### 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
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### 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.
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### Materials Needed:
- Whiteboard and markers
- Projector and computer
- Copies of sample financial statements of a non-profit organization
- Textbooks
- Notebooks and pens
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### 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.
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### 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.
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### 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.
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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.