Term: 3^rd Term

Week: 7

Class: Senior Secondary School 2

Age: 16 years

Duration: 40 minutes of 2 periods each

Date:

Subject: Financial accounting

Topic:- Issues of shares II

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

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 issues of shares	Students pay attention
STEP 2 EXPLANATION	She shows the learners how to prepare cash book and application and allotment account	Students pay attention and participates
STEP 3 DEMONSTRATION	She shows the learners how to prepare share premium account and share capital account	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

ISSUING OF SHARES

ILLUSTRATION

ABC Nig. Ltd. Issue 200,000 ordinary shares of #1.00 each at#1.20 per share payable as follows:

Required: Show the ledger accounts to record the above transactions.

SOLUTION

Workings: 25+40+35+20=1.20.

Rate of premium=1.20-1.00=20korN0.20

Application: 0.25×200,000=N50,000

Allotment: 0.40×200,000=N80,000 (including premium)

Share premium:0.20×200,000=N40,000

First call: 0.35×200,000=N70,000

Second call: 0.20×200,000=N40,000

EVALUATION: 1. Mention three items in cash book.

Prosperity PLC issued 600,000 ordinary shares of N1 each of N1.20 payable as follows;
- 35k on application
- 55k on allotment (including premium)
- 20k on first call
- 10k on final call

All the shares were fully subscribed and paid for. You are required to prepare:

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively

Lesson Notes By Weeks and Term - Senior Secondary 2