Class: Senior Secondary School 2 (SS2 / SSS 2)
Term: 1st Term
Week: 6
Age: 16 years
Duration: 45 minutes
Subject: Store Management
Curriculum Theme: Business Records
Previous Lesson: Subsidiary Books: Meaning, Purchases Day Book and Sales Day Book.
Topic: Subsidiary book cont.
Subject Matter: Meaning of subsidiary books, return inwards book (meaning, nature, uses, illustration), cash book (meaning, uses), cash book types (single column cash book, illustration)

Specific Objectives

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

Cognitive Domain:

Define subsidiary books.
Explain the meaning, nature, and uses of a return inwards book.
State the meaning and uses of a cash book.
Identify the types of cash books.
Describe the ruling and entries for a single column cash book.

Affective Domain:

Appreciate the importance of accurate record-keeping in business.
Value the systematic recording of transactions using subsidiary books.

Psychomotor Domain:

Draw the ruling for a return inwards book.
Prepare a simple single column cash book from given transactions.

Participate actively in discussions about different types of subsidiary books.
Work collaboratively to solve practical examples of cash book entries.

Reference Materials

The following resources were used in planning this lesson:

Senior Secondary Schools Education Curriculum
State Unified Scheme of Work
Oyebola, M. (2018). Essential Financial Accounting for Senior Secondary Schools. Tonad Publishers Limited.
Any other relevant Store Management or Financial Accounting textbook for SSS.

Instructional Materials

The teacher will teach this lesson with the aid of:

Chart showing the ruling of a return inwards book.
Chart showing the ruling of a single column cash book.
Sample transaction slips (e.g., credit notes, cash receipts).

Rationale for the Lesson

This lesson helps pupils understand how businesses record daily transactions systematically. Learning about subsidiary books, especially the return inwards book and cash book, is important for maintaining accurate financial records and making informed business decisions.

Prerequisite/Previous Knowledge

Pupils are expected to have basic knowledge of business transactions, source documents, and the concepts of debit and credit from previous lessons.

Lesson Content/Board Summary

Subsidiary Books and the Cash Book

Meaning of Subsidiary Books

Subsidiary books, also known as books of original entry or day books, are special journals used to record similar types of transactions before they are posted to the main ledger. They help in categorizing transactions and simplifying the ledger posting process.

Return Inwards Book (Sales Returns Day Book)

The Return Inwards Book is a subsidiary book used to record goods returned to the business by its customers. These are goods previously sold on credit that have been sent back due to defects, damage, or other reasons.

Nature and Uses:

It records all sales returns, supported by source documents like credit notes issued to customers.
It helps in tracking the value of goods returned by customers.
It provides information for adjusting customer accounts in the sales ledger.
It is used to prepare the total sales returns figure, which is then posted to the Sales Returns Account in the General Ledger.

Illustration (Ruling of a Return Inwards Book):

A typical Return Inwards Book has columns for:

Date (when goods were returned)
Details (Name of customer, reason for return)
Credit Note Number (Reference number of the credit note issued)
Folio (Reference to the ledger account)
Amount (Value of goods returned)

Cash Book

The Cash Book is a principal book of account that records all cash receipts and cash payments. It serves as both a subsidiary book (for cash transactions) and a ledger account (for the cash and bank accounts).

Uses of a Cash Book:

It records all cash inflows (receipts) and cash outflows (payments).
It shows the cash balance (and sometimes bank balance) at any given time.
It helps in controlling cash and bank transactions.
It provides information for preparing bank reconciliation statements.

Types of Cash Book

Cash books are categorized based on the number of money columns they have:

Single Column Cash Book: Records only cash receipts and cash payments.
Two Column Cash Book: Records both cash and bank transactions.
Three Column Cash Book: Records cash, bank, and discount transactions.
Petty Cash Book: Records small, day-to-day cash payments.

Single Column Cash Book

The Single Column Cash Book has only one money column on both the debit and credit sides, used for recording cash transactions. It is often used by small businesses that deal mainly in cash.

Illustration (Ruling of a Single Column Cash Book):

A single column cash book is ruled like a T-account with two sides:

Debit Side (Left): Records all cash receipts (money coming into the business). Columns typically include Date, Particulars (details of receipt), Folio (ledger reference), Amount (Cash).
Credit Side (Right): Records all cash payments (money going out of the business). Columns typically include Date, Particulars (details of payment), Folio (ledger reference), Amount (Cash).

Example: Recording Transactions in a Single Column Cash Book

Given the following transactions for Grace Stores in March 2024:

March 1: Cash in hand N5,000
March 5: Received cash from sales N3,000
March 10: Paid for stationery N500
March 15: Received cash from John (debtor) N2,000
March 20: Paid salaries N1,500

Steps to record:

Step 1: Record Opening Balance.

March 1: Balance b/d (Debit side) N5,000

Step 2: Record Cash Receipts.

March 5: Sales (Debit side) N3,000
March 15: John (Debit side) N2,000

Step 3: Record Cash Payments.

March 10: Stationery (Credit side) N500
March 20: Salaries (Credit side) N1,500

Step 4: Balance the Cash Book.

Total Debit side = N5,000 + N3,000 + N2,000 = N10,000
Total Credit side = N500 + N1,500 = N2,000
Closing Balance (Balance c/d) = Debit Total – Credit Total = N10,000 – N2,000 = N8,000 (recorded on the Credit side to balance)
Opening Balance for next period (Balance b/d) = N8,000 (recorded on the Debit side for April 1)

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 reminds them of the importance of record-keeping in business. The teacher then introduces the topic “Subsidiary Books (cont.)” by asking pupils to recall what they know about books of original entry.
Pupils’ Activity: Pupils respond to the greetings and share their prior knowledge of books of original entry.
Learning Point: Pupils are prepared for the lesson and connect with previous knowledge.

Step 2: Explanation of Subsidiary Books

Time: 5 minutes
Teaching Skill: Explanation
Teacher’s Activity: The teacher explains the meaning of subsidiary books as books of original entry used to record similar types of transactions before posting to the ledger.
Pupils’ Activity: Pupils listen attentively and take notes.
Learning Point: Pupils understand the general concept of subsidiary books.

Step 3: Return Inwards Book

Time: 10 minutes
Teaching Skill: Demonstration/Explanation
Teacher’s Activity: The teacher explains the meaning, nature, and uses of a return inwards book. The teacher then uses a chart to illustrate the ruling of a return inwards book, explaining each column. The teacher also briefly contrasts it with a return outwards book.
Pupils’ Activity: Pupils observe the chart, ask questions, and copy the ruling.
Learning Point: Pupils learn about the purpose and structure of the return inwards book.

Step 4: Introduction to Cash Book

Time: 5 minutes
Teaching Skill: Lecture/Questioning
Teacher’s Activity: The teacher defines the cash book as a book that records all cash receipts and payments, and discusses its importance and various uses in a business.
Pupils’ Activity: Pupils listen and contribute to the discussion on the importance of the cash book.
Learning Point: Pupils understand the meaning and significance of the cash book.

Step 5: Types of Cash Books and Single Column Cash Book

Time: 10 minutes
Teaching Skill: Explanation/Demonstration
Teacher’s Activity: The teacher identifies and explains the different types of cash books, focusing on the single column cash book. The teacher then uses a chart to illustrate the ruling of a single column cash book and demonstrates how to record simple cash transactions with an example.
Pupils’ Activity: Pupils observe the illustration, ask clarifying questions, and copy the ruling and example.
Learning Point: Pupils learn about the types of cash books and how to prepare a single column cash book.

Step 6: Practical Application

Time: 5 minutes
Teaching Skill: Practical/Coaching
Teacher’s Activity: The teacher provides a few simple cash transactions and guides pupils to record them in a single column cash book drawn in their notebooks.
Pupils’ Activity: Pupils attempt to record the transactions under the teacher’s guidance.
Learning Point: Pupils practice applying their knowledge of recording 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:

What are subsidiary books?
State three uses of a return inwards book.
Explain what a cash book is.
Mention two types of cash books.
On which side of a single column cash book are cash payments recorded?

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 using subsidiary books like the return inwards book and the single column cash book. The teacher then assigns homework.
Pupils’ Activity: Pupils listen to the summary and copy the assigned homework.
Learning Point: The lesson is reinforced and pupils have follow-up tasks.

Lesson Keywords

Subsidiary books – Books of original entry used to record specific types of transactions.
Return inwards book – A book used to record goods returned to the business by customers.
Cash book – A book that records all cash receipts and cash payments.
Single column cash book – A type of cash book with one money column for cash transactions only.

Differentiation

For pupils who grasp concepts quickly, the teacher can provide more complex transactions for the single column cash book or introduce the concept of balancing off the cash book. For pupils needing more support, the teacher will provide simplified examples and one-on-one guidance during the practical application step.

Note for teachers using this lesson plan

Ensure that pupils clearly understand the difference between the debit and credit sides of the cash book and what types of transactions are recorded on each side. Encourage active participation and use real-life examples of business transactions to make the lesson relatable. Emphasize neatness and accuracy in ruling and recording entries.