Stage 5 Commerce
Students learn about:
 Methods of payment.
◦ Cash, credit, cheque, direct debit, lay-by, electronic
funds transfer, book up.
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Methods of keeping records.
Changes over time and the impact of
technology.
Students learn to:
 Identify the criteria that should be considered when
determining methods of payment for different suppliers.
 Research the criteria to determine the most appropriate
methods of payment in a range of contexts.
 Identify the advantages and disadvantages of book up.
 Propose options that could be taken to improve financial
services available to Aboriginal and Torres Strait Islander
peoples and remote communities.
 Develop and use spreadsheets and databases to maintain
effective records and monitor monthly transactions
including running totals of cash, direct debit and credit
purchases.
 Identify how technology has impacted on the payment
process of businesses and consumers.

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Cash – money in coins and notes
Credit – money loaned at a point in time to complete a
purchase with the intention it is paid back with interest or
extra fees.
Direct debit –A prescribed amount of money taken directly
from your bank account on a regular schedule to pay
another company or bank account
Lay-by – a service that allows you to
purchase goods when you do not have
the money to buy them upfront.
Electronic funds transfer – (EFPTOS) all types of financial
transactions that are carried out electronically.


Cash
Advantages
Disadvantages
Immediate payment is
possible
A bulky way to pay for
expensive things
All shops accept
Not very secure
Credit
Advantages
Disadvantages
Money stays in the bank
earning interest until you
pay your bill.
Easy to overspend and
get caught in a ‘debt
trap’
Safer. Can be cancelled if
lost.
Can have high interest so
should be used with
caution


Cheques
Advantages
Disadvantages
Convenient and easy to
use.
Some retailers do not
accept.
Added security – can be
stopped when lost.
When deposited into an
account you need to wait
for it to be cleared.
Direct debits
Advantages
Disadvantages
A convenient way to pay
for household services.
You need to have
sufficient funds in your
account to cover.
Can be paid regularly
automatically.
Amounts paid may not
always be the same.

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Lay-by
Advantages
Disadvantages
No interest charges.
Buy goods not needed.
Protects you against
future increases in the
price of the product.
Good must stay in the
store until full payment
has been made.
Electronic funds transfer
Advantages
Disadvantages
Cash free so minimises
security concerns.
Significant increases in
fraud cases recently.
Widely accepted.
Allows personal
information to be passed
onto others.
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Use the ASIC booklet on book up or go to
www.fido.asic.gov.au . Click on ‘Financial Tips’,
then ‘Loans and Credit’.
Research to what “book up” is and where it is
practiced
Discuss its ethical and legal
implications.
Buying a newspaper
 Paying for a haircut
 Paying the monthly electricity bill
 Purchasing a formal dress
 Paying for a car
 Buying groceries
 Paying your bus fare
 Paying off a mortgage
(housing loan) or personal loan.

Read the yellow
box.
Brainstorm and
develop a mind
map showing
measures that
could be used
by industry,
government
and indigenous
organisations
to improve the
banking
services
available to
these people in
remote areas.
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Compare the amounts on withdrawals, cheques and deposits with
the amounts on your receipts or cheque butts. Check off all
canceled cheques and deposits.
Insert the last balance shown on your bank statement
Add deposits.
Deduct all cheques and withdrawals.
Your adjusted balance should agree with the balance in your record
book. If it doesn’t check your addition and subtraction, then check to
be sure you have entered all the numbers correctly.
Date
Detail
s
28/09/04
O/Bal
01/10/04
Deposit
s
Wdls
405.93
590.93
03/10/04
298.64
07/10/04
100.00
12/10/04
154.00
15/10/04
58.90
17/10/04
230.00
21/10/04
127.80
23/10/04
450.00
26/10/04
240.00
27/10/04
127.80
28/10/04
45.75
29/10/04
24.30
30/10/04
C/Bal
Balance

There are several financial statements that
are normally prepared by businesses. The
most common ones are:
◦ The profit and loss statement
◦ The balance sheet.
◦ The cash flow statement
The profit and loss statement
tells owners the difference
between revenue (income)
and expenses for a period
of time and whether they
have made a profit or loss.
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The balance sheet is like a set of scales that
weighs the assets on one side and liabilities
and owner’s equity on the other. Owner’s
equity is basically what the business owes its
owners.
A cash flow statement
summarise the details
contained in a cash book.
It summarises the inflows
(income or deposits) and
outflows (cheques or
withdrawals) during a
period of time. This when
added to the bank balance
at the start of the period
enables the bank balance
at the end of the period
to be determined.

Cash Receipts
Less Cash Payments
= Cash surplus (deficit)
Add Bank Balance (start of period)
= Bank Balance (end of period)
Date
Item
Amount $
April 1
Received cash from Joe Blow
40
April 3
Paid electricity bill
200
April 4
Received cash from Y Xeric
20
April 5
Received cash from L Montague
80
Paid wages to G Jones
250
April 6
Received donation from A Smith
100
April 7
Paid Telstra (phone bill)
350
April 8
Received payment from A Sims
450
April 9
Received cash from L Hewitt
400
April 10
Paid Energy Australia (Electricity bill)
50
April 13
Received cash from M Forces
200
April 14
Paid Telstra (phone bill)
80
April 25
Received donation from J Walker
100
April 26
Paid wages to G Jones
250


Definition – an estimate of income and
expenses for a set period of time.
Reasons for making a budget
◦ To track money when you are working to a plan.
◦ To work out how to best use the money you earn.
◦ To plan for your changing needs and wants.
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Go to
https://www.moneysmart.gov.au/managingyour-money/budgeting/how-to-do-abudget
Use the budget-planner document on SIMB to
help plan out a budget for your household
You can start in class and finish for
homework
Using the steps below and other relevant internet sites, develop a brochure for teenagers on the
steps in budgeting.
1.
Determine money coming in (income).
1.
Work out your fixed and variable expenses.
1.
Write down your weekly cash flow.
1.
Work out how much you can save.
1.
Identify how to cut back.
1.
Develop a cost benefit analysis to work out how to save for new wants.
1.
Shop around to find the best deal for the goods and services you need and want.
1.
Choose a suitable bank account.
1.
Learn how to record your pay slip.
1.
Decide how to keep records.
1.
Develop a weekly, monthly and annual budget.
1.
Monitor and change your budget at least once a month.
Activity
Describe how a selfcheckout works.
Outline the advantages
and disadvantages of selfcheckout supermarkets.

Technology in retailing and payment options is
continually developing and changing. Recent
developments include:
◦
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Online and internet shopping
EFTPOS and debit and credit cards
Smart cards
Self-checkout supermarkets
Activities
1. Develop a collage in word of recent technological
developments in retailing.
2. Use Microsoft publisher or word to create a newspaper
article titled ‘Shopping in 2050’. Include words and
illustrations.