Lesson Notes By Weeks and Term - Senior Secondary 1
Double column cash book
Double column cash book
Term: 2nd Term
Week: 2
Class: Senior Secondary School 1
Age: 15 years
Duration: 40 minutes of 2 periods each
Date:
Subject: Financial accounting
Topic:- Double column cash book
SPECIFIC OBJECTIVES: At the end of the lesson, pupils should be able to
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 reviews the previous lesson on exercises on single column cash book |
Students pay attention |
|
STEP 2 EXPLANATION |
She explains the meaning of cash book and double column cash book
|
Students pay attention and participates |
|
STEP 3 DEMONSTRATION |
She shows the learners how to prepare a double column cash book |
Students pay attention and participate |
|
STEP 4 NOTE TAKING |
The teacher writes a summarized note on the board |
The students copy the note in their books |
NOTE
DOUBLE COLUMN CASH BOOK
As a business grows, the owner will realize the need to open a bank account where the business money can be kept. The business will therefore prepare a two column (or double column) Cash Book to record the movements of money. The Cash Account and the Bank Account will appear side-by-side in the Cash Book.
The rules of double entry bookkeeping are still applied. Any money received is debited in the Cash Book. If the money is placed in the cash till, it will be entered in the cash column and if it is paid into the bank or received as cheque, it will be entered in the bank column.
Any money paid out is credited in the Cash Book. If the money is paid in cash it will be entered in the cash column and if it is paid by cheque, it will be entered in the bank column.
The Cash Account and the Bank Accounts must be balanced separately at appropriate interval to determine the Cash in Hand and the Cash at Bank
ContraEntries
Sometimes surplus cash is paid into the bank, or money may be withdrawn from the bank to the office. Such transactions are known contra entries because they appear on both sides of the Cash Book.
A contra entry occurs when the double entry records of a transaction occurs in the same ledger. To record cash removed from the office and paid into the bank:
Debit Bank Account Credit Cash Account
To record cash withdrawn from the bank for office use:
Debit Cash Account Credit Bank Account
In each case, the letter “c”is usually entered in the folio column of the cash book to indicate that the double entry is on the opposite side of the same book.
Examples
Write the following transactions in a Two Column Cash Book and balance the Cash Book:−
|
2021 |
(₹) |
|
|
Jan. 1 |
Cash in hand |
6,000 |
|
Bank Balance (Cr) |
3,000 |
|
|
3 |
Deposited into Bank |
2,000 |
|
5 |
Received from Miriam |
400 |
|
Discount allowed |
10 |
|
|
7 |
Received a cheque from Harry and sent it to bank |
600 |
|
9 |
Received a cheque from Precious |
1,600 |
|
Discount allowed |
25 |
|
|
12 |
Withdrew from bank for office use |
300 |
|
13 |
Bought goods for cash |
600 |
|
14 |
Sold goods for cash |
1,200 |
|
16 |
Paid to Ganiyu by cheque |
494 |
|
Discount received |
6 |
|
|
18 |
Precious cheque deposited in the bank |
|
|
20 |
Sold goods to Ganiyu for 1,500 for which he gave cash 800 and a cheque of 700. |
|
|
22 |
Deposited into bank (including Ganiyu's cheque) |
900 |
|
24 |
Paid rent by cheque |
150 |
|
25 |
Withdrew from bank for personal use |
200 |
|
28 |
Bank notifies that Precious' cheque was dishonoured |
|
|
30 |
Received from Abraham 270 in cash and 540 by cheque. |
|
|
Discount Allowed 90. |
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The cheque was deposited into bank. |
||
|
31 |
Bank charges as shown in Pass Book |
5 |
|
Paid Salary |
500 |
Solution
|
Cash Book |
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Dr. |
Cr. |
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|
Date |
Particulars |
L.F. |
Cash (N) |
Bank (N) |
Date |
Particulars |
L.F. |
Cash (N) |
Bank (N) |
|
|
2021 |
2021 |
|||||||||
|
Jan. 01 |
Balance b/d |
6,000 |
Jan. 01 |
Balance b/d |
3,000 |
|||||
|
Jan. 03 |
Cash A/c |
C |
2,000 |
Jan. 03 |
Bank A/c |
C |
2,000 |
|||
|
Jan. 05 |
Miriam |
400 |
Jan. 12 |
Cash A/c |
C |
300 |
||||
|
Jan. 07 |
Harry |
600 |
Jan. 13 |
Purchases A/c |
600 |
|||||
|
Jan. 12 |
Bank A/c |
C |
300 |
Jan. 16 |
Ganiyu |
494 |
||||
|
Jan. 14 |
Sales A/c |
1,200 |
Jan. 22 |
Bank A/c |
C |
200 |
||||
|
Jan. 18 |
Cheques- in- Hand A/c |
1,600 |
Jan. 24 |
Rent A/c |
150 |
|||||
|
Jan. 20 |
Gopal |
800 |
Jan. 25 |
Drawings A/c |
200 |
|||||
|
Jan. 22 |
Cheques-in- Hand A/c |
700 |
Jan. 28 |
Precious |
1,600 |
|||||
|
Jan. 22 |
Cash A/c |
C |
200 |
Jan. 31 |
Bank Charges A/c |
5 |
||||
|
Jan. 30 |
Anil |
270 |
540 |
Jan. 31 |
Salary A/c |
500 |
||||
|
Jan. 31 |
Balance c/d |
109 |
Jan. 31 |
Balance c/d |
5,670 |
|||||
|
8,970 |
5,749 |
8,970 |
5,749 |
|||||||
|
Feb. 01 |
Balance b/d |
5,670 |
Feb. 01 |
Balance b/d |
109 |
|||||
EVALUATION: 1. Explain the meaning of single column cash book
|
2021 |
(N) |
|
|
Jan. 1 |
Started business with cash |
20,000 |
|
Jan. 2 |
Opened a current account with the G.T.B. |
8,000 |
|
Jan. 3 |
Bought goods by cheque |
150 |
|
Jan. 4 |
Received cheque from Ram |
200 |
|
Jan. 5 |
Sold goods for cash |
40 |
|
Jan. 7 |
Paid into bank: |
|
|
(i) Cash 30 |
||
|
(ii) Cheque 200 |
230 |
|
|
Jan. 8 |
Paid Shola by cheque |
345 |
|
Jan. 8 |
Paid carriage by cheque |
180 |
|
Jan. 10 |
Drew cash from bank for office use |
200 |
|
Jan. 30 |
Paid wages by cheque |
60 |
CLASSWORK: As in evaluation
CONCLUSION: The teacher commends the students positively