30 ANALYSED CASH BOOK

 G E T     I N T O

  Business

DERMOT F. REYNOLDS

The Complete Textbook for
Junior Certificate

E U R O    E D I T I O N
This chapter builds on the knowledge gained in the previous chapter. It introduces opening balances in the accounts and analyses columns in the cash book. It is a complex topic, but close to the standard needed for the Junior Certificate examination.  
Presenting and Guiding the Lesson

Page 266:
Introduction

 Your pupils have already learned about VAT in earlier chapters. These introductory questions help to test their knowledge of it.

Pages 266–267:
The Sample Question

 Use your questioning skills to familiarise the students with the concept of an analysed cash book before tackling any of these questions.
Questions
Factual: How much did we receive from Mooney? (€600). How much did we pay to Hamill? (€1,300). What did we pay €4,000 for? (Wages). How much money had we got in the bank on 1 February? (€6,500). How much had we got in the bank on 8 February? (€4,440). How much VAT did we charge on the sales? (€720). How much VAT were we charged on the purchases? (€280).
Inferential: How much VAT did we collect (receive)? (€720). How much VAT were we charged? (€280). When we sold the goods on 6 February, how much in total came into the business? (€4,320). When we bought goods on 2 February, how much in total did we have to pay? (€1,680). What are the numbers in the folio column on the credit side? (The cheque numbers).
Vocabulary: What is the €4,000? (Wages paid). What is the €720? (VAT on sales). What is the €4,440? (The balance in the bank account on 8 February). What is the €600? (The money received from Mooney).

Now let the class read the question. Explain that the entries from the trial balance are recorded as balances in the accounts (shown on the opposite page). The transactions below the trial balance are shown in the cash book.

Pages 267:
Posting the Cash Book

 If the pupils have already attempted the questions in the previous chapter, they will be familiar with the routine of taking the debits from the cash book into the credit of the ledger, and from the credit of the cash book to the debit of the ledger. Help them to discover the double entries. Explain how the trial balance summarises the ledger accounts.
Key to Activities

Pages 268–272

30.1
  1. Bank €6,168, TB €6,468;
  2. Bank €8,229, TB €9,144;
  3. Bank €4,424, TB €5,344;
  4. Bank €3,068, TB €3,928;
  5. Bank €5,260, TB €11,160;
  6. Bank €37,000, TB €125,000.

30.2

 (1) E; (2) D; (3) F; (4) L; (5) *; (6) A; (7) I; (8) B; (9) K; (10) H; (11) C; (12) G.