PHARMA COLLEGE HAWASSA CAMPUS

DEPARTMENT ACCOUNTING

Basic accounts work Level II

Unit of competency: - Process customer

transaction
Module title: - Processing customer transaction
Module code:-BUF 051012

2015 E.C

Processing customer transaction Page 1

Processing Customer Transaction Level II

LO1 provide customer services

LO2 process basic financial transaction

LO3 administers the translation process

LO1 provide customer services

 What customer service means?

- It means providing a quality product or services those satieties the
needs wants of a customer and keeps them coming back.
 Good customer service means much more:-
- It is a continued success
- Increases profit
- Higher job satisfaction
- Improve company/ orgn morale
- Better team work
- Market expansion of service /product
 Customer service qualities :-
- It means that ,customer service-accountability =delivery
 Professional qualities in customer service:-

-professionals who constantly deal with customers (inside and outside

the company (orgn) needs to strive for certain qualities to help them
answer customer needs.

Processing customer transaction Page 2

  There are six basics of customer needs stand out
- Friendliness-courtesy & politeness
- Empathy
- Fairness
- Control
- Information
 During providing customer services any employees/individual use
polite and friendly alternative or words such as
- I will find out rather than “I don’t know”
- What I can do is” rather than “No”
- “let me find the right person who can help you with rather than
that’s not my job”
- “let’s see what we can do about this “ rather than “that’s not my
fault “ etc

Processing customer transaction Page 3

  LO2 process basic financial
transaction
- Accounting systems are designed to show the increase and
decrease in each accounting equation element as a separate records

This records is called an account Asset= Liability + Owners Equity

- An account in its simplest form has three parts.

1. A. title the name of accounting equation
2. A space for recording increase in the amount of the element
3. A space for recoding decrease in the amount of the element.
 The account form presented below is called a T. account
Title
Left side Right side
Debit Credit
 Amount entered on the left side of an account are debit and
amount entered on the right side of an account are credit
 Recording transactions in accounts must follow certain rules for
example:-
- Increases in assets are recorded on the debit of an account
- Decrease in assets are recorded on the credit of an
- The excess of the debits of an assets account over its credit is the
balance of the account.

Processing customer transaction Page 4

 Ledger: - it is a group of accounts for a business entity.
 Chart of account: - it is a list of the accounts in the ledger.
 Assets:- are resources owned by the business entity
 Liabilities:- are debts owed to outsiders (creditors)
 Owner’s equity:- is the owner’s right to the assets of the business
after all liabilities have been paid
 Revenues:- are increases in owners’ equity as a result of selling
service/products to customers.
 Expenses: - results from using up assets or Consuming services in
the process of generating revenues.
 Balance sheet accounts
1. Assets 2. Liabilities
-Cash -account payable
-Account receivable -unearned rent
-supplies 3. Owner’s equity
- Prepaid insurances -capital
- Land -drawing
-office equipment
 Income statement accounts
4. Revenue -fees earned 5, expenses -Wage expenses
-utilities expenses
- Miscellaneous expenses
- supplies expenses

Processing customer transaction Page 5

 - Rent expenses
 Normal balance

It means the sum of the increases in an account in usually equal to or

greater than the sum of the decrease in the account.

- Thus the normal balance of an account is either a debit or credit

depending on whether increases in the account are recorded as
debits or credits.
 All asset account normally balance is debit (when increases)
 All liability accounts normally have credit balance (when
increases).
 All expenses account normally have debit balance (when
increases).
 All revenue account normally have credit balance (when
increases)
 The process of recording a transaction in the journal is called
journalizing
 The entry in the journal is called a journal entry.
Example 1:
1. Nos paid & 20,000 for the purchase of land as a future building
site.

Nov land--------------------- Dr & 20.000

Cash --------------------- Cr &20.000

Processing customer transaction Page 6
 (Purchase land for building site)
2. Purchase supplies on account for & 1,350 on Nov .10
Nov supplies -------------------------Dr 1,350
10 Account payables----------1350
(Purchase supplies on account)
3. Received cash of & 7,500 from customers for services

Nov cash -------------------7500

15 Fees earned ------7,500

(Received fees from customer)

4. Incurred the following expense wage &2,125, rent & 800

utilities & 450 and miscellaneous & 275 on Nov,20
Nov wage expense----------------------------------2125
20 rent expense-----------------------------------800
Utilities expense------------------------------450
Miscellaneous expense--------------------275
Cash-----------------------------------3650
(Paid expenses)

Processing customer transaction Page 7

 Example 2:

March1. Ann hill invested the following from her par-time business to transfer a
full-time business: cash Br 3,500 account receivable 950 supplies Br 1200 and
equipments Br 15,000.

Answer – Cash-------------------------------------3,500
-account receivable ---------------------950
-supplies ----------------------------------1,200
-Equipment-------------------------------15,000

Ann hill capital------------------------------------20,650

2. March 4, purchased additional equipment on account from limenih photographic

equipment inc.for birr 2500

Photographic equipment ----------------------------------2500

March 4 account payable ----------------------------------2500

2. March 5: received Br 850 from customers in payment of their

account.

March 5 cash-------------------------------850

Account receivable-----------------------850

3. March 6. Paid Br 125 for a news paper advertisement

March 6 miscellaneous expense ------------------125

Cash ------------------------------------- 125

4. March 8 paid receptionists Birr 575 for two weeks salary

Processing customer transaction Page 8

 March 8 salary expenses----------------------------------575

Cash -----------------------------------------------575

5. March 10. Paid Birr 650 for supplies

March 10 supplies---------------------------------------650

Cash-------------------------------------------650

6. March 12 received Birr 1870 from sales for the second half of
March.

March 12 cash ---------------------------------------------1870

Fees revenue-----------------------------------1870

Processing customer transaction Page 9

 Lo3 administer the translation process
 During administering any transaction any individual will be
displays all active translation with the following information
 Transaction ID
 Component that started the transaction
 Status (prepared running committing)
 Translation types global

Local

5. Elapsed time
 When the transaction takes places periodically any individual will
be
 Control each daily transaction
 Maintain each financial data will be recorded
 Ensure each transaction’s will be accurate and valid in the business
 Check each transaction compare to supporting documents’ is
correctly recorded r not.

Processing customer transaction Page 10