### Financial Accounting Lesson Plan
**Grade Level**: Senior Secondary 2
**Lesson Topic**: Accounting for Non-Profit Making Organizations
**Duration**: 90 minutes
---
#### **Lesson Objectives:**
1. **Knowledge**: Students will understand the unique characteristics of non-profit making organizations and how their accounting differs from for-profit entities.
2. **Application**: Students will learn to prepare and interpret the financial statements for non-profit making organizations such as receipts and payments accounts, income & expenditure accounts, and balance sheets.
3. **Analysis**: Students will be able to analyze the financial health of a non-profit organization using the financial statements.
---
#### **Materials Needed:**
- Whiteboard and markers
- Projector and computer
- Handouts of sample financial statements for a non-profit organization
- Textbook on Financial Accounting (if applicable)
- Calculators
- Notebooks and pens
---
#### **Introduction (15 minutes):**
- **Greeting and Settling Down** (2 minutes)
- **Ice-Breaker Question**: Ask students if they know any non-profit organizations and what kind of activities they engage in. (5 minutes)
- **Lesson Overview**: Briefly explain what will be covered during the lesson and the importance of accounting for non-profit organizations. (2 minutes)
- **Learning Objectives**: Display and explain the lesson objectives. (2 minutes)
- **Quick Poll**: Use a quick poll to gauge students’ prior knowledge of accounting for non-profit organizations. (4 minutes)
---
#### **Lesson Development & Activities (50 minutes):**
1. **Definition and Characteristics** (10 minutes):
- Discuss the definition and features of non-profit organizations.
- Explain how their accounting needs differ from those of for-profit entities.
2. **Key Financial Statements** (10 minutes):
- Describe the key financial statements used by non-profit organizations:
- Receipts and Payments Account
- Income & Expenditure Account
- Balance Sheet
3. **Detailed Walkthrough of Receipts & Payments Account** (10 minutes):
- Provide an example and explain each component.
- Emphasize cash basis vs. accrual accounting.
4. **Income & Expenditure Account** (10 minutes):
- Walkthrough on how to convert data from Receipts & Payments Account to Income & Expenditure Account.
- Explain revenue recognition and expense matching principles.
5. **Balance Sheet** (10 minutes):
- In-depth discussion of a non-profit organization's balance sheet.
- Focus on Fund Accounting, Assets, and Liabilities.
---
#### **Group Activity (20 minutes):**
1. **Real-World Example**:
- Divide students into groups of four.
- Provide each group with a handout containing transaction data for a hypothetical non-profit organization.
- Each group will create the receipts & payments account, income & expenditure account, and balance sheet using the provided data.
- Circulate the room to provide guidance and support.
2. **Presentation**:
- Have one representative from each group present their financial statements to the class.
- Discuss any discrepancies and correct errors collectively.
---
#### **Conclusion (15 minutes):**
- **Summary of Key Points** (5 minutes):
- Reiterate the importance of proper accounting in non-profit organizations.
- Quick refresher of the financial statements.
- **Q&A Session** (5 minutes):
- Open the floor for any final questions and clarifications.
- **Exit Slip** (5 minutes):
- Ask students to write down one thing they learned and one question they still have.
- Collect the slips as they leave the classroom.
---
#### **Homework Assignment:**
- Provide students with another set of transaction data and ask them to prepare the Receipts & Payments Account, Income & Expenditure Account, and Balance Sheet at home.
---
#### **Assessment:**
- Review the homework assignment to assess students' understanding.
- Evaluate group activity performance and exit slips for formative assessment.
---
This lesson plan aims to engage students actively, ensuring they grasp the fundamentals of accounting for non-profit organizations through interactive activities and clear explanations.