DETERMINING THE NET WORTH OF A BUSINESS

Introduction and meaning of assets
Types of assets (continued) and liabilities

By the end of the lesson, the learner should be able to:
- Define the term assets in business context
-Distinguish between fixed assets and current assets
-Identify at least 5 examples of fixed assets
-Explain characteristics of fixed and current assets
-Classify given business items as fixed or current assets

Brainstorming on business properties; Group discussion on asset classification; Practical exercise identifying assets in local businesses; Classification activity using real business examples

Textbook, Charts showing asset types, Pictures of business assets, Classification worksheets
Textbook, Case study materials, Charts on liability types, Local business examples

Trendy Business Studies Form 3 Student's Book Pg 96-97

DETERMINING THE NET WORTH OF A BUSINESS

Capital and its importance
The book-keeping equation
Application of book-keeping equation
The balance sheet - meaning and essentials
Format and structure of balance sheet
Preparation of simple balance sheets

By the end of the lesson, the learner should be able to:
- Define capital in business context
-Explain the importance of capital to a business
-Identify sources of business capital
-Analyze the relationship between capital, assets and liabilities
-Discuss factors that affect capital adequacy

Interactive discussion on capital sources; Role play on capital acquisition; Analysis of capital importance; Group work on capital planning scenarios

Textbook, Role play materials, Capital planning worksheets, Calculator
Textbook, Calculator, Problem solving worksheets, Formula charts
Textbook, Calculator, Practice worksheets, Real business data examples
Textbook, Sample balance sheets, Drawing materials, T-format templates
Textbook, Drawing materials, Rulers, Sample formats, Chart paper
Textbook, Calculator, Preparation worksheets, Sample data, Graph paper

Trendy Business Studies Form 3 Student's Book Pg 98-99

DETERMINING THE NET WORTH OF A BUSINESS

Complex balance sheet preparation
Importance of balance sheet
Net worth calculation and analysis

By the end of the lesson, the learner should be able to:
- Prepare balance sheets with multiple items
-Handle complex business scenarios
-Solve problems involving missing capital
-Arrange items in order of liquidity
-Analyze prepared balance sheets for accuracy

Advanced problem solving; Complex calculations; Alternative arrangement exercises; Peer review activities; Error correction exercises

Textbook, Calculator, Complex problem sets, Peer review sheets
Textbook, Case study materials, Role play cards, Real balance sheet examples
Textbook, Calculator, Comparative data, Analysis worksheets

Trendy Business Studies Form 3 Student's Book Pg 104-106

THE LEDGER

Meaning, purpose and format of ledger accounts
Rules of recording and double entry concept
Recording business transactions and opening accounts
Recording purchases, sales and returns
Recording expenses, revenues and drawings
Balancing ledger accounts

By the end of the lesson, the learner should be able to:
- Define a ledger and ledger account
-Explain the purpose of keeping a ledger
-Identify features of a ledger account
-Draw the correct format of a ledger account
-Explain the four columns and T-shape format
-Distinguish between debit and credit sides

Introduction to ledger concept; Demonstration of T-format; Group discussion on ledger importance; Drawing ledger account format; Practical identification exercises; Format construction activities

Textbook, Ledger books, Rulers, Chart paper, T-format templates
Textbook, Ledger books, Rules summary charts, Double-entry worksheets, Calculator
Textbook, Ledger books, Transaction examples, Balance sheet examples, Practice sets
Textbook, Ledger books, Purchase scenarios, Returns scenarios, Transaction cards
Textbook, Ledger books, Expense/revenue examples, Drawings scenarios, Classification worksheets
Textbook, Ledger books, Calculator, Balancing worksheets, Special scenario worksheets

Trendy Business Studies Form 3 Student's Book Pg 127-129

THE LEDGER
THE CASH BOOK
THE CASH BOOK

Uses of ledger and trial balance preparation
Trial balance limitations and errors
Classification of accounts and types of ledgers
Introduction, meaning and purpose of cash book
Types of cash books and single-column cash book

By the end of the lesson, the learner should be able to:
- Explain the uses of ledger accounts
-Define trial balance and its purpose
-Extract account balances from ledger
-Prepare trial balance from ledger accounts
-Demonstrate trial balance equilibrium
-Show procedure for trial balance preparation

Trial balance preparation; Balance extraction exercises; Practical preparation activities; Uses discussion; Error checking sessions; Step-by-step trial balance construction

Textbook, Ledger books, Trial balance formats, Calculator, Extraction worksheets
Textbook, Error example worksheets, Analysis charts, Correction materials, Error detection aids
Textbook, Classification charts, Ledger type examples, Comparison worksheets, Business scenario materials
Textbook, Sample cash books, Transaction examples, Chart showing cash book structure
Textbook, Cash book formats, Practice worksheets, Rulers, Calculator

Trendy Business Studies Form 3 Student's Book Pg 141-142

THE CASH BOOK

The two-column cash book
Bank overdraft and advanced two-column cash book
The three-column cash book and discount columns
Double-entry and ledger posting from cash book
Pertinent issues and comprehensive practice
Pertinent issues and comprehensive practice

By the end of the lesson, the learner should be able to:
- Explain the two-column cash book structure
-Identify cash and bank columns
-Record transactions in two-column cash book
-Understand contra entries and their recording
-Balance cash and bank columns separately
-Show proper use of folio references

Two-column format demonstration; Contra entries explanation; Practical recording exercises; Balancing procedures for both columns; Group problem solving; Step-by-step construction activities

Textbook, Two-column cash book formats, Transaction sets, Calculator, Contra entry examples
Textbook, Calculator, Complex transaction examples, Overdraft scenarios, Business case studies
Textbook, Three-column cash book formats, Calculator, Discount calculation worksheets, Practice sets
Textbook, Ledger books, Posting examples, Dishonoured cheque scenarios, Practice worksheets
Textbook, Comprehensive problem sets, Ethical scenario cards, Case study materials, Assessment worksheets

Trendy Business Studies Form 3 Student's Book Pg 163-165

SOURCE DOCUMENTS & BOOKS OF ORIGINAL ENTRY

Sales Journal
Posting from Sales Journal
Sales Returns Journal and Posting
Purchases Journal
Posting from Purchases Journal

By the end of the lesson, the learner should be able to:
Identify features of sales journal; Prepare sales journal from credit sales transactions; Record transactions in proper format; Understand source documents used

Step-by-step demonstration of sales journal preparation; Practical exercise with multiple credit sales; Discussion on journal format and columns

Sales invoices, sales journal format, sample credit sales transactions
Sales journal, sales ledger accounts, general ledger format, posting examples
Credit notes issued, sales returns journal format, ledger accounts
Purchase invoices, purchases journal format, sample credit purchase transactions
Purchases journal, purchases ledger, general ledger accounts

KLB Secondary Business Studies Form 4, Page 8

SOURCE DOCUMENTS & BOOKS OF ORIGINAL ENTRY

Purchases Returns Journal and Posting
Cash Receipts Journal
Posting from Cash Receipts Journal

By the end of the lesson, the learner should be able to:
Prepare purchases returns journal; Record goods returned to suppliers; Post to creditors accounts and returns outwards account; Use credit notes received

Examination of credit notes received; Preparation of purchases returns journal; Complete posting exercise; Discussion on returns outwards concept

Credit notes received, purchases returns journal format, ledger accounts
Cash receipts journal format, sample receipts, cash sales data
Cash receipts journal, cash book format, general ledger accounts

KLB Secondary Business Studies Form 4, Pages 16-19

SOURCE DOCUMENTS & BOOKS OF ORIGINAL ENTRY

Cash Payments Journal and Posting
The Petty Cash Book - Imprest System
Petty Cash Book Preparation and Analysis

By the end of the lesson, the learner should be able to:
Prepare cash payments journal; Record cash and cheque payments; Include discount received column; Post to relevant ledger accounts

Preparation of cash payments journal using payment data; Complete posting exercise to cash book and ledgers; Discussion on discount received

Cash payments journal format, payment vouchers, receipts, ledger accounts
Petty cash book format, sample petty cash vouchers, imprest system examples
Petty cash transactions, analysis cash book format, calculator, petty cash vouchers

KLB Secondary Business Studies Form 4, Pages 22-25

SOURCE DOCUMENTS & BOOKS OF ORIGINAL ENTRY

Posting from Petty Cash Book
Analysis Cash Book

By the end of the lesson, the learner should be able to:
Post analysis column totals to general ledger; Post creditor payments to purchases ledger; Understand petty cash book as both ledger and journal

Demonstration of posting from analysis columns; Practical posting exercise; Discussion on dual nature of petty cash book; Review of all posting procedures

Petty cash book, general ledger accounts, purchases ledger
Analysis cash book format, sample transactions for club/society, ledger accounts

KLB Secondary Business Studies Form 4, Pages 30-31

SOURCE DOCUMENTS & BOOKS OF ORIGINAL ENTRY

General Journal - Introduction and Fixed Assets
General Journal - Opening Entries
General Journal - Closing Entries and Error Corrections

By the end of the lesson, the learner should be able to:
Define general journal; Identify transactions for journal proper; Record purchase and sale of fixed assets on credit; Write appropriate narrations

Introduction to general journal concept; Recording fixed asset transactions; Practical exercises on asset purchases and sales; Discussion on narration writing

General journal format, fixed asset transaction examples, calculator for gains/losses
Opening balance data, general journal format, calculator
Sample closing entries, error correction scenarios, transfer examples

KLB Secondary Business Studies Form 4, Pages 35-37

SOURCE DOCUMENTS & BOOKS OF ORIGINAL ENTRY
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS

Importance of Journals
Introduction and Trading Period Concept
Determination of Profit or Loss
Cost of Goods Sold Calculations
Complex Profit and Loss Calculations

By the end of the lesson, the learner should be able to:
State reasons for maintaining journals; Explain benefits to business operations; Understand fraud prevention aspects; Analyze efficiency improvements

Group discussion on journal importance; Analysis of business benefits; Case study on fraud prevention; Debate on manual vs computerized systems

Discussion prompts, case study materials, summary charts
Charts showing different accounting periods, sample financial statements
Calculators, simple profit calculation worksheets, examples from textbook
Calculators, cost of goods sold worksheets, stock calculation examples
Advanced calculation worksheets, complex business scenarios, group work materials

KLB Secondary Business Studies Form 4, Page 40

FINANCIAL STATEMENTS

Introduction to Trading Account
Trading Account Preparation - Basic
Trading Account with Adjustments
Importance and Applications of Trading Account
Net Profit and Net Loss Concepts

By the end of the lesson, the learner should be able to:
Define trading account; Identify components of trading account; Explain purpose of trading account; Prepare simple trading accounts

Introduction to trading account format; Demonstration using Mrs Matendo's data; Step-by-step preparation of trading account; Practice with simple examples

Trading account format sheets, demonstration materials, simple examples
Trading account formats, practical examples, balancing demonstrations
Comprehensive trading account formats, advanced examples, adjustment worksheets
Case study materials, performance comparison charts, presentation guidelines
Net profit calculation sheets, revenue and expense examples, comparison charts

KLB Secondary Business Studies Form 4, Pages 56-57

FINANCIAL STATEMENTS

Revenue and Expense Classification
Profit and Loss Account Preparation
Profit and Loss Account from Trial Balance

By the end of the lesson, the learner should be able to:
Classify items as revenues or expenses; Distinguish between income and expenditure; Identify debit and credit balance items; Understand trial balance classifications

Practical classification exercises; Analysis of Salim's trial balance; Group work on item classification; Discussion on debit/credit balances

Classification worksheets, trial balance examples, group exercise materials
Profit and loss account formats, demonstration materials, practice examples
Trial balance examples, extraction worksheets, complex scenarios

KLB Secondary Business Studies Form 4, Pages 61-62

FINANCIAL STATEMENTS

Combined Trading and Profit & Loss Account
Importance of Profit and Loss Account
Balance Sheet Introduction

By the end of the lesson, the learner should be able to:
Prepare combined trading, profit and loss account; Use Kipande Traders comprehensive example; Handle complete final accounts; Apply proper formatting

Comprehensive preparation using Kipande Traders; Step-by-step combined account preparation; Practice with complete examples; Individual and group work

Complete final account formats, comprehensive examples, practice materials
Stakeholder analysis sheets, case study materials, role-play guidelines
Balance sheet formats, accounting equation demonstrations, basic examples

KLB Secondary Business Studies Form 4, Pages 64-66

FINANCIAL STATEMENTS

Balance Sheet Preparation
Types of Capital

By the end of the lesson, the learner should be able to:
Prepare balance sheet from trial balance; Make adjustments for net profit and drawings; Apply proper balance sheet format; Ensure balancing totals

Practical preparation using Kipande Traders; Step-by-step balance sheet construction; Adjustments for profit and drawings; Balancing exercises

Balance sheet preparation sheets, adjustment examples, balancing demonstrations
Capital calculation worksheets, Upinde Traders example, calculation exercises

KLB Secondary Business Studies Form 4, Pages 66-67

FINANCIAL STATEMENTS

Capital Calculations and Applications
Introduction to Financial Ratios
Mark-up Calculations and Applications

By the end of the lesson, the learner should be able to:
Calculate working capital and capital employed; Apply different calculation methods; Understand relationships between capital types; Practice with complex examples

Advanced capital calculations; Multiple calculation methods; Practice with various business scenarios; Problem-solving exercises

Advanced calculation sheets, multiple scenarios, problem-solving materials
Ratio calculation sheets, mark-up examples, pricing strategy materials
Mark-up calculation worksheets, Kiambu Traders example, pricing problems

KLB Secondary Business Studies Form 4, Pages 67-69

FINANCIAL STATEMENTS

Margin Concept and Calculations
Relationship Between Mark-up and Margin
Trading Account Preparation Using Ratios

By the end of the lesson, the learner should be able to:
Define margin; Distinguish between mark-up and margin; Calculate margin using different methods; Apply margin in business decisions

Introduction to margin concept; Comparison with mark-up; Practical calculations; Using Waithera's example for margin applications

Margin calculation sheets, comparison charts, Waithera's example
Conversion formula sheets, mathematical examples, complex problems
Trading account formats, incomplete record examples, complex scenarios

KLB Secondary Business Studies Form 4, Pages 71-74

FINANCIAL STATEMENTS

Current Ratio and Working Capital Ratio
Rate of Stock Turnover
Stock Turnover Applications

By the end of the lesson, the learner should be able to:
Define current ratio; Calculate working capital ratio; Interpret ratio results; Understand liquidity implications

Introduction to liquidity ratios; Practical calculations using Busia Traders; Interpretation of results; Discussion on business implications

Ratio calculation sheets, Busia Traders example, interpretation guides
Stock turnover worksheets, Upendo Traders example, practical applications
Advanced application sheets, Maendeleo Traders example, complex scenarios

KLB Secondary Business Studies Form 4, Pages 75-76

FINANCIAL STATEMENTS

Return on Capital
Acid Test and Quick Ratio

By the end of the lesson, the learner should be able to:
Define return on capital; Calculate return on capital; Interpret results for decision making; Compare business performance

Introduction to profitability ratios; Calculations using Mr Odiek's example; Performance comparison methods; Investment decision applications

Return calculation sheets, Mr Odiek's example, comparison materials
Quick ratio worksheets, Nakura Stores example, liquidity analysis materials

KLB Secondary Business Studies Form 4, Pages 78-79

FINANCIAL STATEMENTS
INTERNATIONAL TRADE
INTERNATIONAL TRADE
INTERNATIONAL TRADE
INTERNATIONAL TRADE
INTERNATIONAL TRADE

Importance of Financial Ratios
Introduction, Types and Advantages
Disadvantages of International Trade
Computing Terms of Trade
Factors Affecting Terms of Trade
Balance of Trade and Balance of Payments Concepts

By the end of the lesson, the learner should be able to:
Explain importance of each ratio type; Identify stakeholder uses; Understand decision-making applications; Analyze business implications

Comprehensive discussion on ratio importance; Stakeholder analysis; Case studies on ratio applications; Group presentations

Stakeholder analysis sheets, case study materials, presentation guidelines
World map, newspapers with trade reports, charts showing Kenya's trading partners, business magazines
Newspaper cuttings on industry closures, case study materials, charts showing trade impacts
Calculators, statistical data sheets, worked examples, formula charts
Case study materials, charts comparing different economies, business magazines
Trade statistics, charts showing balance structure, newspapers with economic data

KLB Secondary Business Studies Form 4, Page 80

INTERNATIONAL TRADE

Preparing Balance of Payments Accounts
Balance of Payments Disequilibrium
Terms of Sale in International Trade
Credit and Import Documents

By the end of the lesson, the learner should be able to:
Prepare balance of payments on current account. Calculate balance of payments on capital account. Determine overall balance of payments. Interpret account balances and official settlement account.

Step-by-step account preparation; Worked examples with comprehensive data; Supervised practice exercises; Group problem-solving on complex scenarios.

Account worksheets, calculators, worked examples, practice data sets
Policy documents, case study materials, charts showing correction methods
Shipping documents, cost calculation worksheets, practical scenarios, charts
Sample letters of credit, import licence forms, indent examples, banking documents

KLB Secondary Business Studies Form 4, Pages 169-171

INTERNATIONAL TRADE

Shipping, Insurance and Commercial Documents
Specialized Trade Documents
IMF and World Bank

By the end of the lesson, the learner should be able to:
Explain bill of lading purposes and features. Describe insurance policy types and certificate of origin. Analyze commercial and consular invoices. Compare airway bill with other transport documents.

Examination of actual shipping documents; Discussion on insurance requirements; Group analysis of invoice types; Comparison of transport document features.

Bill of lading samples, insurance certificates, invoice examples, document comparison charts
Document samples, flow charts, practical scenarios, case studies
Charts showing institutional structures, case study materials, project reports

KLB Secondary Business Studies Form 4, Pages 177-178

INTERNATIONAL TRADE

African Development Institutions
Forms and Characteristics of Economic Integration
Importance and Effects of Economic Integration

By the end of the lesson, the learner should be able to:
Explain ADB establishment and functions. Describe ADF objectives and lending terms. Analyze impact on African development. Compare regional vs global financial institutions.

Exposition of regional development banking; Case studies on funded African projects; Discussion on concessional lending terms; Analysis of development impact assessment.

ADB/ADF project reports, development case studies, institutional comparison charts
Maps showing integration blocs, comparison charts, case study materials on regional blocs
Integration success stories, policy analysis documents, charts showing trade effects

KLB Secondary Business Studies Form 4, Pages 181

INTERNATIONAL TRADE

Reasons and Methods of Trade Restrictions
Advantages and Disadvantages of Trade Restrictions

By the end of the lesson, the learner should be able to:
Explain reasons for trade restrictions including infant industry and strategic industry protection. Describe methods: tariffs, quotas, administrative bottlenecks, foreign exchange control. Analyze dumping prevention and employment protection.

Exposition of protection rationale with examples; Detailed explanation of restriction methods; Practical examples of tariff and quota calculations; Case studies on protection policies.

Case study materials, tariff schedules, quota examples, policy documents, calculators
Policy analysis documents, consumer impact studies, case study materials

KLB Secondary Business Studies Form 4, Pages 185-187

INTERNATIONAL TRADE

Trade Liberalization and Export Processing Zones
E-commerce and Digital Trade
Forms and Importance of Economic Integration
Advantages and Disadvantages of Free Trade
Reasons for Trade Restrictions

By the end of the lesson, the learner should be able to:
Explain trade liberalization concept and effects. Describe EPZ characteristics, advantages and disadvantages. Analyze impact on domestic industries. Evaluate EPZ contribution to economic development.

Exposition of liberalization trends; Case study on Athi River EPZ; Discussion on liberalization impacts on local industries; Analysis of EPZ success factors and challenges.

EPZ documentation, liberalization case studies, charts showing trade policy evolution
Computer/tablets for demonstration, e-commerce examples, online payment illustrations
Maps showing integration blocs, charts comparing integration forms, newspaper articles on regional cooperation
Case study materials on successful integration, charts showing trade effects, policy analysis documents
Case study materials on protected industries, charts showing protection policies, newspaper articles on trade policies

KLB Secondary Business Studies Form 4, Pages 188-189

INTERNATIONAL TRADE
ECONOMIC DEVELOPMENT AND PLANNING
ECONOMIC DEVELOPMENT AND PLANNING

Methods of Trade Restrictions
Advantages and Disadvantages of Trade Restrictions
Trends in International Trade
Economic Growth and Development Concepts
Characteristics of Under-development

By the end of the lesson, the learner should be able to:
Outline methods of trade restriction including tariffs and quotas. Highlight administrative bottlenecks and foreign exchange control. Explain moral persuasion as restriction method. Calculate effects of different restriction methods.

Detailed exposition of restriction methods; Practical examples of tariff and quota calculations; Discussion on administrative procedures; Group work on foreign exchange control mechanisms.

Tariff schedules, quota examples, calculators, policy documents showing restriction methods
Policy analysis documents, case studies on protection outcomes, consumer impact studies
EPZ documentation, computers/tablets for e-commerce demonstration, charts showing trade liberalization effects
Statistical data on economic indicators, charts comparing developed vs developing countries, newspaper economic reports
Statistical data on poverty and unemployment, photos showing infrastructure gaps, case study materials on developing countries

KLB Secondary Business Studies Form 4, Pages 186-187

ECONOMIC DEVELOPMENT AND PLANNING

Factors Hindering Development
Political, Social and Economic Institutional Factors
Development Planning Process and Objectives
Need for Development Planning and Benefits
Problems in Development Planning Implementation

By the end of the lesson, the learner should be able to:
Highlight factors that impede development including resource constraints. Explain inadequate capital and poor technology impacts. Analyze human resource endowment problems. Discuss unfavorable domestic environment effects on development.

Q/A session on development barriers; Detailed exposition of hindering factors; Case studies on technology gaps and brain drain; Group discussions on institutional barriers to development.

Case studies on development barriers, charts showing technology gaps, brain drain statistics
Governance case studies, cultural practice examples, charts showing institutional frameworks
Kenya's development plan documents, planning process flowcharts, resource allocation examples
Planning success case studies, foreign aid effectiveness reports, project evaluation examples
Case studies on planning challenges, disaster impact reports, examples of successful and failed development projects

KLB Secondary Business Studies Form 4, Pages 200-202