### Lesson Plan: Financial Accounting - Hire Purchase and Installment Account II
#### Senior Secondary 3
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**Lesson Title:** Hire Purchase and Installment Account II
**Duration:** 80 minutes
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**Objectives:**
1. Understand the accounting treatment of hire purchase transactions.
2. Differentiate between hire purchase and installment purchase systems.
3. Explain the recognition and measurement of assets and liabilities in hire purchase accounting.
4. Prepare journal entries for hire purchase transactions in the books of buyers and sellers.
5. Calculate interest and installment amounts in hire purchase agreements.
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**Materials Needed:**
1. Whiteboard and markers
2. Financial Accounting textbooks
3. Handouts with sample problems and solutions
4. Projector and slides (if available)
5. Calculator
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#### Lesson Activities:
**I. Introduction (10 minutes)**
1. **Welcome and Attendance Taking**: Warm greeting to the class and brief attendance taking.
2. **Recap of Previous Lesson**: Quick review of the basics of hire purchase and installment systems discussed previously (around 5 minutes).
- Key points: Definitions, nature, and differences between hire purchase and installment accounting.
3. **Lesson Objectives**: Outline today’s learning goals.
**II. Direct Instruction (25 minutes)**
1. **Detailed Explanation**:
- Discuss the accounting entries in a hire purchase system from both buyer’s and seller’s perspectives.
- Explain the interest calculation on unpaid installments.
- Illustrate with examples the distribution of interest and principal in hire purchase payments.
- Show how to prepare the Hire Purchase Trading account.
2. **Journal Entries**:
- Provide step-by-step guidance on preparing journal entries for hire purchase transactions.
- Examples: Recording purchase, payment of installments, interest expenses, repossession, etc.
**III. Guided Practice (15 minutes)**
1. **Worked Example**:
- Walkthrough a sample exercise on the whiteboard/projector.
- Solve a hire purchase problem: Include calculation of interest, installment breakdown, and relevant journal entries.
2. **Handouts**:
- Distribute handouts with similar problems for students to solve in pairs.
**IV. Independent Practice (15 minutes)**
1. **Problem Solving**:
- Students work individually on solving another set of problems involving hire purchase and installment systems.
- Instructor circulates the room, providing assistance as needed.
**V. Assessment & Feedback (10 minutes)**
1. **Review Solutions**:
- Go through the solutions to the independent practice problems as a class.
- Invite students to share their answers and reasoning.
- Provide constructive feedback and address any misconceptions.
**VI. Conclusion (5 minutes)**
1. **Summary**:
- Recap key points from the lesson.
- Reinforce the importance of accurate accounting in hire purchase transactions.
2. **Q&A**:
- Address any remaining questions.
- Encourage students to review their notes and practice more with the textbook exercises.
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**Homework:**
1. Assign textbook exercises related to the topic.
2. Prepare journal entries for a given hire purchase scenario including calculation of interest and installments.
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**Extension Activity (For Advanced Students):**
- Research assignment: Explore how different countries treat hire purchase transactions in their accounting standards. Write a brief report and present findings to the class.
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**Assessment:**
Students will be assessed through:
1. Participation in class discussions and activities.
2. Accuracy and completeness of journal entries and problem-solving exercises.
3. Homework assignments.
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**Reflection Notes:**
After the lesson, reflect on:
1. Student engagement and understanding of the topic.
2. Effectiveness of teaching methods and materials.
3. Areas for improvement in delivery and content.
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This concludes the lesson plan on Hire Purchase and Installment Account II for Senior Secondary 3 students.