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

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

KLB Secondary Business Studies Form 4, Pages 6-7

SOURCE DOCUMENTS & BOOKS OF ORIGINAL ENTRY

Posting from Sales Journal
Sales Returns Journal and Posting
Purchases Journal

By the end of the lesson, the learner should be able to:
Transfer entries from sales journal to ledgers; Post individual amounts to debtors accounts; Post total to sales account; Use proper folio references

Demonstration of complete posting process; Practical exercise posting to sales ledger and general ledger; Discussion on double entry completion

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

KLB Secondary Business Studies Form 4, Pages 8-12

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
Posting from 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
Cash receipts journal, cash book format, general ledger accounts

KLB Secondary Business Studies Form 4, Page 19

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
General Journal - Introduction and Fixed Assets

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
General journal format, fixed asset transaction examples, calculator for gains/losses

KLB Secondary Business Studies Form 4, Pages 31-35

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
MONEY & BANKING

Importance of Journals
Introduction, Barter Trade and its Limitations

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

KLB Secondary Business Studies Form 4, Page 40

MONEY & BANKING

Money System and Characteristics of Money
Functions 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

KLB Secondary Business Form 4, Pages 93-95

MONEY & BANKING

Demand for Money and Supply of Money
Banking System and Development of Banking

By the end of the lesson, the learner should be able to:
Define liquidity preference. Explain transaction, precautionary and speculative motives for holding money. Define supply of money and identify its components. Analyze factors affecting money demand and supply.

Analysis of personal spending patterns. Case studies on emergency savings and speculation. Discussion on Central Bank role in money supply. Money circulation data analysis. Income and spending relationship exercises.

Budget sheets, Emergency scenarios, Investment charts, Money supply statistics, Central Bank reports
Banking system charts, Historical timeline materials, Bank category lists, Banking evolution charts

KLB Secondary Business Form 4, Pages 96-99

MONEY & BANKING

Commercial Banks and Their Services
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:
Define commercial banks and their profit methods. Explain accepting deposits, lending money, and safekeeping services. Detail money transfer facilities including standing orders and telegraphic transfers.

Mock bank operation setup. Deposit and withdrawal simulations. Practical money transfer exercises. Standing order setup simulation. Safety deposit demonstration.

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

KLB Secondary Business Form 4, Pages 100-103

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
Central Bank Functions

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

KLB Secondary Business Form 4, Pages 111-113

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
PUBLIC FINANCE

Modern Banking Trends
Introduction to Public Finance and its Purpose

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
Chalkboard, textbook, exercise books, pens, local examples from students' experience.

KLB Secondary Business Form 4, Pages 119-121

PUBLIC FINANCE

Purpose of Public Finance - Provision of Essential Services
Purpose of Public Finance - Economic Control and Development

By the end of the lesson, the learner should be able to:
Identify essential goods and services provided by government. Explain why private sector cannot adequately provide certain services. Analyze the concept of public interest. Evaluate the importance of government intervention in service provision.

Teacher exposition of new concepts; Group work identifying public services in their locality; Discussion comparing public schools vs private schools; Students share experiences of using public facilities.

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

KLB Secondary Business Studies Form 4, Pages 124-125

PUBLIC FINANCE

Sources of Public Finance - Overview and Classification
Government Borrowing - Internal and External

By the end of the lesson, the learner should be able to:
Identify various sources of public finance. Distinguish between internal and external sources. Classify government revenue sources. Analyze the importance of diversified revenue sources.

Brainstorming session on where government gets money; Teacher exposition using chalkboard diagrams; Group work categorizing revenue sources; Students discuss challenges in tax collection.

Chalkboard, textbook, exercise books, chalk, students' observations from daily life.
Chalkboard, textbook, exercise books, chalk, basic calculator (if available), student knowledge.

KLB Secondary Business Studies Form 4, Pages 125-127

PUBLIC FINANCE

Types of Debt and Government Expenditure
Principles of Public Expenditure
Introduction to Tax and Taxation

By the end of the lesson, the learner should be able to:
Differentiate between reproductive and dead-weight debt. Classify government expenditure into categories. Explain recurrent vs development expenditure. Define transfer payments with examples.

Q/A review of previous lesson; Teacher uses local examples of irrigation projects vs salary payments; Group work categorizing different government spending; Students list development projects they have seen.

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.

KLB Secondary Business Studies Form 4, Pages 127-128

PUBLIC FINANCE

Principles of Taxation

By the end of the lesson, the learner should be able to:
Explain the characteristics of a good tax system. Analyze equity in taxation (horizontal and vertical). Examine certainty, convenience and economy in taxation. Evaluate flexibility and simplicity in tax systems.

Detailed teacher exposition using chalkboard; Group discussions on fairness in taxation; Students discuss easy vs difficult ways to pay tax; Examples of how shop prices change with VAT changes.

Chalkboard, textbook, exercise books, chalk, students' market experiences and price observations.

KLB Secondary Business Studies Form 4, Pages 131-132

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

INFLATION

Introduction to Inflation and Deflation
Consumer Price Index (CPI) Concepts

By the end of the lesson, the learner should be able to:
Define inflation as persistent rise in general price levels. Distinguish between inflation and deflation. Explain impact on purchasing power and money value. Analyze real-world examples of inflation.

Brainstorming on price changes students have observed. Comparison of prices over different time periods. Case studies on countries experiencing inflation. Discussion on purchasing power changes with price examples.

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 Form 4, Pages 144-145

INFLATION

CPI Calculation - Simple Average Method
CPI Calculation - Weighted Average Method
Types of Inflation and Demand-Pull 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

KLB Secondary Business Form 4, Pages 146-147

INFLATION

More Causes of Demand-Pull Inflation
Cost-Push Inflation and Its Causes

By the end of the lesson, the learner should be able to:
Explain additional causes: general shortages, increased consumer expenditure, population growth effects. Analyze expectation-driven demand increases. Demonstrate how shortages pull prices upward.

Shortage simulation exercises creating artificial scarcity. Analysis of population growth impact on demand. Expectation-driven buying behavior case studies. Consumer expenditure pattern analysis and price impact.

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

KLB Secondary Business Form 4, Pages 149-150

INFLATION

More Cost-Push Causes and Subsidy Effects
Levels of Inflation

By the end of the lesson, the learner should be able to:
Analyze input cost increases other than labor. Explain reduction in subsidies impact. Demonstrate profit-push and tax-push inflation. Compare various cost-push mechanisms.

Input cost increase simulations using manufacturing examples. Subsidy removal impact analysis on prices. Profit margin increase exercises and price effects. Comprehensive comparison of all cost-push factors.

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 151-152

INFLATION

Positive Effects of Inflation

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

KLB Secondary Business Form 4, Pages 153-154

INFLATION

Negative Effects of Inflation

By the end of the lesson, the learner should be able to:
Explain reduction in profits due to decreased sales volume. Analyze time wastage in price shopping. Demonstrate conflicts between employers and employees. Show decline in living standards.

Sales volume decline simulation during price increases. Time cost analysis of shopping around for prices. Employer-employee wage negotiation role-plays. Living standard decline calculations with fixed incomes.

Sales simulation materials, Time cost analysis sheets, Role-play scenarios, Living standard calculation examples, Wage negotiation materials

KLB Secondary Business Form 4, Pages 154-155

INFLATION

More Negative Effects and Economic Impact

By the end of the lesson, the learner should be able to:
Analyze losses to creditors and retardation of economic growth. Explain adverse effects on balance of payments. Demonstrate loss of confidence in monetary system. Show discouragement of savings.

Creditor loss calculations in real terms. Economic growth impact analysis with case studies. Balance of payments deterioration examples. Monetary system confidence erosion scenarios. Savings discouragement analysis.

Creditor loss examples, Economic growth data, Balance of payments charts, Monetary confidence indicators, Savings impact studies

KLB Secondary Business Form 4, Pages 155-156

INFLATION

Controlling Inflation - Monetary Policy Tools
More Monetary Policy Tools and Fiscal Policy

By the end of the lesson, the learner should be able to:
Define monetary policy for inflation control. Explain Central Bank tools: bank rate increases, open market operations. Demonstrate cash ratio and compulsory deposits effects.

Monetary policy simulation with Central Bank role-play. Interest rate impact exercises on borrowing and spending. Open market operations demonstrations. Cash ratio calculation and credit impact analysis.

Central Bank simulation materials, Interest rate impact charts, Securities trading examples, Cash ratio calculation sheets
Credit control scenarios, Directive examples, Government spending data, Tax policy impact charts, Fiscal policy simulation materials

KLB Secondary Business Form 4, Pages 156-157

INFLATION

Fiscal Policy Measures and Production Solutions

By the end of the lesson, the learner should be able to:
Explain reducing taxes on production to control cost-push inflation. Demonstrate subsidizing production effects. Show government production of scarce commodities. Analyze comprehensive fiscal policy approaches.

Production tax reduction impact analysis. Subsidy effect calculations on final prices. Government production case studies. Comprehensive fiscal policy design exercises for inflation control.

Production tax examples, Subsidy calculation sheets, Government production cases, Policy design templates, Impact analysis charts

KLB Secondary Business Form 4, Pages 157-158

INFLATION

Statutory Measures for Inflation Control
Export Controls and Comprehensive Control Strategies

By the end of the lesson, the learner should be able to:
Explain wage and salary controls to prevent cost-push inflation. Demonstrate price control mechanisms. Detail import restriction methods. Analyze hire purchase and credit term controls.

Wage control policy analysis and effects. Price control implementation exercises. Import restriction case studies and alternatives. Credit term control simulations and consumer impact.

Wage control examples, Price control policies, Import restriction data, Credit control scenarios, Policy implementation cases
Export control examples, Multi-strategy templates, Historical effectiveness data, Strategy design sheets, Presentation materials

KLB Secondary Business Form 4, Pages 158-159