**Senior Secondary 3 - Financial Accounting Lesson Plan**
**Topic: Consignment Account II**
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**Lesson Duration:** 90 minutes
**Lesson Overview:**
This lesson plan focuses on advancing students' understanding of consignment accounting, emphasizing the preparation and analysis of accounts from the perspective of the consignor and consignee. Students will also learn about relevant entries, treatments, and how to deal with abnormal losses.
**Learning Objectives:**
By the end of this lesson, students will be able to:
1. Understand the advanced concepts of consignment accounting.
2. Identify the key differences between consignor and consignee transactions.
3. Prepare consignment accounts, including costs, revenue, and profit calculations.
4. Define and handle abnormal losses in consignment.
5. Analyze the consignment accounts to determine financial performance.
**Materials Required:**
- Whiteboard and markers
- Textbooks/handouts on consignment accounting
- Projector and slides
- Ledger paper/accounting journals
- Pens, pencils, calculators
- Sample consignment accounting problems and solutions
**Lesson Structure:**
**1. Introduction (10 minutes)**
- **Greeting & Attendance:** Welcome students and take attendance.
- **Recap of Previous Lesson:** Briefly revisit Consignment Accounts I, focusing on key concepts and terminology.
- **Objective Brief:** Outline the goals and importance of today's lesson on Consignment Account II.
**2. Direct Instruction (30 minutes)**
- **Explanation of Consignment Accounting:**
- **Consignor’s Perspective:** Record of goods sent, expenses incurred, and revenue earned.
- **Consignee’s Perspective:** Recording commission, sales, and expenses.
- **Advanced Entries:**
- Describing pro forma entries for goods consigned, incurred expenses, sales, and settlements.
- Treatment of losses: normal vs. abnormal.
- Calculation of consignee’s commission.
- **Handling Abnormal Loss:**
- Definition and examples.
- Accounting entries for abnormal loss using cost price or market price, whichever is lower.
**3. Demonstration (15 minutes)**
- **Example Problem:**
- Present a detailed example on the board.
- Walkthrough the entries from sending consignment to final settlement including an abnormal loss scenario.
- **Solving Step-By-Step:**
- Prepare entries in respective books of consignor and consignee.
- Use ledger accounts to illustrate financial performance.
**4. Guided Practice (20 minutes)**
- **Class Activity:**
- Distribute a consignment problem to the students.
- Work through the problem step-by-step, guiding students' understanding on preparing the consignment account and dealing with abnormal losses.
- **Discussion:**
- Students compare and discuss their answers in small groups.
- Clarify any doubts or misconceptions immediately.
**5. Independent Practice (15 minutes)**
- **Workbook Activity:**
- Assign a new set of consignment account problems for individual practice.
- Students prepare the necessary accounting entries and consignment accounts.
- **Monitor & Assist:**
- Walk around the classroom to assist students as needed.
**6. Assessment & Closing (10 minutes)**
- **Review Key Points:**
- Summarize the main points on consignment accounts, entries, and handling of abnormal losses.
- **Quiz:**
- Short formative quiz to assess students’ grasp of concepts.
- **Q&A Session:**
- Address any final questions or concerns from the students.
**7. Homework Assignment:**
- Assign a homework task requiring students to prepare consignment accounts for a given scenario, ensuring they include treatment for an abnormal loss.
**8. Wrap-Up:**
- **Conclusion:**
- Briefly mention the next topic to be discussed in the following class.
- Encourage students to review today's lesson and practice more consignment problems at home.
**9. Teacher’s Reflection:**
- After the class, reflect on what worked well, what didn’t, and how the lesson can be improved for future sessions.
**Materials for Further Reading:**
- Provide additional textbook references or online resources for students who want to deepen their understanding.
By following this lesson plan, students will gain a comprehensive understanding of consignment accounting in a structured, interactive, and thorough manner.