SOURCE DOCUMENTS & BOOKS OF ORIGINAL ENTRY

Introduction and Cash Receipts
Invoice
Debit Note and Credit Note

By the end of the lesson, the learner should be able to:
Define source documents; Explain importance of source documents; Describe features of cash receipts; Distinguish between cash and cheque payments

Q/A on business transactions; Discussion on documentary evidence; Examination of cash receipt samples; Practical exercise filling cash receipts

Sample receipts, cash register examples, receipt books
Sample invoices, calculators, discount calculation worksheets
Sample debit notes, credit notes (red colored), comparison charts

KLB Secondary Business Studies Form 4, Pages 1-3

SOURCE DOCUMENTS & BOOKS OF ORIGINAL ENTRY

Payment Voucher and Introduction to 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 payment vouchers; Explain vouching process; Define books of original entry; List the various subsidiary books

Examination of payment vouchers; Practical voucher completion; Introduction to subsidiary books concept; Overview of all journal types

Payment vouchers, petty cash vouchers, chart of all books of original entry
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, Pages 6-7

SOURCE DOCUMENTS & BOOKS OF ORIGINAL ENTRY

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

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
Cash payments journal format, payment vouchers, receipts, ledger accounts

KLB Secondary Business Studies Form 4, Pages 16-19

SOURCE DOCUMENTS & BOOKS OF ORIGINAL ENTRY

The Petty Cash Book - Imprest System
Petty Cash Book Preparation and Analysis
Posting from Petty Cash Book
Analysis Cash Book

By the end of the lesson, the learner should be able to:
Explain petty cash concept; Define and apply imprest system; Identify features of petty cash book; Understand petty cashier responsibilities

Discussion on petty cash concept; Introduction to imprest system; Examination of petty cash book format; Explanation of reimbursement process

Petty cash book format, sample petty cash vouchers, imprest system examples
Petty cash transactions, analysis cash book format, calculator, petty cash vouchers
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, Page 25

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
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
Introduction to Trading Account
Trading Account Preparation - Basic
Trading Account with Adjustments

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
Trading account format sheets, demonstration materials, simple examples
Trading account formats, practical examples, balancing demonstrations
Comprehensive trading account formats, advanced examples, adjustment worksheets

KLB Secondary Business Studies Form 4, Page 40

FINANCIAL STATEMENTS

Importance and Applications of Trading Account
Net Profit and Net Loss Concepts
Revenue and Expense Classification
Profit and Loss Account Preparation

By the end of the lesson, the learner should be able to:
Explain importance of trading account; Identify management uses; Compare business performance; Analyze gross profit trends

Discussion on trading account benefits; Case studies on business decision making; Analysis of gross profit variations; Group presentations on importance

Case study materials, performance comparison charts, presentation guidelines
Net profit calculation sheets, revenue and expense examples, comparison charts
Classification worksheets, trial balance examples, group exercise materials
Profit and loss account formats, demonstration materials, practice examples

KLB Secondary Business Studies Form 4, Pages 58-60

FINANCIAL STATEMENTS

Profit and Loss Account from Trial Balance
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 profit and loss account from trial balance; Identify relevant items from trial balance; Calculate net profit or loss; Handle complex trial balances

Using Maneno's trial balance example; Step-by-step extraction of relevant items; Practice with complex trial balances; Error detection exercises

Trial balance examples, extraction worksheets, complex scenarios
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 63-64

FINANCIAL STATEMENTS

Balance Sheet Preparation
Types of Capital
Capital Calculations and Applications
Introduction to Financial Ratios

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
Advanced calculation sheets, multiple scenarios, problem-solving materials
Ratio calculation sheets, mark-up examples, pricing strategy materials

KLB Secondary Business Studies Form 4, Pages 66-67

FINANCIAL STATEMENTS

Mark-up Calculations and Applications
Margin Concept and Calculations
Relationship Between Mark-up and Margin

By the end of the lesson, the learner should be able to:
Calculate mark-up using various methods; Apply mark-up to determine selling prices; Use mark-up in trading account preparation; Solve practical problems

Advanced mark-up calculations; Using Kiambu Traders example; Practical applications in pricing; Problem-solving exercises

Mark-up calculation worksheets, Kiambu Traders example, pricing problems
Margin calculation sheets, comparison charts, Waithera's example
Conversion formula sheets, mathematical examples, complex problems

KLB Secondary Business Studies Form 4, Pages 69-72

FINANCIAL STATEMENTS

Trading Account Preparation Using Ratios
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:
Use mark-up to prepare trading accounts; Apply margin in account preparation; Handle incomplete records; Solve complex scenarios

Practical preparation using mark-up and margin; Incomplete records scenarios; Advanced problem-solving; Individual and group exercises

Trading account formats, incomplete record examples, complex scenarios
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 72-74

FINANCIAL STATEMENTS
MONEY & BANKING
MONEY & BANKING

Return on Capital
Acid Test and Quick Ratio
Importance of Financial Ratios
Introduction, Barter Trade and its Limitations
Money System and Characteristics of Money

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
Stakeholder analysis sheets, case study materials, presentation guidelines
Real exchange items, Problem scenario cards, Case study materials, Charts
Different currencies, Genuine and sample notes, Magnifying glass, Regional currency samples

KLB Secondary Business Studies Form 4, Pages 78-79

MONEY & BANKING

Functions of Money
Demand for Money and Supply of Money
Banking System and Development of Banking
Commercial Banks and Their Services
Commercial Bank Services and Foreign Exchange
Types of Bank Accounts - Current and Savings
Fixed Deposit Accounts and Account Opening Requirements

By the end of the lesson, the learner should be able to:
Explain all functions of money: medium of exchange, measure of value, unit of account, store of value, standard of deferred payment, transfer of immovable assets. Apply functions in practical scenarios.

Practical trading exercises using money. Value comparison activities. Record keeping using money as unit. Case studies on savings and debt payments. Mock property transfer scenarios.

Goods for trading, Price tags, Recording sheets, Savings scenarios, Property document samples
Budget sheets, Emergency scenarios, Investment charts, Money supply statistics, Central Bank reports
Banking system charts, Historical timeline materials, Bank category lists, Banking evolution charts
Mock bank materials, Deposit slips, Transfer forms, Safety boxes, Play money, Standing order cards
Exchange rate charts, Advisory scenario cards, Trustee examples, Guarantor forms, Intermediary flow charts
Account opening forms, Cheque books, ATM cards, Interest calculation sheets, Comparison charts
Investment scenarios, Calculation sheets, Account forms, ID documents, Photographs, Certificate samples

KLB Secondary Business Form 4, Pages 95-96

MONEY & BANKING

Non-Banking Financial Institutions (NBFIs)
Micro-Finance, Agricultural Finance and Differences with Commercial Banks
Central Bank Functions

By the end of the lesson, the learner should be able to:
Define NBFIs and their purpose. Explain Development Finance Institutions, Housing Finance Companies, SACCOs, Insurance Companies. Detail their functions and services.

Research on local NBFIs. SACCO membership simulation. Insurance policy analysis. Housing finance case studies. Group presentations on NBFI roles.

NBFI information sheets, SACCO materials, Insurance policies, Housing finance examples, Case study materials
Loan application forms, Agricultural projects, Comparison charts, Case studies, Analysis sheets
Central Bank charts, Currency samples, Inter-bank forms, Government forms, Supervision checklists, Clearing examples

KLB Secondary Business Form 4, Pages 111-113

MONEY & BANKING
PUBLIC FINANCE
PUBLIC FINANCE

Monetary Policy Tools
Modern Banking Trends
Modern Banking Trends
Introduction to Public Finance and its Purpose
Purpose of Public Finance - Provision of Essential Services

By the end of the lesson, the learner should be able to:
Define monetary policy and its objectives. Explain bank rate, open market operations, cash/liquidity ratio, compulsory deposits, selective credit controls, directives and moral suasion. Demonstrate how these tools control money supply.

Monetary policy simulation exercises. Interest rate effect analysis. Securities trading demonstrations. Cash ratio calculations. Credit control scenarios. Policy tool comparison activities.

Policy charts, Interest rate examples, Securities samples, Calculation sheets, Control scenarios, Comparison tables
ATM cards, Computer demonstrations, Modern banking examples, Technology comparison charts
Mobile phones, E-banking platforms, Digital payment examples, Credit forms, Service scenarios, Mobile bank materials
Chalkboard, textbook, exercise books, pens, local examples from students' experience.
Chalkboard, textbook, exercise books, chalk, students' prior knowledge and experiences.

KLB Secondary Business Form 4, Pages 115-117

PUBLIC FINANCE

Purpose of Public Finance - Economic Control and Development
Sources of Public Finance - Overview and Classification
Government Borrowing - Internal and External
Types of Debt and Government Expenditure
Principles of Public Expenditure
Introduction to Tax and Taxation
Principles of Taxation

By the end of the lesson, the learner should be able to:
Explain how public finance controls consumption of certain products. Describe how government encourages/discourages certain economic activities. Analyze balanced regional development through public finance. Examine wealth redistribution through public finance.

Discussion on high prices of cigarettes and alcohol; Teacher explains government subsidies using fertilizer example; Students give examples of development projects in different counties; Q/A on how taxes help the poor.

Chalkboard, textbook, exercise books, examples from students' local knowledge, chalk.
Chalkboard, textbook, exercise books, chalk, students' observations from daily life.
Chalkboard, textbook, exercise books, chalk, basic calculator (if available), student knowledge.
Chalkboard, textbook, exercise books, chalk, local examples from students' environment.
Chalkboard, textbook, exercise books, chalk, students' general knowledge from radio/conversations.
Chalkboard, textbook, exercise books, chalk, students' shopping experiences and observations.
Chalkboard, textbook, exercise books, chalk, students' market experiences and price observations.

KLB Secondary Business Studies Form 4, Pages 124-125

PUBLIC FINANCE
INFLATION
INFLATION

Classification of Taxes - By Structure
Classification of Taxes - Direct vs Indirect
Merits and Demerits of Direct and Indirect Taxes
Introduction to Inflation and Deflation
Consumer Price Index (CPI) Concepts

By the end of the lesson, the learner should be able to:
Define and distinguish regressive, proportional and progressive taxes. Calculate tax under different tax structures. Analyze the impact of each tax structure on different income groups. Evaluate merits and demerits of progressive taxation.

Teacher works through mathematical examples on chalkboard; Students practice calculations in exercise books; Group work comparing effects on different income earners; Supervised practice with simple numbers.

Chalkboard, textbook, exercise books, chalk, basic arithmetic skills, simple calculation examples.
Chalkboard, textbook, exercise books, chalk, students' knowledge of prices and salary deductions.
Chalkboard, textbook, exercise books, chalk, student experiences and observations, review questions.
Price comparison charts from different years, Country inflation examples, Purchasing power calculation sheets, Real product price data
Sample consumer baskets, Base year price data, Price collection sheets, Index calculation examples, Consumer survey materials

KLB Secondary Business Studies Form 4, Pages 132-135

INFLATION

CPI Calculation - Simple Average Method
CPI Calculation - Weighted Average Method
Types of Inflation and Demand-Pull Inflation
More Causes of Demand-Pull Inflation
Cost-Push Inflation and Its Causes
More Cost-Push Causes and Subsidy Effects
Levels of Inflation

By the end of the lesson, the learner should be able to:
Calculate price relatives for individual commodities. Compute Consumer Price Index using simple average method. Interpret CPI results and their meaning. Practice with multiple commodities and time periods.

Step-by-step CPI calculation exercises. Price relative computation for various goods. Simple average CPI calculation practice. Interpretation of results meaning for purchasing power. Group work on different commodity baskets.

Price data for multiple commodities, Calculation worksheets, Calculators, CPI formula charts, Practice problem sets
Family budget examples, Weight assignment sheets, Weighted calculation templates, Comparison tables, Advanced calculation problems
Market simulation materials, Government spending examples, Money supply charts, Income increase scenarios, Demand-pull diagrams
Shortage simulation materials, Population growth data, Expectation scenario cards, Consumer expenditure charts, Supply-demand graphs
Production cost scenarios, Wage-price spiral charts, Tax impact examples, Import price data, Cost-push diagrams
Manufacturing cost examples, Subsidy impact data, Profit margin scenarios, Input cost charts, Comprehensive comparison tables
Historical inflation data, Germany 1923 case study, Country comparison charts, Inflation level classification sheets

KLB Secondary Business Form 4, Pages 146-147

INFLATION

Positive Effects of Inflation
Negative Effects of Inflation
More Negative Effects and Economic Impact
Controlling Inflation - Monetary Policy Tools

By the end of the lesson, the learner should be able to:
Analyze benefits for debtors paying less in real terms. Explain how sellers can earn more profits. Demonstrate motivation to work harder. Show increased production and better resource utilization.

Debtor-creditor scenario analysis with inflation impact. Seller profit calculation exercises during inflation. Work motivation case studies during inflationary periods. Resource utilization efficiency examples during inflation.

Debtor-creditor scenarios, Profit calculation sheets, Work motivation examples, Resource utilization cases, Real vs nominal value charts
Sales simulation materials, Time cost analysis sheets, Role-play scenarios, Living standard calculation examples, Wage negotiation materials
Creditor loss examples, Economic growth data, Balance of payments charts, Monetary confidence indicators, Savings impact studies
Central Bank simulation materials, Interest rate impact charts, Securities trading examples, Cash ratio calculation sheets

KLB Secondary Business Form 4, Pages 153-154

INFLATION

More Monetary Policy Tools and Fiscal Policy
Fiscal Policy Measures and Production Solutions
Statutory Measures for Inflation Control

By the end of the lesson, the learner should be able to:
Explain selective credit controls and directives. Detail moral suasion by Central Bank. Define fiscal policy for inflation control. Analyze government spending reduction and tax policy effects.

Credit control scenario exercises. Central Bank directive simulations. Government spending impact analysis on inflation. Tax policy effects on consumer spending and production costs.

Credit control scenarios, Directive examples, Government spending data, Tax policy impact charts, Fiscal policy simulation materials
Production tax examples, Subsidy calculation sheets, Government production cases, Policy design templates, Impact analysis charts
Wage control examples, Price control policies, Import restriction data, Credit control scenarios, Policy implementation cases

KLB Secondary Business Form 4, Pages 156-158

INFLATION
INTERNATIONAL TRADE
INTERNATIONAL TRADE
INTERNATIONAL TRADE
INTERNATIONAL TRADE
INTERNATIONAL TRADE
INTERNATIONAL TRADE

Export Controls and Comprehensive Control Strategies
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
Preparing Balance of Payments Accounts

By the end of the lesson, the learner should be able to:
Explain export controls to prevent domestic shortages. Analyze combination of multiple control measures. Evaluate effectiveness of different approaches. Design comprehensive anti-inflation strategy.

Export control case studies and domestic market effects. Multi-pronged control strategy design exercises. Effectiveness evaluation of historical control measures. Comprehensive strategy presentations by groups.

Export control examples, Multi-strategy templates, Historical effectiveness data, Strategy design sheets, Presentation materials
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
Account worksheets, calculators, worked examples, practice data sets

KLB Secondary Business Form 4, Pages 158-159

INTERNATIONAL TRADE

Balance of Payments Disequilibrium
Terms of Sale in International Trade
Credit and Import Documents
Shipping, Insurance and Commercial Documents
Specialized Trade Documents

By the end of the lesson, the learner should be able to:
Define balance of payments disequilibrium. Identify causes of disequilibrium. Explain methods to decrease import volumes. Analyze export promotion strategies.

Exposition of disequilibrium causes; Case studies on policy interventions; Discussion on import reduction methods; Analysis of export compensation and diversification strategies.

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
Bill of lading samples, insurance certificates, invoice examples, document comparison charts
Document samples, flow charts, practical scenarios, case studies

KLB Secondary Business Studies Form 4, Pages 171-174

INTERNATIONAL TRADE

IMF and World Bank
African Development Institutions
Forms and Characteristics of Economic Integration

By the end of the lesson, the learner should be able to:
State objectives and functions of IMF. Explain stable exchange rate maintenance and international liquidity provision. Describe World Bank objectives and development financing role. Compare IMF and World Bank functions.

Exposition of institutional backgrounds; Discussion on exchange rate stabilization; Case studies on institutional interventions; Comparison of lending terms and objectives.

Charts showing institutional structures, case study materials, project reports
ADB/ADF project reports, development case studies, institutional comparison charts
Maps showing integration blocs, comparison charts, case study materials on regional blocs

KLB Secondary Business Studies Form 4, Pages 180-182

INTERNATIONAL TRADE

Importance and Effects of Economic Integration
Reasons and Methods of Trade Restrictions
Advantages and Disadvantages of Trade Restrictions
Trade Liberalization and Export Processing Zones

By the end of the lesson, the learner should be able to:
Explain importance of economic integration including market expansion and specialization. Analyze advantages of free trade. Identify disadvantages including revenue loss and unemployment risks. Evaluate overall impact on member countries.

Group discussions on integration benefits; Case studies on successful integration examples; Analysis of trade creation vs trade diversion; Balanced assessment of costs and benefits.

Integration success stories, policy analysis documents, charts showing trade effects
Case study materials, tariff schedules, quota examples, policy documents, calculators
Policy analysis documents, consumer impact studies, case study materials
EPZ documentation, liberalization case studies, charts showing trade policy evolution

KLB Secondary Business Studies Form 4, Pages 184-185

INTERNATIONAL TRADE

E-commerce and Digital Trade
Forms and Importance of Economic Integration
Advantages and Disadvantages of Free Trade
Reasons for Trade Restrictions
Methods of Trade Restrictions
Advantages and Disadvantages of Trade Restrictions
Trends in International Trade

By the end of the lesson, the learner should be able to:
Explain e-commerce applications in international trade. Describe online payment systems and digital transactions. Analyze advantages and challenges of digital trade. Discuss future trends in electronic commerce.

Demonstration of e-commerce platforms; Discussion on digital payment security; Group work on online trade benefits and risks; Analysis of technology impact on trade.

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
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

KLB Secondary Business Studies Form 4, Pages 189

ECONOMIC DEVELOPMENT AND PLANNING

Economic Growth and Development Concepts
Characteristics of Under-development
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:
Define economic growth and economic development. Distinguish between economic growth and development. Explain measurement of economic growth rates. Identify structural changes accompanying economic development.

Q/A session on development indicators; Guided discussion on growth vs development differences; Analysis of Kenya's economic journey; Group work on identifying structural changes.

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
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 195-196