Account-8 Final 2077

Readmore OFFICE MANAGEMENT AND ACCOUNTANCY 8GRADE Authors Jaya Ram Khanal Dopindra Kumar Basnet

Published by TU Road, Kuleshwor, Kathmandu, Nepal. Phone: 4672071, 5187211, 5187226 Fax: 00977-1-4672073 E-mail: [email protected] www.readmorenp.com © Copyright Copyright jointly held by the authors and publisher First Edition : 2072 BS (2015) Revised Edition : 2075 BS (2018) Reprint : 2076 BS (2019) Reprint : 2077 BS (2020) No part of this book may be reproduced or transmitted by any means, electronic, photocopying, recording, or otherwise, without prior written permission of the publisher. Any breach of this condition will entail legal action and prosecution. Authors Jaya Ram Khanal Dopindra Kumar Basnet Layout Readmore Desktop Printed in Nepal You can exchange this book from your nearest book shop if any binding errors are found. Read to help others read ! We are pleased to inform that certain amount from each book will be allocated to Charity Fund. The fund will be provided to the deserving and needy students all over Nepal. The charity always welcomes co-operation and support from all the well wishers and agencies.

Preface It is a great pleasure for us to serve this revised edition of textbook \"Office Management and Accountancy\" for English medium students of basic level grade eight. This book has been designed and written according to the requirement of student focusing on the foundation of secondary education on the related subject. It fulfils the present competitive requirement of all the readers who keep concern on the subject. This book has the following salient features:  The subject matter has been presented in simple and lucid manner that suits to the level of students.  Every chapter begins with some “Learning objectives”, which students should be able to achieve on the completion of that chapter.  Every chapter provides the “Key terms” with their meaning that help students to understand the text clearly.  Every chapter includes the “Definitions” given by the eminent authors and a key definition of the topic that help students to explain the matter in their own words.  Important points, recent information and summary of the matter have been presented separately under the title “Short Notes to Remember (SNR)” that help students to understand the text at glance and gain further knowledge.  Well designed “Illustrations” have been incorporated in sequential order covering both the theoretical and practical aspect.  Each practical chapter provides “Review illustrations” that provide depth knowledge on practical aspects.  \"Memory Tips\" section is given in the chapter whereever necessary that helps to remember the points easily for explanation of theoretical answer.  “Practical problems” have been designed and arranged in a friendly manner so that students can solve any type of practical problems t asked in the examination.  Five different sets of \"Model questions\" have been included at the end of book to make students able to solve the questions asked in examination and make familier with upper level examination. We would like to inform that the series is an outcome of our long experience and the assembled ideas of various subject teachers. We hope that it may be an alternative material on accounting for students and teachers who are really in search of a friendly book for teaching and learning purpose. We express our deep gratitude to all the authors whose materials have been consulted as a reference. Lastly, we would like to be grateful towards Readmore Publishers & Distributors for its appreciated job of publishing and distributing the book on time. We promise to acknowledge any advice and suggestion for the revision of the textbook. Authors

Chapter CONTENTS Chapter 1 OFFICE AND OFFICE PERSONNEL 9-22 Concept and definition of office......................................................................................10 Features of office ..............................................................................................................10 Importance of office .........................................................................................................12 Functions of office ............................................................................................................13 Formation of office............................................................................................................15 Permanent office........................................................................................................15 Temporary office........................................................................................................15 Types of office....................................................................................................................16 Government office.....................................................................................................16 Business office ...........................................................................................................16 Service motive office.................................................................................................17 Concept and definition of office personnel...................................................................17 Types of office personnel .................................................................................................18 Office chief .................................................................................................................18 Section officer ............................................................................................................18 Office assistant ..........................................................................................................19 Functions and duties of office assistant .........................................................19 Theoretical questions .......................................................................................................22 2 OFFICE RESOURCES 23-36 Concept and definition .................................................................................................... 24 Necessity of office resources............................................................................................ 24 Types of office resources ................................................................................................. 25 Manpower ................................................................................................................. 26 Administrative manpower ..................................................................... 26 Technical manpower ................................................................................ 26 Finance/Source of income ...................................................................................... 26 Communication ........................................................................................................ 27 Importance of communication........................................................................ 28 Means of communication................................................................................. 28 Telephone................................................................................................... 29 Fax............................................................................................................... 29 E-mail (Electronic mail)............................................................................ 29 Internet ...................................................................................................... 30 Transportation ........................................................................................................... 30 Means of transportation .................................................................................. 31 Land transportation ................................................................................. 31 Water transportation................................................................................. 31 Air transportation .................................................................................... 31 Materials and supplies ............................................................................................. 32 Theoretical questions ....................................................................................................... 34

Chapter 3 CORRESPONDENCE 37-44 Concept and definition ....................................................................................................36 Need and importance of correspondence ....................................................................36 Qualities of a good letter .................................................................................................38 Types of letter on the basis of use or objective .............................................................39 Government letter .................................................................................................... 39 Business letter ........................................................................................................... 39 Application letter ...................................................................................................... 40 Personal letter............................................................................................................ 40 Handling of mail .............................................................................................................. 41 Handling of incoming mail ..................................................................................... 41 Handling of outgoing mail ...................................................................................... 42 Theoretical questions ....................................................................................................... 44 Chapter 4 POSTAL SERVICE 45-52 Chapter Concept and definition .................................................................................................... 46 Development of postal service in Nepal........................................................................ 46 Methods of sending letter through post office ............................................................. 48 Ordinary letter .......................................................................................................... 48 Registered letter ........................................................................................................ 48 Aerogramme.............................................................................................................. 50 Post card...................................................................................................................... 48 Difference between ordinary letter and registered letter............................................ 50 Electronic communication service ................................................................................. 51 Theoretical questions ....................................................................................................... 52 5 CONCEPT OF BANK AND INSURANCE 53-62 Concept and definition of bank...................................................................................... 54 Types of bank .................................................................................................................... 54 Central bank .............................................................................................................. 55 Commercial bank ..................................................................................................... 56 Development bank ................................................................................................... 57 Concept and definition of insurance.............................................................................. 57 Parties involved in insurance contract .......................................................................... 58 Types of insurance ........................................................................................................... 58 Life insurance............................................................................................................. 59 Non-life or general insurance ................................................................................. 59 Fire insurance .................................................................................................... 59 Marine insurance .............................................................................................. 60 Miscellaneous insurance .................................................................................. 60 Importance or advantages of insurance........................................................................ 61 Theoretical questions ....................................................................................................... 62

Chapter 6 CONCEPT OF TAXATION 63-66 Chapter Concept and definition ....................................................................................................64 Importance or advantages of tax ...................................................................................64 Types of tax .......................................................................................................................65 Theoretical questions .......................................................................................................66 7 INTRODUCTION TO BUSINESS 67-76 Chapter Concept and definition .................................................................................................... 68 Features of business.......................................................................................................... 68 Importance of business.................................................................................................... 70 Forms of business organization ..................................................................................... 71 Sole trading concern.................................................................................................. 72 Partnership firm ........................................................................................................ 72 Joint stock company ................................................................................................. 73 Public enterprise ....................................................................................................... 74 Cooperative organization ........................................................................................ 74 Multinational company ........................................................................................... 75 Theoretical questions ....................................................................................................... 76 8 ACCOUNTING 77-88 Concept and definition .................................................................................................... 78 Objectives of accounting.................................................................................................. 78 Accounting terminologies ............................................................................................... 78 Accounting system ........................................................................................................... 81 Concept and definition of single entry system .................................................... 81 Features of single entry system....................................................................... 82 Advantages of single entry system................................................................. 82 Disadvantages of single entry system ........................................................... 83 Concept and definition of double entry system ................................................... 83 Objectives of double entry system ................................................................. 85 Features of double entry system .................................................................... 85 Advantages of double entry system .............................................................. 86 Disadvantages of double entry system ......................................................... 87 Differences between single entry system and double entry system.......................... 87 Theoretical questions ....................................................................................................... 88

Chapter 9 FILING AND INDEXING 89-98 Chapter Concept and definition of filing...................................................................................... 90 Need and importance of filing ....................................................................................... 90 Methods of filing............................................................................................................... 91 Alphabetical filing .................................................................................................... 91 Rules for making order of name in the folder............................................... 91 Advantages of alphabetical filing ................................................................... 92 Disadvantages of alphabetical filing .............................................................. 93 Numerical filing......................................................................................................... 93 Advantages of numerical filing ...................................................................... 93 Disadvantages of numerical filing .................................................................. 94 Subjective filing ......................................................................................................... 94 Advantages of subjective filing........................................................................ 94 Disadvantages of subjective filing................................................................... 95 Geographical filing ................................................................................................... 95 Advantages of geographical filing ................................................................. 96 Disadvantages of geographical filing ............................................................ 96 Concept and definition of indexing................................................................................ 96 Usefullness of indexing ................................................................................................... 97 Theoretical questions ....................................................................................................... 98 10 JOURNAL 99-120 Concept and definition .................................................................................................. 100 Specimen of journal ....................................................................................................... 100 Importance of journal .................................................................................................... 101 Steps of journalizing ...................................................................................................... 101 Rules of debit and credit ............................................................................................... 102 Traditional approach............................................................................................... 102 Personal account.............................................................................................. 102 Real account ..................................................................................................... 102 Nominal account.............................................................................................. 103 Modern approach ................................................................................................... 103 Preparation of journal entries........................................................................................ 104 Commencement of business ................................................................................. 104 Deposit and withdrawal of cash .......................................................................... 105 Purchase and purchase return .............................................................................. 106 Sales and sales return ............................................................................................. 107 Buying and selling of assets .................................................................................. 109 Expenses and income.............................................................................................. 109

Partial receipt and partial payment........................................................................................................... 110 Drawing .........................................................................................................................................................111 Review illustrations............................................................................................................................................. 112 Theoretical questions .......................................................................................................................................... 116 Practical problems................................................................................................................................................ 116 Chapter 11 LEDGER 121-136 Concept and definition ....................................................................................................................................... 122 Specimen of ledger account ............................................................................................................................... 122 Importance of ledger .......................................................................................................................................... 122 Differences between journal and ledger .......................................................................................................... 123 Rules of posting the transactions into ledger accounts.................................................................................. 124 Balancing and closing the ledger accounts...................................................................................................... 127 Meaning of debit and credit balance ................................................................................................................ 127 Review illustrations............................................................................................................................................. 130 Theoretical questions .......................................................................................................................................... 133 Practical problems ............................................................................................................................................... 134 Chapter 12 TRIAL BALANCE 137-154 Concept and definition ....................................................................................................................................... 138 Objectives of preparing a trial balance ............................................................................................................. 138 Advantages of a trial balance............................................................................................................................. 139 Specimen of a trial balance ................................................................................................................................ 139 Procedures for preparing a trial balance ......................................................................................................... 140 Preparation of trial balance from the given ledger balances ........................................................................ 143 Suspense account ................................................................................................................................................ 146 Review illustrations............................................................................................................................................. 147 Theoretical questions .......................................................................................................................................... 151 Practical problems................................................................................................................................................ 152 BLE Model Questions Sets 155-158 Bibliography 159-160

1 OFFICE AND OFFICE Chapter PERSONNEL Learning Objectives After studying this chapter, the readers will be able to :  define office and office personnel,  explain the basic features of office,  mention the importance of office,  describe the different functions of office,  explain about the formation of office,  classify and introduce the different types of office,  classify the office personnel on the basis of level and position,  introduce the types of office personnel, with their roles in office. Introduction There are different types of organizations established for different objectives. In order to achieve the objective, an organization has to perform various jobs. Some of the jobs are of regular nature whereas some others are of occasional nature. The jobs may be related to administrative matter and technical matter depending upon the nature of organization. Whatever the nature and matter of jobs, they should be performed efficiently and smoothly. Such jobs are known as managerial and administrative functions. Planning, policy making, decision making, coordinating, controlling, communicating, organizing, directing, etc are the main managerial functions of every organization. For efficient performance of all those functions, arrangement and mobilization of various resources is also essential etc. Hence, an organization requires a certain place to perform all the functions which is known as office. Office may be of different types as per the nature and type of organizations. The organization requires different types of resources to perform the different administrative and technical functions. Such resources include manpower, finance, means of communication, means of transportation, materials and supplies. Out of all the resources needed, manpower or human resource is the most important one. It plays an important role for the efficient mobilisation of other resources. An efficient and qualified human resources can arrange and utilise the various resources and support for the attainment of organizational goal. Hence, the success of any organization largely depends upon the qualification, skill and efficiency of office personnel such as office chief, chief of the branch and office assistant. Office And Office Personnel 9

Concept and definition In simple sense, an office is a physical place for carrying out various paper and clerical works. But in broad sense, office is not only a physical place but also an administrative centre of the organization that organizes the various functions. Such functions include planing, policy making, directing, controlling, coordinating, decision making etc. It is the central part of every organization like school, college, bank, insurance company etc. It carries out various regular and incidental jobs of technical and administrative nature. Following are the major definitions of office: “An office is the place where the control mechanisms for an enterprise are located, where records are initiated for communication, control and efficient operation of the enterprises.” George R. Terry “Office work is concerned primarily with the records of the enterprise, making, using records and preserving them for future reference” Lefingwell and Robinson “An office is the seat, not only for administrative activities which determines the policy of the whole business, but also of the principal executive whereby that policy is carried into effect.” James Stephenson On the basis of above explanation and definitions, it can be concluded that the office is the focal point of every organization. It makes an effective co-ordination among various jobs and working units of an organization. It performs the various regular and occasional jobs to attain the common goal. It formulates the plan and policy and brings into effect by doing various paper and clerical jobs relating to planning, policy making, directing, controlling etc. Office is an administrative centre of an organization which is established to perform the various regular and incidental jobs in a coordinated and efficient manner to achieve the predetermined goal. Short Notes to Remember (SNR 1.1)  The word ‘office’ means Karyalaya in Nepali which consists of two words i.e. ‘Karya’ and ‘Aalaya’. The word ‘Karya’ means function and ‘Aalaya’ means the place. Thus, Karyalaya means job performing place in English.  Traditionally, office was considered just as the physical place, but nowadays, the office is more associated with the functions rather than the physical place.  The nature of office depends on the nature of an organization. Features of office Generally, an office has the following features: a. Central part of an organization The office is the central part or heart of every organization. It identifies and manages all the activities to be performed in an organization. It formulates the 10 Office Management and Accountancy

plan and policies, makes rules and regulations, brings them into action and controls all those activities in a coordinated and efficient manner. b. Division of work Every organization has to carry out a number Memory Tips of jobs. All the jobs are not of same nature. Some jobs may be related to technical matter  Central part of an organization whereas others may be concerned with the  Division of work administrative matter. All the jobs cannot be  Creation of different posts done by a single person. Furthermore, a single  Arrangement of physical resources person may not be expert to do all the jobs.  Management of the jobs  Supervision and control Due to these reasons, the varieties of jobs are divided among a number of staffs. They are given the particular job based on their qualification, skill, knowledge, experience and the area of interest. c. Creation of different posts The office has to perform a number of regular and incidental jobs. Some jobs may be of top level whereas others can be performed by having general knowledge. All the staffs appointed in an office for performing different jobs do not hold the same position. Thus, the office creates different posts and positions for staffs. It appoints officers at the higher level and other assistants at the lower level. The creation of posts and placement of staffs make them more responsible towards their job. d. Arrangement of physical resources The office arranges various physical resources in an organization required to perform the various jobs. Such physical resources include finance, materials, means of communication etc. The various physical resources facilitate to complete the official jobs in time. e. Management of the jobs The office is treated as the managerial centre of an organization. It formulates the plans and policies, coordinates among jobs, staffs and outsiders as well as implements them for achieving the common goal. It directs controls and evaluates the jobs done by other staffs. All these activities come under the management. f. Supervision and control The organization is the teamwork of the staffs. All the jobs should be completed by all the staffs in time. If the staffs do not feel their responsibility and make delay in doing any job, it results into a great loss to the organization. So, the jobs done by its staffs should be properly examined to ensure the timely and accurate performance which is called supervision. An office also has to control its physical properties in a proper manner to ensure their safety and perform the job qualitatively. The function of supervision and control in an office is done by the concerned authority. Office And Office Personnel 11

Importance of office Office is needed for all kinds of organizations whether they are small or big, government or private, service oriented or profit oriented. Without office, we cannot imagine the survival of any organization. It means where there is an organization, there is an office. It is as important to the organization as the main spring to watch and heart and brain to the human body. No organization can function and run without office. Thus, the importance of office to the organization can be explained under the following points: a. Planning and implementation centre Memory Tips The office formulates the plan and policy for the  Planning and implementation centre organization. A plan is the systematic schedule  Information centre of the jobs to be done in future. Without plan,  Record centre it creates confusion as to who will do the job,  Service centre how the job will be done and when are the  Communication centre jobs to be done. It also implements the plan  Public relation centre formulated with the help of other resources.  Coordinating and controlling centre Thus, the office is treated as the centre for  Proof of existence formulating plan and its implementation.  Resource mobilization centre b. Information centre Information is anything that gives idea for successful completion of jobs and proper decision making. An office collects the different types of information from internal and external sources. It records, analyses and supplies the useful information to various users. The parties like departments, customers, suppliers, government, other organizations and researchers may be the users of such information. Thus, the office is also treated as the information desk of the organization. c. Record centre The office is treated as the memory house of information. All the information is collected, analyzed and recorded in an office. Such records may be useful for future reference and thus they are preserved in the form of documents, books of account, files and other electronic devices like computer disk. It provides such recorded information to the management. d. Service centre The office is also treated as the service centre of the organization. It serves the departments of the organization and outsiders as well. It provides necessary resources to the personnel to perform jobs and increase their efficiency. It also provides various services to the outsiders who are associated with the organization. e. Communication centre The office is also a centre for making communication. It communicates to the different parties of the organization through different means. Thus, it is also known as a channel of communication. 12 Office Management and Accountancy

f. Public relation centre Public means the general people and outsiders associated with the organization. The office maintains a good relationship with public for smooth functioning of an organization. It helps the organization to earn goodwill and prestige. Thus, as a public relation centre too, office is more important. g. Coordinating and controlling centre The office is also called the coordinating and controlling centre of an organization. It maintains the effective coordination among the staffs of various departments to achieve the common goal. It supplies the valuable information regarding plan, policy, working system and procedure etc. It also coordinates with outsiders to get support from them in various conditions. It controls the various activities of an organization by setting standard and evaluating the actual results. It also takes the remedial measures for better performance in case of finding difference, if any in the future. h. Proof of existence The office is the identity or proof of the existence of every organization. It determines that whether the organization is functioning or not. The office of an organization recognizes that it is surviving and operating its activities smoothly. Therefore, the office is a must for the organizations which do not have their physical products. The organization rendering service rather than physical goods like bank, insurance company, social club, hospital, school etc. also need office for day to day operation. i. Resource mobilization centre In an organization, various resources are needed to perform the jobs and achieve long term goal. Such resources include human resources, financial resources and other physical resources. All those resources are arranged and mobilized by the office. Thus, for proper utilization of official resources, the office is important. Functions of office The functions to be performed by different organizations may vary according to their nature. But all types of office should perform some common functions. Such functions can be explained under the following points: a. Planning and implementation The major function of office is to formulate plans and policies of the organization and implement them. Considering the availability of resources, the office can formulate the future plans and policies to perform the jobs and achieve the targeted goal. Office And Office Personnel 13

b. Collecting and recording information The office collects the different information Memory Tips from internal and external sources. The information collected in the form of letter,  Planning and implementation notice, report, bill, e-mail, website and  Collecting and recording information telephone call are recorded in the office  Processing and arranging information for future reference. This function helps  Supplying information for processing, arranging and supplying  Filing information.  Maintaining public relation  Recording financial activities c. Processing and arranging information  Handling correspondence  Buying and safeguarding assets All the information collected by an office may be in the raw form and cannot be used in the same. Thus, an office processes and analyses such information in systematic manner to make them meaningful and usable. According to the nature of information, the office classifies them and arranges in the form of statement, report, summary or chart and avoids the unnecessary one. d. Supplying information After processing and arranging the information, they are supplied by the office to various internal and external users. Internal user means the managerial body which requires information for decision making and other purpose. The external users are the general people, government, shareholders and other concerned persons or parties. They use such information for evaluating the official activities. e. Filing Filing is the act of keeping official records and documents for future reference. After the collection and classification of such records, they should be preserved systematically using proper system. It can be done under alphabetical, numerical, subjective or geographical method. Thus, it is also one of the major functions of office. f. Maintaining public relation The success of every organization largely depends on the support of public. Public refers to the general people, customers, suppliers, visitors and other associated parties. So, the office always maintains a good relationship with such parties. A good public relation always helps the organization to earn goodwill and prestige in the society. g. Recording financial activities An organization makes expenditure on various heads and collects income through different sources. Such incomes and expenditures are recorded by the office in systematic manner by applying financial rules and provisions. 14 Office Management and Accountancy

h. Handling correspondence The office also performs the function of handling correspondence. Correspondence means to perform the communication in written form. The office frequently receives letter from outsiders and sends reply of those letters in proper time considering their importance. i. Buying and safeguarding assets Another important function of office is to buy the various assets and safeguard them. The office purchases various assets like building, furniture, machinery etc. and protects them from fire, rain, theft and other possible damages. It also protects the various legal records and documents from possible risk, damage and losses that may take place due to any cause. Formation of office Formation of office means its establishment on a certain way. Office can be established or set up on the basis of nature of jobs to be performed or the objective to be achieved. Some offices can continue their jobs for unlimited period and some are established only for certain duration or until the completion of a particular job. Thus, offices are formed in the following two ways: Figure: 1.1 Formation of office Formation of office Permanent office Temporary office Permanent office Those offices which are formed to perform the jobs regularly for unlimited or long term period are called permanent office. The organizations having perpetual existence establish these types of office. These offices are also called long term offices. The offices of ministries, departments, corporations and other government owned organizations are some examples of permanent office. Temporary office Those offices which are established only for a certain period or until the completion of a particular job are known as temporary offices. Such types of office are immediately dissolved after attainment of goal or completion of job. These types of offices are also called short term offices. Office established at the time of holding election, conducting an eye camp, organizing games and sports etc are the examples of temporary offices. Office And Office Personnel 15

Types of office Offices can be classified on different bases. On the basis of service, ownership or motive, offices can be classified into the following three groups: Figure: 1.2 Types of office Types of office Government office Business office Service motive office Government office Those offices which are established by the government to provide basic services to the general people are called government offices. All the ministries, departments and other offices of the government of Nepal are some examples of these types of office. The main objectives of government offices are as follows:  To formulate plans and policies and implement them.  To create good environment for overall development of the country.  To save the country from internal and external attack and violent activities.  To arrange the financial resources for the government.  To fulfill th e basic requirements of the people regarding education, health and other related matters. The offices which are established and run with the investment, management and controlling of the government in order to provide basic services to the public are called government offices. Business office Those offices which are established to earn profit by providing goods or services having investment of the government or private individuals are called business offices. Business offices conduct industrial, commercial and other service oriented activities and generate income. On the basis of investment and ownership, business offices can also be classified into two types i.e government business office and private business office. In government business office, at least 51% investment is made by the government and in private business office; the whole investment is made by individual or group of individuals. The offices which are established with the government or private investment in order to earn profit by providing goods or services are called business offices. 16 Office Management and Accountancy

Service motive office Those offices which are established with the sole objective of providing service to the general people rather than earning profit are called service motive offices. These types of office provide service in the field of education, health, and environment and specially at the time of war, flood, landslide, earthquake and in human troubles and difficulties. The office of Nepal Scout, Red Cross Society, and Nepal Children Organization etc. are the examples of service motive office. The offices which are established by the government or private individuals for public welfare without having profit motive are called service motive offices. OFFICE PERSONNEL Concept and definition Every office requires a number of employees to perform the technical and administrative jobs. Since all the jobs of the office are not of the same nature, it requires the employees having different qualification, skill, knowledge and ability. Some persons may perform technical jobs where as others perform administrative job. All the persons may not have same rank and position. However, all of them are engaged in certain jobs to achieve a common organizational goal. Thus, the persons who are involved in various official jobs holding different positions from the lowest level to the highest level are collectively known as office personnel. Office personnel are also called human resource or manpower. Office personnel are engaged themselves in various works together and support for attainment of targeted goal. Some of them hold higher position as office chief and others hold lower position as office assistant. All the personnel are assigned the duties and responsibilities according to their academic qualification, skill and experience. Following is a definition of office personnel: “The office personnel refer to all the employees of the office comprising the chief, sectional, chiefs and assistants who jointly work for the attainment of the organizational goals. Beach Office personnel are the employees engaged in an office holding different positions from the lowest to the highest level to perform the various technical and administrative jobs for achieving the pre-determined organizational goal. Short Notes to Remember (SNR 1.2)  In government office, office personnel flow from Secretary, Joint Secretary, Under Secretary, Section Officer, Nayab Subba, Kharidar, Mukhiya and Peon.  In non-government office, General Manager, Deputy General Manager, Departmental Manager, Officer, Senior Assistant, Junior Assistant etc. are the levels of office personnel. Office And Office Personnel 17

Types of office personnel According to their rank and level, jobs also will be of different nature. The job of higher level staffs may be related to formulation of plan and policy. They bear the higher responsibilities. The job of middle and lower level staffs may be related to implementation of such plan and policy. They assist the high ranked officers in the concerned jobs. However, all of them are equally responsible towards their duties. Thus, the office personnel may be classified into the following way as per their level and position: Figure: 1.3 Types of office personnel Office personnel Office chief Chief of the branch Office assistant Office chief In every office, a head person or chief is appointed to get the jobs done in efficient and effective manner that is known as office chief. The office chief is the boss or head or principal of all the office employees and departments. He/she gets the jobs done in office by maintaining effective coordination among all the office personnel to attain the common organization goal. He/she formulates the plans and policies, implements them with the support of other staffs and directs them towards their better performance. Office chief is the person who is fully responsible for the successful operation of the organization. Office chief is the top level staff of an office having the overall responsibility of performing managerial functions as per the main goal. Chief of the branch In bigger organizations, the different departments or branches are established to facilitate the jobs. The office chief alone cannot handle the jobs of all the departments or branches. Thus, in order to handle the jobs of the particular department or branch, a separate staff is appointed in each branch or department as middle level staff that is known as chief of the branch. He/she is also called sectional head or branch officer or section officer . The chief of the branch looks only after the respective branch and reports the progress, achievement and problems of the branch to the concerned office chief. He/she carries out all the activities of the concerned department or branch under the direction of office chief. He/she also maintains the coordination between junior level staffs and office chief. 18 Office Management and Accountancy

Section officer is the middle level staff of an office having the responsibility of performing the jobs under the instruction and direction of office chief. Office assistant All the jobs of an office are not of the same nature. Some of them are related to formulation of plan and policy and others are related to its implementation. Some of the jobs should be done on regular basis where as others can be done occasionally. Thus, in order to perform the jobs of regular nature, a junior level staff is appointed in office who is known as office assistant. Office assistant is the person working at lower level to perform the jobs of regular nature. He/she assists the chief of the branch and office chief in implementation of plan and policy of the organization by doing various routine jobs. In government office, office assistants are called by different names like Nayab Subba, Kharidar or Mukhiya and in private office, they are named as Junior Assistant, Technical Assistant, Administrative Assistant, Computer Assistant, Head Assistant etc. Office assistant is a lower level staff of an office who is appointed to assist the office chief and chief of the branch in their office procedure by doing various regular jobs. Functions and duties of office assistant Generally, the office assistant is appointed to discharge the duties of performing the routine jobs. He/She carries out a number of jobs as per the direction and guidance of the office chief and sectional head. The major functions and duties of the office assistant are explained below: a. Planning the daily jobs Memory Tips The important function of office assistant is to  Planning the daily jobs make the plan or schedule of the daily jobs of  Drafting and typing the letters office. Some jobs may be more important and  Handling telephone calls thus priority should be given for completion  Handling mails of such jobs. A properly designed schedule or  Note taking and elaborating plan helps him to perform the jobs promptly,  Filing official documents effectively and efficiently. He/She can take the  Recording financial activities suggestion and guidance from the upper level  Dealing visitors officers for planning the schedule, if needed.  Arranging for the chief’s visit  Using office machine and equipments b. Drafting and typing the letters Every office should prepare and send a number of letters to other offices frequently. The act of preparing the letter for different objectives is called drafting the letter. Office And Office Personnel 19

It is the routine job of the office assistant. The office assistant should draft and type the different types of letter and other documents in effective way. A well drafted letter should be typed on computer in required language considering its structure and qualities. A letter should be attractive and purposeful so that others can be impressed easily. c. Handling telephone calls A telephone is a widely used means of communication. Handling of telephone call means to make telephone calls to outsiders and to receive the calls made from outsiders. The office assistant should handle both types of call properly. He/She should handle the incoming calls in a polite and courteous manner and give response to the caller. He/She should have the proper office etiquette for efficient handling of telephone calls. d. Handling mails The office assistant should receive and send a large number of letters and documents daily. It is the regular function of the office assistant. Handling mails is the act of receiving and dispatching the letters and other written documents keeping a proper record in the entry and dispatch book. Thus, the office assistant should handle the incoming and outgoing mails systematically. e. Note taking and elaborating Sometimes, the office chief and the chief of the branch may give oral instruction to the office assistant. He/She should note down such instructions using short hand script. The key points or notes taken on particular matter should be elaborated in a meaningful and easily understandable form. For this job, the office assistant should have the proper knowledge of spelling and punctuation with good command over language. f. Filing official documents Filing is the act of keeping official documents in a systematic way for future reference. After the collection of letters and other written documents, they should be preserved using proper system and methods. Thus, filing is also one of the important functions of the office assistant. g. Recording financial activities Financial activities are the transactions related to the financial matter of an office. Every office makes daily expenditures on different heads and receives income through different sources. The office assistant should keep the proper record of such financial activities in a systematic manner. In order to perform this job effectively, he should have the knowledge of accounting principles and financial rules and provisions. 20 Office Management and Accountancy

h. Dealing visitors The different individuals may visit the office for different purposes. Some of them visit to get information about products and services and others may visit to meet any staff. All types of visitors should be handled or dealt in a polite manner. It includes receiving, welcoming and enquiring the visitors and fulfilling their desire. The office assistant should pay more attention towards them and perform their functions efficiently. If they need to wait for a long time, they should be offered some drinking items. The office assistant should also provide them newspapers or magazines to kill their boredom. i. Arranging for the chief’s visit The office chief is a responsible person of an office. He/She has to prepare plan and policies. He/She has to take various financial and administrative decisions and take part in different programs. He/She may have to visit different places in and outside the country for official purpose. The office chief may have to attend meeting, seminar and other official program conducted by different organizations. He/She has to take necessary documents and files while going on such visits. Thus, the office assistant should assist the chief in arrangement of necessary things like ticket, passport, visa, diary etc that makes the chief’s visit fruitful. j. Using office machine and equipments In order to perform the official jobs efficiently, nowadays a modern office arranges various office machines and equipments. Such machines and equipments help to make the job easier, faster and accurate. Thus, it is the duty of the office assistant to use modern machine and equipments like photocopy machine, fax machine, computer, calculating machine, printer etc. Key – effective linking of the activities of people and departments for Terms achieving a common goal. Coordination – not doing the jobs or decision promptly. Delay – the source of income or revenue of an organization. Financial resources Implementation – the act of taking action as per the plan of an organization. Management – the act of managing the various resources for proper utilization Office in an organization. Perpetual existence – a central part of the organization involved in performing administrative and technical functions. – long term existence or entity of an organization that cannot be dissolved easily. Office And Office Personnel 21

Planning – a systematic schedule of the jobs to be done in future. Safeguarding – the act of protecting or preserving the things. Supervision – the act of looking after the jobs done by others. Accounting principles – the principles to be followed for recording, posting and interpreting the accounting records. Administrative jobs – the jobs of an office related to the administrative matters like planning, policy making, directing etc. Assistant – a lower level staff who performs the job of regular nature. Drafting – the act of preparing the record or document roughly. Filing – the act of preserving the official records and documents for future reference. Financial activities – activities relating to financial or monetary matter. Mail – a letter or document containing valuable information. Office personnel – all the staffs engaged in different jobs of an office holding different levels and positions. Officer – a staff working at higher level position. Technical jobs – the jobs of an office related to technical matter like operating plant and machinery, computer etc. 1. What is office? Describe its features in brief. 2. Explain the importance of office in any six points. 3. List out the functions of office and describe any six of them in brief. 4. How can you set up an office? Differentiate between a long term office and a short term office. 5. Give the classification of office on the basis of service, profit or ownership and introduce them briefly. 6. What is a government office? State the main objectives of a government office. 7. Define a business office with its types. 8. Define a service motive office with examples. 9. What do you mean by office personnel? Write in brief. 10. Who is office chief? Write in brief. 11. Write a short note on the chief of the branch. 12. Define office assistant and explain his/her major functions. 13. Describe the types of office personnel in brief.  22 Office Management and Accountancy

2 OFFICE RESOURCES Chapter Learning Objectives After studying this chapter, the readers will be able to :  define the term office resources,  state the importance of office resources,  list out an explain the different types of office resources with their usefulness. Introduction All types of organizations have to perform a number of administrative and technical jobs to achieve the targeted goal. They need different resources like manpower, money, materials, means of communication, means of transportation etc to perform the official jobs. All those resources are known as office resources. It may be human resource, financial resource and physical resource. Office resources play a crucial role in a day to day functioning of office. Human resources ensures the mobilization of other resources. Similarly, means of communication facilitates to exchange news, views and experiences between two parties. Means of transportation helps to move people and carry the physical things from one place to another. Materials and supplies like machinery, furniture, tools and equipment, stationeries etc facilitate for day to day functioning. Thus, all these resources help to produce goods and services and distribute them in the market to satisfy the customers. The overall effectiveness of organizational efforts depends on the availability and utilization of the resources. Thus, every modern office should manage the office resources at optimum quantity to sustain in the competitive environment. Office Resources 23

Concept and definition The office requires the support of various resources to perform a number of jobs and to achieve the targeted goal. Such support may be related to manpower, finance or other physical resources. Thus, an office should arrange and utilize the various resources for smooth functioning of an office which are known as office resources. It includes human resources (manpower), physical resources (materials and supplies and means of communication) and financial resources (source of income or money). An effective arrangement and mobilization of all these resources ensure the smooth and efficient functioning of official jobs. These are the means which support to carry out the various official activities. The efficiency and success of any office largely depends upon the employment and utilization of such resources. The absence of any of these resources greatly affect the operation of an office. Manpower, money, materials and equipment, means of communication and means of transportation are the examples of office resources. The following is the important definition of office resources: “Office resources refer to all those means including manpower which support in the operation of office procedures.” S.P. Arora The office resources are the human, physical and financial resources of office which are needed for performing various technical and administrative functions to achieve the targeted goal. Short Notes to Remember (SNR 2.1)  Office resources can be mentioned as five M’s i.e. man, machine, money, means of transportation and means of communication. Necessity of office resources Office resources are the important means for performing administrative and technical jobs in an office. These resources are as important to the organization as blood and flesh to the human body. Without office resources, smooth functioning of an office and attainment of organizational goal is not possible. The necessity of office resources can be studied under the following points: a. Smooth functioning of office Office resources are important for regular and smooth functioning of office. The various resources like manpower, material and supplies, finance, means of communication and transportation help to get the jobs done in specified time. All types of office resources are equally important for maintaining proper balance in official jobs. The absence of any of these resources may cause disturbance in official jobs. 24 Office Management and Accountancy

b. Accurate and efficient performance of jobs M emory Tips In order to perform the jobs more accurately  Smooth functioning of office and efficiently, office resources are needed.  Accurate and efficient performance of Any job done without proper use of office resources may be ineffective and inaccurate. jobs The optimum management and utilization of  Increasing the efficiency of staffs office resources reduces the chances of errors.  Avoiding delay in official jobs It also increases the productivity of an office.  Saving the valuable time and cost  Earning goodwill and prestige c. Increasing the efficiency of staffs An efficient mobilization of office resources makes the job comfortable and effective. It also reduces fatigue and monotony. The use of machinery, furniture, computer and other resources helps to do the jobs efficiently. With the help of office resources, the staffs learn how to increase the quality and reduce the cost of goods or services. Thus, the office resources are more important to increase efficiency of staffs. d. Avoiding delay in official jobs In absence of any of the office resources, official jobs cannot be completed in time. A well equipped office with sufficient office resources helps to avoid delay in official jobs. It results into better performance. e. Saving the valuable time and cost The proper arrangement and efficient utilization of office resources helps to save the cost and time. Efficient manpower and other modern equipments assist to produce the qualitative goods and service at a minimum cost. It also maintains the quality and standard to minimize the cost of production and increase profit to the firm. It ensures the smooth flow of work in office. Thus, it saves cost and the valuable time of staffs in an office. f. Earning goodwill and prestige The adequate provision of office resources and their proper utilization helps to satisfy the employees, community and concerned parties. On the other hand, office becomes attractive with the help of such office resources. As a result, it helps to earn prestige and goodwill of an organization. Types of office resources Different offices manage and use different types of office resources. Some of the common types of office resources used in office are described below: Office Resources 25

Manpower Manpower is also known as human resource. It denotes to all the employees working in an office at different levels and ranks. They perform the varieties of jobs as per their rank, qualification and skill. Among various office resources, manpower is more important because the arrangement and utilization of other resources depends on the efficient manpower of an office. Manpower refers to the employees engaged in an office at different levels and positions to perform the various technical and administrative jobs as per the organizational goal. The manpower engaged in an office may be classified into following two types: Figure: 2.2 Types of manpower Manpower Administrative manpower Technical manpower Administrative manpower The staffs engaged in an office for performing day to day managerial and administrative jobs are known as administrative manpower. Administrative manpower performs the paper works related to planning, policy making, controlling, decision making etc. Such manpower holds the highest, middle and lower level positions in an office. Managers, directors, coordinators, officers, office assistants etc. are administrative manpower. Technical manpower The staffs engaged in various technical jobs of an office using the technical knowledge, experience and skills are called technical manpower. They require special knowledge for performing the technical jobs. Doctors, engineers, teachers, electricians, plumbers, carpenters, masons etc. are the technical manpower. Technical manpower can be classified as skilled, semi-skilled and unskilled manpower. Finance/Source of income Every office needs money for smooth functioning. It requires to perform the various administrative and developmental works. Whether these are government, social or business organizations, all of them need money or finance to perform the official activities efficiently. Finance is needed to pay salary to staffs, purchase office materials and conduct various trainings and programs. 26 Office Management and Accountancy

Thus, the regular source of income required for smooth functioning of an office is called financial resource. Finance is the surviving factor of every organization. Without finance, the office cannot function in a long run. Finance or source of income is needed for all types of offices to carry out various administrative and developmental functions. Different offices manage their financial resource through different sources. The government offices collect finance through income tax, value added tax, donation, foreign aid, loan etc. The main source of income for business organizations is the capital contributed by owners or partners, amount received by selling goods or services etc. Service motive offices may arrange financial resources through donation, subscription, legacy, membership fees, entrance fees etc. Finance is the regular source of income needed to perform the various regular and developmental functions of an office as per the pre-determined organizational goal. Short Notes to Remember (SNR 2.2)  The level of income determines the survival, growth, expansion, competitiveness and goodwill of an office.  The major sources of income of government offices are tax, foreign aid, grants, internal and external loan etc.  Every year, the government prepares the budget which is the estimation of revenue and expenditure for the forthcoming year.  The source of income of a private business office is the capital invested by the owner and sale of goods or service to the customers. Communication The word ‘communication’ is derived from the Latin word ‘communis’ which means to tell or to inform or to express anything. It is the way of expressing news, views, ideas or experiences between or among the people. It may take place inside or outside the organization. Communication may be performed in oral, written or symbolic form using different means. Thus, communication involves a systematic and regular process of expressing, listening, understanding and giving feedback of any matter or issue. The process of communication includes sender, receiver, message, medium, means and feedback. In every office, communication is needed to transmit the message about plans, policies, rules, regulations, decisions and achievement of the organization. It helps to provide information to the different parties concerned with the office. Communication is the process of exchanging news, views ideas or experiences between two parties through oral, written or symbolic means. Office Resources 27

Importance of communication Communication is an essential means of office resources. An effective communication helps to coordinate among different individuals and organizations. Its importance are mentioned below:  It helps to share ideas, facts, suggestions, opinions or experiences between two parties.  It helps to develop a good relationship between management and employees.  It facilitates to co-ordinate with government, shareholders, customers, suppliers and employees.  It helps to supply the required information to general people and collect their ideas and views.  It helps to formulate and implement the plan and policies of an organization.  It helps to inform the employees about the plan, policies and decisions of an office.  It helps to strengthen the external relationship with various parties.  It helps to settle the disputes and misunderstanding between or among the people in and outside the office. Means of communication The mechanical devices or instruments used for communication are called means of communication. Different offices use different means of communication according to their necessity, availability and financial position. We can use telephone, radio and television, loud speaker, dictaphone, etc as oral means and letter, e-mail, fax, telegram and internet as written means. Similarly, we can use horn, signal, bell, light, colour etc as symbolic means of communication. Some of the modern means of communication are explained below : Figure: 2.3 Means of communication Communication Telephone Fax E-mail Internet 28 Office Management and Accountancy

Telephone Telephone is a popular, common and widely used oral means of communication. It is a mechanical device for passing information from one person or place to another with or without wire connection system. Telephone is the fastest and most effective means of communication used by different individuals, business organizations and government offices. Mobile phone is the latest and advanced form of telephone used without wire. In Nepal, prepaid, postpaid and wave phone services have been provided by different government and private companies. Nowadays, mobile phone includes various facilities like photography, e-mail, internet, voice mail recorder etc. Fax Fax is the short form of ‘Facsimile’. It is an electronic device used to send the written or printed matters, pictures, drawings or photographs through a networking system of a computer and fax machine. Under this means, both the sender and receiver should have installed the same types of machine having connection with a telephone line. In order to send the required information through fax, the sender should insert the printed or written matters in fax machine and should dial the fax number of the receiver. Then, the fax machine reads the data or information and sends it to another fax machine whereby a copy of the same matter will be printed. It is more useful if the receiver needs to get the same message as sent by the sender. It has been popular in the present day world due to its promptness and affordable cost. Nowadays, a computer and internet can be used instead of fax machine to send the information from one place to another which is called e-fax. E-mail (Electronic mail) Electronic mail is the modern technology through which written messages are received and sent through an electronic device. It is a modern and fastest as well as popular means of written communication. In order to exchange a message through e-mail, a computer address is required which is called e-mail address. An e-mail address may be like [email protected]. Under this means, the person who wants to send the message through e-mail should type the matters in a device and send it to the e-mail address of the receiver. Office Resources 29

Internet The internet is the latest and advanced technological invention in the field of communication. It is called international network of computers which is spread over the world. Under this means, the computers are linked to each other through telephone line and satellite system or microwave channels and cable lines. It has the information centre known as website where varieties of information are collected, stored and used by the people and organizations worldwide. Thus, the website is the location or information centre which produces the information stored in it. The information stored in the internet can be made available to those people who have a website address of a particular organization. The person staying in any corner of the world can get the information with the help of this website address. Nowadays, with the help of it, we can also order the goods from any corner of the world using a credit card. It can be used by any person in the world using the address of the organization like www.moecdc.gov.np for Curriculum Development Centre, Ministry of Education, Nepal. Transportation Transportation is another important types of office resources. It is the process of carrying people or goods from one place to another using any means. The process of moving people from one place to another is called passenger service and carrying goods in different geographical places is called transport service. Means of transportation help to visit the employees in different places in and outside the country. On the other hand, it also helps to transfer the goods from production place to consumption place. All types of office need transportation to perform the jobs quickly and to visit different places conveniently. The selection of means of transportation depends on the nature of job, geographical condition, availability of means and financial position of an organization. Transportation is the means of carrying people and physical goods from one place to another in and outside the country through different means. 30 Office Management and Accountancy

Means of transportation Different means of transportation are used by different offices. They are explained below: Figure: 3.5 Means of transportation Transportation Land transportation Water transportation Air transportation Land transportation The act of transferring people or carrying goods from one geographical place to another using land or roadways is called land or road transportation. It is the most common and widely used types of transportation because of its cheapness. Both roadway and railway can be included under this type. Some of the means of road transportation are men, horses, bullock carts, bicycles, cars, buses, trucks, trains, trolley, rails, tractors, jeeps etc. Water transportation The act of carrying people or goods from one place to another in and outside the country through waterways like river, lake, ocean etc. is called water transportation. Nepal is a landlocked country and thus it has very limited facility of water transportation. It is very popular in foreign countries. Boats, ships, ferries, motorboats etc. are the examples of water transportation. Air transportation The act of moving people and carrying physical goods from one place to another through airways is known as air transportation. Office Resources 31

It is the advanced and fastest but most expensive type of transportation. It is suitable in those areas where there is no availability of other means of transportation due to complex geographical condition. Air transportation facilitates tour, travel and carriage of goods to and from different geographical areas. Aeroplane, helicopter, balloons, etc. are some examples of air transportation. Short Notes to Remember (SNR 2.3)  Different offices use different means of transportation according to the geographical condition and economic status.  Air transportation has been a popular and major type of transportation for different remote areas of Nepal like Humla, Jumla, Dolpa, Manang, Mustang, Solukhumbu etc. for the promotion of tourism industry.  Nowadays in Nepal, a cable car facility is also available in very few places to carry the persons and goods in a short distance. Materials and supplies Materials and supplies refers to all the physical things which are required for performing day to day administrative and technical jobs in an office. Only the presence of manpower is not enough to carry out the jobs daily. In order to make the job easier, comfortable and to increase the efficiency of staff, such materials and equipments are very important. Such things include stationary materials and other durable office equipments like plant and machinery, furniture and fixture, filing cabinet etc. Thus, all the durable and non durable things which help to perform the official jobs with speed, accuracy and greater efficiency are called office materials and supplies. Considering the durability of such materials, those are classified into following two types: Durable materials Those materials which can be used for more than a year and help to generate regular income for the organization are called durable materials. These materials are considered as the fixed assets for the organization. These are employed in an office for long term use not for resale purpose. Furniture, vehicle, computer, plant and machinery are some examples of durable materials. 32 Office Management and Accountancy

Non-durable materials Those materials which are used by the organization only for short period of time i.e. less than a year are called non durable materials. An office receives the benefits of non durable materials only for one year. These materials help the organization to maintain its earning capacity. The stationery items like pen, pencil, ink, stamp, stapler, file, register, photocopy paper etc. are the examples of non durable materials. All the durable and non-durable things which are used by an office for performing day to day administrative and technical jobs are called office materials and supplies. Key Terms Communication – the act of exchanging news, ideas, information and opinions from one person or place to another using any means. Credit card – automatic teller machine card provided by a bank to the Durable materials – borrower of money. Electronic mail – the materials which can be used for more than a year. Finance – Goodwill – a modern technology through which the written messages are communicated through the computer with the help of telephone Internet – line. Manpower – the source of income of an office earned from different heads. Office resources – a state of having good name, reputation or prestige of an organization towards the public. Transportation – worldwide communication networking for spreading the message operated through electronic device. all the office personnel working from lowest to highest positions. the resources utilized by an office for efficient functioning. the process of carrying people or goods from one place to another using any means. Office Resources 33

1. What do you mean by office resources? Write in short. 2. Describe the necessity of office resources in five points. 3. Define human resource and explain its types. 4. What do you mean by finance or source of income? State the source of income for different offices. 5. What is meant by communication? Mention its importance. 6. Describe any four modern means of communication in brief. 7. What is transportation? Explain the different modes and means of transportation in brief. 8. What do you mean by materials and supplies? Explain in brief. 9. Describe in brief the types of office resources.  34 Office Management and Accountancy

3 CORRESPONDENCE Chapter Learning Objectives After studying this chapter, the readers will be able to :  define correspondence and describe its importance for office,  mention the qualities of a good letter,  explain about the handling of incoming and outgoing mail,  prepare the specimen of entry book and dispatch book for registering the incoming and outgoing mail. Introduction An office has to perform a number of functions daily. It has to perform various information related functions. Communicating with different parties is one of the routine functions of an office. Correspondence is concerned with the exchange of written documents for communication purpose. It provides formalities to the official policies and programs. Handling correspondence is one of the regular functions of office. It facilities to promote understanding between the individuals and departments of the organization. The written documents like letter, notice, circular, mandatory order etc. are the examples of correspondence. It takes place inside the organization and even with outsiders. Hence, correspondence with various parties such as government, business firms, social organizations etc. helps to promote the prestige and goodwill of the organization. Correspondence 35

Concept and definition All types of offices need to communicate with insiders and outsiders for various purposes. The offices can use oral, written and other means of communication. Though the oral means of communication like telephone, mobile etc. are the fastest means of communication, they are regarded as less authentic than written means. Thus, to give it authenticity, offices can communicate with different parties in written form which is called correspondence. The process of correspondence takes place in the form of written means like notice, circular, letter, application, quotation, order etc. The correspondence is used to keep contact and maintain good relationship between the offices and different individuals. Among various means of communication, correspondence is one of the most popular, easiest, authentic and easily available means. It makes a good impression and creates a positive attitude of the customers, employees, general people, suppliers and government towards the office. It supports for earning goodwill in a long run. It may be internal or external for conveying the ideas, thoughts or official information without personal touch. Some definitions of correspondence are given below: “Office correspondence is the process of exchanging information through letters or other written ways between the individuals and organizations of different places for achieving the definite objectives.” James Stephenson “Correspondence is a means of communication in writing on the subject of mutual interest either within the organization or with the outsiders. S. P. Arora Correspondence is the formal means of communication used for exchanging the ideas, thoughts or official information between individuals or organizations using written means. Short Notes to Remember (SNR 3.1)  Correspondence takes place in the form of letter, notice, circular, application, memorandum, quotation, order, telegram etc.  A letter is a good example of correspondence.  Electronic mail (E-mail) and fax are the developed and modern form of correspondence. Need and importance of correspondence Correspondence is important for all types of office. It is equally important for private individuals. As it is a written means of communication, it is used by business and 36 Office Management and Accountancy

non-business offices to inform others about the activities and recent messages. It is important due to the following reasons: a. Means of written communication Memory Tips Correspondence is the written means of  Means of written communication communication. All types of information and  Collection of information messages are exchanged in written form under  Maintain public relation this means. It provides the written record of  Proof for the future all types of activities done in an office and the  Cheaper means of communication decisions taken from time to time. Thus, it is  Reliable means of communication important for individuals and organizations.  Good impression to the readers b. Collection of information Correspondence is the suitable means of communication for collecting information. It helps the individuals and organizations to collect varieties of information. The business firm can collect valuable and secret information from customers and suppliers regarding the plan, policy and future strategy of the firm. It helps to get valuable suggestions about their products, services, and the decisions past. It helps to make necessary correction in the future. c. Maintain public relation Public relation is very essential for private individuals and other organizations. It helps to get support from the public to achieve the targeted goal. The business organizations should maintain the regular relationship with its customers, suppliers, banking and financial institutions and various governmental bodies. In order to gain public faith and confidence, the best means of communication is needed. So, the correspondence may be the best and strong means of communication to maintain a good public relation. d. Proof for the future Correspondence means the written matters exchanged between two parties. Thus, it can be presented in the court of law whenever required. It also can be produced as a proof in case of debate or misunderstanding between two parties. Thus, the correspondence acts as a true evidence in future to settle disputes created in and outside of an office. e. Cheaper means of communication Correspondence is a cheaper, easier and reliable means of communication. It is used in written form. So it is more reliable than other means of communication where all the information can be sent clearly and effectively in a descriptive manner. Thus, due to its easy availability, cheapness and reliability, it has been popular among the individuals and organizations. Correspondence 37

f. Reliable means of communication Correspondence is a widely accepted means of communication. It is the most reliable means for collecting valuable information. It is also regarded as an authentic source of communication. Thus, in order to give formality and authenticity to the various activities and decisions, correspondence is improtant. g. Good impression to the readers The exchange of ideas, views or information in the written form through correspondence makes good impression to the readers. It helps to draw the attention of others towards the matters. It builds up a positive attitude towards the organization. As a result, a good impact upon public can be observed that increases the goodwill of an office. Qualities of a good letter A letter is an example of correspondence. It is written with particular objective that can be achieved only with a good letter. A good letter is that which creates a good impression to others and get the objective as the sender wants. Thus, the writer should attempt to write a good and impressive letter. Some essential qualities of a good letter are as follows: a. Simplicity: The letter should be written in simple language so that the receiver can understand it easily and gives response quickly. b. Clarity: The letter should be written clearly giving proper space, arranging paragraphs and avoiding crossing, rubbing and overwriting. c. Originality : The letter should have the writer’s own expression, style and thoughts regarding the subject in short with full meaning. d. Conciseness: The letter should not be too long. It should be written clearly so that the confusing words, explanation and expressions can be avoided. e. Correctness: The letter should be written correctly using correct words, spelling and grammar. The facts and figures used in a letter should be accurate. g. Politeness and Courteousness: The letter should be written in a polite and courteous way giving due respect and honour to the readers. The respectful language and expression should be used in the letter so that it maintains the prestige of the sender and gives satisfaction to the receiver. h. Attractiveness: The letter should be written and composed in an attractive way. It should be neat, clean and well structured so that it looks attractive. It should be typed on the computer using attractive font and letter size. 38 Office Management and Accountancy

Short Notes to Remember (SNR 3.2)  The qualities of a good letter are : • Simplicity • Clarity • Originality • Conciseness • Correctness • Politeness and courteousness • Attractiveness Types of letter on the basis of use or objective The letters are written for different uses or objectives. On the basis of use or objective, it can be classified as follows: Figure: 3.1 Types of letter on the basis of use or objective Letter on the basis of use Government letter Business letter Application letter Personal letter Government letter Government letter is one which is written by a government unit to other persons and offices to inform about governmental activities and decisions. It helps to perform the administrative functions of the government. The government letters are exchanged between central level offices and operating level offices. The central level offices write letter to the operating level offices to inform about decision, rules and regulation, instruction, order etc. Similarly, operating level offices also write and forward letter to the central level offices to report about the budget expenditure, performance, achievements and current problems. They also write such letter to make complaints and provide suggestions and recommendations on certain matter or issues. The letter which is written by a government office to other government offices or individuals to inform about the governmental decision, rules and regulation or other administrative procedures is called government letter. Business letter Business letter is one which is written by a business firm to another firm, customers, creditors or government agencies regarding the business matter. It may be written to perform the business dealings between two business organizations. It is written to continue the business activities such as buying and selling of goods or services. It include the matters like making enquiry, giving quotation, placing order, giving Correspondence 39

acknowledgement or confirming order, making complaint and making payment etc. According to the types of business letter, it includes the different subjects and bodies The letter which is written by a business organization to another business organization, individual or other offices to inform about the various business matters is called business letter. Application letter An individual may write a letter to the organization for various purposes. He/she may write a letter in order to apply for the job, asking for leave, asking for information, asking for particular service etc. All these types of letter are called application letter. Employment letter is one of the important type of application letter. It is written by an individual to the employer as per the vacancy announced requesting to get the job. Application letter for the post must be written very attractively, carefully, politely and effectively so that an employer may call the candidate for an interview. Thus, the applicant should write an application letter giving the details required to the employer. He/she should mention the personal description, academic qualification, training and experience, reason for applying to that post etc in sequential order. He/ she should submit the bio-data and copies of testimonials along with the handwritten application. The letter which is written by an individual or employee to the organization requesting for job, leave, information, particular service etc. is known as application letter. Personal letter The personal letter is one which is written by an individual to his family members, friends or relatives describing the personal matters. It is written to exchange the news and information and to maintain the good faith and understanding between or among the individuals. It is also written to inform about recent news about health, society, economic condition, job, problems, progress and achievement etc. Personal letters create love and affection as well as maintain good personal and family relationship. If any family member has gone to foreign country for further education, employment,businessorotherspecificpurpose,itrequirestokeepintouchwithhim/her. In such condition, letter may be an important means of communication to know about his/her status. Thus, it is written for various purposes. There is no any fixed style and format for writing the personal letter. It can be written in any format, style 40 Office Management and Accountancy

and structure as per the personal interest of the writer. Letter of congratulation, letter of regret, invitation letter, letter of gratitude etc are the examples of personal letter. The letter which is written by a person to his family members, relatives or friends describing about personal matter such as health, education, job, economic condition, current problems etc is known as personal letter. Handling of mail Mail refers to a written document containing some information. It includes letter, notice, circular, telegram and other written documents which are created in an office and received from outsiders. A mail can be received or sent through different means of communication like messenger, post office, courier service etc. All the incoming and outgoing mails should be systematically recorded in a book. Thus, the process of collecting, receiving and recording the incoming and outgoing mails in a systematic manner is known as handling of mail. The office may establish a separate department for this job which is called mailing department. Handling of mail is the process of recording the incoming mail and outgoing mail in a systematic manner by maintaining the separate books for receiving and dispatching of mail. Handling of incoming mail The act of receiving and recording the incoming letters and documents in a separate book in systematic manner is called handling of incoming mail. The book used for keeping the record of incoming mail is called ‘entry book ‘or ‘Darta Kitab’ in Nepali. The specimen of a entry book is as follows: Entry Book (Darta Kitab) Entry Date of Incoming letter Name Subject Receiving department Remarks No. Entry Ref. No. Date of 6 Name Signature Date 10 1 234 sender 78 9 5 Correspondence 41

The information to be written in each column in the above specimen are as follows: Column Information to be written 1. Serial number of the letter or mail 2. Date of entry of the mail 3. Reference number of the mail 4. Date of writing the mail 5. Name of the sender 6. Subject of the mail 7. Name of the department or section to whom the mail is forwarded 8. Signature of the receiver of the mail 9. Date of receiving the mail 10. Other necessary information Handling of outgoing mail The act of drafting, preparing and sending various letters and documents to outsiders by recording them in a book is called handling of outgoing mail. The book to be used for keeping the record of outgoing mail is called ‘dispatch book’ or ‘Chalani Kitab’ in Nepali. The specimen of a dispatch book is as follows : Dispatch book (Chalani Kitab) Dispatch Date of Outgoing letter Name of Sending section/ Post box Remarks No. dispatch receiver department Ref. No. Date Subject or peon 1 2 34 Name Signature book No. 56 7 8 9 10 42 Office Management and Accountancy

The information to be written in each column in the above specimen are as follows: Column Information to be written 1. Serial number of the mail dispatched 2. Date of dispatching the mail 3. Reference number of the mail 4. Date of writing the letter 5. Name of the receiver to whom the mail has been sent 6. Subject of the letter 7. Name of the concerned department/ section sending the mail 8. Signature of the dispatching clerk 9. Post box or peon book number 10. Other necessary information Short Notes to Remember (SNR 3.3)  In government offices, a separate section or department is established for efficient handling of mails which is known as “Darta Chalani Phant.”  The specimen and the columns used in the entry and dispatch book may vary from one office to another depending on the number of columns required and types of information to be recorded.  The procedures of handling the incoming mails are: receiving, recording, stamping, distributing, clearing.  The procedures of handling the outgoing mails are: drafting, collecting, recording, stamping and dispatching. Key Terms Authentic – legally valid. Circular – a written instruction provided by upper level office to its branch Correspondence – or departments. Dispatch book – the act of exchanging written materials like letter. Entry book – the book used for keeping the record of outgoing mail. Handling of mail – the book used for keeping the record of incoming mail. Notice – the act of keeping the records of incoming and outgoing mail in separate books. Quotation – the act of informing the concerned persons or parties through oral, written or symbolic means. a letter containing the reply of enquiry. Correspondence 43

1. What is correspondence? Explain its importance. 2. Mention the essential qualities of a good letter. 3. Classify the letter on the basis of use and explain them in brief. 4. What do you mean by handling of mail? Write in brief about handling of incoming mail and outgoing mail. 5. Show the specimen of entry book and write the information to be mentioned in it. 6. Show the specimen of a dispatch book and write the information to be mentioned in it.  44 Office Management and Accountancy

4 POSTAL SERVICE Chapter Learning Objectives After studying this chapter, the readers will be able to :  define the term postal service,  describe the development of postal service in nepal,  mention the methods of sending letter through post office and explain them,  differentiate between ordinary letter and registry letter. Introduction Today, the individuals and organizations use various means of communication. According to the availability, letter, e-mail, internet, fax, telephone etc are used as means of communication. Out of various means, letter is widely used among individuals and organizations. Sending letter or other related documents is concerned with the postal service. It is the oldest and easiest traditional facility in the field of communication provided by the government. It involves the transfer of letter and written documents from one person to another using post office. With the passage of time, postal services have also been modernised. Such facility is not limited to the transfer of written means like letter but extended to the modern service like express mail service. It has diversified its services to various sectors in and outside the country. Thus, postal service and electronic communication service play an important role in the field of communication. Such facilities are equally useful to the individuals, government, business offices and social service sector. Postal Service 45

Concept and definition Postal service is one of the important means of communication. It is used for exchanging the written materials like letter, notice, post card, parcel etc. It transfers the documents from one place to another for official and private purpose inside and outside the country. It is one of the oldest facilities provided by the government in the field of communication. In every country, postal service is provided by the governmental body. In Nepal, all these services are provided by a governmental institution known as post office. Though there are various modern means of communication, postal service is still popular among individuals, government offices, business firms and others. It is considered as the cheapest, convenient, popular and reliable means of communication among its users. Today, the postal services are not limited to its traditional communication and parcel service. It has extended its services to the modern functions such as insurance service, banking service and electronic communication service in the country. Thus, postal service is more popular and useful service to the developing countries like Nepal as other means of communication are not easily available in all the geographical places. While sending letter through the post office, one should write the name and address of the sender and receiver on it’s envelope clearly. The sender should mention his/her name and address on the left hand side and the name and address of the receiver on the right hand side. Besides this, the postage stamp should also be affixed on the top right hand corner to the letter. Postal service is the facility provided by the post office for transferring the written materials like letter, notice, post card, document and parcel from one place to another. Development of postal service in Nepal There is no any dependable proof to say when exactly did the postal service start in Nepal. However, we can estimate that the concept of postal service was evolved from the very ancient time in Nepal. In ancient period, the people were used as messenger to transmit the message from one place to another. It is also heard that official message and documents were also carried by Rissalas’ (Horse soldiers) before the unification of Nepal. During medieval period, the development of postal service got shape when the king Prithvi Narayan Shah introduced two types of office in the history of postal service. Such offices were Thaple Hulak and Kagaji Hulak. Thaple Hulak was used for transferring fooding items and Kagaji Hulak was used for transferring letters and documents from one place to another. During that period, horses were used as means of transportation since the road facility was not available. The organized and systematic development of postal service began very lately in 1935 B.S. during the period of king Surendra with the establishment of post office (Hulak 46 Office Management and Accountancy

Ghar). In 1938 B.S. the first postal stamp was issued costing one anna, two annas and four annas each. The letters, documents etc were sent in different places using postage stamps since then. Such postage stamps had crown (Shreepech) and crossed knife (Khukuri) printed there. Till 2013 B.S., Nepal was not permitted to exchange the letters and documents outside the country. When Nepal got the membership of world postal union in 26th Ashwin 2013 B.S, it was allowed to send written materials even outside the country. However until 2015 B.S., Nepal had to use Indian postage stamps to send the letters and documents to other countries. Since 1st Baisakh 2016 B.S., Nepal started sending letters and documents all over the world using her own postal stamps. In 2035 B.S., Nepal celebrated golden jubilee celebration on successful completion of 100 years. In modern days, the government has planned to develop the quality and quantity of postal service in the country by launching various modern facilities like e-mail and internet services. It has introduced postal saving bank and insurance service. In every five year plan period, the government formulates different strategic and operating policies to make the postal service reliable, effective and economically sustained. In different five years plan period, the government has been formulating the strategic and operating policies to operate the service as an autonomous organization to develop postal service as a reliable, effective and economically sustained. It sets the objective to encourage the offices established in private sector to provide qualitative postal service and continue their activities. It has the program of launching new services like e-post. Besides this, there is the objective of extending express mail service to different towns of the country and different countries. Similarly, the next objective is to provide e-mail and internet service to all the local areas of the country. The government has planned to hand over the local level postal service related jobs to the local bodies. Even though, all those objectives could not have been achieved, more progress has been felt in the field of postal service. At present after implementation of federal system in the country, the government is giving more priority for the development of information and communication sector. It has planned to develop and extend the different sectors of information and communication. It has focused to ensure the competitive and qualitative service with advanced technology to every citizen of the country. Short Notes to Remember (SNR 4.1)  The act of collecting postal stamps and performing the detailed study related to it is called philately.  Express Mail Service (EMS) is the advanced and latest postal service in which the sensitive documents and merchandised items of the customer are dispatched with extra speed and without any procedural delay.  In Nepal, express mail service is available in major towns and cities of the country and countries of the world.  The advanced networking of computer and information technology which provides the postal service as per the demand of customer is known as electronic post. Postal Service 47

Methods of sending letter through post office The post office has introduced a number of methods and means for transferring the letters, documents or other postal materials from one place to another. The selection of method depends upon the nature, importance, urgency, length of the message and availability of the means. Following are the methods of sending letter through post office: Figure: 4.1 Methods of sending letter through post office Methods of sending letter Ordinary Registered Aerogram Post card letter letter Ordinary letter The ordinary letter refers to the letter containing the general information or message. It can be sent at a minimum cost through post office. If the message or information to be sent is not urgent and confidential, individuals and offices can use this method of communication. In Nepal, ordinary letter can be sent using the postage stamp of Rs. 5 upto the weight of 20 grams. For more than 20 grams, additional postage stamp of Re 1 is needed for every additional 10 grams. The cost of postage stamp for sending ordinary letter to foreign countries depends upon the country, continent and the distance to be covered. The post office does not bear any responsibility for the loss or damage of this types of letter. It is also not recorded in the book of post office. The letter which is used for sending ordinary message through post office at minimum cost is called ordinary letter. Registered letter The letter which is sent through the post office by registering into the book is called registered letter. If the message to be sent is urgent and secret, the letters are sent by registering in the book of post office. The additional postal charge should be paid for the registration of letter. The charge depends on the weight of the materials. If the letter is registered, the post office will be responsible for the loss or damage of it. However, the cash and valuable materials are not allowed to enclose along with this letter. After registration of letter, the post office keeps the record of sender and receiver’s name and address including the date of sending letter. It provides a receipt to the sender as an evidence of the letter received and registered. 48 Office Management and Accountancy

If the sender wants the confirmation of the delivery of the letter, he can get the return receipt by paying additional charge as fixed by post office. Such return receipt is attached with the letter and sent to the receiver. The post office returns it back to the original post office after collecting the signature of receiver. Thus, the return receipt helps the sender to get confirmation regarding the receipt of letter. The specimen of return receipt is as follows: Return Receipt Received a registered letter of ............................................................................. weight (in words) ................................. (in figure) delivered in the name of ................................................. Signature of receiver ........................... Date of delivery received ..................... (To be returned back to the original post office for the delivery to the sender) The letter which is used for sending the message of urgent and confidential nature by registering into the book of post office with the payment of additional charge is called registered letter. Short Notes to Remember (SNR 4.2)  According to the provision of postal rules and regulation, cash, cheque, bank draft, postal stamps and other valuable items are not allowed to be sent through ordinary post or letter. If it is necessary to send them, the letter must be registered and insured. Aerogram Aerogram is a simple sheet of paper prepared and issued by the post office in printed form. It contains the space for writing the name and address of the sender and receiver along with the space for writing message. It is available at post office at minimum cost. It doesn’t require additional postal ticket since it is fixed there in printed form. After writing the message, it is folded so that it shapes in the form of envelope. Thus, the extra envelope is also not required if aerogram is used. However, it has limited space so that long message cannot be sent using aerogram. It does not allow to keep other documents. Thus, it may not be useful for the business purpose. However, it is cheaper and convenient means for exchanging the message for household purpose. Traditionally, it was sent through airway so it was called aerogram. But nowadays, it can also be sent through other means of transportation. Aerogram is a printed sheet of paper issued by the post office with the space for writing short message and name and address of both the sender and receiver. Postal Service 49

Post card Post card is a card issued by the post office having the space for writing name and address of the receiver and sender along with the place for writing short message. It does not have more space so the long message cannot be sent using it. It is an economical method for sending short message like best wishes, congratulation, greeting, invitation and condolence etc. It is also used to give reply to the questions to the competition organized by radio and television program. Generally, the post card is sent without using envelope so the secrecy cannot be maintained. The post card contains a postage stamp of the required value which is affixed on it. Post card is a printed paper issued by the post office having space for writing short message like greeting, best wishes, condolence, complaints, business replies, invitations etc. Differences between ordinary letter and registered letter Following are the differences between ordinary letter and registered letter: Basis of Ordinary letter Registered letter difference 1. Meaning The letter which is sent through The letter which is sent by ordinary post is called ordinary registering into the book of post letter. office is called registered letter. 2. Suitability It is suitable for sending ordinary It is suitable for sending message. and important, urgent confidential message. 3. Cost It is economical method of It is expensive method of sending sending letter because it can be letter as it requires to pay sent at minimum cost. additional charge as fixed by post office. 4. Receipt It has no provision of providing The post office provides a receipt receipt to the sender as evidence to the sender after its registration of delivery. as an evidence of delivery. 5. Recording The post office does not maintain The post office maintains the the record in the book. record in the book before delivery of letter. 6. Responsibility The post office is not responsible The post office is responsible for for the loss or damage of the the loss or damage of the letter. letter. 50 Office Management and Accountancy