Double Column Cash Book Definition, Format, Use of Columns, Preparation

Lesson Plan: Double Column Cash Book

Subject: Financial Accounting
Class: SS1
Term: 1
Week: 10
Age: 15-16 years
Topic: Double Column Cash Book
Sub-topic: Definition, Format, Use of Columns, Preparation
Duration: 1 hour
Behavioral Objectives:
By the end of the lesson, students should be able to:

1. Define the cash book and explain its purpose.
2. Identify the format of a double column cash book.
3. Explain the use of each column in a double column cash book.
4. Prepare a double column cash book from given business transactions.

Keywords:

• Double Column Cash Book
• Cash Book
• Bank Column
• Cash Column
• Cash Transactions
• Bank Transactions

Set Induction (5 mins)

The teacher will ask students how businesses track their money when both cash and bank transactions are involved. This will lead into a discussion about the double column cash book, a tool used to track both cash and bank transactions in one book.

Entry Behavior

Students should have prior knowledge of the single column cash book and basic journal entries from earlier lessons. They should also be familiar with debits, credits, and the concept of cash flow.

Learning Resources and Materials:

• Chalkboard/Whiteboard
• Blank double column cash book template
• Projector (if available)
• Sample business transactions

Building Background/Connection to Prior Knowledge:

Students will recall the concepts of the single column cash book, which only tracks cash transactions, and now move on to the double column cash book, which also includes bank transactions. They will also build on their understanding of cash flows and how to keep accurate financial records.

Embedded Core Skills:

• Numeracy Skills: Understanding and applying cash and bank transactions in financial records.
• Critical Thinking: Recognizing the importance of keeping accurate records of cash and bank transactions in businesses.
• Problem Solving: Correctly classifying transactions into the appropriate columns and balancing the cash book.

Learning Materials:

• Sample double column cash book
• Blank templates for practice
• Business transaction scenarios

Instructional Materials:

• Whiteboard markers
• Projector (for illustrating examples)
• Sample transaction sheets

Content:

1. Double Column Cash Book:
   • Definition: A double column cash book is a special journal used to record all cash and bank transactions of a business. It has two columns: one for cash transactions and the other for bank transactions.
2. Format of the Double Column Cash Book:
   • The double column cash book has three main parts:
     • Date Column: For recording the date of each transaction.
     • Details Column: For describing each transaction (who was paid, who paid, or the nature of the transaction).
     • Cash Column: For recording the amounts of cash received or paid.
     • Bank Column: For recording the amounts of money transferred to or from the bank.
     • Voucher Column (Optional): For referencing the voucher number of the transaction.
3. Use of Each Column:
   • Date Column: Lists the date of each transaction. This helps in maintaining a chronological order of all transactions.
   • Details Column: Provides a brief description of the transaction. For example, if cash is received from a customer or if a payment is made to a supplier.
   • Cash Column: Used to record cash receipts or payments. The amount of money received or paid in cash is entered here.
   • Bank Column: Used to record transactions involving the bank, such as deposits or withdrawals. This is for businesses that maintain a bank account and process payments through it.
   • Voucher Column: This is used to record the voucher number corresponding to each transaction. It serves as a reference to the supporting documents.
4. Preparing a Double Column Cash Book:
   • The teacher will guide students in preparing a double column cash book. Students will be provided with a set of business transactions, and they will need to classify them into cash and bank columns.

Presentation Steps:

Step 1: Revision of Previous Topic (5 mins)
The teacher will briefly review the single column cash book and highlight its limitations when both cash and bank transactions need to be recorded. Students will be asked how they would handle bank transactions and what kind of journal would be best for tracking them.

Step 2: Introduction of New Topic (15 mins)
The teacher will explain the double column cash book format, describing each of the columns and their purposes. Sample business transactions will be provided, and students will be shown how to record these transactions in the appropriate columns.

Step 3: Student Contributions and Corrections (15 mins)
Students will be given a set of transactions and will work in pairs to prepare a double column cash book. The teacher will circulate around the class to provide assistance and corrections as necessary.

Teacher’s Activities:

• Define and explain the double column cash book.
• Illustrate the format and use of each column.
• Demonstrate how to prepare a double column cash book using sample transactions.
• Guide students as they work on exercises, providing feedback and corrections.

Learner’s Activities:

• Participate in discussions about the cash book and its uses.
• Prepare a double column cash book using sample transactions.
• Ask questions for clarification when needed.

Class Activity Discussion (FAQs):

Frequently Asked Questions (FAQs):

1. What is a double column cash book, and why is it important?
   Answer: A double column cash book is used to record both cash and bank transactions. It is important because it allows businesses to keep a clear record of all their financial transactions in one place, helping to track both cash flow and bank transactions.
2. What are the columns in a double column cash book?
   Answer: The double column cash book has the following columns: Date, Details, Cash Column, Bank Column, and Voucher Column (optional).
3. How do you differentiate between cash and bank transactions in a double column cash book?
   Answer: Cash transactions are recorded in the cash column, while bank transactions are recorded in the bank column.
4. What is the purpose of the ‘Voucher’ column in the cash book?
   Answer: The ‘Voucher’ column records the voucher number for each transaction, which serves as a reference to the supporting document for that transaction.
5. Can a business use a single column cash book for both cash and bank transactions?
   Answer: No, a single column cash book can only track cash transactions. For both cash and bank transactions, a double column cash book is needed.
6. Why is the ‘Details’ column important?
   Answer: The ‘Details’ column is important because it provides a description of each transaction, which helps to clarify the nature of the financial event being recorded.
7. How do you prepare a double column cash book from a set of transactions?
   Answer: To prepare a double column cash book, classify the transactions into cash and bank categories, and record the amounts in the appropriate columns, along with the date and details of each transaction.
8. What type of transactions would be recorded in the ‘Cash’ column?
   Answer: Cash receipts, such as payments from customers, and cash payments, such as payments to suppliers, would be recorded in the ‘Cash’ column.
9. What is the advantage of using a double column cash book?
   Answer: The advantage of using a double column cash book is that it allows businesses to keep track of both cash and bank transactions in a single book, making financial management easier and more organized.
10. How do you balance a double column cash book?
    Answer: To balance a double column cash book, sum up all the entries in both the cash and bank columns and calculate the closing balance. Ensure that the debit and credit entries match in both columns.

Objective Questions (15 Fill-in-the-Blank Questions with Options a, b, c, or d):

1. A double column cash book is used to record __________ transactions.
   a) Cash only
   b) Bank only
   c) Cash and bank
   d) Revenue only
2. The __________ column records transactions involving cash received or paid.
   a) Bank
   b) Cash
   c) Date
   d) Voucher
3. The __________ column records transactions involving payments to or from the bank.
   a) Cash
   b) Bank
   c) Details
   d) Date
4. A __________ column in the cash book provides a description of the transaction.
   a) Date
   b) Details
   c) Cash
   d) Voucher
5. The purpose of the __________ column is to reference the voucher number of each transaction.
   a) Date
   b) Details
   c) Voucher
   d) Bank
6. The __________ column records the cash balance after each transaction.
   a) Voucher
   b) Details
   c) Cash
   d) Balance
7. In a double column cash book, the bank column records __________.
   a) Cash payments only
   b) Bank receipts and payments
   c) Only bank deposits
   d) Cash receipts only
8. The date of a transaction is recorded in the __________ column.
   a) Details
   b) Cash
   c) Bank
   d) Date
9. A double column cash book is typically used in businesses with __________.
   a) Only cash transactions
   b) Both cash and bank transactions
   c) No bank accounts
   d) No cash transactions
10. The closing balance in the cash book is calculated by __________.
    a) Summing the amounts in the ‘Details’ column
    b) Adding all entries in the ‘Cash’ column only
    c) Adding all entries in both the ‘Cash’ and ‘Bank’ columns
    d) Subtracting the ‘Voucher’ column entries from the total balance
11. The double column cash book includes both __________ transactions.
    a) Bank and cash
    b) Capital and revenue
    c) Profit and loss
    d) Personal and impersonal
12. To prepare a double column cash book, __________.
    a) Only cash transactions need to be recorded
    b) Only bank transactions need to be recorded
    c) Cash and bank transactions need to be classified and recorded
    d) No need to classify transactions
13. The __________ column tracks the balance of cash available to the business.
    a) Bank
    b) Cash
    c) Voucher
    d) Date
14. The bank column in a double column cash book is used for __________.
    a) Personal account transactions
    b) Bank receipts and payments
    c) Cash withdrawals only
    d) Only cash deposits
15. The double column cash book is commonly used in businesses that __________.
    a) Have large cash transactions only
    b) Deal with both cash and bank payments
    c) Have no bank account
    d) Only deal with credit transactions

Evaluation Questions (10 Questions):

1. What is a double column cash book, and why is it used in businesses?
2. How do you prepare a double column cash book?
3. What is the difference between a single column cash book and a double column cash book?
4. Explain the function of the ‘Date’ column in the double column cash book.
5. What types of transactions are recorded in the ‘Cash’ column?
6. How is the ‘Bank’ column different from the ‘Cash’ column?
7. Why is it important to record both cash and bank transactions separately in a double column cash book?
8. How do you balance a double column cash book?
9. What is the role of the ‘Details’ column in the double column cash book?
10. How do the ‘Voucher’ and ‘Details’ columns help in tracking financial transactions?

Conclusion (5 mins):

The teacher will summarize the importance of the double column cash book in keeping track of both cash and bank transactions. The lesson will emphasize the need for accurate recording and balancing of the cash book to ensure proper financial management. Students will be encouraged to practice preparing a double column cash book using real-life examples.