Section 11Objective 1

Part 2

Methods of Payment

Methods of Payment• Methods of payment exchanges are between– Employers and employees for wages– Sellers and customers for goods and services for

cash or on credit– Creditors and buyers for goods and services for

cash or on credit

Methods of Payment• Payment to employees– This category includes payments for salaries,

wages and other forms of employees compensation

– Salaries are paid monthly, half yearly or yearly– Wages are paid weekly or fortnightly– Employees compensation are paid according to

the policies of the firm.

Methods of Payment

• Types of payments to employees– Payments include• Cash• Cheques• Electronic funds transfer (EFT)

– Direct Deposit

Methods of Payment

• Listen to the video on the next slide to gather information on employee wages and salaries

• You can search the web for other links that may give additional information on methods of payment to employees

• Video Go to: Understanding Employee Compensation - Video & Lesson Transcript ...https://www.study.com/academy/lesson/understanding-employee-compensation.html

Methods of Payment

• Payment for goods and services purchased or sold– This category include payment for or collections for

goods sold and services rendered in a firm– Goods sold and services purchased or rendered can

either be for cash or for credit transactions given to the customer

Methods of Payment• Types of payments for

goods purchased– Payments include

• Direct debit• Cash

• Electronic funds transfer and point of sale (EFTPOS)

• cheque• PayPal

• Standing order

Methods of Payment

• Types of payment for goods and services sold– Payments include

• Cash• Cheques• Direct deposits• Direct debit• PayPal• Standing order• Electronic funds transfer and point of sale (EFTPOS)

Methods of Payment• Payment to suppliers– This category include payments for goods and

services, for daily operating expenses excluding employee compensation, interest and income taxes

– These transactions can either be for cash or for on credit

Methods of Payment• Types of payment to suppliers– Payments include• Cash • Cheques• Electronic fund transfer and point of sale (EFTPOS)

Methods of Payment

New wave of method of payment – No cash

Look at the picture below, it is the new wave method of payment now hitting the streets.Go to:Look ma, no hands! Testing Google's Hands Free paymenthttps://www.youtube.com/watch?v=6tYX1sSlwSw

Methods of Payment

Methods of Payment• Activity• Look at the pictures on the next slides, and match

the appropriate methods of payment for each the following:– Employees– Goods and services– Suppliers

Methods of Payment

Methods of Payment

Methods of Payment

Methods of Payment