BUSINESS STUDIES YEAR 9 SECOND TERM

SCHEME OF WORK

WEEKS TOPICS

1 Consumer protection agencies

2 How to make complaints

3 Personal finance

4 How to seek redress

5 Midterm examination
6 Trial balance

7 Midterm break

8 Trading , Profit and loss Account

9 Balance sheet

10 Business Letter

WEEK 1

CONSUMER PROTECTION AGENCIES

Objectives:

Meaning of consumer protection

Reasons for consumer protection

Consumer protection agencies and their roles and responsibilities of consumer agencies

Consumer protection refers to the government regulations made to protect the interest of
consumers against dangerous and substandard goods, exploitation by producers, in order to
ensure maximum satisfaction

Reasons for consumer protection

1. To ensure consumers derive maximum satisfaction
2. To ensure the production of quality durable goods
3. To protect consumers against counterfeit and dangerous goods
4. To educate the consumers of the side effect of consuming certain goods
5. Many consumers are not literate hence, are ignorance of their rights

Consumer protection regulatory agencies in Nigeria

1. National Agency for Food and Drug Administration Control (NAFDAC): This agency is
Responsible for the elimination of fake drugs, foods and beverage products and other
similar products.

2. National Broadcasting Commission (NBC): This agency is responsible for the

establishment of radio and Television stations, direct satellite broadcast

3. Nigerian Electricity of Regulatory commission is the body responsible electric power

Industry in Nigeria

EVALUATION
Define consumer protection
Explain reasons for consumer protection
State the consumer protection agencies

ASSIGNMENT

State other consumer protection agencies regulators

WEEK 2

HOW TO MAKE COMPAINTS

Objectives

Meaning of complaint

Types of complaints

Steps in lodging a complaint

A complaint is an objection to something that is unfair, unacceptable, that is not

Up to expected standard.

Types of complaints
1. Justified complaints: These are reasonable, defensible and acceptable complaints

2. Unjustified complaints are complaints that are baseless and unreasonable. Some
Complaints come from staff who work in a company that are not actually true

Steps in lodging complaints

1. Phone call: complaints can be made by using phone call
2 . E- mail is another step used in lodging complaints
3. A complaints can also made through letter writing
4. The complaint can go in person to lay his or her complaints by filling the complaint
form

EVALUATION

1. Define a complaint

2. State the types of complaints

3. Mention four steps in lodging complaints

ASSIGNMENT

Give reason for lodging a complaint

WEEK 3

TOPIC: PERSONAL FINANCE

Objectives

Definition finance and personal finance

Sources of finance

FINANCE simply means the way and manner how money is spent or invested i.e.it is the study of
how money is managed, invested or spent on any project.
Personal finance – is the process of controlling your money and making decisions to keep
finances in check and out of debt. It helps to make monetary decision for individuals
family/household.

SOURCES OF FINANCE

- Personal savings
- Borrowing from friends and family
- Credit cards
- Retained profits
- Loan and overdraft from bank.
Money is limited or scarce, consumers cannot afford to pay for all goods and services. So
there is need to make choice. Choice is the ability to choose the pressing want first among
many things.

Only link is that they are totally opposite in nature. A modest person is simply honest,
humble and lives within his/her means while extravagant person involves in uncontrolled
spending, spending above his/her earning.

PERSONAL FINANCE

Preparation of an individual budget. A personal budget is the most basic tool individuals use
to manage money. It is a financial planning. A personal budget is a short term
individual financial plan on his/her expenditure within a given period usually a year.
It is designed by an individual to monitor and control expenditure so that long term
objective can be achieved.

Thing to be considered while preparing a personal budget:

Identify a goal and set time before budges

i. List all the expenses.
ii. List all source of income.
iii. Ensure that expenses do not exceed 60% of the income 40% should be for investment
for the future.
iv. Subtract total expenses form total income if negative ,revist expenses and reduce it.
v. If the income is more than expenses put the excess into savings.

Example of individual budget:

Categories Budget amount

Income:

Wages and bonuses

Investment income

Income taxes :

Income tax

Spendable income

Expenses :

Home

Mortgage or rent

Home repairs/maintenance
Utilities :

Electricity

Water

Natural gas or oil

Telephone

Food :

Caro cerise

Eating out

Family obligations :

Child support

Day care, baby sitting

Health and medical :

Insurance

Out pocket medical expenses

Transportation :

Clothing

Investment/savings

Miscellaneous :

Toiletries

Gift

Total investment and expenses

Surplus/shortage {spendable income minus

expenses and investment}

Uses of personal budget.

a. It teaches member of family the worth of money.

b. It is a tool for planning and thinking ahead.
 c. It identifies areas in which one can spend or take necessary steps to curtail
expenditure.
d. It alerts you against cash flow problem in the future.
e. It gives ideas of how much credit are in a position to take on without landing in
serious debt.
f. It helps to support long term goals.

EVALUATION

Define finance and personal finance

State the sources of finance and personal finance

WEEK 4
HOW TO SEEK REDRESS
Objectives
Meaning of consumer redress and rights
Types of consumer rights
Ways of seeking redress
Benefits of seeking redress

Consumer redress is the process of providing a set of rules and guideline that protect
all consumers. It also refers to a process of providing for fair settlement of justified
claims. On the other hands, consumer rights are privileges entitled to consumers.

Types of consumer rights

1. Right to satisfaction of basic needs such as food, clothing, shelter and education
and health
2. Right to choose between goods of various quantities and prices
3. Right to get truthful and honest information about the goods and services purchased

Ways of seeking redress

1. Public Complaints Commission
2. Judicial Commission of Inquiry
3. Federal High Court
4. High Court of the State

Benefits of seeking redress

1. Right to get truthful and honest information about the goods purchased

2. It provides avenues for customer’s complaints to be heard and attended to

When they are not satisfied

3. Peaceful resolution of disputes

4. It improves access to justice

EVALUATION

Explain consumer redress and rights

State types of consumer rights and ways to seek redress

Highlight benefits of seeking redress

WEEK 6
TRIAL BALANCE
Objectives
Definition of a trial balance
Items contain in a trial balance
Examples of a trial balance

A trial balance is a tool an accountant uses to check that the general accounting ledger is
accurate and to minimize errors that occurs in a firm’s financial statements.
A trial balance is a list of credit entries and debit entries that businesses use to internally
audit their double-entry accounting systems. The goal is to confirm that the sum of all debits
equals the sum of all credits and identify whether any

Today, credit balances and debit balances are checked automatically, mostly eliminating the
need to create trial balance documents. However, trial balances are still useful for
accountants who need to check their work and for auditors who may need to understand
which accounts to audit.

What does a trial balance include?

A trial balance document lists all of the accounts from the general ledger, with two columns:
one for debits and one for credits. A trial balance typically includes five elements:
Credits and debits to each account from transactions during the accounting period
The associated account names
The associated account numbers
The dates of the accounting period
The total sum of all debit balances and credit balances
Trial balance example
Here’s an example of a trial balance.

Trial Balance for period 1/1/2022 to 3/31/2022

Account Number Account Name Debit Credit

101 Cash $1,825 $400

102 Accounts receivable $725 $625

105 Inventory $400 $300

201 Accounts payable $0 $1,725

302 Common stock $0 $275

401 Sales revenue $0 $925

502 Credit card expense $450 $0

account

505 Utility expense account $550 $0

507 Cost of goods sold $300 $0

Total Balance $4,250 $4,250

In this example, the total credit balance equals the total debit balance. While this alone
cannot confirm that all entries have been entered correctly, it’s a good sign that your
accounts are accurate. A discrepancy between balances means that there is an error
somewhere in the accounting system.

EVALUATION

Define a trial balance

Highlight items contain in a trial balance

State examples of a trial balance

WEEK

FORMS OF TRIAL BALANCE

Objectives

State forms of a trial balance

Use of a trial balance by a business
Reasons for preparing: Trading account, Profit and loss account, balance sheet

The following are the forms of a trial balance:

Trading, profit and loss account, and the balance sheet

When should a business use a trial balance?

Trial balances can help an accounting team generate a balance sheet, check the accuracy of
their double-entry accounting practices, and identify any errors in their accounting, such as
transactions that have been entered in the wrong account.

Business owners may also choose to prepare a trial balance in the middle of a standard
reporting period to assess financial position and ensure that accounting systems are on
track.

Reasons for preparing forms of accounting by a business

Trading account is a final account prepared to determine gross profit or loss

It is usually prepared at the end of each financial year

Profit and loss account is an account is prepared to determine the real profit or loss.

This profit or loss is also known as net profit or loss.

Balance sheet is a statement that shows the financial summary of a business, otherwise
the net worth of a business.

EVALUATION

State the forms of a trial balance

Express when a business should use a trial balance

Explain the reasons for preparing Trading, profit and loss account, and balance sheet

WEEK 10

TRADING, PROFIT AND LOSS ACCOUNT.

Objectives
Meaning
Content of trading, profit and loss account
Trading account is prepared to determine the profit or gross loss in a particular business
period. The gross profit or loss is the different between sales and cost of goods sold.

Business prepares trading, profit and loss account to ascertain the financial position of a
business at the end of the year.

Contents of trading account :

i. Opening stock – is a usually the stock at the beginning of the period.

ii. Closing stock – is the stock hot used up at the end of the business period.
iii. Returned outward – are goods bought but return to the owner due to one reason or
the other e.g. defective or substandard.
iv. Return inward – are goods sold to the customers but returned due to one reason to
the other.
v. Carriage inward – is the cost of carrying goods bought into an organisation.
vi. Cost of goods available for sales – is the summation of opening stock , purchases,
carriage inward and deduct goods returned.
vii. Gross profit – is the excess of sales over the cost of goods sold.
viii. Net sales – is the sales less return inward.

Trading account.

Opening stock *** sales ***

Add: purchases *** less: sales return **

 *** Net sales ***

Less: return outward **

Cost of goods available ***

Less : closing stock ***

Cost of goods sold ***

Gross profit c/d ***

*** ***

Profit and loss Account.

After the preparation of trading account is the profit and losss account. we ought to prepare
it together but for learning :we have to separate them.

Profit and loss account is prepared to determine the net profit or net loss of the business.

Simply Layout Of Profit and Loss Account

Wages and expenses *** gross profit b/d ***

General expenses *** add discount receive ***

Advertising *** ***

Electricity *** ***

Office expenses ***

Discount allowed ***

***

net profit ***

*** ***

Assignment : prepare trading, profit and loss account of babasuwe Nig. Ltd at 31 st Dec.
2008, use the following information.

Sales 10000

Purchases 2000

Discount allowed 200

Discount received 400

Opening stock 2000

Closing stock 1000

Rent expenses 500

Insurance 600

Return outward 100

Return inward 150

EVALUATION
Define trading, profit and loss account
State the contents of trading, profit and loss account
Reasons for preparing Trading, profit and loss account