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.
Types of capital in a balance sheet.

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

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.

Q/A: definition of a ratio.
Teacher exposes and explains the new concepts then leads in an example.

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.

Exposition & Worked examples;
Discussion.

text book,chart
chart

New Inventor K.L.B. BK IV. Pg. 75-76

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.

Illustrative examples & supervised practice.

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.

Brain storming;
Brief 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.

Probing questions;
Discussion.

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.

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
text book

New Inventor K.L.B. BK IV. Pg. 99-100

MONEY & BANKING

Services offered by commercial banks.
Non-banking financial institutions.

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
PUBLIC FINANCE

Functions of the Central bank.
Trends in banking.
Purpose of public finance. Sources of public finance.

By the end of the lesson, the learner should be able to:
Identify objectives and functions of the Central Bank.

Exposition of new ideas;
Guided discussion.

text book
chart,text book
Business Magazines.

New Inventor K.L.B. BK IV. Pg 113-8

PUBLIC FINANCE

External borrowing.
Government expenditure. Principles of public expenditure.

By the end of the lesson, the learner should be able to:
Differentiate between reproductive debt and dead weight debt.
Identify types of govt?s expenditure.

Exposition;
Discussion.

text book
Newspaper cuttings & relevant magazines.

New Inventor K.L.B. BK IV. Pg. 127-8

PUBLIC FINANCE

Taxation.
Principles of taxation.

By the end of the lesson, the learner should be able to:
Define the term taxation.
Identify methods that the give reasons for taxation.

Exposition;
Explanations.

Newspaper cuttings & relevant magazines.

New Inventor K.L.B. BK IV. Pg.131

PUBLIC FINANCE

Impact and incidence of tax. Classification of taxes on basis of structure.
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.

By the end of the lesson, the learner should be able to:
Differentiate between impact and incidence of tax.

Classify taxes according to structure.
State merits and demerits of taxing people according to structure.

Exposition of new ideas;
Give examples and explanations.

text book

Pg. 133-4

PUBLIC FINANCE
INFLATION

Topic summary / review
Introduction Consumer Price index

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

Problem solving.Revision;

text book
Newspaper cuttings & relevant magazines.

Pg. 142-144

INFLATION

Simple and weighted price relatives.
Types of inflation. Causes of demand- pull inflation.

By the end of the lesson, the learner should be able to:
Compute the price index using simple average of price relatives.
Compute the price index using the weighted average method.

Guided computations.

Supervised practice.

Price relative tables.
Newspaper cuttings & relevant magazines.

Pg. 147

INFLATION

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

By the end of the lesson, the learner should be able to:
Explain the concept of cost-pull inflation.
Explain the causes of cost-pull inflation.

Expository and descriptive approaches with probing questions.

Newspaper cuttings & relevant magazines.

Pg. 152

INTERNATIONAL TRADE

Types of International Trade. Advantages and disadvantages of International Trade.
Terms of International Trade.

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



Distinguish bilateral trade from multilateral trade.


State advantages and disadvantages of International Trade.

Brainstorming and guided discussion.


Q/A & guided discussion

Newspaper cuttings & relevant magazines.
text book

Pg. 163-4

INTERNATIONAL TRADE
ECONOMIC INTEGRATION

Terms of trade among different countries.
Forms & importance of economic integration.

By the end of the lesson, the learner should be able to:
Account for differences in terms of terms of trade among nations.

Probing questions and guided discussion.

newspaper

Pg. 167-8

ECONOMIC INTEGRATION

Trade restrictions.

By the end of the lesson, the learner should be able to:
Cite reasons for trade restrictions.
Outline methods of trade restriction.

Q/A & guided discovery.

newspaper

Pg. 185-7

ECONOMIC INTEGRATION

Methods of trade restrictions.
Advantages and disadvantages of trade restrictions.
Trends in international trade.

By the end of the lesson, the learner should be able to:
Highlight some methods used to control trade restrictions.

Q/A & exposition.

text book

Pg 186-7

ECONOMIC DEVP AND PLANNING

Growth and development.

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.

Guided discussion & oral questions.

newspaper

Pg 195-6

ECONOMIC DEVP AND PLANNING

Underdevelopment.
Factors for underdevelopment.

By the end of the lesson, the learner should be able to:
Identify characteristics of under - development

Brainstorming, questioning & discussion.

text book

Pg 197-199

ECONOMIC DEVP AND PLANNING

Development planning.
Problems encountered in development planning.

By the end of the lesson, the learner should be able to:
Site some objectives of planning.
Give reasons why development planning is necessary.

Probing questions /guided discussion.

text book

Pg. 202-4