ABSTRACT
The study was organized in five chapter
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 they
maintained.
Her accounting productive 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.
CHAPTER ONE
INTRODUCTION
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 consists 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 systems 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
- Evaluation of the information provided by the accepting system as they are useful for decision making.
- The evaluation of the information system with the view to identify the sources and measure for investment in thee industry.
BRIEF HISTROY OF PZ INDUSTRIES PLC
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,”
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.
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
- To evaluate the accounting and financial control measure of p.z plc.
- To analyze the information provided by the accounting system
according to their usefulness for decision making that improves the
operational efficiency
- 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.
HYPOTYHESIS
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
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.
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,
- Bringing the accounting and financial control problem of the production industries to light
- Suggesting a financial structure that suits accounting need of production industries.
- Making further research into some other functional areas of production industries
- Serving as future reference for researcher
ASSUPTIONS OF THE STUDY
The following assumption have been made up by the research:
- The primary objective of the company are known by the employee.
- 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.
- That there is substantial and adequate communication and feedback
system flowing from top management to all employees and vice versa,
within the industry.
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.
ACCOUNTING SYSTEM
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.
APPOROPRIATIONS
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.
BUDGET
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.
BUDGETING CONTROL
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.
INCOME AND EXPENDITURE ACCOUNTS
This is a similar account in the business organization to profit and loss account.
INTERNIAL CONTROL SYSTEM
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.
OVERHEAD EXPENSES
The general expenses of running a business include rent and rates heating lighting etc.
TERM LOAN
This is a money for a fixed period of time
FUND STATEMENT
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.
