Teacher explains the meaning of partnership account, guides the students to identify and explain capital accounts and terminologies involved, explains the differences in capital account, prepares the capital account, guides the students to identify current account, identify the different terminologies used in partners’ current account, prepares capital and current account, and discusses the appropriate sharing ratio of partners.
Students pay attention, take part in the preparation of capital account and current account.
Teacher explains the meaning of partners trading account, profit and loss account.
Explain the terminologies, displays a format showing trading, profit and loss appropriation account.
Students pay attention and take part in the preparation of trading, profit and loss appropriation account.
Resources; charts, flashcards of the key words, format.
3
PARTNERSHIP ACCOUNT
-Partnership current account;- format of profit and loss appreciation account.
-Balance sheet of partners.
-Layout and preparation.
Teacher guides the students to identify current account, different terminologies used in partners’ current account, prepares current account, discusses the appropriate sharing ratio of partners, displays the format and leads students to prepare current account, profit and loss appropriation account.
Students pay attention, participates in the preparation of current account, profit and loss appropriation account.
Resources; charts, flashcards of the key words, format.
4
PARTNERSHIP ACCOUNT
Admission of new partners.
Meaning
Reasons for admission of new partners.
Goodwill;
Meaning
Valuation of goodwill.
Teacher discusses admission of new partners, gives reason for admission of new partners, explains goodwill and discusses valuation of goodwill.
Students pay attention, take part in activities involving new partners admission, lists reason for admitting new partners, explain goodwill, prepares goodwill account.
Resources; charts, flashcards of the key words, format.
5
PARTNERSHIP ACCOUNT
Revaluation of assets;
Meaning and journal entries
Preparation of revaluation account.
Preparation of new balance sheet.
Teacher explains the meaning of revaluation of assets, explain how to make journal entries. Displays format for preparation of revaluation account, and a new balance sheet preparation.
Students pay attention, as the teacher prepares journal entries, participates in the preparation of revaluation account and a new balance sheet.
Resources; charts, flashcards of the key words, format.
6
PARTNERSHIP ACCOUNT
Dissolution of partnership;-
meaning/definition
Reasons for dissolution of partnership
Dissolution procedures.
Preparation of realization account.
Teacher explains the meaning of dissolution of partnership account, guides the students to identify reasons for dissolution of partnership, lists the procedures in dissolving a partnership business, guides the students to identify reasons for dissolving partnership business. Lists and discusses procedures for dissolving partnership business, prepares realization account.
Students pay attention, take part in giving reasons for dissolution of partnership business, lists reasons for dissolution of a partnership business, mention procedures for dissolving partnership business, preparation of realization account.
Resources; charts, flashcards of the key words.
7
INCOMPLETE RECORDS (SINGLE ENTRY)
Meaning/definition
Features of single entry
Disadvantages/limitations.
Computation of profit from two balance sheets showing opening and closing capital.
Teacher explains single entry, I, computes profit from two balance sheet showing opening and closing statement of affairs.
Students listen to the teacher and take part in the preparation of
Resources; chart, format.
8
INCOMPLETE RECORDS
Preparation of statement of affairs; calculation of profit
Teacher explains, prepares statement of affairs to determine capital and statement of profit.
Students listen to the teacher and take part in the preparation of the statement of affairs to determine capital and profit.
Resources; chart.
9
INCOMPLETE RECORDS
Conversion of single entry:
Prepare statement of affairs.
Prepare analysis of a cashbook
Reconstruct necessary accounts
Preparation of trading, profit and loss account.
Preparation of balance sheet.
Teacher prepares statement of affairs, analysis of a cash book and reconstructs necessary accounts. Prepares trading, profit and loss account and a balance sheet.
Students listen to the teacher and take part in the preparation of the statement of affair, trading, profit and loss account and a balance sheet.
Resources; chart.
10
INTERPRETATION OF ACCOUNTS USING SIMPLE ACCOUNTING RATIOS EQUITY.
Capital employed
Working capital.
Ratio of working capital to capital employed.
Ratio of equity to capital employed.
Teacher explains the different accounting ratio, calculate and show examples, computation and illustration with examples.
11
FURTHER TREATMENT OF INTERPRETATION OF ACCOUNTS
Teacher defines capital employed working capital.
Students list out the different ways by which we can interpret account, explain the following; capital employed, working capital, ratio of working capital to capital employed, ratio of equity to capital employed.
Resources; charts, flash cards.
12
Revisions
Revisions
13
Examinations
Examinations
FINANCIAL ACCOUNTING
SS 2 THIRD TERM
WEEK
TOPIC/CONTENT
ACTIVITIES
1
COMPANY ACCOUNT; FORMATION OF A COMPANY
Companies and allied matters act 1990 relating to formation of companies.
Terminologies;
Memorandum of associations
Articles of association
Prospectus etc.
Types of companies; private and public companies;
Private company;
Definition
Features.
Public company;
Definition
Features
Distinction between public and private companies.
Teacher states the requirements of companies and allied matters act of 1990, explain relevant terminologies to the formation of company, list the differences between private and public companies, give specific examples of public and private companies within the locality.
Students highlight the requirements for companies and allied matters acts of 1990, participate in the discussion on the terminologies relevant to the company.
State the features of public and private companies.
Resources; chart, daily official list of companies from Corporate Affairs Commission.
2
QUOTED AND UNQUOTED COMPANIES
Quoted companies
Definition
Features
Examples.
Unquoted companies;
Definition
Features
Distinguish between quoted and unquoted companies.
Teacher explain quoted and unquoted companies, leads the students to state the differences between quoted and unquoted companies, guides students to name the examples of quoted and unquoted companies.
Students list the differences between quoted and unquoted companies, prepare a list of quoted and unquoted companies in your locality.
Resources; charts, daily official list from NSC, books.
3
COMPANY ACCOUNT (CONT)
Financial system;
Definition
Components of financial system e.g. banks, insurance, NSE, SEC, CSCS etc
Money market;
Definition
Key functions
Market institutions.
Features of money market (short term).
Discuss the key functions of each components
Describe the features of each component.
Teacher guides the students to explain the term financial system, ask students to name the components of financial system, illustrates functions and features of each component using charts and reports.
Students write short notes on financial system, money market, capital market, insurance.
Resources; charts, posters, pictures, short market report.
4
METHODS OF RAISING FUNDS FROM THE CAPITAL MARKET;
Methods; explain offer for sales, offer for subscription, right issues, private placement.
Teacher defines capital market, primary and secondary markets, segments of secondary markets, key functions, market institutions, features of capital market (medium or long term), insurance market; definition, key functions market institutions, features of insurance market.
Students define offer for sale, offer for subscription, list out the requirements for accessing the capital market, discuss the different benefits of capital markets.
Resources; publication of SEC, NSE, video of activities on the floor of stock exchange, dividend warrant.
5
BENEFITS OF CAPITAL MARKETS;
Benefits to individual investors
Benefits to government
Benefits to the economy
Benefits to individual companies.
Teacher defines capital market, primary and secondary markets, segments of secondary markets, key functions, market institutions, features of capital market (medium or long term), insurance market; definition, key functions market institutions, features of insurance market.
Students define offer for sale, offer for subscription, list out the requirements for accessing the capital market, discus the different benefits of capital markets.
Resources; publication of SEC, NSE, video of activities or the floor of stock exchange, dividend warrant.
6
ISSUES OF SHARES
Terminologies
Shares accounts preparation
Application account.
Allotment account
Calls accounts.
Teacher discusses the differences between classes of shares, highlights the differences between authorized issued shares, discuss the differences between issue of shares at par and at a premium, prepare account to issue shares, illustrate by showing share certificate.
Students participate in the discussion of issues of shares and share account, draw a share certificate and study, take part in the preparation of account related to issue of shares.
Teacher discusses the differences between classes of shares, highlights the differences between authorized issued shares, discuss the differences between issue of shares at par and at a premium, prepare account to issue shares, illustrate by showing share certificate.
Students participate in the discussion of issues of shares and share account, draw a share certificate and study, take part in the preparation of account related to issue of shares.
Teacher explains the loan capital terminologies, illustrate the differences between shares and debenture account.
Students listen and take notes, write short notes on the terminologies, excursion/fieldtrip to capital market.
Resources; publication, charts.
9
COMPANY ACCOUNT (FINAL ACCOUNT)
Profit and loss appropriation account;-
Amount written off.
Goodwill
Preliminary expenses
Amount transferred to reserve;
Bonuses
Dividends.
Teacher prepares trading, profit and loss account, appropriation account, shows goodwill written off, preliminary expenses, amount transferred to reserve, bonuses and dividends. Students listen to the teacher, participate in the preparation of trading, profit & loss appropriation account showing goodwill written off, preliminary expenses, transfers etc.
The company balance sheet; layout/format, preparation, analyzing/interpretation.
Teacher prepares balance sheet using format, analyze the balance sheet, ratio analysis method.
Students listen to the teacher, participate in the preparation of balance sheet, analyze/interpret the balance sheet viz current ratio, rate of stock turnover, gross profit to turnover etc.
Teacher defines capital market and guides students to appreciate the need for regulating capital market, types of capital market, importance and tools of regulation, and to appreciate the required attributes to capital market operators.
Students explain the meaning of regulation, outline the major types of regulation in the capital market, and the required attributes of capital market operators.
Resources; publication of; SEC, MSE, CSCS, ASCE. Feature articles from newspapers, video clips, internet.
