## Lesson Plan: Partnership Accounts III
### Subject:
Financial Accounting
### Grade Level:
Senior Secondary 2
### Topic:
Partnership Accounts III
### Duration:
90 minutes
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### Objectives:
By the end of this lesson, students will be able to:
1. Understand the process of admission of a new partner.
2. Calculate adjustments for revaluation of assets and liabilities.
3. Allocate goodwill among partners.
4. Prepare the capital accounts for partners post-admission.
5. Create final accounts for a partnership after the admission of a new partner.
### Materials Needed:
- Whiteboard and markers
- Projector and screen
- Laptop
- Textbook: "Principles of Financial Accounting"
- Handouts (example problems and practice exercises)
- Calculator
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### Lesson Structure:
**1. Introduction (10 minutes)**
- Welcome and short recap of previous lessons on Partnership Accounts.
- Introduce today's topic: Admission of a New Partner in a Partnership.
- Objectives for the session briefly explained.
**2. Lecture: Admission of a New Partner (15 minutes)**
- Explain the reasons for admitting a new partner.
- Discuss the legal and financial implications.
- Describe the initial steps involved in admitting a new partner, including the creation of a partnership agreement.
**3. Adjustments for Revaluation of Assets and Liabilities (20 minutes)**
- Discuss revaluation of assets and liabilities for ensuring fair treatment to old and new partners.
- Illustrate using examples on the whiteboard how assets and liabilities are revalued.
- Solve a sample problem with the class where revaluation of assets and liabilities is required.
**4. Goodwill: Calculation and Allocation (20 minutes)**
- Define goodwill and explain its importance in partnership accounts.
- Explain methods to calculate goodwill: Average Profit Method, Super Profit Method, and Capitalization Method.
- Provide examples of how to allocate goodwill to old partners under various scenarios.
**5. Preparing Capital Accounts (15 minutes)**
- Discuss the adjustments needed in the partners’ capital accounts post-admission.
- Illustrate with an example, showing the balance brought down, revaluation adjustments, goodwill adjustments, and the new partner's capital contribution.
- Solve a practical example on the projector.
**6. Preparation of Final Accounts (10 minutes)**
- Explain the process of preparing final accounts after the admission of a new partner.
- Integrated example demonstrating the preparation of the Profit and Loss Account, Balance Sheet, and adjustments needed for the new partnership configuration.
**7. Practice Problems and Q&A (10 minutes)**
- Distribute handouts with example problems.
- Allow students to attempt problems individually or in pairs.
- Discuss solutions and clarify any questions.
**8. Summary and Assignment (10 minutes)**
- Summarize the key points covered in today’s lesson.
- Assign homework from the textbook on partnership accounts with a focus on admission of new partners.
- Remind students to review their class notes and practice additional problems.
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### Assessment:
- Participation during the lesson.
- Accuracy and completeness of practice problems.
- Homework assignment checking next class.
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### Homework:
From the textbook, Chapter 7: Partnership Accounts III, exercises 7(a), 7(b), and review questions on the revaluation of assets and goodwill allocation.
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### Reflection:
After the lesson, reflect on what went well and areas that might need improvement. Adjust future lessons based on student performance and feedback.
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### Notes for Instructor:
- Ensure to reiterate complex points for better understanding.
- Provide extra help to students who struggle with calculations.
- Use real-life examples to illustrate the concepts wherever possible.