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

By the end of the lesson, the learner should be able to:
Identify features of payment vouchers; Explain vouching process; Define books of original entry; List the various subsidiary books

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

Payment vouchers, petty cash vouchers, chart of all books of original entry
Sales invoices, sales journal format, sample credit sales transactions
Sales journal, sales ledger accounts, general ledger format, posting examples

KLB Secondary Business Studies Form 4, Pages 6-7

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
Purchases Returns Journal and Posting

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
Credit notes received, purchases returns journal format, ledger accounts

KLB Secondary Business Studies Form 4, Pages 14-16

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
Petty Cash Book Preparation and Analysis

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

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

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

KLB Secondary Business Studies Form 4, Page 25

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
Importance of Journals

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
Discussion prompts, case study materials, summary charts

KLB Secondary Business Studies Form 4, Pages 39-40

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
Introduction to Trading Account

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
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

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

Practical preparation using Mr Mugambi's example; Step-by-step demonstration of account balancing; Practice exercises with stock adjustments

Trading account formats, practical examples, balancing demonstrations
Comprehensive trading account formats, advanced examples, adjustment worksheets

KLB Secondary Business Studies Form 4, Pages 57-58

FINANCIAL STATEMENTS

Importance and Applications of Trading Account
Net Profit and Net Loss Concepts

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

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

Case study materials, performance comparison charts, presentation guidelines
Net profit calculation sheets, revenue and expense examples, comparison charts

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

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
Trial balance examples, extraction worksheets, complex scenarios

KLB Secondary Business Studies Form 4, Pages 62-63

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
Types of Capital

By the end of the lesson, the learner should be able to:
Prepare balance sheet from trial balance; Make adjustments for net profit and drawings; Apply proper balance sheet format; Ensure balancing totals

Practical preparation using Kipande Traders; Step-by-step balance sheet construction; Adjustments for profit and drawings; Balancing exercises

Balance sheet preparation sheets, adjustment examples, balancing demonstrations
Capital calculation worksheets, Upinde Traders example, calculation exercises

KLB Secondary Business Studies Form 4, Pages 66-67

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
MONEY & BANKING
MONEY & BANKING

Relationship Between Mark-up and Margin
Introduction, Barter Trade and its Limitations
Money System and Characteristics of Money

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

KLB Secondary Business Studies Form 4, Pages 74-75

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
Commercial Bank Services and Foreign Exchange

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
Exchange rate charts, Advisory scenario cards, Trustee examples, Guarantor forms, Intermediary flow charts

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.

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
Policy charts, Interest rate examples, Securities samples, Calculation sheets, Control scenarios, Comparison tables

KLB Secondary Business Form 4, Pages 113-115

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