# Lesson Plan: Financial Accounting - Consignment Account
## Objective:
By the end of this lesson, students should be able to understand and apply the concepts of consignment accounting, prepare consignment accounts, distinguish between consignment and sales, and accurately record transactions related to consignment in financial statements.
## Grade Level:
Senior Secondary 2
## Duration:
80 minutes (2 periods of 40 minutes each)
## Materials Needed:
- Whiteboard and markers
- Projector and screen
- PowerPoint slides
- Textbooks
- Handouts with sample transactions
- Notebooks and pens
## Instructor Preparation:
1. Prepare PowerPoint slides covering the basic concepts of consignment accounting.
2. Develop practical examples and transactions for class discussion.
3. Create a handout with sample transactions and ledger formats.
4. Plan engaging activities to facilitate understanding and application of the concepts.
## Lesson Procedure:
### Period 1: Introduction & Theory (40 minutes)
#### Introduction (5 minutes)
- Greet the students and introduce the topic: Consignment Account.
- Explain the learning objectives.
#### Concept Explanation (15 minutes)
- Define consignment and differentiate it from regular sales.
- Consignment: Goods sent by a consignor (owner) to a consignee (agent) to sell on behalf of the consignor.
- Ownership remains with the consignor until goods are sold.
- Define key terms: Consignor, Consignee, Proforma Invoice, Account Sales.
#### Consignment Accounting Process (20 minutes)
- Explain the journal entries involved:
- When goods are consigned.
- When expenses are incurred by the consignor and consignee.
- When goods are sold by the consignee.
- When commission is calculated and recognized.
- When final remittance is made.
- Demonstrate with examples.
### Period 2: Practical Application & Exercises (40 minutes)
#### Working Through an Example (20 minutes)
- Provide a comprehensive sample transaction.
- Guide students through the preparation of:
- Consignment Account
- Consignee’s Account
- Consignment Debtors Account
- Discuss how to deal with abnormal losses and unsold stock at the end of the accounting period.
#### Class Activity (15 minutes)
- Distribute handouts with different scenarios and transactions.
- Divide students into small groups.
- Ask each group to prepare consignment accounts based on the given transactions.
- Circulate among groups, offer guidance and address any questions.
#### Review & Q&A (5 minutes)
- Invite a few groups to present their accounts.
- Review the major points covered and clarify any doubts.
- Open the floor to any additional questions from students.
## Homework Assignment:
- Assign exercises from the textbook related to the consignment account for reinforcement.
- Ask students to bring real-world examples of consignment businesses for discussion in the next class.
## Assessment:
- Evaluate students based on their participation in group activities, accuracy of prepared accounts, and homework completion.
## Reflection:
- After the lesson, reflect on what worked well and what didn’t. Consider adjustments for future lessons based on student feedback and observed comprehension levels.