Lesson Notes By Weeks and Term - Junior Secondary School 2

OFFICE PROCEDURE

SUBJECT:  BUSINESS STUDIES       

CLASS:  JSS2

DATE:

TERM: 3RD TERM

 

WEEK EIGHT

OFFICE PROCEDURE

CONTENT:

  1. Meaning of Office Procedure
  2. Importance of Office procedure
  3. Procedures for Making Payments

 

It is necessary as well as important to have a system or set of rules for performing activities in an organization. Hence, office procedure means the system or the set of rules for running the activities or affairs in an office.

 

IMPORTANCE OF OFFICE ROCEDURE

  1. Good office procedure aids the smooth running of the office and it reduces delays.
  2. It helps in the overall coordination of the various sections of the organization.
  3. It helps to make work in the office faster
  4. It helps to prevent fraud
  5. It helps to reduce errors in the performance of duties.

 

PROCEDURES FOR PREPARING BILLS AND INVOICES

In business transactions, when an order is received, such order goes to the  sales department or office of the organization, where the customer’s bill or invoice is made out. Usually, this is prepared with several carbon copies. The issued invoice outlines the following information:

  1. Order number and date  (ii) quantity and description of goods bought (iii) unit price (iv) total price or amount  (v) discount (if any), (vi) net amount payable.
  2. (vii) terms of delivery i.e. condition of delivery.

 

The invoice issued by a seller or supplier is a bill to the buyer.

 

PROCEDURES FOR MAKING PAYMENT

There are various means of settling a bill in business transactions. They include:

  1. payment by cash
  2. Payment by cheque: This is done by instructing the bank to pay our supplier from the money in our bank accounts.
  3. Payment by bank draft: A bank draft is a means of payment which the bank is guaranteeing on behalf of this customer. While a customer’s cheque can bounce, the bank draft cannot. The cheque and bank draft means of payment enables us to pay a large sum of money without the risk of carrying physical cash

 

EVALUATION

  1. What is an invoice?
  2. Explain payment by cheque

 

SUB-TOPIC: WAGES AND SALARIES OFFICE:

Content:

 

  • Meaning of Wages and Salaries Office
  • Roles of Wages and Salaries Office
  • Method of Paying Wages

 

 

The wages and salaries office is a section in an accounts department which is responsible for preparation and payment of wages or salaries of employees in the organization. This office keeps good accounting records of all the wages and salaries earned by the staff in the organization.

THE ROLES OF WAGES AND SALARIES OFFICE

  1. Preparation of  Vouchers: A voucher can be defined simply as a document representing evidence of payment
  2. Preparation of Payrolls: They prepare payrolls i.e. tabulated statement of salaries and wages entitlement
  3. Issuance of pay Advice:- They issue pay advice. The pay advice is a document issued to staff members of a business organization indicating the net amount of salary payable to a staff after deductions.
  4. Calculation of Wages: The term wages usually refers to payment given to non-permanent worked staff or labour in the factory and one-of engagement. Such amount can becurried out using hours worked multiplied by rate of pay per hour. Alternatively, it can be calculated using the units of production. This method is calculated using number of units produced multiplied by the rate of pay per unit.

 

A given amount of bonus can also be added to any of the above methods as required by management.

METHOD OF PAYING WAGES

  1. Time rate: This is a system of paying wages to workers based on time spent on the job which can be hourly or on a day’s work
  2. Piece rate: The amount earned as wages is related to the work done. This method can acts as an incentive increase output.
  3. Profit-sharing method
  4. Commission basis
  5. Premium bonus system

 

READING ASSIGNMENT:

Read pages I6 to 22 of WABP Business Studies for JSS 3 by Egbe T. Ehiametalor et al

 

GENERAL EVALUATION QUESTIONS

  1. Mention seven departments that can be found in any large organisations
  2. State one function of each of the department mentioned above
  3. Mention at least three departments found in your school
  4. List the factors of production and their respective rewards
  5. Give the other name for entrepreneur

 

WEEKEND ASSIGNMENT

  1. The section of accounts department responsible for preparing workers’ pay is called  (a) Salaries and wages office (b) Welfare office (c) Admin office (d) marketing department
  2. A voucher is a/an ____ (a) invoice (b) account (c) evidence of payment (d) Requisition note
  3. A payroll is also known as a ____ (a) voucher  (b) invoice  (c) payroll  (d) pay advice
  4. ____ is a method of calculating wages (a) hourly rate (b) staffrate  (c) quarterly rate (d) all of the above
  5. Which of the following shows the full details of a worker’s pay? (a) pay roll (b) pay slip (c)integrated service  (d) cash pay.

 

THEORY

  1. State two roles of wages and salaries office
  2. List three items that could constitute deductions on payroll

 

SUB-TOPIC: STOCK AND STOCK RECORDS

Content:

  1. Meaning of Stock and Store
  2. Store Records
  3. Stock Taking

Stock refers to goods which are offered for sales or material which are to be used for production. In businesses, raw materials for producing goods and equipment needed for making other goods can be kept in a store. Hence, a store is a place where materials or goods are kept for future use.

 

DOCUMENTS USED IN THE STORE DEPARTMENT/STOCK RECORDS

In order to avoid theft, pilfering, shortage or loss, proper stock records are compulsory in business organization.



STOCK REQUISITION FORM

This document is used to collect stocks from the store. It stipulates the quantity of stocks required and the reason for the request. This document helps to ensure orderliness in the movement of stocks in and out of the store. It helps also to detect theft of stocks from the store.

 

STOCK CARD

This is a document prepared for each item of material to show how stock is being issuedfrom the store, the date on which the item is being issued, the department that made the request and the balance in the store.

 

PURCHASE REQUISITION FORM

This is the document completed by the purchase department whenever the stock falls to a reorder level and stock needs to be replenished.

 

STOCK – TAKING

This is the physical count of stocks in the store periodically. It could be quarterly, monthly, annually or bi-annually.

 

Advantages or importance of stock - taking:

  1. It helps to prevent theft of stocks
  2. It enables the stock keeper to know the minimum and maximum re-order levels
  3. It helps to reveal slow-moving stocks
  4. It helps to prevent pilfering of stock
  5. It enables the accounts department to ascertain the end –of-the year figure for stock for final accounts preparation.

 

Types of stock taking

 

  • Annual stock taking
  • Periodic stock taking
  • Perpetual stock taking

 

 

EVALUATION:

  1. What is stock taking?
  2. Explain stock requisition

 

Reading Assignment:

Read pages 24 and 25 of Business studies for Jss 3 by O. A. Lawal etc.

 

GENERAL EVALUATION QUESTIONS

  1. Which department in the organization takes charge of store?
  2. Give another name for the store
  3. State three reasons for keeping stock in the store
  4. List three documents used in the store department
  5. What is perpetual sock taking?

 

WEEKEND ASSIGNMENT

  1. Stock records are the documents that enable an organization to ____ (a) pay workers (b) record salaries (c) determine the  movement of goods  (d) advise the employees
  1. Stock requisition note is used to (a) collect stock from the store (b) send goods to the store (c) buy goods from the suppliers (d) sell goods to the customers.
  1. The physical count of the stocks in the store on periodic basis is called  (a) storekeeper      (b) stock-taking    (c) invoicing     (d) re-order level
  2. Perpetual inventory means taking of stock__(a) everyday  (b) every week  (c) occasionally  (d) every month.
  3. All of the following are system of stock control except___  (a) maximum level  (b) reorder level  (c) economic level   (d) reorder level

 

THEORY

  1. State 4 advantages of stocktaking
  2. Explain the importance of stock requisition note.

 

READING ASSIGNMENT:

Read pages I to 8 of WABP Business studies for JSS 3 by Egbe T. Ehiametalor et al

 

GENERAL EVALUATION QUESTIONS

  1. Mention five source documents
  2. Explain any three as mentioned above
  3. State the difference between a debit note and a credit note
  4. Define an invoice
  5. Mention three items contained in an invoice

 

WEEKEND ASSIGNMENT

  1. Which of the following is not a means of payment?  (a) Cheque  (b) Currency (c) Bank draft (d) Teller
  2. Who issues an invoice? (a) Buyer  (b) Seller  (c) Producer  (d) Consumer
  3. Which of the following means of payment is the safest for the sellers (a) coins (b) cheque   (c) goods  (d) bank draft
  4. The terms of delivery means ___ (a) where to deliver  (b) when to deliver to (c) the driver on delivery (d) the conditions regarding delivery
  5. Which of the following is an advantage of the invoice? (a) It helps the order to be made                  (b) it enables the accounts section to know the actual amount to collect from the customer          (c) It shows the address of the business organization  (d) It states the condition of delivery.

 

THEORY

  1. State seven items that must be contained in an invoice
  2. State two advantages of an invoice to the seller.

 



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