Lesson Notes By Weeks and Term - Senior Secondary 1

Accounts and ledger: Meaning and classification

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Term: 2nd Term

Week: 7

Class: Senior Secondary School 1

Age: 15 years

Duration: 40 minutes of 2 periods each

Date:       

Subject:      Financial accounting

Topic:-       Accounts and ledger: Meaning and classification

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

  1. Define accounts and ledgers
  2. Outline the classes of accounts and ledgers

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 petty cash book

Students pay attention

STEP 2

EXPLANATION

She explains the meaning of accounts and legers

 

Students pay attention and participates

STEP 3

DEMONSTRATION

She outlines the classes of accounts and ledgers

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

ACCOUNTS AND LEDGERS

An account can be defined as a record in a double entry system that is kept for each class of asset, liability, revenue and expense. Accounts can be classified into:

(I) personal account

(ii) Impersonal account.

(I) personal Accounts: These are accounts for the names of individuals, firm and business enterprises e.g. Chioma account, Unstoppable Nig. Ltd accounts, Debtors and Creditors account.

  1. II) Impersonal Accounts: These are accounts for properties, item of expenditures and income. It can be divided into two namely:

(a) Real accounts: These are accounts for something we can see, touch or move. They are accounts for assets e.g. land and building account, machinery account, etc.

(b) Nominal Accounts: These are for expenses incurred, income received, losses and gains e.g. rent account, discount received account, discount allowed account, insurance and interest accounts.

 

The Ledger

The ledger is the principal book of account which contains in a classified form, the permanent records of all the financial transactions of a business.

The recording into the Ledger are done in classified form using ledger accounts.

The Ledger account is divided into two sides i.e. The Debit and The Credit.

Therefore in accounting entries are described as being ‘debited’ or ‘credited’ to particular accounts. Transactions are recorded in the Ledger based on the double entry principle.

Types of Ledger

There are 3 types of Ledgers –

  • Sales Ledger
  • Purchase Ledger
  • General Ledger
  1. Sales Ledger– Sales Ledger is a ledger in which the company maintains the transaction of selling the products, services or cost of goods sold to customers. This ledger gives the idea of sales revenue and income statement.
  2. Purchase Ledger– Purchase Ledger is a ledger in which the company organizes the transaction of purchasing the services, products, or goods from other businesses. It gives the visibility of how much amount the company paid to other businesses.
  3. General Ledger– General Ledger is divided into two types – Nominal Ledger and Private Ledger. Nominal ledger gives information on expenses, income, depreciation, insurance, etc. And Private ledger gives private information like salaries, wages, capitals, etc. Private ledger is not accessible to everyone.

Some examples of General ledger templates


EVALUATION :   1. Explain the meaning of accounts and ledgers

  1. Explain the classes of accounts
  2. Explain the types of ledger

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively