# Lesson Notes By Weeks and Term - Senior Secondary 1

Term: 3rd Term

Week: 10

Class: Senior Secondary School 1

Age: 15 years

Duration: 40 minutes of 2 periods each

Date:

Subject:      Financial accounting

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

2. Define provision for doubtful debt
3. Calculate value of bad debt
4. Calculate value of provision for doubtful debt

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 reducing balance method Students pay attention STEP 2 EXPLANATION She defines bad debt and provision for doubtful debt Students pay attention and participates STEP 3 DEMONSTRATION She shows the learners how to calculate the value of bad debt and provision for doubtful debt 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

Bad debt can be defined as debt that cannot be recovered. It is also known as irrecoverable debt.

PROVISION FOR BAD AND DOUBTFUL DEBTS

This refers to an estimated amount set aside for doubtful debts which cannot be accurately calculated.

Doubtful debts are debts that are likely to be collected.

EXAMPLES

The total debtors account of a trading concern is N13,000. Out of this, 2 percent is irrecoverable; 5 percent of the balance is unlikely to be collected.

Required:

(i) calculate the value of bad debt

(ii) calculate the value of provision for doubtful debt.

SOLUTION

2.

Required: (i) find the total amount of bad debts to be charged as expense in the profit and loss account.

(ii) find the net figure for debtors.

SOLUTION

EVALUATION :   1. What is bad debt?

1. What is provision for doubtful debt?
2. How do you determine value of provision for doubtful debt?
3. How do you determine net debtors?
4. Debtors value as at 1st January 2000 was N 40,000.

Bad debts written off during the year was N 5,000.

Provision for bad debt was 5%.

Required: Find the amount debited to profit and loss account as provision for the year.

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively