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.

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

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

chart

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

The Balance Sheet.

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

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

charts

New Inventor K.L.B. BK IV. Pg. 67-68

FINANCIAL STATEMENTS

The Balance Sheet from a trial balance.
Types of Capital.

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

Q/A to review a trial balance;
Worked examples.
Probing questions;
Teacher?s explanations.

text book

New Inventor K.L.B. BK IV. Pg. 67-68

FINANCIAL STATEMENTS

Types of capital in a balance sheet.

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

Illustrative examples.

Written exercise.

text book

New Inventor K.L.B. BK IV. Pg. 69-70

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.

By the end of the lesson, the learner should be able to:
Work out the mark-up given the margin and vice-versa.

Guided discovery on the relationship.
Illustrative examples.

text book

New Inventor K.L.B. BK IV. Pg.72-74

FINANCIAL STATEMENTS

Current ratio or Working capital ratio.
Rate of stock turnover.

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.
Define the terms turn over and rate of stock turn over.
Calculate the rate of stock turn over.

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

text book,chart
chart

New Inventor K.L.B. BK IV. Pg. 75-76

FINANCIAL STATEMENTS

Stock turn-over and trading account.

By the end of the lesson, the learner should be able to:
Prepare the trading account given the rate of stock turn-over.

Illustrative examples & supervised practice.

text book

New Inventor K.L.B. BK IV. Pg. 78

FINANCIAL STATEMENTS

Return on Capital.

By the end of the lesson, the learner should be able to:
Define the term return on capital.
Calculate return on capital.
Explain implications of return on capital on a business.

Brief discussion;
simple problem solving;
Assignment.

chart, text book

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

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)

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.

Probing questions;
Discussion.
Q/A: review the term demand.
Exposition and probing questions.

chart
text book

New Inventor K.L.B. BK IV. Pg. 96-97

MONEY & BANKING

Supply of money. Banking System.
Development of Banking. Commercial Banks.

By the end of the lesson, the learner should be able to:
Define the term supply of money.
Identify various monetary items that are in circulation in an economy.
Identify elements of banking system in Kenya.
Outline a brief history on development of banking.
Identify methods employed by commercial banks to generate profits.
Identify services offered by commercial banks.

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

chart,text book
text book

New Inventor K.L.B. BK IV. Pg. 99-100

MONEY & BANKING

Services offered by commercial banks.

By the end of the lesson, the learner should be able to:
Describe other services offered by commercial banks.

Discussion on lending money, safekeeping of valuable items, money transfer facilities, e.g. standing order, cheques, savings and current accounts, time deposits.

text book

New Inventor K.L.B. BK IV. Pg. 103-9

MONEY & BANKING

Non-banking financial institutions.
Functions of the Central bank.

By the end of the lesson, the learner should be able to:
Cite examples of non-banking financial institutions.
State functions of non-banking financial institutions.
Outline differences between commercial bank and NBFI.
Identify objectives and functions of the Central Bank.

Exposition;
Brief discussion;
Probing questions.
Exposition of new ideas;
Guided discussion.

text book

New Inventor K.L.B. BK IV. Pg. 109-113

MONEY & BANKING
INTERNATIONAL TRADE

Trends in banking.
Types of International Trade. Advantages and disadvantages of International Trade.

By the end of the lesson, the learner should be able to:
Describe banking policies on types of account, use of computers, ,ATMs, m-banking, Mpesa,
e-banking.
Distinguish bilateral trade from multilateral trade.
State advantages and disadvantages of International Trade.

Brain storming;
Discussion.
Brainstorming and guided discussion.
Q/A & guided discussion

chart,text book
Newspaper cuttings & relevant magazines.

New Inventor K.L.B. BK IV. Pg. 118-121

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)

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).

Exposition of new concepts and detailed discussion.

text book

Pg. Pg. 168-9

INTERNATIONAL TRADE

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

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.

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.

newspaper

Pg. 169-170

INTERNATIONAL TRADE

The Official Settlement A/C.
Disequilibrium of Balance of payments. Correction of balance of payment disequilibrium.

By the end of the lesson, the learner should be able to:
Define the Official Settlement A/C.
Identify causes of Disequilibrium of Balance of payments.
Outline methods of correcting of balance of payment disequilibrium.

Guided brief discussion.
Exposition of new concepts & explanations;
Discussion.

text book

Pg. 171

INTERNATIONAL TRADE

Terms of sale in international trade.

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

Exposition & explanations;
Probing questions;
Discussion.

text book

Pg. 175

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

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