SOURCE DOCUMENTS & BOOKS OF ORIGINAL ENTRY

Introduction and Cash Receipts

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

KLB Secondary Business Studies Form 4, Pages 1-3

SOURCE DOCUMENTS & BOOKS OF ORIGINAL ENTRY

Invoice
Debit Note and Credit Note

By the end of the lesson, the learner should be able to:
Outline details of an invoice; Identify all components of an invoice; Explain terms like E&OE, trade discount, cash discount; Calculate discount amounts

Detailed examination of sample invoice; Analysis of invoice components; Practical calculation of trade and cash discounts; Group discussion on invoice terms

Sample invoices, calculators, discount calculation worksheets
Sample debit notes, credit notes (red colored), comparison charts

KLB Secondary Business Studies Form 4, Pages 3-4

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
Explain purpose of sales returns journal; Prepare sales returns journal; Post to individual debtors accounts and returns inwards account; Complete double entry

Examination of payment vouchers; Practical voucher completion; Introduction to subsidiary books concept; Overview of all journal types
Examination of credit notes; Preparation of sales returns journal; Complete posting exercise to both ledgers; Discussion on returns concept

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
KLB Secondary Business Studies Form 4, Pages 12-14

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

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
Prepare cash payments journal; Record cash and cheque payments; Include discount received column; Post to relevant ledger accounts

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

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

KLB Secondary Business Studies Form 4, Pages 19-22
KLB Secondary Business Studies Form 4, Pages 22-25

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
General Journal - Introduction and Fixed Assets
General Journal - Opening Entries

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
Prepare opening entries for new businesses; Record assets, liabilities and capital; Calculate capital as balancing figure; Apply double entry principles

Preparation of analysis cash book for organizations; Discussion on analysis column selection; Practical exercise for football club; Posting totals to accounts
Practical exercise preparing opening entries; Step-by-step calculation of capital; Discussion on starting new books of accounts; Review of double entry

Analysis cash book format, sample transactions for club/society, ledger accounts
General journal format, fixed asset transaction examples, calculator for gains/losses
Opening balance data, general journal format, calculator

KLB Secondary Business Studies Form 4, Pages 31-35
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
FINANCIAL STATEMENTS

Importance of Journals
Introduction and Trading Period Concept

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

KLB Secondary Business Studies Form 4, Page 40

FINANCIAL STATEMENTS

Determination of Profit or Loss
Cost of Goods Sold Calculations
Complex Profit and Loss Calculations
Introduction to Trading Account
Trading Account Preparation - Basic

By the end of the lesson, the learner should be able to:
Define gross profit and gross loss; Calculate gross profit using basic formula; Explain the relationship between selling price and cost; Understand returns and carriage concepts
Define trading account; Identify components of trading account; Explain purpose of trading account; Prepare simple trading accounts

Step-by-step calculation of gross profit; Practical exercises with simple examples; Discussion on Mrs Matendo's example; Introduction to adjustments needed
Introduction to trading account format; Demonstration using Mrs Matendo's data; Step-by-step preparation of trading account; Practice with simple examples

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

KLB Secondary Business Studies Form 4, Pages 54-56
KLB Secondary Business Studies Form 4, Pages 56-57

FINANCIAL STATEMENTS

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

KLB Secondary Business Studies Form 4, Pages 58-60

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
Profit and Loss Account from Trial Balance
Combined Trading and Profit & Loss Account

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
Prepare profit and loss account from trial balance; Identify relevant items from trial balance; Calculate net profit or loss; Handle complex trial balances

Step-by-step preparation using Tabitha Akinyi's data; Demonstration of proper format; Practice with Salim's example; Individual preparation exercises
Using Maneno's trial balance example; Step-by-step extraction of relevant items; Practice with complex trial balances; Error detection exercises

Profit and loss account formats, demonstration materials, practice examples
Trial balance examples, extraction worksheets, complex scenarios
Complete final account formats, comprehensive examples, practice materials

KLB Secondary Business Studies Form 4, Pages 62-63
KLB Secondary Business Studies Form 4, Pages 63-64

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
Types of Capital
Capital Calculations and Applications

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
Define different types of capital; Distinguish between owned and borrowed capital; Calculate working capital; Understand capital employed concept

Practical preparation using Kipande Traders; Step-by-step balance sheet construction; Adjustments for profit and drawings; Balancing exercises
Detailed explanation of capital types; Calculations using Upinde Traders example; Practical exercises on capital calculations; Group work on capital concepts

Balance sheet preparation sheets, adjustment examples, balancing demonstrations
Capital calculation worksheets, Upinde Traders example, calculation exercises
Advanced calculation sheets, multiple scenarios, problem-solving materials

KLB Secondary Business Studies Form 4, Pages 66-67
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
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
Use mark-up to prepare trading accounts; Apply margin in account preparation; Handle incomplete records; Solve complex scenarios

Introduction to margin concept; Comparison with mark-up; Practical calculations; Using Waithera's example for margin applications
Practical preparation using mark-up and margin; Incomplete records scenarios; Advanced problem-solving; Individual and group exercises

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
KLB Secondary Business Studies Form 4, Pages 72-74

FINANCIAL STATEMENTS

Current Ratio and Working Capital Ratio

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

KLB Secondary Business Studies Form 4, Pages 75-76

FINANCIAL STATEMENTS

Rate of Stock Turnover

By the end of the lesson, the learner should be able to:
Define stock turnover; Calculate rate of stock turnover; Interpret turnover results; Apply in trading account preparation

Explanation of stock turnover concept; Calculations using Upendo Traders; Practical applications; Using turnover for incomplete records

Stock turnover worksheets, Upendo Traders example, practical applications

KLB Secondary Business Studies Form 4, Pages 76-78

FINANCIAL STATEMENTS

Stock Turnover Applications
Return on Capital
Acid Test and Quick Ratio

By the end of the lesson, the learner should be able to:
Use stock turnover in trading accounts; Handle incomplete records scenarios; Apply Maendeleo Traders example; Solve complex problems
Define acid test ratio; Calculate quick ratio; Distinguish from current ratio; Interpret liquidity position

Advanced applications using Maendeleo Traders; Incomplete records problem-solving; Complex scenario analysis; Individual practice
Explanation of acid test concept; Calculations using Nakura Stores; Comparison with current ratio; Liquidity analysis

Advanced application sheets, Maendeleo Traders example, complex scenarios
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 76-78
KLB Secondary Business Studies Form 4, Pages 79-80

FINANCIAL STATEMENTS
MONEY & BANKING

Importance of Financial Ratios
Introduction, Barter Trade and its Limitations

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
Real exchange items, Problem scenario cards, Case study materials, Charts

KLB Secondary Business Studies Form 4, Page 80

MONEY & BANKING

Money System and Characteristics of Money
Functions of Money
Demand for Money and Supply of Money

By the end of the lesson, the learner should be able to:
Define money as medium of exchange. Explain evolution from barter to money. Identify and explain all characteristics of money (acceptability, divisibility, portability, durability, stability, homogeneity, cognisability, scarcity, malleability).

Exposition of money evolution. Hands-on examination of currency samples. Testing recognition of genuine vs fake money. Practical demonstration of money characteristics. Group analysis of characteristic importance.

Different currencies, Genuine and sample notes, Magnifying glass, Regional currency samples
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 93-95

MONEY & BANKING

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:
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.
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.

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

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 99-101
KLB Secondary Business Form 4, Pages 103-104

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
Monetary Policy Tools
Modern Banking Trends

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.
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.

Central Bank role-play activities. Currency management simulation. Inter-bank transaction examples. Government account simulation. Bank supervision demonstrations. Cheque clearing exercises.
Modern banking technology demonstration. ATM operation simulation. Computer banking examples. Account feature comparison. Technology impact discussions.

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

KLB Secondary Business Form 4, Pages 113-115
KLB Secondary Business Form 4, Pages 117-119