Introduction to Company Accounts

Contents / notes

• Formation and classification of companies
• Issue of shares and debentures
• Final accounts of companies: statement of profit or loss
• Final accounts of companies: statement of financial position
• Accounting ratios
• Distinction between capital and revenue reserves

Candidate objectives

• Differentiate between types of companies.
• Identify the procedures for accounting for the issue of shares and debentures.
• Compute the elements of final accounts of companies.
• Compute and interpret Accounting ratios such as current ratio, acid-test ratio and stock turnover.