CHAPTER ONE
1.0 INTRODCUTION
Accounting can be defined as an act recording
classifying, summarizing and reporting of business transaction for preparation
periodic statement of performance and caused to provide information to
management for decision making.
It’s an act of controlling a business by keeping
records, preparing form those records certain statistics called ‘ accounting
ration” and using those rations to detect financial difficulties before they
become serious and uncontrolled so that certain measures may be taken.
One of the objectives of a business is to make a
profit and we defined a profit as a
function of how the resources of
the business in terms of manpower, raw
material, capital are employed. One of the chief aims of accounting is to
reveal whether or not a business is been conducted profitably.
Accounts, collects from those which relates to past
performance and termed is historic accounts and prepared for stewardship
purposes that is satisfy in the shareholders, government, creditors as well as
the public as large, that the business has been conducted honestly and
efficiently over the period of which the account is related.
This aspect is called financial accounting.
Management of an organization rely on a sound
accounting system to achieve the following:
i.
Preserve and
control the operation of the organization.
ii.
To prepare a
reliable financial statement.
iii.
To ensure
proper, firmly and desirable allocation of funds to its’ different sections
etc.
Allocation of fund to it’s different sections,
accounting system enables for orderly preparation and preservation of
accounting data and appropriate analysis for the preparation of a reliable
financial statement. Any organization without an accounting system is on the
verge of collapse. The importance of accounting system cannot be over
emphasized.
1.1 HISTORICAL BACKGROUND
The motive that underlined this project is to probe
into modern rules of accounting system of the federal radio cooperation of
Nigeria (FRCN) with the aim of finding out whether it is efficient and effective
as planned working out the system compared to the size of the organization.
Further more, the station has gone through
different names before it finally attained it’s present name as the federal
radio cooperation of Nigeria Kaduna. It was first known as the broad casting
company of Northern Nigeria Limited (BCNN). It was established as a radio and
television broadcasting state from which it’s formal name was radio, television
Kaduna (RTK) was derived.
The
cooperation has gone through a lot of various government changes since the
station was formed, e.g. The nineteen Northern state of Nigeria
In the year 1976, the federal military government
took over the television aspect of the station, the present Nigerian television
authority, as that part of incorporated into it and while northern states
continues with the maintenance of the radio cooperation.
In addition, the corporation source its’ fund from the government under that act
that established the existence of the cooperation the act state. If that
corporation should establish a fund which shall be provided to it by government
of the federation for smooth running of its activities that is all the expenses
of the corporation and shall order assets form time to time that the
corporation might need.
A methods was developed as how this fund should be
accounted for and where and what the fund have been used for. The method
introduced is the accounting code. This coding schedule helped and specified
where and how expenditure have been incurred.
Each department is a budget centre and expected to
prepare it’s budget and pass it to the
budget control committee to it merger with the other sub budget
for their flow of funds.
Currently, the cooperation has been allowed by the
federal government to do commercial services which were stopped by the
government some years back. It is to enable the cooperation raise money instead
of depending solely on government subventions which usually come every month
after the returns to the preview expenditure which has been sent to Abuja
The fund raised is as a result of commercial bank
account which makes the account to be
accommodated without withdrawal of the account is to enable. The government
know how much the corporation can generate a substantial amount which is
reasonable, the government makes it policies that such a corporation will be
expected to maintain itself and as such should not enjoy form government
subventions. the cooperation will be expected to maintain itself with the money in the account
to refuse the inflow from government and to concentrate partly on the
commercial fund.
More so, the responsibility in the account
department of the corporation being with the chief executive of the zone as the
managing director and he reported to the director general at the headquarters.
The deputy dissector assist the managing director closely followed by the
assistant director who reports to the
deputy director on their department policies and also reported to the managing
director.
Assistant director for finance, he supervises and
coordinates the whole activities of the department, proposes operational
activities and development to suit the department. He makes reports on the
activities of the department and individuals of the department to the managing
dissector to a positive control and also on the prospect of their decision to
the director general and the chief accountant.
i.
He is the head
of account.
ii.
He makes sure
polices of the department are followed and he initiated some policies.
iii.
He introduces
the accounting procedure to be followed in times with accounting principles.
iv.
He is the zonal
adviser on financial maters funds in the corporation.
v.
He is in charge
of the budget and budgetary control.
1.2
STATEMENT OF PROBLEMS
There is that basic fact that the present economic
recession periods need proper accounting for every kobo that the government may
spend likewise the inflow and outflow of funds for that
reason, there is the need for a sound accounting policy or system has been
emphasized and carefully followed up by the department concentrated with the
control of finance of any organization whether public or private sector.
When the accounting procedure has been laid down
and followed properly and effectively. It could cut out redundancy programmes
or expenditure and there by creating some substantial amount of savings.
It is therefore, of a great concern that the
reservations made which followed the general claims that the accounting system
are not kept properly inmost of the public sections or corporations, where
large sum of public funds are pumped. In a year.
Research should go some extent to find out why or
what is the principal factors that courses these ineffectiveness in public
corporations, improper keeping of accounting records. The contribution in this
research is not to fetch the researcher but will be able to federal radio corporation Nigeria
Kaduna federal and state government education circle and the public in
general.
1.3
STATEMENT OF HYPOTHESIS
Ho: Accounting
does not help in the proper record keeping for a
corporation.
Hi:
Accounting helps to plying vital role in the keeping of proper
records for the corporation.
In this case
we say that Ho is accepted and hi is rejected.
As a result of guidance of this study, the writer
will evaluate the problem so tested by using assumption and intelligent guess
statement. This assumption are the variance in the accounting system.
1.4
AIMS AND OBJECTIVES OF THE STUDY
i.
To know the
types of accounting system in operation and to be able to come out with a
conclusion that will neither be negative or positive.
ii.
To also aim at
knowing the section where the account system is inadequate or not accountable at all then make likely possible
recommendation that will be useful to be organization.
iii.
To also find cut
whether or not proper attention are paid towards financial transaction,
maintenance or accounting records and internal control system use carried out
in accordance with the laid down rules and regulations of accounting standard
policies as stipulated in the system (SAS).
iv.
To find out how
the accounting information will be useful to the third pasty.
v.
To identify
areas of ineffectiveness in the accounting system, with a view of recommending
corrections.
vi.
Analyzing the
entire accounting system of the organization
1.5
SIGNIFICANCE OF THE STUDY
The significance of this study is to high light the
effectiveness or otherwise of the accounting system of public corporation.
This study would enable the department up date
itself with accounting system.
-
Procedures of
keeping record and related information concerning the organization
finances.
-
The study would
also highlight areas of weakness in the control system or otherwise.
-
It would be of
prime guide to the employers and the third party to have knowledge on the
system of keeping and maintaining records of the account and to establish a
relationship between the finance department and other departments in recording
financial transactions.
Finally, the study will make useful suggestion on
the accounting system of financial reporting and management information flow in
the organization.
1.6
SCOPE OF THE STUDY
The project seeks to highlight the modern vales of
accounting system in public corporations. In order to enable readers to under
stand and benefit from the operations of public corporation.
Further more, it is the intention of this project
to bring into lime light the problems faced by accounting system in public
corporation (old system of accounting ) and to find the lasting solution to the
problems.
1.7
LIMITATION OF THE STUDY
To undertake a research work is not an easy task,
the researcher has to encounter one problem or the others, the researcher faced
some problems in the cause of carrying
out this exercise among the major problems faced include the following:-
MONEY
The cost uncovered for carrying out this project is
not a small amount. As a result of this the student carrying out the research
could afford money and so the. Study was narrowed down.
TIME
The research is a very important aspect of academic
programme of the polytechnic but still the researcher has to share the limited
time available to meet some of their equally important academic work. The
period to the project coupled with other academic exercise is not enough for
the study of this type. The best use the available time was however made by the
researcher.
1.8
DEFINTION OF TERMS
i.
Budget centre:- This refers to how the organizational department prepares it’s
budgets.
ii.
Accounting codes:- Is the method by which account are number.
Budget control committee:- Those responsible in conditional and planning
the preparation of budge in the cooperation.
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