Lesson Plan for Senior Secondary 2 - Financial Accounting - Issues Of Shares Ii

# Lesson Plan: Financial Accounting - Issues of Shares II ## Grade Level Senior Secondary 2 ## Duration 80 minutes ## Subject Financial Accounting ## Topic Issues of Shares II ## Objectives By the end of the lesson, students should be able to: 1. Understand the concept of issuing shares. 2. Differentiate between types of shares (Equity and Preference shares). 3. Understand the process of issuing shares at par, at a premium, and at a discount. 4. Record entries for the issue of shares in financial statements. 5. Discuss the implications of issuing shares for a business. ## Materials Needed 1. Whiteboard and markers 2. PowerPoint slides or projector 3. Printed handouts (containing key terms and concepts) 4. Calculator 5. Financial journals and ledger sheets ## Introduction (10 minutes) - **Opening Activity:** Start with a quick recap of the previous lesson, focusing on the basics of shares. - **Motivation:** Explain the importance of understanding how shares are issued and the role they play in a company's capital structure. Connect the topic to real-world scenarios (e.g., Initial Public Offerings - IPOs). ## Direct Instruction (30 minutes) - **Presentation:** Use PowerPoint slides to explain: 1. **Types of Shares:** - Equity Shares: Represent ownership in the company, voting rights, and dividends based on profit. - Preference Shares: Fixed dividend, preference over equity shares during liquidation, usually no voting rights. 2. **Methods of Issuing Shares:** - At Par: Issuing shares at their nominal value. - At a Premium: Issuing shares for more than their nominal value. - At a Discount: Issuing shares for less than their nominal value. 3. **Entries for the Issue of Shares:** - Journal entries for shares issued at par, at a premium, and at a discount. - Practical examples shown via slides or whiteboard. 4. **Implications of Issuing Shares:** Discuss how issuing shares affects the company’s financial health and ownership structure. ## Guided Practice (20 minutes) - **Worksheet Activity:** Distribute worksheets with sample questions on issuing shares. Have students work in pairs to solve problems related to: - Journal Entries for shares issued at par, at premium, and at discount - Deciphering differences in equity and preference shares in various scenarios ## Independent Practice (10 minutes) - **In-Class Assignment:** Provide a set of problems on journalizing the issue of shares from different scenarios. Students will work individually to complete the task within the allotted time. ## Closing (10 minutes) - **Review and Reflection:** Go over the worksheet and in-class assignment answers. Answer any questions students might have. - **Summarize:** Reinforce the key points covered in the lesson: - Types of shares and their characteristics. - How shares can be issued (At par, premium, and discount). - The financial entries related to each type of issue. - **Homework:** Assign a few practical problems to be completed at home to further reinforce the day’s lesson. ## Assessment 1. **Formative Assessment:** - Participation in guided practice (worksheet activity and in-class assignment). - Questions and answers during the lesson. 2. **Summative Assessment:** - Homework problems (to be graded for understanding and accuracy). - End of the unit test covering concepts of share issues. ## Additional Notes - **Differentiation:** - Provide additional support and resources for students who find the concepts challenging. - Offer advanced problems or scenarios for students who grasp the content quickly. - **Technology Integration:** - Utilize interactive financial accounting software or online platforms for the practical demonstration of issuing shares (if accessible). --- This lesson plan ensures an interactive and comprehensive approach to teaching the issuance of shares, combining theoretical understanding with practical application.