## Lesson Plan: Financial Accounting - Partnership Accounts IV
### Grade: Senior Secondary 2
### Subject: Financial Accounting
### Duration: 60 minutes
### Topic: Partnership Accounts IV – Admission of a New Partner
#### Objectives:
By the end of the lesson, students will be able to:
1. Understand the procedures for admitting a new partner into an existing partnership.
2. Calculate the new profit-sharing ratio.
3. Understand and calculate the revaluation of assets and liabilities upon the admission of a new partner.
4. Explain the treatment of goodwill at the time of admission.
#### Materials Needed:
- Whiteboard and markers
- Projector and computer (for PowerPoint presentation)
- Handouts with practice problems
- Textbook or financial accounting reference material
- Calculator
#### Lesson Outline:
1. **Introduction (10 minutes)**
- **Greeting and Warm-Up:**
- Greet the students and quickly review the key concepts from the previous lesson, "Partnership Accounts III – Dissolution of a Partnership."
- **Objective Overview:**
- Introduce the topic of the day: Admission of a New Partner. Outline the learning objectives for the lesson.
2. **Direct Instruction (15 minutes)**
- **Admission Overview:**
- Explain the circumstances under which new partners might be admitted to a partnership (e.g., to bring in additional capital, expertise, etc.).
- **New Profit-Sharing Ratio:**
- Describe how the profit-sharing ratio is determined when a new partner is admitted.
- Illustrate this with an example. If Partner A and Partner B share profits in a 3:2 ratio, how will the ratio change if a new partner (Partner C) is admitted into the partnership?
- **Revaluation of Assets and Liabilities:**
- Discuss the need for revaluating assets and liabilities when a new partner is admitted. Explain the revaluation process and its effect on the capital accounts of the existing partners.
- **Treatment of Goodwill:**
- Define goodwill in the context of partnership accounts.
- Explain the different methods to treat goodwill when a new partner is admitted: full goodwill method, partial goodwill method, and no goodwill method.
3. **Guided Practice (15 minutes)**
- **Example Problem:**
- Work through an example problem involving the admission of a new partner, including the revaluation of assets/liabilities and the adjustment of the capital accounts.
- **Interactive Discussion:**
- Engage students with questions during the example problem to ensure their understanding.
4. **Independent Practice (10 minutes)**
- **Exercise Handout:**
- Provide students with a handout containing practice problems.
- Ask students to work individually or in pairs to solve problems related to the admission of a new partner.
- Monitor progress, offering help where needed.
5. **Assessment (5 minutes)**
- **Quick Quiz:**
- Administer a short quiz to assess students' understanding of the concepts taught in the lesson.
- Questions could include calculating the new profit-sharing ratio or determining the value of goodwill.
6. **Conclusion (5 minutes)**
- **Recap:**
- Summarize the key points of the lesson: the steps involved in admitting a new partner, revaluation of assets/liabilities, and the treatment of goodwill.
- **Questions & Clarifications:**
- Open the floor for any questions or clarifications.
- **Homework:**
- Assign practice problems from the textbook for homework, focusing on the admission of a new partner.
#### References and Resources:
- Financial Accounting textbook for Senior Secondary 2
- Additional reading materials and reference articles on partnership accounts
#### Follow-Up:
- Review homework in the next class to address any difficulties encountered by students.
- Plan a role-play or case study activity for the next lesson to deepen understanding.
---
This lesson plan is designed to provide a comprehensive understanding of the admission of a new partner in a partnership and reinforces learning through various interactive and assessment activities.