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Chapter six: Royalties accounting ...................................................................... 159
Concept of royalties ............................................................................................ 159
Accounting entries in the books of lessee .......................................................... 174
Chapter summary ................................................................................................ 189
Revision Exercise ............................................................................................... 190
FOR ONLINE READING ONLY
Chapter seven: Accounting of non-current assets .............................................. 193
Nature and types of non-current assets ............................................................... 193
Measurement of non-current assets .................................................................... 194
LANGUAGE EDITING
Nature and objectives of depreciation ................................................................ 200
LANGUAGE EDITING
Causes of depreciation ........................................................................................ 203
Methods for estimation and accounting for depreciation ................................... 204
Depreciation provisions and the replacement of assets ...................................... 212
Recording of depreciation in books of accounts ................................................ 213
Disposal of property, plant and equipment ......................................................... 215
The nature of disposal of property, plant and equipment .................................. 215
Effect of change of depreciation methods ......................................................... 225
Chapter summary ................................................................................................ 225
Revision exercises .............................................................................................. 226
Chapter eight: Hire purchase accounting .......................................................... 231
Definition and nature of hire purchase agreements ............................................ 231
Why do entities opt for hire purchase agreement? ............................................. 234
Calculation of interest on hire purchase ............................................................. 235
Accounting entries for recording hire purchase transactions ............................. 245
Repossessions of assets ...................................................................................... 256
Financial statements on hire purchase ................................................................ 264
Chapter summary ................................................................................................ 269
Revision Exercise ............................................................................................... 269
Student’s Book Form Five
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ACCOUNTANCY_DUMMY_23 JUNE.indd 5
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