Finance Tutorial » accounting

Share Better About How to Start a Student Investment Club

azka — Mon, 26 Jul 2010 23:10:09 +0000

Hi! We hope you always get wonderful job everyday. We want to share about How to Start a Student Investment Club. We hope this share give you advantages. Investment clubs are a terrific way for kids to learn about investments even at a young age. You can start a student investment club for your own child or for your students if you are a teacher. The student investment club can help kids learn about money and teach them invaluable lessons about making decisions.

Starting a student investment club begins with the desire to invest. An adult should start and run the club and provide structure and guidance along the way. Properly used, however, the student investment club will be a good learning experience for everyone.

1. Begin with a simple goal’s to provide kids with limited ability to search and select stocks to invest. Ensure that younger kids have their parent’s permission to participate. Come up with weekly or monthly goals for investing.

2. Write rules and stick to them. Investment clubs need rules and regulations and the student investment club is no exception. This helps to establish order and ensure that things are handled properly. Write the rules in plain language that can be easily understood by the age group.

3. Limit the investments. Children have limited funds so there should be low limits on the participation requirements as well as limits to the amount the child can invest. Get the buy-in of the parents before you begin. Always consider the amount of money available to students before you choose investments.

4. Make investments fun. The idea of investments can seem somewhat a dreary subject. Spice it up by allowing kids to invest in companies that they know or have heard about. Think about popular toy or video game companies, food or restaurant companies or clothing companies. Investing in a stodgy company they never heard of and don’t know the nature of business will make the club boring and kids will lose interest quickly.

5. Encourage kids to use their own money. When appropriate the students will learn better when they use their own money. Whether it’s from their allowance or from a part-time job, using their own money will force kids to be more interested in the investments.

6. Invite guest speakers. Whenever possible try to add interest by inviting guest speakers to meetings with the students. Find members of the local community to speak such as investment bankers, finance counselors or accountants.

7. Divide students into smaller groups. If you have a large group of students, it may be wise to have them form smaller groups. Allow them to form a corporation for investing and even let them name their company. Have them choose a president and then let them vote on investment choices.

8. Track investment performance. Teach students to use charts or graphs to track their investments and keep abreast with market trends in the newspaper or on the internet. Determine a specific day in a week to review investments with the students.

Source: http://www.articlesbase.com/fitness-articles/how-to-start-a-student-investment-club-252081.html
Author: Alvin Toh

Posting Board

azka — Tue, 29 Jun 2010 09:31:07 +0000

Under the double – entry system each transaction necessitates two entries, one un a subsidiary book and one in the ledger. With the use of manual posting equipment these two entries can be performed at one writing. The method to be adopted is as follows. The sales journal sheet and carbon paper are placed on the posting board under the clamp bar. Each ledger sheet is inserted as required under the spring clip; this sheet must be so aligned that the writing line in the ledger coincides with the next vacant line on the journal sheet. When the entry is written it will appear on both the journal and the ledger folios. The system has obvious advantages in saving time, and also posting errors are eliminated, since both journal and ledger entries are made with the same writing.

With posting boards additional documents or records can be produced whilst the entry is being made. If a statement form is filed with each ledger account it can be inserted under the spring clip at the same time as the ledger sheet; thus one writing will produce the sales journal, the ledger, and the entry on the statement. At the end of the month all that is necessary is to extract the statements and mail them to the customers.

Although, as an example, a detailed description has been given of the sales section of the accounts department, it should be realized that the posting- board method can be adopted for other entries. In dealing with cash received it is possible to produce at the same time the receipt, the cash book entry and the bank paying-in-slip. Whilst writing a cheque, entries can be made un the cash book and purchase ledger. Throughout the accounting system, and indeed for other purposes, wide use can be made of manifold posting equipment.

The slip system and batch posting- Part 2

azka — Sat, 26 Jun 2010 09:27:03 +0000

The sales accounting system indicated in the previous paragraph is relatively easy to inaugurate since the sales invoice originates in the firm and can be suitably designed for the purpose; also a routine can be introduced to facilitate its adoption. When the purchase journal is being considered, other factors must be borne in mind. For example, the invoice must be accepted, in most cases, in the manner in which it is sent by the supplier. Again, on receipt it must be checked for accuracy, pricing and against goods received. Since the number of suppliers is often less than the number of sales customers, consideration might be given to the method known as batch posting. Under this method when a purchase invoice is received it will be registered and put through the appropriate checking routine. When it is passed as correct for payment it will be placed in a special file under the supplier’s name. When the supplier’s statement of account is received at the end of the month it will be checked against the invoices and if correct the latter will be attached to the statement. Thus only one entry ( the total of the statement) us made for each supplier each month. When discussing the payment of suppliers invoices, it was mentioned that suppliers’ account need not be maintained in some circumstances, and such a system might be incorporated with the batch method.

The method described in this section is useful for small business, and also form the basis for mechanical accounting systems. It has important applications un the use of computers by providing basic accounting procedures. There must be a rigid check on the accuracy of the input to a computer system; if the wrong data is put into that system then the wrong answer will be produced- “garbage in, garbage out”. One of the controls of the input system is to have check total produced at the point transactions arise or original documents are prepared. The method illustrated and described in this section would provide some of these check totals.

The slip system and batch posting- Part 1

azka — Wed, 23 Jun 2010 09:21:26 +0000

It has been stated in post before that the purpose of sales and purchases journals is to provide a medium from which the accounts of customers and suppliers can be posted. And also to provide totals for the various sales, purchases and materials control accounts. If these are the sole reasons for keeping the journals, then consideration should be given to the possibility of eliminating the writing up of these books by the introduction of the slip system or “ file posting”, as it is sometimes called. Taking the example of a day’s sales invoices, a copy of each invoice will be sent to the accounts department, and a total of the invoices will be made on an adding/ listing machine. Departmental totals can be obtained on a special analysis machine. The total of the invoices will be entered un the sales accounts, and the personal accounts of the customers in the sales ledger will then be entered direct from the copies of the invoices.

An additional advantage of the slip system us that invoices can be sorted un the required order for entering in the ledger. It must be emphasized that where use us made of simplified methods a strict control must be kept since the normal book- keeping checking methods can not be used.

Accounting Aids

azka — Sun, 20 Jun 2010 09:21:08 +0000

Manual Methods
It will have become apparent that in the accounting department there is a large amount of routine work to be performed. Cash accounting must be strictly controlled, and the various day books and ledgers must be entered. In a small business it may be possible for the proprietor to make the necessary entries day by day and, perhaps, leave the final accounts to be written up by a professional accountant. As the size of the business grows the entering of the books of account becomes an increasing burden, and if conventional double-entry books continue to be written up by hand, every increase in business involving additional transactions adds still further to the amount of routine work un the accounts department. At the end of the accounting period balancing the books will become an extended process, and the preparation of the final accounts may delayed. The importance to management of prompt financial information has been emphasized, and with this object in view simplification of the accounting routines is essential.

Simplification of accounts, particularly in the smaller firm, does not of necessity mean the purchase of expensive equipment or machines. Consider first the question of balancing the ledger accounts. This must be completed at least monthly for the collection of debt and payment of suppliers, and also at the end of the accounting period to produce the necessary schedules of debtors, creditors, expenses, etc. In connection with the ledger the first simplification which might be considered us the adoption of the three- column ledger- debit, credit, balance. Under this method the balance of the accounts is thrown out after each entry, thus eliminating the necessity at the end of the month or accounting period of ruling and balancing.