Lesson Note on Cash Book: Two Column and Three Column Cash Book for SSS 2

Class: Senior Secondary School 2 (SS2 / SSS2)

Term: 1st Term

Week: 7

Age: 16 years

Duration: 45 minutes

Subject: Store Management

Curriculum Theme: Accounting Records

Previous Lesson: Subsidiary Books: Return Inwards and Cash Book Basics.

Topic: Cash book cont.

Subject Matter: Meaning of cash book (book of original entry for cash and bank transactions), double or two column cash book, three column cash book, more illustration and examples

Specific Objectives

By the end of the lesson, pupils should be able to:

Cognitive Domain:

• Define a cash book as a book of original entry.
• Differentiate between a double column and a three column cash book.
• Identify the correct entries for cash, bank, and discount transactions in a cash book.

Affective Domain:

• Appreciate the importance of accurately recording cash and bank transactions.
• Develop a keen interest in maintaining proper accounting records.

Psychomotor Domain:

• Prepare a double column cash book from given transactions.
• Prepare a three column cash book from given transactions, including discount entries.

Social Domain:

• Collaborate with peers to solve practical cash book problems.

Reference Materials

The following resources were used in planning this lesson:

• Senior Secondary Schools Education Curriculum
• State Unified Scheme of Work
• Oyediran, S.O. (2018). Financial Accounting for Senior Secondary Schools. Lagos: University Press Plc.

Instructional Materials

The teacher will teach this lesson with the aid of:

• Chart showing cash book ruling (double and three column formats)
• Sample transactions for recording
• Calculator

Rationale for the Lesson

This lesson helps pupils understand how to systematically record cash and bank transactions, which is essential for managing finances in any business. It enables them to keep accurate records, preventing errors and ensuring proper financial control.

Prerequisite/Previous Knowledge

Pupils have prior knowledge of basic accounting concepts, the double-entry system, and the introductory aspects of a single column cash book.

Lesson Content/Board Summary

Cash Book

Meaning of Cash Book

A cash book is a book of original entry and a ledger account used to record all cash and bank transactions. It is used to record receipts (money coming in) and payments (money going out) of cash and transactions through the bank. It serves as both a journal and a ledger.

Double Column Cash Book

A double column cash book has two money columns on both the debit and credit sides: one for Cash and one for Bank. It records all cash receipts and payments, as well as bank deposits and withdrawals. Cash transactions affect the cash column, while bank transactions affect the bank column.

Format:

| Date | Particulars | Folio | Cash (₦) | Bank (₦) | Date | Particulars | Folio | Cash (₦) | Bank (₦) |
|—|—|—|—|—|—|—|—|—|—|
| | | | | | | | | | |

Example 1: Recording Transactions in a Double Column Cash Book

Record the following transactions in a double column cash book for January 2024:

Jan 1: Cash in hand ₦5,000, Cash at bank ₦20,000

Jan 5: Received cash from debtor, Ada ₦3,000

Jan 8: Paid rent by cheque ₦2,500

Jan 12: Deposited cash into bank ₦4,000

Jan 15: Paid salaries in cash ₦1,500

Solution:

NOTE: “C” in the folio column indicates a Contra entry (transaction affecting both cash and bank columns, e.g., cash deposited into bank or cash withdrawn from bank for office use).

Three Column Cash Book

A three column cash book has three money columns on both the debit and credit sides: Discount, Cash, and Bank. It records cash, bank, and cash discount transactions. Discount allowed (given to customers for early payment) is recorded on the debit side, and discount received (obtained from suppliers for early payment) is recorded on the credit side.

Format:

| Date | Particulars | Folio | Discount (₦) | Cash (₦) | Bank (₦) | Date | Particulars | Folio | Discount (₦) | Cash (₦) | Bank (₦) |
|—|—|—|—|—|—|—|—|—|—|—|—|
| | | | | | | | | | | | |

Example 2: Recording Transactions in a Three Column Cash Book

Record the following transactions in a three column cash book for February 2024:

Feb 1: Cash in hand ₦10,000, Cash at bank ₦30,000

Feb 3: Received cheque from Kunle ₦4,800, allowed him discount ₦200

Feb 7: Paid Musa by cheque ₦7,500, received discount ₦500

Feb 10: Cash sales ₦6,000

Feb 14: Withdrew cash from bank for office use ₦2,000

Solution:

Teaching Methods/Instructional Techniques

Discussion, Lecture, Demonstration, Question and Answer, Visual Aids

Instructional Procedures

Step 1: Introduction

Time: 5 minutes

Teaching Skill: Set Induction

Teacher’s Activity: The teacher reviews the previous lesson on the single column cash book and introduces the topic of double and three column cash books, highlighting their importance in recording different types of transactions.

Pupils’ Activity: Pupils respond to questions about the previous lesson and listen attentively to the introduction of the new topic.

Learning Point: Pupils recall prior knowledge and are prepared for the new lesson.

Step 2: Explanation of Double Column Cash Book

Time: 6 minutes

Teaching Skill: Explanation/Illustration

Teacher’s Activity: The teacher explains the concept of a double column cash book, detailing the cash and bank columns. The teacher uses the chart to illustrate the ruling and explains how cash and bank transactions are recorded on the debit and credit sides.

Pupils’ Activity: Pupils listen, observe the chart, and ask questions for clarification.

Learning Point: Pupils understand the structure and purpose of a double column cash book.

Step 3: Worked Example (Double Column)

Time: 7 minutes

Teaching Skill: Demonstration

Teacher’s Activity: The teacher demonstrates how to record sample transactions in a double column cash book on the board, explaining each entry step-by-step, including contra entries.

Pupils’ Activity: Pupils copy the example into their notes and ask questions on any unclear steps.

Learning Point: Pupils learn the practical application of recording transactions in a double column cash book.

Step 4: Explanation of Three Column Cash Book

Time: 6 minutes

Teaching Skill: Explanation/Illustration

Teacher’s Activity: The teacher introduces the three column cash book, explaining the addition of the discount column. The teacher clarifies how discount allowed (debit) and discount received (credit) are recorded, along with cash and bank transactions.

Pupils’ Activity: Pupils listen, observe the chart, and understand the concept of the discount column.

Learning Point: Pupils grasp the expanded structure and function of a three column cash book.

Step 5: Worked Example (Three Column)

Time: 7 minutes

Teaching Skill: Demonstration

Teacher’s Activity: The teacher demonstrates recording sample transactions in a three column cash book on the board, including those involving discount allowed and discount received, and explains the balancing process.

Pupils’ Activity: Pupils copy the example and follow the teacher’s steps to record the transactions.

Learning Point: Pupils gain practical skills in preparing a three column cash book with discount entries.

Step 6: Further Practice/Clarification

Time: 5 minutes

Teaching Skill: Guided Practice

Teacher’s Activity: The teacher provides additional short transactions for pupils to attempt individually or in pairs, offering guidance and correcting errors as they arise.

Pupils’ Activity: Pupils attempt to record the transactions and seek clarification on challenging aspects.

Learning Point: Pupils reinforce their understanding and improve their accuracy in cash book preparation.

Step 7: Evaluation/Review

Time: 5 minutes

Teaching Skill: Questioning/Assessment

Teacher’s Activity: The teacher evaluates the learning by asking the following questions:

1. What is a cash book and what is its primary purpose?
2. Distinguish between a double column and a three column cash book.
3. Identify the columns found on the debit side of a three column cash book.
4. If cash is deposited into the bank, how is this recorded in a double column cash book?

Pupils’ Activity: Pupils answer orally and in writing.

Learning Point: Pupils demonstrate understanding of the lesson.

Step 8: Conclusion

Time: 2 minutes

Teaching Skill: Summarization

Teacher’s Activity: The teacher summarizes the key points of the lesson, emphasizing the importance of accurate record-keeping in cash books. The teacher gives an assignment to prepare a cash book from a set of transactions.

Pupils’ Activity: Pupils listen to the summary and note down the assignment.

Learning Point: Pupils consolidate their learning and are given further practice.

Lesson Keywords

• Cash Book – A book of original entry and a ledger account for recording all cash and bank transactions.
• Double Column Cash Book – A cash book with cash and bank columns on both debit and credit sides.
• Three Column Cash Book – A cash book with discount, cash, and bank columns on both debit and credit sides.
• Contra Entry – A transaction that affects both the cash and bank columns of a cash book (e.g., cash deposited into bank or cash withdrawn from bank for office use).
• Discount Allowed – A reduction in the amount payable by a debtor, recorded on the debit side of the discount column.
• Discount Received – A reduction obtained from a creditor, recorded on the credit side of the discount column.

Differentiation

For pupils who grasp the concepts quickly, the teacher will provide more complex transactions for practice, including scenarios that require careful analysis. For pupils who need more support, the teacher will provide simplified examples, offer one-on-one guidance, and encourage peer tutoring.

Note for teachers using this lesson plan

Ensure that pupils understand the debit and credit rules for each column (cash, bank, and discount). Emphasize the concept of contra entries thoroughly. Provide ample practice with varied examples to build confidence and accuracy in preparing cash books. Encourage the use of calculators for speed and accuracy in balancing.