### Lesson Plan: Financial Accounting - Company Accounts II
#### **Class: Senior Secondary 2**
#### **Subject: Financial Accounting**
#### **Topic: Company Accounts II**
#### **Duration: 60 minutes**
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#### **Objectives:**
By the end of the lesson, students should be able to:
1. Understand the nature and purpose of company accounts.
2. Describe different types of company accounts, including Profit & Loss Account and Balance Sheet.
3. Interpret basic company financial statements.
4. Prepare simple company financial statements.
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#### **Materials Needed:**
- Textbooks
- Whiteboard and markers
- Projector (if available)
- Sample financial statements
- Handouts summarizing key points
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#### **Lesson Structure:**
**1. Introduction (10 minutes)**
- Greet the class and take attendance.
- Briefly review the previous lesson on Company Accounts I.
- Pose an opening question to engage students: "Can anyone explain why companies need to prepare financial statements?"
**2. Lecture/Presentation (20 minutes)**
- Define key concepts:
- **Company Accounts:** Financial records that include detailed information about a company's financial activities.
- **Profit & Loss Account:** A statement that summarizes the revenues, costs, and expenses incurred during a specific period.
- **Balance Sheet:** A statement of the financial position of a company at a specific point in time, detailing assets, liabilities, and ownership equity.
- Discuss the structure and components of a Profit & Loss Account and Balance Sheet.
- **Profit & Loss Account:**
- Revenue (Sales, Service Income)
- Costs of Goods Sold (COGS)
- Gross Profit
- Operating Expenses (Salaries, Rent, Utilities)
- Net Profit/Loss
- **Balance Sheet:**
- Assets (Current and Non-current)
- Liabilities (Current and Non-current)
- Equity (Share Capital, Retained Earnings)
- Use projector/whiteboard to display and explain a sample Profit & Loss Account and Balance Sheet.
**3. Group Activity (15 minutes)**
- Split students into small groups.
- Hand out sample company data and ask each group to prepare a simplified Profit & Loss Account and Balance Sheet.
- Encourage students to discuss and collaborate while the teacher monitors and provides guidance.
**4. Group Presentation and Discussion (10 minutes)**
- Each group will present their prepared financial statements.
- Conduct a class discussion to compare and contrast the different presentations.
- Provide feedback and correct any misconceptions.
**5. Conclusion (5 minutes)**
- Summarize the key points of the lesson.
- Emphasize the importance of company accounts in financial decision-making.
- Answer any remaining questions from the students.
- Give a brief overview of the next lesson.
**6. Homework Assignment**
- Assign students to find and review the annual report of a listed company, focusing on its Profit & Loss Account and Balance Sheet. They should write a short summary of their findings.
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#### **Assessment:**
- Active participation in group activity and class discussion.
- Accuracy of financial statements prepared during the group activity.
- Quality and clarity of the homework assignment.
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#### **Teacher’s Reflection:**
- Evaluate the effectiveness of the lesson plan.
- Note areas where students struggled and may need further clarification in future lessons.
- Consider any adjustments for better engagement and understanding in subsequent lessons.
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**End of Lesson Plan**