Business Studies - Junior Secondary 2 - Cash book
Cash book
Cash book
TERM: 2ND TERM
WEEK TEN
Class: Junior Secondary School 2
Age: 13 years
Duration: 40 minutes of 5 periods each
Date:
Subject: BUSINESS STUDIES
Topic: CASH BOOK
SPECIFIC OBJECTIVES: At the end of the lesson, pupils should be able to
I.) Meaning of Cash Book
II.) Identify the Types of Cash Book – Single Column Cash Book, Two column Cash Book
III.) Identify the Item as a Cash Book
V.) Prepare a Cash Book
VI.) Records Cash Receipts in a Cash Book
VII.) Records Bank Transaction and Cash Book
VIII.) Differentiate between Cash Book and Petty Cash
INSTRUCTIONAL TECHNIQUES: Identification, explanation, questions and answers, demonstration, videos from source
INSTRUCTIONAL MATERIALS: Videos, loud speaker, textbook, pictures,
INSTRUCTIONAL PROCEDURES
PERIOD 1-2
|
PRESENTATION |
TEACHER’S ACTIVITY |
STUDENT’S ACTIVITY |
|
STEP 1 INTRODUCTION |
The teacher explains the meaning of Cash Book and discuss the types of Cash Book – (Single Column Cash Book, Two column Cash Book) Teacher highlights the Item as a Cash Book |
Students listens attentively to the teacher |
|
STEP 2 EXPLANATION |
Teacher guide students to prepare a Cash Book and records Cash Receipts in a Cash Book |
Students exhibit attentiveness and active engagement |
|
STEP 3 EXPLANATION |
Teacher discuss the differences between Cash Book and Petty Cash |
Students exhibit attentiveness and active engagement |
|
STEP 4 NOTE TAKING |
The teacher writes a summarized note on the board |
The students copy the note in their books |
NOTE
CASH BOOK
A cash book is a primary accounting record used to record all cash transactions, including cash receipts and cash payments, for a specific period. It serves as a ledger account and is part of the double-entry accounting system.
Types of Cash Book
- Records only cash transactions.
- Has columns for date, particulars (description of transaction), and amount.
- Suitable for small businesses with minimal bank transactions.
- Records both cash and bank transactions.
- Has separate columns for cash transactions (cash column) and bank transactions (bank column).
- Suitable for businesses with frequent bank transactions and cash transactions.
Items in a Cash Book
Items recorded in a cash book include:
- Cash receipts: Money received in cash from sales, loans, investments, etc.
- Cash payments: Money paid out in cash for expenses, purchases, salaries, etc.
- Bank receipts: Money received in the bank through deposits, transfers, etc.
- Bank payments: Money paid out through checks, electronic transfers, etc.
Cash Column, Bank Column, and Discount Column
- Cash Column: Records all cash receipts and payments.
- Bank Column: Records all bank receipts and payments.
- Discount Column: Records discounts received or allowed on transactions.
Preparation of a Cash Book
- Determine the format (single column or two-column) based on the business's needs.
- Open the cash book with the opening balance of cash on hand and bank balance (if using a two-column cash book).
- Record cash receipts and payments daily, ensuring accuracy and completeness.
- Calculate and update the closing balance after each transaction.
Recording Cash Receipts in a Cash Book
- Date: Record the date of the transaction.
- Particulars: Description of the source of cash (e.g., sales, loan received).
- Cash Receipts (CR): Record the amount received in cash.
- Discount: Record any discount received, if applicable.
- Total: Calculate the total amount received and update the cash balance.
Recording Bank Transactions in a Cash Book
- Date: Record the date of the bank transaction.
- Particulars: Description of the bank transaction (e.g., deposit, withdrawal).
- Bank (BR): Record the amount received or paid through the bank.
- Discount: Record any discount applicable to the bank transaction.
- Total: Calculate the total bank amount and update the bank balance.
Difference between Cash Book and Petty Cash
|
Cash Book |
Petty Cash Book |
|
Records all cash and bank transactions of the business, maintained for the entire organization. |
Records small cash transactions and expenses for minor day-to-day expenditures, maintained by a petty cashier. |
EVALUATION: 1. What is the meaning of Cash Book?
CLASSWORK: As in evaluation
CONCLUSION: The teacher commends the students positively