MI

NISTRYOFGENERALEDUCATI
ON

VI
SIONWI
THACTI
ON

BUSI
NESSSTUDI
ESSTUDY

EDI
TEDVERSI
ON2018
Thisdocumentisi
ntendedfortheusebyscholarsofBusi
nessst udi
eswhoar
e
prepar
ingt
owrit
ethei
rJuniorSecondar
ySchool
Leavi
ngExaminat
ions.

Theproj
ectwasini
ti
atedbyKit
weDist
ri
ctEducationBoardSecr
etar
yasoneoft
he
Str
ategi
estobeusedinimpr
ovi
ngexaminat
ionresult
sinKit
weDistr
ict
.

Pr
epar
edby
:

Edwi
nWakumel
o Hel
enKaundaSecondar
ySchool
(HOD)Co-
coor
dinat
or

Chal
weRegi
naSakal
a St
.Fr
anci
sSecondar
ySchool (
HOD)Super
visor

Mut
aleTher
esaLubemba Wesl
eyNy
irendaSecondar
ySchool
(HOD)

Chi
pil
i
nguCeci
l
iaChal
we Just
ineKabwesecondar
ySchool
(HOD)

Chi
kumbi
GraceMwanza Mi
tant
oSecondar
ySchool
(HOD)

MwewaPet
er Kakol
oMaposaSecondar
ySchool
(HOD)

Si
muj
ayangombeCar
ol MukubaSecondar
ySchool

Kachenj
eLi
wul
u Ki
tweBoy
sSecondar
ySchool
(HOD)

Mat
imbaMwangani Par
klandsSecondar
ySchool
(HOD)

Nachal
weJudy Mi
ndol
osecondar
yschool

Si
chi
l
ongoMwi
che Chi
bot
eGi
rl
sSecondar
ySchool
(HOD)
 TABLEOFCONTENTS
8.
1 ANOFFI CE
 Funct
ionsofanOf
fi
ce
 Ty
pesofof
fi
ces
 Or
gani
sat
ionChar
t
 Joboppor
tuni
ti
es
 Of
fi
ceEt
iquet
te
8.
2 OFFI
CESTATIONERYANDEQUI
PMENT
 Stat
ioner
yanduses
 Of
fi
ceequi
pmentanduses
8.
3 ENTREPRENEURSHI
P
 Ent
repr
eneur
 Ent
repr
eneur
ial
Act
ivi
ti
es
 Reasonsf
orent
repr
eneur
shi
p
 Ty
pesofBusi
nesses
 Busi
nessI
dea
 SWOTAnal
ysi
s
 Companyf
ormat
ion
 Busi
nesspl
an
 Fi
nanci
ngbusi
nesses
 Desi
rabl
ebusi
nesset
hics
8.
4 BUSI
NESSTRANSACTI
ONS
 Ty
pesofBusi
nessTr
ansact
ions
8.
5 BUSINESSDOCUMENTS
 Ty
pesofBusi
nessDocument
s
8.
6 SOURCEDOCUMENTS
 Ty
pesofSour
ceDocument
s
8.
6 BOOKSOFORI
GINALENTRY
 Ty
pesofBooksofOr
igi
nal
Ent
ry
8.
7 CLASSESOFACCOUNTS
 Ty
pesofCl
assesofAccount
s
8.
8 LEDGER
 Doubl
eent
rysy
stem
8.
9 TRI
ALBALANCE
 Useoft
heTr
ial
Bal
ance
9.
1 FI
NALACCOUNTS
 Tr
adi
ngAccount
 Pr
ofi
tandLossAccount
 Bal
ancesheet
9.
2 WAGESANDSALARI
ES
 WagesandSal
ari
es
9.
3 BANKI
NG
 Ty
pesofFi
nanci
alI
nst
it
uti
ons
 Ser
vicesof
fer
edbyf
inanci
ali
nst
it
uti
ons
 Ty
pesofAccount
s
 Document
susedi
nBanki
ng
9.
4 PERSONALFI
NANCI
ALMANAGEMENT
 Sav
ings
I
nvest
ment
s
 Budget
ing
9.
5 FI
LING
 Fi
l
ingSy
stems
 Fi
l
ingMet
hods
 Fi
l
ingEqui
pment
 9.
6 POSTALANDTELECOMMUNI
CATI
ONSERVI
CES
 Post
alSer
vices
 Tel
ecommuni
cat
ionser
vices
9.
7COMMONLYUSEDABBREVI
ATI
ONS
 Busi
nessAbbr
evi
ati
ons
9.
8 ENTREPRENEURSHI
P
 Busi
nessManagement
 Managi
ngBusi
nessFi
nances
 Keepi
ngFi
nanci
alRecor
ds
 Di
ssol
uti
onofCompani
es-
--
--
--
--
--
--
--
-EI
GHT-
8.
1 ANOFFI
CE

St
ateandexpl
aint
hef
unct
ionofanof
fi
ce.

 Comput
ing

Thi
smeanst
odov
eryi
nvol
vi
ngwor
ksuchashandl
i
ngt
hecal
cul
ati
onsf
orsal
ari
esand
wagesandmanymor
eusi
ngacomput
er.

 Anal
ysi
ngdat
a

I
tist
hedut
yoft
hecl
erkoranof
fi
cert
oensur
ethatanydat
athatar
ri
vesi
nthe
companyi
scar
eful
l
yst
udi
ed.Thi
senabl
esmanagementt
osui
tabl
yknowwhatshoul
d
bedoneoni
t.

 St
ori
ngdat
a

Thedat
awhi
chmi
ghtbeusef
ult
othecompanyshoul
dbest
oredsaf
elysot
hati
tcan
ber
efer
redt
oatal
aterst
age.St
ori
ngdat
acoul
dbyusi
ngcomput
erorf
il
ingcabi
net
s.

 Pl
anni
ng

Anor
gani
zat
ioni
ssi
mpl
yacomposi
ti
onofsev
eralact
ivi
ti
esandpl
anni
ng,sot
hatal
l
t
heseact
ivi
ti
esar
econsol
i
dat
ed.Anal
yzi
ngofdat
a,st
ori
ngandal
lot
heract
ivi
ti
esar
e
t
obepr
opagat
edt
owar
dst
hei
mpr
ovementoft
hecompany
.
 I
dent
if
ythet
ypesofof
fi
ces

i
. Openpl
anof
fi
ce

Thi
sisat
ypeofanof
fi
cewher
emanywor
ker
soper
atef
rom.Eachwor
kerper
for
mst
he
sameordi
ff
erentt
ypesofwor
k.Forexampl
ethest
affr
oom i
ntheschool
,thebank,
t
ypi
ngoraccount
ingpool
,postof
fi
ceet
c.

Adv
ant
agesofanopenpl
anof
fi
ce.

 
Iti
seasyt
osuper
visewor
ker
s

I
tisEconomi
cal
int
heuseofof
fi
cespace

 Workersareencouragedt
owor
khar
dandr
epor
tear
ly

I
tbecomeseasyt
olear
nnewski
l
ls

Di
sadv
ant
agesofanopenpl
anof
fi
ce

 Therei
snopr
ivacy

 Easyt
ocont
ractcont
agi
ousdi
seasesl
i
kesneezi
ng

 Offi
cesar
eusual
l
ynoi
sy
  Lesssecuri
tyofdocument
s

i
i
. Cl
osedpl
anof
fi
ce

Thi
sisanof
fi
cewher
eonl
yoneort
wopeopl
ewor
kfr
om.Forexampl
etheHead
t
eacher
sof
fi
ce,
themanager
’sof
fi
ceet
c.

Adv
ant
agesofacl
osedpl
anof
fi
ce

 Theoffi
cesar
eusual
l
yqui
et

 Cont
agi
ousdi
seasescannoteasi
l
yspr
ead

 No/l
esscasesofgossi
pamongwor
ker
s

 Al
l
owsconcent
rat
iont
odut
y

Di
sadv
ant
agesofcl
osedpl
anof
fi
ce

I
tisnoteasyt
osuper
visewor
ker
s

 Workersreportl
atef
orwor
kast
heycannotbeeasi
l
ynot
iced
 Di
ff
icul
tyf
ornewst
afft
olear
nnewski
l
lsf
rom ot
her
s.

 Noteconomi
cali
ntheuseofof
fi
cespacebecauseasepar
ateof
fi
cehast
obebui
l
tfor
eachwor
ker
.

i
i
i. Vi
rt
ual
off
ice

Thi
sisat
ypeofof
fi
cet
hatdoesnotr
equi
reanyphy
sicalv
isi
tat
ionbycl
i
ent
siti
san
of
fi
cet
hati
sfound on-
li
ne.On-
li
ner
efer
stoi
nter
netcommuni
cat
ion bymeansof
comput
ers,cel
lphoneswi
thi
nter
netf
aci
l
ity
,oranyot
herel
ect
roni
cgadgetwi
thi
nter
net
f
aci
l
ity.
Avi
rt
ualof
fi
cecanbeaccessedbyany
oner
egar
dlessoft
hei
rgeogr
aphi
cal
l
ocat
ion

Adv
ant
agesofav
irt
ual
off
ice

 Costsavi
ng-
byr
educi
ngexpensessuchasr
entsal
ari
eset
c.

 Ti
mesav
ing-t
her
eisqui
ckerr
esponset
ocust
omer
sandsuppl
i
ers

 Qual
i
tyi
mpr
ovement
-t
hroughaccesst
oinnov
ati
veway
sofmar
ket
ingnewpr
oduct
sand
ser
vices
 CanbeAccessedbyany
one

Di
sadv
ant
agesofaVi
rt
ual
off
ice

 Manypeopl
efi
ndav
irt
ual
off
icet
oodi
ff
icul
ttodeal
wit
h

 Communi
cat
ionusedi
nthi
sof
fi
cemaynotbecommoni
nsomear
eas

 Therei
sfearofbei
ngswi
ndl
ed.

I
nter
pretanor
gani
zat
ional
char
t

Anor
gani
zat
ionalchar
tisadi
agr
am t
hatshowst
hest
ruct
ureofanor
gani
zat
ionandt
he
r
elat
ionshi
psandr
elat
iver
anksofi
tspar
tsandposi
ti
ons/
jobs

Boar
dofDi
rect
ors

Managi
ngDi
rect
ors

Gener
alManager
St
atet
hef
unct
ionsofeachdepar
tment

i
. Admi
nist
rat
ion.

 Recrui
tmentandsomet
imest
rai
ningofnew st
affi
ntheor
gani
zat
iondoes
nothav
easepar
atet
rai
ningdepar
tment
.

 Conduct
ingi
ncl
usi
oncour
sewher
enewempl
oyeesar
eexposedt
othenew
wor
kingenv
ironment
.

I
tpr
omot
es,
demot
esandr
eti
resempl
oyees.

 Conduct
sint
erv
iews.

 Provi
sion ofhousi
ng f
aci
l
iti
es,r
ecr
eat
ion orent
ert
ainmentand cant
een
f
aci
l
iti
est
oempl
oyees.Et
c.

 At
tendi
ngt
owor
ker
scompl
aint
s
i
i
. Account
s/f
inancedepar
tment
.

 Preparat
ionofsal
ari
esandwagesf
oral
lempl
oyeesi
ntheor
gani
zat
ion
unl
esst
heor
gani
zat
ionhast
hesal
ari
esandwagesdepar
tment
.

 Preparat
ionoft
hef
inanci
alr
epor
tfort
heor
gani
zat
ion.

 Safekeepi
ngoft
hef
inancesf
ort
heor
gani
zat
ion.

 Recei
vesandmakespay
ment
sfort
heor
gani
zat
ion.

i
i
i. Humanr
esour
ce

 Torecrui
tnewempl
oyeesi
nal
ldepar
tment
soft
heor
gani
zat
ion.

 Looki
ngaf
tert
hewel
far
eofal
lempl
oyeesi
ntheor
gani
zat
ione.
g.heal
thy
andsaf
etyi
ssueset
c.

 Keepi
ngr
ecor
dsofal
lempl
oyeesi
ntheor
gani
zat
ion.

 Promot
ingdeser
vingempl
oyeesanddi
smi
ssi
nger
ri
ng.Empl
oyees.

 Conduct
ingi
nduct
iont
rai
ningsal
soar
rangi
ngf
ori
n-ser
vicet
rai
ning.

 Arrangi
ngf
orpensi
onsandv
olunt
arysepar
ati
onofsomeempl
oyees.

i
v. Mar
ket
ing/adv
ert
isi
ng/
sal
es

 Toport
rayandmai
ntai
nasoundandposi
ti
vei
mageofanor
gani
zat
ion.

 Toensuret
hatt
hegoodsbei
ngsol
dbyt
hecompanyar
eknownt
othem.

 Toofferfreesampl
esandal
lot
hermeanst
hatshoul
dseet
heconsumer
mor
alet
obuyt
hegoodspr
ovoked.

 Toi
nfor
mtheconsumer
s.

 Toremi
ndt
heconsumer
s.

 Toeducat
etheconsumer
s.
  Topersuadet
heconsumer
s.

v
. Pr
ocur
ement
/pur
chasi
ng

 Procurementofal
lrequi
rement
sfort
hebusi
nesssuchasr
aw mat
eri
als,
st
ati
oner
y,machi
ner
yandet
c.

 Fol
l
owal
lpr
ocur
ementpr
ocedur
esoft
hebusi
ness.

 Keepscopi
esofdocument
sforal
lgoods,
mat
eri
alandser
vicesbought
.

v
i. Pl
anni
ng

 Anal
ysi
ngdat
a

 St
ori
ngdat
a

v
ii
. Mai
ntenance/
Engi
neer
ing

 To repai
rand mai
ntai
nthe pr
oper
ty and equi
pmentbel
ongi
ng t
othe
companysuchasbui
l
dingmachi
ner
yandequi
pmentt
oensur
econt
inui
tyi
n
t
hepr
oduct
ionofgoods.

 Toensuregoodsani
tat
ionandsaf
etyi
nthewor
kingpl
aceandmaki
ngi
t
conduci
vet
owor
kin.

v
ii
i. Tr
anspor
tandLogi
sti
cs

 Del
i
ver
yofr
aw mat
eri
als and ot
hersuppl
i
es t
othe busi
ness and al
so
del
i
ver
iesofgoodst
oconsumer
s.

I
tisal
sor
esponsi
blef
ort
hemov
ementofempl
oyeest
oandf
rom t
hewor
k
pl
ace.

I
tensur
est
hemov
ementofcompanyexecut
ivest
oandf
rom t
hemeet
ing
andpl
acesofappoi
ntment
s.

i
x. Legal

 Responsi
blef
orl
egal
document
soft
hedocument
soft
heor
gani
zat
ions.
 I
tal
sor
epr
esent
stheor
gani
zat
iononl
egal
mat
ter
s.

I
dent
if
ythej
oboppor
tuni
ti
esav
ail
abl
etobusi
nessst
udi
esschol
ars

 Managi
ngdi
rect
or

 Generalmanager

 Fi
nanci
almanager

 Account
scl
erk

 Regi
str
ycl
erk

Descr
ibeaccept
abl
eof
fi
ceet
iquet
te

 Appear
ance-Anof
fi
cershoul
dal
way
sappearaspr
esent
abl
easpossi
bleat
wor
k.

 Rel
i
abi
l
ity
-Rel
i
abi
l
ityr
efer
stohow dependabl
eawor
kershoul
dbeatt
he
pl
aceofwor
k.

 Punct
ual
i
ty-Punct
ual
i
tyr
efer
stohowear
lyawor
kerr
epor
tforwor
k

 Loy
alt
y-Tobel
oyalatone’
spl
aceofwor
kmeanst
osuppor
t,l
i
stent
oand
car
eforf
ell
owwor
ker
ssuper
visor
sandt
hecompanyonewor
ks.

 Cour
tesy
-Cour
tesyatwor
kmeanst
ohav
egoodmanner
s,begi
npol
i
teand
ki
nd

 Responsi
bil
i
ty-
Anof
fi
cershoul
dber
esponsi
bleatwor
k.
8.
2 OFFI
CESTATI
ONERYANDEQUI
PMENT

I
dent
if
ythedi
ff
erentt
ypesofst
ati
oner
y

 Paper
-isusedf
orwr
it
ing,
drawi
ngandpr
int
ingi
nanof
fi
ce.
 Pens-Thi
sisusedf
orwr
it
ingonv
ari
ouski
ndsofdocument
s
 Rul
ers-t
hesear
eusedf
ormeasur
ingandmaki
ngst
rai
ghtl
i
nes/
edgesofadr
awi
ng.

 Env
elopes-Thesear
eusedf
orencl
osi
ngl
ett
ersandot
herCor
respondence.
 Rubber
s-ar
eusedf
orer
asi
nganywr
it
tenwor
dsi
ninkandpenci
l
.

 St
enci
l
s-Thesear
eusedi
ndupl
i
cat
ingmachi
nest
opr
oducet
hesamecopy
  I
nk/
toner
- 
isal
i
qui
dorpast
ethatcont
ainspi
gment
sordy
esandi
susedt
ocol
ora
sur
facet
opr
oduceani
mage,
textordesi
gn.

 Car
bonpaper
-Thi
sisaspeci
alki
ndofpapert
hati
sli
nkedononesi
de.I
tisusedt
o
pr
oducemor
edocument
satt
hesamet
ime.
 Cor
rect
ionf
lui
d-Aspeci
alwhi
tef
lui
dforpai
nti
ngov
er/cov
eri
ngi
ncor
rectt
ext(
for
exampl
eti
pex)

 Fi
l
li
ngcl
i
ps-Thesear
ecl
i
pst
hatar
eusedt
oat
tachpaper
stoget
heri
naf
il
e/f
older
.

 Pi
ns-ar
eusedf
orhol
dingpaper
stoget
her
.
 1.I
dent
if
ythedi
ff
erentt
ypesofof
fi
ceequi
pmentandst
atet
heusef
oreachoneoft
hem.

I
nk/
spi
ri
tdupl
i
cat
ors-Thesear
eusedt
omakemanycopi
esoft
hesamedocument

 Fi
l
ingcabi
net
s-Thesear
eusedf
orst
ori
ngf
il
esandf
older
scont
aini
ngi
nfor
mat
ion
kept

f
orf
utur
eref
erence
 St
apl
er-Thi
sisusedf
orat
tachi
ngpapert
oget
her

 Hol
epuncher
-Thi
sisusedf
ormaki
nghol
esont
heedgeoft
hepaper
s t
he
pur
poseoff
il
ing
 Tel
ephones-Thi
sof
fi
ceequi
pmenti
susedf
orqui
ckor
alcommuni
cat
ionmai
nly
ov
erl
ongdi
stance.Thi
scanei
therbet
hroughal
andphoneoramobi
l
ephone.

Landphone–t
hisi
sst
ati
onedi
nonepl
ace

Cel
l
/Mobi
l
ephones–t
hisi
snotst
ati
onedonecanmov
ewi
thi
t
 I
nter
coms-Thi
sisat
elephonesy
stem usedwi
thi
nanor
gani
zat
ionanddoesnotgo
outoft
heof
fi
ce.i
tisusedf
ori
nter
nal
communi
cat
ion.

 Desk cal
endar
-t
he 
syst
em 
used t
o measur
e and 
arr
ange 
the 
day
s, 
weeks,
 
mont
hs,
andspeci
al 
event
s oft
he 
year
 accor
ding 
toa 
bel
i
ef 
syst
em 
or 
tr
adi
ti
on.
 Dat
est
amp-Thi
sisat
oolusedasasealoraut
hor
it
yondocument
s.I
tshowst
he
dat
eandt
heof
fi
cet
hathassi
gnedt
hedocument
.

 Facsi
mil
emachi
ne-I
tisequi
pmentusedt
oseal
wri
terdocument
sov
eraDi
stance.

 St
ylespen-i
susedf
orwr
it
ingonast
enci
l
.
 Cal
cul
ati
ngmachi
ne-I
tisusedt
oper
for
m mat
hemat
ical
comput
ati
on.

 Phot
ocopi
er-i
tusedt
opr
oducemanycopi
esf
rom t
heor
igi
nal
.
 Comput
er-i
tisanel
ect
roni
cdev
iceusedt
ocr
eat
est
oreorr
etr
iev
edocument
st
oredi
ndi
git
alf
orm.

 Shr
edder-
Thi
sisusedt
odest
roypaperbycut
ti
ngi
tint
osmal
l
erpi
ecest
hatcannot
bemendedback;
iti
susedt
odest
royconf
ident
ial
inf
ormat
ion.

 Scanner
-thi
sisequi
pmentusedt
ocapt
uredocument
se.
g.maps,l
ett
er,pi
ctur
es
et
cint
othecomput
er.
  Gui
l
lot
ine-t
hisi
sapapercut
ter
.i
tisusedt
ocutpaperi
ndi
ff
erentsi
zes.

3 ENTREPRENEURSHI
P

Ent
repr
eneur
shi
pist
heabi
l
ityt
ocr
eat
e,bui
l
dorgener
atesomet
hingf
rom not
hing.Forexampl
e
f
rom sandandcementonecanmakebl
ockswhi
chcanbeusedf
orbui
l
dingahouse.
iti
sthe
wi
l
li
ngnesst
otaker
isksi
ntr
yingt
omakeapr
ofi
t.

1.Whoi
sanEnt
repr
eneur
?

(
i)Anent
repr
eneuri
saper
sonwhor
unsabusi
nessandbear
sri
sks.

(
ii
)AnEnt
repr
eneuri
saper
sonwhoseesandusesanoppor
tuni
tyt
ost
artanew
busi
ness.

2.St
atechar
act
eri
sti
csofagoodent
repr
eneur
.(qual
i
ties)

- Opent
ocr
it
ici
sm
  Har
dwor
k

 I
ndependenceandor
gani
zed

 I
nnov
ati
veandcr
eat
ive

 Responsi
vet
ofeedback

 Ri
skt
aker

 Desi
ret
oachi
eve

 Pr
obl
em sol
ver

 Al
way
sposi
ti
ve

 Sel
f-
conf
ident

 Act
ionor
ient
ed

3.Li
stway
sofst
rengt
heni
ngent
repr
eneur
ial
abi
l
iti
es.

- Gethel
pfr
om ot
herpeopl
esuchasf
ri
ends,
fami
l
yandot
herbusi
nesspeopl
e

 Obser
vesuccessf
ulbusi
nesspeopl
e

 Gett
rai
ned

 Communi
cat
ion

 Readi
ngBooks

 Gett
oknowact
ivi
ti
esbei
ngdonei
nthecommuni
ty

4.I
dent
if
yent
repr
eneur
ial
act
ivi
ti
esi
nyourcommuni
ty.-

 Fi
shi
ng
 Pout
ry
 Beekeepi
ng
 Cat
tl
e r
ear
ing
 Br
ickmaki
ng

 Gar
deni
ng
 Hai
rdr
essi
ng
 Tr
anspor
t

Tr
adi
ng
 D

 Far
ming
  Wel
ding

5.Engagi
ngi
ntoEnt
repr
eneur
ial
act
ivi
ti
esbr
ingsabout
:

 Mai
ntai
nfr
eeent
erpr
ise

 Pr
omot
ionofheal
thcompl
eti
on

 Gener
ati
onofweal
th

 Spr
eadi
ngpr
osper
it
y

 Enhanci
ngweal
thst
abi
l
ity
  Ensur
einnov
ati
onandcr
eat
ivi
ty

 Nat
ional
Dev
elopment

 Sel
f-
rel
i
ance

 Fl
exi
bil
i
ty

 Sel
f-
empl
oyment

 Jobcr
eat
ion

6.I
dent
if
ythr
ee(
3)busi
nessuni
ts

 Sol
etr
ader

 Par
tner
shi
p

 Co-
oper
ati
ve

 Sol
etr
ader
:thesear
ebusi
nessesownedandcont
rol
l
edbyoneper
son.
  Par
tner
shi
p-t
hese ar
e busi
nesses r
un by t
wo or mor
e peopl
e who shar
e
r
esponsi
bil
i
ties,
prof
it
sandr
isks.

 Co-
oper
ati
ves:i
nabi
dtol
owerpr
ices,
ret
ail
ersmaycomet
oget
herandf
orm co-
oper
ati
ve.
Thesear
eor
gani
zat
ionsofpeopl
ewhocomet
oget
hert
oachi
eveacommongoalor
pur
pose.
7.Mat
cht
hei
temsi
ncol
umnAwi
tht
hosei
ncol
umnB

A B

Sol
eTr
ader Busi
nessownedanddemocr
ati
cal
l
yrun
andcont
rol
l
edbyi
tsmember
s

Par
tner
shi
p Busi
nessr
unbyoneper
sonwhost
art
sit
andownsi
t

Cooper
ati
ves Two ormor
e peopl
e wor
ktoget
hert
o
st
artandr
unt
hebusi
ness

A B

Sol
eTr
ader Busi
ness r
un by one per
son who
st
art
sitandownsi
t

Par
tner
shi
p Twoormor
epeopl
ewor
ktoget
hert
o
st
artandr
unt
hebusi
ness
Cooper
ati
ves Busi
ness owned and democr
ati
cal
l
y
r
unandcont
rol
l
edbyi
tsmember
s

I
dent
if
ysour
cesofbusi
nessi
deas

 Fr
iends

 sel
f

 Fami
l
ymember
s

 Readi
ngbooks

 Medi
a(Newspaper
s,Magazi
neset
c.)

 Exi
sti
ngbusi
ness

Whatdot
heacr
ony
m SWOTst
andsf
or?

St
rengt
h- Weaknesses-

Posi
ti
ve i
nter
nal Negat
ivei
nter
nal
f
act
ors t
hat a f
act
ors t
hat
companycandr
aw i
nhi
bit t
he
t
oaccompl
i
shment accompl
i
shment
of t
he company
’s oft
hecompany
’s
mi
ssi
on,goal
sand mi
ssi
on, goal
s
obj
ect
ives andobj
ect
ives

Oppor
tuni
ti
es- Thr
eat
s-negat
ive
posi
ti
ve ext
ernal ext
ernal f
orces
opt
ionst
hataf
ir
m t
hat i
nhi
bit a
can expl
oit t
o company
’sabi
l
ity
champi
on i
ts t
o at
tai
n i
ts
mi
ssi
on,goal
sand mi
ssi
on, goal
s
obj
ect
ives andobj
ect
ives.
Descr
ibef
act
orst
oconsi
derbef
oref
ormi
ngacompany
.

 St
art
-upcapi
tal
:capi
tali
sani
mpor
tantf
act
ort
oconsi
derbef
orest
art
ing
busi
ness i
twi
l
ldet
ermi
ne t
he si
ze oft
he busi
ness t
o be est
abl
i
shed.
Ther
efor
eent
repr
eneur
sneedt
ofi
ndway
sofget
ti
ngmoneyt
ost
artt
hei
r
busi
ness.

 Local
i
ty:i
tref
erst
othear
eaorpl
acewher
ethebusi
nesswi
l
lbeest
abl
i
shed.
Local
i
tyi
ncl
udesr
oadnet
wor
ktobr
ingi
nraw mat
eri
alandt
otr
anspor
t
f
ini
shedpr
oduct
s.Cust
omer
swi
l
lal
so needr
oadst
ogett
othebusi
ness.

 Ot
heri
ssuest
o consi
deri
ncl
ude whet
hert
her
eisgood communi
cat
ion
sy
stem andadequat
einf
rast
ruct
ure. Thecostoft
hesi
teshoul
dal
sobe
t
akeni
ntoconsi
der
ati
oni
nrel
ati
ont
oexpect
edpr
ofi
tsort
urnov
er.

 Tr
adi
nghour
s:Ti
met
oopenandcl
oset
hebusi
nessmustsui
tthecust
omer
.
Longt
radi
nghourcangi
veanewbusi
nessanadv
ant
age.

 Sour
ceofr
aw mat
eri
al:i
tisi
mpor
tantf
ort
hebusi
nesst
obel
ocat
edi
na
pl
acewher
esour
ceofsuppl
yforr
aw mat
eri
ali
srel
i
abl
esoast
oensur
e
adequat
est
ocki
ngofgoodorr
aw mat
eri
al.Thi
swi
l
lhel
pinmai
ntai
ning
cust
omerl
oyal
tyast
hegoodswi
l
lbei
nsuppl
yregul
arl
y.

 Compet
it
ors:Thepr
oducty
ouar
edeal
i
ngi
nmustbei
ntheposi
ti
onofbei
ngsol
d
becauset
her
ear
eal
otofsuchpr
oduct
sont
hemar
ket
.Youhav
etobeaty
our
compet
it
orsbymaki
ngy
ourpr
oduct
sbet
tert
hant
hem orl
owl
ypr
icedt
hant
hem.
 Adv
ert
isi
ng:Youneedt
oknow how t
ogety
ourpr
oductmessageacr
osst
othe
cust
omer
s.Adv
ert
isey
oupr
oduct
sthr
oughr
adi
o,t
elev
isi
on,
newspaper
s,bi
l
lboar
ds,
i
nter
netorpoi
ntofsal
e.

 Banki
ng:Thesear
eneededbyt
hebusi
nessf
orkeepi
ngmoneysaf
easwel
las
bor
rowi
ngmoneyi
fnecessar
y.

 Pr
ici
ng:deci
deonhow mucht
ochar
gef
ort
hepr
oduct
sorser
vices.Al
ow-
pri
ce
st
rat
egymayf
orcet
hebusi
nesst
ousel
ow-
qual
i
tyr
aw mat
eri
al.Al
ter
nat
ivel
y,t
he
busi
nesscangof
ort
hehi
gh-
pri
ce,hi
ghqual
i
tyst
rat
egywhi
chmayappealt
ofewer
cl
i
ent
s,butwi
l
lyi
eldhi
ghpr
ofi
ts.Whati
simpor
tanti
npr
ici
ngi
sthatcust
omer
s
mustgetv
aluef
ort
hei
rmoney
.

Descr
ibet
hedocument
sneededf
ort
hef
ormat
ionofdi
ff
erentt
ypesofbusi
nesses.

 Busi
nessPer
mit
s:t
hesear
eli
censesi
ssuedbyl
ocalcounci
l
sto
enabl
eonedobusi
nessi
nthei
rlocal
i
ty.

 Ar
ti
clesofpar
tner
shi
p:t
hesear
edocument
swhi
chapar
tner
shi
p
busi
nessmusthav
etospeci
fy:

 Whot
hepar
tner
sar
eandwhatt
heshar
eofeachpar
tneri
s

 Thenameoft
hepar
tner
shi
p

 Theaddr
essandnat
ureoft
hepar
tner
shi
p

 Thedat
eonwhi
cht
hepar
tner
shi
pst
art
sandhowl
ongi
twi
l
lexi
st
  Howmuchcapi
taleachpar
tnerwi
l
lcont
ri
but
eandwhet
hert
hepar
tner
shi
p
wi
l
lpayi
nter
estont
hecapi
tal

 Thebankaccountoft
hecompanyandnamesofsi
gnat
ori
esoncheques

 Par
tner
stomanaget
hecompany

 Shar
ingofpr
ofi
ts

 Howf
inanci
alst
atement
swi
l
lbepr
epar
ed

 Howt
odi
ssol
vet
hepar
tner
shi
pincaseonepar
tnerdi
es

i
. Ar
ti
clesofAssoci
ati
on:i
sadocumentt
hatshowshowt
hei
nter
nalr
unni
ngoft
he
busi
nesswi
l
lbe.I
tcont
ainst
hef
oll
owi
ng:

 Power
s,dut
iesandl
i
mit
ati
onsoft
heDi
rect
ors.

 Thepr
ocedur
eforcal
l
ingt
heAnnualGener
alMeet
ings(
AGM)hel
donceper
y
earbet
weenshar
ehol
der
sandBoar
dofDi
rect
orst
o di
scussi
mpor
tant
deci
sionsf
ort
hecompany
.

 Thev
oti
ngpr
ocedur
esatt
heAnnual
Gener
alMeet
ings.

 Thepr
ocedur
eforset
tl
ingdi
sput
es.

i
i
. Memor
andum ofAssoci
ati
on:i
tisadocumentt
hatshowst
her
elat
ionshi
poft
he
company wi
tht
he peopl
e out
side t
he company
.The documentcont
ains t
he
f
oll
owi
ng:

 Theobj
ect
ivesoft
hecompany
.(whatt
hecompanydeal
sin)

 Regi
ster
edaddr
essoft
hecompany
.

 Names,
addr
essesandqual
i
ficat
ionsoft
hedi
rect
ors.

 The amountoft
he aut
hor
ized capi
tal(
maxi
mum amountofcapi
tala
companyi
sal
l
owedt
orai
set
hrought
hesel
l
ingofshar
es)

 Af
ull
stat
ementt
hati
tisal
i
mit
edl
i
abi
l
itycompany
.
St
ateandexpl
aint
hecont
entofabusi
nesspl
an.

 Cov
erpage:t
hisi
sthef
ir
stpar
toft
hedocumentwhi
chgi
vest
her
eaderan
i
nst
anti
mpr
essi
ngoft
hebusi
ness

 Tabl
eofcont
ent
:thi
sisacr
it
icalpar
tint
hedocumentbecausei
tpr
ovi
des
t
her
eaderwi
thar
oadmapofy
ourpl
an

 Execut
ivesummar
y:t
hisi
sanat
tent
ioncapt
ureatt
hef
rontoft
hepl
angi
vi
ng
abr
iefdescr
ipt
ionoft
hebusi
nessandhi
ghl
i
ght
sthepur
poseoft
hebusi
ness
andhowt
hepur
poseoft
hebusi
nesswi
l
lbeachi
eved.

 Busi
nessi
dea:Thi
spar
tbr
ief
lydescr
ibest
hepur
poseandgoal
soft
he
busi
ness,t
heowner
soft
hebusi
nessandwhatt
heneedf
ort
hest
artoft
he
busi
nesswas.I
fthebusi
nesshasbeeni
nexi
stencel
ongi
tout
li
nesi
ts
hi
stor
yand per
for
mance t
o dat
e.I
fthe busi
ness i
s st
art
ing i
tgi
ves a
descr
ipt
ionofgoodsandser
vicest
hebusi
nessi
ntendst
oof
floadont
he
mar
ket
.

 Mar
ket
ing pl
an:A 
mar
ket
ing pl
an 
i
s a busi
ness documentout
li
ning y
ou
mar
ket
ingst
rat
egy
 andt
act
ics.I
t'
sof
tenf
ocusedonaspeci
fi
cper
iodoft
ime.

 St
affLegal
responsi
bil
i
tiesandi
nsur
ance:
descr
ibet
hequal
i
ficat
ionsand
r
esponsi
bil
i
tiesofmanagement
.Thequal
i
tyofmanagementi
sof
tent
hekey
f
act
ori
nobt
aini
ngdebtorequi
tyf
undi
ng.

 Cost
ing i
tems:consi
sts ofFi
nanci
alpl
anni
ng Requi
red st
art-
up capi
tal
Sour
ceofst
art
-upcapi
tal
.

Descr
ibet
hef
unct
ionsofabusi
nesspl
an
 I
tpr
ovi
desmor
ecl
ear
erandor
gani
zedbusi
nessi
deas.

 I
tleadst
oput
ti
ngdownofi
deasi
ntowr
it
tendocument
s.

 I
tisanoper
ati
onal
plan

 I
tisusedf
orsour
cingl
oansf
rom l
eadi
ngi
nst
it
uti
ons.

 Hel
pst
odet
ermi
nev
iabi
l
ityoft
hebusi
nessi
deas

 Pr
ovi
desananswert
othepr
ofi
tabi
l
ityoft
hebusi
ness

Expl
ainway
soff
inanci
ngbusi
nesses

 Sav
ings:per
sonalser
vingswher
etheowneroft
hebusi
nesssav
esmoneyt
ost
artupa
busi
ness.Thesewi
l
lincl
udesecur
it
ies,
real
est
ateandot
herper
sonal
asset
s.

 Bankl
oans:i
tisaf
inanci
alt
ransact
ioni
nwhi
chonepar
ty(t
hel
ender
)agr
eest
ogi
ve
anot
herpar
ty(t
hebor
rower
)acer
tai
namountofmoneywi
tht
heexpect
ati
onoft
otal
r
epay
mentwhi
chi
ncl
udesi
nter
estont
hel
oan

 Bor
rowi
ngf
rom f
ri
endsorf
ami
l
ymember
s:f
ri
endsandr
elat
ivesmaypr
ovi
deaddi
ti
onal
sour
ceoff
undsbymeansofl
eadi
ngordonat
ionswher
ether
eisachal
l
engef
ory
oung
ent
repr
eneur
stoobt
ainl
oansf
rom l
endi
ngi
nst
it
uti
ons.

 Leasi
ng:Thi
sisagr
eementwher
etheent
repr
eneurpay
samont
hlyf
eef
orusi
nganasset
,
butdoesnotbecomet
heownerunt
ilt
heendoft
hel
easi
ngper
iod.

Descr
ibedesi
rabl
ebusi
nesset
hics.

 I
ntegr
it
y:abusi
nessper
sonmustshowhi
ghl
evel
sofmor
albehav
iour
.

 Honest
y:Fr
eef
rom cheat
ing.
  Fai
rness:
abusi
nessper
sonmustbeequi
tabl
ewi
thoutanyi
njust
ice

 Loy
alt
y:t
heabi
l
ityt
osat
isf
ycust
omer
squal
i
tyandf
air
lypr
icedgoods/
ser
vices.

 Dependabi
l
ity
:a busi
ness per
son shoul
d al
way
s keep hi
s pr
omi
se because
cust
omer
spr
efert
odealwi
thadependabl
ebusi
nessper
sonandempl
oyeespr
efer
t
owor
kwi
thadependabl
eempl
oyer
.

 Fl
exi
bil
i
ty:agoodent
repr
eneurshoul
dbesot
hatt
heyar
ewi
l
li
ngt
oseeanot
her
poi
ntofv
iew.Thi
swi
l
lleadt
ohav
eloy
alcust
omer
s.

 Punct
ual
i
ty:doi
ngt
hingsont
imei
nbusi
ness.Tobepunct
ualonehast
okeept
ime
i
nal
lev
ent
sinor
dert
oshowv
aluef
orot
herpeopl
e’
sti
me.

 Responsi
bil
i
ty:mustbecount
edasawor
thyandt
rust
edper
son

8.
4 BUSI
NESSTRANSACTI
ONS

Abusi
nesst
ransact
ioni
sanexchangeofgoodsorser
viceswi
thmoneyorsomet
hing
wor
thmoney
.

4.
1Ident
if
ythedi
ff
erentt
ypesofbusi
nesst
ransact
ions

 Casht
ransact
ions-
thi
sisanexchangeofgoodsorser
viceswher
epay
menti
sdone
i
mmedi
atel
y.Thi
scanbedonet
hrought
hebankorcash.

 Cr
edi
ttr
ansact
ions-
thi
siswher
epay
menti
spost
ponedt
oal
aterdat
e.

 Bar
tert
ransact
iont
hisi
swher
ether
eisanexchangeofgoodsorper
for
manceofa
ser
vicef
orgoodsorser
vices.

8.
5 BUSI
NESSDOCUMENTS

These 
document
s i
ncl
ude r
ecei
ptr
ecor
ds,pay
rol
lrepor
ts,pai
d bi
l
ls,bank st
atement
s,
i
ncomest
atement
s,bal
ancesheet
sandt
axr
epor
ti
ngf
orms..
..A 
busi
ness 
owneruses
t
hese 
document
s t
odet
ermi
net
hef
inanci
alsuccessoft
he 
company
 andt
oident
if
yar
eas
t
hatar
eunpr
oduct
ive.

5.
1. I
dent
if
ythet
ypesofbusi
nessdocument
sanddr
aweachoneoft
hem

 Ani
nqui
ry-
isadocumentsentbyt
hebuy
ert
othesel
l
ert
ofi
ndoutmor
edet
ail
s
aboutt
hegoodshewant
stobuy
.

Ani
nqui
ryshowst
hef
oll
owi
ng:

 Descr
ipt
ionofgoods

 Ty
peandpr
iceofgoods

 Del
i
ver
yser
vices

 War
rant
sandguar
ant
ees

 Andanyot
herr
elev
anti
nfor
mat
ion

Mi
l
umbeSecondar
ySchool

P.
O.Box220567,
Kit
we

I
nqui
ryNo.
03/
18

13th
Febr
uar
y,2018

TheSal
esManager

Kal
okoBookSel
l
ers

P.
O.Box350287,

Ndol
a.

DearSi
r/
Madam.

Wewoul
dli
ket
ofi
ndouti
fyouhav
ethef
oll
owi
ngbooksi
nst
ock:
  Busi
nessst
udi
esgr
ade8byHampungani

 Busi
nessst
udi
esgr
ade9byWakumel
o

 Busi
nessst
udi
esRev
isi
onbySakal
a

I
nrepl
ypl
easei
ncl
udei
nfor
mat
ionont
ermsofpay
mentanddel
i
ver
ycondi
ti
ons.

Wai
ti
ngt
ohearf
rom y
ousoon.

Your
sfai
thf
ull
y,

MukaCar
ol

Pr
ocur
ementof
fi
cer

Tender
:Thi
sispr
epar
edbyt
hebuy
ert
othesuppl
i
err
equest
ingsuppl
i
erst
ocompet
efor
t
hepr
ovi
sionofgoodsandser
vices.Tender
sar
emost
lyusedbygov
ernmentdepar
tment
s
andpr
ivat
ecompani
es.

MI
NISTRYOFGENERALEDUCATI
ON

KI
TWEDI
STRI
CTEDUCATI
ONBOARD

TENDERFORTHESUPPLYOFNEW CURRI
CULUM BUSI
NESSSTUDI
ESBOOKS

TheMi
nist
ryofGener
alEducat
ioni
sinv
iti
ngt
ender
sfort
hesuppl
yofNew Cur
ri
cul
um
Busi
nessSt
udi
esBooksi
nthey
ear2018.

Requi
rement
s

 Theor
gani
sat
ionmustbeanappr
ovedbooksel
l
er

 Musthav
esuppl
i
edbookst
oreput
abl
elear
ningi
nst
it
uti
onsf
ort
hepast4
y
ear
s.

 Musthav
ethecapaci
tyt
osuppl
y1200bookspery
ear
.

 At
tachacopyofaudi
tedf
inanci
alr
epor
toft
heor
gani
sat
ionf
ort
hepastt
hree
y
ear
s.

 Bi
dsmustr
eacht
hepr
ocur
ementof
fi
cer
’sof
fi
ceat14: son16th
00hour
Mar
ch,
2018.

Wakumel
oEdwi
n

PRUCUREMENTOFFI
CER

QUOTATI
ON-
Thi
sisadocumentsentbyt
hesel
l
ert
othebuy
erasar
esponset
oani
nqui
ry.
Ther
ear
edi
ff
erentt
ypesofquot
ati
on.

 Cat
alogues-
Thi
sisacol
our
ful
pamphl
etshowi
ngi
temswi
tht
hei
rpr
ice

 Pr
icel
i
st-
Iti
saschedul
eoft
henamesoft
hei
temsbei
ngsol
dwi
thpr
icesagai
nstt
hem
 KALOKOBOOKSELLERS

P.
O.BOX35087,

NDOLA.

PRI
CELI
ST

REFERENCE DESCRPI
TION UNI
TPRI
CE(
K)

Gr
ade8 Busi
nessst
udi
es 80.
00

Gr
ade9 Busi
nessst
udi
es 80.
00

Gr
ade10 Commer
cemadesi
mpl
e 120.
00

Gr
ade11 Pr
inci
plesofaccount
s 120.
00

Gr
ade12 Busi
nessAccount
ing 150.
00

Ter
msandcondi
ti
ons:

 Tr
adedi
scountofor
der10%onor
derov
erK2000

 Cashdi
scount15%i
n14day
s.

 Pr
icesv
ali
dfor21day
sandi
ncl
udet
ranspor
t.

 Pr
ofor
mai
nvoi
ce-
thi
sisadocumentwhi
chshowst
hecostofgoodst
hecust
omeri
ntends
t
obuy
.
 Est
imat
es-I
tispr
epar
edbyt
hesuppl
i
ergi
vi
ngt
hepr
iceofwor
ktobedoneaccor
dingt
o
speci
fi
cgi
veni
nst
ruct
ions.

ORDER
Anor
deri
sadocumentpr
epar
edbyt
hebuy
ert
othesuppl
i
eraski
ngf
ort
hesuppl
yof
goodsorser
vices.Theor
derwi
l
lnor
mal
l
ycont
aint
hephr
ase“
pleasesuppl
ythef
oll
owi
ng”
.
I
nor
der
,thebuy
erst
atest
hequal
i
ty,
quant
it
yandpr
iceoft
hegoodst
obeor
der
ed.
QTY REF. Det
ail
s Uni
tpr
ice Di
scoun Tot
alpr
ice
no t

50 201 Commer
cebooks 120.
00 6000.
00

10%

1600.
00
20 205 Busi
nessst
udi
esbooks 80.
00

Pur
chasi
ngagentname………………………………………………….
.

Act
ivi
ty

St
udyt
hef
oll
owi
ngdocumentandanswert
hequest
ionst
hatf
oll
ow:

No.
033456

16/
03/
2018

Kal
okoBookSel
l
ers

P.
O.Box35087

Ndol
a

Mi
l
umbeSecondar
ySchool

P.
O.Box220567,

Ki
twe

MWENSE(
PLEASESUPPLYTHEFOLLOWI
NGGOODS)
.

QTY REF.
NO DETAI
LS LI
ST DI
SCOUNT TOTALPRI
CE
PRI
CE
 2 Whi
tesshi
rt
s. K810000

uni
t 461 Al
linv
oicesquot
e K45000
s or
derno.
10% K810000

(
a)Namet
hedocumentabov
e?

(
b)Whoi
sthebuy
er?

(
c)WhatdoesQTYst
andf
or?

(
d)Whatwast
hedi
scountal
l
owedi
nval
ue?

(
e)Whyi
sthi
sdocumenti
mpor
tant
?

SOLUTI
ON

(
a)Or
der

(
b)Chi
besa&co

(
c)Quant
it
y

(
d)K4,
500

(
e)Thi
sisi
mpor
tantbecauset
hesuppl
i
erwi
l
lknowt
hegoodst
hebuy
erwant
s

I
NVI
OCE

 I
tisadocumentsentt
othebuy
erf
rom t
hesel
l
er.
Itcont
ainst
hequant
it
y,descr
ipt
ion,
pr
ices,
discount
sandVal
ueAddedTax(
TAX)i
fappl
i
cabl
e.

 Ani
nvoi
cei
sadocumentt
hatst
art
stheaccount
ingpr
ocess.

 I
taf
ormsabasi
soft
hecont
ractofpur
chaseorsal
eofgoodsbet
weent
hebuy
erandt
he
sel
l
er.Ani
nvoi
cei
ssai
dtobear
equestbyt
hesuppl
i
ert
othebuy
ert
opayt
heamount
owi
ng.
 Thel
ett
ersE&OE(
Err
orsandOmi
ssi
onExpect
ed)wi
l
lnor
mal
l
yappearont
hei
nvoi
ce.I
t
meanst
hatanyer
ror
sont
hei
nvoi
cecanbecor
rect
edbyt
hesel
l
er.

I
NVOI
CE

Kal
okoBookSel
l
ers

P.
O.Box35087

Ndol
a

20thMar
ch,
2018

Mi
l
umbeSecondar
ySchool

P.
O.Box220567

Ndol
a.

Ter
ms:
5%1week,
2%2weeks,
Net1mont
h
 QTY DESCRI
PTI
ON UNI
TPRI
CE TOTAL
PRI
CE

5 BagsofSugar 100 500

10 Casesofbooks 100 1000

40 Bagsofcement 50 2000

Less 3500
10%
350
t
rade
di
scou
nt
3150
E&OE

 Adv
iceNot
e-t
hisi
sadocumentsentt
othebuy
erf
rom t
hesel
l
er.Topr
epar
etor
ecei
ve
goods.

 Di
spat
chNot
e-Thi
sissentt
oinf
ormt
hebuy
ert
hatt
hegoodshav
ebeendi
spat
ched.

 Del
i
ver
yNot
e-t
hisi
sadocumentsentt
othebuy
ert
oget
herwi
tht
hegoodst
oshow
det
ail
sofgoodsbei
ngdel
i
ver
ed.
 RECEI
PT

Recei
ptar
eissueduponorpay
mentorpay
mentbycashorcheque.
Recei
ptsi
ssuedar
e
usedassour
ce f
orr
ecor
dingent
ri
esi
nthecashr
ecei
ptj
our
nalbyt
hesel
l
erwhi
l
erecei
pt
r
ecei
vedar
eusedf
orr
ecor
dingent
ri
esi
nthecashpay
mentj
our
nal
byt
hebuy
er.

 CASHSALE-
Itser
vesmostt
hesamepur
poseast
her
ecei
ptexceptt
hatar
ecei
pti
s
al
soi
ssuedwhenpay
menti
srecei
vedf
rom debt
ors.
STATEMENTOFACCOUNT

Thi
sisadocumentt
hatconcl
udest
heaccount
ingpr
ocessbecausei
tsummar
ises al
l
t
ransact
ionst
hathav
eoccur
redbet
weent
hebuy
erandt
hesel
l
er.

8. SOURCEDOCUMENTS
6

 THEDEBI
TNOTE
 Thi
sisabusi
nessdocumenti
ssuedbyt
hesel
l
ert
othebuy
ert
ocor
rectunder
char
ge
er
ror
sint
hei
nvoi
ce.
Itmaybeadebi
tnot
eissuedordebi
tnot
erecei
ved.

 CREDI
TNOTE

Thi
sisabusi
nessdocumenti
ssuedbyt
hesel
l
ert
othebuy
ert
ocor
rectov
erchar
geer
ror
sin
t
hei
nvoi
ce.
Itmaybeacr
edi
tnot
eissuedorr
edi
tnot
erecei
ved.

 RECEI
PT

Recei
ptar
eissueduponorpay
mentorpay
mentbycashorcheque.
Recei
ptsi
ssuedar
eused
assour
cedocument
sforr
ecor
dingent
ri
esi
nthecashr
ecei
ptj
our
nal
byt
hesel
l
erwhi
l
e
r
ecei
ptr
ecei
vedar
eusedf
orr
ecor
dingent
ri
esi
nthecashpay
mentj
our
nal
byt
hebuy
er.
 CHEQUES

Deposi
tar
eissuedbyt
hebankupondeposi
tofcashorchequei
ntoabankaccount
.They
pr
ovi
deev
idencet
hatcashorchequehav
ebeendeposi
tedi
ntot
hebankaccount
.Theyact
assour
cedocument
sforr
ecor
dingent
ri
esi
nthecashr
ecei
ptj
our
nal
.

Chequecount
erf
oil
/st
abs:t
heyar
eusedassour
cedocument
sforr
ecor
dingent
ri
esi
nthe
cashpay
men

CHEQUECOUNTERFOI
L
 8.
7 BOOKSOFORI
GINALENTRY

Booksofor
igi
nal
ent
ryar
ebooksi
nwhi
cht
ransact
ionsar
efi
rstr
ecor
dedast
heyar
epost
ed
t
othe

r
elev
antbooksonadai
l
ybasi
s.Booksofor
igi
nalent
ryar
eal
soknownassubsi
diar
ybooks/
books

ofpr
imeent
ry/
jour
nal
s/daybooks.

 BooksofPr
imeEnt
ry,
Transact
ionTy
peandSour
ceDocument
s

SOURCEDOCUMENTS
BOOK

Sal
esday
book(
orSal
esj
our
nal
) f
or Dupl
i
cat
einv
oice
cr
edi
tsal
es

Pur
chases day
book (
or Pur
chases Or
igi
nal
/pur
chasesi
nvoi
ce
j
our
nal
)f
orcr
edi
tpur
chases
 Sal
es r
etur
ns day book/
Ret
urns dupl
i
cat
eCr
edi
tnot
es
i
nwar
dsday
book(
orRet
urnsi
nwar
ds
j
our
nal
)

Pur
chases r
etur
ns day
book/
Ret
urns or
igi
nal
credi
tnot
es
out
war
ds day
book (
or Ret
urns
out
war
dsj
our
nal

Cashbook f
orCash /Bank (
cheque) Recei
pts,
Deposi
tsl
i
p,chequecount
erf
oil
,cash
r
ecei
ptsandpay
ment
s
sal
esl
i
p

Pet
ty cashbook f
or smal
l cash Pet
tycashv
oucher
s
pay
ment
s

Gener
alj
our
nal

THECASHBOOK

I
dent
if
ythet
hreet
ypesofcashbooks

 SI
NGLECOLUMN/
ONECOLUMNCASHBOOK

One/
singl
ecol
umncashbook-
cont
ainsonl
ycashorbankcol
umn.

Act
ivi
ty

1.Ent
ert
hef
oll
owi
ngi
nfor
mat
ioni
ntoE.Hamankol
o’scashaccount
sfort
hemont
hof
Januar
y,2014andbal
anceof
ftheaccount
.
 St
art
edbusi
nesswi
th K900cashi
n
hand.

Boughtgoodsf
orcash K2000.

Pai
drentbycash K1500.

Sol
dgoodf
orcashK3000

Pai
dsundr
yExpensesbycash K550.

Cashpur
chases K1500.

Boughtmot
orv
ehi
clebycash K2000

Sol
uti
on.

E.
HAMANKOLO’
SCASHACCOUNT.

Dat
e Det
ail
s F Dr(
K) Cr(
K)
Jan 1 Capi
tal 9000

3 Pur
chases 2000

8 Rent 1500

10 Sal
es 3000

17 Sundr
yexpenses 550

25 Pur
chases 1500

31 Mot
orv
ehi
cle 2000

31 Bal
ance c/
d 4450

12000 12000

Feb 1 Bal
ance b/
d 4450
2.Mal
ambost
art
ed busi
nesswi
thcashatbankK4500andhadt
hef
oll
owi
ngt
ransact
ions
i
nthemont
hofJanuar
y.

Januar
y2 boughtgoodsbychequeK2000

8 pai
dforel
ect
ri
cit
ybychequeK500

10 Recei
vedachequef
rom KaomaTr
ader
sK600

20 pai
dforTr
anspor
tCost
sK200

Youar
erequi
redt
orecor
dtheabov
einf
ormat
ioni
nMal
ambo’
sBankAccountand
bal
anceof
ftheaccountatt
heendoft
hemont
h.

SOLUTI
ON

MALAMBO’
SBANKA/
C
DATE DETAI
LS F Dr Cr

2018 K K

Januar
y1 Capi
tal 4500

2 Pur
chases 2000

8 El
ect
ri
ci
ty 500
 10 KaomaTr
ader
s 600

20 Tr
anspor
tcost
s 200

31 Bal
ance c/
d 2400

5100 5100

Febr
uar
y1 Bal
ance b/
d 2400

TWOCOLUMNCASHBOOK

Twocol
umncashbook-cont
ainsbot
hcashandbankcol
umn.Thi
siswheny
oucombi
ne
t
hecash

account
sandbankaccount
s.

Act
ivi
ty

Thef
oll
owi
ngi
nfor
mat
ionr
elat
est
oKangwaCeci
l
iaasol
etr
aderf
rom whi
chy
ouar
e
r
equi
redt
opr
epar
eat
wocol
umncashbook.

2009

Sept
ember1st
art
edbusi
nesswi
thK6000cashandK10,
000banks

3.
Pai
dforel
ect
ri
cit
ybycashK500

6.BoughtgoodsbychequeK300

8.Sol
dgoodsbychequet
oNkanduK1800
 15.Cashsal
esK200

19.WagesK100wer
epai
dbycash

25.Boughtequi
pmentbychequeK4000

30.Bal
anceof
fthecashbook.

Sol
uti
on

KANGWACECI
LIA
TWOCOLUMNCASHBOOK
DATE DETAI
LS F CASHA/
C BANKA/
C

2009 DR CR DR CR

Sept1 Capi
tal 6000 10000

3 el
ect
ri
cit
y 500

6 pur
chases

300
 8 sal
es 1800

15 sal
es 200

19 wages

25 equi
pment

100

30 bal
ance c/
d
4000

7500

5600
Oct1 Bal
ance b/
d

6200 6200 11800 11800

5600 7500

Not
e:
 Dr
awi
ngs

Adr
awingi
smoneyt
akenoutoft
hebusi
nessf
orper
sonal
use.Wheny
oumakeadr
awi
ng,
y
oupay

y
our
sel
ffr
om f
utur
epr
ofi
tswhi
chwi
l
lreducey
ourcapi
tal
.

Cont
ra–ent
ry

Acont
raent
ryi
sat
ransact
iont
hataf
fect
sbot
hthecashaccountandt
hebankaccount
.
Thedoubl
e ent
ryf
oracont
raent
ryi
scompl
etedwi
thi
nthecashbook.Thi
smeanst
hata
cont
raent
ryi
snev
erpost
edt
othel
edgerwheni
tcomest
oledgerpost
ing.

Act
ivi
ty

Wr
it
eupt
hef
oll
owi
ngt
ransact
ionsi
nR.Mwebet
wocol
umncashbook,br
ingdownt
he
bal
ances.

2008

Oct
ober1st
art
edbusi
nesswi
thcashK50,
000andbankk200,
000

2pai
dcashf
orst
ampsK3,
000.

3pai
dSundayexpensesK2,
000i
ncash

5cher
ubsf
orK8,
000r
ecei
vedf
rom l
uyando

9cashsal
esK70,
000

Pai
dK60,
000cashi
ntobank

15set
tl
edK.Chi
bal
e’
saccountf
orK15,
000bycheque.

18sentG.Mwapeachequef
orK5,
000

23pai
dadv
ert
isi
ngaccountK4,
000i
ncash

25cashsal
esK80,
000

Pai
dcashi
ntobankK50,
000

26pai
dsal
ari
esbychequeK60,
000

28Dr
ewchequesf
orsel
fK10,
000

30wi
thdr
ewK30,
000f
rom bankf
orbusi
nessuse
R.MWEBETWOCOLUMNCASHBOOK.
Dat
e Det
ail
s F Cash Account Bank Account

2008 DR CR DR CR

K K K K

Oct1 Capi
tal 50,
000 200,
000

2 Post
age 3,
000

3 Sundr
yexpenses 2,
000

5 DNdhl
ovu 70,
000

9 Sal
es 8,
000

Bank/
cash c 60,
000 60,
000

15 K.
chi
bal
e 15,
000

18 G.
mwape 5,
000

23 Adv
ert
isi
ng 4,
000

25 Sal
es 80,
000

Bank/
cash 50,
000 50,
000

26 Sal
ari
es c 60,
000

28 Dr
awi
ngs 10,
000

30 Cash/
bank c 30,
000 30,
000

198,
000

31 Bal
ance c/
d 111,
000

230,
00 230,
000 318,
000 381,
00
0
 Nov1 Bal
ance b/
d 111,
00 198,
000
0

THREECOLUMNCASHBOOK

Thi
scashbooki
ssi
mil
art
otwocol
umncashbookexceptt
hati
thasanext
radi
scount
col
umnaddedont
hesi
de.Theext
radi
scountcol
umnsar
ethe(
a)di
scountal
l
owedt
hati
s
addedont
hedebi
tsi
de.
(b)di
scountr
ecei
vedt
hati
saddedont
hecr
edi
tsi
de.Thedi
scount
col
umnsar
eusedf
orent
eri
ngt
hemonet
arydi
scountv
aluet
hatabusi
nessal
l
owst
o
debt
ors/
credi
tor
sthatpaypr
ompt
ly.

Act
ivi
ty

Ent
ert
hef
oll
owi
ngi
nthet
hreecol
umncashbookofT.Mul
i
lo.

2006

Mar
ch 1bal
ancebr
oughtdownf
rom Apr
il
:cashK290,
bankK654

7boughtgoodsbychequeK120

8Monopai
dhi
saccountof120l
ess10%cashdi
scountbycheque

9pai
dthef
oll
owi
ngbycashi
neachdeduct
ing5%cashdi
scountbycheque:R.T
amul
et

K100andVRober
tsonK80

12r
ent
swaspai
dbychequeK30

15wi
thdr
ewcashf
rom bankK70

21Recei
vedf
rom Mabl
eK100bychequei
nful
lset
tl
ementofhi
saccountofK110.

22Banki
nter
estr
ecei
vedK5
 T.
MULI
LO
THREECOLUMNCASHBOOK
Dat
e Det
ail
s F Cashaccount Bankaccount Di
scount

Dr Cr Dr Cr Al
l Rec

2008 K K K K K K

May1 Bal
ance b/
f 290 654

7 Pur
chases 120

8 Maoma 108 12

9 R.
Tamal
e 5

V.
Rober
son 95 4

12 Rent 76 30

15 Cash/
bank c 70 70

21 Mabl
e 100 10
 22 I
nter
est 5

30 Bal
ance c/ 189 647
d

June Bal
ance
1

360 360 867 867 22 9

b/ 189 647
d

 PETTYCASHBOOK
Pet
tycashbooki
sabookwher
ewer
ecor
dsmal
lamountof
 cashpay
ment
sint
her
unni
ngof
dayt
odayact
ivi
ti
esoft
hebusi
ness.Forexampl
esugar
,cof
fee,sundr
yexpensescl
eani
ng
mat
eri
alf
uel
etc.

Thepet
tycashbooki
smai
ntai
nedt
hrought
hef
oll
owi
ngsy
stems:

I
mpr
esti
sasy
stem wher
ear
eimbur
sementi
smadeoft
het
otalamountpai
dinaper
iodori
t
canal
sobecal
l
edasasy
stem wher
epet
tycashi
erbegi
neachnewaccount
ingper
iodwi
th
t
hesameamountofpet
tycash.

Act
ivi
ty
Chamai
sasol
e-t
raderwhokeepsherPet
tyCashBookont
hei
mpr
esssy
stem –t
hecash
f
loatamountbei
ngK100.Hert
ransact
ionsf
ort
hemont
hofApr
ilwer
e:K
Apr
il1Pet
tycashi
nhand14.
74
Apr
il2Pet
tycashr
ecei
vedt
orest
oret
hei
mpr
ess
Apr
il4 Pur
chasedenv
elopes8.
68
Apr
il7Pai
dwages16.
20
Apr
il10Pur
chasedpost
agest
amps8.
50
Apr
il14Boughtpr
int
ingpaper17.
44
Apr
il17Costofpost
ages6.
76
Apr
il26Pai
dwages16.
66
Apr
il28 Pur
chasedenv
elopes10.
48
Requi
red:
a)Dr
awupt
hePet
tyCashBookf
ort
hemont
hofApr
ilwi
thanal
ysi
scol
umnsf
orst
ati
oner
y,
wagesandpost
ages.

b)Bal
ancet
hepet
tycashbookatt
heendoft
hemont
h,car
rydownt
hebal
anceandshowt
he
cashr
ecei
vedt
orest
oret
hecashf
loatbackt
oK100on1stMay
.

c)Expl
ainwhati
smeantbyt
hei
mpr
estsy
stem

d)Whati
stheuseoft
heanal
ysi
scol
umnsi
napet
tycashbook?

Sol
uti
on
RECI
PT DATE DETAI
LS DR CR I
NV STATI
ONERY WAGES POSTAGE
NO

100 APRI
L
1
Bal
anceb/
d 14.
7
2 8
Cash
4 85.
2
Env
elopes 8.
68 8.
68
6
7
Wages 16.
2 16.
20
10 0
St
amps 8.
50
14 8.
50
Pr
int
ingpaper 17.
44
17 17.
4
Post
age 6.
76
4
26
Wages 16.
66
6.
76
28
15.
28 Env
elopes 15.
26
16.
6
6 10.
48

15.
2
100
6

10.
4
8

84.
72 84.
7 36.
6 32.
86
2

(
c)I
mpr
estsy
stem:I
tisasy
stem wher
ear
eimbur
sementi
smadeoft
het
otalamount
pai
dinaper
iodori
tcanal
sobecal
l
edasasy
stem wher
epet
tycashi
erbegi
neachnew
 account
ingper
iodwi
tht
hesameamountofpet
tycash.
Fi
l
lint
hebl
ankswi
thsui
tabl
ewor
d/wor
ds:
(
i)Theassi
stantt
otheHeadCashi
eri
sknownas.
..
..
..
..
..
..
..
..
..
.
(
ii
)Asepar
atecashbookt
orecor
dsmal
ltr
ansact
ionsi
scal
l
ed.
..
..
..
..
..
..
..
..
..
.
(
ii
i)Theamountwhi
chi
spai
dtot
hepet
tycashi
eratt
hebegi
nni
ngofaper
iodi
sknown
as.
..
..
..
..
..
..
..
..
..
(
iv)UnderI
mpr
esssy
stem ofPet
tyCashBook,t
hePet
tyCashi
eri
srei
mbur
sedwi
tht
he
amount
equi
val
entt
owhathespentdur
ingt
he-
--
--
--
--
--
--
--

2.
1Sal
esDayBook/Sal
esJour
nal:i
sasubsi
diar
ybookwher
ecr
edi
tsal
esar
erecor
ded.
Thesour
cedocumentoft
hesal
esJour
nal
ist
hedupl
i
cat
einv
oice.

Act
ivi
ty
Fr
om t
hef
oll
owi
ngi
nfor
mat
ionpr
epar
eZ.Chanda’
sSal
esJour
nal
.
2016
Mar
ch4sol
dthef
oll
owi
ngoncr
edi
ttoKal
enga&Sonsoni
nvoi
ceNo.ZC117.
- 20boxesboom @ K25abox
- 50t
insofcobr
a@ K20at
in
- Al
lsubj
ectt
o2.
5%t
radedi
scount
Mar
ch10Mwi
l
awhol
esal
ersboughtt
hef
oll
owi
nggoodsoncr
edi
toni
nvoi
ceNo.ZC118
- 100Ebusoap@ K5each.
- 200Chi
cksoap@ K3each.
- 10%wasgi
venasat
radedi
scount
.
Mar
ch20Kal
ungul
unguboughtt
hef
oll
owi
ngoncr
edi
toni
nvoi
ceNo.ZC120
- 5casesofsugaratK120percase.
- 6boxesoft
eabags@ K20perbox.
Z.CHANDA’
SSALESJOURNAL
DATE DETAI
LS I
NV.No. SUBTOTAL TOTAL

2016 ZC117

Mar
ch4 KALENGA&SONS
 20boxesboom @ K25abox 500.
00

50t
inscobr
a@ K20pert
in 1000.
00

1500.
00

Less2.
5%t
radedi
scount 37.
00

1462.
50

Mar
ch10 MWI
LAWHOLESALERS ZC118

100Ebusoap@ K5each 500.

00

200Chi
cksoap2K3each 600.
00

1100.
00

Less10%t
radedi
scount 110.
00

990.
00

Mar
ch20 KALUNGULUNGU ZC120

5Casesofsugar@ K120percase 600.

00

6boxesoft
eabags@ K20perbox 120.
00

720.
00

Mar
ch31 Tot
alcr
edi
tsal
esf
ort
hemont
hof 3172.
50
mar
ch(
postt
othesal
esaccounti
n
t
hegener
all
edger
).

SALESRETURNSDAYBOOK/RETURNSOUTWARDSJOURNAL
I
stheJour
nali
nwhi
chr
etur
nsf
rom cr
edi
tcust
omer
sar
erecor
ded?Thesour
cedocument
f
ort
hesal
esRet
urnsJour
nal
ist
hedupl
i
cat
ecr
edi
tNot
e.
Act
ivi
ty
Z.Chandahadt
hef
oll
owi
ngsal
esRet
urnsi
ntheMont
hofMar
ch,
2016
Mar
ch7Kal
enga&Sonsr
etur
nedt
hef
oll
owi
ng
2boxesofboom @ K25abox
2t
insofcobr
a@ K20at
in
Less2.
5Tr
adedi
scount
Mar
ch28kal
ungul
ungur
etur
nedt
hef
oll
owi
ng:
1caseofsugar@ 120acase

SOLUTI
ON
Z.CHANDA’
SSALESRETURNSJOURNAL
DATE DETAI
LS Cr
..No. SUBTOTAL TOTAL

2016

Mar
ch7 KALENGA&SONS

2boxesboom @ K25abox 50.

00

2t
inscobr
a@ K20pert
in 40.
00

90.
00

Less2.
5%t
radedi
scount 2.
25

87.
75

Mar
ch28 KALUNGULUNGU

1Casesofsugar@ K120percast 120.

00

Mar
ch31 Tot
alcr
edi
tsal
esr
etur
ns f
ort
he
mont
hofmar
ch(
postt
othesal
es
207.
75
r
etur
ns accounti
nthe gener
al
l
edger
).
 2.
2PURCHASESDAYBOOK/ PURCHASESJOURNAL
Pur
chasesdaybook/pur
chasesj
our
nali
sabookofor
igi
nalent
rymai
ntai
nedt
orecor
d
cr
edi
tpur
chases(
whengoodsf
orsal
ear
eboughtoncr
edi
t)
Act
ivi
ty
Thef
oll
owi
ngt
ransact
ionsf
ort
hemont
hofAugust2001wer
eext
ract
edf
rom t
hebooks
ofLuandaTr
ader
s
August1 boughtt
hef
oll
owi
ngf
rom KaomaAFar
ms
4boxesTomat
oes@ K150.
00each
6packet
sofPot
atoesK60.
00abag
Al
lsubj
ectt
o5%t
radedi
scount
August10boughtf
rom LubembaTFar
mst
hef
oll
owi
ng:
5bagsofbut
ternut
s@ K100.
00each
10bagsofoni
on@ K35.
00perbag
August20Recei
vedani
nvoi
cef
rom Chi
pil
i
nguCSuppl
i
ers
20bagscucumber
s@ K55.
00perbag
20kggi
nger@ K30.
00perkg
Al
lsubj
ectt
o2.
5%t
radedi
scount

Sol
uti
on
LUANDATRADERSPURCHASESDAYBOOK
DATE DETAI
LS I
NVOI
CE SUBTOTAL TOTAL
No AMOUNT
2001 K K
August1 KaomaAFar
ms
600.
00
4 boxes Tomat
oes @ K150.
00
360.
00
each
960.
00
6 packet
s ofPot
atoes K60.
00 a 48.
00
bag 912.
00

August
10 Less5%t
radeDi
scount 500.
00
350.
00
850.
00

LubembaTFar
ms
August 1,
100.
00
20 5bagsofbut
ternut
s@ K100.
00 600.
00
each 1,
700.
00
42.
50
10bagsofoni
on@ K35.
00perbag
1,
657.
50

August Chi
pil
i
nguCSuppl
i
ers 3,
419.
00
31 20bagscucumber
s@ K55.
00per
bag20kggi
nger@ K30.
00per

Less2.
5%Tr
adeDi
scount

Tot
al cr
edi
t Pur
chases f
or t
he
mont
hofAugust(t
ransf
ert
othe
 pur
chases A/
cin t
he gener
al
Ledger
)

Pur
chasesRet
urnsDaybook/Ret
urnsout
war
dsJour
nal
Pur
chasesr
etur
nsDaybook/Ret
urnsout
war
dsJour
nali
sabooki
nwhi
cht
hegoods
r
etur
nedt
ocr
edi
tsuppl
i
ersar
erecor
ded.
Goodsmayber
etur
nedbecauset
hey
:
 Ar
eoft
hewr
ongki
ndornotupt
osampl
eorbecauset
heyar
edamagedont
ransi
tet
c.
Thesour
cedocumentoft
her
etur
nsout
war
dsJour
nal
isOr
igi
nal
Credi
tNot
e:
Act
ivi
ty
LuandaTr
ader
shast
hef
oll
owi
ngRet
urnsout
war
dint
hemont
hofAugust2001.
August81boxofTomat
oes@ K150.
00each t
oKaomaA.Far
ms ast
heywer
edamaged
onTr
ansi
t
2pocket
sofpot
atoes@ 60.
00eachast
heywer
eofwr
ongt
ype
Al
lsubj
ectt
o5%t
radedi
scount
August23r
etur
nedt
oChi
pil
i
ngaC.Suppl
i
ers
2bagsofcucumber
s@ K55.
00perbagt
heywer
esubj
ect
edt
o2.
5% t
rade
di
scount
.

SOLUTI
ONS
LUANDATRADERSRETURNSOUTWARDSJOURNAL
DATE DETAI
LS Cr
edi
t SUBTOTAL TOTAL
Not
e AMOUNT
No

2001 K K

August8 KAOMAAFARM
 1boxt
omat
oes@ K150.
00each 150.
00

2pocket
sPot
atoes@ K60each 120.
00

270.
00

13.
50

Less5%t
radeDi
scount 265.
50

August23 CHI
PILI
NGACSUPPLI
ERS

2bagscucumber
s @ K55.
00per 110.
00
bay
107.
25
2.
75
Less2.
5%t
radedi
scount
372.
75
Tot
al r
etur
ns out
war
ds f
or t
he
August31
mont
hofAugust

Jour
nal
Thef
oll
owi
ngappear
edi
nthebooksofGK,
Lubi
ndaon1Apr
il
,2017.

Cash K9,
000

Bank K
30,
000
Pl
antandmachi
ner
y
K
Fi
xtur
esandf
it
ti
ngs
100,
000
St
ocksofgoods
K
Debt
ors - B.
Zul
u 40,
000

- P.
Bwemby
a K
41,
000
Cr
edi
tor
s - P.
Mwape
K4,
000
- K.
mul
onga
 K2,
600

K9,
800

K6,
000

Gener
alJour
nal
s/Jour
nal
proper
Thi
sisabookofpr
imeent
rywhi
chr
ecor
dst
ransact
ionswhi
char
enotr
out
ine(
andnot
r
ecor
dedi
nanyot
herbookofpr
imeent
ry)
,forexampl
e:
 Buy
ingandsel
l
ingoff
ixedasset
soncr
edi
t.
 Openi
ngandcl
osi
ngbal
ances.

RECORDTRANSACTI
ONSI
NTHEJOURNALPROPER

Pur
chaseandsal
eoff
ixedasset
soncr
edi
t
Act
ivi
ty

a)Purchaseandsaleoff
ixedassetsoncr
edi
t
i) On4th May20x5,acompanyboughtamachi
neoncr
edi
tfr
om Maj
orLt
dforK10
mi
l
li
on.
Recor
dt hetr
ansact
ioni
nthejournal
.

Sol
uti
on

JOURNALPROPER

Date Det
ail
s F Dr Cr
2005 K’
000 K’
000
May4 Machi
nery 10000
MajorLt
d 10000
Pur
chaseofamachineser
ial
no:
1026oncredi
t.

i
i
) Sol
damot
orv
ehi
cleon10thJune20x5f
orK15mi
l
li
ononcr
edi
ttoAMul
unda.
 Showt
hej
our
nal
ent
ryandt
hepost
ingst
othel
edger
.

Sol
uti
on
JOURNALPROPER
Date Detai
l
s F Dr Cr
2005 K’
000 K’
000
June10 AMul unda 15000
Motorv ehi
cle 15000
Sal
eofamot orv
ehi
cleoncr
edi
t.

c)Openi
ngent
ri
es
Thesear
etheent
ri
esr
equi
redt
oopenupanew setofbookse.
g.whenat
raderdeci
dest
o
keephi
sbooksonadoubl
eent
rypr
inci
ple.Openi
ngent
ri
esar
esi
mpl
yent
ri
esshowi
ngt
he
f
inanci
alposi
ti
onofabusi
nessasatt
het
imeanewsetofbooksi
stobeopened.Theexcess
ofasset
sov
er
l
i
abi
l
iti
esatt
hatdat
eist
hecapi
tal
oft
hebusi
ness.
I
npr
act
ice,
openi
ngent
ri
esmaybemadeonl
yoncei
nthel
i
fet
imeoft
hebusi
ness.Howev
er,
manybookkeepi
ngexer
cisescommencebyr
equi
ri
ngy
out
odot
heopeni
ngent
ri
es.
Whenopeni
nganew setofbooks,al
lasset
sshoul
dhav
edebi
topeni
ngbal
anceswhi
l
e
l
i
abi
l
iti
esandcapi
tal
shoul
dhav
ecr
edi
topeni
ngbal
ances.

Act
ivi
ty
R.
Chal
wehasbeeni
nbusi
nessf
orsomet
imewi
thoutkeepi
ngpr
operaccount
ingr
ecor
ds.
Hehasnowdeci
dedt
ohav
eaf
ull
doubl
eent
rysetofbooks.
Hi
sasset
sandl
i
abi
l
iteson1stMay20x5ar
i easf
oll
ows:
Asset
s:Bui
l
dingsK7000000;Mot
orv
anK4500000;St
ockK1200000;Debt
ors:-C
Bwal
ya
K6000000,
OMut
onoK400000;
CashatbankK850000andCashi
nhandK300000.
Li
abi
l
iti
es:
Credi
tor
s:-W ChansaK750000,
EKasondeK600000.

Theopeni
ngent
ri
esi
nhi
sjour
nal
woul
dbeasf
oll
ows:
RChal
we Jour
nalpr
oper
Dat
e Det
ail
s F Dr Cr
2005
May 1 Bui
l
dings 7000
Mot
orv
an 4500
St
ock 1200
Debt
ors:
-CBwal
ya 600
-OMut
ono 400
Cashatbank 850
Cashi
nhand 300
Cr
edi
tor
s:-W Chansa 750
-EKasonde 600
Capi
tal
(bal
.Fi
g.) 13500
Bei
ngasset
s,l
i
abi
l
iti
esandcapi
tal
Ent
eredt
oopenanewsetofbooks 14850 14850

8.
8 THELEDGER

 Al
edgerbooki
sthemai
nbookofaccountwher
eal
lbusi
nesst
ransact
ionsunder
taken
hav
etober
ecor
ded.I
tisf
rom t
hisf
actt
hatal
ltr
ansact
ionshav
etober
ecor
dedi
nthe
l
edger
,thatwecal
li
tast
hemai
nbookofaccount
.

 I
tismadeupofasetofaccount
s.Anaccounti
sar
ecor
dofi
nfor
mat
ionr
elat
ingt
oa
par
ti
cul
ari
tem.I
thast
wosi
des.Thel
efthandsi
decal
l
edt
he‘
debi
tsi
de’andt
her
ight
handsi
decal
l
edt
he‘
credi
tsi
de’
.

 Eachsi
deofanaccounthast
hef
oll
owi
ngcol
umns:

(
i) Dat
ecol
umn–f
orent
eri
ngt
hedat
ewhenat
ransact
iont
akespl
ace.

(
ii
) Det
ail
col
umn–f
orent
eri
ngpar
ti
cul
arsofat
ransact
ion.

(
ii
i) Fol
i
ocol
umn–‘
Fol
i
o’meanspagei
tisf
orcr
ossr
efer
enci
ngoft
hedoubl
eef
fectof
at
ransact
ion.

(
iv) Amountcol
umn–f
orent
eri
ngmonet
aryv
alueofat
ransact
ion.
TYPESOFLEDGERS:

I
nar
ealbusi
ness,
ther
ear
emanyaccount
stokeepandeachaccountmayneedspacet
o
r
ecor
dtr
ansact
ionsf
ort
hewhol
eaccount
ingy
ear
.Fort
hisr
eason,abusi
nessusual
l
y
keepssev
eral
ledger
s.Thesel
edger
sar
ecl
assi
fi
edi
ntot
hree.

(
i) SALES/
CUSTOMERS’
/DEBTORS’
LEDGER

Asal
esl
edgeri
sal
edgert
hatcont
ainsaccount
sofourcust
omer
sordebt
ors.

(
ii
)PURCHASES/
SUPPLI
ERS’
/CREDI
TORS’
LEDGER

Apur
chasesl
edgeri
sal
edgert
hatcont
ainsaccount
sofoursuppl
i
ersorcr
edi
tor
s

(
ii
i)GENERAL/
NOMI
NALLEDGER

Agener
all
edgeri
sal
edgeri
nwhi
chwef
indaccount
sthatar
etodowi
thgai
ns

orl
ossest
othebusi
ness.I
twi
l
lcont
aincapi
tal
account
,al
lfor
msofl
ossesand

gai
ns.Exampl
esofaccount
stobef
oundher
ear
eel
ect
ri
cit
yaccount
,di
scount

r
ecei
vedaccount
,rentaccount
,sal
esaccount
.

Act
ivi
ty

1. KaongaTr
ader
sisourdebt
orandhadt
hef
oll
owi
ngt
ransact
ionsi
nthemont
hofMay
,
2016.

May1boughtgoodsatK250(
inv
oice125)

5sentt
hem cr
edi
tnot
eC31f
ordamagedgoodsr
etur
nedK50
 10boughtgoodsoncr
edi
tK500(
inv
oice146)

26pai
dK60(
recei
pt45)

Youar
erequi
redt
orecor
dinKaongaTr
ader
s’accounti
nthesal
esl
edger
.

SOLUTI
ON
THESALESLEDGER

KaongaTr
ader
sA/
C
Dat
e Det
ail
s F Dr Cr

2016 K K

May 1 I
nvoi
ce125 250

5 Sal
esRet
urns 50

10 I
nvoi
ce146 500

26 CashRec45 640

31 c/
d 60

750 750

Jun 1 b/
d 60

NOTE:

 Bei
ngadebt
or,KaongaTr
ader
s’accounti
sdebi
tedwhenev
ert
heypur
chasedgoods
becauset
heyr
ecei
vedt
hegoodsandwhenev
ert
hemadeapay
mentandr
etur
nedt
he
goodst
hei
raccounti
scr
edi
tedbecauset
heygav
eoutmoneywhent
heypai
dand
gav
eoutgoodswhent
heyr
etur
nedt
hegoods.

 Theyhav
eadebi
tbal
anceofK60i
ndi
cat
ingt
hatt
heyar
est
il
lowi
ngusK60.
2.Thef
oll
owi
ngl
edgeraccountappear
edi
nthebooksofChambi
ngaWhol
esal
ersi
nthe
mont
hofJanuar
y2015.

KAMUKOSHI
’
SACCOUNT

Dat
e Det
ail
s F Dr Cr

2015 K K

Jan 1 Bal
ance b/
f 3,
550

15 Sal
es 45,
060

20 Ret
urnsi
nwar
ds (
a)

25 Di
scountal
l
owed 6,
500

30 Cash 31,
540

31 Bal
ance c/
d 5,
000

? (
b)

Feb 1 bal
ance b/
d 5,
000

(
i) I
sKamukoshi
aDebt
ororCr
edi
tor
?

(
ii
) Cal
cul
atet
hemi
ssi
ngf
igur
esofr
etur
nsi
nwar
dsonJanuar
y20,
in(
a).

(
ii
i) Whatar
ethet
otal
sinKamukoshi
’
sledgeraccounti
n(b)
?

(
iv) I
nwhi
chl
edgerwoul
dKamukoshi
’
saccountbef
ound?

SOLUTI
ON
i
. Debt
orbecausehi
sbal
anceb/
fandsal
esar
eont
hedebi
tsi
dei
ndi
cat
ingt
hathe
boughtt
hegoods.

i
i
. K5,
570

i
i
i. K48,
610

i
v. TheSal
es/
Debt
orsl
edgersi
ncehei
sourdebt
or.

3.Lumbwe Tr
aderi
s ourcr
edi
tor
.Recor
dthe f
oll
owi
ng t
ransact
ions i
n Lumbwe’
s
accounti
ntheCr
edi
tor
s’Ledgerofourbooksofaccount
.

2014

June1 Pur
chasedgoodsoncr
edi
tK450(
inv
oice225)

5 Recei
vedadebi
tnot
e(D20)wi
thdamagedgoods

26 SentLumbwet
rader
sachequef
orK200t
opayouraccount

(
chequeNo.465)

SOLUTI
ON

LUMBWETRADERSA/
C

Dat
e Det
ail
s F Dr Cr

2014

Jun 1 I
nvoi
ce225 450

5 Pur
chasesr
etur
ns 20

26 ChequeNo465 200

30 Bal
ance c/
d 230
 450 450

Jul
y 1 Bal
ance b/
d 230

NOTE:

 Bei
ngcr
edi
torLumbweTr
ader
s’accounti
scr
edi
tedwhenhesuppl
i
edt
hegoodsbecause
hegav
eoutt
hegoodsandhei
sdebi
tedwhenwer
etur
nedt
hegoodsandwhenwepai
d
becauseher
ecei
vedt
hegoodsandmoneyr
espect
ivel
y.

 Hehasacr
edi
tbal
anceofK230i
ndi
cat
ingt
hatwest
il
lowehi
m K230

4.Thef
oll
owi
ngl
edgeraccountappear
edi
nthebooksofMwi
l
akal
andei
nSept
ember
2012.

Dat
e Det
ail
s F Dr Cr

2012 K K

Sept1 Bal
ance b/
f 2500

5 Sal
es 1500

14 Pur
chasesr
etur
ns 200
 20 Bank 350

30 Bal
ance c/
d (
a)

? (
b)

Oct 1 Bal
ance b/
d (
c)

Act
ivi
ty

i
. Whatwast
hebal
ance(
a)onSept
ember302012?

i
i
. Whatwast
hebal
ance(
b)

i
i
i. Thebal
anceb/
f(c)i
s…………….

THEDOUBLEENTRYPRI
NCI
PLE

Doubl
eent
rypr
inci
plest
atest
hat
;Debi
tther
ecei
verandcr
edi
tthegi
ver
.

Thi
sisagol
denr
ulei
nBookkeepi
ngwhi
chal
l
owsbookst
obal
ancebecauset
oev
ery
t
ransact
ion,
ther
ear
etwoaspect
s.Oneaspecti
sgi
vi
ngwhi
l
etheot
heraspecti
srecei
vi
ng
t
hesameamountbei
nggi
ven.

Toi
dent
if
ytheaccountt
obedebi
tedorcr
edi
ted,

 Assumet
haty
ouar
etheowneroft
hebusi
ness.

 I
fiti
sacashorbankt
ransact
ion,t
hinki
nter
msofmoney(
whi
chaccounti
sgi
vi
ng
moneyandwhi
chaccounti
srecei
vi
ngmoney
).

 I
fiti
sacr
edi
ttr
ansact
ion,t
hinki
nter
msofgoods(
whi
chaccounti
sgi
vi
ngt
hegoods
andwhi
chaccounti
srecei
vi
ngt
hegoods)
.

1. Fr
om t
hef
oll
owi
ngi
nfor
mat
ion,
youar
erequi
redt
ost
atet
heaccountt
obedebi
ted
 andt
heaccountt
obecr
edi
ted.

(
i) Boughtgoodsbycash

(
ii
) Sol
dgoodsbycheque

(
ii
i) Pai
dforel
ect
ri
cit
ybycash

(
iv) Pai
dMul
engabycheque

(
v) Cashsal
es

(
vi) Boughtequi
pmentbycash

(
vii
) Rentwaspai
dbycheque

(
vii
i
) Recei
vedcashf
rom Chanda

(
ix) St
art
edbusi
nesswi
thcashatbank

SOLUTI
ON

TRANSACTI
ON ACCOUNT ACCOUNT
DEBI
TED CREDI
TED

(
i) Boughtgoodsbycash Pur
chases Cash

(
ii
) Sol
dgoodsbycheque Bank Sal
es

(
ii
i) Pai
dforel
ect
ri
cit
ybycash El
ect
ri
cit
y Cash

(
iv) Pai
dMul
engabycheque Mul
enga Cash

(
v) Cashsal
es Cash Sal
es

(
vi) Boughtequi
pmentbycash Equi
pment Cash

(
vii
) Rentwaspai
dbycheque Rent Bank

(
vii
) Recei
vedcashf
rom Chanda cash Chanda

(
ix) St
art
edbusi
nesswi
thcashatbank Bank Capi
tal
 Theaccount
swer
edet
ermi
nedasf
oll
ows:

i
. Thekeywor
dsher
ear
eboughtandcash.Fr
om bought
,wecameupwi
tht
he
pur
chasesaccountandcashi
sanaccountoni
tsown.Thecashaccounti
scr
edi
ted
becausei
tisgi
vi
ngmoney
.Thepur
chasesi
srepr
esent
ingt
heaccountr
ecei
vi
ng
t
her
efor
e,i
tisdebi
ted.

i
i
. Fr
om t
hesol
d,wehav
esal
es.Theot
heraccounti
sbankf
rom t
hewor
dcheque.
BankA/
Cisdebi
tedbecausei
tisr
ecei
vi
ngmoneywhengoodsar
esol
dbycheque
andt
hesal
esA/
Crepr
esent
stheaccountgi
vi
ng.

i
i
i. Theaccount
sher
ear
eel
ect
ri
cit
yandcash.ThecashA/
Ciscr
edi
tedbecausei
tis
gi
vi
ngmoneyt
opayf
orel
ect
ri
cit
y.El
ect
ri
cit
yisr
epr
esent
ingt
heaccountr
ecei
vi
ng
t
her
efor
eiti
sdebi
ted.

i
v. Mul
engai
sdebi
tedbecausehei
srecei
vi
ngmoneywhi
l
ecashi
scr
edi
tedbecausei
t
i
sgi
vi
ngt
opayMul
enga.

v
. Cashi
srecei
vi
ngmoneyaf
tersel
l
ingt
hegoodshencedebi
tedandsal
esr
epr
esent
s
t
heaccountgi
vi
nghencecr
edi
ted.

v
i. Wecannotcal
lthi
soneaspur
chasesbecauset
henameofanasset(
equi
pment
)is
gi
ven.Thet
woaccount
sar
eequi
pmentandcash.Cashi
scr
edi
tedbecausei
tis
gi
vi
ngt
hemoneyt
obuyanequi
pmentandequi
pmenti
sdebi
tedbecausei
tis
r
epr
esent
ingt
heaccountr
ecei
vi
ng.

v
ii
. Bankaccounti
scr
edi
tedbecausemoneyf
rom t
hebanki
susedt
opayf
orr
ent
hencei
tisgi
vi
ngandt
her
enthasr
ecei
ved.

v
ii
i. Chandawasgi
vi
ngoutmoneybycasht
her
efor
e,hei
scr
edi
tedwhi
l
ecashwas
r
ecei
vedandt
hecashaccounthasbeendebi
ted.

i
x. Moneywast
akent
othebankt
ost
artabusi
nesst
her
efor
e,t
hebankaccount
 r
ecei
vedhencei
tisdebi
tedandmoneyf
orst
art
ingabusi
nessi
scal
l
edcapi
tal
since
capi
tal
takeni
ntot
hebankhencet
hebankaccounti
scr
edi
ted.

2.Fr
om t
hef
oll
owi
ngt
ransact
ionswr
it
etheaccountt
obedebi
tedandt
heaccountt
o
becr
edi
ted.

TRANSACTI
ON ACCOUNT ACCOUNT
TO BE TO BE
DEBI
TED CREDI
TED

I Pur
chased a mot
or v
ehi
cle by
chequeK14,
000

I
i Sol
dgoodst
oA.Kaomaoncr
edi
t
K7,
000

I
ii Pai
dJ.Mot
orsbychequeK4,
500

I
v Wi
thdr
ew cash f
rom t
he bank
K2,
000f
orbusi
nessuse

V Pai
dwagesandsal
ari
esbycheque
K8,
000

Vi Ret
urnedgoodst
oB.Tr
ader
sK500

SOLUTI
ON
 TRANSACTI
ON ACCOUNTTO BE ACCOUNT TO
DEBI
TED BACREDI
TED

I Pur
chased a mot
or v
ehi
cle by Mot
orv
ehi
cle Bank
chequeK14,
000

I
i Sol
dgoodst
oA.Kaomaoncr
edi
t A.Kaoma Sal
es
K7,
000

I
ii Pai
dJ.Mot
orsbychequeK4,
500 J.Mot
ors Bank

I
v Wi
thdr
ew cash f
rom t
he bank Cash Bank
K2,
000f
orbusi
nessuse

V Pai
dwagesandsal
ari
esbycheque Wages and Bank
K8,
000 sal
ari
es

Vi Ret
urnedgoodst
oB.Tr
ader
sK500 B.Tr
ader
s Ret
urns
i
nwar
ds

Act
ivi
ty

3.Compl
etet
hef
oll
owi
ngt
abl
e

Tr
ansact
ion Accountt
o Accountt
o be
cr
edi
ted
bedebi
ted

a Goodsboughtoncr
edi
ttoJ.Rei
d. Pur
chasesa/
c J.Rei
dal
c

b Goodssol
doncr
edi
tB.Per
kins. b.Per
kinsa/
c Sal
esa/
c

c Van bought on cr
edi
tfr
om H. Vana/
c H.Thomasa/
c
Thomas.

d Goodssol
d,achequebei
ngr
ecei
ved Banka/
c Sal
esa/
c
 i
mmedi
atel
y.

e Goodssol
dforcash. Casha/
c Sal
esa/
c

f Goodspur
chasedbyusr
etur
nedt
o H.Har
dya/
c Pur
chases
suppl
i
er,
H.Har
dy. r
etur
nsa/
c

g Machi
ner
ysol
dforcash. Casha/
c Machi
ner
ya/
c

h Goodssol
dret
urnedbycust
omer
,J. Sal
es r
etur
ns J.Nel
sona/
c
Nel
son. a/
c

i Goods boughton cr
edi
tfr
om D. Pur
chasesa/
c D. Si
mpson
Si
mpson. a/
c

j Goodswer
etur
nedt
oH.For
bes. H.For
besa/
c Pur
chases
r
etur
nsa/
c

RECORDI
NGBUSI
NESSTRANSACTI
ONSI
NTHELEDGERACCOUNTS

Ev
erybusi
nesst
ransact
ionhasadoubl
eef
fectont
heequat
ionandt
hebusi
ness.Fort
his
r
eason,
weuset
hedoubl
eent
rypr
inci
plet
orecor
dtr
ansact
ions.

Ther
ulesf
ordoubl
eent
rybookkeepi
ngar
e:

a)Adebi
tent
ryi
smadewhent
her
eis:

i
. ani
ncr
easei
nthev
alueofanasset

i
i
. adecr
easei
ntheamountofal
i
abi
l
ity

i
i
i. ani
ncr
easei
ntheamountofanexpense

i
v. adecr
easei
ntheamountofi
ncome

b)Acr
edi
tent
ryi
smadewhent
her
eis:
 i
. adecr
easei
nthev
alueofanasset

i
i
. ani
ncr
easei
ntheamountofal
i
abi
l
ity

i
i
i. adecr
easei
ntheamountofanexpense

i
v. ani
ncr
easei
ntheamountofani
ncome

Act
ivi
ty

Thef
oll
owi
ngt
ransact
ionsr
elat
est
oG.Zul
u.Youar
erequi
redt
opr
epar
eledgeraccount
s

2009

Jan 1 St
art
edbusi
nesswi
thK100,
000atbank

4 Wi
thdr
ewK40,
000cashf
rom bankf
orbusi
nessuse

8 Pai
drentbychequeK1,
000

11 Boughtof
fi
ceequi
pmentbychequeK5,
000

12 BoughtgoodsbycashK3,
000

15 Sol
dgoodsbychequeK4,
000

28 K7,
000wor
thofgoodswer
eboughtoncr
edi
tfr
om Musonda.

SOLUTI
ON

Thest
epsr
equi
redt
oanswert
hequest
ionar
e:

1.i
dent
if
ythet
woaccount
srequi
redf
oreacht
ransact
ion.

2.I
dent
if
ytheaccountt
odebi
tedandt
heaccountt
obecr
edi
ted.

3.Makeasummar
yoft
heaccount
sneeded.

4.Recor
dthet
ransact
ionsi
nthel
edgeraccount
s.

St
eps1&2
Jan1 Bank–Dr
Capi
tal –Cr

Jan4 Cash-Dr
Bank – Cr

Jan8 Rent–Dr
Bank–Cr

Jan11 Of
fi
ceequi
pment–Dr
Bank-Cr

Jan12 pur
chases–Dr
Cash-Cr

Jan15 Bank–Dr
Sal
es-Cr

Jan28 Pur
chases–Dr
Musonda-Cr

St
ep3

Thesummar
yofaccount
sneededt
orecor
dtheabov
etr
ansact
ionsar
e:

1.Capi
tal
account

2.Bankaccount

3.Cashaccount

4.Rentaccount

5.Of
fi
ceequi
pmentaccount

6.Pur
chasesaccount

7.Sal
esaccount

8.Musondaaccount
St
ep4
Ledgeraccount
s
CAPI
TALACCOUNT
Dat
e Det
ail
s F Dr Cr

2009 K K

Jan1 Bank 100,

000

BANKACCOUNT
Dat
e Det
ail
s F Dr Cr

2009 K K

Jan1 Capi
tal 100,
000

4 Cash 40,
000

8 Rent 1,
000

11 Equi
pment 5,
000

15 Sal
es 4,
000

CASHACCOUNT
Dat
e Det
ail
s F Dr Cr

2009 K K

Jan4 Bank 40,

000

12 Pur
chases 3,
000
 RENTACCOUNT
Dat
e Det
ail
s F Dr Cr

2009 K K

Jan8 Bank 1,
000

EQUI
PMENTACCOUNT
Dat
e Det
ail
s F Dr Cr

2009 K K

Jan11 Bank 5,
000

PURCHASESACCOUNT
Dat
e Det
ail
s F Dr Cr

2009 K K

Jan12 Cash 3,
000

28 Musonda 7,
000

SALESACCOUNT
Dat
e Det
ail
s F Dr Cr
 2009 K K

Jan15 Bank 4,
000

MUSONDAACCOUNT
Dat
e Det
ail
s F Dr Cr

2009 K K

Jan28 Pur
chases 7,
000

NOTE:Theaccountdebi
tedorcr
edi
tedi
stheonewhi
chhast
heheadi
ngont
opnott
he
det
ail
.Fori
nst
ance,i
nthebankaccountabov
e,onJan1i
tisnott
hatcapi
talhasbeen
debi
ted.Theaccountdebi
tedont
hisdat
eist
hebankaccount
.

BALANCI
NG LEDGER ACCOUNTS:Account
sthathasmor
ethanoneent
ryneedt
obe
bal
anced.I
nthecaseoft
heabov
eaccount
s,t
hebank,t
hecash,andt
hepur
chases
account
sneedbal
anci
ng.Al
lthosewi
thsi
ngl
eent
ri
esar
enotnecessar
ytobebal
anced.

Thebal
anci
ngpr
ocedur
eisasf
oll
ows:

1.Addal
lthedebi
tsandcr
edi
ts.Wr
it
etheset
otal
sonasepar
atepaper
.

2.Putt
hegr
eat
eramountonbot
hsi
desoft
heaccountaf
terski
ppi
ngal
i
neencl
osedi
nli
nes.

3.Subt
ractt
hesmal
l
eramountf
rom t
hegr
eat
eramountandputt
hedi
ff
erentwher
ethe
shor
tagei
s.Thi
sfi
gur
eiscal
l
edbal
ancecar
ri
eddown.(
c/d)andshownatt
heendoft
hat
par
ti
cul
armont
hory
ear
.

4.Thebal
ancecar
ri
edi
sbr
oughtdownont
heopposi
tesi
deandi
scal
l
edbal
ancebr
ought
down(
b/d)
.Thi
sisdoneatt
hebegi
nni
ngoft
hef
oll
owi
ngmont
hory
ear
.Thec/
dandb/
d
ar
eputi
nthef
oli
ocol
umn.

Appl
yi
ngt
heabov
est
epst
othebankaccountabov
e.
1.Thedebi
tsi
degi
vesK104,
000,t
hecr
edi
tsi
degi
vesK46,
000.Thi
smeansdeposi
tsi
nthe
bankamount
edt
oK104,
000andwi
thdr
awsamount
edt
oK46,
000.Theamountofmoney
whi
chr
emai
nedi
nthebankaccounti
sK58,
000asseenbel
ow.

2.Thegr
eat
eramounti
sK104,
000hencei
tisputonbot
hsi
desasbel
ow.

3.Thedat
egi
vent
othebal
ancec/
dist
hel
astdayoft
hataccount
ingper
iod,wher
east
he
dat
efort
hebal
anceb/
dist
hef
ir
stdayoft
henextaccount
ingper
iod.

BANKACCOUNT
Dat
e Det
ail
s F Dr Cr

2009 K K

Jan1 Capi
tal 100,
000

4 Cash 40,
000

8 Rent 1,
000

11 Equi
pment 5,
000

15 Sal
es 4,
000

31 Bal
ance c/
d 58,
000

104,
000 104,
000

Feb1 Bal
ance b/
d 58,
000

CLASSI
FICATI
ONOFACCOUNTS

Account
scanbegr
oupedi
ntot
hreecl
asses;

(
a)Per
sonalAccount
s:t
hese ar
e account
sthatcont
aint
he name ofa per
son or
 company
.They ar
e account
s ofdebt
ors(
cust
omer
s)and cr
edi
tor
s(suppl
i
ers)
.
Exampl
esi
ncl
udeShopr
it
ea/
c,Bandaa/
c,Ty
reki
nga/
c,et
c.

(
b)RealAccount
s:t
hesear
eaccount
sthatcont
ainnamesofasset
s.Exampl
esi
ncl
ude:
machi
ner
y,pr
emi
ses,
equi
pment
,et
c.

(
c)Nomi
nal
orFi
cti
ti
ousAccount
s:t
hesear
eaccount
susedf
orcal
cul
ati
ngpr
ofi
tsorl
oses
oft
hebusi
ness.Theycont
ainr
evenueexpendi
tur
e(expenses)andr
evenuer
ecei
pts
(
income)
.Theyi
ncl
uder
entr
ecei
ved,sal
ari
es,di
scountr
ecei
ved,st
ati
onar
y,sal
es,and
pur
chases,
etc.

Act
ivi
ty

Cl
assi
fyt
hef
oll
owi
ngaccount
sint
oreal
,nomi
nal
andper
sonal
account
s:

i
. Pr
emi
sesaccount

i
i
. Maj
orl
tdaccount

i
i
i. I
nsur
anceaccount

i
v. A.Muy
undaaccount

v
. Bankaccount

v
i. Rentr
ecei
vedaccount

v
ii
. Cashaccount

SOLUTI
ON

1.Real 2.Per
sonal 3.Nomi
nal 4.Per
sonal

5.Nomi
nal 6.Nomi
nal 7.Real

Act
ivi
ty

Fr
om t
hef
oll
owi
ngl
edgeraccount
s,i
dent
if
ythel
edgerbooki
ntowhi
cheachaccount
 woul
dber
ecor
ded.

SOLUTI
ON

1.Capi
tal
account (
gener
all
edger
)

2.Cashaccount (cashbook)

3.Bankaccount (cashbook)

4.Rentaccount (
gener
all
edger
)

5.Mot
orv
anaccount (
gener
all
edger
)

6.Pur
chasesaccount (
gener
all
edger
)

7.A.Chol
aaccount(
cust
omer
) (
sal
esl
edger
)

8.Mot
ori
nsur
anceaccount (
gener
all
edger
)

9.Sal
esaccount (
gener
all
edger
)

10.B.Phi
riaccount(
suppl
i
er) (
pur
chasesl
edger
)

11.Rat
esaccount (
gener
all
edger
)

12.Dr
awi
ngsaccount (
gener
all
edger
)

13.Sal
ari
esaccount (
gener
all
edger
)

8.
9 THETRI
ALBALANCE

 Def
ineat
ri
albal
ance
 Expl
aint
hepur
poseofat
ri
albal
ance
 Ext
ractat
ri
albal
ancef
rom l
edger
.
 DEFI
NEATRI
ALBALANCE

At
ri
albal
ancei
sdef
inedasal
i
stofbal
ancesext
ract
edf
rom t
hel
edgeraccount
sar
ranged
underdebi
tandcr
edi
tcol
umnswhi
chwhenaddedt
het
otal
smustbeequal
.

EXPLAI
NTHEPURPOSEOFTHETRI
ALBALANCE?
Thepur
poseofat
ri
albal
ancei
s:
 Tocheckt
hear
it
hmet
icaccur
acyorer
ror
sfr
om t
hel
edger
.
 Tocheckwhet
hert
hedoubl
eent
ryhasbeencompl
eted.
 Tocheckf
raud.

Byv
irt
ueoft
hepr
inci
pleofdoubl
eent
rybook-
keepi
ng,t
het
otal
sofdebi
tandcr
edi
t
bal
ancesmustagr
ee.Shoul
dthi
snotbet
hecase,
thent
her
emustbeaner
rori
nthebooks
ofaccount
.

PREPAREATRI
ALBALANCE

Thef
ir
stt
aski
npr
epar
ingat
ri
albal
ancei
stobal
anceal
lthel
edgeraccount
s,andt
hent
he
bal
ancesmustbeext
ract
edandent
eredi
nthet
ri
albal
ance. Whenext
ract
ingt
het
ri
al
bal
ance,
thef
oll
owi
ngpoi
ntsshoul
dbet
akennot
eof
:

i
. I
fal
edgeraccounthasadebi
tbal
ance,t
hebal
ancei
sent
eredont
hedebi
tsi
deof
t
het
ri
albal
ance.
i
i
. I
fal
edgeraccounthasacr
edi
tbal
ance,t
hebal
ancei
sent
eredont
hecr
edi
tsi
deof
t
het
ri
albal
ance.
i
i
i. I
fal
edgeraccounti
scl
osed,
thennoent
ryi
stakent
othet
ri
albal
ance.

RULESOFTHETRI
ALBALANCE

TheALEGpr
inci
ple:
-
 A L E G

DR CR

ASSETS LI
ABI
LITI
ES EXPENSES GAI
NS

DR CR

Thi
smeans:
-

DEBI
T–ALLASSETSANDEXPENSES
CREDI
T-ALLI
NCOMESANDLI
ABI
LITI
ES

Act
ivi
ty
PREPARI
NGATRI
ALBALANCEFROM ALI
STOFBALANCESEXTRACTEDFROM

LEDGERACCOUNTS.

1.J.JACOBSTr
ader
shadt
hef
oll
owi
ngbal
ancesasat31Januar
y2017.

K K
 Banki
ng 4600 Cr
edi
tor
s 1400

Dr
awi
ngs 14000 St
ock 10000

Sal
es 55500 Di
scountal
l
owed 1400

Sal
esr
etur
ns 4500 pur
chases 45000

Cash 2000 Fur

nit
ure 13500

Rent 1500 Ret

urnsout
war
ds 6500

Debt
ors 30000 I
nsur
ance 2500

Di
scountr
ecei
ved 7000 Wages&sal
ari
es 7000

Capi
tal 76300 Mot
orv
ehi
cle 15500

St
ati
oner
y 1500

Youar
erequi
redt
oext
ractat
ri
albal
anceasat31Januar
y2017.

SOLUTI
ONS

J.JACOBS’
TRADERSTRI
ALBALANCEASAT31JANUARY2017

Det
ail
s DR CR
 K K

Banki
ng 4600

Dr
awi
ngs 14000

Sal
es 55500

Sal
esr
etur
ns 4500

Cash 2000

Rent 1500

Debt
ors 30000

Cr
edi
tor
s 14000

Di
scountr
ecei
ved 7000

St
ock 10000

Di
scountal
l
owed 1400

Pur
chases 45000

Ret
urnsout
war
ds 6500

Wages&sal
ari
es 7000

Capi
tal 76300

Mot
orv
ehi
cle 15500

St
ati
oner
y 1500

153000 153000

NOTE:
 Topr
epar
eaTr
ialBal
ancef
rom al
i
stofbal
ancesy
ouneedt
oident
if
yaccountwi
thdebi
t
bal
ancesandaccount
swi
thcr
edi
tbal
ances.

I
nthi
squest
iony
ouwi
l
lnot
icet
hatal
lAsset
s,expensesar
edebi
tedandal
lgai
nsand
l
i
abi
l
iti
esar
e

cr
edi
ted.Thi
scanbesummar
izedusi
ngacr
ony
m ALEG

Asset
:Bank,
Cash,
Banki
ng,
Debt
ors,
Stock,
Mot
orv
ehi
cle.

Li
abi
l
iti
es:
Credi
tor
s

Expenses:
Discountr
ecei
ved,
Pur
chases,
Rent
,Wages&sal
ari
es,
Stat
ioner
y,Sal
esr
etur
ns

Gai
ns:
Discountr
ecei
ved,
Sal
es,
ret
urnsout
war
ds

2.Thef
oll
owi
ngt
ri
albal
ancewasext
ract
edbyKal
omboon31December
,2017,f
ail
edt
o
bal
ance.

Tr
ial
bal
anceasat31December
,2017.

DETAI
LS DR(
K) CR(
K)
F

Sal
es 150140

Machi
ner
y 74800

Debt
ors 15200

cr
edi
tor
s 8500

Rentandr
ates 2100

Car
ri
agesout
war
ds 3500

pur
chases 90500

Capi
tal 25000

Bankov
erdr
aft 2460
 176300 195900

Youar
erequi
redt
ocor
rectt
het
ri
albal
ancepr
epar
edbyKal
omboon31December2017.

SOLUTI
ON:

Tr
ial
bal
anceasat31December
,2017.

DETAI
LS DR(
K) CR(
K)
F

Sal
es 150140

Machi
ner
y 74800

Debt
ors 15200

Cr
edi
tor
s 8500

Rentandr
ates 2100

Car
ri
agesout
war
ds 3500

pur
chases 90500

Capi
tal 25000

Bankov
erdr
aft 2460

186100 186100
 NOTE:

I
nsuchaquest
ion,y
ouneedt
oident
if
yent
ri
eswhi
char
ewr
ongl
ypostandpostt
hem
cor
rect
ly.

i
. Sal
esar
eagai
nwhi
chshoul
dcr
edi
tedbutwer
ewr
ongl
ydebi
ted

i
i
. Machi
ner
yisanassetshoul
dbedebi
tedbutwer
ewr
ongl
ycr
edi
ted

i
i
i. Cr
edi
tor
sar
eal
i
abi
l
itywhi
chshoul
dbecr
edi
tedbutwer
ewr
ongl
ydebi
ted

i
v. Rentandr
ates,car
ri
agesout
war
dsandpur
chasesar
eexpenseswhi
chshoul
dbe
debi
tedbutwer
ewr
ongl
ycr
edi
ted.

v
. Bankov
erdr
afti
sal
soal
i
abi
l
itywhi
chshoul
dbecr
edi
tedbutwaswr
ongl
ydebi
ted.

Act
ivi
ty
Youar
erequi
redt
opr
epar
eaTr
ial
Bal
anceandbal
ancei
tasat31/
03/
09
K
Pur
chases 61,
420
Sal
es 127,
245
St
ock(
inv
ent
ory
) 7,
940
Capi
tal 25,
200
Bankov
erdr
aft 2,
490
Cash 140
Di
scountr
ecei
ved 62
Di
scountal
l
owed 2,
480
Ret
urnsi
nwar
ds 3,
486
Ret
urnsout
war
ds 1,
356
Car
ri
ageout
war
ds 3,
210
Rent&i
nsur
ance 8,
870
Al
l
owancef
ordoubt
ful
debt
s 630
Fi
xtur
esandf
it
ti
ngs 1,
900
Van 5,
600
Debt
ors 12,
418
Cr
edi
tor
s 11,
400
Dr
awi
ngs 21,
400
Wages&sal
ari
es 39,
200
Gener
alof
fi
ceexpenses 319

Sol
uti
on
TRAI asat31stmar
LBALANCE( ch,
2009)
Det
ail
s DR CR

K K

Pur
chases 61,
420

Sal
es 127,
245

St
ock(
inv
ent
ory
) 7,
940

Capi
tal 25,
200
Bankov
erdr
aft 2,
490

Cash 140

Di
scountr
ecei
ved 62

Di
scountal
l
owed 2,
480

Ret
urnsi
nwar
ds 3,
486

Ret
urnsout
war
ds 1,
356

Car
ri
ageout
war
ds 3,
210

Rent&i
nsur
ance 8,
870

Al
l
owancef
ordoubt
ful
debt
s 1,
900

Fi
xtur
es&f
it
ti
ngs 5,
600

Van 12,
418

Debt
ors 630

Cr
edi
tor
s 21,
400

Dr
awi
ngs 39,
200

Wages&sal
ari
es 319

Gener
alof
fi
ceexpenses 11,
400

168,
383 168,
383
 9. FI
NALACCOUNTS
1

1.Whatar
efi
nal
account
s?

ANS:Fi
nal
Account
sref
erst
oTr
adi
ngaccount
,Pr
ofi
t/
lossaccountandt
heBal
ancesheet
.

TheTr
adi
ngAccount

1.Whati
str
adi
ng?

ANS:
iti
sbuy
ingandsel
l
ingwi
thani
ntent
ionofmaki
ngpr
ofi
ts

2.St
atet
heuseofaTr
adi
ngAccount

 Tr
adi
ngAccounti
sanAccounti
nwhi
cht
heTr
adi
ngaspectoft
hebusi
nessi
s
r
ecor
ded.

 I
tisaf
inanci
alst
atementusedt
oshow Gr
ossPr
ofi
torGr
ossLossoft
he
busi
nessatapar
ti
cul
arper
iod.

TERMSUSEDI
NTHETRADI
NGACCOUNT

Tur
nov
er

 I
tmeansNetSal
es

 I
tist
hedi
ff
erencebet
weensal
es(
goodsSol
d)andsal
esr
etur
ns/
ret
urnsi
nwar
ds
(goodssol
dbuthav
ebeenr
etur
ned)

Gi
venK200sal
esandK25sal
esr
etur
ns/
Ret
urnsi
nwar
dsf
ort
hey
ear
.Cal
cul
atet
urnov
er

SOLUTI
ON:
Tur
nov
er=Sal
es-Sal
esRet
urns/
Ret
urnsi
nwar
ds

K200-
-K25
 Ther
efor
eTur
nov
er=K175

NOTE:
whent
her
ear
enoSal
esr
etur
ns/
Ret
urnsi
nwar
dst
hesal
esi
sthenTur
nov
er.

 Openi
ngst
ock

 i
tist
hev
alueofgoodst
hebusi
nesshasunsol
datt
hebegi
nni
ngoft
heper
iod

Cl
osi
ngSt
ock

 Thi
sist
hev
alueofgoodsnotsol
datt
heendoft
het
radi
ngper
iod.I
tisar
ri
vedat
af
terdoi
ngast
ockt
aki
ng.

Kabungoboughtgoodsf
orr
esal
eK700hesol
dK500att
heendofhert
radi
ngper
iod.What
washercl
osi
ngst
ock?

SOLUTI
ON:

Openi
ngSt
ock=St
ockatt
hebegi
nni
ng-
-Sal
es

K700-K500

Ther
efor
ecl
osi
ngst
ock =K200

St
ock

 I
tist
hegoodsav
ail
abl
eforsal
einbusi
ness

Pur
chases

 Thesear
egoodsboughtbyt
hebusi
nessf
orr
esal
e.

NetPur
chases

 Thi
sist
he di
ff
erence bet
ween pur
chases and Pur
chases Ret
urns/
Ret
urns
out
war
ds
 Gi
vent
hataf
ir
m hadK100pur
chasesandK5Pur
chasesr
etur
nswhati
stheNet
Pur
chases?

SOLUTI
ON:

NetPur
chases=Pur
chases–Pur
chasesRet
urns/
Ret
urnsout
war
ds

K100 -K5

Ther
efor
eNetSal
es=K95

Costofsal
es

 i
tist
heact
ual
costofgoodssol
d

 i
tist
hecostofput
ti
nggoodsi
ntosal
eabl
econdi
ti
on

 i
tismadeupofpur
chasesandot
herdi
rectexpensessuchascar
ri
agei
nwar
ds

Abusi
nesshadopeni
ngSt
ockofk100,netpur
chasesofK400andi
tscl
osi
ngst
ockwas
k210.

Cal
cul
atet
hebusi
ness’
costofsal
es.

Costofsal
es=openi
ngst
ock+NetPur
chases–cl
osi
ngst
ock

(K100 + K400) - K210

Ther
efor
e,CostofSal
es=K290

Car
ri
ages

 Thesear
ecost
soft
ranspor
ti
nggoodsf
rom onepl
acet
oanot
herwhi
char
e
 di
vi
dedi
ntocar
ri
agei
nwar
dsandcar
ri
ageout
war
ds.

Car
ri
age i
nwar
ds i
tist
he di
rectcostofbr
ingi
ng goods i
ntot
he busi
ness
pr
emi
sesf
rom t
hesuppl
i
er.Thi
scosti
ncr
easest
hecostofbuy
inggoods.

Car
ri
ageout
war
ds:i
sthecostoft
ranspor
ti
nggoodst
ocust
omer
swhi
chi
snota
di
rectcostont
hecostofsal
es

Gr
ossPr
ofi
t

I
tist
heexcessofsal
esov
ercostofsal
es.

 I
tist
hePr
ofi
tbef
orei
ndi
rectexpensesar
ededuct
ed.

Mwat
emwat
rader
shadsal
esofK50andt
hecostofsal
eswer
eK30

Cal
cul
ateMwat
emwa’
sGr
ossPr
ofi
t

Gr
ossPr
ofi
t- = Sal
es-costofsal
es

K50- K30

Ther
efor
e,Gr
ossPr
ofi
t=K20

NOTE:

I
fther
ear
enoot
herdi
rectcost
sandnoopeni
ngsock

Gr
ossPr
ofi
t=sal
es–pur
chases

Gr
ossl
oss

I
nthebusi
nessaGr
ossLossi
smadewhencostofsal
esar
emor
ethant
heact
ual
sal
es.

Mwat
emwat
rader
shadsal
esofK30andt
hecostofsal
eswer
eK50
 Hasmwat
emwaTr
ader
smadeapr
ofi
toral
oss?

Gr
ossPr
ofi
t-
=Sal
es-costofsal
es

K30- K50

Ther
efor
e,t
hiswasnotaGr
osspr
ofi
tbutaGr
ossLossof=K20

PREPARI
NGATRADI
NGACCOUNT

Act
ivi
ty

Thef
oll
owi
ngbal
ancesr
elat
etot
hebooksofG.Gi
bsonasat31December
,2015

St
ockasat1Januar
y,2015 4,
000

Pur
chases 15,
000

Sal
es 27,
000

Car
ri
agei
nwar
ds 3,
000

Ret
urnsi
nwar
ds 2,
000

Ret
urnsout
war
ds 1,
000

St
ock31December
,2015 2,
500

Youar
erequi
redt
opr
epar
eG.Gi
bson’
str
adi
ngAccountf
ort
hey
earendi
ng31December
,
2015.

SOLUTI
ON

G.GI
BSON’
S
TRADI
NGACCOUNTFORTHEYEARENDI
NG31DECEMBER,
2015
 K K K

Sal
es 27,
000
NOTE: we had a
LessRet
urnsi
nwar
ds 2,
000
Gr
oss pr
ofi
t
Tur
nov
er 25,
000 because t
he
Tur
nov
er exceeds
LessCostofSal
es
t
he CostofSal
es.
Openi
ngSt
ock 4,
000
Act
ivi
ty
AddPur
chases 15,
000
The f
oll
owi
ng
Addcar
ri
agei
nwar
ds 3,
000 bal
ances r
elat
e t
o
Kabuba Tr
ader
s as
18,
000
at 31Mar
ch,
2017
Lessr
etur
nsout
war
ds 1,
000
K
NetPur
chases 17,
000
Sal
es
Tot
alst
ockav
ail
abl
e 21,
000 12,
000

Lesscl
osi
ngst
ock 2,
500 Pur
chases
11,
000
COSTOFSALES 18,
500
St
ock 1 Apr
il2016
Gr
ossPr
ofi
t 6,
500
4,
200

Ret
urns out
war
ds
1,
300

Car
ri
agei
nwar
ds 3,
500

St
ock31Mar
ch,
2017 1,
750

Youar
erequi
redt
opr
epar
eKabubaTr
ader
s’Tr
adi
ngAccountf
ort
hey
earendi
ng31Mar
ch,
2017

SOLUTI
ON

KABUBATRADERS’
 TRADI
NGACCOUNTFORTHEYEARENDI
NG31MARCH,
2017

K K K

Sal
es 12,
000

LessCostofSal
es

Openi
ngSt
ock 4,
200

AddPur
chases 11,
000

Addcar
ri
agei
nwar
ds 3,
500

14,
500

Lessr
etur
nsout
war
ds 1,
300

NetPur
chases 13,
200

Tot
alst
ockav
ail
abl
e 17,
400

Lesscl
osi
ngst
ock 1,
750

COSTOFSALES 19,
150 NOTE: We had a
Gr
ossl
ossbecauset
he
Gr
ossLoss (
7,100) Costofsal
es exceeds
t
heTur
nov
er(
Sal
es

THE PROFI
T/LOSS
ACCOUNT

Thi
sisaf
inanci
alst
atementwher
ethef
inal
Prof
itorLossoft
hebusi
nessi
scal
cul
atedwhi
ch
i
scal
l
ed

t
heNetPr
ofi
torNetLoss.

Tocal
cul
atet
heNetPr
ofi
t/
Lossgai
nsoft
hebusi
nessi
saddedt
otheGr
osspr
ofi
t/
losst
he
i
ndi
rect

Expensesoft
hebusi
nessi
sdeduct
edf
rom t
heTot
alI
ncomeoft
hebusi
ness.

QUESTI
ON1
Fr
om t
hef
oll
owi
ngbal
ancesf
ort
hey
earended30June,2010.Pr
epar
e Pr
ofi
t/
loss
accountf
ort
hey
earended30June,
2010.

Gr
osspr
ofi
t 3000

Sal
ari
es&wages 800

Di
scountr
ecei
ved 50

I
nsur
ance 200

Car
ri
ageout
war
ds 50

Rentr
ecei
ved 100

El
ect
ri
ci
ty 90

Rat
es 10

PROFI
T/LOSSACCOUNTFORTHEYEARENDI
NG30JUNE2010
K K K

Gr
osspr
ofi
t 3,
000

Addgai
ns

Di
scountr
ecei
ved 50

Rentr
ecei
ved 100

150

TOTALI
NCOME 3,
150

LESSEXPENSES

Sal
ari
es&wages 800

I
nsur
ances 200

Car
ri
agesout
war
ds 50

El
ect
ri
cit
y 90

Rat
es 10
 TOTALEXPENSES 1,
150

NETPROFI
T 2,
000

NOTE:
wehadaNetPr
ofi
tbecauseTot
ali
ncomeexceedsTot
alExpenses.

Act
ivi
ty

Chi
bandahadt
hef
oll
owi
ngbal
ancesasat31December
,2016

I
nsur
ance 1,
200

Di
scountRecei
ved 180

Di
scountAl
l
owed 360

Rentr
ecei
ved 3,
600

Rat
es 1,
150

Sal
ari
es 3,
750

Repai
rst
obui
l
ding 895

Mot
orexpenses 635

Car
ri
ageout
war
ds 275

Post
ageexpenses 190
St
ati
oner
ycost
s 457

Li
ght
ingandheat
ing 849

Wages 2,
069

Baddebt
s 155

Adv
ert
isi
ng 390

Gr
osspr
ofi
t 5,
528

SOLUTI
ON

CHI
BANDA’
S
PROFI
T/LOSSACCOUNTFORTHEYEARENDI
NG31DECEMBER,
2016
K K K

Gr
osspr
ofi
t 5,
528

AddGai
ns

Di
scountr
ecei
ved 180

Rentr
ecei
ved 3,
600

TOTALI
NCOME 3,
780

Lessexpenses

I
nsur
ance 1,
200

Di
scountal
l
owed 360

Rat
es 1,
150

Sal
ari
es 3,
750

Repai
rst
obui
l
ding 895

Mot
orexpenses 635
 Car
ri
ageout
war
ds 275

Post
ageexpenses 190

St
ati
oner
ycost
s 457

Li
ght
ing and 849
heat
ing
2,
069
Wages
155
Baddebt
s
390
Adv
ert
isi
ng
12,
375
TOTALEXPENSES
(
3,067)
NETLOSS

NOTE:
WehadaNetLossbecauseexpensesexceedst
heTot
alI
ncome

TheTr
adi
ngAccountandt
hePr
ofi
tandLossAccount

TheTr adi
ngandPr of
itandLossAccountbei
ngi
ncomestatement
sar
eoneaccountt
he
prof
itandloss accountcomesatt
heendofthet
radi
ngaccount
.
TheGr
ossPr
ofi
t/
Lossi
scal
cul
atedi
ntheTr
adi
ngAccountf
ir
stt
hent
heNetPr
ofi
t/
Lossi
n
t
he
Pr
ofi
t/
lossAccount
.

PREPARI
NGTHETRADI
NGANDPROFI
TANDLOSSACCOUNT

Act
ivi
ty

Thef
oll
owi
ngbal
anceswer
etakenf
rom t
hebooksof LubembaTr
ader
son31December
2012.
 K
Car
ri
agesout
war
ds 124
I
nsur
ance 144
Car
ri
agesi
nwar
ds 113
Ret
urnsi
nwar
ds 68
Sal
es 12,
060
Tr
adi
ngst
ock(
1Januar
y2012) 285
Tr
adi
ngst
ockasat(
31December2012) 321
Pur
chases 8140
Di
scountr
ecei
ved 25
Di
scountal
l
owed 32
Ret
urnsout
war
ds 123
Mot
orsv
ehi
cleexpenses 254
Adv
ert
isi
ngexpenses 124
Rat
es 240
Wages&sal
ari
es 968
Cust
omsdut
y 218
Commi
ssi
onr
ecei
ved 342
Li
ght
ingandheat
ing 216
Gener
alexpenses 345

Requi
red:

Pr
epar
eLubembaTr
ader
s’Tr
adi
ng,Pr
ofi
tandLossaccountf
ort
hey
earended31December
2012.

SOLUTI
ON:

KANSHAMBATRADERS’
TRADI
NG,
PROFI
TANDLOSSACCOUNTFORTHEYEARENDED31DECEMBER2012.
 K K K

Sal
es 12,
060

Lesssal
esr
etur
ns 68

TURNOVER 11,
992

LESSCOSTOFSALES

Openi
ngst
ock 285

Addpur
chases 8,
140

Addcar
ri
agesi
nwar
ds 113

Addcust
omsdut
y 218

8,
471

Lessr
etur
nsout
war
ds 123

NETPURCHASES 8,
348

TOTALSTOCKAVAI
LABLE 8,
633

LESSCLOSI
NGSTOCK 321

COSTOFSALES 8,
312

GROSSPROFI
T 3,
680

Addgai
ns:

Di
scountr
ecei
ved 25

Commi
ssi
onr
ecei
ved 342

367

TOTALI
NCOME 4,
047

LESSEXPENSES:

Car
ri
agesout
war
ds 124

I
nsur
ance 144

Di
scountal
l
owed 32
 Mot
orv
ehi
cleexpenses 254

Adv
ert
isi
ngexpenses 124

Rat
es 240

Wages&sal
ari
es 968

Li
ght&heat
ing 218

Gener
alexpenses 345

TOTALEXPENSES 2,
447

NETPROFI
T 1,
600

TheBal
anceSheet

Thi
sisaf
inanci
alst
atementwhi
chshowst
hef
inanci
alposi
ti
onoft
hebusi
nessatagi
ven
dat
e.

I
tisal
i
stofAsset
s,l
i
abi
l
iti
esandcapi
tal
.

Asset
sar
etot
alr
esour
cest
hatar
eint
hebusi
ness

Asset
scanbedi
vi
dedi
ntot
wo:
 i
. Fi
xedAsset
s-al
soknownasNoncur
rentAsset
se.
g.mot
orv
ehi
cle,
bui
l
dings,
premi
ses,
machi
ner
y,f
ixt
uresandFi
tt
ings,
Landet
c.

i
i
. Cur
rentasset
s:t
hesear
easset
swhi
char
enotper
manenti
nnat
ure.Theyeasi
l
ychange
f
orm,
hencet
heyar
erev
olv
ingi
nnat
uree.
g.cashatbank,
cashi
nhand,
Debt
ors,
stock

Li
abi
l
iti
esar
eresour
cest
hatar
esuppl
i
edt
othebusi
nessbypeopl
eandi
nst
it
uti
onsout
side
t
hebusi
ness,

t
heyar
ebor
rowedr
esour
ces.

Li
abi
l
iti
esar
edi
vi
dedi
ntot
wo:

i
. Cur
rentl
i
abi
l
iti
esal
soknownasshor
tter
mli
abi
l
iti
es:
thesear
eli
abi
l
iti
eswhi
char
epai
d
backwi
thi
nonef
inanci
aly
earwhi
chi
saper
iodoft
wel
vemont
hse.
g.Cr
edi
tor
sand
bankov
erdr
aft
.

i
i
. Long-t
erml
i
abi
l
iti
es:t
hesear
eli
abi
l
iti
est
hatar
epai
dbackov
eraper
iodmor
ethan
onef
inanci
aly
eare.
g.l
ongt
erml
oans,
mor
tgagesact
.

PREPARATI
ONOFTHEBALANCESHEET

QUESTI
ON1

Mr
.Wachi
ngawasi
nbusi
nessasasol
etr
aderandt
hef
oll
owi
ngwer
eext
ract
edf
rom hi
sbook
on

30June,
2014.
.

Pr
emi
ses……………………………………………………………….
..
400

Cr
edi
tor
s..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
200

Loan……………………………………………………………………250

Capi
tal
……………………………………………………………………2000

Cash………………………………………………………………….
..
…500

Debt
ors……………………………………………………………………200
 Mot
orv
an…………………………………………………………………500

Fi
xtur
esandf
it
ti
ngs………………………………………………………300

St
ock……………………………………………………………………300

Netpr
ofi
t…………………………………………………………………600

Land&bui
l
ding……………………………………………………………600

Dr
awi
ngs…………………………………………………………………2850

Bankov
erdr
aft
……………………………………………………………50

Youar
erequi
redt
opr
epar
eMr
.Wachi
nga’
sBal
ancesheetasat30June,
2014.

SOLUTI
ON

MRWACHI
NGA’
SBALANCESHEETASAT30JUNE,
2014
K K K

FI
XEDASSETS COST DEP NBV

l
and&bui
l
ding 600 - 600

Pr
emi
ses 400 - 400

Fi
xtur
es&f
it
ti
ngs 300 - 300

Mot
orv
an 500 - 500

1,
800 - 1,
800

CURRENTASSETS

St
ock 300

Debt
ors 200

Cash 500

1,
000
 LESSCURRENTLI
ABI
LITI
ES

Cr
edi
tor
s 200

Bankov
erdr
aft 50

250

WORKI
NGCAPI
TAL 750

NETASSETS 2,
550

FI
NANCEDBY:

Capi
tal 2400

AddNetPr
ofi
t 600

CAPI
TALOWNED 3,
000

LESSDRAWI
NGS 2,
850

CAPI
TALEMPLOYED 150

Addl
ongTer
m Li
abi
l
iti
es

Loan 2,
400

OWNERSEQUI
TY 2,
550

NOTE:

Cost-r
epr
esent
sthepr
iceatwhi
cht
heFi
xedAssetwasbought

DEP-r
epr
esent
sthewor
ddepr
eci
ati
onwhi
chmeanst
hel
ossi
nval
ueofaFi
xedAsset
.

NBV-st
andsf
orNetBookVal
uewhi
chi
sthev
alueofanAssetaf
terdepr
eci
ati
on.

Wor
kingCapi
talorCi
rcul
ati
ngCapi
tali
sther
esour
cesabusi
nesshasatagi
vent
imet
omeet
t
he

r
unni
ngexpensesoft
hebusi
ness.

9.
2 WAGESANDSALARI
ES

Af
terst
udy
ingt
hischapt
er,
youshoul
dbeabl
eto:

 Expl
ainsal
ari
esandwages

 Pr
epar
eti
mecar
ds

 Pr
epar
ewagesheet
s

 Pr
epar
epaysl
i
ps

 Cal
cul
ateGr
ossandnetpay
s

NEW WORDS

Wages:ar
egul
ar,f
ixedpay
mentusual
l
ypai
dperhour
,perdayorperweek.I
tisear
nedby
peopl
ewho

dounski
l
ledl
abour

 Sal
ary
:Pay
ment
sear
nedmont
hlybypeopl
ewhodoski
l
ledl
abour
.

 Gr
ossSal
ary
:sal
arybef
oreanycost
ssuchast
axesandl
oansar
etakenaway

 NetSal
ary
:sal
aryf
rom whi
chnot
hingmor
eneedst
oorcanbet
akenaway
.“t
akehomepay
”
 Pi
ecewor
k:whenawor
keri
spai
dperact
ionper
for
med.

 Pi
ecer
ate:
Pay
ment
speract
ionori
tem per
for
med.

 Nor
mal
time:
thenumberofhour
sawor
keri
scont
ract
edt
owor
kperday
.

 Ov
ert
ime:
hour
swor
kedi
naddi
ti
ont
onor
mal
time

 Empl
oyee:
aper
sonwhowor
ksf
orsomebodyoranor
gani
zat
ion

 Cont
ractofempl
oyment
:al
egal
agr
eementbet
weenanempl
oyeeandanempl
oyer
.

 Sal
aryscal
e:Ther
ateofpayf
orempl
oyeesdependi
ngont
hel
evel
atwhi
cht
heywor
kinan
or
gani
zat
ion.

 Emol
ument
s:f
inanci
albenef
it
sanempl
oyeer
ecei
ves.

 St
atut
orydeduct
ion:
amount
ssubt
ract
edf
rom gr
osssal
aryt
hatar
ecompul
sor
ybyl
aw.

 Vol
unt
arydeduct
ions:amount
s subt
ract
ed f
rom gr
oss sal
arybased on agr
eement
s
bet
weent
heempl
oyerandempl
oyee.

ACTI
VITY

(
1)MrWakumel
owor
ksf
orLongwel
i
mit
ed.Hei
sent
it
ledt
oani
ncomeof
:sal
aryK450,
Housi
ngal
l
owanceK45,Educat
ional
l
owanceK25,Deduct
ions:Uni
onf
eesK30,PAYE
K20,
Cal
cul
ate:

a.
Thegr
osspay

b.
Thenetpay

(
2)Thef
oll
owi
ngar
erat
esofpaywhi
char
eusedi
ncal
cul
ati
ngpay
.Sel
ectt
hecor
rect
answerf
rom t
hewor
dli
st
(
i) Theal
l
owancegi
venf
oanagentwhodoeswor
kforsomeone

(
ii
) Thepaygi
vent
oanempl
oyeeperweek,
permont
horpery
ear
.

(
ii
i) Whenext
raout
puti
sshar
edbet
weent
heempl
oyerandt
heempl
oyee

(
iv) Anempl
oyeei
spai
daf
ixedsum ofmoneypereachhourt
hati
swor
ked

Wor
dli
st:

Ti
mecar
d,f
latr
ate,
wagesheet
,ti
mer
ate,
paysl
i
p,bonusr
ate,
stat
utor
ydeduct
ions,
commi
ssi
onr
ate,
sal
ary
.

(
3)Gol
i
athshousi
ngal
l
owancei
s10% andhi
smont
hlysal
aryi
sK7500.Heal
soget
s
medi
cal
all
owanceof5%ofhi
smont
hlysal
ary
.Cal
cul
ate

(
i) Hi
shousi
ngal
l
owance

(
ii
) Hi
smedi
cal
all
owance

(
ii
i) Hi
sannual
grosssal
ary

(
4)Cl
assi
fyt
hef
oll
owi
ngi
ntov
olunt
aryorst
atut
orydeduct
ions

(
i) Loanr
epay
ment
s

(
ii
) Pensi
oncont
ri
but
ions

(
ii
i) PAYE

(
iv) Cl
ubsubscr
ipt
ions

(
5)Jamesi
sanempl
oyeewhowor
ksatKi
ngst
rader
sandr
ecei
vesaweekl
ywage.Al
l
empl
oyeeshav
etowor
k40hour
sperweek.

Fr
om t
hei
nfor
mat
ionsuppl
i
ed,
prepar
eat
imecar
dfort ng20thJune2016.
heweekendi

Day Ti
mei
n Ti
me
out

Monday 08:
00 17:
00
 Tuesday 07:
00 17:
00

Wednesd 08:
00 18:
00
ay

Thur
sday 08:
00 16:
00

Fr
iday 07:
00 16:
00

9.
3 BANKI
NG

Banki
ng i
sthe saf
e keepi
ng ofv
aluabl
es whi
ch i
ncl
udes money,Jewr
y,i
mpor
tant
document
set
c.

A banki
saf
inanci
ali
nst
it
uti
ont
hataccept
sdeposi
tsandchannel
sthosedeposi
tsi
nto
l
endi
ng

act
ivi
ti
es,
eit
herdi
rect
lybyl
oani
ngori
ndi
rect
lyt
hroughcapi
tal
mar
ket
s.

(
1)I
dent
if
ydi
ff
erentt
ypesoff
inanci
ali
nst
it
uti
ons

 Commer
cial
Banks

These ar
efi
nanci
ali
nst
it
uti
ons pr
ovi
ding ser
vices f
orbusi
ness or
gani
zat
ions and
i
ndi
vi
dual
s.Ser
vicesi
ncl
udecur
rentdeposi
tsandsav
ingaccount
saswel
lasgi
vi
ngout
l
oanst
obusi
nesses.Exampl
esofcommer
cial
banksar
e:

- Bar
clay
sbank

- Ci
tybank

- EcobankZambi
a

- Fi
nancebankZambi
ali
mit
ed

- Zambi
anat
ional
commer
cial
bank

- Cav
montcapi
tal
bank

 Bui
l
dingsoci
ety

Bui
l
dingsoci
eti
esar
efi
nanci
ali
nst
it
uti
onst
hatr
ecei
vemoneydeposi
tsf
rom t
hepubl
i
cin
or
dert
ocar
ryoutt
hei
rmai
nact
ivi
tyofext
endi
ngl
oanst
opeopl
ewhowantt
oinv
esti
nreal
est
ate.

Bui
l
dingsoci
eti
esi
nZambi
aincl
ude:

- f
inancebui
l
dingsoci
ety
- PanAf
ri
canbui
l
dingsoci
ety
- Meanwoodbui
l
dingsoci
ety
- Zambi
anat
ional
bui
l
dingsoci
ety

 Cr
edi
tuni
onandsav
ingsassoci
ati
on

Cr
edi
tuni
onandsav
ingsassoci
ati
onsar
efi
nanci
ali
nst
it
uti
onswhi
char
eownedand
cont
rol
l
edbypeopl
ewhouset
hei
rser
vicesandhav
eacommongoal
.Theyencour
age
t
hei
rmember
stosav
eandi
nvesti
npr
ofi
tabl
event
ures.Theyar
eai
medati
mpr
ovi
ngt
he
st
andar
dsofl
i
vingf
ort
hei
rmember
s.

 Nat
ional
sav
ingsandcr
edi
tbank(
NATSAVE)

Nat
ionalsav
ingsandcr
edi
tbanki
sagov
ernmentownedf
inanci
ali
ntui
ti
ont
hatwas
est
abl
i
shedi
n1972byanactofpar
li
ament
.It
spur
posei
sto:

-pr
omot
enat
ional
sav
ings

-of
ferl
oans

-of
fermi
crol
oansandsal
aryl
oans

-of
fermoneyt
ransf
ers

-acceptdeposi
ts

-i
ssuesav
ingscer
ti
fi
cat
eswhi
char
epai
dwi
thi
nter
est

 Mi
crof
inancecompani
es

Mi
crof
inancecompani
esspeci
ali
zei
npr
ovi
dingbanki
ngser
vicest
olow i
ncomegr
oups
andi
ndi
vi
dual
s.Theymai
nlypr
ovi
debanki
ngser
vicesandl
oanst
opoorpeopl
ewhol
ack
accesst
obanki
ngandr
elat
edser
vicesi
ncommer
cialbanks.Exampl
esofmi
crof
inances
ar
e:
 - Mi
croBanker
sTr
ust
- Uni
tyFi
nanceLt
d
- I
zweLoansZambi
aLt
d
- Mi
croCr
edi
tFoundat
ionLt
d
- Bl
uecashexpr
essl
td
- ZampostMi
croFi
nanceLt
d

 Bur
eaDeChange
Abur
eaudechangei
saf
inanci
ali
nst
it
uti
ont
hatdeal
sinexchangeofonecur
rencyf
or
anot
her
.For

exampl
eusdol
l
arf
orZambi
ankwachauppoundet
c.

Exampl
esofbur
eaudechangear
e:

- Bi
l
li
onbur
eaudechange

- Beckybur
eaudechange

- CFBBur
eauchange

- Bar
clay
sbankbur
eaudechangeet
c

(
2)I
dent
if
yser
vicesof
fer
edbyf
inanci
ali
nst
it
uti
onsandexpl
aint
hei
rser
vices

 Banki
ngser
vices

Fi
nanci
ali
nst
it
uti
onsacceptpeopl
e’
sdeposi
tsandkeept
hem saf
e.

 Loanf
aci
l
iti
es

Al
oani
stheamountofmoneyani
nst
it
uti
onl
endst
othepubl
i
cespeci
all
yaccounthol
der
s
dev
elopmentpur
pose.

 I
ssuanceoff
orei
gnexchange

Fi
nanci
ali
nst
it
uti
onsbuyandsel
lfor
eigncur
renci
est
othepubl
i
ceggBur
eaudechange
i
nst
it
uti
onsav
ail
for
eigncur
renci
est
rav
eler
s,busi
nessmenandf
orei
gner
sinZambi
a.
  Bankt
ransf
ers

Fi
nanci
ali
nst
it
uti
onshel
pthepubl
i
ctot
ransf
ermoneyf
rom t
hebankt
oanot
hert
hrough
i
ssui
ngofbankdr
aft
s.

 Cr
edi
ttr
ansf
ers

Fi
nanci
ali
nst
it
uti
onshel
pthei
rcust
omer
swhowi
sht
oset
tl
eanumber
sofcr
edi
tor
sonl
y
onecheque.Acust
omeri
nneedoft
hisf
aci
l
ityi
srequi
redt
opr
epar
eacr
edi
tsl
i
pshowi
ng
namesofpeopl
ehe/
shewi
shest
opayandt
heamountt
obepai
dtoeach.

 St
andi
ngor
der
s

Ast
andi
ngor
deri
sawr
it
teni
nst
ruct
ionbyt
heaccounthol
dert
othebanki
nst
ruct
ingi
tto
payaspeci
fi
edamountofmoneyt
othespeci
fi
edper
sonf
orast
atedper
iodoft
ime.

 Aut
omat
edTel
l
erMachi
nef
aci
l
ity
(ATM)

Fi
nanci
ali
nst
it
uti
onsl
i
kecommer
cialbanksi
nst
allATMsi
ndi
ff
erentpar
tsoft
hecount
ryand
i
ssueout

ATM car
dst
othei
rcust
omer
stoeaset
hei
rwi
thdr
awi
ngdeposi
ti
ngofmoney
.

 Di
rectDebi
torDi
rectwi
thdr
awal

Adi
rectdebi
tisaf
inanci
alt
ransact
ioni
nwhi
choneper
sonwi
thdr
awsf
undsf
rom anot
her
per
son’
sbankaccount
.For
mel
ytheper
sonwhodi
rect
lydr
awst
hef
unds(
pay
ee)i
nst
ruct
s
hi
s/herbankt
ocol
l
ect(
i.
e.debi
t)anamountdi
rect
lyf
rom anot
her
’s(
pay
er)bankaccount
desi
gnat
edbyt
hepay
erandpayt
hosef
undsi
ntoabankaccountdesi
gnat
edbyt
hepay
ee.
  Poi
ntofsal
e(POS)Checkout

Thi
sisapl
acewher
ear
etai
ltr
ansact
ioni
scompl
eted.I
tisapoi
ntatwhi
chacust
omer
makesapay
mentt
othemer
chanti
nexchangef
orgoods

 Chequef
aci
l
ity.
Achequei
sadocumentt
hator
der
spay
mentofmoneyf
rom abank
account
.Theper
sonwr
it
ingt
hecheque,t
hedr
awerhasat
ransact
ionbanki
ng
accountwher
ehi
s/hermoneyi
shel
d.

(
3)I
dent
if
yty
pesofaccount
sof
fer
edbyf
inanci
ali
nst
it
uti
ons.

Abankaccounti
saf
inanci
alaccountbet
weenabankcust
omerandaf
inanci
ali
nst
it
uti
on.

 Sav
ingsaccount

Thi
sisat
ypeofanaccountnor
mal
l
yof
fer
edt
olowi
ncomeear
ner
sorsmal
lsav
erswhodo
notwi
thdr
aw f
requent
ly.
Thi
saccountal
l
ow ani
ndi
vi
dualt
oaccumul
atei
nter
estont
he
amountsav
ed.

 Cur
rentaccount

Thi
sisanaccountwi
thabankorbui
l
dingsoci
etyf
rom whi
chmoneymaybedr
awnon
demand.Thecur
rentaccounti
snor
mal
l
yof
fer
edt
obusi
nesspeopl
eandi
nst
it
uti
ons.

 Deposi
taccount

I
tisanaccountopenedwher
ebymoneyst
aysi
nthebankf
oragi
venspeci
fi
cper
iodof
t
ime(
usual
l
ysi
xmont
hs)
.Bef
oret
heper
iodel
apsesonecannotwi
thdr
aw moneyf
rom
bank.I
tear
nsav
eryhi
ghr
ateofi
nter
est
.

 Sav
easy
ouear
naccount

Thi
sist
het
ypeofanaccountwher
eani
ndi
vi
dualoragr
oupofpeopl
eremi
taspeci
fi
ed
amountofmoneymont
hlyf
oraspeci
fi
edper
iodoft
ime(
say3t
o5y
ear
s)i
nfor
m ofsav
ing
t
hroughacher
ubof
fagr
eementorbycasht
oot
herr
espect
ivef
inanci
ali
nst
it
uti
ons.

 I
nvest
mentaccountAni
nvest
mentaccountr
efer
stoat
ypeoff
inanci
alaccount
t
hatcont
ainsadeposi
toff
undsand/
orsecur
it
iest
hati
shel
dataf
inanci
al
i
nst
it
uti
on.

(
4)I
dent
if
yty
pesofdocument
susedi
nbanki
nganddr
awt
hem

 Bankst
atement

Abankst
atementi
sasummar
yoff
inanci
alt
ransact
ionswhi
chhav
eoccur
redov
eragi
ven
per
iodoft
imeonagi
venbankaccounthel
d byani
ndi
vi
dualorbusi
nesswi
thaf
inanci
al
i
nst
it
uti
on.
Pay
-i
n-sl
i
pisaf
orm av
ail
abl
einbanksandi
susedt
odeposi
tmoney
i
ntoabankaccount
.Eachpay
-i
n-sl
i
phasacount
erf
oil
whi
chi
sret
urnedt
othe
deposi
tordul
yseal
edandsi
gnedbyt
hebankof
fi
cial
.Thi
ssour
cedocument
r
elat
est
obankt
ransact
ions.I
tgi
vesdet
ail
sregar
dingdat
e,accountnumber
,
amountdeposi
ted(
incashorcheque)andnameoft
heaccounthol
der
 .

Deposi
tsl
i
p

A deposi
tsl
i
pisapr
e-pr
int
eddocumentmadeav
ail
abl
etot
heaccounthol
derbyt
he
f
inanci
ali
nst
it
uti
ont
oenabl
ehi
m putmoneyont
ohi
s/heraccount
.Deposi
tsl
i
pcanbe
usedf
orbot
hcashandcher
ubdeposi
t.
Wi
thdr
awsl
i
p

Awi
thdr
awsl
i
pisusedwheny
ouneedt
otakemoneyoutofy
oursav
ingsaccountwi
thout
usi
ngacher
ubory
ourdebi
tcar
d.

ACTI
VITY

Dr
awawi
thdr
awal
sli
pandf
il
li
nthei
nfor
mat
iongi
venbel
ow.

NameofAccounthol
der - MrGondweSy
dney

Amountt
obewi
thdr
awn - K500

Uset
hecur
rentdat
e

Accountnumber - 02004102.
Sol
uti
on

WI
THDRAWALSLI
P

BRANCH:
LusakaBr
anch Dat
e:Cur
rentdat
e[1/
4]

Debi
tAccountName:
GondweSy
dney[
1/4]

Accountnumber:
02004102[
1/4]

Amountofwi
thdr
awal
(inwor
ds)Fi
vehundr
ed

Kwachaonl
y[1]

K500=[
1/4]

GS

Aut
hor
izedsi
gnat
ure
  Cheque

Achequei
sadocumentt
hator
der
sapay
mentofmoneyf
rom abankaccount
.Theper
son
wr
it
ingt
hecheque,
thedr
awer
,hasat
ransact
ionbanki
ngaccountwher
ehe/
hermoneyar
e
hel
d.

Achequehast
hreepar
ti
es,
thati
s

 Dr
awer

Aper
sonwhowr
it
esoutacheque.Hei
stheowneroft
heaccount
.

 Pay
ee

I
tisaper
sonwhor
ecei
vesacheque.Apay
eei
stheonet
owhom pay
menti
smade.

 Dr
awee

Thi
sist
hebankwhi
chpay
soutt
hechequef
orexampl
eZanaco
ATM car
dsar
eapl
ast
iccar
dissuedbyt
hebankt
othecl
i
entwhohasadeposi
taccount
andwhi
cht
hecl
i
entcanuset
owi
thdr
awanddeposi
tcashatanATM.
 9. PERSONALFI
NANCI
ALMANAGEMENT
4

Expl
ainper
sonal
financi
almanagement
 Per
sonalf
inanci
almanagementi
sthe f
inanci
almanagementt
hata f
ami
l
yoran
i
ndi
vi
duali
srequi
red t
o do i
n or
dert
o obt
ain abudget
,sav
emoney
,and spend
monet
aryr
esour
cesov
ert
imeconsi
der
ingv
ari
ousf
inanci
alr
isksandf
utur
eli
feev
ent
s.
St
atemet
hodsofi
nvest
ment
Ther
ear
edi
ff
erentmet
hodsofi
nvest
ment
,andt
hesear
easf
oll
ows;
i
. Ent
repr
eneur
shi
p
 Ent
repr
eneur
shi
pist
hecapaci
tyandwi
l
li
ngnesst
odev
elop,or
gani
zeandmanagea
busi
nessv
ent
ure.
i
i
. Runni
ngasmal
lbusi
ness
 Thi
sist
her
unni
ngupoft
hebusi
nessbyonemanorwi
tht
hehel
poft
hef
ami
l
y
member
s.
i
i
i. Far
ming
 Thi
sisabusi
nessofbei
ngi
nchar
geofaf
arm orwor
kingi
naf
arm.
 I
tinv
olv
esr
ear
ingani
mal
sandpl
ant
ingcr
ops.
i
v. Bonds
 Thi
siswher
ethei
nvest
orbuy
sabondwhi
chi
sadebtf
rom t
hecompanyorgener
al
publ
i
c.
 Thi
susual
l
yhappenwhent
hegov
ernmentorcompanywi
shest
ofi
nanceacapi
tal
pr
ojectandt
heydon’
thav
eenoughr
esour
ces.
 Acer
ti
fi
cat
eisi
ssuedwhenst
ockbondsar
eissuedwi
tht
heamountt
hathasbeen
i
nvest
ed.
v
. Buy
ingShar
es
 Thi
sinv
olv
espur
chasi
ngashar
e(ast
ock)i
nacompany
.
 Thi
siscont
ri
but
ingt
owar
dst
hecapi
taloft
hecompanyandbecomi
ngashar
ehol
derof
t
hatcompanysot
hatonet
akespar
tint
heshar
ingofdi
vi
dends.
Budget
ing
 Abudgeti
saf
inancepl
ant
hatal
l
ocat
esf
utur
eincomet
owar
dsexpenses,
sav
ingsand
 debtr
epay
ment
.
 I
tisapl
anonhowt
orai
seandspendmoney
.
Descr
ibet
ypesofbudget
ing
i
. I
ndi
vi
dual
(per
sonal
)Budget
 I
tisdr
awnbyani
ndi
vi
dual
tomeetcer
tai
ngoal
s.
 I
thel
pst
osav
emoneyf
orspeci
fi
cgoal
li
kesav
ingmoneyf
ort
rai
ning.
i
i
. HomeBudget
 I
tisal
l
ocat
ingacer
tai
namountofmoneyi
nthemont
hforbuy
ingi
tem neededt
obe
usedi
namont
hli
kef
ood,
clot
hinget
c.
 Thebudgetwi
l
lhel
ptocont
rol
expendi
tur
e.
i
i
i. Nat
ional
Budget
 Thi
sist
he gov
ernmentdocumentpr
esentgov
ernment
s pr
oposed i
ncome and
spendi
ngf
orf
iscal
year
.
Expl
aint
her
easonsf
orbudget
ing
Budgeti
spr
epar
edf
orv
ari
ousr
easonsandt
hesear
easf
oll
ows:
i
. Cont
rol
measur
ing
 Abudgeti
susedasameansofcont
rol
l
ingr
evenueandexpendi
tur
e.
i
i
. Gui
de
 I
tact
sasagui
dei
nthei
mpl
ement
ati
onofact
ivi
ti
es.
i
i
i. Tr
anspar
ency
 I
tpr
omot
est
ranspar
encyi
ntheuseofr
esour
ce.

Act
ivi
ty
1.Ment
iononeexampl
eofabudget
?
Answer
:Indi
vi
dual
2.Fr
om t
hel
i
stbel
owi
dent
if
ythr
eeway
soff
inanci
ngbusi
nesses
Wor
dli
st
Sav
ings,
bankl
oans,
sol
etr
ader
s,par
tner
shi
p,l
i
mit
edcompany
,leasi
ng.
Answer
:Sav
ings,
bankl
oan,
leasi
ng
3.Fr
om t
hel
i
stbel
owi
dent
if
y,onewaynotr
equi
redf
orensur
inggoodper
sonalf
inanci
al
management
?
Wor
dli
st
Answer
:Excessi
vebor
rowi
ng
 4. Buy
ingofshar
esi
nacompanyi
sgoodexampl
eof……………………
Answer
:inv
est
ment
5.Fr
om t
hef
oll
owi
ngi
nfor
mat
ion,pr
epar
ethebudgetf
orBwal
e,f
ort
hemont
hofJune
2015.

I
ncome Expenses

Sal
ary K3,
500.
00 Gr
ocer
iesandf
ood K4,
000.
00

Rentr
ecei
ved K2,
200.
00 Tr
anspor
t K300.
00

Answer
:MwewaPer
sonal
budgetf
ort
hemont
hofJune2015

I
ncome Expendi
tur
e

Sal
ary K3,
500.
00 Gr
ocer
iesandf
ood K4,
000.
00

Rentr
ecei
ved K2,
200.
00 Tr
anspor
t K300.
00

Tot
ali
ncome K5,
700.
00

Bal
anceb/
f

(
sur
plus) K1,
400.
00

6.Uset
hewor
dli
stbel
ow t
ofi
l
lint
hemi
ssi
ngphr
asei
nthef
oll
owi
ngst
atement
s:
Wor
dli
st
Shar
e,gui
de,
bonds,
cont
rol
measur
e,t
ranspar
ency
(
i) Abudgetact
sasa……………onwhatandwhent
ospendi
nanor
gani
zat
ion.
(
ii
) The budgetact
s as a …………….
.i
nli
mit
ing on unnecessar
y expendi
tur
ein an
or
gani
zat
ion.
(
ii
i) A budgetpr
omot
es…………….Toenhanceopennessandhonest
yint
hemanner
f
inancesi
nanf
inancesi
nanor
gani
zat
ionar
ebei
ngspent
Answer
:(i
)gui
de (
ii
)cont
rol
measur
e (
ii
i)t
ranspar
ency
7.St
udyt
hef
oll
owi
ngt
abl
eandanswert
hequest
ionbel
ow.
I
tem ZMW
 Const
ruct
ion 1,
200.
00

Sal
ari
est
owor
ker
s 9,
000.
00

Agr
icul
tur
alequi
pment 5,
200.
00

Pensi
onpay
ment 10,
900.
00

Gov
ernmentschol
arshi
ps 7,
500.
00

Educat
ionmat
eri
als 6,
750.
00

(
i) Whatt
ypeofbudgeti
sthi
s?
(
ii
) Cal
cul
atet
het
otalamountal
l
ocat
ed t
owar
dsi
nfr
ast
ruct
uredev
elopmentand
educat
ion.
Answer
:(i
)Nat
ional
Budget
(
ii
)12000+6,
750.
00=K18,
750.
00

9. FI
LING
5

Fi
l
li
ngi
sthepr
ocessofsaf
ekeepi
ngr
ecor
dsi
nanor
der
lymannerandabl
etor
etr
iev
e
t
hem when

r
equi
red.

Expl
aint
hei
mpor
tanceoff
il
ing/
reasonsf
orf
il
ing

 Forf
utur
eref
erence

 Forsecur
it
yreasons

 Easyaccessi
bil
i
tyofi
nfor
mat
ioncont
ainedi
npaper
sav
ail
abl
e

 Neat
nessandt
idi
ness

 Conf
ident
ial
i
ty
  Foreasyaccessi
bil
i
ty

 Fi
l
ingmakesi
teasyt
odi
sposeof
fusel
essdocument
s

 Tohav
eawr
it
tendocument

Essent
ial
sofagoodf
il
li
ngsy
stem

Agoodf
il
li
ngsy
stem mustbe:

 Si
mpl
etounder
standandoper
ate

 Economi
cal
toi
nst
all
andmai
ntai
n

 Expandabl
etomeetf
utur
eneeds

 Compactt
osav
espace

 Qui
ckt
ooper
ate

 Adapt
abl
etomeetchangi
ngneeds

 Secur
efr
om f
ir
e,t
hef
t,dampness,
heat
,et
c.

 Accessi
blet
othepeopl
ewhouset
her
ecor
ds

 Hav
eadocumentr
etent
ionper
iod;t
hisi
susual
l
yinf
luencedbyt
hecompanypol
i
cy,
st
oragespace av
ail
abl
eandl
egalr
equi
rement
s.Somebusi
nessdocument
sar
e
r
equi
redbyl
awt
obekeptf
oraspeci
fi
ednumberofy
ear
s.

1.I
dent
if
yfi
l
ingsy
stems

Ther
ear
etwof
il
ingsy
stems:

1.Cent
ral
i
zedf
il
ing

Acent r
ali
zedf
il
ingsy
stem i
sonei
nwhi
cht
her
ecor
dsf
orsev
eralpeopl
ear
est
oredi
n
onecent
ral
place.

Adv
ant
agesofacent
ral
i
zedf
il
ingsy
stem
  Uni
for
mit
yoff
il
ingi
sensur
ed

 At
rai
nedper
sonnel
canbeempl
oyed

 Super
visi
oni
seasi
erandef
fect
ive

 Accesst
ofi
l
escanbel
i
mit
edt
ofi
l
ingst
affsot
hatgr
eat
ercont
roloff
il
emov
ement
i
spossi
blef
rom di
ff
erentdepar
tment
s.

 Ther
eisgr
eat
ersav
ingofst
affandequi
pment

Di
sadv
ant
ages

 Del
aysi
nmaki
ngf
il
esav
ail
abl
e

 Lackofadequat
eknowl
edgeaboutot
herf
il
es

 Ot
herof
fi
cewor
ker
sdependont
heef
fi
ciencyoft
hef
il
ingst
afft
olocat
eandr
etr
iev
e
document
s.

2.Depar
tment
al(
decent
ral
i
zed)

Fi
l
ingi
swheneachdepar
tmentorsect
ionkeepst
hei
rfi
l
es.i
nthi
scasef
il
ingi
sdone
wi
thi
neach

depar
tmentandi
tisnotexposedt
opeopl
eout
sidet
hedepar
tment
.

Adv
ant
ages

 Fi
l
esar
ereadi
l
yav
ail
abl
e

 Codesf
orf
il
escanbeusedf
oreasyi
dent
if
icat
ionoff
il
ese.
g.-
forpur
chases,S-
for
sal
es,
A-f
orAudi
ti
ng.

 Thef
il
ingsy
stem i
snotl
arget
her
ebymaki
ngi
teasyt
ohandl
e.

 Ther
eisgr
eat
erconf
ident
ial
i
ty

 Depar
tment
alst
affwi
l
lhav
eabet
terknowl
edgeoft
hewor
koft
hedepar
tment
.
 Di
sadv
ant
ages

 Super
visi
onoft
hef
il
esi
nthedepar
tmenti
sdi
ff
icul
tyasf
il
esar
escat
ter
edi
nal
l
depar
tment
s

 I
tisexpensi
vet
oaccommodat
espaceandequi
pmenti
snoteconomi
cal
l
yusedas
eachdepar
tmentr
equi
resi
tsownequi
pmentandf
il
ingspace.

 Usual
l
yfi
l
esar
ehandl
edbynon-
qual
i
fiedst
aff
.

(
2)I
dent
if
ythemet
hodsoff
il
ingandst
atet
hei
radv
ant
agesanddi
sadv
ant
ages

 Al
phabet
ical
fil
i
ng

Fi
l
esar
ear
rangedi
nst
ri
ctal
phabet
icalor
derj
ustl
i
kewor
dsar
ear
rangedi
nthedi
cti
onar
y
ornamesi
nthet
elephonedi
rect
ory
.Thei
deai
stol
ocat
efi
l
eseasi
l
ywi
thi
nthef
il
ing
sy
stem.

Adv
ant
ages

 Themet
hodi
ssi
mpl
etounder
standsi
nceev
ery
oneknowst
heal
phabet

 I
tisadi
rectf
il
ingmet
hodhencenoneedf
orsepar
atei
ndex

 Easyandqui
ckaccesst
odocument
s

Di
sadv
ant
ages

 Thel
arget
hef
il
ingsy
stem t
hel
ongeri
ttakest
olocat
eapar
ti
cul
arf
il
e

 Di
ff
icul
tymaybeexper
iencedonl
ocat
ingf
il
eswi
thcommonnames

 Di
ff
icul
tyt
oaccessandl
ocat
espacer
equi
rementf
orf
utur
eexpansi
on

Rul
esf
oral
phabet
ical
fil
i
ng

I
ndexi
nguni
ts

 Wi
thi
mper
sonalnames,t
hef
ir
sti
ndex
inguni
tist
hef
ir
stwor
dthatdi
sti
ngui
shest
hat
body(
organi
zat
ion)f
rom ot
herbodi
es.
E.g.Muni
cipl
eCounci
lofChi
pat
a.
 Muni
cipal
-t
her
ear
emanymuni
cipal
s

Counci
lof
-t
her
ear
emanyt
ypesofcounci
l

Chi
pat
a-atl
easti
nrel
ati
ont
oMuni
cipal
s,Chi
pat
aisadi
sti
ngui
shi
ngf
eat
ure

Ther
efor
efi
l
eindexwi
l
lbeasf
oll
ow:

Chi
pat
a,Muni
ci
palcounci
lof

I
ndexi
ngper
sonal
names

 Wi
thper
sonalnames,t
hesur
namecomesf
ir
st.Nat
ashaChi
buy
ebecomesChi
buy
e
Nat
ashaandWi
l
li
am BandabecomesBandaWi
l
li
am si
nceBcomesbef
oreTher
efor
e
t
hear
rangementwoul
dbeasf
oll
ows:

BandaWi
l
li
am

Chi
buy
eNat
asha

Hy
phenat
edNames

Wher
eanamei
shy
phenat
edi
tisusualt
otr
eatt
het
wowor
dswhi
char
ejoi
nedasone
uni
tEg

Edwar
dJohn-
Lang,
Chr
ist
ineBon-
Voy
age

Bon-
Voy
age,
Chr
ist
ine

John–l
angEdwar
d

 Numer
ical
fil
i
ng
 I
nthi
smet
hodf
il
esar
egi
vennumber
sandt
henpl
acedi
nnumer
icalor
der
.iti
spar
ti
cul
arl
y
usef
uli
nst
ori
ngcopi
esofnumber
eddocument
ssuchasi
nvoi
cesandor
der
saandi
n
hospi
tal
sforf
il
ingpat
ient
scar
dsandi
nschool
sandcol
l
egeswher
est
udent
sar
egi
ven
exami
nat
ion/
studentnumber
s.

Exampl
e:car
dindex

301-
Lundazi
Ser
vicest
ati
on

302-
Mfuwel
odge

303-
Pet
aukeSoci
alWel
far
e

304-
StFr
anci
sHospi
tal

 Geogr
aphi
cal
fil
i
ng

Thi
sisaf
il
ingmet
hodaccor
dingt
opl
acese.
g.Town,
Prov
ince,
Count
ry.I
tiscommonl
y
used

bybusi
nessest
hatempl
oyagent
s.

 Chr
onol
ogi
cal
fil
i
ng

Thi
sisf
il
ingdocument
sindat
eor
der
.Thi
ssy
stem i
susedwi
thi
nanot
herf
il
ingsy
stem.
Document
sfi
l
edi
nthi
sor
derassi
stst
afft
hatmayr
oughl
yknowwhenal
ett
erwaswr
it
ten
orwhenacont
ractwassi
gnedandcanuset
hatdat
etoeasi
l
ylocat
ethedocument
.

 Subj
ectf
il
ing

Document
sar
efi
l
edaccor
dingt
othei
rsubj
ectmat
ter
,andt
hent
hesubj
ect
sar
efi
l
edi
n
al
phabet
ical
order
.

(
3)I
dent
if
yty
pesoff
il
ingequi
pmentandst
atet
hei
radv
ant
agesanddi
sadv
ant
ages

 Spi
kef
il
e

Aspi
kel
ooksl
i
keav
eryl
argedr
awi
ngpi
n.Document
sar
epushedov
ert
heshar
pspi
ket
o
secur
e

t
hem.
 Adv
ant
ages

 I
tisv
erysi
mpl
eandcanbeusedbyany
one

 I
tist
he cheapestmet
hod si
nce i
tdoes notr
equi
re anyspeci
almat
eri
aland
equi
pment

 I
tdoesnotconsumeal
otofspacesi
ncedocument
sar
efi
l
edont
opoft
heot
her
.

 I
tsav
est
imet
her
efor
eeasyt
oaccess.

Di
sadv
ant
ages

 Document
sar
enotpr
otect
edf
rom f
ir
e,dust
,wat
erandhazar
ds

 Canonl
ybeusedi
nsmal
landmedi
um scal
eor
gani
sat
ions

 Onl
yal
i
mit
ednumberofdocument
sar
efi
l
edusi
ngaspi
ke.

 Ther
eisnosecur
it
yasdocument
sont
opcanber
eadbyany
one

 Foronet
ouset
hedocument
sdown,
al
lthedocument
sont
opmustber
emov
ed

 Fl
atf
il
e

Af
latf
il
eisusedt
ost
oredocument
sandi
temssuchasdr
awi
ngs,pai
nti
ngsandmaps,
t
hatneedt
o

f
lat
.

 Aboxf
il
e

I
tisusedt
okeepal
lrel
ateddocument
stoget
her
,isshapedandhasal
i
dorcov
er.

 Av
ert
ical
fil
i
ngcabi
net

Fi
l
esar
est
oredi
ndr
awer
sinor
derf
rom f
rontt
oback,
ist
all
andnar
row.

 Al
ater
alf
il
ing

Al
ater
alf
il
ingcabi
neti
swi
derandnar
rowerandf
il
esar
est
oredsi
debysi
de.
 9.
6 POSTANDTELECOMMUNI
CATI
ONSERVI
CES

Tel
emeansdi
stantCommuni
cat
ionwhi
chi
sapr
ocessoft
ransmi
tt
ingi
nfor
mat
ionf
rom
oneper
sonorf
ir
mtoanot
her
.Communi
cat
ioni
nZambi
aispr
ovi
dedbyt
heZambi
a
Tel
ecommuni
cat
ionsandt
heZambi
aPost
alSer
vices.Ot
her
sar
eAi
rt
el,
MTN,
andZamt
el.

Thepostof
fi
ce

Apostof
fi
cei
sanat
ionalor
gani
zat
ionr
esponsi
blef
orcol
l
ect
inganddel
i
ver
ingl
ett
ersas
wel
lasof
fer
ingot
herpost
alser
vices

(
1)I
dent
if
ythepost
alser
vicesanddescr
ibet
hei
ruses

 Mai
l

Mai
lref
erst
othel
ett
ersorpackagesconv
eyedordel
i
ver
edbyapostof
fi
ce.
  Cour
ierser
vice

Thi
sisaser
vicepr
ovi
dedbyt
hepostof
fi
cewhi
chi
nvol
vesf
astdoort
odoorl
ocaland
i
nter
nat
ional
pickupanddel
i
ver
yforhi
ghv
alueandur
gent
lyr
equi
redgoods.

(
b)Gi
veexampl
esofcompani
est
hatpr
ovi
decour
ierser
vices;

-DHL

-Excessbaggage

-Postexpr
esscour
ier
s

 Post
eRest
ant
e
Thephr
asepost
erest
ant
emeans“
tobecal
l
edf
or”
.Thi
sisaser
vicet
hatal
l
owspeopl
e
wi
thoutf
ixedaddr
essest
orecei
vemai
l
.Iti
susual
l
yusedbyt
rav
eler
swhohav
enof
ixed
addr
ess.Suchpeopl
eadv
iset
hei
rfr
iendsorcust
omer
stosendl
ett
erst
othenear
estpost
of
fi
ce.

 Rai
l
ex

Rai
l
exi
swhenl
ett
ersandpar
cel
sar
esentt
hrought
her
ail
waysy
stem.Theaddr
essee
(
recei
ver
)mustgot
other
ail
wayst
ati
ont
ocol
l
ectt
hei
rpar
cel
s.

 Expr
essmai
l

Expr
essmai
lser
vice(
EMS)i
sacour
ierser
vicesuppl
i
edbyZampost
.Itof
fer
sthequi
ckest
met
hodbywhi
cht
odel
i
veri
temsdoor
-door
,bot
hlocal
l
yandi
nter
nat
ional
l
y.Expr
essmai
l
i
susedt
osendur
gentl
ett
ers,
document
sandpar
cel
s.

 Regi
ster
edmai
l

Regi
ster
edmai
liswhent
hepostof
fi
cei
ssuest
hesenderar
ecei
ptf
oramai
l
i
tem andt
henr
ecor
dst
hedest
inat
ionaddr
essi
nar
egi
ster
.Iti
susedf
orusedf
or
mai
lthati
sval
uabl
eori
mpor
tant
.

 Dat
apost

Anexpr
essser
viceof
fer
edbyt
hepost
alser
vicest
hatensur
eapar
celr
eachesi
ts
dest
inat
ion ei
theron t
hedayofpost
ageort
hef
oll
owi
ng mor
ning.I
tisan
ov
erni
ghtdoort
odoorser
vicef
orpackagesofanyki
ndonadai
l
y,weekl
yor
mont
hlybasi
s.
 Par
cel
s

Apar
cel
isaboxorl
argeenv
elopesentordel
i
ver
edt
oaper
son.Theycanbesent
any
wher
einZambi
aort
oot
hercount
ri
esusi
ngpost
alser
vices.

 Busi
nessr
epl
yser
vice

Busi
nessespr
epayt
hepost
ageonr
epl
i
essot
hatt
hecust
omerdoesnothav
eto
payf
ort
hepost
age.
  Car
ds

St
andar
dsi
zecar
dst
hathav
enamesandaddr
essofr
ecei
ptaswel
lasashor
t
message

 Ci
rcul
ars

Bul
kpost
ingofi
dent
icall
ett
ersordocument
sthatar
esentt
oal
argenumberof
peopl
e.Ci
rcul
arssel
dom hav
ethenameandt
headdr
essofr
ecei
pt.

 Pr
int
edmat
ter

Pr
int
edmat
tercanbeanypr
int
edi
tem,
forexampl
eadv
ert
isement
,mai
lor
derf
orms
andcat
alogues.Thesear
enotaddr
essedt
ospeci
fi
cpeopl
eorbusi
nesses.
The
busi
nesspay
sthepostof
fi
cet
oincl
udet
hesei
temswi
thal
ltheot
hermai
lbei
ng
del
i
ver
edorpl
acedi
npostboxes.

 Post
alor
der

Thesear
epr
int
edi
nfi
xeddenomi
nat
ionsandar
esui
tabl
eforsendi
ngsmal
lamount
s
ofmoney
.Thesenderusual
l
ypay
sfort
hef
acev
alueoft
hepost
alor
derwi
thaf
ee
knownaspoundagef
ort
heser
vicer
ender
edorof
fer
edt
ohi
m orher
.

 Cashondel
i
ver
y
 Ther
eci
pientpay
sfort
hemai
lbef
oreheorshecanr
ecei
vei
t.
CODi
susual
l
yfor
goodspur
chasedonl
i
neorbyt
elephone.

 Postboxesandpr
ivat
ebags

Apostboxi
samet
alboxwher
emai
l
sandpar
cel
sar
eputf
orcol
l
ect
ionbyt
hepost
of
fi
ce.Apr
ivat
ebagi
sal
ockedbagwher
emai
l
sandpar
cel
sar
edel
i
ver
edbyt
he
postof
fi
cebel
ongi
ngt
othecor
respondi
ngaddr
esseeorr
ecei
ver
.Af
eei
schar
ged
f
orusi
ngpostboxesandpr
ivat
ebags.

 Fr
eepost

Thi
sisapost
alser
vicewher
eaper
sonsendsmai
lwi
thoutpay
ingf
orpost
ageand
t
her
eci
pientpay
sthepost
agewhencol
l
ect
ingt
hemai
l
.

 Fr
anki
ng

Thi
sisaspeci
almachi
newhi
chpr
int
spost
ali
mpr
essi
onsont
heenv
elopesi
n
r
eadi
nessf
orpost
ing.Thepost
agei
spr
epai
d.

I
dent
if
ytel
ecommuni
cat
ionser
vicesandt
hei
ruses

 Tel
emeansdi
stantcommuni
cat
ion

Tel
ecommuni
cat
ioni
sthet
ransmi
ssi
onofi
nfor
mat
ionaswor
ds,soundsori
mages
usual
l
yov
erl
ongdi
stancesi
nfor
m ofsi
gnal
s.

 Tel
ephone

Thi
sisanel
ect
ri
calsy
stem oft
alki
ngt
osomebodyi
nanot
herpl
acebyspeaki
ng
t
hroughspeci
aldev
icescal
l
edt
elephones.Tel
ephonescanbemobi
l
eorf
ixed(
land
phones)
 Tel
ex

Ty
pedmessagest
hatar
esentusi
ngat
elepr
int
er,whi
chi
sacombi
nat
ionofat
ype
wr
it
erandt
elephone.

 Tel
egr
am

Ver
yshor
tmessagesentf
rom t
hepostof
fi
ce.Thecosti
scal
cul
atedperwor
dused.
Ther
eci
pientr
ecei
vest
hepr
int
edmessagef
rom t
henear
estpostof
fi
ce.

 Phonogr
ams

Thi
sisat
elegr
am sentbyt
elephone.

 Radi
oMassager
s

Asmal
ldev
icet
hatconnect
stoacent
ralser
ver
.iti
susedbyemer
gencyser
vices,
suchasdoct
orsandmember
soft
hepol
i
ceandar
my.

 Facsi
mil
e
 Ty
pedorhandwr
it
tendocument
,messageorphot
osentbyonef
axmachi
net
o
anot
her
.Bot
hmustbeswi
tchedont
osendandr
ecei
ve.Themachi
nei
sconnect
ed
t
oat
elephonel
i
neorser
vice.

 I
nter
net

Wor
ldwi
de net
wor
kofcomput
ersy
stem t
o exchange i
nfor
mat
ion.A comput
er,
l
apt
op,
ipad,
mobi
l
ephonei
sneededt
oaccesst
hei
nter
net
.

9.
7 COMMONLYUSEDABBREVI
ATI
ONS

Ther
ear
evar
iousbusi
nessabbr
evi
ati
onsandsomeoft
hem ar
easf
oll
ows;

A/
Cora/
c Account

Bal Bal
ance

B/
d Br
oughtdown

B/
f Br
oughtf
orwar
d

C.
I.
A Cashagai
nsti
nvoi
ce

C.
W.O Cashwi
thor
der

c/
d Car
ri
eddown

c/
forc.
f car
ri
edf
orwar
d

Chq Cheque

Co. Company

B/
R Bi
l
lsRecei
vabl
e

C/
B Cr
edi
tbal
ance
.
cc Car
boncopy

Cr Cr
edi
tororCr
edi
t

Dr Debt
orordebi
t

.
c/o Car
eof

COD Cashondel
i
ver
y

Dept
. Depar
tment

Di
s Di
scount

D/
N Debi
tNot
e

E&O.
E Er
ror
sandexempt
ions

e.
g. Forexampl
e(l
ati
n,Exempl
igr
ati
a)

EPost El
ect
roni
cPost

E-
mai
l El
ect
roni
cmai
l

FYI Fory
ouri
nfor
mat
ion

FYA Fory
ouract
ion

GDP Gr
ossdomest
icpr
oduct

GNI Gr
ossnat
ional
income

HQ Headquar
ter
s

i
e t
hati
s

I
OU Iowey
ou

LAN Local
areanet
wor
k

Lt
d Li
mit
ed

MEMO Memor
andum
 O/
D ov
erdr
aft

PABX Pr
ivat
eAut
omat
icBr
anchExchange

PAYE Payasy
ouear
n

P.
B. Pr
ivat
eBag

UFS UnderFl
yi
ngSeal

PBX Pr
ivat
eBr
anchExchange

PI
N Per
sonal
ident
if
icat
ionnumber

POS Poi
ntofsal
e

Ref r
efer
ence

REG Regi
str
ati
on

Encl
s Encl
osur
e

SMS Shor
tMessage

St
d St
andar
d

VAT Val
ueaddedt
ax

Vi
z namel
y

9.
8 ENTREPRENUERSHI
P

Ent
repr
eneur
shi
p i
sthewi
l
li
ngnesst
otaker
isksanddev
elop,or
gani
zeandmanagea
busi
ness v
ent
urei
n a compet
it
ive gl
obalmar
ket
place t
hati
s const
ant
ly ev
olv
ing.
Ent
repr
eneur
s ar
e pi
oneer
s,i
nnov
ator
s,l
eader
s and i
nvent
ors.Ent
repr
eneur
shi
pis
commonl
yvi
ewedasasi
gni
fi
cantst
imul
usofposi
ti
veout
comesatbot
hthef
ir
mlev
eland
t
hesoci
etyl
evel
.
Descr
ibeabusi
nessmanagementsheet

A busi
nessmanagementi
sthepl
an,coor
dinat
ionandcont
rol
l
ingofv
ari
ousbusi
ness
aspect
s.Themai
nreasonwhyor
gani
sat
ionsf
ailespeci
all
ysmal
lor
gani
zat
ionsi
spooror
bad management
.Ther
efor
e a managementsheeti
s a pl
an orgui
del
i
ne ofhow
managementwi
l
lrunt
hebusi
nessandachi
evei
tssetgoal
sast
hebusi
nessgr
ows.

Fi
l
li
ngi
nthebusi
nessmanagementsheet

Busi
nessManagementSheet

SN Act
ivi
ty Descr
ipt
ionofwor
k Per
son Depar
tment
r
esponsi
ble

1 Fi
nanci
al Managi
ng busi
ness i
ncomes and Fi
nancemanager Account
s
cont
rol expendi
tur
e dept
.

2 Pr
oduct
io Ensur
ing t
hat goods and ser
vices Pr
oduct
ion Pr
oduct
ion
n of pr
oducedar
eofgoodqual
i
ty manager dept
.
goods

3 Qual
i
ty Ensur
ing pr
oduct
ion ofhi
gh qual
i
ty Qual
i
tycont
rol
l
er Qual
i
ty
cont
rol t
hrough moni
tor
ing and super
visi
ng cont
rol
t
hepr
oduct
ionpr
ocess dept
.

4 St
ock Ensur
ing t
hatt
he r
ightqual
i
ty and St
oresmanager I
nvent
ory
cont
rol quant
it
y of st
ock r
equi
red i
s and st
ores
mai
ntai
nedi
nthebusi
nessatl
owcost dept
.

5 Mar
ket
ing I
dent
if
y cust
omer
s, set
ti
ng pr
ices, Mar
ket
ing Mar
ket
ing
maki
ngpr
oduct
sav
ail
abl
e. manager dept
.

6 banki
ng Ensur
ing t
hatal
lbusi
ness cash i
s Fi
nanci
al Account
s
banked manager dept
.

Expl
ainway
sofManagi
ngBusi
nessFi
nances
Fi
nanci
almanagementi
sthepr
ocessofener
gisi
ngt
hebookkeepi
ngandaccount
ing
sy
stem oft
hebusi
nesst
owor
kmor
esuccessf
ull
y.Agoodf
inanci
alsy
stem makesy
out
o
knowhowy
ourbusi
nessi
sdoi
ngf
inanci
all
y.

 Fi
nanci
alcont
rol

 Banki
ng

 Av
oidt
oomuchi
nvest
menti
nFi
xedasset
s

Expl
aint
hebasi
cfi
nanci
alRecor
ds

Fi
nanci
alr
ecor
dsar
eani
mpor
tantaspectt
omai
ntai
nast
heyhel
pyoui
nthev
eri
fi
cat
ionof
f
inanci
alst
atement
sandr
epor
ts.i
tisi
mpor
tantt
haty
ouhi
reani
ndependentaudi
tort
o
comeandchecky
ourr
ecor
ds.

St
ater
easonsf
ordi
ssol
vi
ngcompani
es.

 Di
ssol
uti
onofacompanymeanst
hecancel
l
ati
onofi
tsoper
ati
onsandt
he
t
ermi
nat
ion ofi
ts cor
por
ati
on f
orbusi
ness pur
pose and consequent
lyt
he
t
ermi
nat
ionofanyobl
i
gat
iont
opayt
axesasacor
por
ateent
it
y.

 Acompanymaybedi
ssol
vedei
therv
olunt
aryori
nvol
unt
ary

 Vol
unt
ary–t
hisi
swher
eacompanyi
sdi
ssol
vedbecauset
heowner
ssowi
sh.

 I
nvol
unt
ary–wher
eacompanyhasbecomei
noper
ati
vef
oraper
iodofatl
east5
y
ear
s.

 Whenacompanyi
sdecl
aredbankr
upt

 Thef
ail
urebyt
hecompanyt
ofi
l
ether
equi
redr
epor
tsi
nappr
opr
iat
efor
msas
pr
escr
ibedi
stheSECwi
thi
npr
escr
ibedper
iods.

 Apar
tfr
om v
olunt
arydi
ssol
uti
on,acor
por
ati
onmayal
sobedi
ssol
vedbyt
he
Secur
it
iesandExchangeCommi
ssi
on(
SEC)uponf
il
ingav
eri
fi
edcompl
aintand
of
ferpr
opernot
iceandhear
ingongr
oundspr
ovi
dedbyt
heexi
sti
ngl
aws,r
ules
andr
egul
ati
ons.