BOOK KEEPING SS1 SECOND TERM LESSON NOTE

ALL LESSON NOTES 

| QUESTIONS AND ANSWERS 

JOBS 

TRAININGS FOR TEACHERS

| WORKSHEETS

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

DO YOU WANT FULL NOTE JUST FOR 1000 NAIRA ONLY, 

PLEASE CLICK ON THE LINK BELOW

CLICK HERE TO CHAT WITH US ON WHATSAPP 

+2349123700105

ACCOUNT SS1 SECOND TERM LESSON NOTE




Comments