DEEPER LIFE HIGH SCHOOL

SECOND TERM: E – LEARNING NOTES

JS 2 (BASIC 8)

SUBJECT: BUSINESS STUDIES

SCHEME OF WORK

WEEK TOPIC

1. Insurance (a) Insurance (i) Definition (ii) Insurance service (b) Types (policies):
Vehicle, Fire, Burglary, Marine, Life insurance, Pension, Health. (c) Benefits of
insurance.
2. Personal qualities an Entrepreneur
3. Business opportunities (a) Meaning of business opportunities (b) Types: Local
National, International.
4. Consumer Rights: (a) Meaning of consumer rights (b) Origin of consumerism (c) Eight
universal Consumer rights.
5. Responsibilities of a consumer: (a) Meaning of consumer responsibility (b)
Responsibilities of consumer.
6. Shopping Tips: (a) Meaning of needs and wants (b) Differences between needs and
wants (c) Making decisions about needs and wants (d) Impulse buying (e) Effects of
impulse buying (f) After sales services: Warranty, Installation etc.

7. MID –TERM BREAK

8. BOOK -keeping Ethics: (a) Transparency, accountability and probity: (i) meaning (ii)
Need for TAP (iii) Attributes of TAP. (a) Due process: (i) meaning (ii) operation (iii)
Truthfulness (iv) Openness (v) Fairness (vi) impartiality (vii) Due process (viii) Respect
for the rule of law, etc. (ix) problems created by lack of TAP and their solution.
9. Ledger Entries: (a) Meaning of ledger (b) Items on ledger: date, particular, folio,
discounts, amount (c) How to record cash received/ payment, discount received
discount allowed, contra entries.
10. Revision
11. Examination

WEEK 1

REVISION/INSURANCE

Preview

1. Insurance: definition of insurance.

2. Insurance services.
 3. Types of insurance policy – vehicle, fire, burglary, marine, Life insurance, pension,
health, etc
4. Benefits of insurance

Full Content

Meaning of insurance: insurance is the protection against the loss of property and life. With
regard to property, insurance covers practically everything an individual or business owns
(building, vehicles and even clothes). Insurance can be taken out on practically anything for
which risk is associated.

Insurance is usually undertaken when a person enters into an agreement with an insurance
company by paying an amount of money called the Premium. The company is known as the
Insurer. The person who pays the premium is the insured.

SERVICES PROVIDED BY INSURANCE COMPANIES

1. It provides compensation for losses incurred by individuals and businesses

2. It minimizes losses and risks by spreading it through the creation of a common fund
to which many contribute in order to make good the losses of a few.
3. It aids business survival and help them to quickly recover economically from natural
or man-made disaster.
4. To help families whose breadwinners may die accidentally while at work
5. Provide sources of fund in case of health break down.
6. Provide continuous funds for those who have retired.
7. It provides employment opportunities.
8. It encourages savings habit.
9. It educates the insured on the occurrence of certain risks.
10. It serves as a collateral security for loan from financial houses.

TYPES OF INSURANCE

1. Vehicle insurance: This form of insurance can be taken by any person or business
that owns a car. Once an individual has taken out such an insurance , that person is
covered against a specific loss.

FORMS OF VEHICLE INSURANCE COVERAGE

 Third party insurance: This policy allows a driver whose car is hit by another car
to file a claim against other who is wrong and who holds this type of policy. In
other words, the insurance company insures the person which the policy holder
may accidentally hit. It provides protection against liability caused by a car
accident.
  Comprehensive Insurance: This policy covers the loss incurred by the individual
who took out the policy and the person he accidentally hit. The policy holder can
also recover a certain percentage, as high as 80% of the cost of the car, if it is
stolen, washed away by flood or damaged by a fallen tree.
2. Fire insurance: is a coverage against fire hazards which may consume business
premises or personal property. In recent years, there have been numerous fire
hazards in public buildings. The Republic building in Lagos state, the Cocoa House in
Ibadan, the Pay Office in Abuja and NNPC office complex in Lagos and some
examples of high rise buildings destroyed by fire in Nigeria. The losses associated
with this buildings would have been enormous but for the fact that the owner of this
building had insured them against fire hazards. At the occurrence of such fires, the
insurance company would pay a sum agreed at the time of insurance.
3. Burglary or Theft insurance: This type of policy covers loss of, or damage to property
in the event of burglary or theft. Items that are insured under this class of insurance
stock, plant and machinery, household effects, office equipment, etc
4. Marine/Sea Insurance: This is one of the oldest types of insurance. Cover provided
by a marine insurance policy is limited to dangers on water, that is, it covers loss of,
or damage to ships, and the cargo carried by them.
5. Life Assurance: Life assurance serves a dual purpose. It is a means of reducing the
financial burden of a family which the bread winner may bring. It is also a method of
saving.
Life assurance is always for a specific period of time during which the assured
continues to pay his or her premiums. The payment of such premium may be yearly,
quarterly or monthly.

In the event of the assureds’ death, the insurance company pays out the sum
assured by the policy.

Types of Life Assurance

Whole life assurance: This policy ensures the payment of the amount of money
due at the death of the assured.
 Endowment assurance: An amount is assured for a given number of years after
which the assured is paid the amount. This policy is taken up for a specific period,
e.g. twenty years.
6 Pension insurance; this is a contributive policy by both the employer and the employee
to safeguard the gratuity and pension benefit of employees . The employee only has
access to the fund at the age of 60 years or after working for 35 years as the case may
be.
7 Health insurance ; this is a term commonly used to describe any program that help pay
 For medical expenses whether through privately purchased insurance, social insurance
or social welfare program funded by the government. Therefore it is the type of insurance
that provides protection against the cost of medical expenses.

BENEFITS OF INSURANCE

 Protects capital assets against such risks as fire, theft, accidents.

 Enables the policy holder to form the habit of saving regularly
 Helps the assured to obtain loan for some future business or other projects. For
example, in certain circumstances, life assurance can be used as a security for loan.
 Provides cash (an income benefit) for the dependants of the policy holder in the event of
death.
 Ensures that worries and embarrassment that might make an individual unhappy are
removed, since he is certain that any loss or damaged suffered by him will be made good
by the insurance company.
 It helps to promote foreign trades.
 It is an important aid to trade.
 It provides credit facilities.
 It accelerates the growth of the country,
 It provides peace of mind.
 It reduces business risk or losses.

EVALUATION

Objectives:

1. Which of the following is the purpose of insurance? (a) to make profit (b) to make good
the loss suffered (c)to collect premium (d) to avoid loss
2. One of the insurance policy is not for motor vehicle (a) third party(b) marine(c)
comprehensive (d) theft
3. All the risk stated below are not insurable except (a)storm(b) earthquake(c) gambling (d)
thefts
4. What is the sum of money paid by the insured to the insurance company called? (a)
Discount (b) commission (c) premium (d) dividend.
5. The person who pays the insurance premium is the……..a insurer b insured c insurance.

ESSAY

1. What is insurance?
2. Why is insurance important to the businessman or individual taking out a policy?
3. What are the benefits of insurance?
4. Explain the following terms in insurance:

i insured
ii Insurer

iii premium

iv insurance policy

v indemnity
WEEK 2
DATE: ………………………………….

TOPIC: PERSONAL QUALITIES OF AN ENTREPRENEUR

The entrepreneur is commonly seen as an innovator-a generator of new ideas and business
processes. Management skill and strong team building abilities are often perceived as essentials
leadership attributes of successful entrepreneurs.

PERSONAL QUALITIES OF AN ENTREPRENEUR

The following are the qualities of a successful entrepreneur:

1 DISCIPLINE: Successful entrepreneurs are disciplined enough to take steps every day toward the
achievement of their objectives. They focuses in making their business work and eliminate the
hindrances or distractions to their goals.

2 CONFIDENCE; The entrepreneurs does not ask questions about whether they can succeed or
whether they are worthy of success .they are confident in their knowledge that they will make their
business succeed.

3 OPEN-MINDED: Entrepreneurs realized that every event and situations is a business

opportunity.

Ideas are constantly being generated about work flows and efficiency, people, skills and potentials.
They are ready to accept changes in line with the goals of their business

4 SELF STARTER: Entrepreneurs know that if something needs to be done, they should start it
themselves. they are proactive , not waiting for someone to give them permission.

5 COMPETITIVE: Many companies are formed because an entrepreneur knows that they can
do a job better than another .they need to win at the businesses that they create .An
entrepreneur will highlight their own company’s tract record of success.
6 CREATIVITY: The fact of creativity is to be able to make connections between seemingly
unrelated events or situation. They come up with solutions to problems and to produce
items that will meet the needs of the society.
7 PASSION: Passion is the most important traits of the successful entrepreneurs. They
genuinely love their work. They are willing to put in extra hours to make the
business succeed because there is a joy their business gives which goes beyond
money. The successful entrepreneurs will always be reading and researching ways
to make the business better.
8 STRONG PEOPLE SKILL: Entrepreneurs has strong communication skills to sell the products
and motivate employees. They are good at relating well with people because they
recognize that people are the most important resource of any business.
9 DETERMINATION: Successful entrepreneurs never give up. They keep going on no matter
the obstacles because they believe things will get better.
 10 STRONG WORK ETHICS: Entrepreneurs are hardworking people .Their mind is constantly
on their work whether they are in or out of their work place.
11 TIME MANAGEMENT; Time is Money in business. An entrepreneur must know how to
manage his time well. He must equate time with success and achieve more with little time

EVALUATION:

List and explain five personal qualities of an Entrepreneur.

EVALUATION (Objective)

1. All but one is not a quality of an Entrepreneur. (a) Discipline (b) Confidence (c) Craftiness (d)
Passion (e) Creativity.
2. _____ means keeping to time and rules in order to make business work. (a) Confidence (b)
passion (c) Creativity (d) Determination (e) Discipline.
3. ______ is the seeking of new ways to make business better and to solve problems (a)
competition (b) creativity (c) confidence (d) Open mindedness (e) Passion.
4. To relate well with people, an entrepreneur should have ____ (a) Determination (b) Passion
(c) Creativity (d) Strong people skill (e) Strong work skill.

WEEK 3

TOPIC: BUSINESS OPPORTUNITIES

CONTENT:

a. Meaning of Business Opportunity

b. Types: Local, National, International

Meaning of business opportunity: This is a chance for a person to start a business, in order to
generate income. A business opportunity consists of four integrated elements all of which are to be
present within the same time frame (window of opportunity) and most often within the same
domain or geographical location, before it can be claimed as a business opportunity. These four
elements are:

1. A need
2. The means to fulfill the need
3. A method to apply the means to fulfill the need
4. A method to benefit

TYPES OF BUSINESS OPPORTUNITIES

1 LOCAL

2 NATIONAL

3 INTERNATIONAL

LOCAL BUSINESS OPPORTUNITY: This is a business opportunity that can be found in the local
1environment, Example
 A man who lives in a village and has a farm with lots of palm trees has a business opportunity to
make palm oil, brooms etc from the palm trees and sell them at the local market to generate
income. Another man in the riverine area has the opportunity to catch fish from the rivers and
sell them locally to generate income.

NATIONAL BUSINESS OPPORTUNITIES

This is a business opportunity that enables one to do business outside the shores of his
environment or state but within his country. Example

A man or woman from a state who inherited a very large plot of land can start farming. He can
grow a plantation of sugar cane and sell his farm produce to markets in areas outside his state.
This will make him a national businessman or businesswoman.

INTERNATIONAL BUSINESS OPPORTUNITY

This is a business opportunity that involves the exportation (selling) and importation (buying) of
products between one country and another. Example:

A cocoa farmer in Nigeria with a large cocoa plantation can export his farm produce to another
country and generate income.

A cloth designer in one country can also find international markets for his/her designs and sell
them in other countries.

EVALUATION:

OBJECTIVES

1. An activity that involves sales or lease of any product, service, equipment etc that
will enable the purchaser-licensee to begin a business is called ………….. a. business
opportunity b. business enterprise c. business organization d. business studies.
2. All are elements of business opportunity except: a. A need b. means to fulfill
the need c. method to apply the means to fulfill the need d. product to
be sold.
3. ………… is a business opportunity that involves the exportation (selling) and
importation (buying) of products between one country and another. a national b
local ( c) international.
4. ………….is a business opportunity that enables one to do business outside the shores
of his environment or state but within his country. A) local (b) national (c)
international.

ESSAY :

1 Define Business opportunity?

2 Explain three types of business opportunities with examples .
WEEK 4

DATE:……………………………….

Topic: CONSUMER RIGHTS

CONTENT: (i) Meaning of consumer right

(ii) Origin of consumerism.

(iii) Eight universal consumer rights

Sub-Topic 1: MEANING OF CONSUMER RIGHTS

_________________________________________________________________________
Consumer right may be defined as certain privileges and liberty that every consumer enjoys.
Consumers all over the world have some rights that should be respected and protected. Such rights
should be respected by the producers/ suppliers of goods and services. The state and some agencies
are responsible for the protection of such rights.

ORIGIN OF CONSUMERISM

Consumerism can be defined as the organized efforts or actions of consumers or individuals to

protect themselves against the unfair practices of businessmen. It can also be referred to as a
protection against injustice and the efforts to correct such injustices.

Consumerism came into existence when a movement started in the 60s to obtain a greater say in
the quality of product they bought and the information they received from the sellers. They also
sought to increase their influence, power and rights. This is the whole essence of the theory of
consumerism.

Sub-Topic 2: UNIVERSAL RIGHTS OF CONSUMERS/CONSUMER AWARENESS

Consumers are important that is why they are regarded as King. Consumer awareness is the right of
consumers, and they are;

I. Right to get value for money.

The consumer has the right to be adequately compensated with satisfaction for
whatever product purchased with a warrantee or guarantee .i.e. a consumer
deserves to be told everything about the product as it will affect him or her.
II. Right to be informed.

Consumers have the right to full information regarding the quality , price , weight ,

Manufacture date , expiration date ,contents of product , availability of a commodity.

They also have the right to alerted on any increase in price, quality change.
 III. Right to safety.

The consumer has the right to purchase products that are safe and injurious to his
or her health.

IV. Right to choose or make choice.

The consumer has the right to choose products freely among different alternatives
without force or intimidation.

V. Right to seek redress.

The consumer has the right to seek redress to correct any injustice done to him or her.
He /she has the right to seek justice at the law court if there is a case of product
misrepresentation, harm from product or service bought.

VI. Right to be heard. A consumer has the right to be heard for mistakes
committed by a third party in order to get redress. He has to be represented.
VII. Right to consumer education. A consumer has the right to acquire the
knowledge and skills necessary to be an informed consumer.
VIII. Right to a healthy environment. He /she has the right to live and work in an
environment that is healthy, accident free, clean and secure.
IX. Right to all the good things of life. He /she has the right to the good things of
life such as good quality products that are reasonably priced , consumption of
products without fear of taking poison and also the right to basic necessities of
life. Such as food, clothing, shelter, basic health care, education and sanitation.

weekend Assignment:

1. Needs for consumer Protection excludes ____ (a) Consumers ignorance (b)
Producers lack of concern (c) To make profit (d) To reduce hoarding.
2. Right to seek redress means _____ (a) Going to court (b) Suing the
Producer if they produce substance goods (c) Returning substances goods
3. The right to get the cost of what you paid for is ____ (a) Right to life (b)
Right to safety (c) Right to all good things of life (d) Right to get value for
money.
4. The price for a product restrict your ____ (a) Right to information (b) Right
to education (c) Right to healthy environment (d) Right to choose or
choice.
5. An effort made by government, its agencies, certain individual and civic
societies to curtail producer excesses is called consumer_____ (a)
Protection (b) Awareness (c) Information (d) Right.

ESSAY:
1. List out the 8 universal rights of consumer
2. Define consumerism and trace its origin.
WEEK 5
DATE ……………………………

TOPIC: RESPONSIBILITIES OF CONSUMER

CONTENTS: (i) Meaning of consumer responsibilities.

(ii) Responsibilities of consumer.

MEANING CONSUMER RESPONSIBILITY

Consumer responsibility refers to the role a consumer plays in the way that goods or services are
provided and made available to the public . Therefore it is the duty of the consumer to be aware
of any changes that may have been made and which may affect the performance of the product and
so on.

THE RESPONSIBILITIES/ OBLIGATIONS OF CONSUMERS

The following are the responsibilities or obligations of the consumers:

1 PRODUCT AWARENESS : It is the responsibility of the consumer to be alert and ask question
about the use of products; the price , quality of goods and services he/ she is buying.
2 SOCIAL CONCERN ; A consumer should be aware of the effects his or her consumption have
on the other citizens especially disadvantaged groups, whether in the local , national or
international community.
3 ENVIRONMENTAL AWARENESS; A consumer must understand the environmental
consequences of his or her consumption. He or she should understand his or her individual
and social responsibility to keep natural resources.
4 PERSONAL RESPONSIBILITY: A consumer must act to ensure that he or she gets fair deal on
products and services because if a consumer is passive about his or her right , he or she will
be exploited.
5 ORGANISED GROUP: A consumer must be willing to join organized group to promote
consumers interests and rights.
6 He must always collect adequate information and facts about a product or service in the
market.
7 He must not engage in dishonest practices nor engage himself in 419 activities
8 He must always report to CPC or any other agencies any complaint he has about a producer
or a product
9 He must be courageous to inform producer and government of consumers’ need and
expectations
10 He must be capable of making decisions about his needs and wants
11 He must inform business organization in a clear and honest manner about his displeasure in
a product or service.
EVALUATION:
1 What is consumer responsibility?
2 Identify any 5 responsibility of consumer
 WEEK: 6
DATE: ……………………………….
TOPIC: SHOPPING TIPS
CONTENT (i) Meaning of Want, Needs,
(ii) Differences between wants and needs.
(iii) Making decision about needs and wants.
(iv) Impulse buying.
(v) Effect of impulse buying.
(vi) After sales services: Warranty, Installation etc.
a. MEANING OF WANTS
Wants may be defined as mere desire, wishes or ends of human beings not backed
by ability to pay. Wants are those goods and services that people would like to have
to improve the quality of their life. Human wants are many and insatiable but the
resources to satisfy them are scarce and limited. Examples of wants are houses, cars,
shoes, air-conditioner, books, hand-sets, computers properties, education, security,
entertainment, yogurt, ice cream. Etc.
MEANING OF NEEDS
Needs refer to those goods and services that are essential/important. Basic needs
of man are food, shelter and clothing. Needs range from basic survival need,
necessity, intellectual and social needs. Basic needs must be satisfy in a sequence
order
b. DIFFERNCES BETWEEN WANTS AND NEEDS

S/ WANTS NEEDS
N
1 Something you would like to Something you have to have
have
2 You can do without it You can’t do without it
3 Wants are not absolute Needs are necessity
necessary
4 Examples of wants are music, Examples of needs are food, clothing and
ice-cream, cars, lap top, yogurt shelter
etc.
5 Wants can be avoided Needs can not be compromised

6 Human wants are different Human needs are the same.

7 Wants are created through Needs are created through natural
personal desire. demands.

c. DECISION ABOUT NEEDS AND WANTS.

Steps involved
(I). Have a budget made up and don’t spend over this amount.
(ii). Have list of items that you intend to buy and stick to it (scale of preferences)
(iii). Compare prices between sellers.
(iv). Examine the goods carefully, are they exactly what you want
(V ) Sometimes packaging can mislead you. Check out the warranty.
To avoid impulse buying you need to ask yourself if you really need the item or not
and you need to discipline yourself .
d. IMPULSE BUYING
Impulse buying can be defined as unplanned decision to buy a product or service,
made just before a purchase. One who tends to make such purchases is referred to
as an impulse purchaser or impulse buyer. Impulse buying can occur when a
potential consumer spots something related to a product that stirs a particular
passion in them.
Emotion and feeling play a decisive role in purchasing, triggered by seeing the
product or upon exposure to a well-crafted message. Impulse items may be new
product, samples or well-established product at unexpected low prices.
Factors responsible for impulse buying
1. Price/ special sales price.
2. Presence of other during purchase.
3. Free shipping.
4. Holiday or seasonal promotion.

e. EFFECTS OF IMPULSE BUYING

1. It makes you spend money on items you may not really need or want.
2. It affect your expenditure on other relevant items.
3. Spend money unwisely
4. Family disapproval
5. Feeling of disappointment
6. Financial difficulties
7. It affects the whole family economically.
(f) AFTER SALES SERVICES
After sales services are extra services sometimes made available to a customer after
he has purchased the product in order to ensure continuous patronage . These
include:
1. Home delivery : The seller provides transportation to deliver the goods to
customers’ premises
2. Installation Services: The seller can also embark on installation of customers’
products because of their expertise about the goods.
3. Servicing, Repairs, and Maintenance; Maintenance and servicing facilities are
provided at convenient locations.
4. Warranty: Free replacement of faulty parts especially when the product is under
guarantee or warranty.
 5. Provision of spare parts: The seller sometimes make provision for adequate
supply of replacement parts
6. Provision of free advice on use
7. Provision of maintenance
8. Creating room for training about the products purchased.

EVALUATION:
1. Define needs and wants
2. State 3 differences between needs and wants
3. Mention any two steps involved in making decision about needs and wants
4. Explain impulse buying and give four effects of impulse buying.
5. State five forms of after sales service.
OBJECTIVE:
1. ……………………… may be defined as mere desire, wishes or ends of human
beings not backed by ability to pay. (a) wants (b) goods (c) needs
2. ……………………….refer to those goods and services that are essential/important.
(a) Impulse (b) needs (c) demand
3. food, shelter and clothing are example of …………………… (a) needs (b) better
goods (c) wants
4. Hand-sets, computers properties, education, security, entertainment, yogurt,
ice cream. Are examples of…………………. (a) needs (b) wants (c) demand (d)
after sales service
5. ………………. buying can be defined as unplanned decision to buy a product or
service (a) impulse (b) consumer rights (c) true (d) right
6. One who tends to impulse purchases is referred to as an ………………….. (a)
goods buyer (b) right buyer (c) impulse buyer.

WEEK 7

DATE :……………………………. MID –TERM BREAK

WEEK: 8

DATE ……………………………….

Topic: BOOK -KEEPING ETHICS

CONTENT: i. Meaning of TAP

 Ii . Need for TAP

iii. Attributes of TAP

iv. Due process

v. Problems created by lack of TAP and their solutions.

Sub- Topic 1: THE MEANING OF TAP AND NEED FOR TAP

TAP is an acronym which is well-known in Nigeria. It stands for transparency, accountability and
probity. These three summaries the foundation of book keeping ethics and standard.

MEANING OF TRANSPARENCY

Transparency is defined as the quality of being truthful without a hidden agenda .A

bookkeeper should be transparent in carrying out his duties either in keeping
valuable records or recording of business transaction .

ACCOUNTABILITY

Accountability means to be responsible/ accountable for any action that takes place. A
book- keeper should be ready to explain any point which seems to hidden to the

Officer involved in book-keeping accountability is very important.

PROBITY

Probity means uprightness and honesty of character. A book keeper should not falsify
entries in any of the records. It helps in effective keeping of records.

Attributes of Probity

1 To follow laid down guidelines and regulation.

2 To reduce corruption: it helps to reduce corruption especially in private sectors.

3. Fairness to all: this means that financial dealing of any organization is handled in
such a way that no one is cheated.

THE NEED FOR TAP

TAP is a very important thing which helps business owners to achieve success in book
keeping. The need for TAP is as follows:

1 To reduce corruption in private and public sectors

2 To allow things to be done in their proper way
3 To follow the rule of law in doing things
4 To be fair to others i.e. to avoid bribery and corruption
5 To give room for selection of people on merit
 6 To create more employment opportunities
7 To reduce crime rate to the bearest minimum.
8 To eradicate poverty.
9 For political stability.
10 Encourage foreign direct investment.
11 Promote public integrity
12 Institute good government and good governance
13 Institute honesty in the various ways of doing business in both government and private
sectors
14 To keep the citizens of the country well informed about government actions.

Sub topic 3; ATTRIBUTES OF TAP

1 Truthfulness ; The public should be told the truth on any issue, especially
contentious ones at all times.
2 Openness; every action taken must be open to public debate and criticism.
3 Fairness; An organization must not be seen to favour any person, group or entity.
4 Impartiality ; Everybody must be treated fairly and equally to avoid favoritism
5 Due process; the laid down procedure for carrying out any action must be
followed.
6 Respect for the rule of law; what the law says must be obeyed to the letter no
matter who is involved.
7 Free flow of information; information on any aspect of an action taken must be
made available to those interested in finding out what has happened.
8 Loyalty; an employee should act in the interest of his organization.
9 Honesty. An employee should be honest and truthful at all times in all
transaction.
10 Reliability ; He must be trustworthy for the organization to move forward.
11 Equity and sincerity.
12 Adequate records for internal and external reporting.

SUB TOPIC 2

TOPIC: BOOK KEEPING ETHICS: DUE PROCESS

MEANING OF DUE PROCESS

This is act of doing something according to laid down rules or procedures or the process that should
be followed in doing things.

Attributes of due process

The following are the attributes of due process;

 1. Truthfulness
2. Openness
3. Fairness
4. Impartiality
5. Respect for the rule of law.
6. Equity

Let’s take a closer look at each of the attributes;

Truthfulness is the ac t of saying the truth always.

Openness is the act of making ones action and operation clear to all.

Fairness means giving equal consideration to all.etc.

PROBLEMS CREATED BY LACK OF TAP AND THEIR SOLUTIONS;

PROBLEMS:

1 Increase in the incidence of bribery

2 Influence peddling
3 Disregard for the rule of law.
4 Nepotism ie giving jobs only to your relations
5 Increase in the incidence of fraud
6 Increase in the incidence of extortion by those dealing with the public
7 Embezzlement of public funds
8 Perversion of the justice system
9 Bad government and bad governance
10 Lack of integrity
11 Diversion of public funds into private pockets
12 Low foreign direct investment
13 Lack of accountability
14 Poor public infrastructure like roads, water and electricity.

SOLUTIONS;

1 There should be respect for the rule of law.

2 All government and private sector actions should be made open.
3 Laid down rules and procedures on government contract awards should be strictly
followed.
4 There should be better wages and salaries for civil servants and public office holders to
reduce the incidence of corruption.
5 Public officers should be held accountable for government funds.
6 Examples should be made of those who are not transparent or accountable for their
actions or funds kept in their care.
EVALUATION:

OBJECTIVES:
1. ………………….. is the quality of being truthful without a hidden agenda (a)
transparency (b) probity (c) due process.
2. TAP stands for (a) transparency, accountability and probity. (b) true,
account and payment.
3. ……………… is the act of doing something according to laid down rules and
procedures a. corruption b due process c. transparency d probity
4. …………. . implies the ability of an individual to be responsible for his
action a. probity b transparency c. accountability d fairness.
Essay Test: (I). Explain transparency, accountability and probity.
(ii). Mention three needs for TAP.
(III) Define due process
(iv) list six attributes of due process.

WEEK 9
Topic: Book Keeping - Ledger Entries

PREVIEW

1. Book keeping – Ledger Entries: ledger, meaning of ledger,

2. Items on a ledger – date, particulars, folio, Discount – amount,
3. How to record cash received/payments: discount received, discount allowed and
contra entries

Full Content

Meaning of Ledger:

A ledger is the principal book of account where all accounting entries are recorded. It
usually has numbered pages to enable it to be easily identified from other book of account.
Each page is called a Folio, and the number in it is called Folio number. A Ledge is drawn as
follows:

ITEMS ON A LEDGER/LEDGER ENTRIES

DEBIT (DR) CREDIT(CR)

DATE PARTICULARS FOLIO AMOUNT DATE PARTICULARS FOLIO AMOUNT
N K N K
Entries on the Entries on the
 left side are right side are
DEBIT ENTRIES CREDIT ENTRIES

Single Column Cash Book

The single Column Cash Book is drawn as follows:

ILLUSTRATION

Enter the following transaction in the single column cashbook of Mr Eze for the month of
October ,2016.

Oct 1 started business with # 4300 cash

Oct 8 bought goods worth # 500

Oct 20 sold goods for cash # 1800

Oct 28 paid rent for cash # 200

Oct 30 received a cash loan of # 4000 from S .Udo

Oct 30 paid cash of # 6300 to M , Akpan

Oct31 Received #4500 from T Alabi

Dr Mr Eze’s one column cash book for October, 2016.

Cr
Date Particulars Foli Amount Date Particulars Folio Amount
o
 # k # k
Oct 1 Capital 4300.00 Oct8 Purchases 500.00
Oct20 Sales 1800.00 Oct28 Rent 200.00
Oct30 S.udo 4000.00 Oct30 M. Akpan 6,300.00
Oct31 T, Alabi 4500.00 Oct31 Balance c/d 7,600.00

14,600.00 14,600.0
0
Nov 1 Balance b/d 7600.00

1. Date: this column is for recording the day, mount and year the transaction took place
2. Particulars: this column explains the type of transaction that took place, e. g sales,
purchase and name of individual that is involved in the transaction
3. Folio: this column is used in entering the page number of the journal from which
from which the posting to the ledger account is made
4. Discount: this column is for entering the discount received for proper reconciliation
when cost is being calculated.
5. Amount: this column is used to record the actual monetary value in Naira and Kobo.

HOW TO RECORD CASH RECEIVED/PAYMENT

EXAMPLE: If Mr. Hassan made the following transactions, they will be posted in a three –
column cash book:
March 1. Cash at hand 200.00
Cash in bank 2,000.00
1. Withdrawal of office cash 300.00
2 Customer R. Adelai settle his account of
N200 by cash and was allowed 5% discount
4 Paid wages by cheque 700.00
5 Receive cheque from R.Winla 1,160.00
5 Allowed him discount 40.00
5 Purchase of goods less 5% discount
(Discount received) by cash 400.00
6 Paid T. Chike by cheque 280.00
 Discount received 20.00
6 Bought packaging materials for cash 20.00
7 Cash sales 3,000.00
7 Paid into bank 2,800.00
th
What was the balance brought down on 7 Mar,2005?

Mr. Hassan’s Three Column Cash Book for March 2005

Date Particular Foli Disct. Cash Bank Date Particulars Folio Disct. Cash Bank
s o Allwd Receive
d
Mar 1 Balance b/d 200 2,00
Mar 2 Office 300
Mar 2 Bank 300 0 Mar 4 Cash 700
Mar 2 R. Adelai 10 190 Mar 5 Wages 20 380
Mar 5 R. Winla 40 Mar 6 Purchases 20 280
Mar 7 Sales 3000 1160 Mar 6 T. Chike 20
Mar 7 Packing
Cash cc Mar 7 mat. cc 2,80
2,80 Mar 7 Bank 0 4,68
0 Balance 490 0
Oct. 1 Balance b/d 50 3,69 5,96 40 4,50 8,00
0 0 0 0
490 4,68
0

From Mr. Hassan’s Cash Book, the following ledgers can be drawn:
Dr Office A/c
Cr
Date Particulars Amount N Date Particulars Amount
Mar 2 Bank 300

Dr Bank A/c
Cr
Date Particulars Amount N Date Particulars Amount
Mar 2 Bank 300

Dr R. Adelai A/c
Cr
Date Particulars Amount N Date Particulars Amount
Apr 1 Balance c/d 200 Mar 2 Cash 190
Mar 2 Discount 10
Dr Wages A/c
Cr
Date Particulars Amount N Date Particulars Amount
Mar 4 Bank 700

Dr R. Winla A/c Cr
Date Particulars Amount N Date Particulars Amount
Apr 1 Balance b/d 1,200 Mar 5 Bank 1,160
Mar 5 Discount 40
1,200

Dr Purchase A/c Cr
Date Particulars Amount N Date Particulars Amount
Mar 5 Cash 380 Apr 1 Balance c/d 400
Mar 5 Discount 20
400

Dr T. Chike A/c Cr
Date Particulars Amount N Date Particulars Amount
Mar 6 Bank 280 Apr 1 Balance c/d 300
Mar 6 Discount 20
300

Dr Packing Materials A/c

Cr
Date Particulars Amount N Date Particulars Amount N
Mar 6 Cash 20

Dr Sales A/c
Cr
Date Particulars Amount N Date Particulars Amount N
Mar 7 Cash 800

Dr Discount Received A/c

Cr
Date Particulars Amount N Date Particulars Amount
Mar 5 Purchases 20 Apr 1 Balance c/d 40
Mar 6 T. Chike 20
40

Dr Discount Allowed A/c

Cr
 Date Particulars Amount N Date Particulars Amount
Mar 2 R. Adelai 10
Mar 5 R. Winla 40

Dr Cash Account Cr
Date Particulars Amount N Date Particulars Amount N
Mar 7 Cash 2,800

Further Explanations
1. Discount Received: This is the cash rebate given to the seller by his suppliers of
goods. It is recorded on the credit side of the cash book and on the debit side of the
ledger
2. Discount Allowed: This is the cash rebate given to the buyers of goods by the seller.
It is usually recorded on the debit side of the cash book and on the credit side of the
ledger.
3. Contra Entries: the word contra is a Latin word meaning opposite. In some cases in
business, there may be excess cash in hand which needs to be paid into the bank for
official use. These are known as contra entries because both sides of the cash book
will have entries concerning each transaction. Contra entries are denoted by “c” or
“cc” in the folio columns and on the ledger. A bank that is credited in the cash book
will be debited, while cash debited on the cash book will be credited.

EVALUATION
Objectives:
1. ___________ is not a column in the ledger. (a) Date B. Folio C. Cash
2. _________ is a column for entering page numbers. A. Particulars B. Folio C.
Discount
3. The debit side of the ledger is at the _______ A. left-hand side B. right-hand side
C. Centre side
4. The column used for recording the actual monetary value is called ______ A. folio
B. discount C. Amount
ESSAY:
1. Define Ledger
2. List four items posted on the debit side of a ledger

3. Record the following in the appropriate ledger account of Tochukwu Nwufo:

2. a. Folio 28
Jan 1 he owed the business N2000
Jan 10 he was goods worth N3,500
Jan 15 he paid N4,000 cash to the business
Jan 22, receive a debt note of N550
Jan 25 receive a credit note of N150

WEEK: 10 REVISION