Lesson Notes By Weeks and Term - Junior Secondary School 1

SUBJECT:  BUSINESS STUDIES           

CLASS:  JSS1

DATE:

TERM: 3RD TERM

WEEK THREE

TOPIC: DOUBLE ENTRY BOOK-KEEPING

CONTENT

1. Meaning of Double Entry Principle.
2. Illustration of the principle of double entry.

The Double Entry principle: The double entry principle states that for every credit entry there must be a corresponding debit entry and vice versa.

For a proper understanding of this principle, it must be borne in mind that every business is a separate entity, and every account of a business is personified i.e. deemed to be capable of acting as a person and so can receive something and can give out something.

From the above explanation, it follows therefore that what one account gave out was received by another account. In accounting a giver is referred to as a creditor and a receiver is called a debtor. That is, any account that receives is a debtor and any account that gives is a creditor. 

Example: Mr. Obi started a business with a cash of N10, 000 the double entry is debit cash account and credit capital account (2) sold goods for cash N1000 the double entry is debit cash account and credit sales account, etc. 

EVALUATION

1. What is the principle of double entry?
2. What is Separate entity concept? 

READING ASSIGNMENT

Read Essential financial Accounting by O. A. Longer pages 9 to 12

WABP Business Studies JSS2 by Egbe Ehiametalor et al pages 96-107

GENERAL EVALUATION

1. Define Sole proprietorship
2. State four characteristics of sole proprietorship.
3. State four advantages of sole proprietorship.
4. Mention four sources of capital for sole trader.
5. Which is the oldest form of business organization?

WEEKEND ASSIGNMENT  

1. When goods are sold on credit to Mr. Eze for N50,000 the double entry is debit Mr. Eze’s account and credit  A. Sales a/c B. Eze’s a/c C. Purchases a/c D. capital a/c 
2. In accounting a giver is called A. debtor  B. creditor  C. taker  D. saver  
3. A receiver in accounting is referred to as  A. debtor  B. creditor  C. manufacturer  D. retailer 
4. To debit an account means place some valu e on the _____ side of an account  A. right  B. left  C. left and right  D. all of the above 
5. To credit an account means to place an amount on the _____ side of an account  A. right / credit  B. left  / debit  C. both  A. and  B. above  D. none of the above

THEORY

1. Define the double entry principle  
2. In the following transactions state the account to be debited and credited  A. sold  goods for cash  B. Bought  goods for cash  C. started business with N10,000 cash.