FINANCIAL STATEMENTS

The Balance Sheet.

By the end of the lesson, the learner should be able to:
Prepare a balance sheet after making adjustments on capital for specific items.

Exposition of adjustments made on capital for net profit, drawings and additional capital.
Worked examples and Exercises.

charts

New Inventor K.L.B. BK IV. Pg. 67-68

FINANCIAL STATEMENTS

The Balance Sheet from a trial balance.

By the end of the lesson, the learner should be able to:
Prepare a balance sheet from a trial balance.

Q/A to review a trial balance;
Worked examples.

text book

New Inventor K.L.B. BK IV. Pg. 67-68

FINANCIAL STATEMENTS

Types of Capital.
Types of capital in a balance sheet.

By the end of the lesson, the learner should be able to:
Outline types of capital.

Probing questions;
Teacher?s explanations.

text book

New Inventor K.L.B. BK IV. Pg. 68

FINANCIAL STATEMENTS

Basic financial ratios: - Mark-up.
- Margin.

By the end of the lesson, the learner should be able to:


Define the term mark-up.
Explain why mark up is important in a business.
Determine business mark up.

Q/A: definition of a ratio.
Teacher exposes and explains the new concepts then leads in an example.

chart,text book
text book

New Inventor K.L.B. BK IV. Pg. 70-71

FINANCIAL STATEMENTS

Using mark-up or margin to prepare a trading account.

By the end of the lesson, the learner should be able to:
Work out the mark-up given the margin and vice-versa.

Guided discovery on the relationship.
Illustrative examples.

text book

New Inventor K.L.B. BK IV. Pg.72-74

FINANCIAL STATEMENTS

Current ratio or Working capital ratio.
Rate of stock turnover.

By the end of the lesson, the learner should be able to:
Define the term current ratio or working capital ratio.
Explain importance of current ratio.
Calculate current ratio given various balances.

Exposition & Worked examples;
Discussion.

text book,chart
chart

New Inventor K.L.B. BK IV. Pg. 75-76

FINANCIAL STATEMENTS

Stock turn-over and trading account.

By the end of the lesson, the learner should be able to:
Prepare the trading account given the rate of stock turn-over.

Illustrative examples & supervised practice.

text book

New Inventor K.L.B. BK IV. Pg. 78

FINANCIAL STATEMENTS

Return on Capital.

By the end of the lesson, the learner should be able to:
Define the term return on capital.
Calculate return on capital.
Explain implications of return on capital on a business.

Brief discussion;
simple problem solving;
Assignment.

chart, text book

New Inventor K.L.B. BK IV. Pg. 79

FINANCIAL STATEMENTS

Acid test or quick ratio.

By the end of the lesson, the learner should be able to:
Determine the quick ratio given current assets, stock and current liabilities.

Exposition of new concepts;
Simple calculations.

Business Magazines.

New Inventor K.L.B. BK IV. Pg. 79-80

MONEY & BANKING

Introduction. Barter trade.
Money system Characteristics of money.

By the end of the lesson, the learner should be able to:


Explain the concepts of money and banking.
Describe merits and demerits of barter trade.

Brain storming;
Brief discussion.

text book

New Inventor K.L.B. BK IV. Pg 91-94

MONEY & BANKING

Functions of money.
Demand for money (liquidity preference)

By the end of the lesson, the learner should be able to:
Explain major functions of money.

Probing questions;
Discussion.

chart
text book

New Inventor K.L.B. BK IV. Pg. 96-97

MONEY & BANKING

Supply of money. Banking System.
Development of Banking. Commercial Banks.

By the end of the lesson, the learner should be able to:
Define the term supply of money.
Identify various monetary items that are in circulation in an economy.
Identify elements of banking system in Kenya.

Q/A: review the term supply.
Expository approach
Analyse the hierarchy of banks in Kenya.
Give examples of banks in each category.

chart,text book
text book

New Inventor K.L.B. BK IV. Pg. 99-100

MONEY & BANKING

Services offered by commercial banks.
Non-banking financial institutions.

By the end of the lesson, the learner should be able to:
Describe other services offered by commercial banks.

Discussion on lending money, safekeeping of valuable items, money transfer facilities, e.g. standing order, cheques, savings and current accounts, time deposits.

text book

New Inventor K.L.B. BK IV. Pg. 103-9

MONEY & BANKING

Functions of the Central bank.
Trends in banking.

By the end of the lesson, the learner should be able to:
Identify objectives and functions of the Central Bank.

Exposition of new ideas;
Guided discussion.

text book
chart,text book

New Inventor K.L.B. BK IV. Pg 113-8

SOURCE DOCUMENTS & BOOKS OF ORIGINAL ENTRY

Source documents Introduction. Cash receipt.
Invoice.

By the end of the lesson, the learner should be able to:




Define a source document.
Give examples of source documents.

Describe features of a cash / cheque receipt.

Exposition of new terms;

Brain storming;

Brief discussion.

Cash receipts
Invoices.

New
Inventor
K.L.B.
BK IV.
Pg 1-2

SOURCE DOCUMENTS & BOOKS OF ORIGINAL ENTRY

Debit note and credit note.
Payment voucher & petty cash voucher.

By the end of the lesson, the learner should be able to:
Define a debit note and a credit note.
Explain purposes of credit notes and credit note.

Examine a debit note and a credit note.
Brief discussion on features of the notes.

Debit note and credit note.
Payment voucher & petty cash voucher.

New Inventor K.L.B. BK IV. Pg. 5-6

SOURCE DOCUMENTS & BOOKS OF ORIGINAL ENTRY

Books of original entry. Sales journal.
Posting from sales journal to sales ledger and general ledger.

By the end of the lesson, the learner should be able to:
Highlight features of a sales journal.
Prepare a sales journal given credit sales.

Brief discussion;
Illustrated example.

Sales journal.
Sales ledger.

New Inventor K.L.B. BK IV. Pg. 8-10

SOURCE DOCUMENTS & BOOKS OF ORIGINAL ENTRY

Sales returns journal.
Posting entries to the general ledger and sales ledger.

By the end of the lesson, the learner should be able to:
Explain purpose of a sales returns journal.
Prepare a sales return journal.

Examine a sales return journal.
Discussion on its features Illustrated example: preparing a sales journal given a number of transactions.

Sales returns journal sample page.
Sales return journal sample page.

New Inventor K.L.B. BK IV. Pg. 13-14

SOURCE DOCUMENTS & BOOKS OF ORIGINAL ENTRY

Purchases journal.
Purchases return journal.

By the end of the lesson, the learner should be able to:
Prepare a purchases journal given some transactions.

Exposition of new concepts;
Illustrated example on preparing a purchases journal given a number of transactions.
Supervised practice.

Purchases journal sample page.
Purchases return journal sample page.

New Inventor K.L.B. BK IV. Pg. 15-17

SOURCE DOCUMENTS & BOOKS OF ORIGINAL ENTRY

Cash receipt journal.
Cash payment journal.

By the end of the lesson, the learner should be able to:
Identify features of a cash receipt journal.
Post entries from the journal to the general ledger, cash book and debtors ledger.

Illustrated example on preparing a purchases journal given a number of transactions.
Supervised practice.

Cash receipt journal.
Illustrated cash payment ledger.

New Inventor K.L.B. BK IV. Pg. 20-21

SOURCE DOCUMENTS & BOOKS OF ORIGINAL ENTRY

The petty cash book with imprest system.
Analysis cash book.

By the end of the lesson, the learner should be able to:
Make entries in a petty cash book.
Post entries from the book to ledger accounts.

Illustrated examples;
Group assignments.

Illustrated petty cash book.
Cash analysis sample page.

New Inventor K.L.B. BK IV. Pg.26-30

SOURCE DOCUMENTS & BOOKS OF ORIGINAL ENTRY

General journal.
Transactions passed through the general journal.

By the end of the lesson, the learner should be able to:
Record transactions in a general journal.

Worked examples;
Supervised practice.

General journal sample page.
text book

New Inventor K.L.B. BK IV. 36-37

SOURCE DOCUMENTS & BOOKS OF ORIGINAL ENTRY
PUBLIC FINANCE

Importance of journals.
Purpose of public finance. Sources of public finance.

By the end of the lesson, the learner should be able to:
State reasons for maintaining journals.

Probing questions;
Brief discussion;
Topic review & summary;
Review of written exercises.

text book
Business Magazines.

New Inventor K.L.B. BK IV. Pg. 41-53

PUBLIC FINANCE

External borrowing.
Government expenditure. Principles of public expenditure.

By the end of the lesson, the learner should be able to:
Differentiate between reproductive debt and dead weight debt.
Identify types of govt?s expenditure.

Exposition;
Discussion.

text book
Newspaper cuttings & relevant magazines.

New Inventor K.L.B. BK IV. Pg. 127-8

PUBLIC FINANCE

Taxation.
Principles of taxation.

By the end of the lesson, the learner should be able to:
Define the term taxation.
Identify methods that the give reasons for taxation.

Exposition;
Explanations.

Newspaper cuttings & relevant magazines.

New Inventor K.L.B. BK IV. Pg.131

PUBLIC FINANCE

Impact and incidence of tax. Classification of taxes on basis of structure.
Classification of taxes on basis of impact on the tax payer. - Direct tax.

By the end of the lesson, the learner should be able to:
Differentiate between impact and incidence of tax.

Classify taxes according to structure.
State merits and demerits of taxing people according to structure.

Exposition of new ideas;
Give examples and explanations.

text book

Pg. 133-4

PUBLIC FINANCE

Classification of taxes on basis of impact on the tax payer. - Indirect tax.
Topic summary / review

By the end of the lesson, the learner should be able to:
State merits and demerits of Indirect tax.

Q/A and guided discussion.

text book

Pg. 138-141

INFLATION

Introduction Consumer Price index
Simple and weighted price relatives.

By the end of the lesson, the learner should be able to:


Define the terms inflation and deflation.
Define the term CPI.
Compute CPI.

Guided discussion and computations.

Newspaper cuttings & relevant magazines.
Price relative tables.

145-6

INFLATION

Types of inflation. Causes of demand- pull inflation.
Causes of cost- pull inflation.

By the end of the lesson, the learner should be able to:
outline types of inflation.



Explain the term demand-pull inflation.
Explain causes of demand ?pull inflation.

Teacher exposes new concepts related to inflation types.

Expository and descriptive approaches.

Newspaper cuttings & relevant magazines.

Pg. 147-8


Pg. 149-150

INFLATION

Levels of inflation & Effects of inflation on the economy of a country.
Controlling inflation.

By the end of the lesson, the learner should be able to:
Highlight various levels of inflation.
Outline positive and negative effects of inflation.

Probing questions;
Discussion..

Newspaper cuttings & relevant magazines.

Pg. 152-3,

154-6

INTERNATIONAL TRADE

Types of International Trade. Advantages and disadvantages of International Trade.
Terms of International Trade.

By the end of the lesson, the learner should be able to:



Distinguish bilateral trade from multilateral trade.


State advantages and disadvantages of International Trade.

Brainstorming and guided discussion.


Q/A & guided discussion

Newspaper cuttings & relevant magazines.
text book

Pg. 163-4

INTERNATIONAL TRADE

Terms of trade among different countries.
Balance of Payments. (Current A/C)

By the end of the lesson, the learner should be able to:
Account for differences in terms of terms of trade among nations.

Probing questions and guided discussion.

newspaper
text book

Pg. 167-8

INTERNATIONAL TRADE

Balance of Payments. (Capital A/C)

By the end of the lesson, the learner should be able to:
Cite examples of transactions that affect the Capital A/C.

Q/A: review types of capital.
Exposition of new concepts and detailed discussion.

newspaper

Pg. 169-170

INTERNATIONAL TRADE

Overall Balance of Payments.
The Official Settlement A/C.

By the end of the lesson, the learner should be able to:
Determine the overall balance of payments.

Q/A: review current A/C and capital A/C.
Illustrative examples.
Assignment.

newspaper
text book

Pg. 170

INTERNATIONAL TRADE

Disequilibrium of Balance of payments. Correction of balance of payment disequilibrium.
Terms of sale in international trade.

By the end of the lesson, the learner should be able to:
Identify causes of Disequilibrium of Balance of payments.

Outline methods of correcting of balance of payment disequilibrium.

Exposition of new concepts & explanations;
Discussion.

text book

Pg. 172-5

INTERNATIONAL TRADE

Documents used in international trade.

By the end of the lesson, the learner should be able to:
Identify major documents used in international trade.

Give examples of relevant documents.
Give examples of relevant documents.

text book

Pg. 176-7

INTERNATIONAL TRADE

IMF, ADF and World bank.

By the end of the lesson, the learner should be able to:
State objectives of IMF, ADF and World bank..
Trace a background to the growth of specific
development funds.

Brain storming;
Discussion.

Newspaper cuttings & relevant magazines.

Pg. 179-180