SOURCE DOCUMENTS & BOOKS OF ORIGINAL ENTRY

Introduction and Cash Receipts
Invoice

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

KLB Secondary Business Studies Form 4, Pages 1-3

SOURCE DOCUMENTS & BOOKS OF ORIGINAL ENTRY

Debit Note and Credit Note
Payment Voucher and Introduction to Books of Original Entry

By the end of the lesson, the learner should be able to:
Define debit note and credit note; Explain purposes of each document; Distinguish between debit and credit notes; Identify when each is used

Examination of sample notes; Comparison exercise between debit and credit notes; Role-play scenarios for issuing notes; Discussion on correction purposes

Sample debit notes, credit notes (red colored), comparison charts
Payment vouchers, petty cash vouchers, chart of all books of original entry

KLB Secondary Business Studies Form 4, Pages 4-5

SOURCE DOCUMENTS & BOOKS OF ORIGINAL ENTRY

Sales Journal
Posting from Sales 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

KLB Secondary Business Studies Form 4, Page 8

SOURCE DOCUMENTS & BOOKS OF ORIGINAL ENTRY

Sales Returns Journal and Posting
Purchases Journal

By the end of the lesson, the learner should be able to:
Explain purpose of sales returns journal; Prepare sales returns journal; Post to individual debtors accounts and returns inwards account; Complete double entry

Examination of credit notes; Preparation of sales returns journal; Complete posting exercise to both ledgers; Discussion on returns concept

Credit notes issued, sales returns journal format, ledger accounts
Purchase invoices, purchases journal format, sample credit purchase transactions

KLB Secondary Business Studies Form 4, Pages 12-14

SOURCE DOCUMENTS & BOOKS OF ORIGINAL ENTRY

Posting from Purchases Journal

By the end of the lesson, the learner should be able to:
Post individual amounts to creditors accounts; Post total to purchases account; Complete double entry from purchases journal; Use ledger folio references

Demonstration of posting to purchases ledger; Posting total to general ledger; Practical posting exercise; Review of double entry concept

Purchases journal, purchases ledger, general ledger accounts

KLB Secondary Business Studies Form 4, Pages 14-16

SOURCE DOCUMENTS & BOOKS OF ORIGINAL ENTRY

Purchases Returns 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

KLB Secondary Business Studies Form 4, Pages 16-19

SOURCE DOCUMENTS & BOOKS OF ORIGINAL ENTRY

Cash Receipts Journal

By the end of the lesson, the learner should be able to:
Prepare cash receipts journal; Record cash and cheque receipts; Include discount allowed column; Distinguish receipt sources

Introduction to cash receipts journal format; Recording various types of receipts; Practical exercise with cash sales and debtor payments; Discussion on discount columns

Cash receipts journal format, sample receipts, cash sales data

KLB Secondary Business Studies Form 4, Page 19

SOURCE DOCUMENTS & BOOKS OF ORIGINAL ENTRY

Posting from Cash Receipts Journal

By the end of the lesson, the learner should be able to:
Post totals to cash book and bank account; Post individual amounts to relevant accounts; Post discount totals to general ledger; Complete double entry

Demonstration of posting procedure; Practical exercise posting to cash book and ledgers; Discussion on relationship with cash book

Cash receipts journal, cash book format, general ledger accounts

KLB Secondary Business Studies Form 4, Pages 19-22

SOURCE DOCUMENTS & BOOKS OF ORIGINAL ENTRY

Cash Payments Journal and Posting

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

KLB Secondary Business Studies Form 4, Pages 22-25

SOURCE DOCUMENTS & BOOKS OF ORIGINAL ENTRY

The Petty Cash Book - Imprest System

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

KLB Secondary Business Studies Form 4, Page 25

SOURCE DOCUMENTS & BOOKS OF ORIGINAL ENTRY

Petty Cash Book Preparation and Analysis

By the end of the lesson, the learner should be able to:
Prepare petty cash book with analysis columns; Record petty cash transactions; Balance petty cash book; Apply imprest system practically

Step-by-step preparation of petty cash book; Practical exercise with analysis columns; Balancing and reimbursement calculations; Group work on petty cash scenarios

Petty cash transactions, analysis cash book format, calculator, petty cash vouchers

KLB Secondary Business Studies Form 4, Pages 25-30

SOURCE DOCUMENTS & BOOKS OF ORIGINAL ENTRY

Posting from Petty 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

KLB Secondary Business Studies Form 4, Pages 30-31

SOURCE DOCUMENTS & BOOKS OF ORIGINAL ENTRY

Analysis Cash Book

By the end of the lesson, the learner should be able to:
Record transactions in analysis cash book; Use analysis columns for receipts and payments; Apply to non-profit organizations; Post analysis totals

Preparation of analysis cash book for organizations; Discussion on analysis column selection; Practical exercise for football club; Posting totals to accounts

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

KLB Secondary Business Studies Form 4, Pages 31-35

SOURCE DOCUMENTS & BOOKS OF ORIGINAL ENTRY

General Journal - Introduction and Fixed Assets

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

KLB Secondary Business Studies Form 4, Pages 35-37

SOURCE DOCUMENTS & BOOKS OF ORIGINAL ENTRY

General Journal - Opening Entries

By the end of the lesson, the learner should be able to:
Prepare opening entries for new businesses; Record assets, liabilities and capital; Calculate capital as balancing figure; Apply double entry principles

Practical exercise preparing opening entries; Step-by-step calculation of capital; Discussion on starting new books of accounts; Review of double entry

Opening balance data, general journal format, calculator

KLB Secondary Business Studies Form 4, Pages 37-39

SOURCE DOCUMENTS & BOOKS OF ORIGINAL ENTRY

General Journal - Closing Entries and Error Corrections

By the end of the lesson, the learner should be able to:
Record closing entries and transfers; Correct errors through journal entries; Record miscellaneous transactions; Understand when to use general journal

Practice with closing entries; Error correction exercises; Discussion on transfer entries; Review of general journal applications

Sample closing entries, error correction scenarios, transfer examples

KLB Secondary Business Studies Form 4, Pages 39-40

SOURCE DOCUMENTS & BOOKS OF ORIGINAL ENTRY

Importance of Journals

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

KLB Secondary Business Studies Form 4, Page 40

FINANCIAL STATEMENTS

Introduction and Trading Period Concept
Determination of Profit or Loss

By the end of the lesson, the learner should be able to:
Explain concept of trading period; Define accounting period; Distinguish between different period lengths; Give examples of financial statements

Q/A on business performance measurement; Discussion on why businesses need to measure profits; Brainstorming on different accounting periods; Introduction to final accounts

Charts showing different accounting periods, sample financial statements
Calculators, simple profit calculation worksheets, examples from textbook

KLB Secondary Business Studies Form 4, Pages 53-54

FINANCIAL STATEMENTS

Cost of Goods Sold Calculations
Complex Profit and Loss Calculations

By the end of the lesson, the learner should be able to:
Calculate cost of goods sold with opening and closing stock; Apply adjustments for returns inwards and outwards; Include carriage inwards in calculations; Practice with multiple examples

Detailed explanation of cost of goods sold formula; Step-by-step calculation using Mr Mugambi's example; Practical exercises with stock movements

Calculators, cost of goods sold worksheets, stock calculation examples
Advanced calculation worksheets, complex business scenarios, group work materials

KLB Secondary Business Studies Form 4, Pages 54-56

FINANCIAL STATEMENTS

Introduction to Trading Account
Trading Account Preparation - Basic

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

KLB Secondary Business Studies Form 4, Pages 56-57

FINANCIAL STATEMENTS

Trading Account with Adjustments
Importance and Applications of Trading Account

By the end of the lesson, the learner should be able to:
Include returns inwards and outwards; Add carriage inwards to purchases; Prepare comprehensive trading accounts; Handle multiple adjustments

Advanced trading account preparation; Using Karanja's comprehensive example; Practice with all possible adjustments; Group exercises on complex accounts

Comprehensive trading account formats, advanced examples, adjustment worksheets
Case study materials, performance comparison charts, presentation guidelines

KLB Secondary Business Studies Form 4, Pages 58-60

FINANCIAL STATEMENTS

Net Profit and Net Loss Concepts

By the end of the lesson, the learner should be able to:
Define net profit and net loss; Distinguish between gross and net profit; Identify revenues and expenses; Calculate net profit using examples

Introduction to net profit concept; Explanation using Tabitha Akinyi's example; Discussion on difference between gross and net profit; Practical calculations

Net profit calculation sheets, revenue and expense examples, comparison charts

KLB Secondary Business Studies Form 4, Pages 60-61

FINANCIAL STATEMENTS

Revenue and Expense Classification

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

KLB Secondary Business Studies Form 4, Pages 61-62

FINANCIAL STATEMENTS

Profit and Loss Account Preparation

By the end of the lesson, the learner should be able to:
Prepare profit and loss accounts; Transfer gross profit correctly; Include all revenues and expenses; Balance the account properly

Step-by-step preparation using Tabitha Akinyi's data; Demonstration of proper format; Practice with Salim's example; Individual preparation exercises

Profit and loss account formats, demonstration materials, practice examples

KLB Secondary Business Studies Form 4, Pages 62-63

FINANCIAL STATEMENTS

Profit and Loss Account from Trial Balance

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

KLB Secondary Business Studies Form 4, Pages 63-64

FINANCIAL STATEMENTS

Combined Trading and Profit & Loss Account

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

KLB Secondary Business Studies Form 4, Pages 64-66

FINANCIAL STATEMENTS

Importance of Profit and Loss Account

By the end of the lesson, the learner should be able to:
Explain importance to various stakeholders; Understand management uses; Identify creditor and investor interests; Analyze decision-making applications

Discussion on stakeholder needs; Case studies on business decisions; Role-play exercise with different stakeholders; Analysis of real business scenarios

Stakeholder analysis sheets, case study materials, role-play guidelines

KLB Secondary Business Studies Form 4, Pages 61-62

FINANCIAL STATEMENTS

Balance Sheet Introduction

By the end of the lesson, the learner should be able to:
Define balance sheet; Understand balance sheet purpose; Identify assets, capital and liabilities; Explain accounting equation

Introduction to balance sheet concept; Explanation of accounting equation; Discussion on financial position; Basic balance sheet structure

Balance sheet formats, accounting equation demonstrations, basic examples

KLB Secondary Business Studies Form 4, Pages 66-67

FINANCIAL STATEMENTS

Balance Sheet Preparation

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

KLB Secondary Business Studies Form 4, Pages 66-67

FINANCIAL STATEMENTS

Types of Capital

By the end of the lesson, the learner should be able to:
Define different types of capital; Distinguish between owned and borrowed capital; Calculate working capital; Understand capital employed concept

Detailed explanation of capital types; Calculations using Upinde Traders example; Practical exercises on capital calculations; Group work on capital concepts

Capital calculation worksheets, Upinde Traders example, calculation exercises

KLB Secondary Business Studies Form 4, Pages 67-69

FINANCIAL STATEMENTS

Capital 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

KLB Secondary Business Studies Form 4, Pages 67-69

FINANCIAL STATEMENTS

Introduction to Financial Ratios

By the end of the lesson, the learner should be able to:
Define financial ratios; Explain importance of ratios; Introduce mark-up concept; Calculate basic mark-up

Introduction to ratio analysis; Explanation of mark-up concept; Basic mark-up calculations; Discussion on pricing strategies

Ratio calculation sheets, mark-up examples, pricing strategy materials

KLB Secondary Business Studies Form 4, Pages 69-71

FINANCIAL STATEMENTS

Mark-up Calculations and Applications

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

KLB Secondary Business Studies Form 4, Pages 69-72

FINANCIAL STATEMENTS

Margin Concept and Calculations

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

KLB Secondary Business Studies Form 4, Pages 71-74

FINANCIAL STATEMENTS

Relationship Between Mark-up and Margin

By the end of the lesson, the learner should be able to:
Understand mathematical relationship; Convert between mark-up and margin; Apply conversion formulas; Solve complex problems

Detailed explanation of relationship; Mathematical conversion methods; Practice with conversion exercises; Problem-solving applications

Conversion formula sheets, mathematical examples, complex problems

KLB Secondary Business Studies Form 4, Pages 74-75

MONEY & BANKING

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 money and banking. Explain barter trade concept. Outline merits and limitations of barter trade. Explain double coincidence of wants problem.

Brainstorming on money concepts. Role-play of barter trade scenarios. Group discussions on barter trade problems. Case study analysis of failed exchanges. Problem-solving on exchange challenges.

Real exchange items, Problem scenario cards, Case study materials, Charts
Different currencies, Genuine and sample notes, Magnifying glass, Regional currency samples

KLB Secondary Business Form 4, Pages 91-93

MONEY & BANKING

Functions of Money
Demand for Money and Supply of Money

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

KLB Secondary Business Form 4, Pages 95-96

MONEY & BANKING

Banking System and Development of Banking
Commercial Banks and Their Services

By the end of the lesson, the learner should be able to:
Identify elements of Kenya's banking system. Explain hierarchy of banks. Trace history of banking development from goldsmith banking to modern banking. Understand banking evolution.

Mapping exercise of Kenya's banking system. Historical timeline creation of banking development. Story-telling of goldsmith banking origins. Group research on banking categories. Banking evolution discussions.

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

KLB Secondary Business Form 4, Pages 99-101

MONEY & BANKING

Commercial Bank Services and Foreign Exchange
Types of Bank Accounts - Current and Savings

By the end of the lesson, the learner should be able to:
Explain foreign exchange services, advisory services, trustee services, and guarantor roles. Demonstrate how banks act as intermediaries between savers and borrowers. Calculate foreign exchange rates.

Foreign exchange rate calculations. Advisory service role-plays. Trustee service case studies. Guarantor service demonstrations. Intermediary function illustrations.

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

KLB Secondary Business Form 4, Pages 103-104

MONEY & BANKING

Fixed Deposit Accounts and Account Opening Requirements

By the end of the lesson, the learner should be able to:
Define fixed deposit accounts and their features. Calculate returns on fixed deposits. Identify requirements for opening all types of accounts. Practice account opening procedures.

Fixed deposit investment scenarios. Return calculation exercises. Mock account opening procedures. Document verification exercises. Form filling practice. Certificate examination.

Investment scenarios, Calculation sheets, Account forms, ID documents, Photographs, Certificate samples

KLB Secondary Business Form 4, Pages 109-111

MONEY & BANKING

Non-Banking Financial Institutions (NBFIs)

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

KLB Secondary Business Form 4, Pages 111-113

MONEY & BANKING

Micro-Finance, Agricultural Finance and Differences with Commercial Banks

By the end of the lesson, the learner should be able to:
Explain micro-finance and agricultural finance operations. Compare NBFIs with commercial banks in terms of services, target markets, and operations. Analyze their complementary roles.

Micro-finance loan simulation. Agricultural project financing exercises. Comparison table creation. Case study analysis of differences. Group discussions on operational contrasts.

Loan application forms, Agricultural projects, Comparison charts, Case studies, Analysis sheets

KLB Secondary Business Form 4, Pages 111-113

MONEY & BANKING

Central Bank Functions

By the end of the lesson, the learner should be able to:
Define Central Bank role in monetary control. Explain currency issuing, banker to banks, government banking, bank control, and clearing house functions. Demonstrate lender of last resort role.

Central Bank role-play activities. Currency management simulation. Inter-bank transaction examples. Government account simulation. Bank supervision demonstrations. Cheque clearing exercises.

Central Bank charts, Currency samples, Inter-bank forms, Government forms, Supervision checklists, Clearing examples

KLB Secondary Business Form 4, Pages 113-115

MONEY & BANKING

Monetary Policy Tools

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

KLB Secondary Business Form 4, Pages 115-117

MONEY & BANKING

Modern Banking Trends

By the end of the lesson, the learner should be able to:
Analyze evolution in account types and their features. Explain computer use in banking and its benefits. Detail ATM operations and their impact on banking. Assess technological improvements in banking.

Modern banking technology demonstration. ATM operation simulation. Computer banking examples. Account feature comparison. Technology impact discussions.

ATM cards, Computer demonstrations, Modern banking examples, Technology comparison charts

KLB Secondary Business Form 4, Pages 117-119

MONEY & BANKING

Modern Banking Trends

By the end of the lesson, the learner should be able to:
Explain mobile banking, e-banking, and M-pesa services. Detail credit facilities evolution and customer care improvements. Analyze mobile banks and Pesa Point services. Assess banking accessibility improvements.

Mobile money demonstrations. E-banking simulations. Digital payment exercises. Credit application processes. Customer service role-plays. Mobile bank simulation.

Mobile phones, E-banking platforms, Digital payment examples, Credit forms, Service scenarios, Mobile bank materials

KLB Secondary Business Form 4, Pages 119-121