OFFICE ADMINISTRATION PAPER 2
STUDY GUIDE
End of Year Examination
HOW TO USE THIS STUDY GUIDE
This study guide covers all four main topics that will appear on your exam:
1. The Accounts Office
2. Meetings
3. Procurement and Inventory Management
4. Records Management System
Study Tips:
● Review each section thoroughly
● Practice the sample calculations
● Memorize key definitions and terms
● Create your own examples for each concept
● Study for 30-45 minutes per topic area
SECTION A: THE ACCOUNTS OFFICE
Key Definitions
Accounts Office: A department in an organization responsible for managing financial
records, preparing financial statements, and ensuring accurate financial reporting.
Double-Entry Bookkeeping: A system where every financial transaction is recorded in at
least two accounts, ensuring the accounting equation (Assets = Liabilities + Equity) remains
balanced.
Debit: An entry on the left side of an account that increases assets and expenses, or decreases
liabilities, equity, and income.
Credit: An entry on the right side of an account that increases liabilities, equity, and income,
or decreases assets and expenses.
Main Functions of an Accounts Office
1. Recording Financial Transactions - Maintaining accurate records of all business
transactions
2. Preparing Financial Statements - Creating income statements, balance sheets, and
cash flow statements
3. Managing Accounts Payable - Tracking money owed to suppliers and vendors
4. Managing Accounts Receivable - Tracking money owed by customers
5. Payroll Processing - Managing employee salaries and wages
6. Budget Preparation and Monitoring - Creating and tracking organizational budgets
7. Tax Compliance - Ensuring proper tax calculations and submissions
Financial Transaction Classification
Income/Revenue:
● Sales revenue
● Service fees
● Interest earned
● Rental income
Expenditure/Expenses:
● Office supplies
● Rent payments
● Salary payments
● Utility bills
● Equipment purchases (capital expenditure)
Advantages of Computerized Accounting Systems
1. Speed and Efficiency - Faster processing of transactions
2. Accuracy - Reduced human errors in calculations
3. Storage Capacity - Can store large amounts of data
4. Easy Retrieval - Quick access to financial information
5. Automatic Calculations - Built-in formulas reduce calculation errors
6. Security - Password protection and backup capabilities
Sample Calculation
Net Income = Total Revenue - Total Expenses
Example: Revenue $50,000 - Expenses $35,000 = Net Income $15,000
SECTION B: MEETINGS
Key Definitions
Meeting: A gathering of two or more people to discuss business matters, make decisions, or
share information.
Agenda: A list of topics to be discussed during a meeting, arranged in order of importance.
Minutes: A written record of what was discussed and decided during a meeting.
Quorum: The minimum number of members required to be present for a meeting to be valid.
Types of Meetings
Formal Meetings:
● Follow strict procedures and rules
● Have official agendas and minutes
● Examples: Board meetings, Annual General Meetings
● Characteristics: Structured, official notice required, formal language
Informal Meetings:
● Less structured and more casual
● May not have written agendas or minutes
● Examples: Team briefings, brainstorming sessions
● Characteristics: Flexible, spontaneous, conversational
Importance of Meetings
1. Communication - Share information and updates
2. Decision Making - Collaborate to make important decisions
3. Problem Solving - Discuss and resolve issues
4. Team Building - Strengthen working relationships
5. Planning - Coordinate future activities and projects
Essential Elements of a Notice of Meeting
1. Heading - "Notice of Meeting"
2. Date and Time - When the meeting will occur
3. Venue/Location - Where the meeting will be held
4. Purpose - Why the meeting is being called
5. Agenda Items - Topics to be discussed
6. Signature - Secretary or organizing authority
7. Date of Notice - When the notice was issued
Meeting Officials and Their Roles
Chairperson:
● Leads and controls the meeting
● Ensures agenda items are covered
● Maintains order and discipline
● Summarizes decisions made
Secretary:
● Prepares meeting notices and agendas
● Takes and distributes minutes
● Handles meeting correspondence
● Maintains meeting records
Qualities of an Effective Chairperson
1. Leadership Skills - Able to guide discussions effectively
2. Impartiality - Remains neutral and fair
3. Communication Skills - Speaks clearly and listens well
4. Time Management - Keeps meetings on schedule
5. Decision-Making Ability - Helps reach conclusions
6. Patience - Handles difficult situations calmly
SECTION C: PROCUREMENT AND INVENTORY
MANAGEMENT
Key Definitions
Procurement: The process of acquiring goods and services needed by an organization from
external suppliers.
Inventory: Stock of goods, materials, or supplies held by a business for future use or sale.
Stock Control: The process of managing inventory levels to ensure adequate supplies while
minimizing costs.
Lead Time: The time between placing an order and receiving the goods.
The Procurement Process (5 Steps)
1. Identify Need - Determine what goods/services are required
2. Prepare Purchase Requisition - Create formal request for items needed
3. Select Supplier - Choose appropriate vendor based on criteria
4. Issue Purchase Order - Send official order to selected supplier
5. Receive and Check Goods - Verify items received match the order
Key Procurement Documents
Purchase Requisition:
● Internal document requesting items
● Created by department needing goods
● Contains item details, quantities, and justification
Purchase Order:
● External document sent to supplier
● Contains detailed specifications and terms
● Becomes a legal contract when accepted
Inventory Management Calculations
Formula: Opening Stock + Purchases - Closing Stock = Stock Used
Example:
● Opening Stock: 500 units
● Purchases: 2,000 units
● Closing Stock: 300 units
● Stock Used: 500 + 2,000 - 300 = 2,200 units
Factors in Supplier Selection
1. Price - Competitive and reasonable costs
2. Quality - Meets required standards
3. Reliability - Consistent delivery and service
4. Location - Proximity for faster delivery
5. Reputation - Good track record in the market
6. Payment Terms - Favorable credit arrangements
Consequences of Poor Inventory Management
Overstocking:
● Increased storage costs
● Risk of obsolescence
● Tied up capital
Understocking:
● Production delays
● Lost sales opportunities
● Customer dissatisfaction
SECTION D: RECORDS MANAGEMENT SYSTEM
Key Definitions
Records Management System: An organized method of creating, storing, maintaining,
retrieving, and disposing of an organization's documents and information.
Filing: The process of arranging and storing documents in a systematic manner for easy
retrieval.
Record: Any document or information that provides evidence of business activities or
transactions.
Importance of Records Management
1. Legal Compliance - Meeting regulatory requirements
2. Decision Making - Providing information for business decisions
3. Historical Reference - Maintaining organizational memory
4. Efficiency - Quick access to needed information
5. Cost Control - Reducing storage and retrieval costs
6. Security - Protecting sensitive information
Types of Records by Usage
Active Records:
● Used frequently (daily/weekly)
● Kept in easily accessible locations
● Examples: Current customer files, ongoing projects
Semi-Active Records:
● Used occasionally (monthly/quarterly)
● Stored in less accessible areas
● Examples: Completed projects from current year
Inactive Records:
● Rarely used but must be retained
● Stored in archives or off-site
● Examples: Old tax records, expired contracts
Filing Methods
1. Alphabetical Filing:
● Arranged by alphabet (A-Z)
● Best for: Customer files, personnel records
● Advantages: Easy to understand, quick access for known names
2. Numerical Filing:
● Arranged by numbers (1, 2, 3...)
● Best for: Invoice files, case files
● Advantages: Unlimited expansion, confidential
3. Chronological Filing:
● Arranged by date order
● Best for: Correspondence, reports
● Advantages: Shows sequence of events
4. Subject Filing:
● Arranged by topic or subject
● Best for: Policy documents, research files
● Advantages: Groups related materials together
Electronic vs. Manual Filing
Electronic Filing Advantages:
● Space Saving - Reduces physical storage needs
● Quick Search - Instant keyword searching
● Multiple Access - Several people can access simultaneously
● Backup Capability - Easy to create copies
● Security Features - Password protection available
Manual Filing Advantages:
● No Technology Dependence - Works without electricity/computers
● Familiar System - Easy for all staff to understand
● Lower Initial Cost - No expensive equipment needed
Security Measures for Records
● Password Protection - Control access to electronic files
● Locked Filing Cabinets - Secure physical documents
● Access Logs - Track who views sensitive records
● Backup Systems - Prevent data loss
● Confidentiality Agreements - Staff agreements to protect information
EXAM PREPARATION CHECKLIST
Week Before Exam:
● [ ] Review all sections of this study guide
● [ ] Practice sample calculations
● [ ] Memorize key definitions
● [ ] Create summary notes for each topic
Day Before Exam:
● [ ] Quick review of key terms
● [ ] Practice writing sample agenda and notice
● [ ] Review calculation formulas
● [ ] Get good night's sleep
Day of Exam:
● [ ] Arrive early
● [ ] Bring required materials (pen, calculator if allowed)
● [ ] Read all questions carefully
● [ ] Manage time (30 minutes per section)
● [ ] Show all working for calculations
SAMPLE PRACTICE QUESTIONS
Try these on your own:
1. Calculate net income: Revenue $75,000, Expenses $52,000
2. List 5 functions of an accounts office
3. Write a notice for a meeting about organizing a school fundraiser
4. Calculate stock used: Opening 300, Purchases 1,500, Closing 200
5. Name 4 filing methods and give an example for each
Remember: Understanding concepts is more important than memorizing. Make sure you can
explain ideas in your own words and apply them to real situations.
GOOD LUCK WITH YOUR EXAM!
