Lesson Notes By Weeks and Term - Senior Secondary 1

Balance sheet II

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Term: 3rd Term

Week: 4

Class: Senior Secondary School 1

Age: 15 years

Duration: 40 minutes of 2 periods each

Date:       

Subject:      Financial accounting

Topic:-       Balance sheet II

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

  1. Determine value of gross profit
  2. Determine value of net profit
  3. Prepare balance sheet

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 balance sheet

Students pay attention

STEP 2

EXPLANATION

She determines the value of gross profit and net profit from provided details

 

Students pay attention and participates

STEP 3

DEMONSTRATION

She further outlines how to prepare 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

ILLUSTRATION:

The following transaction Trial balance was extracted from the books of Goodman as at 31st December, 2009.

                                      DR                                          CR

 

 

#

#

Capital

 

75,000

Drawings

5,334

 

Purchases

78,660

 

Loan

 

15,000

Returns outwards

 

3,516

Sales

 

132,816

Returns inwards

252

 

Freehold premises

30,000

 

Plant and machinery   `

26,220

 

Furniture and fittings

3,888

 

Motor car

9,150

 

Wages and salaries

20,355

 

Sundry expenses

5,826

 

Opening stock

29,628

 

Rates

573

 

Debtors

38,580

 

Creditors

 

15,336

Cash in hand

828

 

Bank overdrafts

 

15,000

Lighting

1,194

 

Motor expenses

963

 

Travelling expenses

2,616

 

Carriage inwards

882

 

Provision for bad deb

 

 

(1st Jan.)

 

1,440

Discounts

1,000

726

Bad debt

1,152

 

Insurance

337

 

 

Land and building

1,396

 

 

258,834

258,834

 

Additional information:

(a) Stock on hand as at 31st December,2009 was #37,458.

(b) Make provision for bad debt up to #1,800.

(c) Depreciation were to be charged as follows: plant and machinery 10%, motor car 20%, furniture and fittings 5%.

(d)Insurance prepaid #114.

(e)Salaries and wages accrued #810.

(f)Interest on loan 6% due had not been entered in the books.

(g)  After the trial balance had been prepared, it was found that an amount of #150representing motor expenses had been debited to motor car   account.  

(h) It was decided to write off additional #300 as bad debts.

You are required to prepare:

  1. Trading, Profit and Loss account for the year ended 31st December,2009.
  2. Balance sheet as at date.

SOLUTION

 

EVALUATION :   1. Mention 6 items of assets in a balance sheet.

  1. Mention 6 items in the liability side of a balance sheet.
  2. OKORO is a sole trader. The business trial balance as at 31st December, 2013 is given below 

 

                 

Additional information:

  1. The stock in hand on 31st December, 2013 was #8,636.
  2. Insurance of #260 was outstanding.
  3. An employee took salary advance of #220.
  4. The provision for bad debts should be increased to #51
  1. Depreciation:

(i) Motor vehicle #900.

(ii) Furniture and fittings 10% per annum.

 

You are required to prepare:

 

(a)    Trading, Profit and Loss account for the year ended 31st December,2013

(b)The balance sheet as at that date.

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively