Meaning of Transactions

A transaction is an exchange or transfer of money, goods or services, often involving buying or selling, payments, receipts or record-keeping.

In homes and offices, transactions include paying for goods, receiving change, paying bills, hiring services, receipt of money, expenditures etc.

• To be able to handle money correctly.


• To avoid errors in payments and change.


• To manage budgeting in home or office.


• To understand bills, receipts, invoices.


• To perform everyday transactions confidently.

Basic Concepts

• Unit Price: the price for one unit of a good or service.


• Total Cost: unit price multiplied by quantity.


• Discount: a reduction on price (often given in shops).


• Tax / VAT (if applicable): extra cost added to goods or services.


• Change: money returned when payment is more than total cost.


• Profit and Loss: for goods sold, the difference between cost price and selling price.


• Receipts / Invoices: documents showing details of transaction — what was bought, how many, cost, etc.

• Buying groceries, paying utility bills (electricity, water).


• Paying rent, salaries.


• Buying office supplies.


• Selling items or services.


• Collecting money owed (receivables).


• Giving out petty cash.


• Making bank transactions.

• Multiplication: quantity × unit price = total cost.


• Addition: summing costs of multiple items.


• Subtraction: change given; also deduction of discount.


• Percentage: for discount; tax; profit margin.


• Division: splitting cost; determining unit prices when given total.

1. Identify what is being bought or paid for, and the unit price.


2. Determine the quantity.


3. Calculate the total cost = unit price × quantity.


4. Apply any discount or increase (tax, service charge).


5. If payment is more than cost, calculate change = payment − cost.


6. Record the transaction (receipt, invoice).


7. Check accuracy (ensure correct totals, correct change etc.).

Example 1

Problem: A pack of notebooks costs ₦150 each. If Mary buys 4 packs, how much will she pay?

Solution:

Unit price = ₦150, quantity = 4 → Total cost = 150 × 4 = ₦600.

Answer: ₦600.

Example 2

Problem: A bill for electricity is ₦7,500. If a 10% discount is offered, what is the amount after discount?

Solution:

10% of 7,500 = 0.10 × 7,500 = ₦750.

Amount after discount = 7,500 − 750 = ₦6,750.

Answer: ₦6,750.

Example 3

Problem: An invoice shows you bought 3 boxes of paper at ₦1,250 per box, and 5 pens at ₦120 each. What is your total bill?

Solution:

Cost of paper = 3 × 1,250 = ₦3,750.

Cost of pens = 5 × 120 = ₦600.

Total = 3,750 + 600 = ₦4,350.

Answer: ₦4,350.

Example 4

Problem: You pay with ₦5,000 for items costing ₦3,675. What change should you receive?

Solution:

Change = 5,000 − 3,675 = ₦1,325.

Answer: ₦1,325.

Example 5

Problem: A shop sells an item for ₦12,000. If VAT of 5% applies, what is the total price?

Solution:

5% of 12,000 = 0.05 × 12,000 = ₦600.

Total price = 12,000 + 600 = ₦12,600.

Answer: ₦12,600.

Example 6

Problem: Office supplies cost ₦18,000. You get a discount of 15%. What is the final cost?

Solution:

Discount = 15% of 18,000 = 0.15 × 18,000 = ₦2,700.

Final cost = 18,000 − 2,700 = ₦15,300.

Answer: ₦15,300.

Example 7

Problem: You brought 2 cartons of drinks at ₦8,500 each and 10 packs of biscuits at ₦250 each. How much should you pay altogether?

Solution:

Cost of drinks = 2 × 8,500 = ₦17,000.

Cost of biscuits = 10 × 250 = ₦2,500.

Total cost = 17,000 + 2,500 = ₦19,500.

Answer: ₦19,500.

Example 8

Problem: A staff salary is ₦30,000. Tax deducted is 8%. What is the take-home pay?

Solution:

Tax = 8% of 30,000 = 0.08 × 30,000 = ₦2,400.

Take-home pay = 30,000 − 2,400 = ₦27,600.

Answer: ₦27,600.

• Budgeting household expenses.


• Keeping track of office petty cash.


• Deciding best buy (price per unit).


• Preparing invoices and receipts.


• Paying utility bills correctly.


• Determining discounts or special offers.


• Salary payments after deductions.


• Banking transactions, record-keeping.

• Forgetting to include discount or tax properly.


• Using wrong quantity.


• Mixing units (paying in wrong units, e.g. per pack, per piece).


• Making arithmetic mistakes: wrong multiplication or subtraction.


• Giving incorrect change.


• Not recording or checking receipts/invoices.

1. If 5 bottles of juice cost ₦1,200 each, how much will it cost in total?


2. A stationery bill is ₦4,500. If 12% discount is given, what is amount after discount?


3. You paid ₦10,000 but your goods cost ₦7,850. How much change should you get?


4. Office cleaning cost ₦25,000 including 5% service charge. What is base cost before service?


5. One box of files costs ₦2,500, another item costs 8% more. What is the price of that other item?


6. If water bill is ₦8,400 and you pay with ₦10,000, how much change?


7. A printer is sold at ₦45,000. VAT is 7.5%. What is total cost including VAT?


8. A shop advertises “Buy 3 get 1 free” for soap bars costing ₦600 each. If you use the offer and you get 4 bars, what is the price per bar effectively?

Conclusion

Transactions in homes and offices are everywhere; understanding how to compute cost, discount, change, etc., is a very useful life skill.

Being careful with prices, quantities, arithmetic, and records (receipts, invoices) helps prevent loss or mistake.

When you practice well, you can handle money with confidence and avoid being cheated.