Lesson Notes By Weeks and Term - Senior Secondary 1

Term: 2^nd Term

Week: 3

Class: Senior Secondary School 1

Age: 15 years

Duration: 40 minutes of 2 periods each

Date:       

Subject:      Financial accounting

Topic:-       Three column cash book

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

1. Explain the meaning of three column cash book
2. Prepare a three 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

NOTE

THREE COLUMN CASH BOOK

This is similar to the two column cash book except that the discount column is added to both the debit side and the credit side. The debit side, it will be recalled, records receipts while the credit side records payments. The purpose of the discount column in the debit side is, therefore, to record discounts which are allowed to customers when the business receives cash from them. Similarly, the discount column on the credit side is for discounts which the business receives from its suppliers when payments are made to them.

Example

During May 2016, the John Trading Company made the following transactions:

• May 01: Cash balance $2,200, bank overdraft $365.

• May 03: Paid J & Co. by cheque $1,200, discount received amounting to $15.

• May 05: Received from A & Co. a cheque for $980, discount allowed to them $20.

• May 07: Deposited into bank the check received from A & Co. on May 05.

• May 10: Purchased stationery for cash, $150.

• May 15: Purchased merchandise for cash, $1,300.

• May 15: Cash sales for the first half of the month, $2,350.

• May 16: Deposited into bank $1,600.

• May 18: Cash withdrawn from bank for personal expenses $150.

• May 19: Issued a cheque for merchandise purchased, $1,650.

• May 21: Drew cash from bank for office use, $650.

• May 24: Received a cheque from S & Sons and deposited it into bank, $1,560.

• May 25: Paid a cheque to Ali Inc. for $400 and received a discount of $15.

• May 27: Purchased furniture in cash for office use, $390.

• May 29: Paid office rent by cheque, $450.

• May 30: Cash sales for the second half of the month, $4,300.

• May 31: Paid salaries by check, $1,760.

• May 31: Withdrew cash from bank for office use, $1,470.

SOLUTION

EVALUATION :   1. Define three column cash book

2. From the following particulars make a three column cash book of Ghulam Fatima Trading Co. for the month of November, 2016:       

                             Nov 1 Cash balance (Cr) N 2,000; Bank balance N40,000

                             Nov 4 Cash sales N 3,700; Credit sales N 1,800 would be received at near future. 

                             Nov 6 Paid Ahmed & Bros. by cash N  500; Received cash by debtors N 1,800. 

                             Nov 12 Paid to vendor by means of check worth N2,700. 

                             Nov 13 Paid Utility bills in cash N 250; Bought goods by check N 750. 

                             Nov 19 Drew from Bank for office use N 160; Personal withdrawal of cash N 1,000. 

                             Nov 20 Received a check from Hamid N 2,700 and deposited into the bank. 

                             Nov 21 Received by check from Munir N 1,360; Discount N 140 (not deposited). 

                             Nov 25 Cash sales N 2,100; Paid wages by bank N1,500. 

                             Nov 28 Deposited Munir’s check into bank. 

                             Nov 29 Payment by check to Anees for N 175; Discount received N 25. 

                             Nov 30 Munir’s check has been dishonored and return by bank.

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively