CHAPTER ONE
INTRODUCTION
1.1
BACKGROUND OF THE STUDY
Booking keeping is business in a
methodical manner that
information on any point relating to
their may be quickly obtained. The
method of proceeding is based upon deprecate principle, which are discussed and
illustrated. The kind of information
which a trader may desire to have and which is readily available is summarized
below.
THE TRADER MAY DISCORE: -
The value up his purchases
The value up his sales
His expenses
The amount of cash in the office or
bank etc.
The
ultimate position of the business is to make a profit, by providing goods
services or employment. As every transaction
plays it part in determine the final profit or loss for a trading period,
accuracy in recording is important.
Accounting
is defined as a discipline concerned with the recording, analysis, and
forecasting of income and wealth of business and other entitle. Generally is record in money to terms the
flow of economic transactions between or within economic entities.
A
clear distinction between accounting and book-keeping is not easy to make
because book-keeping is in fact a part of accounting.
Accounting
figures are not use unloose they are made to tell useful stories to the
business owner.
BRIEF HISTORY OF ACCOUNTING IN NIGERIA
Nigeria
is a former British Colony. Among the
influence of Britain of Nigeria is modern commercial accounting. It will be erroneous to attribute the advert
of the Europeans.
For as has been said earlier, in as
much as there was flourishing commerce among the various segments considerable
measure of trans-share an Trans Atlantic trade, there must have been some of accounting
before that time.
Indeed,
the virgin of accounting in Nigeria
must be assumed to be akin to its origin all over the world.
It arose with the earlier form of
commercial transaction, trade by barter.
With
the magnetization the tradition at economic through the introduction of various
units of exchange cowries, beds, manila etc.
The method of accounting evolved further and become more refined. Which method is as yet, unrestricted (to the
best knowledge of the author). This
normal evolution of an accounting system.
Whether through indigenous invention or through across – the border
importation via routine influences, suffered a violent dislocation and upheaval,
like every other things as a result of the impact of colonization.
The
British Master established trading outposts all over Nigeria, with time. They equally introduced coinage currency. In
these trading outposts, especially the charted trading companies modern
book-keeping techniques were used. Those
trading concerns grew is size and complexity and in order to maintain the
necessary political and social orders for trade and development.
They began to exercise governmental
control. They set up schools where they
taught, among others, numerous subjects some of the products of these schools
were employed as charts and book-keeper where they were taught book-keeping on
the job.
As
British laws extended to the country and as local laws were fashioned along the
line of British companies operating locally found themselves subject to the
some regulations of accounting practices and procedures as prevailed in British
foreign accounting and audit forms soon established locally.
British trained accountants come to
work in the country and set up the internal revenue department accounting
systems soon were extended through the colonial office in loaded. For quite a while, all the trained accounting
personnel in the country were British.
But with time, local personnel were
employed in the lower cedars of the civil service and the Nigeria railways.
The first indigenous professional
accountant, Mr. Akintola Williams qualified in England
and Wales. By 1990 a few more Nigeria
had qualified in British and some back to Nigeria and they formed the
Association of Accountants in Nigeria (A.A.N).
The aims of the Association of
account in Nigeria were to
institute better training arrangement for accountants in Nigeria, promote accountancy as a
profession and see to the welfare of its members. The initial membership of the association was
fourteen.
the association receives the
parliamentary charter in 1965 when the Institute of Charter Accountant of
Nigeria (ICAN) act was passed as act No.15 of 1965. The act empowers the association to regulate
the practice of the profession in the country, form time to time set and modify
standards for the practices of profession and also to discipline. The act makes it an office for anyone who is
not a member of the institute to engage in public practice of accountancy in Nigeria.
Although
the Nigeria Institute has the necessary power to regulate the practice of the
profession. It for a long time merely
adopted these standards developed by the British accounting standards ,
committee and the Institute of Chartered Accounting in England
and Wales,. On September 9, 1982, however, the institute established the Nigeria
accounting standard based (NASB) to issue statement of accounting standard
(SAI).
1.2
OBJECTIVE OF THE STUDY
The aim and objective of this type of
research work is to
highlight and focus attention on the
roles which account play in Nigeria
and how to relate to the preparation and proper control of the financial
reports and stamen of business and organization.
1.3
SCOPE OF STUDY
The scope of this research project is
aimed at taking into
consideration on the roles and
methods by which financial and economic date are collected proceeds and
summarized into report that can be used economy (Nigeria).
1.4
LIMITAITON OF THE STUDY
As a students researcher, time on
straits was my greatest
problem couple with the problem of
schedules of trying to meet up with the daily lectures and running to and fro
in the quest for adequate materials with which to makes up the write up owing
to this, the researcher limited the study to Enugu State so as to effectively
consider the activities of few leading accounting section in some organization
and companies whose head and/or branch office are located in Enugu.
1.5
SIGNIFICANCE OF THE STUDY
Considering the nature of this study
which is a form of
accounting ensuring, the study helps
in revealing an/ or creating awareness of the existence of account in all
organization in Nigeria. It is equally aimed at Nigeria giving a true picture of accounting
rules in Nigeria.
1.6
STATEMENT OF THE PROBLEM
As student researcher, time
constraints was my greatest
obstacles couple with the problem of
schedules of trying to meet up with the daily lectures and running to and fro
for the assignment in courses and quest for the adequate materials with which
to make up the write-up.
1.7
DEFINITION
Every discipline has certain terms
with which it can be
described.
Similarly, accounting has its own
terms which best described it and which are frequently used in this project.
i. TRANSACTION: - Any
dealing between two or more person involving exchange of goods or services for
a consideration, usually in money.
ii. ASSETS: - These are rights which have value to
its owners which represents expected future economic benefit or rights, have
been acquired as the result of paid or current transaction assets companies of
fixed and current.
iii. FIXED ASSETS: - These are right which are tangible
in nature and can last with a person or business entity for a very long
time. These are usually acquired for retention
in the business and not for convention into cash. They include motor vehicle etc.
iv. CURRENT ASSETS: - These are assets which are circulation
or floating within the business at the current period. They can be easily turned to cash at a
reasonably short time. For example
include cash at hand, bills receivable and prepayments.
v. STOCKS: - These are goods bought and meant for
resale at a particular period. These
items are his stock of goods. There may
be opening and closing stocks. The
opening stock concern the goods with which a business was started. The stock of goods which remained on sale in
the business at the end of the period, for which value can only be ascertained
by country is known as the closing stock.
vi. LIABILITIES: -
These are amount which a business own to its owners or others. They consist of fixed or long term
liabilities and current or short term liability.
vii. FIXED OR LONG TERM
LIABILITIES: - These include all money which a business
owners to its owners or others which need not be met with a year. They include capital in the case of sale
trader and debentures, issued shore capital in the case of a limited company.
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