Lesson Notes By Weeks and Term - Senior Secondary 1

Term: 1^st Term

Week: 10

Class: Senior Secondary School 1

Age: 15 years

Duration: 40 minutes of 2 periods each

Date:       

Subject:      Financial accounting

Topic:-       Ledger

SPECIFIC OBJECTIVES: At the end of the lesson, pupils should be able to

1. Define ledger
2. State and explain the types of account
3. Explain the divisions of the ledger

INSTRUCTIONAL TECHNIQUES: Identification, explanation, questions and answers, demonstration, videos from source

INSTRUCTIONAL MATERIALS: Videos, loud speaker, textbook, pictures

INSTRUCTIONAL PROCEDURES

PERIOD 1-2

PRESENTATION	TEACHER’S ACTIVITY	STUDENT’S ACTIVITY
STEP 1 INTRODUCTION	The teacher reviews the previous lesson on exercises on sales day book and return inward journal	Students pay attention
STEP 2 EXPLANATION	She explains the meaning of account and types of account	Students pay attention and participates
STEP 3 DEMONSTRATION	She explains the division of ledger	Students pay attention and participate
STEP 4 NOTE TAKING	The teacher writes a summarized note on the board	The students copy the note in their books

 

NOTE

LEDGERS

An account is a ledger record, in a summarized form, of all transactions

that have taken place with a particular person.

An account can also be defined as a history of all transactions of similar

nature. It is usual to keep separate accounts for each class of asset,

liability, income and expenses relating to a business.

 

Classification of Accounts

All accounts fall into one or two classes: Personal Accounts and

Impersonal Accounts

1. Personal Accountsare the accounts that record all the transactions between the business and the persons (individuals, sole traders, other businesses and organisations) with whom the business has transactions.

The Subgroups under personal accounts are as follow:

Accounts for Debtors – i.e. persons who owe the business money. They

are usually the customers of the business  and their accounts have debit

balances

Accounts for Creditors –i.e. persons to whom the business owes money.

They are usually suppliers that is those who supply goods and services to

the business and their accounts have credit balances. This subgroup also

include Loan accounts

Other personal accounts including Capital account, Drawings account,

Bank account etc.

 

2. Impersonal Accounts: All other accounts other than personal accounts

will be classified as impersonal account.

Impersonal accounts are accounts that deal with assets, income and

expenditure of the business.

The subgroups under impersonal account are as follows:

• Real Accounts: These are accounts that record the tangible and physical assets or properties of the business. Example of real accounts are machinery account, furniture account, land and building account, equipment account, cash account, tools account, fittings accounts etc.
• Nominal Accounts: These are accounts that records the gains, income, expenses and losses of the business. Examples of nominal accounts are rent account, salaries account, electricity account, carriage inwards account, carriage outwards account, discounts received account, discounts allowed account etc.

 

Divisions of the Ledger

Except in very small businesses there are usually too many accounts to be

kept in a single ledger. It is usual to divide the accounts among several

ledgers for convenience.

Dividing the ledger into sections makes it more convenient to use as the

same type (similar) accounts can be kept together and the task of

maintaining the ledger can be divided between several people. The

ledger is usually divided into the following specialized areas:

1. Sales Ledger –also known as the debtors ledger. All the personal accounts of debtors (credit customers) are kept in the sales ledger.
2. Purchases Ledger –also known as the creditors ledger. All the personal accounts of creditors (credit suppliers) are kept in the purchases ledger.
3. General Ledger (or Nominal Ledger)– apart from the cash account, the bank account and the accounts of debtors and creditors all the remaining accounts are usually kept in the general ledger. This ledger will contain the impersonal accounts of assets, liabilities, expenses, incomes, sales, purchase and returns.
4. Cash Books: These contains the Bank account, Cash account and the Petty Cash account
5. Private Ledger: This ledger contains the accounts of the business owner and all other accounts deemed to be of a confidential (private) nature e.g. capital account, drawings account, loan accounts, trading account, profit and loss account, balance sheet etc.

The division of the ledger as above is essential in a business which

employs several bookkeepers; the work may be divided between them so

that they do not all need to be working on the same ledger at the same

time.

 

EVALUATION:    1. Define account

2. State and explain the types of account
3. What are the divisions of the ledger?

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively