Class: Senior Secondary School 1 (SS1 / SSS 1)
Term: 3rd Term
Week: 1
Age: 15 years
Duration: 45 minutes
Subject: Book Keeping
Curriculum Theme: Trade
Previous Lesson: .
Topic: Petty cash book
Subject Matter: Posting transactions into petty cash columns

Specific Objectives

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

Cognitive Domain:

Define a petty cash book.
Explain the purpose of maintaining a petty cash book.
State the rules for posting transactions into the petty cash book.

Affective Domain:

Appreciate the importance of accurate record-keeping for small expenses.
Develop attention to detail when recording financial transactions.

Psychomotor Domain:

Post simple transactions accurately into a petty cash book.
Prepare a simple petty cash book for a given period.

Collaborate with peers to solve practical exercises on petty cash transactions.
Discuss the practical applications of a petty cash book in daily business.

Reference Materials

The following resources were used in planning this lesson:

9 Years Basic Education Curriculum for Business Studies.
Lagos State Unified Scheme of Work for Senior Secondary Schools.
Adeyemi, K. (2018). Simplified Book-Keeping and Accounts for Senior Secondary Schools. University Press PLC.
https://www.accountingcoach.com/petty-cash/explanation
https://www.investopedia.com/terms/p/pettycash.asp

Instructional Materials

The teacher will teach this lesson with the aid of:

A chart showing a sample petty cash book.
Whiteboard and markers/chalk.
Textbooks and exercise books.
Sample petty cash vouchers.

Rationale for the Lesson

Understanding the petty cash book helps pupils learn how businesses manage small, everyday expenses. This knowledge is important for accurate financial record-keeping and helps pupils understand cash control, which is a valuable skill in both personal and business finance.

Prerequisite/Previous Knowledge

Pupils have prior knowledge of basic cash transactions, the concept of ledgers, and the importance of keeping records in accounting.

Lesson Content/Board Summary

Petty Cash Book

Definition of Petty Cash Book

A petty cash book is a subsidiary book used to record small, day-to-day expenses that are not practical to pay by cheque or through the main cash book. These expenses are usually minor and occur frequently.

Purpose of Petty Cash Book

The following are the purposes of maintaining a petty cash book:

To reduce the number of entries in the main cash book.
To provide a record of small, regular expenditures.
To control small cash payments effectively.
To enable the delegation of small cash payments to a petty cashier.

The Imprest System of Petty Cash

The imprest system is a method of operating a petty cash book where a fixed amount of cash, called the “float,” is given to the petty cashier at the beginning of a period (e.g., a month). At the end of the period, the petty cashier is reimbursed the exact amount spent, restoring the petty cash fund to its original fixed amount. This ensures that the petty cashier always has the fixed float at the start of each new period.

Columns in a Petty Cash Book

A typical petty cash book has the following columns:

Date: The date the transaction occurred.
Particulars/Details: A brief description of the expense.
Voucher No.: The reference number of the petty cash voucher.
Cash Received/Amount: The amount of cash received to top up the fund.
Total Payments: The total amount paid out for each transaction.
Analysis Columns: Specific columns for common types of expenses (e.g., Stationery, Transport, Postage, Cleaning, Sundries).

Rules for Posting Transactions into Petty Cash Book

The following rules guide the posting of transactions into a petty cash book:

Record all cash received from the main cashier in the “Cash Received” column.
Record all payments made from the petty cash fund in the “Total Payments” column.
For each payment, also record the amount in the relevant “Analysis Column” (e.g., if money is spent on stamps, it goes into the “Postage” column).
Ensure that for every payment, there is a corresponding voucher or receipt.
At the end of the period, total all the analysis columns and the “Total Payments” column.
Balance the petty cash book by subtracting total payments from cash received to find the cash balance.

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 how businesses handle small, everyday expenses that are too small to pay by cheque. The teacher then introduces the topic: Petty Cash Book.
Pupils’ Activity: Pupils respond to questions and listen attentively.
Learning Point: Pupils are introduced to the concept of petty cash and its relevance.

Step 2: Explanation of Petty Cash Book

Time: 7 minutes
Teaching Skill: Explanation/Definition
Teacher’s Activity: The teacher defines a petty cash book and explains its purpose, using the chart of a sample petty cash book to illustrate.
Pupils’ Activity: Pupils listen, take notes, and ask questions for clarification.
Learning Point: Pupils understand what a petty cash book is and why it is used.

Step 3: The Imprest System

Time: 7 minutes
Teaching Skill: Explanation/Illustration
Teacher’s Activity: The teacher explains the imprest system in detail, describing how the petty cash fund is established and reimbursed to maintain a fixed float.
Pupils’ Activity: Pupils listen and write down key points about the imprest system.
Learning Point: Pupils understand the mechanism of the imprest system for managing petty cash.

Step 4: Columns in a Petty Cash Book

Time: 7 minutes
Teaching Skill: Description/Visual Aid
Teacher’s Activity: The teacher points to the chart showing a petty cash book and describes each column, explaining its function.
Pupils’ Activity: Pupils observe the chart, ask questions about the columns, and note the different parts of the petty cash book.
Learning Point: Pupils identify and understand the purpose of various columns in a petty cash book.

Step 5: Rules for Posting Transactions

Time: 7 minutes
Teaching Skill: Instruction/Guidance
Teacher’s Activity: The teacher states and explains the rules for posting transactions into the petty cash book, emphasizing how to record both receipts and payments in the appropriate columns.
Pupils’ Activity: Pupils listen carefully, ask questions, and take notes on the posting rules.
Learning Point: Pupils learn the correct procedures for recording transactions in the petty cash book.

Step 6: Practical Demonstration/Exercises

Time: 5 minutes
Teaching Skill: Demonstration/Application
Teacher’s Activity: The teacher demonstrates a simple petty cash transaction on the board, showing how it is entered into the petty cash book. The teacher then provides a short exercise for pupils to attempt individually or in pairs.
Pupils’ Activity: Pupils observe the demonstration and then attempt the exercise provided.
Learning Point: Pupils practice applying the posting rules to actual transactions.

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 two purposes of maintaining a petty cash book.
Explain the imprest system as it relates to petty cash.
Mention three columns typically found in a 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 definition, purpose, and posting rules for a petty cash book. The teacher assigns homework: to draw a petty cash book format and list five common petty cash expenses.
Pupils’ Activity: Pupils listen to the summary and copy down the homework assignment.
Learning Point: Pupils consolidate their understanding and are given tasks to reinforce learning.

Lesson Keywords

Petty Cash – Small amounts of cash kept on hand for minor expenses.
Petty Cash Book – A record for small, recurring cash payments.
Imprest System – A method where a fixed amount (float) is replenished by the amount spent.
Float – The fixed amount of cash issued to the petty cashier.
Voucher – A document providing evidence of a payment.
Analysis Columns – Columns in a petty cash book used to categorize expenses.

Differentiation

For pupils who grasp the concepts quickly, the teacher will provide more complex petty cash scenarios or ask them to reconcile a petty cash book. For pupils needing more support, the teacher will provide simplified examples, offer one-on-one guidance, and encourage peer tutoring during practice exercises.

Note for teachers using this lesson plan

Ensure to have a clear, large chart of a petty cash book for demonstration. Practical examples are key to understanding this topic. Encourage pupils to bring real-life examples of small expenses they have encountered to make the lesson more relatable. Emphasize the importance of accuracy and proper documentation (vouchers) in petty cash management.