# Lesson Notes By Weeks and Term - Senior Secondary 1

Three column cash book II

Term: 2nd Term

Week: 4

Class: Senior Secondary School 1

Age: 15 years

Duration: 40 minutes of 2 periods each

Date:

Subject:      Financial accounting

Topic:-       Three column cash book II

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

1. 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

 PRESENTATION TEACHER’S ACTIVITY STUDENT’S ACTIVITY STEP 1 INTRODUCTION The teacher reviews the previous lesson on exercises on three column cash book Students pay attention STEP 2 EXPLANATION She explains the meaning of three column cash book Students pay attention and participates STEP 3 DEMONSTRATION Using more exercises, she shows the learners how to prepare three 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
THREE COLUMN CAS BOOK
Question 1:
On April 1, 2017, Hassan Sajjad Store Cash Book showed debit balances of Cash \$ 1,550 and Bank \$ 13,575. During the month of April following business was transacted. You are required to prepare Cash Book?

April 2017
02 Purchased Office Type-Writer for Cash \$ 750; Cash Sales \$ 1,315.
07 Deposited Cash \$ 500 to bank.
10 Received from A. Hussain a check for \$ 2,550 in part payment of his account (not deposited).
16 Paid by check for merchandise purchased worth \$ 1,005.
20 Deposited into Bank the check received from A. Hussain.
22 Received from customer a check for \$ 775 in full settlement of his accounts (not deposited).
24 Sold merchandise to sweet Bros. for Rs 1,500 who paid by check which was deposited into bank.
26 Paid creditor a Salman \$ 915 by check.
28 Deposited into Bank the check of customer of worth \$ 775 was dated 22nd April.
29 Paid wages by cash \$ 500 and salary \$ 1,000 by bank.
30 Drew from Bank for Office use \$ 250 and Personal use \$ 150.

Solution:

Question 2:
From the following particulars make cash book of Ghulam Fatima Trading Co. for the month of November, 2016:
1 Cash balance (Cr) \$ 2,000; Bank balance \$ 40,000.
4 Cash sales \$ 3,700; Credit sales \$ 1,800 would be received at near future.
6 Paid Ahmed & Bros. by cash \$ 500; Received cash by debtors \$ 1,800.
12 Paid to vendor by means of check worth \$ 2,700.
13 Paid Utility bills in cash \$ 250; Bought goods by check \$ 750.
19 Drew from Bank for office use \$ 160; Personal withdrawal of cash \$ 1,000.
20 Received a check from Hamid \$ 2,700 and deposited into the bank.
21 Received by check from Munir \$ 1,360; Discount \$ 140 (not deposited).
25 Cash sales \$ 2,100; Paid wages by bank \$ 1,500.
28 Deposited Munir’s check into bank.
29 Payment by check to Anees for \$ 175; Discount received \$ 25.
30 Munir’s check has been dishonored and return by bank.

Solution:

Question 3:
Enter the following transactions in the Cash Book with Cash, Bank and Discount column for A R Khan and Co. for December, 2016 (all figures in Pounds):

Solution:

EVALUATION : 1. From the following transactions you are required to prepare a Three column cash book for the month of February 2006.
2006
Feb 1 Cash balance (Dr) \$ 20,000 and Bank balance (Dr) \$ 50,000
Feb 2 Bought goods and paid by cheque \$ 10,000
Feb 4 Cash sales \$ 5,000 Feb 5 Bought goods from James \$ 10,000
Feb 6 Sold goods to Raheem \$ 7,000
Feb 7 Paid Wages by cash \$ 500
Feb 10 Paid Electricity charges by cheque \$ 1,000
Feb 15 Received cheque for \$ 6,600 from Raheem in full settlement of his account
Feb 20 Paid James by cash for \$ 9,500 in full settlement of his account.
Feb 23 Paid salaries by cheque \$ 5,000
Feb 25 Received commission in cash \$ 2,000
Feb 28 Cash paid into Bank \$ 3,000
2. On January 1, 2013 Noorani Stores cash book showed debit balance of cash \$1,550 and bank \$13,575. During the month of January following business was transacted. 2013
Jan.1 Purchased office furniture for cash \$750; cash sales \$315 " Deposited cash \$500 "
4 Received from A. Hussan a cheque for \$2,550 in part payment of his account "
6 Paid by cheque for merchandise purchased worth \$1,005 "
10 Received from Hayat Khan a cheque for \$775 in full settlement of his account and allowed him discount \$15. " 12 Sold merchandise to Divan Bros. for \$1,500 who paid by cheque which was deposited in the bank. "
16 Paid Salman \$915 by cheque, discount received \$5 " 27 Paid to Gulzar Ahmad by cheque \$650 "
30 Paid salaries by cheque \$1,750 " 31 Deposited into bank the cheque of Hayat Khan. "
31 Drew from bank for office use \$250.
Required: Prepare three column cash book and balance it.
3. On January 1, 2013 Subhani Stores cash book showed the following balances
Cash \$750
bank \$6,575.
During the month of January following business was transacted.
2013
Jan.1 Purchased office equipment for cash \$350; cash sales \$315 " Deposited cash \$500 "
4 Received from Block a cheque for \$1,550 in payment of his account "
6 Paid by cheque for goods purchased worth \$ 505 "
8 Deposited into bank the cheque received from Block. " 10 Received from Quayle a cheque for \$375 in full settlement of his account and allowed him discount \$25. “ 11 Stationery purchased for \$ 45 "
12 Sold goods to Saleem Bros. for \$ 500 who paid by cheque which was deposited in the bank. "
16 Paid Salman \$488 by cheque, in full settlement of his account \$ 500. "
27 Rent paid by Cheque \$250 "
30 Paid salaries by cheque \$ 750 "
31 Commission received \$ 145 "
31 Drew from bank for office use \$250.
Required: Prepare three column cash book and balance it.
4. Prepare a triple column Cash Book from the following particulars:
2012
Jan. 1 Opening balance Cash \$.50, 000 Bank balance \$ 75,000 "
2. Drawn from bank for personal use \$ 22,000 3. Cash purchases \$ 10,000
4. Cheque given to Sam \$ 8,500
5. Wages paid by cash \$ \$ 12,000
6. Credit sales to Rajan \$ 18,000 8. Received from Rani \$ 9,900: discount \$ 100
10. Cash withdrawn for private use \$ 6,000
12. Cheque received from Rajan 17,500 in full settlement of his bill And the Cheque is deposited in the bank on 6th Jan.
15. Old furniture sold for \$ 750
16. Credit purchases from Shyam \$ 16,000
17. Income tax paid by Cheque \$ 3,250 20. Rent paid \$ 15,000
21. Cash sales \$ 16,000
22. Deposited in bank \$ 5,000 25 cash given to Shyam \$ 15950 discount \$ 50
30 sales tax paid by Cheque \$ 2,2,50
31 Interest on investments received \$ 2,000.

CLASSWORK: As in evaluation
CONCLUSION: The teacher commends the students positively