BOOK KEEPING SS1 SECOND TERM LESSON NOTE
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BOOK KEEPING SS1 SECOND TERM LESSON NOTE
SIGMA TERM
SCHEME OF WORKS
SUBJECT: BOOK-KEEPING CLASS: SS 1
TOPIC
1. Revision.
2. Cash book
- Measuring of single column cash book.
- Items of single column cash book
3. Single column cash book
- Preparation of single column cash book.
4. Preparation of single column cash-book (continues)
5. Double column cash book
- Meaning of double column cash book.
- Items in double column cash book
6. Double column cash book
- Difference between single column cash book.
- Preparation of double column cash book.
7. Double column cash book.
- Preparation of double column cash book.
8. Contra Entry.
- Explain contra entry
- Identify contra entry
- Recording contra entry
9. Principle of Double entry.
- Meaning of Double entry
- Identify the account to be credited and debited.
10. Principle of Double entry.
- Posting of transaction from cash book to ledger.
- Rule of double entry.
11. Revision.
12. Examination
WEEK ONE
1.0. Topic: Single Column cash book
INTRODUCTION: This is the book for recording receipts and payments of money in cash or cheque.
NOTE: No credit transaction should be recorded in the cash book.
CASH ACCOUNT: This is the account which is used for recording money received and paid with cash. The balance is referred to as CASH IN HAND. All cash received must be debited while cash paid will be credited to the cash account.
Illustration 1:
Enter the following transactions in the cash account of Olaide
N
July 1 Cash in hand 1,500
July 3 Cash to Okola 250
July 5 Cash Sales 500
July 6 Cash purchases 700
July 7 Bought Stationery 50
July 9 Paid Insurance 30
July 10 Paid wages 25
July 12 cash sales 155
BOOK KEEPING SS1 SECOND TERM LESSON NOTE
SOLUTION
DR CASH ACCOUNT CR
N N
July 1 bal. b/f 1,500 July 3 Okola 250
July 5 sales 500 July 6 Purchaser 750
July 12 sales 115 July 7 Stationery 50
July 9 Insurance 30
July 10 wages 25
Bal. c/d 1,010
2,115 2,115
BANK ACCOUNT: The bank account is a record of money deposited into the bank and money withdrawn from the bank. All cheques received must be debited while cheques issued out must be credited.
Illustration 2:
Enter the following transactions in the bank account of Ogundele.
N
June 1 Cash in hand 2,500
June 3 Paid to Okocha by cheque 650
June 5 Sold goods and received cheque 450
June 6 Received Cheque from Agali 230
June 7 Sent Cheque to Komolafe
June 9 Bought goods with cheque 300
SOLUTION
DR BANK ACCOUNT CR
N N
June 1 bal. b/f 2,500 July 3 Okocha 650
June 5 sales 450 July 6 Purchaser 750
June 6 sales 230 July 7 Stationery 50
July 9 Insurance 30
July 10 wages 25
Bal. b/d 1,910 Bal. c/d 1,010
3,180 3,180
BOOK KEEPING SS1 SECOND TERM LESSON NOTE
WEEK TWO
DOUBLE COLUMN CASH BOOK
Meaning: The two column Cash book so-called because for both debit and credit entries, it has two columns, one for recording cash transactions and the other for bank transactions. It is therefore used for recording mixed cash and bank transaction.
Accounting Entries
All payments in cash are recorded by crediting the cash column of the cash book. If the payment is by cheque the bank column is credited.
When cash is withdrawn from the bank (e.g for paying wages and sundry expenses), the cash column is debited and the bank column is credited with the amount involved.
Example:
Record the following transactions in a two column cash book. Balance the cash book and bring down the balances of cash in hand and cash at bank at the end of the period.
19x9
April 2: Introduced N2,900 cash into the business as capital
April 4: Paid N1,850 of the capital into bank
April 10: Cash purchases N300
April 15: Cash sales N450
April 20: Purchases by cheque N700
April 25: Cash sales N650
April 28: Office expenses paid for in cash N30
April 29: Cash paid into bank N1,000
April 30: Wages paid by cheque N75.
BOOK KEEPING SS1 SECOND TERM LESSON NOTE
WEEK THREE
CONTRA ENTRY
Contra is a latin word which shows that cash has been withdrawn from the office and deposited in the bank or withdrawals of cash from bank for office use.
It is an entry involving the payment of cash into the bank and is denoted by “C” in the folio column.
It may simply be defined as the transfer of an account to the identical side of another account.
a. Payment of cash to bank.
When too much cash is in the office, the whole or part of it can be paid into the bank.
Effect Action Required
Cash balance is decreased Cr. Cash column
Bank balance is increased Dr. Bank column
E.g: Jan. 1 cash balanced N300
Note: “C” must be put on both sides to represent contra entry.
b. Withdrawals from bank for office use.
When there is no sufficient cash in the office to meet payments, cash can be withdrawn from bank. When this occurs, the effect and action will be started below.
Effect Action Required
Bank balance will decrease Cr. Bank column
Cash balance will increase Dr. Cash column
E.g: Jan. 4 withdrew cash N800 from bank for office use.
WEEK FOUR
PRINCIPLE OF DOUBLE ENTRY
Definition: Double entry book keeping is the system of keeping account, which take advantages of the two-fold aspect of every transaction, whereby one account that receives is debited and another account, which gives, is credited.
The following simple rules of double entry should be fully understood and memorized.
a. for every credited entry in an account there must be a corresponding debit entry in another account.
b. For every debit entry in an account, there must be a corresponding credit entry in another account.
c. All transactions must be recorded in two accounts, one account is debited and another account credited.
APPLICATION OF THE PRINCIPLES OF DOUBLE ENTRY
1. Any transaction involves two accounts.
a. Receiving account or receiver.
b. Giving account or giver.
BOOK KEEPING SS1 SECOND TERM LESSON NOTE
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