FINANCIAL STATEMENTS

Introduction. Trading Period.

By the end of the lesson, the learner should be able to:


Give examples of financial statements.
Explain the concept of a trading period of a business.

Brainstorming, Q/A & Explanations.

text book

New Inventor K.L.B. BK IV. Pg. 54

FINANCIAL STATEMENTS

Gross Profit or Loss.

By the end of the lesson, the learner should be able to:
Determine the gross profit or loss of a business.

Go through worked examples using various approaches.
Supervised practice;
Group assignments.

charts

New Inventor K.L.B. BK IV. Pg. 55-57

FINANCIAL STATEMENTS

The Trading Account.
Net Profit or Loss.

By the end of the lesson, the learner should be able to:
Define the term trading account.

Illustrate trading accounts with worked examples.
Define the terms net profit net loss.
Determine net profit or loss.

Q/A to review the process of obtaining gross profit or loss.
Worked examples.
Supervised practice.
Assignment.

Brief discussion on distinction between gross and net profit / loss;
Worked examples;
Supervised practice;
Written exercise.

text book
chart

New Inventor K.L.B. BK IV. Pg. 57-60
New Inventor K.L.B. BK IV. Pg. 60-62

FINANCIAL STATEMENTS

Profit or loss account.

By the end of the lesson, the learner should be able to:
Prepare profit or loss accounts.

Detailed discussion;
Worked examples;
Supervised practice;
Written exercise.

text book

New Inventor K.L.B. BK IV. Pg. 62-67

FINANCIAL STATEMENTS

Profit and loss account from a trial balance.

By the end of the lesson, the learner should be able to:
Prepare profit or loss accounts from a trial balance.

Supervised practice;
Written exercise.

magazines,charts

New Inventor K.L.B. BK IV.  pg 62-67

FINANCIAL STATEMENTS

Profit and loss account from a trial balance.
The Balance Sheet.

By the end of the lesson, the learner should be able to:
Prepare profit or loss accounts from a trial balance.

Prepare a balance sheet after making adjustments on capital for specific items.

Supervised practice;
Written exercise.

Exposition of adjustments made on capital for net profit, drawings and additional capital.
Worked examples and Exercises.

magazines,charts

New Inventor K.L.B. BK IV.  pg 62-67
New Inventor K.L.B. BK IV. Pg. 67-68

FINANCIAL STATEMENTS

The Balance Sheet from a trial balance.

By the end of the lesson, the learner should be able to:
Prepare a balance sheet from a trial balance.

Q/A to review a trial balance;
Worked examples.

text book

New Inventor K.L.B. BK IV. Pg. 67-68

FINANCIAL STATEMENTS

Types of Capital.
Types of capital in a balance sheet.

By the end of the lesson, the learner should be able to:
Outline types of capital.
Illustrate types of capital with balance sheet.

Probing questions;
Teacher?s explanations.
Illustrative examples.
Written exercise.

text book

New Inventor K.L.B. BK IV. Pg. 68

FINANCIAL STATEMENTS

Basic financial ratios: - Mark-up.
- Margin.
Using mark-up or margin to prepare a trading account.

By the end of the lesson, the learner should be able to:
Define the term mark-up.
Explain why mark up is important in a business.
Determine business mark up.
Define the term margin.
Explain why margin is important in a business.
Determine business margin.
Work out the mark-up given the margin and vice-versa.

Q/A: definition of a ratio.
Teacher exposes and explains the new concepts then leads in an example.
Exposition of new concept;
Worked examples;
Written exercise.
Guided discovery on the relationship.
Illustrative examples.

chart,text book
text book

New Inventor K.L.B. BK IV. Pg. 70-71
New Inventor K.L.B. BK IV. Pg.72-74

FINANCIAL STATEMENTS

Current ratio or Working capital ratio.

By the end of the lesson, the learner should be able to:
Define the term current ratio or working capital ratio.
Explain importance of current ratio.
Calculate current ratio given various balances.

Exposition & Worked examples;
Discussion.

text book,chart

New Inventor K.L.B. BK IV. Pg. 75-76

FINANCIAL STATEMENTS

Rate of stock turnover.

By the end of the lesson, the learner should be able to:
Define the terms turn over and rate of stock turn over.
Calculate the rate of stock turn over.

Exposition, Worked examples & numericals
Discussion: implications of rate of stock turnover on a business.

chart

New Inventor K.L.B. BK IV. Pg. 76-78

FINANCIAL STATEMENTS

Stock turn-over and trading account.
Return on Capital.

By the end of the lesson, the learner should be able to:
Prepare the trading account given the rate of stock turn-over.
Define the term return on capital.
Calculate return on capital.
Explain implications of return on capital on a business.

Illustrative examples & supervised practice.
Brief discussion;
simple problem solving;
Assignment.

text book
chart, text book

New Inventor K.L.B. BK IV. Pg. 78
New Inventor K.L.B. BK IV. Pg. 79

FINANCIAL STATEMENTS

Acid test or quick ratio.

By the end of the lesson, the learner should be able to:
Determine the quick ratio given current assets, stock and current liabilities.

Exposition of new concepts;
Simple calculations.

Business Magazines.

New Inventor K.L.B. BK IV. Pg. 79-80

INFLATION

Introduction Consumer Price index
Simple and weighted price relatives.

By the end of the lesson, the learner should be able to:
Define the terms inflation and deflation.
Define the term CPI.
Compute CPI.
Compute the price index using simple average of price relatives.
Compute the price index using the weighted average method.

Guided discussion and computations.
Guided computations.
Supervised practice.

Newspaper cuttings & relevant magazines.
Price relative tables.

145-6

INFLATION

Types of inflation. Causes of demand- pull inflation.
Causes of cost- pull inflation.
Levels of inflation & Effects of inflation on the economy of a country.

By the end of the lesson, the learner should be able to:
outline types of inflation.
Explain the term demand-pull inflation.
Explain causes of demand ?pull inflation.
Explain the concept of cost-pull inflation.
Explain the causes of cost-pull inflation.
Highlight various levels of inflation.
Outline positive and negative effects of inflation.

Teacher exposes new concepts related to inflation types.
Expository and descriptive approaches.
Expository and descriptive approaches with probing questions.
Probing questions;
Discussion..

Newspaper cuttings & relevant magazines.

Pg. 147-8


Pg. 149-150
Pg. 152-3,

154-6

INFLATION
INTERNATIONAL TRADE

Controlling inflation.
Types of International Trade. Advantages and disadvantages of International Trade.

By the end of the lesson, the learner should be able to:
Identify some policies adopted by the govt to reduce or control inflation.
Distinguish bilateral trade from multilateral trade.
State advantages and disadvantages of International Trade.

Discussion on: control of money supply, control of demand, cost control.
Brainstorming and guided discussion.
Q/A & guided discussion

Newspaper cuttings & relevant magazines.

Pg. 156-8

INTERNATIONAL TRADE

Terms of International Trade.
Terms of trade among different countries.

By the end of the lesson, the learner should be able to:
Explain the concept terms of International Trade.
Distinguish favourable trade from unfavourable terms of trade.
Account for differences in terms of terms of trade among nations.

Probing questions, brief discussion.
Probing questions and guided discussion.

text book
newspaper

Pg. 164-6

INTERNATIONAL TRADE

Balance of Payments. (Current A/C)
Balance of Payments. (Capital A/C)

By the end of the lesson, the learner should be able to:
Define the term balance of payments.
Analyse components of balance of payments.
(Current A/C).


Cite examples of transactions that affect the Capital A/C.

Exposition of new concepts and detailed discussion.
Q/A: review types of capital.
Exposition of new concepts and detailed discussion.

text book
newspaper

Pg. Pg. 168-9
Pg. 169-170

INTERNATIONAL TRADE

Overall Balance of Payments.
The Official Settlement A/C.

By the end of the lesson, the learner should be able to:
Determine the overall balance of payments.
Define the Official Settlement A/C.

Q/A: review current A/C and capital A/C.
Illustrative examples.
Assignment.
Guided brief discussion.

newspaper
text book

Pg. 170

INTERNATIONAL TRADE

Disequilibrium of Balance of payments. Correction of balance of payment disequilibrium.

By the end of the lesson, the learner should be able to:
Identify causes of Disequilibrium of Balance of payments.

Outline methods of correcting of balance of payment disequilibrium.

Exposition of new concepts & explanations;
Discussion.

text book

Pg. 172-5

INTERNATIONAL TRADE

Terms of sale in international trade.
Documents used in international trade.

By the end of the lesson, the learner should be able to:
Identify common terms of sale in international trade.
Identify major documents used in international trade.

Exposition & explanations;
Probing questions;
Discussion.
Give examples of relevant documents.
Give examples of relevant documents.

text book

Pg. 175
Pg. 176-7

INTERNATIONAL TRADE

IMF, ADF and World bank.

By the end of the lesson, the learner should be able to:
State objectives of IMF, ADF and World bank..
Trace a background to the growth of specific
development funds.

Brain storming;
Discussion.

Newspaper cuttings & relevant magazines.

Pg. 179-180