Lesson Notes By Weeks and Term - Senior Secondary 1

Petty cash book

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Term: 2nd Term

Week: 5

Class: Senior Secondary School 1

Age: 15 years

Duration: 40 minutes of 2 periods each

Date:       

Subject:      Financial accounting

Topic:-       Petty cash book

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

  1. Define petty cash book
  2. Prepare a petty cash book wit 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 imprest system and petty cash book

 

Students pay attention and participates

STEP 3

DEMONSTRATION

She shows the learners how to prepare the petty 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

PETTY CASH BOOK

IMPREST SYSTEM : This is a system for recording petty cash transactions, which are paid out of a cash float. The system is set up by giving a specified sum known as cash float to the cashier in order to cover petty expenses during the period.

PETTY CASH BOOK: This is the book of original or prime entry which is used for recording small disbursements or expenses e.g. postages, stationery, transport etc. it is part of the double entry system. The source documents are invoices, receipts, and vouchers

 

Worked exercises on petty cash book

Question 1:

Prepare Petty Cash Book on imprest system from the following particulars for Minha Shukat Ltd.

September 2016

  1. Received for petty cash payments $ 1,000
  2. Paid for stationery $ 140
  3. Paid for postage $ 80
  4. Paid for printing charges $ 150
  5. Paid for carriage $ 125
  6. Paid for telegrams $ 25
  7. Purchased envelops $ 30
  8. Paid for coffee to office staff $ 30
  9. Paid for office cleaning $ 50
  10. Paid to Faiza Munir $ 200

 

Solution:

 

 

Question 2:

Question

Record the following transactions in a Petty Cash Book with suitable columns. The book is kept on imprest system, amount of imprest being $ 4,000.

2017

  

April 1

Petty cash in hand $ 540, Received cash to make-up the imprest.
 

Paid for office cleaning $ 100.

April 4

Paid railway fare $ 320, bus fare $ 280, wages $ 150.

April 5

Bought shorthand note books for office $ 370.

April 7

Paid carriage on parcels $ 150, paid for wages $ 220.

April 10

Bought stamps for $ 300, envelopes for $ 450 and an accounts register for $ 400.

April 12

Paid for repairs $ 200, gave tips to office peon $ 150.

April 13

Gave charity $ 100, served tea to customers $ 250.

April 15

Paid for wages $ 160, rewards to servant $ 100.

 

Solution

Petty Cash Book

Amount Received (Rs)

C.B. Folio

Date

V. No.

Particulars

Total Amount (Rs)

Conveyance

Printing & Stationery

Postage

Wages

Cartage

Miscellaneous Expenses
   

2017

                  

540

  

Apr. 01

  

Balance b/d

              

3,460

  

Apr. 01

  

Cash A/c

              
   

Apr. 01

  

Cleaning Charges A/c

100

          

100
   

Apr. 04

  

Conveyance A/c

600

600

          
   

Apr. 04

  

Wages A/c

150

      

150

    
   

Apr. 05

  

Note Books A/c

370

  

370

        
   

Apr. 07

  

Carriage A/c

150

        

150

  
   

Apr. 07

  

Wages A/c

220

      

220

    
   

Apr. 10

  

Postage A/c

300

    

300

      
   

Apr. 10

  

Envelopes A/c

450

  

450

        
   

Apr. 10

  

A/c Books A/c

400

  

400

        
   

Apr. 12

  

Repairs A/c

200

          

200
   

Apr. 12

  

Misc. Exp. A/c

150

          

150
   

Apr. 13

  

Charity A/c

100

          

100
   

Apr. 13

  

Refreshment A/c

250

          

25
   

Apr. 15

  

Wages A/c

160

      

160

    
   

Apr. 15

  

Reward A/c

100

          

100
         

3,700

600

1,220

300

530

150

900
   

Apr. 15

  

Balance c/d

300

            

4,000

        

4,000

            

300

  

Apr. 16

  

Balance b/d

              

3,700

  

Apr. 16

  

Cash A/c

              

 

 

EVALUATION :   1. Define imprest system and petty cash book

  1. Enter the following transactions in a petty cash book in analytical form. The book is kept on imprest system, amount of imprest being $ 5,000.

2016

  

April 3

Petty Cash in hand $ 420. Received cash to make-up the imprest.
 

Bought stamps for $ 300.

April 5

Paid for office cleaning $ 200 and repairs to furniture $ 250.

April 7

Paid bus fare $ 440, railway fare $ 330, wages $ 200.

April 8

Paid for charity $ 350

April 9

Bought shorthand note book for office $ 250, Carriage on parcels $ 280.

April 10

Bought envelopes $ 450, served refreshment to customers $ 150.

April 12

Paid for conveyance $ 300. Wages $ 200. Stapler pins $ 280.

April 15

Gave tips to office peon $ 250.
  1. Record the following transactions in a Petty Cash Book with suitable columns. The book is kept on imprest system, amount of imprest being $ 4,000.

2017

  

April 1

Petty cash in hand $ 540, Received cash to make-up the imprest.
 

Paid for office cleaning $ 100.

April 4

Paid railway fare $ 320, bus fare $ 280, wages $ 150.

April 5

Bought shorthand note books for office $ 370.

April 7

Paid carriage on parcels $ 150, paid for wages $ 220.

April 10

Bought stamps for $ 300, envelopes for $ 450 and an accounts register for $ 400.

April 12

Paid for repairs $ 200, gave tips to office peon $ 150.

April 13

Gave charity $ 100, served tea to customers $ 250.

April 15

Paid for wages $ 160, rewards to servant $ 100.

 

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively