Lesson Notes By Weeks and Term - Senior Secondary 1

Depreciation account III

Term: 3rd Term

Week: 9

Class: Senior Secondary School 1

Age: 15 years

Duration: 40 minutes of 2 periods each

Date:

Subject:      Financial accounting

Topic:-       Depreciation account III

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

1. Define reducing balance method
2. State the formula for reducing balance method
3. Calculate the value of depreciation

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 straight line method Students pay attention STEP 2 EXPLANATION She defines reducing balance method and states its formula Students pay attention and participates STEP 3 DEMONSTRATION She shows the learners how to calculate the value of depreciation 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

DEPRECIATION ACCOUNT
Reducing balance method is also known as diminishing balance method. Under this method, depreciation is calculated per annum at a fixed percentage rate on the net book value.

FORMULA FOR REDUCING BALANCE METHOD

EXAMPLES

On 1st January 1997, James Watt Limited acquired office furniture at a cost N32,000. The furniture is expected to have a useful life of 4 years. The office furniture is expected to have scrap value of N4200. It is the policy of the company to depreciate office furniture on reducing balance method.

Required: Calculate

(a) the depreciation rate;

(b) annual depreciation charge.

SOLUTION

EVALUATION :   1. What is reducing balance method of   depreciation?

1. State the formula for reducing balance method.
2. How do you ascertain net book value?
3. A vehicle costs N12,000 with a life span of 4 years and the residual value after the period was N400.

Required: calculate the rate of depreciation and yearly depreciation charge using reducing balance method

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively