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.

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.

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

Money system Characteristics of money.

By the end of the lesson, the learner should be able to:
State characteristics of money.

Brainstorming and superficial discussion.

text book

New Inventor K.L.B. BK IV. Pg 95-96

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.

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.

Exposition;
Brief discussion;
Probing questions.

text book

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

MONEY & BANKING
PUBLIC FINANCE

Trends in banking.
Purpose of public finance. Sources of public finance.

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.

Brain storming;
Discussion.

chart,text book
Business Magazines.

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

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.

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

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:
Explain basic principles of taxation.

text book

New Inventor K.L.B. BK IV. pg 132-3

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.

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.

Guided discussion on direct taxes.

text book

Pg. 135-6

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.

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.

Pg. 147

INFLATION

Types of inflation. Causes of demand- pull inflation.
Causes of cost- pull inflation.

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.

Teacher exposes new concepts related to inflation types.

Expository and descriptive approaches.

Newspaper cuttings & relevant magazines.

Pg. 147-8


Pg. 149-150

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:
Highlight various levels of inflation.
Outline positive and negative effects of inflation.

Probing questions;
Discussion..

Newspaper cuttings & relevant magazines.

Pg. 152-3,

154-6

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

Terms of trade among different countries.

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