Bank Paying-in-Slip, Debit Note, Credit Note, Statement of Account, and Vouchers

DETAILED LESSON NOTE ON BUSINESS DOCUMENTS

Subject: Bookkeeping

Class: SS1
Term: First Term
Week: 8
Age: 14 – 16 years
Topic: Business Documents
Sub-Topic: Bank Paying-in-Slip, Debit Note, Credit Note, Statement of Account, and Vouchers
Duration: 40 minutes

Behavioral Objectives

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

1. Explain the purpose and uses of various business documents.
2. Describe the function of a credit note, debit note, and other key documents.
3. Identify examples of source documents and their uses in accounting.
4. Arrange business documents in their correct order of issuance.
5. Explain reasons for issuing credit and debit notes.

Keywords

• Bank Paying-in-Slip
• Debit Note
• Credit Note
• Statement of Account
• Vouchers
• Source Documents

Set Induction

The teacher will ask students if they have ever seen a receipt, cheque, or invoice and inquire how these documents are used in business.

Entry Behavior

Students have basic knowledge of receipts and payments from previous lessons on financial transactions.

Learning Resources and Materials

1. Sample copies of receipts, invoices, debit notes, and credit notes.
2. Charts showing the uses and importance of business documents.
3. Accounting textbooks.

Embedded Core Skills

1. Critical thinking.
2. Financial literacy.
3. Organization skills.

Building Background/Connection to Prior Knowledge

Students previously learned about recording transactions in the cash book.

Instructional Materials

1. Lagos State Scheme of Work.
2. Chart showing types of business documents.

Content

Explanation of Key Business Documents

1. Bank Paying-in-Slip
   • A form used to pay cash, cheques, or drafts into a bank account.
   • Prepared in duplicate or triplicate for bank use and customer record.
2. Debit Note
   • Issued by a seller to correct an undercharge in the customer’s account.
   • Example: A seller undercharges a customer by ₦2,700; a debit note is issued for this correction.
3. Credit Note
   • Issued by a seller to correct an overcharge in the customer’s account.
   • Also issued when goods are returned or damaged.
4. Statement of Account
   • A summary of transactions between a seller and a credit customer, sent monthly.
5. Vouchers
   • Used to obtain authorization for payments made by cash, cheque, or letters of authority.

Uses of Source Documents

• Preparation of books of accounts.
• Providing written evidence of transactions.
• Proof of ownership, e.g., receipt.
• Audit purposes and account reconciliation.
• Authorization for payments.

Presentation Steps

Step 1: Revision of the Previous Lesson

• Teacher revises the previous lesson on recording transactions in the cash book.

Step 2: Introduction of the New Topic

• The teacher explains business documents and demonstrates with examples.

Step 3: Students’ Contributions and Corrections

• Students identify and describe different business documents based on examples provided.

Objective Questions (15 Fill-in-the-Blank Questions)

1. A _____ is used to pay cheques into a bank account.
   a) Receipt
   b) Debit note
   c) Bank paying-in-slip
   d) Invoice
2. A credit note is issued to correct _____.
   a) An undercharge
   b) An overcharge
   c) Damaged goods
   d) Cash payments
3. The document that summarizes customer transactions monthly is called _____.
   a) Statement of account
   b) Debit note
   c) Invoice
   d) Voucher
4. _____ are used to obtain authorization for payments.
   a) Receipts
   b) Debit notes
   c) Vouchers
   d) Statements of account
5. Goods returned by the buyer to the seller are recorded in the _____.
   a) Returns outwards journal
   b) Returns inwards journal
   c) Cash book
   d) Ledger
6. A customer sends a debit note to correct _____.
   a) An overcharge
   b) An undercharge
   c) A receipt error
   d) Bank deposit
7. Goods returned to the supplier attract a _____.
   a) Receipt
   b) Credit note
   c) Debit note
   d) Voucher
8. A _____ is prepared when a seller overcharges a buyer.
   a) Credit note
   b) Invoice
   c) Debit note
   d) Statement of account
9. Vouchers are examples of _____.
   a) Books of account
   b) Source documents
   c) Financial statements
   d) Payment receipts
10. The document used for bank deposits is the _____.
    a) Debit note
    b) Bank paying-in-slip
    c) Invoice
    d) Receipt

Class Activity Discussion (15 FAQs with Answers)

1. What is a source document?
   A source document is a written record of a business transaction.
2. What is the purpose of a credit note?
   To correct an overcharge or adjust for returned goods.
3. Why is a debit note issued?
   To correct an undercharge in a customer’s account.
4. What is a voucher?
   A document used to authorize payments.
5. What does a statement of account contain?
   It summarizes transactions, including payments, invoices, and balances.
6. Who prepares a bank paying-in-slip?
   The person depositing cash or cheques into the bank.

Evaluation Questions (10 Questions)

1. Define a credit note and give an example of its use.
2. What information is found on a bank paying-in-slip?
3. Describe the use of a statement of account.
4. Why is a debit note issued?
5. List five examples of source documents.

Weekend Assignment

1. Goods returned by the buyer is recorded as _____.
   a) Carriage inwards
   b) Returns inwards
   c) Returns outwards
   d) Purchases

Correct answers: 1 – c, 2 – b, 3 – a.