bookkeeping in small scale industries

8/12/2019 bookkeeping in small scale industries

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CHAPTER ONE

1.0 INTRODUCTION

According to the New Educational Reforms Programme every final year student is

expected to undertake, a research work relating to his or her field of study and make

recommendations for possible solution in partial fulfillment for the award of the Higher

National iploma certificate!

"his motivated the researcher to research on the topic #$ookkeeping in %mall %cale

Enterprises& with '()*+- Enterprise in "akoradi as a case study!

1.1 BACKGROUND OF THE STUDY

A %mall %cale Enterprise can basically be understood as a business venture operating on a

small scale! .ostly, these small scale enterprises are those that develop the human

resource base of a country! Also less developed countries should promote small scale

industries as either a complement or an alternative to large scale modern manufacturing

industries! /ndia as the most probable post independence leader in planning for large0

scale industriali1ation also made small scale enterprise development a priority! "his was

spear headed by the 2handis who advocated for small units using traditional technology!

/t is obvious that small scale enterprises 3%%Es4 play a pivotal role in the economic

development of every country! /t is in light of this that the past, present and future

governments have and will continue to place a high premium on the establishment and

promotion of small scale enterprises!

"he current vision 5678 of 2hana is embodied with plans about the development and

promotion of small scale enterprises! "he above assertion given by the government led tothe establishment of the National $oard for %mall %cale /ndustries 3N$%%/4 which was

established in 79:; as the apex governmental organi1ation set up under the long term

policy plan of government to promote and develop .icro and %mall %cale Enterprises! /t

is therefore clear from the above

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discussion that government, all over the world have recogni1ed the vital role that small

scale enterprises play in the development of economies!


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7! "o know whether '()*-+ enterprise keeps records of their business

transactions!

5! "o know how they keep records of their transactions!

@! "o identify the types of books kept by '()*-+ Enterprise!

! "o know whether they face problems in keeping records!

8! "o identify the problems they encounter in their bookkeeping!

;! "o evaluate the current accounting system used by small scale enterprises in

2hana!

:! "o recommend ways to improve the accounting system of small scale enterprises!

1.4 SIGNIFICANCE OF THE STUDY

"he study of $ookkeeping in small0scale enterprises will help these enterprises

understand the need to maintain proper accounting records! /t is also hoped that the

outcome of this study will help solve many if not all of the problems faced by small0scale

enterprises in keeping proper accounting records! rom the study, they will understandthat proper bookkeeping guarantees the success and going concern of their businesses!

"he recommendations will help '()*+- Enterprise to upgrade their accounting

systems! "he data collected and analy1ed can form the basis for further research work!

1.5 LIMITATIONS OF THE STUDY

"he ma>or limitation of this research work was time factor! "his was because the period

of time available for the work was relatively short, coupled with demands of other

academic work!

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Again, lack of financial support to assist the researcher in carrying out the work was also

another constraint, which affected the study!

.oreover, the unwillingness on the part of some respondents to give out information

which they considered delicate and secret to the organi1ation and choice of words torepresent what is, actually in mind were some of the drawbacks!

inally, another problem encountered by the researcher throughout the data collection

was the delay and refusal by some workers to release re=uired information for the

purpose of the study on the grounds of confidentiality!

1. DELIMITATION OF THE STUDY

'()*+- Enterprise is a small scale enterprise with only a branch at "akoradi! "hey are

yet to establish branches at different places! As a result, the researcher was limited only to

the geographical area of "akoradi in this research work!

1.! ORGANI"ATION OF THE STUDY

"his research work has been carefully planned and organi1ed! "here are five chapters in

all!

Bhapter one dealt with introduction, the background of the study, the purpose and

ob>ectives, the significance, limitations and delimitation and how the study was

organi1ed!

Bhapter two was on the literature review!

Bhapter three talked about the Research .ethodology employed in this research work!

Bhapter four dealt with the Presentation and Analysis of the study!

Bhapter five which was the concluding part gave the findings, summary, conclusion and

recommendations!

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CHAPTER T#O

LITERATURE REVIE#

2.0 INTRODUCTION

/t is really true that bookkeeping is now the foundation on which the whole fabric of

modern commerce rest and without it business transactions could only be carried out in

their most elementary form and it would have been impossible to develop these modern

credit system that have many advantages!

According to Cikipedia 356774, the free encyclopaedia, '$ookkeeping is the recording of

all financial transactions undertaken by an individual or organi1ation-! "he organi1ation

may be a business, a charitable organi1ation or even a sports club!

urthermore, Dickery 379:@4, said '$ookkeeping is the art of recording pecuniary or

business transactions in a regular and systematic manner and that such records shall be in

a permanent form and that the details concerning the transaction shall be arranged in the

monetary aspect of0

a! Each separate transaction

b! Each group of similar transaction

c! "he whole of the transactions entered into during a given period may be ascertained

with the minimum of trouble and delay!

2.1 HISTORY OF BOOKKEEPING AND ACCOUNTING

No one really knows who invented accounting! "here are references in the $ible that

indicates that some form of accounting had existed for centuries!

Accounting began because people needed to record business transactions, know if they

were being financially successful and know how much they owned and how much they

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owed! /t is known to have existed in one form or another since at least @866$B!

Accounting records were used by ancient traders etc! to control their assets, monitor their

costs, collect payments and calculate earnings! "here is also considerable evidence of

accounting being practiced in ancient times in Egypt, Bhina, 2reece and Rome! /n

England, the #Pipe Roll&, the oldest surviving accounting record in the English language

contains an annual description of rents, fines and taxes due to the Fing of England, from

77@6 to 7+@6! Accounting was then, not standardi1ed and recogni1ed as a process or

procedure!

/n 79,


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was! "he existence of a system of buying and selling on credit led to the need for a formal

organi1ed system that could be applied universally to record credit transactions!

8! Criting A mechanism of making a permanent record in a common language! Criting

had clearly been around for a long time prior to Pacioli but it was, nevertheless anessential element re=uired before accounting could be formali1ed!

;! .oney "here needs to be a common denominator for exchanges! %o long as barter

was used rather than payment with currency, there was no need for a bookkeeping system

based upon transactions undertaken using a uniform set of monetary values!

:! Arithmetic As with writing, this has clearly been in existence far longer than

accounting? nevertheless, it is clearly the case that without an ability to perform simple

arithmetic, there was no possibility that a formal organi1ed system of accounting could be

devised!

2.2 DIFFERENCES BET#EEN BOOKKEEPING AND ACCOUNTING

inancial Accounting is the art of recording business transactions and summari1ing them

into financial statements so that the users of the information can make decisions!

rom the above definition, we can see that there are two main activities involved in

accounting! "hese are recording and summari1ing! Recording involves putting down or

keeping record of the business transactions into the accounting books! "o summari1e the

transactions is to re0organi1e the recorded transactions into statements and reports to

show profitability and li=uidity of the business! "he recording aspect of accounting is

what is normally referred to as bookkeeping!

According to Cood and


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or a credit transaction 3where payment is deferred to a later date4! Accounting goes

beyond bookkeeping! /n accounting, you go ahead to summari1e the recorded transaction

into financial statement to show the two aspects of business 3profitability and li=uidity4!

$ecause accounting and bookkeeping are both concerned with financial information andrecords, some people mistakenly think that they are the same thing! /n fact, accounting

involves much more than bookkeeping! Although bookkeeping is critical to developing

useful accounting information, it is only the clerical part of accounting! '$ookkeepingis

the part of accounting that records transactions and other events, either manually or with

computers- Cood and %angster, 356654! According to Edwards and .ellet,

379984-accounting processes contains two basic elements, namely bookkeeping and

reporting financial information to enable businesses to take decisions! 'Accounting also

involves designing and implementing systems to produce useful reports and to control the

operations of an organi1ation-! Cood and %angster, 356654! 'Accounting involves more

professional expertise and >udgment than bookkeeping because accountants must analy1e

complex and unusual events-!


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An account is defined as the&& record of a group of transactions relating to a person or

property&&! Cood and %angster, 356654 !/t is simply a page of a ledger showing details of

transactions relating to a person or property- Cood and %angster, 356654! An account has

two sides, that is, a left0hand side called the debit side and the right0hand side called the

credit side! Accounts are classified into two main classes namely, personal and

impersonal accounts!

7! Personal Accounts "hey are accounts that deal with people and businesses other

words, the debtors and creditors! ebtors being people who owe money to the business

and creditors being people or businesses to whom money is owned! "he debtors are

maintained in the sales ledger, which may also be referred to as the debtors& ledger, the

creditors& accounts are kept in the purchases ledger also referred to as the creditors&

ledger!

5! /mpersonal Accounts "hey are divided into real and nominal accounts!

Real Accounts are the accounts kept for the tangible properties of a firm such as cash,

motor vehicles plant and machinery etc, which have physical existence! Cood and

%angster, 356654

Nominal Accounts are those, in which expenses and income are recorded, for example,

sales, purchases, wages, electricity, commissions received etc! Cood and %angster, 356654

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"he figure below explains the classes of accounts

ig!5!7 Blassification of accounts!

"he golden rule of accounting is restated differently using the #debit& and #credit& to suit

the recording of transactions in each particular class of account! "hese are stated below?

7! Personal Accounts "he rule for recording in a personal account is

ebit the receiver of values

Bredit the giver of values

5! Real Accounts "he rule for real account is

ebit what comes in or inflows

Bredit what goes out or outflows

10

Accounts

Personal accounts

Debtors

Impersonal accounts

Credtorsaccounts

!eal accounts"

#or propert$ o#

all %nds

&omnal

account" #ore'penses"

ncome(


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8! "he 2eneral Gournal "his is a subsidiary book which is used to record any other

transaction that does not fit into any of the special >ournals! /t is also known as the

#Gournal& or the #Gournal Proper&! "he general >ournal like any other >ournal has columns

for recording date, particulars, folios and amount!

*nlike the other >ournals, the amount column is divided into a ebit and a Bredit to show

how the two aspects of a transaction will be recorded in the ledger! "he ebit and Bredit

of the >ournal does not permit it to be part of the double entry system but are there to give

directions as to what entries are to be made in the ledger regarding transactions! /t is the

only book of account having a debit and credit but does not form part of the double entry

system!

"he 2eneral ledger has many uses and some of them are?

a4 /t is used to keep records of fixed assets!

b4 /t is used to record the sale of a fixed asset!

c4 /t is also used to open the books of a firm 3record assets and liabilities4 at the start of an

accounting period!

d4 /t is used to close the books of a firm at the end of the accounting period!

e4 /t is used to transfer amount from one ledger account to another!

f4 /t is used for the correction of accounting errors!

;! Bashbook "he Bashbook is the subsidiary book of account used to maintain records of

all cash transactions of the business!

"he Bashbook as a subsidiary is also regarded as a principal book because it follows the

double entry rule! /t has a debit and credit, with the debit side recording all receipts ofcash and che=ue and the credit side recording all payment of cash and che=ue! "here are

four types of cash books and they are explained below?

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a4 %ingle column cashbook "his is the type of cashbook that has only one column for

either recording cash or che=ue transactions!

b4 ouble column cashbook "his type of cashbook has two columns 3one for recording

cash and the other for recording che=ue4! "he column for recording cash is called thecash column whilst the column for recording che=ue is called the bank column!

c4 "riple column cashbook "his column also has both cash and bank columns with an

additional column called the discount column! "he discount column at the debit side

records all cash discounts allowed and the one at the credit side records all cash discounts

received!

d4 Petty Bashbook /n most business organi1ations, there are a number of small expenses

that have to be paid by notes and coins instead of issuing che=ues on them! "o make such

petty cash payments, a supply of cash has to be kept on the business premises! "his

amount of cash kept for such purposes are petty cash float or imprest! "he payment into

and out of the cash float is recorded in a separate cashbook called the petty cash book! A

petty cash book is a form of cash book used to keep records of petty cash payment which

are not recorded in the main cash book! /t is a type of cashbook used to record

miscellaneous payments such as postage, bus fares, lighting and heating expenses etc,

that are too small to >ustify entry into the main cash book! A >unior accounts clerk calledthe petty cashier usually keeps the petty cash book! "he purpose of the petty cash book is

to relieve the main cashier of the burden of including such petty cash transactions in the

main cash book! "he petty cash book like the main cash book is a ledger account and an

essential part of the double entry system! /t has a debit side and a credit side! )n the debit

side is a column used to record the amount of cash received periodically 3the cash float

and the subse=uent reimbursements4 from the main cashier! )n the credit side there is a

total column, a voucher number column together with a number of analyses columns! "heanalyses columns are the columns designed and meant to group the various expense items

so that the total of each expense item on which the float has been used can be obtained

for decision making!

Principal $ooks!

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A principal book of account is the one having a debit and a credit side into which the

transactions in the subsidiary books are posted! "he principal books of accounts serve as

the final destination of transactions! As a result, they are called books of final entry! "he

main principal books of accounts are cash book and the ledger!

2.5 THE LEDGER

"he ledger is the main principal book of account! /t is in the ledger that the double entry

concept is carried out! "he page of the ledger is divided into two sides 3debit and credit4!

"he volume of business transactions means it will not be advisable to record all

transactions into a single ledger! /t is very convenient to sub0divide the ledger to group

similar transactions into one ledger! "he division of the ledger also allows the practice of

division of labour because different people can be assigned the responsibility of particular

ledgers! "he ledger is therefore divided into two broad categories, that is, personal and

impersonal ledgers!

74 Personal


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"he sales ledger is the personal ledger that contains the individual accounts of a firm&s

debtors or customers! All the customers or debtors of the business have their accounts in

this ledger! /n this ledger, goods sold on credit to each customer are debited to his or her

account and payments received from each customer are credited to his or her account!

Any allowance given to customers by the business is also credited to their accounts! Any

balance on each customer&s account represents the amount receivable by the firm from

the customer!

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book, one account receives the debit of the transaction and another account receives the

credit of the transaction!

B4 $alancing off account and the trial balance After posting, you balance off the account!

"o balance off an account is to find the differences between the debit side and credit sideof the account! "he following steps are followed when balancing an account!

7! Ascertain the total of the debit entries

5! Ascertain the total of the credit entries

@! ind the differences between the results in 7 and 5 by subtracting the smaller amount

from the greater one!

! Put the differences on the side with smaller amount and call it balance carried down

3balance cd4

8! Add up both sides again to make sure that the total of credit and debit are e=ual!

;! Rule off and bring down the balance to the opposite side as balance brought down

3balance bd4

After the process above has been done to all the account in every ledger and the cash

book, a trial balance is prepared! A trial balance is a list of the credit and debit ledger

account balances extracted from the ledgers and the cash book as at a specified time! "he

trial balance is prepared for the following reasons?

a4 "o test the arithmetic accuracy of the record of the transactions in the ledger

b4 "o obtain readily available information for the preparation of financial statements!

4 Ad>ustments for financial statements "he debit and credit sides of the trial balance at

any point in time, is supposed to agree! However, if they fail to agree, it means that there

has been an error or errors in the books! "hese errors have to be corrected before financial

statements are prepared!

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Also, there may be some additional information that re=uires an ad>ustment to be made

on any of the balances in the trial balance before the financial statements are prepared!

"hese ad>ustments must be made in order to arrive at the true balances for the preparation

of the financial statements!

E4 Preparation of financial statement inancial statements are the final account of every

business organi1ation! "hey mainly prepared to show?

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7! )wners, %hareholders or /nvestors "hese people have invested their capital or money

into the business! "hey are interested in the profitability of the business!

5! $anks "hey use accounting information to measure management performance in order

to inform the bank management whether to lend money initially as well as to continue

lending, or to reduce or to stop!

@! Employees Employees are the work force or workers who have been engaged in

various positions in the firm! "hey are interested in accounting information to know

whether the business is making profit or not to be sure of their >ob security and prompt

payment of their salaries!

! $anks "hey are credit granting institutions that extend loans to the business! "hey are

interested in the financial information that will help them know whether their loans will

be repaid with interest when the time is due!

8! 2overnment and its agencies "hese are bodies like /nternal Revenue %ervice and

2hana %tatistical epartment, which need information about employment and tax

assessment!

;! Bustomers "hese people or institutions buy from the organi1ation! "hey are often

concerned with products, prices, =uality, reliability, delivery date, etc! Bustomers may

also like to know whether the business is financially sound to have confidence in it!

2.% $UALITIES OF GOOD ACCOUNTING INFORMATION

/n order for accounting information to be useful to users of the information, it must

possess the following =ualities?

7! Blarity "he information should be in the form, which is understandable by user group!

"hus all material matters should be disclosed without unnecessary complex details!

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5! Bompleteness Accounting information should show all aspects of the business! /f the

information is incomplete users of accounting information will be unable to make sound

>udgements!

@! Relevance Accounting information should be relevant to the needs of the users, so thatit can help them to evaluate the financial performance of the business and to draw

conclusion from it!

! Reliability Accounting information should be of standard that can be relied upon by

external users, so that it is free from error and can be dependent upon by users in their

decisions! "hus the information should be reliable so that conclusion drawn may be #true

and fair&!

8! "iming the information should be prepared and presented to users on time! "hus

financial statements of companies should be published as soon as possible after the year

ends! Bompanies are re=uired to prepare their financial statements annually and this is

important for investors and those advising them, for evaluation purposes!

;! )b>ective Accounting information should is free from systematic or deliberate bias

towards the needs of one user? it should be ob>ective! "hus, it should portray unbiased

views of the firm&s affairs without regard to the interest of particular groups or interested

parties!

2.&ACCOUNTING CONCEPTS

Cood and Robinson 356694, said #& accounting concept is an assumption that underlines

the preparation of the financial statements of the organi1ation!&&

"hese accounting procedures have developed over the years to form the #basic rules of

accounting&!

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"here are four fundamental accounting concepts, which are used in preparing periodic

financial statements of a business as shown below!

F'()*+,(-* *'(-( (,-

2oing concern Bonsistency

Accruals Prudence

G( (,( (,-

"he going concern concept implies that the business will continue to operate for an

unforeseeable future! /n other words, it is assumed that the business will continue to trade

for a long period of time and there are no plans to cease trading andor li=uidate the

business!

A'* (,- 6 +*-7( (,-8

"he accruals concept says that net profit is the difference between revenues and expenses

rather than the difference between cash received and cash paid!

Revenues0 Expenses INet Profit

%ales are revenues when the goods or services are sold and not when the money is

received, which can be later in the accounting period! Purchases are expenses when

goods are bought, not when they are paid for! Ad>ustments are made when preparing

financial statements for expenses owing and those paid in advance 3prepayments4!

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/dentifying the expenses used up to obtain the revenues is referred to as matching

expenses against revenues, which is why this concept is also referred to as the matching

concept!

C(-,(9 (,-

"he consistency concept re=uires that the same treatment be applied when dealing with

similar items not only in one period but in all subse=uent periods! "he concept states that

when a business had adopted a method foe the accounting treatment of an item it should

treat all similar items that follow in the same way when preparing financial statements!

P'),(, (,-

Chen preparing financial statements accountants often have to use their >udgement in

determining the valuation of a particular asset or perhaps deciding whether an

outstanding debt will ever be paid! "herefore, the accountant should ensure that assets

are not overvalued and similarly all liabilities should be identified!

"he prudence concept means that accountants will take the figure that will understaterather than overstate the profit!

OTHER ACCOUNTING CONCEPTS

/n addition to the fundamental accounting concepts and conventions which are followed

when preparing the financial statements!

B'(, ,(--9 (,-.

"he business entity concept implies that the affairs of a business are to be treated as being

=uite separate from the personal activities of the owner3s4 of the business!

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/n others words, only the activities of the business are to be recorded and reported in the

firm&s financial statements! Any transactions involving the owner3s4 are kept separate and

are excluded!

R,*:*-( (,-

"his accounting concept considers that profit should only be included in the profit and

loss account when it is reasonably certain that it has been earned!

H-* - (,-.

"he assets of the business are recorded in the accounting records at cost price, that is the

actual price paid for them, and this is known as the historical cost concept!

M(,9 +,*',+,(- (,-

"his concept states that only transactions and activities that can be measured in terms of

money and whose monetary value can be assessed with reasonable ob>ectivity will be

entered into the accounting records!

M*-,*-9 (,-

"his concept applies when the value of an item is relatively insignificant and as such does

not warrant separate recording! %mall expenditures are regarded as #not material& and

their purchase would not be recorded in separate expense accounts but grouped together

in a sundry or general expense account!

D'* *,- (,-

"he concept whereby all transactions possess two aspects and as such creates

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double entries, one on the debit side and one on the credit side! "he two aspects are

always e=ual to each other /n other words; A,-< *-*=L*>-,

CHAPTER THREE

METHODOLOGY

3.0 INTRODUCTION

"his chapter described the methods and procedures for the study! "hese methods and

procedures comprised the research design, population, sample, sampling techni=ues, data

collection instruments, data collection activities and method of data analysis!

3.1 RESEARCH DESIGN

#&(ou +&& Enterprise was chosen for the study to enable the researcher ascertain whether

proper bookkeeping was kept by the Enterprise! Attention was given to every aspect of

the recording system and records kept so as to identified any causes of lapses associated

with bookkeeping on records of #&()*+&&Enterprise! "he study of the problem gave theresearcher the opportunity to find out how these causes of lapses can affect the

implementation of control systems and influence the way the enterprise functions!

3.2 POPULATION AND SAMPLE

"he population of this study was the entire members of staff of'()* +&& Enterprise

who were directly or otherwise engaged on the bookkeeping records of the organi1ation!"he population embodied the .anagement, Accounts %ection and /nternal Bontrol

%ection of the organi1ation!

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"he sampling consists of twenty 3564 members consisting of the .anagement, the

Accounts %ection together with the /nternal Bontrol %ection! "hese sampling units were

selected to obtain the necessary relevant data to accomplish the study successfully!

3.3 SAMPLING TECHNI$UE

/n selecting the sampling elements, purposive sampling was used by the researcher as a

sampling techni=ue!

/n purposive sampling, samples are chosen because they fulfill certain criteria the

researcher looks for! #&()*+&& Enterprise was chosen because of the number of

employees, si1e of the business and its market share!

3.4 DATA COLLECTION

Primary data was used in the collection of data! Personal interviews and =uestionnaires

were used in gathering data! Personal interviews were chosen to personally interact with

some of the workers of #&()*+ Enterprise so as to obtain valid data on records kept!

/nterviews were conducted personally by the researcher and =uestionnaires personally

designed! Juestionnaires were also used to collect and gather data to know the responses

of some other employees!

3.5 DATA COLLECTION ACTIVITIES AND METHODS

"he researcher designed structured =uestionnaires with both closed and open ended

=uestions! "his was to enable the researcher obtain primary data! "he closed ended

=uestions provided alternative answers whilst the open ended type did not! "he closed

ended type =uestions were used to prevent workers from guessing, as much as possible

and also to prevent them from putting in their personal answers when answering the

=uestions!

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"he =uestionnaires were administered personally to the workers of the '()*+&&

Enterprise by the researcher! /nterviews were also employed by the researcher to obtain

data that might not be available using only =uestionnaires!

3. METHOD OF DATA COLLECTION

"he data obtained were put into simplified tabular forms for analysis and later presented

in a narrative forms!

%ome statistical tools such as percentages, averages and finally some tables were used in

illustrating some of the findings!

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CHAPTER FOUR

FINDINGS? PRESENTATION AND ANALYSIS OF DATA

4.0 INTRODUCTION

"he purpose of this study was to identify bookkeeping of small scale enterprises with

reference to #&()*+ #&Enterprise at "akoradi! $oth the primary and secondary data

collected from the field were in their raw state? therefore to make a meaningful

explanation of these information, the researcher had to put them in =ualitative and

=uantitative forms!

4.1 RESPONDENTS RATE

"he researcher sent out 3564 =uestionnaires representing 766K and fifteen 3784 were

completed and returned representing :8K and 8 being 58K were not returned!

"A$


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E*BA"/)NA<


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4.3 $UESTION 4; #HAT TYPE OF BUSINESS IS OPERATED@

"he researcher asked the type of business that is operated

"A$


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4.DOYOU EVALUATE YOUR MANAGEMENTS PERFORMANCE@

6$UESTION !8

"he researcher asked whether .anagement&s performance is being evaluated!

"A$


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representing ;!;:K! rom the analysis, it can be concluded that the number of staff is

more than 8@!

4.%4DO YOU KEEP RECORDS ON YOUR STAFF@ 6$UESTION&8

"he researcher asked whether staff records are kept!

"A$


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4.10 #HO DOES THE RECORDING@ 6$UESTION 118

"A$


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!7@ #HAT TYPE OF BOOKKEEPING RECORDS IS KEPT@ 6$UESTION 148

"he Researcher asked the type of bookkeeping records that are kept!

"A$


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4.14 ARE ACCOUNTS PREPARED FROM SOURCE DOCUMENTS SUCH AS

PURCHASES INVOICES? SALES INVOICES? AND OTHER INVOICES@

6$UESTION 158

"he researcher asked whether accounts are prepared from source documents!

R). "A$


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4.1! ARE RECORDS KEPT ON ASSETS AND LIABILITIES@ 6$UESTION1%8.

"he researcher asked if records are kept on assets and liabilities!

"A$


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rom table !7+ above, it indicated that the responses received for %%%BECA%%BE, BA

and degree were none 364 representing 6K whilst $% holder was fifteen 3784

representing 766K! /t can be concluded that the person who prepares the accounts is a

$% holder!

4.1& ARE THE ACCOUNTS AUDITED@ 6$UESTION208

"he research asked if the accounts are audited!

"A$


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rom table !55, '(es- was none 364 representing 6K whilst 'No- was fifteen 3784

representing766K!/t can be concluded that '()*+- Enterprise does not have problems

in keeping records!

4.23 DOES RECORD KEEPING AFFECT ALL BUSINESS TRANSACTIONS@

6$UESTION 248

"A$


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SUMMARY? CONCLUSION AND RECOMMENDATIONS

5.0 INTRODUCTION

"his is the last chapter which dealt with the recapturing of the main issues highlighted in

the study! "he chapter contained the summary, conclusion arrived at and

recommendations!

5.1 SUMMARY

"he purpose of the study was to obtain information on how bookkeeping is kept by

#&()*+&& Enterprise! A case study was selected and =uestionnaires were issued to gather

information about the problem! %ome of the summary of the ma>or findings are listed

below

"ransactions from source documents were not put together before the next day!

"he research revealed that expenses paid instantly especially on utilities were not

taken into consideration and for that matter no records were kept of them!

Gust as most small scale enterprises '()*+ 'enterprise follow accepted

accounting standards!

ecisions are taken on the accounts of the enterprise and based on income

statement and balance sheet!

"he research revealed that assessment and evaluation of management were notdone by independent personnel!

5.2 CONCLUSION

rom the research, the researcher concluded that,- ()*+- Enterprise

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APPENDI

TAKORADI POLYTECHNIC

SCHOOL OF BUSINESS AND MANAGEMENT STUDIES

$UESTIONNAIRE

TOPIC; BOOKKEEPING IN SMALL SCALE ENTERPRISES

CASE STUDY; YOU %4 ENTERPRISE? TAKORADI

PURPOSE

"he rationale behind this =uestionnaire is to gather information on the topic mentioned

above, purely for academic purpose!

SECURITY

All information provided will be handled confidentially!

INSTRUCTION

Please tick 34 where appropriate and provide full response where necessary!

PERSONAL DETAILS

74 Age7+05: 3 4 5+0: 3 4 +08: 3 4 Above 8: 3 4

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.otor vehicle 3 4

urniture 3 4

/nventory 3 4

ebtors 3 4

Breditors 3 4

Expenses owing 3 4

Expense paid in advance 3 4

/f No, whyO !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

794 Chat is the =ualification of the person who prepares the accountO

%%%BE CA%%BE Holder 3 4

$% Holder 3 4

egree 3 4

BA Holder 3 4

564 Are the accounts auditedO

(es 3 4 No 3 4

/f yes who audits itO

"he proprietor 3 4

"he accountant 3 4

An independent auditor 3 4

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bookkeeping in small scale industries

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