IMPROVING THE EFFECTIVENESS OF ACCOUNTING SYSTEMS IN PRODUCTION INDUSTRIES IN NIGERIA
A CASE STUDY OF PATERSON ZECHONIS INDUSTRIES PLC ABA
The study was organized in five chapter I
In chapter one the researcher introduced the topic under different sub heading such as background of the study statement of problems purpose of the study research question testing of hypotheses delimitation of study and scope etc.
A review of related literature was done in chapter two to find out what other view are on the problem from the research it was revealed that pz industries has an effective accounting system which the maintained.
Her accounting procdutive and principles was based on accrued basis.
Chapter three presented the research methodology employed to achieve the purpose of the study. It discussed the preliminary search for relevant information data collection description of population and sample size instrument used for data collection and method of application design of questionnaires and administration the formation of all null hypothesis
Chapter four dealt with data presentation analysis and interpretation.
Chapter five has to do with restatement of the problem summary of the producers used summary of findings conclusion and recommendation.
This is to certify that the project had been read and approved as an original work written by Okpo Mary U. and submitted in partial fulfillment of the requirement for the Award of Higher National Diploma in Accountancy
Head of Department Date
External examiner Date
TOPIC TYMPOROVING THE EFFECTIVENESS OF ACCOUTING SYSTEM IN PRODUCTION INDUSTRIES IN NIGERIA.
(A CASE STUDY OF PZ INDUSTRIES PLC ABA)
Most of the production industries have actually collapsed because of inadequate and ineffective accounting system in the accounts department of production industries.
The growth of any countries industries depends on the level of her accountability to a large extent to the success of the industries. There fore this project is aimed at identifying and describing the need for an effective accounting system in the accounts departments of production industries.
As a background for the project the effectiveness of accounting system in production industries with particular reference to Paterson Zochonis industries Plc Aba B reviewed.
The project will illustrate the strength and weakness of accounting system in Pz industries Plc Aba to enable us known its effectiveness.
This study is also undertaken to evaluate the accounting policies of this industry with the view of improving their accounting system and control.
The research will be conducted the production manager and other workers in the department will be interviewed for more information. Also through the use of questionnaire which will be prepared and sent to respondents in the selected offices named above.
The constraints to be encountered include money time and cooperation of the employees. The recommendation is to ensure that available resource are used to perform their function there must be proper accountability. This is provided by the accounting system and policies adopted by this industry.
Also staff should computer literate since account department is computerized and it saves time and staffs should be sent for professional training from time to time
Title page i
Approval page ii
Table of content vi
List of table /figures ix
1.1 Background of the study
1.2 Statement of problem
1.3 Purpose of study
1.5 Delimitation of the study /scope
1.6 Significance of the study
1.7 Assumption of the study
1.8 Definitions of terms peculiar to the study
2.0 Literature review
2.2 Definition framework of an accounting system
2.2.1 Conceptual design of an Accounting system
2.2.2 Component of an accounting system
2.2.3 Revenue recognition and income reporting
2.2.4 Nature of revenue
2.2.5 Revenue recognition
2.3 Accounting control in relation to the accounting system
2.3.2 Budget system
2.3.3 Types of budget
2.3.4 Budgeting control system
2.4 Computer accounting
2.4.2 Application of spread sheet
3.0 Research methodology
3.1 Research design
3.2 Areas of study
3.3 Population of the study
3.4 Limitation of the study
3.5 Implication of the study
3.6 Instrument for data collection
3.7 Method of data collection
3.8 Method of data of data analysis
4.0 PRESENTATION ALAYSIS AND INTERPRETATION OF DATA
4.1 Analysis of number of questionnaire sent out and returned.
4.2 Analysis of research question
4.3 Results of testing of hypothesis
5.0 Summary conclusion and recommendation
5.1 Summary of findings
Te pre requisite for development scientific advancement and adequate management of any business organization is good information system. It is vary important to note that inadequate information in any production industry can influence its activities. A highly productive and organized industry will ensure that the business continues in existence by providing adequate information system.
An accounting system consist of the personnel procedures devices and records used by an organization to develop accounting information and to communicate this information to decision makers. The design and capabilities of these system vary greatly from one organization to the other. In very small business the accounting system may consist of little more than a cash register checkbook and an annual book to an income tax payer. But in large business like production industries an accounting system includes computers, highly trained personnel and accounting reports which affect the daily operations of every department.
The basic purpose of the accounting system in business establishment is to meet the organization need for accounting information information as efficiently and effectively as possible it is therefore important that every business including production industries with much emphasis on Paterson Zucchinis Aba be evaluated to know if there is proper accounting system or if there is more.
Paterson zochonis since inception has made huge success both in the past and present. Although during the first word war they were faced with a square test as young as they were then but as a result of their royal and commited team of employees the business survived.
This research work objective is delving into the utilization of fund and the general accounting and financial control system of production industries with a view of improving the effectiveness of their accounting system of an industry.
1. The appraisal of the performance of Paterson zochonis industries Plc (pz) and to determiner the use of its accounting and financial control measures
2. Evaluation of the information provided by the accepting system as they are useful for decision making.
3. The evaluation of the information system with the view to identify the sources and measure for investment in thee industry.
The story began in the early 1870, a period many enterprising Europeans started their adventure into the west coast of Africa. George H. Paterson, a high hard Scot and George is zochonis a Greek worked together in the wholesaler ship of small trading company fisher and Randale art scoans Bay free town a sierra Leone. So after their meeting a strong friendship developed between these two people out of shared interest and ambition come to lime light when they set up a trading post of their own. Its official name was simply Paterson zochonis,”
1.2 STATEMENT OF THE PROBLEM
A significant proportion of any company yearly budget allocation is being brought into the development and improvement of the company objective. The main objective or aim of any organization is profit making. It is wise to say that these production industries are established for profit making.
Quite a number of people has seen the ineffectiveness and down fall in the activities of some production industries this may arise as a result of poor management inadequate manpower lack of qualified employees or inadequate funding. Meanwhile much had been said about encouragement of product spending and methods of accounting for the income of these production industries.
This research is of the view that the problem is that of interest organization of these production industries, this must have \much to do with computer operation, accounting system producers and control in line with this, the study will dwell on improving the effectiveness of accounting system and control of Paterson zochonis industries plc Aba.
1.3 PURPOSE OF THE STUDY
Based on the background of study and statement of the problem given above the major objective of this Study will be built around the following
i. To evaluate the accounting and financial control measure of p.z plc.
ii. To analyze the information provided by the accounting system according to their usefulness for decision making that improves the operational efficiency
iii. To evaluate the financial system with the view to identify the sources of measures for investment to meet the increasing need to replace obsolute equipment to meet technological innovated and to examine its effect on financial and budget allocation of the industry.
This research focuses on the following hypothesis
H0: There is no functional and properly designed accounting system in P.z
H1: There is functional and properly designed accounting system in Pz.
H0 : Poor financial results by Pz. Is not relate to the abuse of stationers
disregard to the maintenance staff and lack of effective purchasing agent.
H1: Poor financial results by Pz. Is related to the abuse of stationeries disregard to the maintenance staff and lack of effective. Purchasing agent.
H0 : Income generated are not enough to cover over head expenses.
H1: The office are not well computerized
H1: The offices are well computerized
1.5 DELIMITATION OF THE STUDY SCOPE
This research is focused on a case study of Paterson zochonis industries plc Aba due to limited time and the difficulty of data collection in production industries.
The research will evaluate the accounting and financial problem facing the industry with the view to determine the necessary control measure in this area. This study will cover accounting for income revenue reporting budgeting and system of control use of computer system and financial practices of the industry.
1.6 SIGNIUFICANCE OF THE STUDY
The researcher strongly believes that much of the administrative failure of most of the production industries as a result of the ineffectiveness of the accounting system of these industries.
This research work is geared toward,
i. Bringing the accounting and financial control problem of the production industries to light
ii. Suggesting a financial structure that suits accounting need of production industries.
iii. Making further research into some other functional areas of production industries
iv. Serving as future reference for researcher
1.7 ASSUPTIONS OF THE STUDY
The following assumption have been made up by the research:
i. The primary objective of the company are known by the employee.
ii. The benefits which may accrue to the industry chosen as a result of correct usage of accounting system can also apply to other firms in the same industry.
iii. That there is substantial and adequate communication and feedback system flowing from top management to all employees and vice versa, within the industry.
1.8 DEFINITION OF TERMA PECULIAR TO THE STUDY
For a better appreciation and understanding of the research the following terms have been defined by the researcher below.
These are the system for collecting and summarizing financial data for use in organizing the affairs of a firm and which is aimed at meeting specific needs of the firm.
These are resources earmark in a budget for specific purpose and this is recorded in the books of fund as soon as the budget is approved not necessarily when the resources are needed.
A financial statement of estimated income and expenditure covering a specified future period of time and it is usually done before the period begins. A budget is also said to be a financial or quantitative statement prepared and approved prior to a defined period of time of the policy pursued, during that period for the purpose of attaing a given objective. It may include income and expenditure of capital.
Budgetary control is a system of controlling cost which include the preparations of budget co-ordination the department and establishing responsibility comparing actual performance with that budgeted and acting upon result to achieve maximum profitability. It relates expenditure to the persons who incures them so that actual performance on expense can be compared with budgeted expenses. Thus affording a convenient control.
SYTEM This is a means by which manger of an organization perform their duties co-operatively towards attainment o goals and objectives of the enterprise.
COMPUTER: This is an electron mechanic device capable of accepting strong processing data information and outputting the result of the processing in such a way people can make use of it.
DATA: These are raw fact and figured about flings ideas and events which have not been processed to form an information it could exist in physical numerical or textual form.
INCOME: An amount of money other valuable benefit received or expected to be received by an accounting entity either from its usual activities or form other sources a part from contributions for capital to the entity loans made to the entity and capital receipts.
This is a similar account in the business organization to profit and loss account.
This is the whole system of control financial and otherwise established by the management in order to carry on the business of the enterprise in an orderly and efficient manner ensure adherence to management policies safeguarded the assets and ensure as far as possible the completeness and accuracy of the records.
The general expenses of running a business include rent and rates heating lighting etc.
This is a money for a fixed period of time
This is a type of statement sometimes used in financial accounting procedure to provide details of a company investment and the sources of its funds for that investment in a particular period it provides an analysis of the flow of funds through an organization and its working capital.