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### Lesson Plan: Financial Accounting – Petty Cash Book II
**Grade Level:** Senior Secondary 1
**Subject:** Financial Accounting
**Topic:** Petty Cash Book II
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#### Objectives:
By the end of the lesson, students should be able to:
1. Understand the importance and function of a petty cash book.
2. Record transactions in a petty cash book using the imprest system.
3. Differentiate between types of expenses recorded in the petty cash book.
4. Prepare and balance a petty cash book.
#### Materials Needed:
- Textbook/Handout on Petty Cash Book
- Whiteboard and Markers
- Sample Petty Cash Vouchers
- Practice Worksheets
- Calculators
#### Duration:
- 1 hour (60 minutes)
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#### Lesson Outline:
**Introduction (10 minutes)**
1. **Welcome and Attendance:** Greet students and take attendance.
2. **Review Previous Lesson:** Briefly recap Petty Cash Book I - Introduction to Petty Cash, its purpose, and limitations.
3. **Lesson Overview:** Explain the objectives of the lesson and what students will be doing.
**Instructional Input (15 minutes)**
1. **Definition and Purpose:**
- Explain what a petty cash book is and why it is used in businesses.
- Emphasize the importance of recording minor and incidental expenses.
2. **Imprest System:**
- Describe the imprest system, where a fixed amount of cash is maintained.
- Example: If the imprest amount is $200, it will be replenished to $200 at the end of a period.
3. **Components of a Petty Cash Book:**
- Columns: Date, Voucher Number, Details, Amount, and Analysis Columns (e.g., Postage, Stationery).
- Show a sample petty cash book on the whiteboard or projector.
**Guided Practice (15 minutes)**
1. **Recording Transactions:**
- Demonstrate how to record a series of transactions in the petty cash book.
- Example:
- 1 Jan: Bought postage stamps, $10.
- 2 Jan: Purchased writing pads, $15.
- 3 Jan: Paid for taxi fare, $20.
2. **Balancing the Book:**
- Show students how to total the columns and balance the petty cash book.
- Example: Total expenses for the period and how to request replenishment.
**Independent Practice (15 minutes)**
1. **Worksheet Activity:**
- Hand out practice worksheets with a list of transactions for a week.
- Students will complete the petty cash book individually or in pairs.
**Conclusion and Review (10 minutes)**
1. **Review Key Points:**
- Go over filling out the petty cash book, balancing it, and using the imprest system.
2. **Questions and Answers:**
- Allow time for students to ask any outstanding questions.
- Provide clarification and additional examples if necessary.
3. **Homework/Assignment:**
- Assign a few transactions as homework for students to practice at home.
- Encourage students to review the day's notes and prepare questions for the next class.
#### Assessment:
- Observe student participation and understanding during the guided practice.
- Collect and review the completed worksheets to assess comprehension.
- Evaluate the homework for correct entries and balancing of the petty cash book.
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#### References:
1. Textbook Chapter on Petty Cash Book.
2. Handout: Sample Petty Cash Book Format and Transactions.
3. Online Resources on Financial Accounting Principles.
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This lesson plan provides a comprehensive guide to teaching senior secondary students about recording and managing petty cash using the imprest system. By following this outline, students will gain a solid understanding and practical skills in managing petty cash within a business context.