Business Studies - Junior Secondary 2 - Ledger entries

TERM: 2^ND TERM

WEEK EIGHT

Class: Junior Secondary School 2

Age: 13 years

Duration: 40 minutes of 5 periods each

Date:

Subject: BUSINESS STUDIES

Topic: LEDGER ENTRIES

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

I.) Meaning of Ledger

II.) Identify the Items on the Ledger – Date, Particulars, Discounts, Folio and Amounts (Cash and Bank)

III.) Record of Cash Receipt and Cash Payments

 IV.) How to Record Cash received and Payment

 V.) Discount Received, Discount Allowed, and Contra Entries

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

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

INSTRUCTIONAL PROCEDURES

PERIOD 1-2

NOTE

LEDGER ENTRIES

Meaning of Ledger

In accounting, a ledger is a principal book or database that contains all accounts used by a company. It records financial transactions in chronological order and is often divided into different accounts, each representing a specific asset, liability, equity, revenue, or expense.

Items on the Ledger

The ledger typically includes the following items for each transaction:

- Date: The date when the transaction occurred.

- Particulars: Description of the transaction, including the name of the account(s) affected.

- Discounts: Any discounts given or received.

- Folio: The page number in the ledger where the transaction is recorded.

- Amounts: Debits (amounts received) and credits (amounts paid).

Record of Cash Receipts and Cash Payments

1. Cash Receipts: Record inflows of cash, such as sales proceeds, loans received, or investments.
2. Cash Payments: Record outflows of cash, such as payments for expenses, purchases, or loan repayments.

How to Record Cash Receipts and Payments

- Cash Receipt: Debit the Cash account and credit the respective revenue or asset account (e.g., Sales, Loan Receivable).

- Cash Payment: Credit the Cash account and debit the respective expense or liability account (e.g., Rent Expense, Accounts Payable).

Discount Received, Discount Allowed, and Contra Entries

- Discount Received: Record discounts received on purchases. Debit the Discount Received account and credit the supplier's account.

- Discount Allowed: Record discounts given to customers. Debit the customer's account and credit the Discount Allowed account.

- Contra Entries: Entries that offset each other. For example, if a customer pays with a check from the same bank, record a debit to the Bank account and a credit to the customer's account.

EVALUATION: 1. What is the meaning of Ledger?

2. Identify 5 Items on the Ledger
3.   Describe how you can Record Cash received and Payment

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively