others were Ecobank; headquartered in Togo and Housing Finance Bank an indigenous bank.
Between 2008 and 2009, several of the existing banks went on an accelerated branch expansion either through mergers and acquisitions or through new branch openings. As of October 2010[update], there were twenty-two (22) licensed commercial banks in Uganda, with nearly four hundred (400) bank branches and a total of almost six hundred (600) ATMs.
In November 2010, Bank of Uganda directed that all commercial banks in Uganda, must raise their minimum capital to UGX 10 billion (approximately US$4.34 million) by March 2011 and to UGX 25 billion (approximately US$11 million) by March 2013. Any new commercial bank entering the Ugandan market effective November 2010 had to have a minimum capitalization of UGX 25 billion. Today (June 2012), most of the banking activity is concentrated around Kampala and other urban centers, leaving most Ugandans out of the formal financial sector.
A moratorium on new commercial bank licenses was declared in 2004, with the passage of the Financial Institutions Act 2004 by Parliament, which established new banking institution classification guidelines, shifting the focus and modality of supervision from forensic to risk-based, and introduced robust, tight rules for management and governance of banks in Uganda.
The moratorium on new banks was lifted in July 2007. During the eighteen (18) months that followed the lifting of the moratorium, several new commercial banks were licensed. These included Kenya Commercial Bank, Equity Bank and Fina Bank, all from Kenya. Global Trust Bank and United Bank for Africa which trace their roots from Nigeria were also licensed during this period. The others were Ecobank; headquartered in Togo and Housing Finance Bank an indigenous bank.
Between 2008 and 2009, several of the existing banks went on an accelerated branch expansion either through mergers and acquisitions or through new branch openings. As of October 2010[update], there were twenty-two (22) licensed commercial banks in Uganda, with nearly four hundred (400) bank branches and a total of almost six hundred (600) ATMs.
In November 2010, Bank of Uganda directed that all commercial banks in Uganda, must raise their minimum capital to UGX 10 billion (approximately US$4.34 million) by March 2011 and to UGX 25 billion (approximately US$11 million) by March 2013. Any new commercial bank entering the Ugandan market effective November 2010 had to have a minimum capitalization of UGX 25 billion. Today (June 2012), most of the banking activity is concentrated around Kampala and other urban centers, leaving most Ugandans out of the formal financial sector.