Term: 2^ndTerm

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

Explain the meaning of double column cash book
Prepare a double column cash book using provided details

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Sometimes surplus cash is paid into the bank, or money may be withdrawn from the bank to the office.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To record cash withdrawn from the bank for office use: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.
	The cheque was deposited into bank.
31	Bank charges as shown in Pass Book	5
	Paid Salary	500

Solution

Cash Book
Dr.									Cr.
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

Enter the following transactions in two Column cash book and find out the cash and bank balance∶

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

Lesson Notes By Weeks and Term - Senior Secondary 1