Page 18 - Book-keeping for Secondary Schools Student’s Book Form One
P. 18
Book-Keeping for Secondary Schools
(xx) Business: This refers to any legal (xxiv) Services: These are activities
activity undertaken with the aim performed by the enterprise in the
of achieving a particular objective, course of business that does not
such as making profits, and reaching involve itself in selling physical
a targeted service level. Examples goods. Examples of services
FOR ONLINE READING ONLY
of business include farming, a offered by different enterprises
restaurant, a salon and a kiosk. are hairdressing, drama shows,
advertising and training. It should
(xxi) Capital: It is the amount of money be noted that some businesses deal
or money’s worth provided by the with both goods and services.
owner to start an enterprise or to (xxv) Profit: Result achieved by the
expand it. The money contributed business when revenues are greater
by the owner can be used to finance than expenses for a particular period
business operations or grow and or activity. In other words, profit is
expand the business. the excess of revenue over expenses
(xxii) A sole proprietor: A sole proprietor for a particular period or activity.
is the owner of the enterprise (xxvi) Loss: A business is said to make
who provides capital to start or loss when expenses are greater than
expand the enterprise alone. The revenues for a particular period or
sole proprietorship is the form of activity. A loss is not desired by any
business enterprises that is owned enterprise because it reduces the
by one person. In most cases, sole amount of capital of such enterprise.
proprietorship is a family business
and is the easiest type of business (xxvii) Transaction: A transaction is a
to establish and operate because business event that has monetary
it is not highly regulated by the impact on business financial
government. statements, and is recorded as an
entry in the business’ accounting
(xxiii) Goods: These are items bought and records. It also refers to the
sold by the proprietor and they have movement of money or money’s
the characteristics of being seen worth between two or more parties.
and touched. Goods are sold by For example, Juma paid Paula TZS
business people to satisfy the needs 20,000 to buy a pair of shoes. This
of customers. Examples of goods is a transaction because TZS 20,000
include pens and exercise books have been transferred from Juma to
for a stationeries business, food for Paula and at the same time, the pair
restaurant business and cement for
a hardware business. of shoes has been transferred from
Paula to Juma.
10
Student’s Book Form One
Book Keeping Form 1 New 2024 FINAL.indd 10 18/10/2024 10:14
