EVALUATION OF THE ACCOUNTING SYSTEMS USED BY SMALL SCALE ENTERPRISES IN NIGERIA A CASE STUDY OF P. A. TABLE WATER UGHELLI

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ABSTRACT

The study evaluated the accounting systems in use by small scale enterprises operating in Enugu south east of Nigeria. The study was necessitated due to high rate of small scale enterprises failure. The population of the study consists of 242 accounting officers and proprietors of small scale enterprises operating in Enugu. 148 respondents were selected through simple random sampling techniques. The instrument employed for the study was a structured questionnaire four research questions and one null hypothesis tested at 0.05 level of significance guided the study. Data were analyzed using mean and standard deviation and t-test summary of the results revealed that seven accounting systems were available for use to small scale enterprises use the single entry system of accounting and that keeping of proper accounting records enhance profitability. It was concluded that there was correlation between proper records keeping and profitability of small scale enterprises. It was recommended among other things that the ministry of commerce and industry should help the small business owners to avail themselves the opportunity to the use accounting system that are relevant for the day to day reporting of their business transaction.

TABLE OF CONTENTS
Title i
Approval ii
Dedication iii
Acknowledgement iv
Abstract vi
Table of contents vii
Chapter One – Introduction
Background of the study 1
Statement of problem 3
Objective of the study 3
Significance of the study 4
Research Question 4
Scope of the Study 5
Limitation of the Study 5
Definition of Terms 5
Chapter Two – Literature Review
Introduction 8
What Accounting is all about 8
Information Contact of Financial Account 11
Trading, Profit and Loss Account 14
Classes of Accounting 15
Decision Making 24
Statement of Changes in Financial Position 25
Argument for Accounting Standards 27
Accounting Concepts 27
The Conventions of Accounting 29
Chapter Three – Research methodology
Introduction 32
Sources of Data 32
Population 33
Sample Size 34
Questionnaire Administration 34
Validation of Instrument 34
Reliability 35
Chapter Four – Data Analysis and Presentation
4.1 Introduction 36
4.2 Data Presentation 36
4.3 Result of Findings 42
Chapter Five – Summary Conclusion and Recommendations
5.1 Summary 44
5.2 Conclusion 45
5.3 Recommendation 45
5.4 Suggestions for Further Study 46
Bibliography 47
Appendix 48
Questionnaire 49

CHAPTER ONE

INTRODUCTION

Background of the Study

There is no accurate account when accounting started. However, available information showed that, the system of record keeping can be traced back to the early civilization of the body lanai and Assyrian were every body has the method of keeping record by making the warehouse, store papyrus and was tables. Papyrus paper as we know was the paper used, in Egypt to start the art of financial record keeping was primitive in 1494, an Italian Monk and month metical know as Luck Pacia introduced the double entry book keeping system in terms of accounting records to mean that all entice must have a debtors and a creditor. At this time, record s were only prepared for business in statement form and not for the owners, the yearly was still not in place. After the development by the double entry system by Luck Pacio, the profit and loss account was advocated by a detachment which should be prepared on a yearly interval, the emerging civilization and technological development o the recent day modern accounting method during the industrial revolution which bought about industrial innovation, more sophist satiated or complex accounting methods were introduced hence the information of the professional accountancy bodies, for example;
Institute of chartered accountant of school formed in 1854.

Institute of chartered accountant end land and Wales was formed in 1880.
Association of certificated public accountant in use was formed in 1887 as new method of accounting were development ownership was separated from management since, the discovery of the double entry system.
In Nigeria findings of records was made by kingdoms, empire, individual, etc. in all. There art of modern record keeping come to being with the advent of the Royal Niger Company , the Nigeria accounting record keeping favoured the same with the establishment of the institute of the chartered accountants of Nigeria of chartered accountants of Nigeria is responsible for the Nigeria regulation of produced and parties of nationwide accountants of Nigeria was signed, at the time of writing a bill is before the passage of another accounting body know as certificate public accountant (P.A) of Nigeria.

EVALUATION OF THE ACCOUNTING SYSTEMS USED BY SMALL SCALE ENTERPRISES IN NIGERIA A CASE STUDY OF P. A. TABLE WATER UGHELLI