Class: Senior Secondary School 1 (SS1 / SSS 1)
Term: Second Term
Week: 11
Age: 15 years
Duration: 45 minutes
Subject: Book Keeping
Curriculum Theme: Trade
Previous Lesson: Principles of Double Entry: Debit and Credit Identification and Posting.
Topic: Petty cash book
Subject Matter: Meaning of petty cash book, Classification of columns

Specific Objectives

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

Cognitive Domain:

Define a petty cash book.
State at least three reasons for keeping a petty cash book.
Identify and classify the common columns in a petty cash book.

Affective Domain:

Appreciate the importance of a petty cash book in managing small expenses.
Participate actively in class discussions.

Psychomotor Domain:

Rule a simple petty cash book format.
Demonstrate how to enter basic transactions into relevant columns.

Work collaboratively with peers to discuss different types of petty cash expenses.

Reference Materials

The following resources were used in planning this lesson:

9 Years Basic Education Curriculum for Business Studies.
State Unified Scheme of Work for Senior Secondary School Book Keeping.
Frank Wood’s Business Accounting, Vol. 1.
A. L. Okwoli, Comprehensive Book Keeping for Senior Secondary Schools.

Instructional Materials

The teacher will teach this lesson with the aid of:

A chart showing a sample petty cash book.
Whiteboard/chalkboard and markers/chalk.
Textbooks on Book Keeping.

Rationale for the Lesson

Understanding the petty cash book helps pupils learn how businesses and individuals manage small, frequent expenses effectively. This knowledge is important for maintaining accurate financial records and preventing fraud, skills useful in both business and personal finance.

Prerequisite/Previous Knowledge

Pupils should have basic knowledge of the main cash book and general accounting entries.

Lesson Content/Board Summary

Petty Cash Book

Meaning of Petty Cash Book

A petty cash book is a subsidiary book used to record small, day-to-day payments that are not convenient to pay by cheque or to record in the main cash book. It is managed by a petty cashier.

Reasons for Keeping a Petty Cash Book

The following are reasons for keeping a petty cash book:

To avoid overcrowding the main cash book with small entries.
To save time for the main cashier.
To provide a record of small payments.
To control small expenses effectively.
To provide training for junior staff (petty cashier).

The Imprest System

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

Classification of Petty Cash Book Columns

A petty cash book typically has several columns to categorize expenses. The specific columns depend on the nature of the business, but common columns include:

Amount Received: Records the initial float and subsequent reimbursements.
Date: Records the date of each transaction.
Particulars: A brief description of the expense.
Voucher Number: A reference number for each payment voucher.
Total Payments: Records the total amount paid for each transaction.
Analysis Columns: Used to categorize expenses into specific accounts for easy posting to the ledger. Common analysis columns are:
- Stationery: For expenses like pens, paper, envelopes.
- Transport: For bus fares, fuel, taxi costs.
- Postage: For stamps, courier services.
- Sundries/General Expenses: For miscellaneous small expenses 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. The teacher then asks how small, daily expenses (e.g., buying chalk, transport fare for messenger) are usually recorded in a business. This leads to the introduction of the petty cash book.
Pupils’ Activity: Pupils respond to questions and listen attentively.
Learning Point: Pupils are introduced to the concept of managing small expenses and the need for a separate record.

Step 2: Meaning of Petty Cash Book

Time: 10 minutes
Teaching Skill: Explanation/Definition
Teacher’s Activity: The teacher defines a petty cash book, explaining its purpose as a record for small, frequent payments. The teacher also introduces the role of a petty cashier.
Pupils’ Activity: Pupils listen, take notes, and ask questions for clarification.
Learning Point: Pupils understand the definition and basic function of a petty cash book.

Step 3: Reasons for Keeping a Petty Cash Book

Time: 7 minutes
Teaching Skill: Elaboration/Listing
Teacher’s Activity: The teacher explains and lists various reasons why businesses keep a petty cash book, such as avoiding overcrowding the main cash book, saving time, and controlling small expenditures.
Pupils’ Activity: Pupils listen, note down the reasons, and contribute with their own ideas if any.
Learning Point: Pupils learn the practical benefits of using a petty cash book.

Step 4: The Imprest System

Time: 5 minutes
Teaching Skill: Explanation
Teacher’s Activity: The teacher explains the imprest system, describing how a fixed amount is given to the petty cashier and reimbursed for expenses incurred, maintaining a constant float.
Pupils’ Activity: Pupils listen and understand how the imprest system operates.
Learning Point: Pupils grasp the concept of the imprest system as a method of managing petty cash.

Step 5: Classification of Petty Cash Book Columns

Time: 10 minutes
Teaching Skill: Demonstration/Categorization
Teacher’s Activity: The teacher displays the petty cash chart and explains each column, including the amount received, date, particulars, voucher number, total payments, and various analysis columns (e.g., stationery, transport, postage, sundries). The teacher explains the purpose of each column and how entries are made.
Pupils’ Activity: Pupils observe the chart, ask questions, and identify the different columns and their uses.
Learning Point: Pupils understand the structure and classification of columns in a petty cash book.

Step 6: 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 two reasons why a petty cash book is kept.
Mention three common analysis columns found in a petty cash book.
Briefly explain the imprest system.

Pupils’ Activity: Pupils answer orally and in writing.

Learning Point: Pupils demonstrate understanding of the lesson.

Step 7: Conclusion

Time: 3 minutes
Teaching Skill: Summarization/Assignment
Teacher’s Activity: The teacher summarizes the key points of the lesson, reiterating the definition, importance, and structure of a petty cash book. The teacher then assigns homework for pupils to draw a petty cash book format with five analysis columns.
Pupils’ Activity: Pupils listen to the summary and copy down the homework.
Learning Point: Pupils consolidate their understanding and are given an opportunity to practice.

Lesson Keywords

Petty Cash – Small amounts of cash kept on hand for minor expenses.
Petty Cash Book – A record for small, day-to-day payments.
Petty Cashier – The person responsible for managing the petty cash fund.
Imprest System – A system where a fixed amount is reimbursed to restore the petty cash fund.
Voucher – A document providing evidence of a transaction.
Analysis Columns – Columns used to categorize expenses in the petty cash book.

Differentiation

For pupils who grasp concepts quickly, the teacher can provide additional examples of petty cash transactions to record. For pupils needing more support, the teacher will provide simplified explanations, use more visual aids, and encourage peer-to-peer learning by pairing them with stronger pupils to discuss the types of expenses and their classification.

Note for teachers using this lesson plan

Teachers should emphasize the practical application of the petty cash book by using relatable examples of small expenses from daily life or a typical school environment. Encouraging pupils to draw and label the columns themselves will help reinforce their understanding of the structure. A clear demonstration of how to make entries for both receipts and payments is important.