# Financial Accounting Lesson Plan: Issues of Shares
**Grade Level:** Senior Secondary 2
**Subject:** Financial Accounting
**Topic:** Issues of Shares
**Duration:** 60 minutes
## Lesson Objectives
By the end of the lesson, students should be able to:
1. Understand the concept of issuing shares.
2. Distinguish between different types of shares (ordinary and preference).
3. Explain the process of issuing shares, including application, allotment, and call.
4. Record share issue transactions in the accounting books.
## Materials Needed
- Whiteboard and markers
- Projector and laptop
- PowerPoint presentation on the issue of shares
- Textbook/reference book on financial accounting
- Sample share certificates (optional)
- Worksheets and handouts
## Lesson Plan
### Introduction (10 minutes)
1. **Greeting and Attendance (2 minutes)**
- Greet students and take attendance.
2. **Hook (2 minutes)**
- Start with a quick discussion on companies they know and if they have heard about these companies issuing shares.
- Prompt questions: "What do you think happens when a company issues shares?", "Have you heard of IPOs (Initial Public Offerings)?"
3. **Objective Introduction (2 minutes)**
- Briefly explain the objectives of the lesson: Understanding the issuance of shares and the related accounting entries.
4. **Overview (4 minutes)**
- Provide a short overview of what will be covered in the lesson: types of shares, the process of issuing shares, and accounting for issued shares.
### Direct Instruction (20 minutes)
1. **Presentation on Types of Shares (8 minutes)**
- Use the PowerPoint presentation to explain ordinary shares and preference shares.
- Discuss the rights and privileges associated with each type of share.
2. **Explanation of the Share Issuance Process (8 minutes)**
- Elaborate on the steps involved in issuing shares: Application, Allotment, and Call.
- Illustrate each step with examples using the projector and whiteboard.
3. **Accounting Entries (4 minutes)**
- Introduce the accounting entries for different stages of share issuance with example journal entries.
- Explain the impact of share issuance on financial statements.
### Guided Practice (10 minutes)
1. **Sample Transaction (5 minutes)**
- Work through a sample transaction as a class, recording the issuance of shares from application to allotment and call stages.
- Encourage student participation and ask guiding questions to ensure understanding.
2. **Practice Problems (5 minutes)**
- Distribute practice worksheets with transactions related to the issuance of shares.
- Ask students to work in pairs to complete the entries and then review the answers as a class.
### Independent Practice (10 minutes)
1. **Worksheet on Issuing Shares (7 minutes)**
- Provide a more complex worksheet to be completed individually.
- Include different scenarios such as over-subscription and pro-rata allotment.
2. **Walk Around and Assist (3 minutes)**
- Walk around the classroom to provide assistance and clarify doubts while students are working.
### Conclusion (10 minutes)
1. **Recap (3 minutes)**
- Recap the key points discussed: types of shares, the share issuance process, and important accounting entries.
2. **Q&A (5 minutes)**
- Open the floor for any final questions or clarifications.
- Address any areas of difficulty pointed out by students.
3. **Homework Assignment (2 minutes)**
- Assign homework for additional practice, such as detailed scenarios requiring recording of share issues and their impact on the financial statements.
### Assessment
- Collect and review worksheets and homework assignments to assess understanding.
- Plan for a quiz in the next class to test the concepts learned.
### Reflection
- Reflect on the lesson's effectiveness and student engagement.
- Identify areas of improvement for future lessons.
### Additional Notes
- Emphasize real-world applications to make the concept of issuing shares more relatable.
- Consider incorporating multimedia elements or guest speakers (e.g., a stockbroker) for future lessons to enhance learning.
This lesson plan aims to provide a comprehensive understanding of the issuance of shares in financial accounting while engaging students through various interactive activities.