4.1 Business Transactions

• The meaning of a business transaction
• Types of business transaction: cash and credit
• Methods of making payments for goods and services
• Choosing a payment method
• Surveying payment methods

• explain the concept of a business transaction in book-keeping
• analyse the methods used in making payments for goods and services
• carry out a survey on the methods of payment in the school
• recognise the methods of making payments for goods and services

“Which are the methods used in making payment for goods and services?”

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1. Business transactions and methods of payment
   40 min · 1 practice tasks · quiz
   What a business transaction is, the difference between cash and credit transactions, and the methods by which payments are made - with a survey of how the school pays.
2. Cash versus credit in the books
   40 min · 1 practice tasks · quiz
   Why book-keeping treats "cash" as paid now, and how debtors and creditors arise from credit sales and purchases.
3. Paying with notes and coins
   40 min · 1 practice tasks · quiz
   When physical cash is the right method, and why a business still needs a record of it.
4. Cheques and bank transfers
   40 min · 1 practice tasks · quiz
   How a cheque orders a bank to pay, and how EFT and RTGS move money account to account.
5. Standing orders, debit cards and credit cards
   40 min · 1 practice tasks · quiz
   Automatic regular payments, and the difference between spending your own money and borrowing the bank's.
6. Mobile money in Kenya
   40 min · 1 practice tasks · quiz
   Why M-Pesa and similar services became the common everyday method, and the records they already create.
7. Choosing a payment method
   40 min · 1 practice tasks · quiz
   Matching amount, safety, speed, cost, record and access so the method fits the deal.
8. Surveying how the school pays
   40 min · 1 practice tasks · quiz
   Carrying out the curriculum survey of payment methods used in the school, and recognising them in real records.
9. From the deal to the record
   40 min · 1 practice tasks · quiz
   A transaction is complete only when a trail exists that book-keeping can follow.