**Lesson Plan: Financial Accounting for Senior Secondary 2**
**Topic: Final Accounts - Provision for Doubtful Debts**
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**Grade Level:** Senior Secondary 2
**Subject:** Financial Accounting
**Duration:** 1 Hour
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**Learning Objectives:**
1. Understand the concept of doubtful debts and the need for a provision for doubtful debts.
2. Learn how to create a provision for doubtful debts in final accounts.
3. Be able to adjust financial statements to reflect these provisions accurately.
4. Develop analytical skills to assess the impact of provisions for doubtful debts on overall financial health.
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**Materials Needed:**
- Whiteboard and markers
- PowerPoint presentation or printed handouts
- Sample financial statements
- Calculator
- Exercise book for each student
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**Lesson Structure:**
1. **Introduction (10 minutes)**
- Greet the students and take attendance.
- Start with a brief overview of what final accounts are (Trading Account, Profit & Loss Account, and Balance Sheet).
- Introduce the concept of doubtful debts and outline the importance of accounting for potential non-payment by customers.
2. **Concept Explanation (15 minutes)**
- Define "doubtful debts" and explain why some debts are categorized as doubtful.
- Describe the purpose and benefits of creating a provision for doubtful debts.
- Explain the impact doubtful debts can have on a business’s financial health.
- Illustrate through examples how to calculate the provision based on a percentage of the accounts receivable.
3. **Practical Application (20 minutes)**
- Demonstrate step-by-step how to create a provision for doubtful debts.
- Start with a given percentage of total receivables.
- Show how to record the provision in the financial books.
- Explain how to adjust the Profit & Loss Account and Balance Sheet accordingly.
- Provide students with sample financial statements.
- Guide students through the process of calculating and recording provision for doubtful debts on their own.
4. **Activity (10 minutes)**
- Distribute worksheets containing different scenarios and balances for accounts receivable.
- Ask students to calculate the provision for doubtful debts and adjust the financial statements.
- Encourage peer discussion and cooperation to solve the problems.
- Move around the classroom to assist students as needed.
5. **Review and Q&A (5 minutes)**
- Summarize the main points covered in the lesson.
- Invite questions from students to clarify any doubts.
- Provide additional examples if necessary to reinforce learning.
6. **Homework Assignment**
- Assign a set of problems where students have to calculate provisions for doubtful debts for given financial statements.
- Instruct students to prepare a brief report on the implications of doubtful debts for a business.
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**Assessment:**
- Evaluate students' worksheet activities to gauge understanding.
- Review homework to assess the ability to apply the concepts learned in class.
- Participation and engagement during the lesson.
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**Conclusion:**
- Reiterate the importance of accurately accounting for doubtful debts.
- Highlight how such provisions help in presenting a more realistic view of the financial position of a business.
- Encourage students to ask questions and conduct further reading on related topics to deepen their understanding.
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**Additional Notes:**
- Ensure all students are actively participating and clarify any confusion promptly.
- Tailor examples and worksheets according to the proficiency level of the class.
- Differentiate instruction if needed to assist students with varying levels of understanding.