Business Studies - Junior Secondary 2 - Petty book
Petty book
Petty book
TERM: 2ND TERM
WEEK NINE
Class: Junior Secondary School 2
Age: 13 years
Duration: 40 minutes of 5 periods each
Date:
Subject: BUSINESS STUDIES
Topic: PETTY BOOK
SPECIFIC OBJECTIVES: At the end of the lesson, pupils should be able to
I.) Meaning of Petty Cash Book
II.) Identify Columns in a Petty Cash Book
III.) Record Receipts and Payment on the Petty Cash Book
IV.) Describe Imprest system – Cash flow Imprest, Imprest System, Retirement and Reimbursement
V.) Analyse the items of expeditions in the Petty Cash Book
VI.) Who is a Petty Cashier?
VII.) State the Need for keeping Petty Cash Book
VIII.) Prepare/Format of a Petty Cash Book
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 Petty Cash Book and it's Columns Teacher demonstrate how to record Receipts and Payment on the Petty Cash Book |
Students listens attentively to the teacher |
|
STEP 2 EXPLANATION |
Teacher describe Imprest system – (Cash flow Imprest, Imprest System, Retirement and Reimbursement) and analyse the items of expeditions in the Petty Cash Book |
Students exhibit attentiveness and active engagement |
|
STEP 3 EXPLANATION |
Teacher describe a Petty Cashier and state the Need for keeping Petty Cash Book Teacher guide students to prepare/Format of a Petty Cash Book |
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
PETTY BOOK
Meaning of Petty Cash Book
A petty cash book is a subsidiary ledger used to record small or routine expenditures incurred by a business that are typically paid for in cash. It helps track minor expenses efficiently without the need for multiple entries in the main accounting records.
Columns in a Petty Cash Book
The columns typically found in a petty cash book include:
- Date: The date of the transaction.
- Particulars: Description of the expenditure or purpose (e.g., postage, office supplies).
- Receipts: Amount received from the main cashier or replenishment of petty cash.
- Payments: Amount paid out for expenses.
- Balance: Running balance of remaining petty cash funds.
Recording Receipts and Payments in the Petty Cash Book
- Receipts: Record when additional funds are received from the main cashier to replenish the petty cash fund.
- Payments: Record when petty cash is used to pay for small expenses. Each payment should be supported by a receipt or voucher.
Imprest System
- Cash Float Imprest: Initial amount of money provided to establish the petty cash fund.
- Imprest System: A method where the petty cash fund is maintained at a fixed amount, replenished periodically to maintain that fixed amount.
- Retirement and Reimbursement: Retirement involves accounting for expenditures and requesting reimbursement from the main cashier or accounting department.
Petty Cashier
A petty cashier is responsible for managing the petty cash fund. Their duties include disbursing funds for small expenses, recording transactions in the petty cash book, obtaining receipts or vouchers for expenditures, and reconciling the petty cash balance.
Need for Keeping a Petty Cash Book
- Convenience: Facilitates easy recording and tracking of small cash transactions.
- Control: Ensures proper authorization and documentation of minor expenditures.
- Accuracy: Helps maintain accurate financial records by segregating small expenses from main accounting records.
- Transparency: Provides transparency in cash management and expenditure monitoring.
Preparation/Format of a Petty Cash Book
A typical format for a petty cash book includes:
- Date: Column for transaction date.
- Particulars: Description of the expenditure.
- Receipts: Column for receipts of cash from the main cashier.
- Payments: Column for payments made from petty cash.
- Balance: Column showing the remaining balance of petty cash after each transaction.
EVALUATION: 1. What is a Petty Cash Book?
CLASSWORK: As in evaluation
CONCLUSION: The teacher commends the students positively