CXC CSEC Principles of Accounts (POA) exam guide: Section 10: Accounting for Corporations (Limited Liability Companies)



CXC CSEC Principles of Accounts Exam guide: Section 10: ACCOUNTING FOR CORPORATION (LIMITED LIABILITY COMPANIES)

CXC CSEC Principles of Accounts Exam Guide

Section 10: ACCOUNTING FOR CORPORATION (LIMITED LIABILITY COMPANIES)


SPECIFIC OBJECTIVES

The students should be able to:

CONTENT
1. Identify the essential features of a limited liability company;

Nature of limited liability companies; public and profit.

2.

Outline the advantages and disadvantages of a limited liability company in relation to sole proprietorship and partnership;

Advantages and disadvantages of limited liability companies.

3. Describe the various methods of raising capital available to limited liability companies;

Methods of raising capital – equity (preference and ordinary shares), debt (debentures, bank loans)

 

4. Prepare journal entries to record the issue of shares and debentures;

Issues of shares and debentures.

5. Identify the various components of shares and the rights of the owners of each type of share;

 

Types of shares; rights and privileges of owners of each types of share.

6. Identify the various components of shareholder’s equity;

Elements of shareholders' equity: share capital, reserves.

 

7. Calculate dividend payments for various types of shares; Calculation of dividend payments.

8. Appropriate profits between dividends and reserves; Appropriation of profits (dividends and reserves).

 

9. Prepare the final accounts of a limited liability company; Final accounts of limited liability companies.

 

10. Analyze performance and position using ratios; Calculation and interpretation of accounting ratios.

 

 


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