Lesson Notes By Weeks and Term - Senior Secondary 1

Balance sheet

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Term: 3rd Term

Week: 3

Class: Senior Secondary School 1

Age: 15 years

Duration: 40 minutes of 2 periods each

Date:       

Subject:      Financial accounting

Topic:-       Balance sheet

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

  1. Define balance sheet.
  2. State the features of a balance sheet
  3. Define assets
  4. Define liabilities

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 profit and loss account

Students pay attention

STEP 2

EXPLANATION

She defines assets, liabilities and balance sheet

 

Students pay attention and participates

STEP 3

DEMONSTRATION

She further outlines the features of a balance sheet

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

BALANCE SHEET

Balance sheet can be defined as a statement of financial position of a business that shows the lists of assets, liabilities, and owner’s equity at a particular time. Balance sheet is also known as statement of financial position.

 

FEATURES OF BALANCE SHEET

  1. A balance sheet is a statement and not an account.
  2. Balance sheet does not have debit or credit side.
  3. It has two sides; left hand side known as asset side and right hand side known as liability side.
  4. It shows the financial position of a business.

Asset can be defined as the properties own by a business.

Examples includes; land, building, motor vehicle, office equipment, plant and machinery, stock/inventory, cash in hand, cash at bank, debtors, etc.

TYPES OF ASSETS

  1. Fixed Assets/ Non-current Assets. These are assets that last for a long period of time and their benefits to the business exceeds one year. Examples; Land, Building, Furniture, motor van, office Equipment, Plant, Machinery, etc.
  2. Current Assets: these are assets that will be used-up within a year. Examples; inventory, debtors, prepaid expenses, accrued income, cash in hand, cash at bank, etc.
  3. Intangible Assets: they are assets of value but cannot be seen and touched. Examples; goodwill, trade mark, copy right, licenses, patent right, etc.
  4. Wasting Assets: these are assets in the form of natural resources. Examples; coal, zinc, timber, deposits of oil, etc.
  5. Fictitious Assets: these are assets that cannot be converted to cash. Example; preliminary expenses, etc.

 

LIABILITIES

Liabilities can be defined as the indebtedness of a business to individual(s), businesses or firm(s). it is a claim on the assets of a business/ firm.

 

TYPES OF LIABILITIES

  1. Non-current liabilities/ Long-term liabilities: these are debts or obligations that are due after a year or more. Examples; debentures, long-term loans capital leases, bonds payable, deferred tax liabilities, etc.
  2. Current liabilities: these are obligations or debts that need to be paid within a year. Examples; creditors/ account payable, interest payable, short-term loans, bank overdraft, accrued expenses, etc.

 

EVALUATION : 1. Define assets and liabilities

  1. Mention and explain the types of assets and liabilities
  2. Define balance sheet
  3. Highlight the features of a balance sheet

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively