## Lesson Plan: Depreciation Accounting
### For Senior Secondary 1 Students
**Subject**: Financial Accounting
**Topic**: Depreciation Accounting
**Grade Level**: Senior Secondary 1
**Duration**: 70 minutes
---
### Objectives
By the end of the lesson, students will be able to:
1. Understand the concept of depreciation and its importance.
2. Identify different methods of calculating depreciation.
3. Apply these methods to different assets.
4. Record depreciation in accounting records.
---
### Materials
- Whiteboard and markers
- Projector and computer (for PowerPoint)
- Handouts of depreciation exercises
- Calculators
- Chart paper and markers for group activity
---
### Lesson Outline
**Introduction (10 minutes)**
1. Greetings and attendance.
2. Brief discussion: Ask students what they know about depreciation. Use guiding questions:
- "What happens to the value of an asset like a car over time?"
- "Why do we need to account for this decrease in value?"
3. Present the day's objectives on the board.
**Explanation (20 minutes)**
1. Definition and concept of depreciation:
- Explain depreciation as the allocation of the cost of a tangible asset over its useful life.
- Discuss why depreciation is important in accounting (matching expenses with revenues, true value representation, etc.).
2. Methods of calculating depreciation:
- Straight-Line Method
- Declining Balance Method
- Units of Production Method
3. Illustrate with simple examples:
- Provide a step-by-step calculation for the Straight-Line Method using a hypothetical asset.
- Compare the cost allocation over time between the Straight-Line and Declining Balance Methods.
**Demonstration (15 minutes)**
1. Use a PowerPoint presentation to visually present examples of depreciation calculations.
2. Highlight key formulas and concepts on each slide.
3. Encourage students to ask questions during the presentation.
**Practice (15 minutes)**
1. Distribute handouts with exercises involving different methods of depreciation.
2. Students work individually or in pairs to complete the exercises.
3. Walk around the classroom to provide assistance and answer questions.
**Group Activity (10 minutes)**
1. Arrange students into small groups and give each group a piece of chart paper and markers.
2. Assign each group a different asset type (e.g., vehicle, machinery, office equipment).
3. Each group creates a brief presentation on how they would depreciate the assigned asset using various methods. Include key information like asset cost, useful life, and method chosen.
4. Groups present their findings to the class.
**Summary and Q&A (5 minutes)**
1. Recap the key points covered in the lesson:
- The concept and importance of depreciation.
- Methods of calculating depreciation.
- Recording depreciation in accounting.
2. Open the floor for any final questions from students.
3. Hand out additional reading material or homework exercises for further practice (if applicable).
**Closing (2 minutes)**
1. Thank students for their participation and effort.
2. Mention next class's topic and preparations if necessary.
3. Dismiss the class.
---
### Homework/Extension Activity
1. Assign a practical homework task where students have to calculate depreciation for a set of different assets using various methods.
2. Encourage students to read the next chapter in their textbooks on advanced depreciation techniques.
**Assessment**
1. Collect and review the handouts to assess students' understanding and correct any mistakes.
2. Observe participation during group activities and presentations.
3. Use a short quiz in the next class to gauge retention and understanding.
---
### Notes for the Teacher
- Tailor the complexity of examples to match the students' current knowledge and comfort levels.
- Be prepared with additional examples in case students grasp the concept quickly and need more practice.
- Encourage interaction and critical thinking during the Q&A session to deepen understanding.