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.
Acid test or quick ratio.

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.
Determine the quick ratio given current assets, stock and current liabilities.

Brief discussion;
simple problem solving;
Assignment.
Exposition of new concepts;
Simple calculations.

chart, text book
Business Magazines.

New Inventor K.L.B. BK IV. Pg. 79
New Inventor K.L.B. BK IV. Pg. 79-80

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.

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

Money system Characteristics of money.
Functions of money.
Demand for money (liquidity preference)

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

Brainstorming and superficial discussion.
Probing questions;
Discussion.

text book
chart
text book

New Inventor K.L.B. BK IV. Pg 95-96
New Inventor K.L.B. BK IV. Pg. 96-97

MONEY & BANKING

Supply of money. Banking System.

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

New Inventor K.L.B. BK IV. Pg. 99-100

MONEY & BANKING

Development of Banking. Commercial Banks.
Services offered by commercial banks.

By the end of the lesson, the learner should be able to:
Outline a brief history on development of banking.

Identify methods employed by commercial banks to generate profits.
Identify services offered by commercial banks.

Exposition and probing questions;
Detailed discussion.

text book

New Inventor K.L.B. BK IV. Pg. 101-103

MONEY & BANKING

Non-banking financial institutions.
Functions of the Central bank.
Trends in banking.

By the end of the lesson, the learner should be able to:
Cite examples of non-banking financial institutions.
State functions of non-banking financial institutions.
Outline differences between commercial bank and NBFI.


Identify objectives and functions of the Central Bank.

Exposition;
Brief discussion;
Probing questions.
Exposition of new ideas;
Guided discussion.

text book
text book
chart,text book

New Inventor K.L.B. BK IV. Pg. 109-113
New Inventor K.L.B. BK IV. Pg 113-8

PUBLIC FINANCE

Purpose of public finance. Sources of public finance.

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



Differentiate between internal and external borrowing.

Brainstorming.
Brief discussion.

Business Magazines.

New Inventor K.L.B. BK IV. Pg.125-7

PUBLIC FINANCE

External borrowing.

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

New Inventor K.L.B. BK IV. Pg. 127-8

PUBLIC FINANCE

Government expenditure. Principles of public expenditure.
Taxation.
Principles of taxation.

By the end of the lesson, the learner should be able to:
Differentiate between recurrent and development expenditure.
Outline principles of public expenditure.
Explain basic principles of taxation.

Exposition & discussion.

Newspaper cuttings & relevant magazines.

New Inventor K.L.B. BK IV. Pg. 129-130
New Inventor K.L.B. BK IV. pg 132-3

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.

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

PUBLIC FINANCE
INFLATION

Topic summary / review
Introduction Consumer Price index
Simple and weighted price relatives.

By the end of the lesson, the learner should be able to:
Tackle review question,
Compute the price index using simple average of price relatives.
Compute the price index using the weighted average method.

Problem solving.Revision;

Guided computations.

Supervised practice.

text book
Newspaper cuttings & relevant magazines.
Price relative tables.

Pg. 142-144
Pg. 147

INFLATION

Types of inflation. Causes of demand- 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

Causes of cost- pull inflation.
Levels of inflation & Effects of inflation on the economy of a country.

By the end of the lesson, the learner should be able to:
Explain the concept of cost-pull inflation.
Explain the causes of cost-pull inflation.

Expository and descriptive approaches with probing questions.

Newspaper cuttings & relevant magazines.

Pg. 152

INFLATION
INTERNATIONAL TRADE

Controlling inflation.
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:
Identify some policies adopted by the govt to reduce or control inflation.



Distinguish bilateral trade from multilateral trade.


State advantages and disadvantages of International Trade.

Discussion on: control of money supply, control of demand, cost control.






Brainstorming and guided discussion.


Q/A & guided discussion

Newspaper cuttings & relevant magazines.
text book

Pg. 156-8



Pg. 163-4

INTERNATIONAL TRADE

Terms of trade among different countries.

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

Pg. 167-8