Business Studies - Junior Secondary 1 - Journal

TERM: 3^RD TERM

WEEK TWO

Class: Junior Secondary School 1

Age: 12 years

Duration: 40 minutes of 5 periods each

Date:

Subject: BUSINESS STUDIES

Topic: JOURNAL

SPECIFIC OBJECTIVES: At the end of the lesson, pupils should be able to

 I.) Explain the Meaning of a Journal

II.) Draw the Correct Form of a Journal

 III.) List different Types of Journals

IV.) Identify the forms of a Journals

 V.) Identify the Content of Books of Original Entry

 V.) Use Source Documents for the Preparation of Appropriate Books of Original Entry.

 VI.) Enter correctly, Information from Source Documents into Books of Original Entry

INSTRUCTIONAL TECHNIQUES: Identification, explanation, questions and answers, demonstration, videos from source

INSTRUCTIONAL MATERIALS: Videos, loud speaker, textbook, pictures,

INSTRUCTIONAL PROCEDURES

PERIOD 1-2

NOTE

JOURNAL

A journal, in accounting, is a chronological record of financial transactions of a business. It is the first step in the accounting cycle where transactions are initially recorded before being transferred to ledgers for further analysis and summarization. The journal records transactions in order of occurrence, providing a detailed account of each transaction.

Correct Form of a Journal

The correct form of a journal typically includes the following columns:

1. Date: The date when the transaction occurred.
2. Account Title: The title of the account to be debited or credited.
3. Journal Entry Description: A brief description of the transaction.
4. Debit Amount: The amount to be debited.
5. Credit Amount: The amount to be credited.

Below is an example of a simple journal entry format:

Different Types of Journals

There are various types of journals used in accounting, including:

1. Sales Journal: Records credit sales of goods or services.
2. Purchases Journal: Records credit purchases of goods or services.
3. Cash Receipts Journal: Records all cash received by the business.
4. Cash Disbursements Journal: Records all cash payments made by the business.
5. General Journal: Records non-routine or adjusting entries that do not fit into the specialized journals mentioned above.

Forms of Journals

Journals can be maintained manually in physical books or electronically using accounting software. In manual form, journals are typically bound books with pre-printed columns for ease of recording transactions. In electronic form, journals are part of accounting software where entries are recorded and stored digitally, facilitating faster processing and analysis.

Content of Books of Original Entry (Journals)

Books of original entry, or journals, contain the following content for each transaction:

- Date: Date of the transaction.

- Account Title: Name of the account to be debited or credited.

- Description: Brief explanation of the transaction.

- Debit Amount: Amount entered in the debit column.

- Credit Amount: Amount entered in the credit column.

Using Source Documents for Preparation of Books of Original Entry

To prepare journals using source documents:

1. Review Source Documents: Examine invoices, receipts, vouchers, or other source documents.
2. Identify Transaction Details: Note the date, description, and amounts involved in each transaction.
3. Classify Transactions: Determine which accounts (e.g., cash, sales, accounts payable) are affected by the transaction.
4. Prepare Journal Entries: Record transactions in the appropriate journal (e.g., sales journal, cash receipts journal) using the correct format.
5. Verify Accuracy: Ensure that entries match the information provided in the source documents and comply with accounting principles.

Entering Information from Source Documents into Books of Original Entry

To enter information accurately into journals:

I.) Transfer information from source documents to the journal, recording dates, account titles, descriptions, debit amounts, and credit amounts.

II.) Follow double-entry bookkeeping principles to ensure that total debits equal total credits for each transaction.

III.) Maintain chronological order and ensure entries are legible and properly documented.

IV.) Review entries for accuracy and completeness before transferring them to ledgers for further analysis and reporting.

   EVALUATION: 1. Explain the Meaning of a Journal

2. Identify 4 types of Journals
3. Identify all the Content of Books of Original Entry
4. Mention the 4 forms of a Journals

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively