Balancing the Drawer

Author: Anita Homesley

First Authored: February 13, 2012

Last Revised: June 13, 2018

Introduction

In this lesson, students will use their prior knowledge from the opening change fund, sales transactions and change making lessons to learn how to balance a cash drawer. This is the fourth lesson in the cash handling series.

Related Instructional Objectives Students will learn how to balance a drawer/till

Activities in this Lesson

Frustrated cashier conversation

Hooks / Set

Make a list on the board and talk about the different scenarios why a cashier could be frustrated. Expand on: a cashier must balance their till at the end of the day. What factors could effect if the person's drawer is correct. What happens if it is not. You could lose your job, some companies have standards such as: if you are short as little as $1 three different times within a certain time period (maybe 6 months) you could lose your job. If you were the owner of a business what would you allow? (Remember you are losing money!)

How to balance the drawer/till

Lecture

As we learned in the opening change fund lesson, each business starts the day with a specific amount of money, as sales are made throughout the day the amount of cash/checks/credit cards will increase. At the end of the day, an employee will run a Z tape; the register will then calculate the transactions for the day. On an electronic register, the register tape or detail audit tape will break down sales by cash, check, credit/debit cards. The process of determining if the register has the correct amount of money/checks/credit cards is called balancing the till/drawer.

To balance the drawer, follow these steps:

  1. All checks, debit/credit card receipts and cash over the opening change fund, is used to make the daily bank deposit.

Make one copy of the completed drawer balancing worksheet per student. Go over the previous steps and how to fill out a drawer balancing worksheet.

 

Resources and Materials

Cashiering activity

Independent Practice

One group of students will obtain their registers they previously counted with a opening change fund, example everyone would have $200 to start. They will set up their registers around the room (maybe make a sign as to the name of their business). Cashiers should remember the steps to make change and make sure they are treating the customers like this was a real business.

The other group of students will obtain cash/checks and transaction cards. They will randomly approach cashiers and give them a transaction card and the amount of cash or check specified.

Cashiers will make a specified number of cash/credit card transactions, after they are done, they will determine if their drawer/till is balanced, over or short. If they are not balanced, they will try to determine what happened to cause this discrepancy. To balance their drawer, cashiers will need to count all cash, checks, add all transactions (they kept the sales receipts), subtract whatever amount of money they started with (their opening change fund). Their cash and receipts should equal the same amount.

Resources and Materials

Assessment

Assessment Type: Demonstrations

Student will count an opening change fund, make a predetermined amount of cash/credit card transactions, and determine if their drawer/till is balanced, over or short. If it does not balance they will try to determine what happened to cause this discrepancy.

Resources and Materials

Vocabulary

"Z" Reading

Turn register key to the "Z" setting and it register will produce an end of day calculation of sales, this will reset the register to “0” to begin the next day. You can remember which to use by thinking how z is the end of the alphabet and it is also the end of the day. Businesses also have a way to Z out the end of the month and year.

"X" Reading

An employee will turn the register key to the "X" setting and hit the cash key, this will cause the register to create a sales tape which shows a subtotal of sales for the day, this does not zero out the register but is only a subtotal. Some businesses actually take this at hourly or shift intervals to understand sales trends and staff the business with the adequate number of employees accordingly.

Balancing the drawer/till

Determining whether the drawer/till is even, short or over, this is done by counting the drawer, subtracting the opening change fund for the next day and comparing it to the detail audit strip which the register will produce when register is Z’d out at the end of day.

Detailed Audit Strip

Tape produced taking a "X" or "Z" reading of the register, used to compare cash, checks, etc in drawer.

Paid Out

Receipt for goods or services the owner has given permission to take money out of the drawer to pay for something they approve. Examples might be purchasing register tape, halloween candy to give to their customers, the window washer etc. Owners usually do not want to leave blank, signed checks around the business.

 

Prior Preparation

Students need to prepare an opening change fund on a prior day and put their name on their till, if the till does not have a lid, they may want to tape a piece of paper to cover their till so they know it has not been tampered with.

Students also need to obtain an envelope with random cash and coin and blank checks, and multiple transaction cards.

Materials needed

Class money for opening change fund and to purchase items

Tills/Drawers

Blank Checks

 

Instructions

 

Students will be divided into two groups, one half of the class will be cashiers on day one and the remainder will be customers. Second day the roles will switch. Students (customers) go around the room randomly and hand the cashier their transaction card. They need to write a sales slip with just the transaction amount, and make change. They keep all their sales slips in their drawer. At the end of the day the cashiers will need to count and balance their tills and decide if they are over, short or even, if not why.

Prior learning

             Student can create an opening change fund.

             Student can make change, using the add-on method of change making.

             Student can write sales slips.

             Student can write checks.