Class: Senior Secondary School 1 (SS1, SS 1, SSS1, SSS 1)
Term: 1st Term
Week: 7
Age: 15 years
Duration: 45 minutes
Subject: Financial Accounting
Curriculum Theme: Financial Accounting
Previous Lesson: Double Entry and Three Column Cash Book II.
Topic: ANALYTICAL CASH BOOK
Subject Matter: Meaning of petty cash book, advantages of petty cash book, analytical petty cash book, imprest system, recording petty cash transactions.

Specific Objectives

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

Cognitive Domain:

Define a petty cash book.
State three advantages of using a petty cash book.
Explain the imprest system of petty cash management.
Identify the various columns in an analytical petty cash book.

Affective Domain:

Appreciate the importance of proper record-keeping for small expenses.
Develop an interest in maintaining accurate financial records.

Psychomotor Domain:

Prepare a simple analytical petty cash book.
Record petty cash transactions accurately using the imprest system.

Participate actively in class discussions on petty cash management.

Reference Materials

The following resources were used in planning this lesson:

9 Years Basic Education Curriculum for Financial Accounting (Senior Secondary).
State Unified Scheme of Work for Senior Secondary Schools.
Frank Wood’s Business Accounting 1 by Frank Wood and Alan Sangster.
https://nigerianwiki.com/accounting/petty-cash-book/
https://www.accountingcoach.com/petty-cash/explanation

Instructional Materials

The teacher will teach this lesson with the aid of:

Charts showing a specimen of an analytical petty cash book.
Sample invoices and receipts for petty expenses.
A specimen of a completed petty cash book.

Rationale for the Lesson

This lesson helps pupils understand how small, everyday expenses are managed and recorded in businesses. Understanding the petty cash book and the imprest system enables pupils to appreciate internal control measures and accurate financial reporting, which is important for any business operation.

Prerequisite/Previous Knowledge

Pupils have prior knowledge of the main cash book and basic accounting concepts from previous lessons.

Lesson Content/Board Summary

ANALYTICAL CASH BOOK

Meaning of Petty Cash Book

A petty cash book is a subsidiary book used to record small, day-to-day cash expenses that are too small to be conveniently recorded in the main cash book. It helps in managing minor expenditures efficiently.

Advantages of Petty Cash Book

The following are advantages of using a petty cash book:

It saves time by reducing the number of entries in the main cash book.
It allows for better control over small expenses.
It reduces the workload of the main cashier.
It provides a detailed record of minor expenditures.
It helps in classifying expenses for easy analysis.

The Imprest System

The imprest system is a method of operating a petty cash book where a fixed amount of money (the imprest amount) is given to the petty cashier at the beginning of a period. At the end of the period, the petty cashier is reimbursed for the exact amount spent, bringing the fund back to its original fixed amount.

Analytical Petty Cash Book

An analytical petty cash book is a type of petty cash book that has several analysis columns on the payments side. These columns are used to classify and summarise different types of expenses incurred, such as stationery, transport, cleaning, etc. This helps in easy reconciliation and reporting of expenses.

Recording Transactions in an Analytical Petty Cash Book

When recording transactions in an analytical petty cash book, entries are made on the receipts side for money received (e.g., from the main cashier). Payments are recorded on the payments side, with the amount also being entered into the appropriate analysis column (e.g., transport, stationery, sundry expenses).

Example categories of analysis columns include:

Transport
Stationery
Postage
Cleaning
Refreshments
Sundry Expenses (for items not fitting other categories)

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 greets the pupils and asks them to recall what they know about the main cash book and why businesses need to keep financial records. The teacher then introduces the topic, “Analytical Cash Book,” explaining that businesses also have small expenses that need to be recorded.
Pupils’ Activity: Pupils respond to questions about the main cash book and the importance of record-keeping. They listen attentively to the introduction of the new topic.
Learning Point: Pupils connect previous knowledge to the new topic and understand the need for recording small expenses.

Step 2: Meaning of Petty Cash Book

Time: 8 minutes
Teaching Skill: Explanation/Definition
Teacher’s Activity: The teacher explains the meaning of a petty cash book, highlighting that it is used for small, recurring expenses. The teacher provides examples of such expenses like transport fares, postage, and stationery.
Pupils’ Activity: Pupils listen, take notes, and ask questions for clarification. They define petty cash book in their own words.
Learning Point: Pupils understand the definition and purpose of a petty cash book.

Step 3: Advantages of Petty Cash Book

Time: 7 minutes
Teaching Skill: Listing/Explanation
Teacher’s Activity: The teacher discusses and lists the advantages of maintaining a petty cash book, such as saving time, better control over small expenses, and reducing the main cashier’s workload. The teacher uses the chart to illustrate.
Pupils’ Activity: Pupils listen, take notes, and contribute their ideas on the advantages. They list the advantages in their notebooks.
Learning Point: Pupils can identify and explain the benefits of using a petty cash book.

Step 4: The Imprest System

Time: 8 minutes
Teaching Skill: Explanation/Demonstration
Teacher’s Activity: The teacher explains the imprest system of petty cash management. The teacher uses practical examples to show how a fixed amount is issued and then reimbursed for the exact amount spent, bringing the fund back to its original level.
Pupils’ Activity: Pupils listen carefully, ask questions, and try to grasp the concept of the imprest system. They note down the explanation.
Learning Point: Pupils understand how the imprest system operates in managing petty cash.

Step 5: Analytical Petty Cash Book

Time: 7 minutes
Teaching Skill: Illustration/Explanation
Teacher’s Activity: The teacher introduces the analytical petty cash book, explaining its structure with various analysis columns on the payments side. The teacher uses the chart of a petty cash specimen to show the different columns (e.g., Date, Particulars, Voucher No., Total Payments, Analysis columns like Transport, Stationery, Cleaning, Sundry).
Pupils’ Activity: Pupils observe the chart, identify the columns, and understand the purpose of each analysis column.
Learning Point: Pupils can identify the features and structure of an analytical petty cash book.

Step 6: Recording Petty Cash Transactions

Time: 5 minutes
Teaching Skill: Demonstration/Practice
Teacher’s Activity: The teacher demonstrates how to record typical petty cash transactions into an analytical petty cash book using the imprest system, referring to the specimen. The teacher explains how to post amounts to the total payments column and then to the relevant analysis column.
Pupils’ Activity: Pupils observe the demonstration and ask questions. They attempt to record a simple transaction if time permits.
Learning Point: Pupils learn the practical steps of recording transactions in an analytical petty cash book.

Step 7: Evaluation/Review

Time: 5 minutes

Teaching Skill: Questioning/Assessment

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

Define a petty cash book.
State three advantages of maintaining a petty cash book.
Explain the imprest system of petty cash management.
Mention two common analysis columns found in an analytical petty 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, reiterating the importance of the petty cash book and the imprest system in financial accounting. The teacher gives a take-home assignment to practice recording transactions.
Pupils’ Activity: Pupils listen to the summary and note down the assignment.
Learning Point: Pupils consolidate their understanding of the lesson and are prepared for further practice.

Lesson Keywords

Petty Cash Book – A subsidiary book for recording small, day-to-day cash expenses.
Imprest System – A method where a fixed amount is given to the petty cashier and reimbursed for exact expenses.
Analytical Petty Cash Book – A petty cash book with several columns to classify different types of expenses.
Petty Cashier – The person responsible for managing the petty cash fund.
Reimbursement – The act of paying back money spent by an individual or for expenses.

Differentiation

For pupils who grasp concepts quickly, they will be given more complex scenarios for recording transactions. For pupils needing more support, the teacher will provide simplified examples and one-on-one guidance.

Note for teachers using this lesson plan

Teachers should ensure they have clear, legible charts or projected examples of an analytical petty cash book. Practical exercises with sample receipts and invoices will greatly enhance pupils’ understanding and application of the concepts. Encourage pupils to ask questions and participate actively.