Class: Senior Secondary School 1 (SS1, SS 1, SSS1, SSS 1)
Term: First Term
Week: 10
Age: 15 years
Duration: 45 minutes
Subject: Financial Accounting
Curriculum Theme: Financial Accounting
Previous Lesson: Subsidiary Books and Source Documents I.
Topic: SUBSIDIARY BOOKS AND SOURCE DOCUMENTS
Subject Matter: meaning of subsidiary books, reasons for subsidiary books, types of subsidiary books, preparation of subsidiary books

Specific Objectives

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

Cognitive Domain:

Define subsidiary books.
State at least three reasons for using subsidiary books.
List the different types of subsidiary books.

Affective Domain:

Appreciate the importance of subsidiary books in accounting.
Recognize the role of source documents in preparing subsidiary books.

Psychomotor Domain:

Prepare simple formats for the Purchases Day Book and Sales Day Book.
Identify the correct subsidiary book for various transactions.

Participate actively in class discussions on the topic.

Reference Materials

The following resources were used in planning this lesson:

9 Years Basic Education Curriculum for Financial Accounting (Senior Secondary Education).
State Unified Scheme of Work for Senior Secondary Schools.
Financial Accounting for Senior Secondary Schools by O. A. Longe.
Financial Accounting for Senior Secondary Schools by J. B. Anyaele.
https://www.accaglobal.com/ng/en/student/exam-support-resources/fundamentals-exams-study-resources/f3/technical-articles/books-of-prime-entry.html
https://www.accountingcoach.com/bookkeeping/explanation/2

Instructional Materials

The teacher will teach this lesson with the aid of:

A chart showing formats of various subsidiary books (e.g., Purchases Day Book, Sales Day Book).
Textbook examples of source documents like invoices and credit notes.
Whiteboard and markers.

Rationale for the Lesson

This lesson helps pupils understand how businesses record transactions systematically before they are posted to the main ledger. It simplifies the accounting process and provides detailed records for different types of transactions, which is important for accurate financial reporting.

Prerequisite/Previous Knowledge

Pupils have prior knowledge of basic accounting concepts such as ledgers, journals, and the double-entry system.

Lesson Content/Board Summary

SUBSIDIARY BOOKS AND SOURCE DOCUMENTS

Meaning of Subsidiary Books

Subsidiary books are also known as books of original entry or prime entry. They are books where transactions are first recorded chronologically before being transferred to the main ledger accounts. Each subsidiary book is used for recording specific types of transactions.

Reasons for Using Subsidiary Books

The following are reasons for using subsidiary books:

They allow for division of labour among accounting staff.
They provide detailed information about specific types of transactions.
They help to reduce the number of entries in the main ledger, making it less bulky.
They make it easier to locate and correct errors.
They facilitate internal control by assigning responsibility for different types of transactions.

Types of Subsidiary Books

The following are common types of subsidiary books:

Purchases Day Book: Records all credit purchases of goods.
Sales Day Book: Records all credit sales of goods.
Returns Inwards Day Book (Sales Returns Day Book): Records goods returned by customers.
Returns Outwards Day Book (Purchases Returns Day Book): Records goods returned to suppliers.
Cash Book: Records all cash and bank transactions (receipts and payments).
Journal Proper: Records transactions that do not fit into other subsidiary books (e.g., opening entries, correction of errors, purchase/sale of fixed assets on credit).

Preparation of Subsidiary Books

Subsidiary books are prepared from source documents, which provide evidence of transactions.

Purchases Day Book: Prepared from Purchase Invoices received from suppliers. It shows the date, name of supplier, invoice number, and amount.
Sales Day Book: Prepared from Sales Invoices issued to customers. It shows the date, name of customer, invoice number, and amount.
Returns Inwards Day Book: Prepared from Credit Notes issued to customers. It shows the date, name of customer, credit note number, and amount.
Returns Outwards Day Book: Prepared from Debit Notes received from suppliers (or a copy of a debit note issued to supplier). It shows the date, name of supplier, debit note number, and amount.

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 understand by “journals” and “ledgers” in accounting. The teacher then introduces the topic by explaining that businesses use specific books to record transactions before they go into the main ledger.
Pupils’ Activity: Pupils respond to questions about journals and ledgers and listen attentively to the introduction.
Learning Point: Pupils connect the new topic to previous knowledge and are prepared for the lesson.

Step 2: Meaning of Subsidiary Books

Time: 8 minutes
Teaching Skill: Explanation/Definition
Teacher’s Activity: The teacher explains the meaning of subsidiary books as books of original entry where transactions are first recorded. The teacher emphasizes that these books categorize transactions by type (e.g., all credit sales in one book).
Pupils’ Activity: Pupils listen and take notes, asking questions for clarification.
Learning Point: Pupils understand the definition and purpose of subsidiary books.

Step 3: Reasons for Subsidiary Books

Time: 7 minutes
Teaching Skill: Listing/Explanation
Teacher’s Activity: The teacher explains the reasons why businesses use subsidiary books, such as division of labour, detailed information, reduction of ledger entries, and ease of error detection. The teacher may ask pupils to suggest possible benefits.
Pupils’ Activity: Pupils listen, contribute ideas, and list the reasons in their notebooks.
Learning Point: Pupils identify and understand the benefits of using subsidiary books.

Step 4: Types of Subsidiary Books

Time: 7 minutes
Teaching Skill: Classification/Identification
Teacher’s Activity: The teacher lists and briefly explains the common types of subsidiary books, such as Purchases Day Book, Sales Day Book, Returns Inwards Day Book, Returns Outwards Day Book, Cash Book, and Journal Proper. The teacher uses the chart to show examples.
Pupils’ Activity: Pupils identify and list the different types of subsidiary books and their primary functions.
Learning Point: Pupils can differentiate between various subsidiary books based on the transactions they record.

Step 5: Preparation of Subsidiary Books (Purchases and Sales Day Books)

Time: 8 minutes
Teaching Skill: Demonstration/Practical Application
Teacher’s Activity: The teacher uses the chart to demonstrate the simple format of a Purchases Day Book and a Sales Day Book. The teacher explains how each book is prepared from relevant source documents (purchase invoices for Purchases Day Book, sales invoices for Sales Day Book) and what information is recorded in each column.
Pupils’ Activity: Pupils observe the demonstration, ask questions, and practice drawing simple formats in their notebooks.
Learning Point: Pupils understand how to prepare basic subsidiary books from source documents.

Step 6: Preparation of Subsidiary Books (Returns Inwards and Returns Outwards Day Books)

Time: 5 minutes
Teaching Skill: Demonstration/Practical Application
Teacher’s Activity: The teacher continues the demonstration by explaining the preparation of Returns Inwards Day Book (from credit notes issued) and Returns Outwards Day Book (from debit notes received/issued).
Pupils’ Activity: Pupils observe and note the differences and similarities in the preparation of these books.
Learning Point: Pupils can differentiate between and prepare entries for returns in the appropriate subsidiary books.

Step 7: Evaluation/Review

Time: 5 minutes

Teaching Skill: Questioning/Assessment

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

What are subsidiary books?
Mention three reasons why businesses use subsidiary books.
List any four types of subsidiary books.
Which subsidiary book records all credit sales?
What source document is used to prepare the Returns Inwards Day 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 learning points of the lesson, reiterating the importance of subsidiary books in organizing financial transactions. The teacher assigns homework: Ask pupils to find and draw a simple format for a Cash Book.
Pupils’ Activity: Pupils listen to the summary and copy down the homework.
Learning Point: Pupils reinforce their understanding of the topic and prepare for future lessons.

Lesson Keywords

Subsidiary Books – Books of original entry where transactions are first recorded.
Source Documents – Original records that provide evidence of a transaction (e.g., invoices, receipts).
Purchases Day Book – Records credit purchases of goods.
Sales Day Book – Records credit sales of goods.
Returns Inwards Day Book – Records goods returned by customers.
Returns Outwards Day Book – Records goods returned to suppliers.

Differentiation

For pupils who grasp concepts quickly, the teacher can provide additional complex transactions to classify into appropriate subsidiary books. For pupils needing more support, the teacher will provide simplified examples and one-on-one guidance during the practical demonstration of preparing the books.

Note for teachers using this lesson plan

Ensure that pupils have a clear understanding of the difference between cash transactions and credit transactions, as this is fundamental to understanding subsidiary books. Emphasize the link between source documents and the entries made in each subsidiary book. Practical examples and simple case studies will help solidify understanding.