# 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.