Accounting is the process of recording
transactions and events for the purpose of proving Information for the good
conduct of the activities of such organization.
The purpose of this study is to examine the
Accounting systems in private and public sector establishment and to know what
accounting is all about, History of accounting Nature and purpose of
Accounting, The operational guideline and attributes of Accounting etc Two organizations will be choosen for the
purpose, that is private and public establishment.
Data will be collected from both primary and
secondary sources, questionnaires and oral Interview from the employees or
management of the organization.
After analyzing the data, the following
findings will be made
The principles of Accounting, procedures and practices in both private
and public establishment.
Different financial statements prepared at the end of an accounting
Different users of accounting Information.
Different financial statements are prepared at the end of the Accounting
The constraints to be encountered as a
researcher are as follows –
Uncooperative attitude of the Employees – it
will not be easy for me to get as much Information as I want because the staff
or employees of these establishments will be afraid of loosing their Job if
they disclose Information without permission.
Inadequate finance – The researcher will not
have enough finance to make the study more extensive by Including more
establishments and traveling outside the town to get Information’s.
Limited time – The researcher will be faced
with the problem of limited because, our time to devoted to other academic work
and as a result of that the researcher have no much time to carry out the
Accounting is the act of recording,
classifying and summarizing in significant manner and in terms of money
transactions and events which are Interpreting the result thereof. (AIC PA 1953).
But in a general sense. It may be considered as a means by which we measure and
describe economic activities. Whether you are managing a business, making
Investments or deciding how to spend your money, you are working with
accounting concepts and accounting Information.
Every business entity, be it private or
government owned operates a business system which can be classified into two
main categories. They are financial and Non – financial systems.
Financial system are primarily concerned with
processing and recording of business transactions, their analysis and
Interpretation with a view to the preparation of periodic and routine reports
for decision making by Interested parties. The accounting systems are also
concerned with efficiency and effectiveness. (Harvey 1991 page 202)
Non – financial systems are those systems
whose main purpose is not financial in nature, even if they have financial
Implications. Thus, the sales system which deals with exchange process has
financial Implications, the transactions are not financial per-se. Non –
financial system cover such functions of an organization as purchasing,
marketing and sales, stock control and production planning. Whether financial
or non- -financial in nature, all these business systems generate and provide
Information for decision making both Internally and externally.
Financial systems have two main sub – system
the financial accounting system and management accounting system. These
accounting system different in nature and procedure from what is obtainable in
government establishment, the system known as government accounting.
Government accounting is the process of
recording, analyzing, classifying, summarizing, communication and Interpreting
financial Information about government in aggregate and in detail reflecting
all transactions involving the receipt transfer and disposition of government
funds and property (Dean 1990: 181). The purpose is to demonstrate the
propriety of transactions and their conformity with established miles to give
evidence of accountability for the stewardship of government resources and to
provide useful Information for the good control and efficient management
resources of government operations.
Government accounting is not the same as
commercial accounting (financial and management accounting) Although both use a
number of technical book keeping and accounting tools and skills. They also
share in some areas the same principles and practice elements as well as
concepts and theoretical foundations. In effect although government accounting
plays a similarly role to commercial accounting, there are basic differences in
concept and approach which affect their nature and objectives. It is against
this background that this study is se to examine the accounting system in two
private establishments and two government owned establishments. The two private
establishments Includes The Nigerian Breweries Plc. 9th mile corner and Hemason
Industrial Complex Emene Whereas, the government establishments are project
development Institute and federal ministry of solid minerals Development,
1.2 PURPOSE OBJECTIVES OF THE STUDY.
The objectives of this study includes
to found out the accounting and financial policies procedure and
regulations encompassing documentation and
To determine the differences in the accounting system of both private
and public organizations.
To examine the various books of accounts kept by the establishment
To found out the types of financial statements prepared at the end of
each accounting period by these establishments.
To determine if they’re accounting procedures conform with the
established accounting standards.
STATEMENT OF PROBLEMS
There are many problems mutating against
efficient system in both private and public establishment some accounting
systems lack clearly defined procedure
authorizations of financial transaction and accounting policies in
respect of recording reconciliation’s
There are also lapses in their accounting and
financial control systems as
Weak as internal planning and budgeting
control. These obvious inadequacies make
such accounting system very inefficient and therefore calls
For an investigation in to nature of
accounting system in the establishments
With a view to establishing their
similarities and differences as well as their appropriateness or otherwise.
1 Are there any purpose of accounting in
Who are the users of accounting information generated?
What are the accounting policies of these establishment in respect
Of authorization procedure regulations
Which books of account are maintained by these establishments?
What type of financial statements to these establishments prepare at the
end of every accounting period?
Are these accounting system in these establishments similar different?
To what extent are the accounting system in conformity with the
established accounting standards?