Lesson Plan for Senior Secondary 2 - Financial Accounting - Accounts Of Non-profit - Making Organizations

### Lesson Plan: Accounts of Non-Profit-Making Organizations #### Class: Senior Secondary 2 #### Subject: Financial Accounting #### Duration: 90 minutes #### Topic: Accounts of Non-Profit-Making Organizations --- ### Objectives: 1. **Knowledge**: Students will understand the basic concepts and principles behind accounting for non-profit organizations. 2. **Comprehension**: Students will be able to differentiate between financial statements of profit-making and non-profit-making organizations. 3. **Application**: Students will practice preparing the Receipts and Payments Account, Income and Expenditure Account, and Balance Sheet for a non-profit-making organization. 4. **Analysis**: Students will analyze and interpret financial statements of non-profit organizations. --- ### Materials Needed: - Whiteboard and markers - Projector and computer - Copies of sample financial statements of a non-profit organization - Textbooks - Notebooks and pens --- ### Lesson Structure: #### 1. Introduction (10 minutes) - **Greetings and Roll Call**: Start with a brief introduction to the day's lesson. - **Objective Overview**: Share the objectives and agenda of the class. - **Engage**: Ask students if they have any experience with non-profit organizations either as volunteers or participants. Discuss briefly what they understand by the term 'non-profit-making organization'. #### 2. Instructional Input (30 minutes) - **Definition and Purpose**: Explain what non-profit organizations are and their primary objectives (social, educational, cultural, or charitable purposes rather than profit-making). - **Types of Non-Profit Organizations**: Examples include charities, clubs, societies, and trusts. - **Key Financial Statements**: - **Receipts and Payments Account**: Highlights cash inflows and outflows. - **Income and Expenditure Account**: Similar to a Profit and Loss account, it shows revenue and expenses. - **Balance Sheet**: Shows the financial position of the organization at a given point in time. - **Differences from Profit-Making Organizations**: Highlight differences such as the sources of funds (donations, grants) versus sales revenue and the focus on service rather than profit. #### 3. Guided Practice (25 minutes) - **Case Study**: Provide students with a sample case study of a non-profit organization (possibly a sports club or charity). - **Step-by-Step Preparation**: Guide them through preparing the Receipts and Payments Account from given data. - **Transition to Income and Expenditure Account**: Show how to adjust for accruals and prepayments and derive surplus or deficit. #### 4. Independent Practice (20 minutes) - **Exercise**: Provide a fresh set of data for a different non-profit organization. - **Task**: Ask students to independently prepare the Receipts and Payments Account, Income and Expenditure Account, and Balance Sheet. - **Review**: Circulate the classroom to provide guidance and feedback. #### 5. Analysis and Interpretation (15 minutes) - **Group Discussion**: Divide the class into small groups. Each group analyzes a prepared financial statement. - **Interpretation**: Focus on interpreting the overall financial health, sources of funds, and utilization of funds. - **Presentation**: Groups present their findings to the class. #### 6. Conclusion (10 minutes) - **Recap**: Briefly go over the key differences between non-profit and profit-making organizations. - **Q&A Session**: Allow students to ask any final questions. - **Assignment**: Homework to prepare mock financial statements for a hypothetical non-profit organization they come up with. --- ### Assessment: - **Participation**: Active involvement in discussions and group activities. - **Prepared Statements**: Accuracy and completeness in the individual accounts prepared during class. - **Homework Assignment**: Evaluation based on understanding and application of concepts. --- ### Follow-Up: - **Next Lesson Preview**: Mention that the next class will go deeper into auditing principles for non-profit organizations. - **Extra Resources**: Recommend additional reading chapters from textbooks and online resources. ### Notes for Teachers: - Always encourage questions to ensure understanding. - Adjust the complexity of case studies based on the students' comprehension levels. - Use real-life examples where possible to make the lesson more relatable. --- This comprehensive lesson plan aims to provide Senior Secondary 2 students with a solid understanding of accounting practices for non-profit organizations, emphasizing both theoretical knowledge and practical application.