IMPREST ACCOUNT AND THE ROLE OF WAGES AND SALARIES UNIT

THE FUNCTIONS OF SALARIES AND WAGES UNIT AND IMPREST ACCOUNT

 

Subject: Business Studies

 

Class: Basic 9 / JSS 3

 

Term: First   Term

 

Week: Week 2

 

Topic :

IMPREST ACCOUNT AND THE ROLE OF WAGES AND SALARIES UNIT

 

 

Previous Knowledge: The pupils have previous knowledge of

 

 

OFFICE PROCEDURES AND PRACTICES

 

 

that was taught in their previous lesson.

 

 

Learning Objectives: At the end of the lesson, learners will be able to

• work out Imprest account: balance and restoration
• explain the the role of wages and salaries unit
• define Store records: meaning and procedure for procurement
• say the meaning of delivery note and gate pass

 

 

 

 

Instructional Materials 

• cheque book
• invoice
• receipt
• a picture of an office

 

Methods of Teaching 

• Role modelling
• Questions and Answers
• Explanation
• Discussion
• Recitation
• Imitation
• Story Telling
• Dramatization

 

Content: 

WEEK 3

DATE:……………………………

Topic: OFFICE PROCEDURE:

CONTENT:

1. Imprest account: balance and restoration
2. The role of wages and salaries unit
3. Store records: meaning and procedure for procurement
4.  Delivery notes and gate pass

Sub-Topic 1: IMPREST ACCOUNT AND THE ROLE OFWAGES AND SALARIESUNIT

IMPREST ACCOUNT:

An imprest account is a type of account where funds are set aside for specific purposes. The account holder can use the funds for authorized expenses and then replenish the account when needed. This type of account is often used by businesses to ensure that employees have access to funds for business-related expenses.

Large business transactions are settled by cheque and not by cash. However, there are minor expenses which have to be settled by cash. Such items as postage, transport fare, stationery, carriage and cleaning are all paid for in cash. Therefore, enough money will have to be kept handy in the office to meet these expenses. Money kept in the office to meet minor expenses is called petty cash.

Records for these minor expenses are kept in a separate book known as the petty Cash book. A petty cashier is responsible for the petty cash book.

Under the imprest account system, an agreed sum of money is allocated to the petty cashier .At the end of a scheduled period ,the amount spent is refunded to the petty cashier in order to restore the account to the original amount. The original amount agreed upon is called an imprest or float. This method of keeping the petty cash is known as the imprest system.

WHY USE AN IMPREST ACCOUNT:

There are several reasons why you might want to use an imprest account. First, it can help you track and control spending. By setting aside funds in an account specifically for business expenses, you can better monitor and control how those funds are used. Second, it can simplify accounting and bookkeeping. Rather than dealing with a lot of small transactions, you can lump them all into one account. And third, it can help you manage cash flow. By having a dedicated account for business expenses, you can avoid dipping into your company’s operating account to cover those costs.

WAGES OFFICE:

The wages office is responsible for ensuring that employees are paid correctly and on time. They also work with payroll to ensure that taxes are withheld correctly. The wages office is typically located in the human resources department of a company.

A wage office is that office in an organization which handles the payment of wages.

Wages: wages constitute the reward for labour. Wages refers to payments made to unskilled labour. In other words, wages are defined as the hourly, daily or weekly compensation paid to workers for their labour.

Salary: This is the total financial remuneration paid to full-time employees in exchange for their labour.

Differences between wages and salaries

Wages	Salaries
I. Wages are not fixed ii. Wages are usually paid to casual workers iii. Payment of wages could be terminated at short notice. iv. Payment of wages could be on an hourly basis or on daily basis. wages are taxable Vi. Wages are based on output	Salaries are fixed Salaries are paid to permanent workers Payment of salaries can only be terminated after a period stated in the contract of employment Salaries are paid monthly or bi-weekly Salaries are taxable Salaries are not based on output

The role of wages and salaries unit:

1. The wages office calculates and pays the correct number of wages due

to each worker

2. The wages office records the difference between gross pay and net pay.

3. The wages office records and makes the necessary deductions from the pay

of each worker.

4. The wages office calculates the number of hours put in by each worker

and hence the total amount due to such a worker.

5. The wages office compiles the total amount of wages paid to all the workers and hence the cost of labour of the organization.

Payroll:

The pay roll shows the list of workers employed by the organization and the number of wages each person is to be paid. The following information can be found in the pay roll:

• Employees number
• Employees name
• Salary grade level
• Basic pay
• Allowances
• Gross pay
• Statutory deduction
• Net pay
• Signature

PAY ROLL

No. of Employee	Name of employee	Grade Level GL	Basic pay	Allowance		Gross Pay	Deductions		Net Pay	sign
				House	Transport		Tax	Union fee
1 2 3 4.	Ajasco.A James o Jonathan David.M	09 10 12 13	100000 150000 200000 300000	2000 3000 4000 6000	2000 2000 3000 4000	104000 155000 207000 310000	500 600 700 1500	500 800 900 1200	103000 153600 205400 307300

Pay slip/Pay Advice: This is a small statement issued by the wages office to the staff or workers of an organization .It is given to every employee of an organization at the end of each month to show how their net pay is calculated. It is enclosed in the pay envelope of the except for the who receive their salary through the bank who have to collect their pay slip from the wages office to be able to know how much was paid to them that month.

Evaluation:

1. In a tabular form, give four differences between wages and salaries

2. Mention five roles of salaries and wages unit in any organization

3. Differentiate between payroll and pay slip

Sub-Topic 2:

MEANING AND IMPORTANCE OF STORE RECORDS

Meaning of store

A store is a place where goods are kept for future use. The goods here may be raw materials, semi-finished goods or finished goods

STORE RECORDS

Store records are documents that help an organization to determine the quantity of goods available in the store. They also help the organization to know the materials that have been issued out or used and those that have not been used. The stock department is responsible for safekeeping of the stock of either raw materials or finished goods.

Documents used in the stock department

A number of documents used in the stock department include:

1. Stock requisition form

2. Stock card

3. Purchase requisition form

4. Delivery Note

5. Gate pass

 

Stock requisition form

The form is used when collecting goods from the store. Any department within the organization, which requires any goods from the store will normally complete the stock requisition form.

STOCK REQUISITION FORM

Item	Details	Number Required	Quantity

………………….. ……………………

Authorised Signature Above items supplied by me

…………………………… …………………………………

Section Above items received by me

Stock card

A stock card is prepared for each item of material. The stock card shows how the material is being issued out from the store and the quantity being put into stock. The stock card also shows the date on which an item was issued out ,the requisition form number, the department which made the request and the balance in stock.

STORE CARD

Name of item______________ Item ref No_______________

Form No___________

DATE	DETAILS	RECEIPTS		ISSUES		Balance
		Deliv Note NO	In	Requisition Number	Out

Purchase requisition form

Quite often, stock falls to a re-order level that is, a low level, at which stock must be replenished. At this level, the storekeeper informs the Purchasing Department of the need to replenish stock. This is done by completing a form called the purchase requisition.

LAWAL&SONS NIGERIA LIMITED 22 Festac Road Badagry Purchase RequisitionForm Date………… purpose………………… Serial No………………

Quantity	Description	Code	Order no	Order form
Storekeeper…………………………….. Authorised by…………………………

Delivery Note

A delivery note is normally sent alongside the goods. It states the types and quantity of goods delivered. It does not state the prices of the goods being delivered .The delivery note is used to check if the goods delivered are as ordered.

Gate Pass

The gate pass is used to control the movement of goods and people in and out of organization. It is basically used by the security department of an organization to ascertain the authorization of individuals to move out company`s goods and properties.

Importance of store records

The importance of store records is outlined as follows:

1. Store records help to minimize fraud

2. Storerecords are used to ascertain the balance of such balance.

3. Store records accurately indicate the time for the purchase of more items

4. Store records show the re-order level, the minimum stock and the maximum stock.

5. Stock records help in reconciling the recorded balance of stock with stock that is physically available in the store.

Store Procurement

Store procurement is the responsibility of the Purchasing Department.The sorekeeper and the purchasing officer both play an important role in the procurement of materials needed by the organization.

Procedure for store procurement

1. Apurchase requisition form is completed, giving details of materials to be procured.

2. Two copies of the requisition form are prepared; the top copy is forwarded to

the purchasing officer while the duplicate goes to the production manager.

3. The purchasing officer selects a suitable supplier who quoted the most

Competitive price.

4. A purchase order is issued to the supplier. This is a legal contract between the

Supplier and the company.

5. The goods are delivered and inspected.

6. Areceipt is given to the carrier

7. A Goods Received Note and an Inspection Note are raised and signed by

the appropriate officer, especially the storekeeper.

Meaning of Stock-taking

Stock-taking refers to the physical count of goods in the storeroom or warehouse so as to reconcile the physical stock balance and the book balance.

Importance of stock-taking:

Stock-taking is important in business for the following reasons:

i) It helps to control the level of stock held

ii) Stock-taking helps to ensure that stock is replenished as and when due.

iii) Store taking shows the efficiency or otherwise of store management.

iv) It alerts the company when there is loss of stock through theft, misuse or damage.

v) Stock taking provides accurate stock valuations that are needed for the preparation of the annual account.

Documents used in the stock department of a business organization

In the stock department of a business organization, there are many different types of documents that are used on a daily basis. Here is a list of some of the most common documents that you will find in this department:

1. Stock Inventory Record: This document is used to track the quantities of all the different products and materials that are in stock. It is important to keep accurate records of inventory levels so that the company can order more supplies when needed and avoid overstocking.

2. Stock Order Form: This document is used when placing orders for new products or materials. It includes information such as the quantity, product code, and delivery date.

3. Stock Transfer Form: This document is used when transferring products or materials from one location to another. It includes information such as the quantity, product code, and the receiving location.

4. Stock Adjustment Form: This document is used when making changes to the quantities of products or materials in stock. It includes information such as the quantity, product code, and the reason for the adjustment.

5. Stock Audit Form: This document is used when conducting audits of the stock levels. It includes information such as the quantity, product code, and the discrepancies that were found.

Keeping accurate records of all the different documents that are used in the stock department is essential and very important .

Evaluation:

1. Define store records

2. Mention four documents used by the stock department

3. Outline five importance of keeping proper records by the store department

4. The following are the details of pay of the employees of Diva Company for the month of August, 2012.

Mr.Paul

• Basic salary £100,000
• House allowance £40,000
• Transport allowance 30,000
• He pays 10% of his basic salary as tax
• Union dues 5% on basic salary
• Car loan £1,000
• Furniture loan £500

Mr. Giwa

• Basic salary£120,000
• House allowance£ 45000
• Transport allowance£35,000
• 10% of his basic salary as tax
• Union due 5% on basic salary
• Car loan £2,000
• Furniture loan£1,000

Mrs .Jerome

• Basic salary £150,000
• House allowance£50,000
• Transport allowance £40,000
• 10% of basic pay as tax
• Union due is 5% on basic pay

You are required to compute :(a) amount each staff would pay as tax (b) how much each would pay as union due (c) prepare a pay roll that shows gross pay ,deductions and the net pay of each employee.

WEEKEND ASSIGNMENT

1.The following are examples of stores except (a)Raw materials (b) motor vehicles(c)tools (d)finished goods

2.The financial remuneration paid to full-time employees at the end of the month is called (a) pay roll (b) pay slip (c) salary (d)wages

3……….. is defined as hourly financial remuneration paid to operating employees in exchange for their labour (a)voucher (b)pay roll (c)salary (d)wage

4.Advice note given to a staff containing the breakdown of their gross pay ,deductions and net pay is called ……………….. (a) employment letter (b) tax resale (c) tax clearance (d) pay slip

5.Which of the following comes first in the pay slip given to staff? (a)deduction (b)Gross pay (c)Net pay (d) Economic recovery tax

6.A sheet which shows the names of all workers and their take home pay is called a …………… (a)pay slip (b)pay advice (c) pay roll (d) voucher

7.Which of the following is a voluntary deduction from workers `salaries (a)income tax (b)rent for those living in government quarters (c) trade union dues (d)economic recovery tax

8.If stock records are to be fully effective, they must be:(a)kept up to date (b)posted once a week (c)posted weekly (d)signed monthly

 

STRATEGIES AND ACTIVITIES: 

Class Teacher and Pupils Activities. Interaction or Participation 

The topic is presented step by step

Step 1: The teacher revises the old topic by asking questions that are related to the previous topics as reminder.

Step 2: The teacher introduces the new topic by telling pupils any story that is related to good or bad office practices, He or she also narrates his or her experience in any of the Nigerian commercial banks

Step 3: The teacher allows the pupils to make their own contributions and gives room for pupils” participation by giving answers to their questions. The subject teacher also asks questions that are related to office practice.

 

ASSESSMENT (EVALUATION) 

 

Evaluation:

Write out short notes on each of the following

1. Stock requisition form

2. Stock card

3. Purchase requisition form

4. Delivery Note

5. Gate pass

6. Goods receipt note

7. Stock transfer note

8. Stocktaking form

1. What is the purpose of a stock requisition form?

2. Who is typically responsible for filling out a stock requisition form?

3. What is the purpose of a stock card?

4. Who is typically responsible for maintaining stock cards?

5. What is the purpose of a purchase requisition form?

6. Who is typically responsible for filling out a purchase requisition form?

7. What is the purpose of a delivery note?

8. Who is typically responsible for ensuring accuracy of a delivery note?

9. What is the purpose of a gate pass?

10. Who is typically responsible for obtaining a gate pass?

11. What is the purpose of a goods receipt note?

12. Who is typically responsible for ensuring accuracy of a goods receipt note?

13. What is the purpose of a stock transfer note?

14. Who is typically responsible for ensuring accuracy of a stock transfer note?

15. What is the purpose of a stocktaking form?

16. Who is typically responsible for filling out a stocktaking form?

WEEKEND ASSIGNMENT:

 

1. Which of the following is a stock requisition form?

a. A document that authorizes the transfer of goods from one location to another

b. A document used to request additional inventory from the storeroom

c. A document that tracks inventory levels and helps to identify when reordering is necessary

2. Which of the following is a stock card?

a. A document that authorizes the transfer of goods from one location to another

b. A document used to request additional inventory from the storeroom

c. A document that tracks inventory levels and helps to identify when reordering is necessary

3. Which of the following is a purchase requisition form?

a. A document used by a department to request the purchase of goods or services

b. A document used by a supplier to request payment for goods or services

c. A document used to track inventory levels and help to identify when reordering is necessary

4. Which of the following is a delivery note?

a. A document that authorizes the transfer of goods from one location to another

b. A document used to request additional inventory from the storeroom

c. A document that accompanies a shipment of goods and lists the contents and destination

5. Which of the following is a gate pass?

a. A document that authorizes the transfer of goods from one location to another

b. A document used to request additional inventory from the storeroom

c. A document that is required for vehicles and pedestrians entering a secured area

6. Which of the following is a goods receipt note?

a. A document that accompanies a shipment of goods and lists the contents and destination

b. A document used to request additional inventory from the storeroom

c. A document that is used to confirm receipt of goods and to record them in the inventory system

7. Which of the following is a stock transfer note?

a. A document that authorizes the transfer of goods from one location to another

b. A document used to request additional inventory from the storeroom

c. A document that is used to track inventory levels and help to identify when reordering is necessary

8. Which of the following is a stocktaking form?

a. A document used to request additional inventory from the storeroom

b. A document that lists the contents of a shipment of goods

c. A document that is used to count and record the levels of inventory on hand

 

WRAP-UP (CONCLUSION)

The subject teacher makes the necessary corrections which gives him or her the opportunity to reteach what has been taught before so that learners that did not understand in the first instance can have the opportunity of relearning the topic again.

He does the necessary marking, grading and corrections

ASSIGNMENT

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Office Equipment