FINANCIAL STATEMENTS

Introduction and Trading Period Concept

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

KLB Secondary Business Studies Form 4, Pages 53-54

FINANCIAL STATEMENTS

Determination of Profit or Loss
Cost of Goods Sold Calculations

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

Step-by-step calculation of gross profit; Practical exercises with simple examples; Discussion on Mrs Matendo's example; Introduction to adjustments needed

Calculators, simple profit calculation worksheets, examples from textbook
Calculators, cost of goods sold worksheets, stock calculation examples

KLB Secondary Business Studies Form 4, Pages 54-56

FINANCIAL STATEMENTS

Complex Profit and Loss Calculations
Introduction to Trading Account

By the end of the lesson, the learner should be able to:
Handle complex scenarios with all adjustments; Calculate gross profit with returns and carriage; Apply net sales calculations; Work with realistic business examples

Advanced calculations using Karanja's example; Practical exercises with multiple adjustments; Group work on complex scenarios; Error detection exercises

Advanced calculation worksheets, complex business scenarios, group work materials
Trading account format sheets, demonstration materials, simple examples

KLB Secondary Business Studies Form 4, Pages 54-56

FINANCIAL STATEMENTS

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:
Prepare trading account with opening and closing stock; Include purchases and sales correctly; Apply proper account format; Balance the account correctly
Define net profit and net loss; Distinguish between gross and net profit; Identify revenues and expenses; Calculate net profit using examples

Practical preparation using Mr Mugambi's example; Step-by-step demonstration of account balancing; Practice exercises with stock adjustments
Introduction to net profit concept; Explanation using Tabitha Akinyi's example; Discussion on difference between gross and net profit; Practical calculations

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 57-58
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
Combined Trading and Profit & Loss Account

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

KLB Secondary Business Studies Form 4, Pages 63-64

FINANCIAL STATEMENTS

Importance of Profit and Loss Account
Balance Sheet Introduction

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
Define balance sheet; Understand balance sheet purpose; Identify assets, capital and liabilities; Explain accounting equation

Discussion on stakeholder needs; Case studies on business decisions; Role-play exercise with different stakeholders; Analysis of real business scenarios
Introduction to balance sheet concept; Explanation of accounting equation; Discussion on financial position; Basic balance sheet structure

Stakeholder analysis sheets, case study materials, role-play guidelines
Balance sheet formats, accounting equation demonstrations, basic examples

KLB Secondary Business Studies Form 4, Pages 61-62
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
Mark-up Calculations and Applications
Margin Concept and Calculations

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
Define margin; Distinguish between mark-up and margin; Calculate margin using different methods; Apply margin in business decisions

Introduction to ratio analysis; Explanation of mark-up concept; Basic mark-up calculations; Discussion on pricing strategies
Introduction to margin concept; Comparison with mark-up; Practical calculations; Using Waithera's example for margin applications

Ratio calculation sheets, mark-up examples, pricing strategy materials
Mark-up calculation worksheets, Kiambu Traders example, pricing problems
Margin calculation sheets, comparison charts, Waithera's example

KLB Secondary Business Studies Form 4, Pages 69-71
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

FINANCIAL STATEMENTS

Trading Account Preparation Using Ratios

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

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
Stock Turnover Applications

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
Use stock turnover in trading accounts; Handle incomplete records scenarios; Apply Maendeleo Traders example; Solve complex problems

Explanation of stock turnover concept; Calculations using Upendo Traders; Practical applications; Using turnover for incomplete records
Advanced applications using Maendeleo Traders; Incomplete records problem-solving; Complex scenario analysis; Individual practice

Stock turnover worksheets, Upendo Traders example, practical applications
Advanced application sheets, Maendeleo Traders example, complex scenarios

KLB Secondary Business Studies Form 4, Pages 76-78

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

Importance of Financial Ratios

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

KLB Secondary Business Studies Form 4, Page 80

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
Banking System and Development of Banking
Commercial Banks and Their Services
Commercial Bank Services and Foreign Exchange

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.
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.

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.
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.

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

KLB Secondary Business Form 4, Pages 95-96
KLB Secondary Business Form 4, Pages 99-101

MONEY & BANKING

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:
Define and compare current and savings accounts. Explain characteristics, advantages and disadvantages of each. Demonstrate account operations and requirements.

Current account opening simulation. Savings account operation practice. Cheque writing exercises. Interest calculation for savings. ATM usage demonstrations. Account comparison activities.

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 104-109

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

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.
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.

Central Bank role-play activities. Currency management simulation. Inter-bank transaction examples. Government account simulation. Bank supervision demonstrations. Cheque clearing exercises.
Monetary policy simulation exercises. Interest rate effect analysis. Securities trading demonstrations. Cash ratio calculations. Credit control scenarios. Policy tool comparison activities.

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

KLB Secondary Business Form 4, Pages 113-115
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
Mobile phones, E-banking platforms, Digital payment examples, Credit forms, Service scenarios, Mobile bank materials

KLB Secondary Business Form 4, Pages 117-119

PUBLIC FINANCE

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 public finance. Explain the concept of public finance. Outline the main purposes of public finance. Analyze the role of government in providing essential services.

Q/A on government services students use daily; Group discussion on why government needs money; Brainstorming on public goods vs private goods; List making of local government projects students have seen.

Chalkboard, textbook, exercise books, pens, local examples from students' experience.
Chalkboard, textbook, exercise books, chalk, students' prior knowledge and experiences.

KLB Secondary Business Studies Form 4, Pages 124-125

PUBLIC FINANCE

Purpose of Public Finance - Economic Control and Development
Sources of Public Finance - Overview and Classification

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.

KLB Secondary Business Studies Form 4, Pages 124-125

PUBLIC FINANCE

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:
Define government borrowing. Distinguish between internal and external borrowing. Explain bilateral and multilateral borrowing. Analyze the concept of national debt.
Outline principles governing public expenditure. Explain the concept of sanctions in public spending. Analyze the principle of maximum social benefit. Examine flexibility and economy in public expenditure.

Detailed teacher explanation with chalkboard illustrations; Discussion on Kenya borrowing from different countries; Students share what they know about loans; Simple calculations of debt examples.
Teacher exposition on government spending rules; Discussion on why parliament must approve spending; Students give examples of wasteful government spending they have heard about; Q/A on benefits of government projects.

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 125-127
KLB Secondary Business Studies Form 4, Pages 128-129

PUBLIC FINANCE

Classification of Taxes - By Structure

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.

KLB Secondary Business Studies Form 4, Pages 132-135

PUBLIC FINANCE

Classification of Taxes - Direct vs Indirect
Merits and Demerits of Direct and Indirect Taxes

By the end of the lesson, the learner should be able to:
Distinguish between direct and indirect taxes. Explain impact and incidence of taxation. Identify examples of direct taxes (income tax, corporation tax, etc.). Analyze examples of indirect taxes (VAT, excise duty, etc.).

Teacher exposition with chalkboard examples; Discussion on taxes deducted from salaries vs taxes on goods; Students identify taxes they see in shops; Group work classifying different taxes they know.

Chalkboard, textbook, exercise books, chalk, students' knowledge of prices and salary deductions.
Chalkboard, textbook, exercise books, chalk, student experiences and observations, review questions.

KLB Secondary Business Studies Form 4, Pages 135-141