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Questions and Answers
What is the purpose of a cheque payment?
What is the purpose of a cheque payment?
What is one of the functions of the wage office?
What is one of the functions of the wage office?
What is the purpose of a bin card in store records?
What is the purpose of a bin card in store records?
What is the trial balance used for?
What is the trial balance used for?
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What is the main objective of book-keeping?
What is the main objective of book-keeping?
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What is a characteristic of a double-entry book-keeping system?
What is a characteristic of a double-entry book-keeping system?
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What is the trading and loss account used for?
What is the trading and loss account used for?
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What is the importance of the wage office in an organization?
What is the importance of the wage office in an organization?
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Study Notes
Procedures for Making Payment
- Cash Payment: payment made in cash, e.g., cash purchased from market
- Credit Payment: payment made on credit, e.g., buying goods on credit from suppliers
- Cheque Payment: payment made through a cheque, e.g., paying salaries to employees
- Electronic Payment: payment made through electronic means, e.g., online banking
Wage Office
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Functions:
- Preparation of payroll
- Calculation of wages and salaries
- Payment of wages and salaries
- Maintenance of employee records
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Importance:
- Ensures timely payment of wages and salaries
- Maintains employee morale
- Helps in budgeting and financial planning
Store Records
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Types of Store Records:
- Bin Card: a card that records the quantity of goods stored in a bin
- Store Ledger: a book that records all transactions related to goods stored
- Goods Received Note: a document that acknowledges receipt of goods
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Importance:
- Helps in stocktaking and inventory management
- Ensures accurate recording of goods stored
- Facilitates efficient management of store operations
Trial Balance and Trading & Loss Account
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Trial Balance:
- A list of all ledger accounts and their balances
- Helps in detecting errors and preparing financial statements
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Trading and Loss Account:
- A financial statement that shows the profit or loss of a business
- Calculated by matching revenue with expenses
Book-keeping
- Definition: the process of recording, classifying, and reporting financial transactions
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Objectives:
- To provide financial information for decision-making
- To ensure accountability and transparency
- To facilitate financial planning and control
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Types of Book-keeping Systems:
- Single-Entry System: records only one aspect of a transaction
- Double-Entry System: records both debit and credit aspects of a transaction
Payment Methods
- Cash payment is made in cash, e.g., cash purchased from a market.
- Credit payment is made on credit, e.g., buying goods on credit from suppliers.
- Cheque payment is made through a cheque, e.g., paying salaries to employees.
- Electronic payment is made through electronic means, e.g., online banking.
Wage Office
Functions
- Prepares payroll.
- Calculates wages and salaries.
- Pays wages and salaries.
- Maintains employee records.
Importance
- Ensures timely payment of wages and salaries.
- Maintains employee morale.
- Helps in budgeting and financial planning.
Store Records
Types of Store Records
- Bin card records the quantity of goods stored in a bin.
- Store ledger records all transactions related to goods stored.
- Goods received note acknowledges receipt of goods.
Importance
- Helps in stocktaking and inventory management.
- Ensures accurate recording of goods stored.
- Facilitates efficient management of store operations.
Financial Statements
Trial Balance
- Is a list of all ledger accounts and their balances.
- Helps in detecting errors and preparing financial statements.
Trading and Loss Account
- Shows the profit or loss of a business.
- Is calculated by matching revenue with expenses.
Book-keeping
Definition
- Is the process of recording, classifying, and reporting financial transactions.
Objectives
- Provides financial information for decision-making.
- Ensures accountability and transparency.
- Facilitates financial planning and control.
Types of Book-keeping Systems
- Single-entry system records only one aspect of a transaction.
- Double-entry system records both debit and credit aspects of a transaction.
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Description
This quiz covers the different methods of payment, including cash, credit, cheque, and electronic payments, as well as the functions of a wage office in accounting.
