Lesson Plan 8.1 – Recording Departmental Purchases
and Cash Payments
Course Title – Accounting II
Lesson Title – Recording Departmental Purchases and Cash Payments
Specific Objective – Understand the proper procedures for recording
departmental purchases and cash payments.
Performance Objectives:
 Identify accounting concepts and practices related to departmental purchases
and cash payments;
 Perform file maintenance;
 Journalize and post departmental purchases and purchases returns;
 Journalize and post cash payments;
 Reconcile a bank statement;
 Define accounting terms related to the lesson.
TEKS: 130.167.c:
2.F – understand that internal accounting controls exist to ensure the proper
recording of financial transactions;
6.A.-C – process preliminary budget detail; prepare budget reports; and
determine relevant cost and revenue data for decision-making purposes.
TAKS: R1, M10
Preparation
Materials Needed:
 Projection system
 Century 21’s Textbook, Chapter 1
 Glencoe’s Textbook, Chapter 18, and Demonstration Problems
 Accounting software and spreadsheet software.
Sponge/Focus Activity:
 Discuss businesses that are organized into departments; ask students why
these businesses might want to keep separate accounting records for each
department. Also, ask students what types of decisions a firm makes
regarding departments. Explain that because there are firms that perform
accounting according to departments, it is important that they learn
accounting procedures related to departmental accounting.

Accounting in Your Career, p. 5, in Century 21’s Textbook or Exploring the
Real World of Business, in Glencoe’s Textbook.

A possible end of class activity is to give each student a 3 x 5 card and give
Lesson Plan 8.1 – Recording Departmental
Purchases and Cash Payments
Copyright
© Texas Education Agency, 2011. All rights reserved.
ACCOUNTING II
them several minutes to answer the following question:
o “What is the most important item you learned today?” Have them turn
in the 3 x 5 card before they leave class. (You can use this activity
whenever you want feedback on what your students learned.)
Lesson Content:
See Century 21’s Textbook, Chapter 1, or Glencoe’s Textbook, Chapter 18.
Here is an outline:
I.
Journalizing and posting purchases and purchases returns
A. Departmental accounting systems
B. Journalizing purchases on account
C. Posting from the purchases journal
D. Posting totals of a purchases journal
E. Purchases journal with posting complete
F. Issuing a debit memorandum for departmental purchases returns
and allowances
G. Journalizing a debit memorandum
H. Posting from a purchases returns and allowances journal
II.
Journalizing and posting cash payments and reconciling the bank
statement
A. Departmental cash payments
B. Journalizing a purchases discounts
C. Taking a discount after a purchase return
D. Recording entries in a cash payments journal
E. Cash payment to replenish petty cash
F. Posting from a cash payments journal
G. Reconciling a bank statement
H. Journalizing bank charges
Teaching Strategies:
 With the Century 21 textbook, complete the Work Together problems as a
class, then let your students work the On Your Own problems by themselves
and go over the answers with the class.

Glencoe’s Demonstration Problems.
Assessment:

For problems you can use Peachtree Accounting from Glencoe, Glencoe
Accounting Software, Century 21 Accounting Software, or a spreadsheet.

From Century 21’s Textbook
o Guided Practice
 Work Together: Journalizing and posting purchases on
account and purchases returns and allowances
 On Your Own: Journalizing and posting purchases on
account and purchases returns and allowances
Lesson Plan 8.1 – Recording Departmental
Purchases and Cash Payments
Copyright
© Texas Education Agency, 2011. All rights reserved.
ACCOUNTING II

Work Together: Journalizing and posting departmental cash
payments
 On Your Own: Journalizing and posting departmental cash
payments
o Independent Practice
 Journalizing and posting departmental purchases on account
and purchases returns and allowances
 Journalizing and posting departmental cash payments
 Reconciling a bank statement
 Performing file maintenance activities; journalizing
departmental purchases and cash payments; reconciling a
bank statement
 Journalizing purchases at net amount and using the account
Discounts Lost
o Additional Activities:
 Applied Communication
 Cases for Critical Thinking
o Open Notes and textbook Quiz: Study Guide for Chapter
 This lesson is also assessed through the Unit Test at the end of the Unit.
Additional Resources:
Textbooks:
Guerrieri, Donald J., F. Barry Haber, William B. Hoyt, and Robert E. Turner,
Glencoe Accounting Real-World Applications & Connections, Advanced
Course, Fourth Edition, Glencoe McGraw-Hill: New York, New York.
Ross, Kenton E., CPA, Mark W. Lehman, CPA, Claudia Bienias Gilbertson, CPA,
Robert D. Hanson, Century 21 Accounting Advanced, Anniversary Edition,
Thomson South-Western: Mason, OH, 2003.
Multimedia:
Century 21’s Teacher Resource CD
Websites:
http://www.accounting.swpco.com
Lesson Plan 8.1 – Recording Departmental
Purchases and Cash Payments
Copyright
© Texas Education Agency, 2011. All rights reserved.
ACCOUNTING II