4. Have you ever had less daily turnover
than you thought and got confused?
• What is the
problem in
Karibu
restaurant?
• What should
the
restaurant
owner have
done to
5. Have you ever had quarrels with a customer
due to confusion of the remaining debt?
• What did
BARAKA
grocery
owner, Fatuma,
and the
customer
disagree
about?
• What should
Fatuma have
6. Have you ever met someone requesting
your business financials as a requirement?
• Do you think the
financial
institution gave
Fatuma a loan?
• What should
Fatuma have
done that
would have
helped her
get the loan?
7. WHY KEEP BUSINESS RECORDS?
Another reason is
that partners often
requires
bookkeeping
records.
In most businesses,
there are so many
transactions that
entrepreneurs cannot
remember all of them.
Written records of
business transactions
would help
entrepreneurs avoid
similar problems.
8. How is the current
bookkeping in your
businesses?
10. BOOKKEEPING
Where groups of
people work
together, lack of a
proper bookkeeping
system often leads
to mistrust and
accusations
between group
members.
Bookkeeping is
beneficial because
you cannot keep
every thing in your
head. People are
careless by nature
Bookkeeping means
that you write down
all the money that
comes into your
business and all the
money that goes
out of your
business.
Many people do not
write how much
money comes in and
how much money
goes out of their
businesses. This is
because they do not
know how to do it,
and they do not know
that it can improve
their businesses.
Therefore, people do
not exactly
understand how much
they earn, and how
much stock they have
bought.
11. Of what value is bookkeeping to your
business?
•You will know how much money you have received;
•You will know how much money you have spent and how
you have spent it;
•You can calculate whether you are making profit or loss;
•You will be able to make better decisions on what to buy
and sell;
•You can keep records of buying and selling on credit, so
that people can not trick you;
•You can keep money of records coming in and going out of
a group project and thus prevent abuse of funds and
avoid mistrust amongst group members.
13. The term “Sales” is
associated with the amount
of money coming in from
selling your products or
services.
The money you receive from
your customers in exchange
for your products.
They are basically recorded
regularly in a sales book.
Notice: Every and each coin
you receive has to be recorded
on the same date
14. Date Description Quantity Unit
price
Total
price
1. Date: This is the selling date not the date
you receives payment;
2. Items: Description of the product or
services sold;
3. Quantity: The total quantity or number
of items/services sold not the number of
paid items/services;
4. Unit price: This is the price of one item;
5. Total price: The total amount of the total
items sold;
6. Done by: Name of the person recording;
7. Approved by: The name of the business
owner/entrepreneur/yourself to have
checked what has been recorded.
Structure of a sales book
15. Exercise 1 on Hassan’s fruit business
Date
(Tarehe)
Description
(Maelezo)
Quantity
(Kiwango)
Unit price
(Bei ya Kila
Kimoja)
Total price
(Bei Jumla)
15.02.2019 Sold oranges (aliuza
oranges)
20 30 600
16.02.2019 Sold Avocado (aliuza
avocado)
15 60 900
16.02.2019 Sold mangos (aliuza mango) 38 40 1,520
19.02.2019 Sold apples (aliuza apples) 100 50 5000
TOTAL 8,020
Hassan runs a business of selling different kinds of fruits in Kakuma 2
since 2012. He is very known and has many regular and royal
customers, which has helped him create strong relationships with them.
By mid-February 2019 he had the following transactions:
15.02.2019: Sold 20 oranges by cash on 30KES per Orange;
16.02.2019: Sold 15 Avocados and 38 mangos on credit, unit price
60KES and 40KES respectively;
17.02.2019: Mary, a royal client to him, came and paid 1,000KES on a
previous debt taken;
19.02.2019: Sold 100 apples on 50KES each, half by cash and half on
credit.
Task: - Fill in the sales book of Hassan’s business;
- How much has he sold that week?.
16. Expense: is an amount of money
you incur when you go about doing
your work to provide the products
or services.
It is the money spent for operating
activities such as transport,
airtime, insurance, taxes, rent etc.
Purchases: This is the amount of goods
or raw materials that a business buys for
resale or for it’s use in the production of
goods
Records of purchases and
expenses amounts
Purchases and expenses are
recorded daily, in their particular
book.
17. • Date: The date on which purchases are
acquired and services consumed. Eg: a
consumed service but not yet paid is an
expense.
• Item: Description of the product acquired
or service consumed.
• Unit price: This is the price of one item;
• Total price: The total amount of the total
items sold;
• Done by: Name of the person recording;
• Approved by: The name of the business
owner/entrepreneur/yourself to have
checked what has been recorded.
Date Description Quantity Unit
price
Total
price
Structure of a purchase and
expenses book
18. Exercise 2 on Hassan’s fruit business
Date
(Tarehe)
Description
(Maelezo)
Quantity
(Kiwango)
Unit price
(Bei ya Kila Kimoja)
Total price
(Bei Jumla)
15.02.2019 Purchase of Bananas
(ununuzi wa ndizi)
30 30 900
15.02.2019 Transport of Bananas
(usafirishaji wa ndizi)
- - 150
15.02.2019 Purchased Mangos
(ununuzi wa maembe)
20 30 600
16.02.2019 Bought airtime
(ununuzi wa bamba)
- - 250
17.02.2019 Cleaning fee payment
(malipo ya usafi)
- - 200
18.02.2019 Rent payment (malipo
ya kodi ya nyumba)
- - 2,000
Total 4,100
Hassan runs a business of selling different kinds of fruits in Kakuma 2
since 2012. He is very known and has many regular and royal
customers, which has helped him create strong relationships with them.
By mid-February 2019 he had the following transactions:
15.02.2019: Bought 30 Bananas on credit, 30KES per Banana;
15.02.2019: Paid transport for the Bananas at 150KES;
15.02.2019: Bought 20 Mangos and paid 600KES;
16.02.2019: Bought airtime of 250KES to call his royal customers to
inform them that fresh Bananas and mangos
are available on a good price
17.02.2019: Paid 200KES for cleaning service;
18.02.2019: Paid rent of 2,000KES to Tom.
Task: - Fill in the book of purchase and expenses of Hassan’s
business
- How much did he spend that week?
19. Debtors are people or
businesses who owe you
money. Proper management
of your debtors will help you
get paid faster and prevent
bad debts. Prompt collection
of debtors' accounts will also
help you maintain a healthy
cash flow.
Note: Debtors are always
recorded regularly in a
specific book called the
debtors book
20. Structure of a debtor’s book
• Date: The date on which the date was given.
• Name and address off debtor: For the address, put
the telephone number
• Description: The product or service given to the
customer on credit.
• Amount: Amount of the debt;
• Agreed payment date: Always make sure you agree
with the customer on the deadline to pay;
• Actual payment date: The date you received the
payment
• Paid amount: The amount received;
• Remaining debt: Amount of money remaining to
the debt in case the customer paid a part pf it
• Signature: Always the customer has to sign that
he/she took the debt
• Done by: Name of the person recording;
• Approved by: The name of the business
owner/entrepreneur/yourself to have checked
what has been recorded.
Date Name and
address of
debtor
Description
of the debt
Amount
of the
money
Agreed date of
payment
Actual date of
payment
Paid
amount
Remaining
debt
signature
21. Exercise 3 on Hassan’s fruit business
Date Name and
address of
debtor
Description
of debt
Amount of
money
Agreed date
of payment
Actual date
of payment
Paid
amount
Remaining
debt
signature
15.02.2019 Okelo,
Kakuma 2
07290…….
Mangos 120 25.02.2019 Signed
16.02.2019 Atim Banana 16.02.2019 1,000 1,500 Signed
17.02.2019 Ahmed Apples 500 28.02.2019 Signed
John Avocado 18.02.2019 900 0 Signed
18.02.2019 John Avocado 240 02.03.2019 Signed
Hassan runs a business of selling different kinds of fruits in Kakuma 2
since 2012. He is very known and has many regular and royal
customers, which has helped him create strong relationships with them.
By mid-February 2019 he had the following transactions:
15.02.2019: Sold on credit 3 mangos, on 40KES per mango to Okelo and
payment date is 25.02.2019;
16. 02.2019: A customer (Atim) paid 1,000KES out of 2,500KES of the banana debt
previously taken;
17.02.2019: Sold on credit 10 apples to Ahmed, on 500KES to be paid on 28.02.2019;
18.02.2019: John came and paid 900KES total of the previous debt and bought
avocado on credit again worth 240KES to be paid on 02.03.2019;
Task: - Fill in the book of debtors of Hassan’s business;
- How much outstanding debt amount?
COMPARE THIS TO YOUR VERY OWN BUSINESSES
Do you have similar problems in your business?
Do you know of any other business that has had similar problems?
Were the problems solved?
How were they solved?