Business Studies - Junior Secondary 3 - Procedure of making payment and receipts, importance and accounts

TERM: 2^ND TERM

WEEK TEN

Class: Junior Secondary School 3

Age: 14 years

Duration: 40 minutes of 5 periods each

Date:

Subject: BUSINESS STUDIES

Topic:  PROCEDURE OF MAKING PAYMENT AND RECEIPTS IMPORTANCE AND ACCOUNTS

SPECIFIC OBJECTIVES: At the end of the lesson, pupils should be able to

I.) Meaning I. E Cash bank transfer, Cheques, Bank draft, e - payment

II.)  Explain the procedure for making payment.

III.) Describe an imprest account

IV.) Define the term's Store Records

V.) Describe a Delivery note, gate pass.

VI.) Identify the Importance of stock taking

INSTRUCTIONAL TECHNIQUES: Identification, explanation, questions and answers, demonstration, videos from source

INSTRUCTIONAL MATERIALS: Videos, loud speaker, textbook, pictures,

INSTRUCTIONAL PROCEDURES

PERIOD 1-2

NOTE

PROCEDURE OF MAKING PAYMENT AND RECEIPTS IMPORTANCE  AND  ACCOUNTS.

Payment Methods:

1. Cash: Physical currency notes and coins used for immediate transactions.
2. Bank Transfer: Electronic transfer of funds from one bank account to another.
3. Cheques: Written orders instructing a bank to pay a specific amount of money from one person's account to another.
4. Bank Draft: A prepaid, written order for payment drawn on a bank, usually used for larger transactions.
5. E-Payment: Electronic payment methods such as credit/debit cards, online banking transfers, digital wallets, and payment gateways.

Procedure for Making Payment:

1. Initiation: Identify the payment amount, recipient, and purpose.
2. Authorization: Obtain necessary approvals or signatures based on company policies.
3. Payment Method: Select appropriate payment method (cash, bank transfer, cheque, etc.).
4. Execution: Process the payment through chosen method, ensuring accuracy of details.
5. Record Keeping: Maintain documentation of payment transaction for auditing and accounting purposes.

Imprest Account

An imprest account is a fixed amount of money established to cover minor, routine expenses. It is replenished periodically to maintain a constant balance, ensuring funds are always available for immediate use without the need for reimbursement.

Store Records

Store Records refer to documents and systems used to manage and track inventory within a store or warehouse. This includes:

I.) Inventory Records: Details of stock items including quantities, locations, and values.

II.) Receipt Records: Documentation of items received into the store, often accompanied by delivery notes or invoices.

III.) Issue Records: Documentation of items taken out of the store for use or transfer to another location. 

IV.) Stock Count Records: Records of physical stocktaking to reconcile inventory levels with records.

Delivery Note and Gate Pass:

1. Delivery Note: A document accompanying goods being delivered to a recipient. It details the quantity, description, and condition of goods, serving as proof of delivery and receipt by the recipient.
2. Gate Pass: A document issued by a security gate or checkpoint to authorize the movement of goods or individuals in and out of a premises. It ensures proper control and accountability for items leaving or entering a controlled area.

 Importance of Stock Taking

1. Helps maintain accurate records of stock levels, minimizing discrepancies between physical stock and recorded stock.
2. Provides reliable data for financial statements, ensuring assets (inventory) are correctly valued.
3. Identifies discrepancies, theft, or damage to stock, enabling timely corrective actions.
4. Ensures optimal stock levels to meet demand, reducing stockouts and overstock situations.
5. Helps in complying with legal and regulatory requirements related to inventory management and financial reporting.

 EVALUATION: 1. Explain the meaning of the following: Cash bank transfer, Cheques, Bank draft, e - payment

2. Explain the procedures for making payment.
3. What is an imprest account
4.   Mention 5 importance of stock taking

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively