Business Studies JSS 1 Curriculum Guides – Introduction to Bookkeeping, Double Entry Bookkeeping, Meaning and Types of Journals and Source Documents

 

THEME – BOOK KEEPING AND BUSINESS (BOOKKEEPING AS EFFECTIVE TOOLS IN BUSINESS) 

TOPIC 1 – INTRODUCTION TO BOOK KEEPING

 

INSTRUCTIONAL MATERIALS

1. Receipts

2. Invoices

3. Adding machines

4. Charts

5. Graphs

6. Pictures

7. Records

8. Rulers

9. Calculator

 

 

LEARNING OBJECTIVES

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

1. state the meaning of book keeping.

2. explain the importance of Book keeping to business.

3. identify qualities of book keepers.

4. identify common book keeping practices.

 

 

CONTENTS OF THE LESSON

FOCUS LESSONS 

1. Meaning of Book Keeping

Bookkeeping is the process of recording the business and financial transactions into organized accounts on a daily basis.

Bookkeeping is an integral part of accounting and largely focuses on recording day-to-day financial transaction of the business.

 

2. Importance of Book Keeping

15 Reasons why bookkeeping is important are as follows:

• Financial blueprint and management

• Decision making

• Tax obligations

• Reporting

• Organization

• Business planning

• Book keeping records are required by Law

• Business analysis

• Track profit and growth

 

3. Essential Qualities of Book Keepers

A bookkeeper is a person whose job is to keep records of the business and financial affairs of a business.

The essential qualities of book keepers are as follows:

• Professionalism

• Good communication

• Honesty

• Familiarity

• Transparency

• Discipline

• Proficient with accounting software and technology know how

• Organizational skills

• Productiveness

 

4. Common Book Keeping Practices

• Keep personal and business income and purchases separate.

• Establish internal controls.

• Stay current with automatic bank downloads.

• Reconcile your bank accounts.

• Keep detailed payable and receivable records.

• Obtain form W9 from your contractors and temporary workers.

• Review payroll and tax notices as they come in.

• Meet with tax professional regularly for tax planning.

Reference – Best Bookkeeping Practices Small Businesses Should Adopt

 

 

LESSON PRESENTATION

TEACHER’S ACTIVITIES

The teacher,

1. explains the recording of business transaction.

2. explains the principles of book keeping.

3. explains the importance of keeping financial records.

4. states the essential qualities of a bookkeeper and book keeping ethics.

5. writes notes on the board for learners to copy.

 

 

STUDENT’S ACTIVITIES

The students,

1. identify financial transactions.

2. mention the importance of keeping financial records.

3. differentiate between cash and credit transactions.

4. participate in the discussion on the qualities of bookkeepers and book keeping ethics.

5. copy notes with teacher supervision.

 

 

LESSON EVALUATION

Teacher asks students to,

1. define book-keeping.

2. list four importance of book keeping.

3. list common book-keeping practices.

4. outline four qualities of book-keepers.

 

 

THEME – BOOK KEEPING AND BUSINESS (BOOKKEEPING AS EFFECTIVE TOOLS IN BUSINESS) 

TOPIC 2 – DOUBLE ENTRY BOOKKEEPING

 

INSTRUCTIONAL MATERIALS

1. “T” Accounts

2. Journals

3. Ledger accounts

4. Calculators

5. Rulers

6. board

7. Makers

8. Sample business transactions

 

 

LEARNING OBJECTIVES

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

1. state the meaning of double entry book-keeping.

2. analyze events and transactions using double entry system.

3. match every debit entry with corresponding credit entry.

4. identify accounts to be credited and accounts to be debited.

5. post from journals to ledgers.

6. classify types of accounts.

 

 

CONTENTS OF THE LESSON

FOCUS LESSONS 

1. Meaning of Double Entry Bookkeeping

Double entry bookkeeping means that, for every debit entry in one account, there must be an equal credit entry in another account to keep the equation balanced.

Debits are on the left side of a ledger, while credits are on the right side.

A debit is the side that receives while credit is the side that gives.

For example, Treasure bought ₦1 000 stationery in cash.

 

Stationery a/c

Cash ₦1 000

 

Cash a/c

Stationery ₦1 000

 

2. Double entry Treatment of Assets

3. Double entry Treatment of Liabilities

4. Double entry Treatment of Expenses

 

5. Meaning of Journals

A journal is a detailed account that records all the financial transactions of a business used for the future account reconciliation and for transferring information to other official accounting records, such as the general ledger.

 

There are seven (7) types of journals,

I. Purchase Journal

Purchases Journal is a journal used for recording all the credit purchases of merchandise or inventory.

All purchases paid by cash are not be recorded in purchase journal.

Instead, they are recorded in Cash Receipts Journal.

 

II. Sales Journal 

Sales journal is a journal used for recording sales of goods on credit.

All sales in cash are not be recorded in sales journal.

Instead, they are recorded in the Cash Receipts Journal.

 

III. Cash Receipts Journal 

The cash receipts journal is a journal used for recording all cash receipts which include payments received for goods and service, loan received from bank, bank deposits, etc.

 

IV. Cash Payment/Disbursement Journal

A cash payment journal is also as cash disbursement journal.

It is a journal used for recording all payments to creditors by cash which includes payments for various expenses such as payroll, suppliers’ bills, interest paid on a loan, or mortgage payment.

 

V. Purchase Return Journal 

A purchase return journal is the journal used for recording all cash and credit returns of merchandise or inventory.

 

VI. Sales Return Journal 

A sales return journal is the journal used for recording all cash and credit returns of merchandise or inventory.

 

VII. Journal Proper/General Journal 

A general journal or journal proper is the journal entries that do not have place in any of the above journal.

Such journal is used for completing accounting system for recording transactions in double entry bookkeeping.

 

6. Meaning of Ledgers

A ledger is a book or digital record that contains a record of business transactions.

 

7. Classes of Ledger

The three classes/types of ledgers are the general, debtors, and creditors.

I. General Ledger 

A general ledger is a ledger used for recording all other accounting transactions such as receivable, inventory account, cash account, investment account, machinery account, etc.

 

II. Debtors Ledger 

A debtors ledger is a ledger used for recording all sales on credit.

It is also known as as sales ledger.

 

III. Creditors Ledger 

A creditors ledger is a ledger used for recording all the goods made on credit.

It is also known as as purchase ledger.

 

8. Classification of Accounts

I. Personal Accounts

Personal accounts are the accounts used for recording all transactions that are related to individual persons, firms, companies, or other organizations.

 

II. Impersonal Accounts

Impersonal accounts are the accounts used for recording all transactions that are not related to individual persons, firms, companies, or other organizations.

There are two (2) types of impersonal accounts – real and nominal accounts.

 

III. Real Accounts 

Real accounts are permanent accounts that still continue at end of accounting period.

Examples of such accounts include machinery accounts, land accounts, furniture accounts, cash accounts, and accounts payable accounts.

Mostly, real accounts are included in the records of balance sheet of the business.

 

IV. Nominal Accounts 

Nominal accounts are temporary accounts that are closed at the end of accounting period.

Examples of nominal accounts include sales, purchases, gains on asset sales, wages paid, and rent paid.

Nominal accounts are used for preparing income statements, trading and profit and loss accounts.

 

 

LESSON PRESENTATION

TEACHER’S ACTIVITIES

The teacher,

1. explains double entry book keeping.

2. states the rule for debit and credit entries.

3. illustrates how to debit and credit accounts.

4. explains what journal entry is.

5. explains what a ledger is.

6. explains the differences between a journal and a ledger.

7. explains how to post from a journal to a ledger.

 

 

STUDENT’S ACTIVITIES

The students,

1. participate in the discussion on double entry.

2. practice problems involving debit and credit.

3. practice account opening and post entries.

4. practice posting to ledgers from journals.

 

 

LESSON EVALUATION

Teacher asks students to,

1. define double entry.

2. define credit and debit.

3. prepare journal entries.

4. list three accounts with debit and credit balances.

5. prepare ledger accounts from journal entries.

6. differentiate between,

• personal and impersonal accounts.

• real and nominal accounts.

 

 

THEME – BOOK KEEPING AND BUSINESS (BOOKKEEPING AS EFFECTIVE TOOLS IN BUSINESS) 

TOPIC 3 – MEANING AND TYPES OF JOURNALS

 

INSTRUCTIONAL MATERIALS

1. Ruler

2. Pencil

3. Specimen of source document

 

 

LEARNING OBJECTIVES

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

1. explain the meaning of a journal.

2. draw the correct form of a journal.

3. list different types of journals.

4. identify the contents of books of original entry.

5. use source documents for the preparation of appropriate books of original entry.

6. enter correctly, information from source documents into books of original entry.

 

 

CONTENTS OF THE LESSON

FOCUS LESSONS 

1. Meaning and Types of Journals

2. Form of a Journal

As stated in topic 4.

 

 

LESSON PRESENTATION

TEACHER’S ACTIVITIES

The teacher,

1. shows the students form of a journal.

2. explains the meaning of a journal.

3. guides students to discuss the different types of a journal.

4. demonstrates the use of source documents for the preparation of appropriate books of original entry.

5. supervises students as they enter information from source documents into books of original entry.

 

 

STUDENT’S ACTIVITIES

The students,

1. observe a form of journal as shown by the teacher.

2. draw the correct form of a journal.

3. participate in class discussions.

4. enter correctly, information from source documents into books of original entry.

 

 

LESSON EVALUATION

Teacher asks students to,

1. draw the correct form of a journal.

2. list three types of journals.

3. enter correctly information from source documents into books of original entry.

4. use source documents for the preparation of appropriate books of original entry.

 

 

THEME – BOOK KEEPING AND BUSINESS (BOOKKEEPING AS EFFECTIVE TOOLS IN BUSINESS) 

TOPIC 4 – MEANING AND TYPES OF SOURCE DOCUMENTS 

 

INSTRUCTIONAL MATERIALS

1. Source document

2. Books of original entry

3. Journals

4. Calculator

5. Board

6. Makers

7. Exercise books

8. Ruler

9. Practice questions

 

 

LEARNING OBJECTIVES

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

1. explain the meaning of source documents.

2. mention the uses of source documents.

3. explain the contents of source documents.

4. differentiate between cash and credit transactions.

5. extract information from source documents for book-keeping purposes.

 

 

CONTENTS OF THE LESSON

FOCUS LESSONS 

1. Meaning of Source Documents

A source document is the original document that contains the details of a business transaction such as names of the parties involved, amounts paid (if any), the date, and the substance of the transaction.

 

2. Uses of Source Documents

• They are used for business and financial transactions.

• They are used for recording and posting transactions into journals and ledger accounts.

• They are used for detecting fraud and irregularities.

• They are used for check and balance.

• They are used for preparing trading, profit and loss accounts, balance sheet, bank reconciliation, etc.

 

3. Types of Source Documents

A. Invoices

• Sales invoices

• Purchases

• Invoice

 

B. Receipts for payment made.

• Cash register tapes

• Credit notes

• Debit notes

• Cheques

 

 

LESSON PRESENTATION

TEACHER’S ACTIVITIES

The teacher,

1. explains the contents of each source document.

2. lists the uses of source documents.

3. shows examples of source document.

4. demonstrates how to record information into the source document into books of original entry.

 

 

STUDENT’S ACTIVITIES

The students,

1. identify different source documents.

2. explain the uses of each source document.

3. complete the source documents.

4. extract information from source document into books of original entry.

 

 

LESSON EVALUATION

Teacher asks students to,

1. define source document.

2. list the various source document and their uses.

3. list two differences between cash and credit transactions.

4. identify the contents of books of original entry.

5. use source document for posting into books of original entry.