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Initially, the author's books were written as operating instructions for Noia & Associates Inc. The intention was to prepare concise, to the point guides that would enable employees of little accounting or taxation background to undertake work requiring accounting knowledge without having to undergo hours of training. Further, to perform in less time than that required of existing methods, with consequent reduction in costs. In a later survey of the available accounting/tax books, the author was unable to find practical books suitable for the small businessman. The result was the five books with their unique, practical system. The books may be viewed as solutions to case problems on a step-by-step basis, a method not previously attempted in such an extensive manner; making the books as Professor Harrison said, "Invaluable Guides". The emphasis on the chart of accounts, the elimination of unnecessary journals, and the extensive use of cases and solutions are the principal reasons for the uniqueness of the accounting books. In the tax book, the same approach is used in that cases and solutions predominate, but here, the uniqueness is most striking in the use of actual tax forms and schedules. After all the object of the exercise is to file tax returns. It is surprising that no one else has attempted to teach income tax by the extremely logical and practical method of actually working through the returns and supporting schedules by themselves. The examples used are as broad as necessary to cover all exceptions, limitations, and contingencies that are contained within the act itself. No one individual or corporation will ever encounter all of the variations within one taxation year, but to the student, working his way through the cases used, the materials will provide everything he is ever likely to need in handling many different clients. In addition, the book should prove an invaluable reference source for the serious student of income tax. In summary these books may well revolutionize the teaching methods used in their field by reducing the learning time substantially. They avoid burdening students with the need to memorize material that they are unlikely to find useful later. They teach in a practical concise way that is similar to on the job training, and they leave the students with a guide that will benefit them in the future. From the outset, the books were intended to be self study books, but a major problem with self study is the ease with the very best of intentions. Recognizing this problem, Mr. Noia has added to his books, to adapt them for study by correspondence as well as in the classroom. G. D. Boyd, B. Comm., C.A.
The author of this book has rendered an invaluable service to the business community and bookkeepers by producing a manual/text that will be of great assistance to all those who are involved in the organizing/bookkeeping and running of small corporations.. The procedures to be followed up to and after the time of incorporation are outlined carefully, and the author gives detailed instructions about the way in which various aspects of corporation activity are to be organized.. Small businessmen will particularly be glad of the guidance which Mr. Noia gives in his detailed Chart of Accounts, and will also benefit from the controls which are built into his accounting procedures.. The overall aim of business activity is to show a profit from operations.
If the steps outlined in this book are followed carefully, the small corporation
will be well on the way to success.. R. K. Harrison |
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The first edition of this text was a manual to be used in Noia and Associates accounting practice. At a later date the first edition was supplemented with Appendixes in order to adapt the book as a textbook for the Practical Business Institute, thus the second edition was created. This third edition practicality improved substantially and became more concise to the point than prior editions. Use of this book in Practical Business Institute testing and observing workers, the text become self - learning bookkeeping/accounting using the innovative developed methodology ‘Coach-As-Teacher’. Par
I of this text/self learning book is dedicated to requirements prior
to enter data into The text has been written step by step to enable the interconnection between case, parts, chapters and/or paragraphs by using references to specific matters so you will be able to follow the solution of the problems contained in Part II Chapters. The number of accounts used are limited to the minimum in order to use less quantities of forms, but expansion can be made easily by referring to the Chart of Accounts which shows most necessary transactions and in what journal they should be made. I want to emphasize here that the key to the easy manual and computerized system is with the Chart of Accounts, which shows you how bookkeeping transactions are made and where, and the solution to the case problem on a step-by-step basis. The author wishes to acknowledge and express his appreciation to those who assisted him in reviewing this text. In particular the contribution of the following individuals is gratefully appreciated: R. K. Harrison, Professor of the University of Toronto, who reviewed this book for layman easy learning and system effectiveness. Professor Harrison also wrote the "Preface". -G. D. Boyd, C.A., Bachelor of Commerce, 1st Class Honors of Economics, experienced teacher in McGill University and private vocational schools. Mr. Boyd assisted in the adaptation of the first edition to a textbook "Second Edition" and reviewed this edition. Mr. Boyd also wrote "History". R. Maduri, A.P.A., C.T.S., Member of the Institute of Accredited Public Accountants of Saskatchewan and the Institute of Tax Specialists of Ontario. Mr. Maduri reviewed the final edition. Manuel G. Noia,
C.M.A. DEDICATION This book and all the founder practical textbooks, manuals and how to books applying innovative self or assisted coach learning methodology are dedicated to the young generations through the ages. In particular those who have completed their education, but have a hard time lining up a job because the prospective employers tell them "you have no practical on-the-job experience. Most of all, it's dedicated to all students who take the practical courses in class, by correspondence or by self study. Hopefully, the author's books will help all students who take the courses to get a job faster, since the author's idea is to offer practical courses using the innovative methodology, which simulates "on-the-job" training techniques.
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ASSIGNED READING AND HOMEWORK
Note: Assignments are located at the end of each chapter.
Lesson No.1 Business Operation Requirements – Introduction
and Sales
Assigned Reading: Part I, Chapter 1-2;
Homework: Part I, Chapter 2, Lesson 1;
Lesson No.2 Business Operation Requirements- Disbursements
Assigned Reading: Part I, Chapter 3;
Homework: Part I, Chapter 2, Lesson 2;
Lesson No.3 Accounting Principles
Assigned Reading: Part II, Chapter 1;
Homework: Part II, Chapter 1, Lesson 3;
Lesson No. 4 Chart of Acounts
Assigned Reading: Part II, Chapter 2;
Homework: Part II, Chapter 2, Lesson 4;
Lesson No. 5 Sales and Cash Receipts Journal
Assigned Reading: Part I, Chapter 3;
Homework: Part II, Chapter 3, Lesson 5;
Lesson No. 6 Cheque Disbursement Journal
Assigned Reading: Part I, Chapter 3 and Part II, Chapter 4;
Homework: Part II, Chapter 4, Lesson 6;
Lesson No. 7 Payroll andRelated Functions
Assigned Reading: Part II, Chapter 5;
Homework: Part II, Chapter 5, Lesson 7;
Lesson No. 8 Adjustments and Maintenance of General Ledger
Assigned Reading: Part II, Chapter 6 ;
Homework: Part II, Chapter 6 + 10, Lesson 8;
Lesson No. 9 Controls Accounts – AR, AP Bank Reconciliation
and Property
Assigned Reading: Part II, Chapter 7;
Homework: Part II, Chapter 7, Lessons 9;
Lesson No. 10 Financial Statements and Revision
Assigned Reading: Part II, Chapter 8;
Homework: Part II, Chapter 8, Lessons 10;
Self - Learning - Part III
o Partnerships
o Corporations Versus Personal Business
Learning Basic Course Example - Bookkeeping Preparation for Computers
[1] Read carefully Foreword, Methodology, Course Schedule
and other introduction after each text index.
[2] Follow each assignment location from schedule to text.
Basic course home assignments are at the end of o each assigned study chapter.
[3] Follow each assignment study chapter to text, read
the chapter carefully, then learn the case or portion as follows:
a. Read the first exercise's question
and follow it step by step to the question solution.
b. Read again the question number
but this time block the answer, then think about that specific answer and
uncover the answer to
check
accurate thought.
c. If you do not have imagined
the correct answer read the same question again until you know the correct
answer
d. Repeat two steps above for
each question and answer until you complete the chapter study.
e. Solve in scratch paper the
exercise case without looking at the answers, and then check your answers
and learn from your
mistakes.
f. When you know the correct
answer to case, then you are ready to prepare the home assignment. Follow
similar steps for each
lesson.
Preparing Basic Course Home Assignment Steps
[1] Write the assignment in Scratch Paper first and
review it.
[2] Write the assignment in the working papers following
questions through your work above and complete the assignment.
[3] Complete the assignment cover sheet and staple each
assignment to you assigned work.
[4] Mail or Handling Assignment (Not required if you don't
want to earn a Diploma):
At least two Basic Assignments should be mailed to coach every other Monday with a full computer course final exercise result print out taken during past two weeks. For optimum results practice each chapter 3-4 hours per day during ten working days consecutively. Classroom assignments are usually handled to coach.
[1] Receives the assignment.
[2] Verifies assignment against correct
guide and marks correction with a red pen, then assigns mark and write remarks
in the cover sheet, if any.
[3] Files the bottom part of cover
sheet with student papers.
[4] Coach evaluator returns the
assignment to student attached to upper part of cover sheet. When you receive
back the assignment review it and learn from your mistakes, if any.
[5] Coach prepares Certificate or
Diploma and mails it to student.
COMPUTER Course Steps by Coach:
[1] Receives the assignment from
self learning or CORRESPONDENCE full course printouts together with Basic
course assignments.
[2] Checks PRINTOUTS and assigns’
marks.
[3] Files the bottom part of cover
sheet with student papers.
[4] Returns only the upper portion
of cover sheet with remarks, if any (Unlike the basic course print out is
not returned to student).
[5] When diploma curriculum is completed
the coach prepares the Diploma and mails it to student.
Each Basic course assignment evaluation fee is $15 per assignment and each complete computer complete course (about 10 Chapter) is $35. Since you should mail; 2 Basic Assignments every two weeks with a complete computer course printout, attach a cheque for $50 dollars payable to CourseWare.ca Inc. to the biweekly mail package.
TABLE OF CONTENTS
FOREWORD I
PREFACE II
ISTORY III INNOVATIVE LEARNING METHODOLOGY 'COACH-AS-TEACHER' IV
ASSIGNED READING AND HOME WORK V
LEARING METHODOLOGY IV
Learning Basic
Course Example - Bookkeeping Preparation for Computers V
PART I BUSINESS OPERATION REQUIREMENTS
Chapter 1 - Cover Sheet 1
Introduction to Accounting/Bookkeeping 2-3
Disbursements 3
Need for Business Records 4
Chapter 2 - Sales Collections and Related Functions 5
Introduction to Sales and Related Functions 5
Control of Cash Balance 6
The Variety Store Case and Solution 6
Control of Daily Sales 7
Daily Sales ad Cash Receipts Report - Variety Store 8
Reconciling Equality of Debits and Credits 9
X Enterprises Sales and Collections 9
Invoice - Sales 10
Invoice Distribution Example Steps Case 10
Daily Sales and Collection Report Sample 11
Summary of Debits and Credits 11
Entering Data from DSCR 12
Sales and Cash Receipts Journal 12
Note About Account Numbers 12
Journal Versus Supporting Source Data 13
Sales Journal (SJ) Sample 13
Cash Receipts Journal (CRJ) Sample 13
About the SJ and CRJ 14
Accounts Receivable Record Sample 14
Manual Versus Manual System - Sales and Related Function 14
About Provincial and Federal Sales Tax 14
Canadian Federal Tax Peculiarity 14
Payment of Sales Tax 15 Repeat to Learn 16
The Thoughtful Guy 17 Lesson #1 Assignment 18
Chapter 3 - Disbursements, Petty Cash & Related Function 19
Introduction to Payments & Related Functions 19
Payments Preparation Steps 19 Payments Preparation Steps 19
Supporting Documents Summary 20 Computerized System Note 20
Classifying Job - Accounting 20-21
Petty Cash Steps 21 Learning Petty Cash 21
Petty Cash Fund Explained 21 Payment by Cheque 22
Cheque and Stub 22 Preparation of Payroll Cheques 23
About Payroll 23 The Payroll Cheque Case
23 Payroll Deductions Tables 24 Tax Table Example 24
Tax Exemption Example 2 CPP an UI Tales Example 25
Statement of Earnings 25
Voucher System 26-28
The Payment Voucher 27
The Voucher Versus Cheque Stub 28
The Attention Loop 28 Lesson #2 Assignment 29
PART II BOOKKEEPING 31
Part II Cover Sheet 30
Chapter 1- Introduction to Bookkeeping/Accounting Principles 31
Specialized Field of Accounting 31
Accounting Principles 33 Accounting Equation 34
Explanation of Accounting Captions 35-37
Explanation of Accounting Terms 35-37
Rules of Debits and Credits 33
Assets - Explanation 35 Fixed Assets - Explanation 35
Other Assets - Explanation 35
Liabilities - Explanation 36
Owner's Equity - Explanation 36
Sales 36
Cost of Goods Sold 36
Operating Expenses 37
Other Income/Other Expenses- Explanation 37
Rules of Debits and Credits 38
Easy Case and Solution 38-46 Solution - Manual 39-42
General Ledger Sample 41
Trial Balance Sample 45-46
General Ledger - Case solved 45-49
General Ledger 41-44
Trial Balance -Case 49
Smith Company Balance Sheet 47
Smith Company - Income and Expense Statement 48
Closing Entry 49
Post Closing Trial Balance 49
Case -Solved Step by Step using learning Methodology 50-55
Effective Accounting Learning Exercise 50-55
The Accounting Learning Guy 50
Effective Learning Steps 50
The Learning Watching Loop 51
Required Self-Exercise 56
Correcting Errors 56 Lesson #3 Assignment 57
Chapter 2 - Chart of Accounts 58
Introduction of Chart of Accounts 58
Computerized System Chart of Accounts Importance 58
Accounting Sets of Books 59
How to Use a Chart of Accounts 59
Finding Transaction Account Numbers 60
The Paper Mess Case 61
Remembrance 62
Note About Organized Accounting 62
The Question Guy 62
Approach to Solution 63
Accounting Steps - Case 63 Case Questions 64
Bank Statement Information Case 64
Bank Statement Sample 65
Approach to Solution 65 Income and Expense Statement 65
The Balance Sheet 66
Analysis of Statements 66
Introduction for Computerized or Manual Accounts 67
Using the Computerized of Manual Account Numbers 67
Comparison of Manual Versus Computerized System 68
Chart of Accounts - Descriptive 69-79
Transaction Examples for Each Account 69-79
Numerical Order Accounts Explained 69-79
Chart of Accounts 80-81
Practical Accounting Software List and Lesson #4 Assignment 82-83
ChApter 3 - Sales and Cash Receipts Journal (SCRJ) 84
Introduction To Sales and Cash Receipts Journal 84
Sales Journal 84 Cash Receipts Journal 84
The sales and Cash Receipts Journal 85
Sales Discounts 85
Portion of the General Case and Solution 86
Entering Data in the SCRJ 87-89
Sales and Cash Receipt Journal Completed - Manual System 87-88
Daily Sales and Collection Report 89
DS&CR Data Entry Source 89
Sales Journal - Alternative Journal 90
Cash Receipts Journal - Alternative Journal 90
Comparison of SCRJ and SJ+CRJ 90
Sales as Collected Case and Solution 91
Lesson #5 Assignment 92
Chapte 4 - Cheque Disbursement Journal (CDJ) 93
Introduction to Payments & Related Functions 93
CDJ maintenance Steps 93
Computerized System Note 93
Voucher Register Steps 94
Cheque Register Procedures 94-95
System Choice 94-95
Characteristics of Alternative Systems CDJ versus VR+CR 94
Continuing General Case and Solution 95-96
The Completed Cheque Disbursement Journal 97-98
Adjusting and Matching System 99
Voucher Register and Cheque Register Highlight 99
Entering Data From the Voucher or Stub of Cheque 97-98
Lesson #6 Assignment 100 5
Chapter 5 - Payroll and Related Functions 101
Introduction to Payroll 101
Canadian Payroll Procedures 101
About Payroll Anywhere 101 Payroll Deduction Tables 102
Preparing Canadian Payroll Steps 102
Employees Tax Exemption Table 102
Income Tax, CPP and UIO Assimilated Tables 103
Maintenance of Payroll Records Summary 104
Payment of Employees Tax 104
Tax Payment formula 104
End of Calendar Year Controls and Reports 105-114
Labor Laws 105
Unemployment Insurance 105
Payroll Tax Remittance Assimilated Form completed 106
Continuity of Payroll Case and Solution 107114
Employee's Earning Records 109-110
Payroll Summary 111-112
T4 113
T4 Cover Sheet 114
Lesson #7 Assignment 115
Chapter 6 - Adjustments & Maintenance of the General Ledger
and ACJ 116
Introduction to General Ledger 116
Computerized Option 116
General Ledger Procedures 116
Continuity of the General Case and Solution 117
Maintenance of GL Steps 117-118
Introduction to ACJ 119
Continuity of ACJ Case and Solution 119
The ACJ and Trial Balance Solution 119-121
Smith Company Case Trial Balance 120-121
Approach to Trial Balance Steps 121-122
Adjustments - Year-End 123-124
The Adjustments Steps 122-124
Tracing the GL Entries 125 General Ledger- Complete 125-131
Lesson #8 Assignment 132
Chapter 7 - Control Accounts Maintenance 133
Introduction to Control Accounts 133
Reconciliation of Bank Account Steps 133
Reconciliation Case and Solution 134
Bank Statement for Case Reconciliation 135
Reconciliation Form and Bank Reconciled 136
Bank Reconciled Innovative Approach 136
Introduction to Accounts Receivable 137-138
Accounts Receivable Subsidiary Ledger 139 A
ccounts Receivable Age List 140
The Peace Bird 140 Statement of Accounts 141
Continuity of Case Solved 141
Introduction to Accounts Payable 142
Accounts Payable Timesaving System 142-143
Accounts Payable Ledger 144
Property Register Procedures 145
Property Maintenance Steps 145
Depreciation 146 Property Register 147-148
Lesson #9 Assignment 149-150
Chapter 8 - Financial Statements 151
Introduction to Financial Statements 151
Conclusion 152 Balance Sheet 153
Statement of Income and Expenses 154
Accounts Receivable Schedule 155
Innovative Assignment #10 156
PART III DEPARTMENT BRANCHES, PARTNERSHIPS CORPORATIONS 157
SELF-LEARNING PART 157
Chapter 1 Partnerships 157
Introduction to Partnership 157
Partnership Legislation 158 Partnership Agreement 158
Distribution of Partnership Income 159
The Partnership Illustrative Case and Solution 160-163
The Partnership Dissolution Case 163
Partnership Conclusion 163
Partnership Agreement Format 164-165
Self-Learning Assignment 165
Chapter 2 - Corporations Versus Personal Business 166
Introduction to Corporations Difference 166
Peculiarities of Corporations 166
Corporations Versus Partnerships 166
Definition of Corporation Terms 168-169
Transaction Applicable to Corporations Only 170-171
Self Learning Assignment 171 Alphabetical Order Index 172
