Grade 8 Pre-technical studies rationalised notes

Description

STRAND 5- ENTERPRENEURSHIP

5.1 – Bookkeeping.

 Book keeping -This is the practice of recording and tracking on a regular basis the financial transactions of a business.

 It is done to keep records of a business which can be used anytime in decision making.Importance of Book keeping in entrepreneurship.

✓ Making accurate budgeting possible.

✓ Book keeping provides important information that helps in

✓ Helps an entrepreneur prepare for taxes.

✓ Book keeping maintain organized records in a business.

✓ It also enables proper reporting to investors, aiding in setting and monitoring business goals, ensuring compliance with government regulations.

✓ Book keeping reveals the financial status of a business.Classifying business transactions in entrepreneurship.Business transactions in entrepreneurship can be classified as:

 Cash transactions.

 Credit transactions.Cash transaction- is a transaction where payment is settled immediately.Credit transaction is a transaction in which payment is settled or done at a later date as agreed by the parties.Advantages of cash transaction.

 It is simple and faster. Use of cash transactions makes………