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.

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

Illustrate trading accounts with worked examples.

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

text book

New Inventor K.L.B. BK IV. Pg. 57-60

FINANCIAL STATEMENTS

Net Profit or Loss.
Profit or loss account.

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

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

chart
text book

New Inventor K.L.B. BK IV. Pg. 60-62

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

The Balance Sheet.
The Balance Sheet from a trial balance.

By the end of the lesson, the learner should be able to:
Prepare a balance sheet after making adjustments on capital for specific items.
Prepare a balance sheet from a trial balance.

Exposition of adjustments made on capital for net profit, drawings and additional capital.
Worked examples and Exercises.
Q/A to review a trial balance;
Worked examples.

charts
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.

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.

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.

chart,text book
text book

New Inventor K.L.B. BK IV. Pg. 70-71

FINANCIAL STATEMENTS

Using mark-up or margin to prepare a trading account.
Current ratio or Working capital ratio.
Rate of stock turnover.

By the end of the lesson, the learner should be able to:
Work out the mark-up given the margin and vice-versa.
Define the term current ratio or working capital ratio.
Explain importance of current ratio.
Calculate current ratio given various balances.
Define the terms turn over and rate of stock turn over.
Calculate the rate of stock turn over.

Guided discovery on the relationship.
Illustrative examples.
Exposition & Worked examples;
Discussion.
Exposition, Worked examples & numericals
Discussion: implications of rate of stock turnover on a business.

text book
text book,chart
chart

New Inventor K.L.B. BK IV. Pg.72-74

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

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

MONEY & BANKING

Introduction. Barter trade.
Money system Characteristics of money.

By the end of the lesson, the learner should be able to:
Explain the concepts of money and banking.
Describe merits and demerits of barter trade.
State characteristics of money.

Brain storming;
Brief discussion.
Brainstorming and superficial discussion.

text book

New Inventor K.L.B. BK IV. Pg 91-94

MONEY & BANKING

Functions of money.
Demand for money (liquidity preference)
Supply of money. Banking System.

By the end of the lesson, the learner should be able to:
Explain major functions of money.
Define the term demand for money.
Explain the motives that influence the desire to keep money instead of other assets.
Define the term supply of money.
Identify various monetary items that are in circulation in an economy.
Identify elements of banking system in Kenya.

Probing questions;
Discussion.
Q/A: review the term demand.
Exposition and probing questions.
Q/A: review the term supply.
Expository approach
Analyse the hierarchy of banks in Kenya.
Give examples of banks in each category.

chart
text book
chart,text book

New Inventor K.L.B. BK IV. Pg. 96-97

MONEY & BANKING

Development of Banking. Commercial Banks.
Services offered by commercial banks.
Non-banking financial institutions.

By the end of the lesson, the learner should be able to:
Outline a brief history on development of banking.
Identify methods employed by commercial banks to generate profits.
Identify services offered by commercial banks.
Describe other services offered by commercial banks.
Cite examples of non-banking financial institutions.
State functions of non-banking financial institutions.
Outline differences between commercial bank and NBFI.

Exposition and probing questions;
Detailed discussion.
Discussion on lending money, safekeeping of valuable items, money transfer facilities, e.g. standing order, cheques, savings and current accounts, time deposits.
Exposition;
Brief discussion;
Probing questions.

text book

New Inventor K.L.B. BK IV. Pg. 101-103

MONEY & BANKING

Functions of the Central bank.
Trends in banking.

By the end of the lesson, the learner should be able to:
Identify objectives and functions of the Central Bank.
Describe banking policies on types of account, use of computers, ,ATMs, m-banking, Mpesa,
e-banking.

Exposition of new ideas;
Guided discussion.
Brain storming;
Discussion.

text book
chart,text book

New Inventor K.L.B. BK IV. Pg 113-8

PUBLIC FINANCE

Purpose of public finance. Sources of public finance.
External borrowing.
Government expenditure. Principles of public expenditure.

By the end of the lesson, the learner should be able to:
Differentiate between internal and external borrowing.
Differentiate between reproductive debt and dead weight debt.
Identify types of govt?s expenditure.
Differentiate between recurrent and development expenditure.
Outline principles of public expenditure.

Brainstorming.
Brief discussion.
Exposition;
Discussion.
Exposition & discussion.

Business Magazines.
text book
Newspaper cuttings & relevant magazines.

New Inventor K.L.B. BK IV. Pg.125-7

PUBLIC FINANCE

Taxation.
Principles of taxation.
Impact and incidence of tax. Classification of taxes on basis of structure.

By the end of the lesson, the learner should be able to:
Define the term taxation.
Identify methods that the give reasons for taxation.
Explain basic principles of taxation.
Differentiate between impact and incidence of tax.
Classify taxes according to structure.
State merits and demerits of taxing people according to structure.

Exposition;
Explanations.
Exposition of new ideas;
Give examples and explanations.

Newspaper cuttings & relevant magazines.
text book

New Inventor K.L.B. BK IV. Pg.131

PUBLIC FINANCE

Classification of taxes on basis of impact on the tax payer. - Direct tax.
Classification of taxes on basis of impact on the tax payer. - Indirect tax.
Topic summary / review

By the end of the lesson, the learner should be able to:
Classify taxes according to impact on the taxpayer.
State and explain merits and demerits of direct tax.
State merits and demerits of Indirect tax.
Tackle review question,

Guided discussion on direct taxes.
Q/A and guided discussion.
Problem solving.Revision;

text book

Pg. 135-6

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

INFLATION
INTERNATIONAL TRADE

Controlling inflation.
Balance of Payments. (Current A/C)

By the end of the lesson, the learner should be able to:
Identify some policies adopted by the govt to reduce or control inflation.
Define the term balance of payments.
Analyse components of balance of payments.
(Current A/C).

Discussion on: control of money supply, control of demand, cost control.
Exposition of new concepts and detailed discussion.

text book

Pg. 156-8

INTERNATIONAL TRADE

Balance of Payments. (Capital A/C)
Overall Balance of Payments.
The Official Settlement A/C.

By the end of the lesson, the learner should be able to:
Cite examples of transactions that affect the Capital A/C.
Determine the overall balance of payments.
Define the Official Settlement A/C.

Q/A: review types of capital.
Exposition of new concepts and detailed discussion.
Q/A: review current A/C and capital A/C.
Illustrative examples.
Assignment.
Guided brief discussion.

newspaper
text book

Pg. 169-170

INTERNATIONAL TRADE

Disequilibrium of Balance of payments. Correction of balance of payment disequilibrium.
Terms of sale in international trade.

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.
Identify common terms of sale in international trade.

Exposition of new concepts & explanations;
Discussion.
Exposition & explanations;
Probing questions;

text book

Pg. 172-5

INTERNATIONAL TRADE

Documents used in international trade.

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

Give examples of relevant documents.
Give examples of relevant documents.

text book

Pg. 176-7

INTERNATIONAL TRADE
ECONOMIC INTEGRATION

IMF, ADF and World bank.
Forms & importance of economic integration.

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.
Define economic integration.
Identify forms of economic integration.
Outline forms of economic integration.
Analyze importance of economic integration.
Enumerate advantages and disadvantages of free trade.

Brain storming;
Discussion.
Q/A review relevant terms.
Probing questions
& guided discussion.

Newspaper cuttings & relevant magazines.
newspaper

Pg. 179-180

ECONOMIC INTEGRATION

Trade restrictions.
Methods of trade restrictions.
Advantages and disadvantages of trade restrictions.

By the end of the lesson, the learner should be able to:
Cite reasons for trade restrictions.
Outline methods of trade restriction.
Highlight some methods used to control trade restrictions.
State advantages and disadvantages of trade restrictions.

Q/A & guided discovery.
Q/A & exposition.
Exposition of new concepts.

newspaper
text book

Pg. 185-7

ECONOMIC INTEGRATION

Trends in international trade.

By the end of the lesson, the learner should be able to:
Analyse some current trends in international trade.

Probing questions and brief discussion on EPZ, liberalization e-trade &website.

text book

Pg 188-9

ECONOMIC DEVP AND PLANNING

Growth and development.
Underdevelopment.
Factors for underdevelopment.
Development planning.
Problems encountered in development planning.

By the end of the lesson, the learner should be able to:
Define economic growth of a country.
Identify structural changes that may accompany economic development.
Identify characteristics of under - development
Highlight some factors that impede development.
Site some objectives of planning.
Give reasons why development planning is necessary.
State problems encountered in development planning.

Guided discussion & oral questions.
Brainstorming, questioning & discussion.
Q/A guided discussion.
Probing questions /guided discussion.
Quiz.

newspaper
text book

Pg 195-6