MARCH 2014
SIX activities that must be done before departure
Making travel arrangements
 Create an appointments schedule.
 Optimise time allocation.
 Confirm appointments.
 Identify meeting places.
 Make hotel reservations.
 Establish taxes and service charges.
 Obtain currency and travellers’ cheques.

(a) SIX activities that must be undertaken before Mr. Henry’s departure are:
 preparing a traveler’s file – make sure all appropriate documents for his
meeting are collected, for instance, reports on the progress of the business
 making sure that his US Visa and passport are valid. If not, visit the US
embassy and immigration office
 booking the airline ticket
 arranging overseas finances – prepare an invoice if he’s to receive per diem or
go to the bank to purchase monetary instruments
 preparing travel itinerary
 arranging transportation to and from airport and accommodation

(b) THREE local places to be contacted are:
 a travel agency
 a bank
 the US Embassy

(c) TWO monetary instruments that may be taken on his trip include:
 travelers’ checks
 cash (carried in small amounts for small purchases)

(a) FOUR avenues available to publicize vacancies are:
 guidance counselors at educational institutions
 employment agencies
 advertisements in newspapers
 the Internet (website of organizations) and other electronic media

(b) A job specification is a detailed statement of the qualities, skills and characteristics
required for an individual to complete a particular job. It is used when creating or
forming an advertisement for a vacancy and includes information on qualifications
and experience required, summary of responsibilities and skills necessary.

On the other hand, a job description gives details of the work an employee is
expected to do in the job. It is tailor made to suit each employee. The terms of
employment can be found in a job description, with information on job title, salary
to be paid, hours of employment, assigned department and reporting officer or
supervisor and summary of main responsibilities.


(a) FIVE reasons for keeping accounts are:
 maintaining accurate records of all transactions
 to control finances
 providing information to others about the finances of the business
 recording the value of assets and liabilities
 to ascertain whether a profit or loss has been made

(b) FOUR functions of the accounts department are:
1. Collection of accounts – this involves recording and monitoring outstanding
payments received from debtors.
2. Preparation of payroll – employees in an organization are paid for their time
and efforts and the accounts department is responsible for disbursing these
3. Preparation of audit – an audit is the method of checking the business
accounts to make sure accounting policies and procedures are correctly
implemented and there is no fraud or errors. The department must always be
in a state of readiness as this activity may be carried out without prior warning
or short notice.
4. Treatment of debit and credit notes – the accounts department is
responsible for adjusting customer accounts, using the debit or credit notes
where applicable. Credit notes are issued to customers when they are
overcharged. On the other hand, debit notes are issued when a customer has
been undercharged.

(a) The amount spent is $208

(b) The clerk will need $208 to make up the imprest.

(c) The word petty means small. Petty cash is used to make small purchases where
payment needs to be made in cash.

(d) THREE examples of items that might be bought using petty cash include:
 postage stamps
 tips
 parking fees

(e) The imprest system incorporates a method of cross-checking column totals against an
overall figure in a way that helps to identify when mistakes in calculations have been

(f) When money has to be taken out of petty cash when a receipt is not available to put in
place of the cash removed, a petty cash voucher is completed, and signed by someone
with the authority to do so, and is used as a record of petty cash money taken.

(a) FIVE types of checks are:
 open
 crossed
 dishonored
 certified
 post-dated

(b) A standing order is a banking service, where the holder of an account instructs the
bank to pay, or transfer on his behalf, a fixed amount of money at a fixed time each
month, until notice is given to stop the payments. A transfer may be made from one
account to another or, from one account to a number of accounts. This service is
used when making loan payments or paying lease on a land or building.

A direct debit is also a banking service. However, it differs from the standing order
as the holder of the account instructs the bank to make regular payments of varying
amounts. This service is used when making payments for electricity bills or
telephone services.

(c) The procedure to follow when preparing a bank reconciliation is:
 tick items that appear on both the bank statement and the cash book – this
includes checks honored and deposits made for the period
 add up the cash book for the period and identify and note any errors found
 examine the bank statement for the same period and identify those items
which appear on the bank statement, but which have not been entered in the
cash book
 identify un-presented checks and outstanding deposits
 make adjustments by adding or subtracting items not listed

(a) Error and omissions expected – the buyer or seller is implying that they reserve the
right to correct any errors made when completing a document.

Cash on delivery – the goods must be paid for at the time of delivery

Cash with order – payment for item must be made at the time of ordering

(b) THREE duties of the purchasing clerk are:
 processing requisitions
 preparing purchase orders
 maintaining stock records

(c) A quotation is sent by a seller/supplier and gives details of the product the business
is wishing to purchase. Information on the document, which sometimes comes in
the form of a letter or preprinted form, include – current price, discounts offered,
delivery terms and period.

A tender invites potential suppliers to bid or quote for the work in question or to
supply goods or services. It usually has special requirements and specifications on
the latest submission date. All the envelopes are opened at the same time and
compared before a decision is made.

(d) SIX factors to consider when selecting a supplier are:
 urgency of need
 price and quality of the goods
 delivery and insurance charges
 discounts offered
 schedule for delivery
 known reliability of supplier

A) Functions of the sales clerk

o plan, organise and supervise selling of company goods and services
o maintain sales records
o record expenditure; advertising and other promotional activities
o manage sales staff; sales representatives or counter staff
o produce sales forecasts
o liaise with advertising and marketing departments
o work closely with the accounts department
o cooperate with production department
o liaise with purchasing department
o record and present sales records.

B) Functions of the marketing department

o operating a range of marketing strategies
o establish a promotional strategy
o identify promotional mix
o provide information to the advertising department
o direct personal selling activities (sale representatives, sales assistants).

C) What is the importance of inventory management?

ii) SOME advantages of stock control are it:
 ensures that stock is not depleted
 indicates when items need to be reordered
 keeps production units supplied
 reduces the likelihood of stock becoming obsolete
 maximizes use of storage space
identifies when pilferage or spoilage occurs
D) FIFO – First in Frist out
LIFO- Last in Frist out

The purpose of a bank reconciliation statement is ….

Bank reconciliation statement