emekakelvin: good one.......though am nt yet a student but i applied at OAU dis session to study accountancy

haibe:

You are a potential/prospective accounting student, this thread is for you too, questions are welcomed, it shouldn't be until you get admitted first, have a strong foundation now.

nsidible: plz already accounting student.plz pray 4 me to get admission in Aau to study accounting.thank u.nice thread i nid to b part of it

haibe:

I pray you will get admitted but make sure you work hard too, have a good foundation in accounting, it will make things easy for you when you start school, its better to spend time having a good foundation and eventually having a good c.g.p.a that rushing into the university without a good foundation and then having a poor c.g.p.a, in the educational system the end justifies the means, it doesn't matter if you spent 5 years at home looking for admission, as long as you come out with a very good c.g.p.a, you will be respected and you will 'most likely' get a good job.

What am i saying?? Don't rush into the university without having a good foundation of your course, one may get admitted so easily but as long as he/she doesn't finish well, there is a problem no one would even remember he/she got admitted easily, every one would be concerned about whether he finished with 1st class, 2:1, 2:2, 3rd class or pass, that is what will matter most at the end of school, not how easy you got your admission.

My bro, i wish you good luck in getting your admission and i believe God will surprise you but once again do your best.

nsidible: thank u very much.Amen

haibe:

You r welcome, just take note, that piece of advise is worth millions.

nsidible: i will..can u list text books 4 accounting 100level

nsidible: i will..can u list text books 4 accounting 100level

haibe:

I will assume you are talking of financial accounting.

You can get Business accounting 1 and 2 by Frank woods, it covers financial accounting and some parts in cost accounting.

You can get "Financial accounting made simple"(FAMS) by Robert Igben, O. Its a very good book.

timwezzb: If U are given salaries & wages on the credit side of the Trial Balance...How will U treat that On ur trading,profit and Loss Account and Balance Sheet??

timwezzb: If U are given salaries & wages on the credit side of the Trial Balance.

timwezzb: If U are given salaries & wages on the credit side of the Trial Balance...How will U treat that On ur trading,profit and Loss Account and Balance Sheet??

haibe:

Do you really mean this?? Expenses usually have a natural/natural debit balance not credit, there is an error or perhaps its salaries and wages payable which is a liability and thus having a nominal credit balance.

El thugnificent: Not always. Rent is an expenses, no? But sometimes it is seen at the credit side. Here it is assume that the owner rent out part of the space the company is been built. Thus the owner expect income from such rent, that the reason why its in the credit side because its an income and not an expenses.

El thugnificent:
I came across a question like that last year in my examination. I treat it as income in profit and loss, and as current asset in my balance sheet. Please we need more comment on this issue. Where are the ACA?

El thugnificent: very interesting question. It is a very rare and unusual question to be seen in exams though. It is subject up for debate.
Debit side of a trial balance is made up of Asset and expenses while the credit is income and liabilities. It is reasonable to take the wages and salaries as an income but the business entity concept wont idea with it. Wheather you take it as an income or liability the balance sheet would sure balance. I came across a question like that last year in my examination. I treat it as income in profit and loss, and as current asset in my balance sheet. Please we need more comment on this issue. Where are the ACA?

haibe:

Let's look at it this way: A construction company which employs people to construct car canopies for their customers(individuals, organizations) monthly and then are paid for their services in form of wages and salaries by their customers(individuals,organizations), since those employees work in the name of the company, it would imply that the wages and salaries received from the customers(individuals, organizations) would be going into the company's account as income with a credit balance and not to the pocket of the employees, of course the employee would be paid their own wages and salaries too by the company which will now be an expenses to the company with a debit balance.

So we have 2 wages and salaries here, the former is an income(credit balance) while the latter is an expenses(debit balance).

Perhaps that's the situation @timwezzb's question is on(the former wages and salaries), so i think the wages and salaries in his case should be treated as an income in the P and L a/c.

Still waiting for other contributors.

El thugnificent: My thought exactly. This is something we have debated endlessly in school. Just like you said about the owner going out to work for another, the earned wages should be his not the company 'business entity', a coursemate use that as his arguement line that the earned wages should be treated as additional capital(what yous say on this?).
Well for we that doesnt make sense, it's plausible for it to be treated as income or liability but additional capital, i dont think so.
Have your say.

haibe:

the only way out is if the owner puts the money he derives(rent) as capital to the organization(which won't have anything to do with wages and salaries anymore), we know a company should be treated as a separate legal person from its owners. So I don't seem to understand, please shed more light, thanks.

Xplicit.:
9ce thread.


Subscribing.....................

hyzich: This is a nice thread,
In regards to question asked, its very rare to find salaries&wages in credit side of trial balance 'cos salaries&wages ɪ̣̝̇ƨ̣̣̣̇̇̇̇ an expenses and all expenses are debited in trial balance buh d examiner might put it in a question in order to test yur ability to tink nd make judgement as someone said dat it should b treated as additional capital N.B. no treatment 'll b made in profit nd loss acct iv its bn treated as additional capital buh we nid to b careful 'cos its "salaries&wages" whc 'll b earned mnthly or weekly i.e recurrent so I THINK it should b treated in d profit nd loss acct.. My opinion though, pls we nid ACA to shed more light on dis so dat we can learn. Thanks

haibe:

Thanks for your contribution, like i said in an earlier post, i would have treated it as an income to the company if i found it in an exam but i only tried to explain how the company could earn wages and salaries being an inanimate person and that's why i gave the idea of the owner earning the wages and salaries personally and then introducing the cash as capital to the business(this is the 1st possible way wages and salaries can be earned by a company), although its not realistic, so i then later gave the explanation of the company hiring employees to carry out services monthly(on behalf of the coy) to customers and then they get paid wages and salaries for this service which will be treated as an income to the organization.

So i guess the best way to treat the wages and salaries(CR) will be as an income in the p and l.

hyzich:

I never said yu were wrong, i only chip in my opinion.. Am sowie if I̶̲̥̅̊ 've offended yu oo

nabsprada: d bst thread so far....ONCE AN ACCOUNTANT,ALWAYS AN ACCOUNTANT..